[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 2060 Referred in House (RFH)]

  2d Session
                                S. 2060


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 21, 1998

             Referred to the Committee on National Security

_______________________________________________________________________

                                 AN ACT


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

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

SECTION 1. SHORT TITLE.

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

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Congressional defense committees defined.
                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.
Sec. 105. Reserve components.
Sec. 106. Defense Inspector General.
Sec. 107. Chemical demilitarization program.
Sec. 108. Defense health programs.
Sec. 109. Defense export loan guarantee program.
                       Subtitle B--Army Programs

Sec. 111. Multiyear procurement authority for Longbow Hellfire missile 
                            program.
Sec. 112. Condition for award of more than one multiyear contract for 
                            the family of medium tactical vehicles.
Sec. 113. Armored system modernization.
Sec. 114. Reactive armor tiles.
Sec. 115. Annual reporting of costs associated with travel of members 
                            of Chemical Demilitarization Citizens' 
                            Advisory Commission.
Sec. 116. Extension of authority to carry out Armament Retooling and 
                            Manufacturing Support Initiative.
Sec. 117. Alternative technologies for destruction of assembled 
                            chemical weapons.
                       Subtitle C--Navy Programs

Sec. 121. CVN-77 nuclear aircraft carrier program.
Sec. 122. Increased amount to be excluded from cost limitation for 
                            Seawolf submarine program.
Sec. 123. Multiyear procurement authority for the Medium Tactical 
                            Vehicle Replacement.
Sec. 124. Multiyear procurement authority for certain aircraft 
                            programs.
                     Subtitle D--Air Force Programs

Sec. 131. Joint Surveillance Target Attack Radar System.
Sec. 132. Limitation on replacement of engines on military aircraft 
                            derived from Boeing 707 aircraft.
Sec. 133. F-22 aircraft program.
Sec. 134. C-130J aircraft program.
         TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

              Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for basic and applied research.
    Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Crusader self-propelled artillery system program.
Sec. 212. CVN-77 nuclear aircraft carrier program.
Sec. 213. Unmanned aerial vehicle programs.
Sec. 214. Airborne Laser Program.
Sec. 215. Enhanced Global Positioning System program.
Sec. 216. Manufacturing Technology Program.
Sec. 217. Authority for use of major range and test facility 
                            installations by commercial entities.
Sec. 218. Extension of authority to carry out certain prototype 
                            projects.
Sec. 219. NATO alliance ground surveillance concept definition.
Sec. 220. NATO common-funded civil budget.
Sec. 221. Persian Gulf illnesses.
Sec. 222. DOD/VA Cooperative Research Program.
Sec. 223. Low Cost Launch Development Program.
                       Subtitle C--Other Matters

Sec. 231. Policy with respect to ballistic missile defense cooperation.
Sec. 232. Review of pharmacological interventions for reversing brain 
                            injury.
Sec. 233. Landmines.
                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Armed Forces Retirement Home.
Sec. 304. Transfer from the National Defense Stockpile Transaction 
                            Fund.
    Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 311. Special Operations Command counterproliferation and 
                            counterterrorism activities.
Sec. 312. Tagging system for identification of hydrocarbon fuels used 
                            by the Department of Defense.
Sec. 313. Pilot program for acceptance and use of landing fees charged 
                            for use of domestic military airfields by 
                            civil aircraft.
Sec. 314. NATO common-funded military budget.
                  Subtitle C--Environmental Provisions

Sec. 321. Transportation of polychlorinated biphenyls from abroad for 
                            disposal in the United States.
Sec. 322. Modification of deadline for submittal to Congress of annual 
                            reports on environmental activities.
Sec. 323. Submarine solid waste control.
Sec. 324. Payment of stipulated penalties assessed under CERCLA.
Sec. 325. Authority to pay negotiated settlement for environmental 
                            cleanup of formerly used defense sites in 
                            Canada.
Sec. 326. Settlement of claims of foreign governments for environmental 
                            cleanup of overseas sites formerly used by 
                            the Department of Defense.
Sec. 327. Arctic Military Environmental Cooperation Program.
Sec. 328. Sense of Senate regarding oil spill prevention training for 
                            personnel on board Navy vessels.
                  Subtitle D--Counter-Drug Activities

Sec. 331. Patrol coastal craft for drug interdiction by Southern 
                            Command.
Sec. 332. Program authority for Department of Defense support for 
                            counter-drug activities.
Sec. 333. Southwest border fence.
Sec. 334. Revision and clarification of authority for Federal support 
                            of National Guard drug interdiction and 
                            counter-drug activities.
Sec. 335. Sense of Congress regarding priority of drug interdiction and 
                            counter-drug activities.
                       Subtitle E--Other Matters

Sec. 341. Liquidity of working-capital funds.
Sec. 342. Termination of authority to manage working-capital funds and 
                            certain activities through the Defense 
                            Business Operations Fund.
Sec. 343. Clarification of authority to retain recovered costs of 
                            disposals in working-capital funds.
Sec. 344. Best commercial inventory practices for management of 
                            secondary supply items.
Sec. 345. Increased use of smart cards.
Sec. 346. Public-private competition in the provision of support 
                            services.
Sec. 347. Condition for providing financial assistance for support of 
                            additional duties assigned to the Army 
                            National Guard.
Sec. 348. Repeal of prohibition on joint use of Gray Army Airfield, 
                            Fort Hood, Texas.
Sec. 349. Inventory management of in-transit secondary items.
Sec. 350. Personnel reductions in Army Materiel Command.
Sec. 351. Prohibitions regarding evaluation of merit of selling malt 
                            beverages and wine in commissary stores as 
                            exchange system merchandise.
              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Limited exclusions of joint duty officers from limitations on 
                            number of general and flag officers.
Sec. 403. Limitation on daily average of personnel on active duty in 
                            grades E-8 and E-9.
Sec. 404. Repeal of permanent end strength requirement for support of 
                            two major regional contingencies.
                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the 
                            reserves.
Sec. 413. End strengths for military technicians (dual status).
Sec. 414. Exclusion of additional reserve component general and flag 
                            officers from limitation on number of 
                            general and flag officers who may serve on 
                            active duty.
Sec. 415. Increase in numbers of members in certain grades authorized 
                            to be on active duty in support of the 
                            reserves.
Sec. 416. Consolidation of strength authorizations for active status 
                            Naval Reserve flag officers of the Navy 
                            Medical Department staff corps.
              Subtitle C--Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.
                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Streamlined selective retention process for regular officers.
Sec. 502. Permanent applicability of limitations on years of active 
                            naval service of Navy limited duty officers 
                            in grades of commander and captain.
Sec. 503. Involuntary separation pay denied for officer discharged for 
                            failure of selection for promotion 
                            requested by the officer.
Sec. 504. Term of office of the Chief of the Air Force Nurse Corps.
Sec. 505. Attendance of recipients of Naval Reserve Officers' Training 
                            Corps scholarships at participating 
                            colleges or universities.
                 Subtitle B--Reserve Component Matters

Sec. 511. Service required for retirement of National Guard officer in 
                            higher grade.
Sec. 512. Reduced time-in-grade requirement for reserve general and 
                            flag officers involuntarily transferred 
                            from active status.
Sec. 513. Eligibility of Army and Air Force Reserve brigadier generals 
                            to be considered for promotion while on 
                            inactive status list.
Sec. 514. Composition of selective early retirement boards for rear 
                            admirals of the Naval Reserve and major 
                            generals of the Marine Corps Reserve.
Sec. 515. Use of Reserves for emergencies involving weapons of mass 
                            destruction.
                       Subtitle C--Other Matters

Sec. 521. Annual manpower requirements report.
Sec. 522. Four-year extension of certain force reduction transition 
                            period management and benefits authorities.
Sec. 523. Continuation of eligibility for voluntary separation 
                            incentive after involuntary loss of 
                            membership in Ready or Standby Reserve.
Sec. 524. Repeal of limitations on authority to set rates and waive 
                            requirement for reimbursement of expenses 
                            incurred for instruction at service 
                            academies of persons from foreign 
                            countries.
Sec. 525. Repeal of restriction on civilian employment of enlisted 
                            members.
Sec. 526. Extension of reporting dates for Commission on Military 
                            Training and Gender-Related Issues.
Sec. 527. Moratorium on changes of gender-related policies and 
                            practices pending completion of the work of 
                            the Commission on Military Training and 
                            Gender-Related Issues.
Sec. 528. Transitional compensation for abused dependent children not 
                            residing with the spouse or former spouse 
                            of a member convicted of dependent abuse.
Sec. 529. Pilot program for treating GED and home school diploma 
                            recipients as high school graduates for 
                            determinations of eligibility for enlisting 
                            in the Armed Forces.
Sec. 530. Waiver of time limitations for award of certain decorations 
                            to certain persons.
Sec. 531. Prohibition on entry into correctional facilities for 
                            presentation of decorations to persons who 
                            commit certain crimes before presentation.
Sec. 532. Advancement of Benjamin O. Davis, Junior, to grade of 
                            general.
          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 1999.
Sec. 602. Rate of pay for cadets and midshipmen at the service 
                            academies.
Sec. 603. Payments for movements of household goods arranged by 
                            members.
Sec. 604. Leave without pay for suspended academy cadets and 
                            midshipmen.
           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. Three-month extension of certain bonuses and special pay 
                            authorities for reserve forces.
Sec. 612. Three-month extension of certain bonuses and special pay 
                            authorities for nurse officer candidates, 
                            registered nurses, and nurse anesthetists.
Sec. 613. Three-month extension of authorities relating to payment of 
                            other bonuses and special pays.
Sec. 614. Eligibility of Reserves for selective reenlistment bonus when 
                            reenlisting or extending to perform active 
                            guard and reserve duty.
Sec. 615. Repeal of ten-percent limitation on payments of selective 
                            reenlistment bonuses in excess of $20,000.
Sec. 616. Increase of maximum amount authorized for Army enlistment 
                            bonus.
Sec. 617. Education loan repayment program for health professions 
                            officers serving in Selected Reserve.
Sec. 618. Increase in amount of basic educational assistance under all-
                            volunteer force program for personnel with 
                            critically short skills or specialties.
Sec. 619. Relationship of entitlements to enlistment bonuses and 
                            benefits under the All-Volunteer Force 
                            Educational Assistance Program.
Sec. 620. Hardship duty pay.
Sec. 620A. Increased hazardous duty pay for aerial flight crewmembers 
                            in pay grades E-4 to E-9.
Sec. 620B. Diving duty special pay for divers having diving duty as a 
                            nonprimary duty.
Sec. 620C. Retention incentives initiative for critically short 
                            military occupational specialties.
            Subtitle C--Travel and Transportation Allowances

Sec. 621. Travel and transportation for rest and recuperation in 
                            connection with contingency operations and 
                            other duty.
Sec. 622. Payment for temporary storage of baggage of dependent student 
                            not taken on annual trip to overseas duty 
                            station of sponsor.
Sec. 623. Commercial travel of Reserves at Federal supply schedule 
                            rates for attendance at inactive duty 
                            training assemblies.
    Subtitle D--Retired Pay, Survivor Benefits, and Related Matters

Sec. 631. Paid-up coverage under Survivor Benefit Plan.
Sec. 632. Court-required Survivor Benefit Plan coverage effectuated 
                            through elections and deemed elections.
Sec. 633. Recovery, care, and disposition of remains of medically 
                            retired member who dies during 
                            hospitalization that begins while on active 
                            duty.
Sec. 634. Survivor Benefit Plan open enrollment period.
Sec. 635. Eligibility for payments of certain survivors of captured and 
                            interned Vietnamese operatives who were 
                            unmarried and childless at death.
Sec. 636. Clarification of recipient of payments to persons captured or 
                            interned by North Vietnam.
Sec. 637. Presentation of United States flag to members of the Armed 
                            Forces.
Sec. 638. Elimination of backlog of unpaid retired pay.
                       Subtitle E--Other Matters

Sec. 641. Definition of possessions of the United States for pay and 
                            allowances purposes.
Sec. 642. Federal employees' compensation coverage for students 
                            participating in certain officer candidate 
                            programs.
Sec. 643. Authority to provide financial assistance for education of 
                            certain defense dependents overseas.
Sec. 644. Voting rights of military personnel.
                         TITLE VII--HEALTH CARE

Sec. 701. Dependents' dental program.
Sec. 702. Extension of authority for use of personal services contracts 
                            for provision of health care at military 
                            entrance processing stations and elsewhere 
                            outside medical treatment facilities.
Sec. 703. TRICARE Prime automatic enrollments and retiree payment 
                            options.
Sec. 704. Limited continued CHAMPUS coverage for persons unaware of a 
                            loss of CHAMPUS coverage resulting from 
                            eligibility for medicare.
Sec. 705. Enhanced Department of Defense organ and tissue donor 
                            program.
Sec. 706. Joint Department of Defense and Department of Veterans 
                            Affairs reviews relating to 
                            interdepartmental cooperation in the 
                            delivery of medical care.
Sec. 707. Demonstration projects to provide health care to certain 
                            medicare-eligible beneficiaries of the 
                            military health care system.
Sec. 708. Professional qualifications of physicians providing military 
                            health care.
Sec. 709. Assessment of establishment of independent entity to evaluate 
                            post-conflict illnesses among members of 
                            the Armed Forces and health care provided 
                            by the Department of Defense and Department 
                            of Veterans Affairs before and after 
                            deployment of such members.
Sec. 710. Lyme disease.
Sec. 711. Accessibility to care under TRICARE.
Sec. 712. Health benefits for abused dependents of members of the Armed 
                            Forces.
Sec. 713. Process for waiving informed consent requirement for 
                            administration of certain drugs to members 
                            of Armed Forces.
  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
                                MATTERS

Sec. 801. Para-aramid fibers and yarns.
Sec. 802. Procurement of travel services for official and unofficial 
                            travel under one contract.
Sec. 803. Limitation on use of price preference upon attainment of 
                            contract goal for small and disadvantaged 
                            businesses.
Sec. 804. Distribution of assistance under the Procurement Technical 
                            Assistance Cooperative Agreement Program.
Sec. 805. Defense commercial pricing management improvement.
Sec. 806. Department of Defense purchases through other agencies.
Sec. 807. Supervision of Defense Acquisition University structure by 
                            Under Secretary of Defense for Acquisition 
                            and Technology.
Sec. 808. Repeal of requirement for Director of Acquisition Education, 
                            Training, and Career Development to be 
                            within the Office of the Under Secretary of 
                            Defense for Acquisition and Technology.
Sec. 809. Eligibility of involuntarily downgraded employee for 
                            membership in an acquisition corps.
Sec. 810. Pilot programs for testing program manager performance of 
                            product support oversight responsibilities 
                            for life cycle of acquisition programs.
Sec. 811. Scope of protection of certain information from disclosure.
Sec. 812. Plan for rapid transition from completion of Small Business 
                            Innovation Research into defense 
                            acquisition programs.
Sec. 813. Senior executives covered by limitation on allowability of 
                            compensation for certain contractor 
                            personnel.
Sec. 814. Separate determinations of exceptional waivers of truth in 
                            negotiation requirements for prime 
                            contracts and subcontracts.
Sec. 815. Five-year authority for Secretary of the Navy to exchange 
                            certain items.
Sec. 816. Clarification of responsibility for submission of information 
                            on prices previously charged for property 
                            or services offered.
Sec. 817. Denial of qualification of a small disadvantaged business 
                            supplier.
      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

Sec. 901. Reduction in number of Assistant Secretary of Defense 
                            positions.
Sec. 902. Renaming of position of Assistant Secretary of Defense for 
                            Command, Control, Communications, and 
                            Intelligence.
Sec. 903. Authority to expand the National Defense University.
Sec. 904. Reduction in Department of Defense headquarters staff.
Sec. 905. Permanent requirement for quadrennial defense review.
Sec. 906. Management reform for research, development, test, and 
                            evaluation.
Sec. 907. Restructuring of administration of Fisher Houses.
Sec. 908. Redesignation of Director of Defense Research and Engineering 
                            as Director of Defense Technology and 
                            Counterproliferation and transfer of 
                            responsibilities.
Sec. 909. Center for Hemispheric Defense Studies.
Sec. 910. Military aviation accident investigations.
                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Authorization of emergency appropriations for fiscal year 
                            1999. 
Sec. 1003. Authorization of prior emergency supplemental appropriations 
                            for fiscal year 1998.
Sec. 1004. Partnership for Peace information system management.
Sec. 1005. Reductions in fiscal year 1998 authorizations of 
                            appropriations for division A and division 
                            B and increases in certain authorizations 
                            of appropriations.
Sec. 1006. Amount authorized for contributions for NATO common-funded 
                            budgets.
                       Subtitle B--Naval Vessels

Sec. 1011. Iowa class battleship returned to Naval Vessel Register.
Sec. 1012. Long-term charter of three vessels in support of submarine 
                            rescue, escort, and towing.
Sec. 1013. Transfers of certain naval vessels to certain foreign 
                            countries.
Sec. 1014. Sense of Congress concerning the naming of an LPD-17 vessel.
Sec. 1015. Conveyance of NDRF vessel ex-U.S.S. Lorain County.
Sec. 1016. Homeporting of the U.S.S. Iowa battleship in San Francisco.
Sec. 1017. Ship scrapping pilot program.
       Subtitle C--Miscellaneous Report Requirements and Repeals

Sec. 1021. Repeal of reporting requirements.
Sec. 1022. Report on Department of Defense financial management 
                            improvement plan.
Sec. 1023. Feasibility study of performance of Department of Defense 
                            finance and accounting functions by private 
                            sector sources or other Federal Government 
                            sources.
Sec. 1024. Reorganization and consolidation of operating locations of 
                            the Defense Finance and Accounting Service.
Sec. 1025. Report on inventory and control of military equipment.
Sec. 1026. Report on continuity of essential operations at risk of 
                            failure because of computer systems that 
                            are not year 2000 compliant.
Sec. 1027. Reports on naval surface fire-support capabilities.
Sec. 1028. Report on roles in Department of Defense aviation accident 
                            investigations.
Sec. 1029. Strategic plan for expanding distance learning initiatives.
Sec. 1030. Report on involvement of Armed Forces in contingency and 
                            ongoing operations.
Sec. 1031. Submission of report on objectives of a contingency 
                            operation with first request for funding 
                            the operation.
Sec. 1032. Reports on the development of the European Security and 
                            Defense Identity.
Sec. 1033. Report on reduction of infrastructure costs at Brooks Air 
                            Force Base, Texas.
Sec. 1034. Annual GAO review of F/A-18E/F aircraft program.
Sec. 1035. Review and report regarding the distribution of National 
                            Guard resources among States.
Sec. 1036. Report on the peaceful employment of former Soviet experts 
                            on weapons of mass destruction.
                       Subtitle D--Other Matters

Sec. 1041. Cooperative counterproliferation program.
Sec. 1042. Extension of counterproliferation authorities for support of 
                            United Nations Special Commission on Iraq.
Sec. 1043. One-year extension of limitation on retirement or 
                            dismantlement of strategic nuclear delivery 
                            systems.
Sec. 1044. Direct-line communication between United States and Russian 
                            commanders of strategic forces.
Sec. 1045. Chemical warfare defense.
Sec. 1046. Accounting treatment of advance payment of personnel.
Sec. 1047. Reinstatement of definition of financial institution in 
                            authorities for reimbursing defense 
                            personnel for Government errors in direct 
                            deposits of pay.
Sec. 1048. Pilot program on alternative notice of receipt of legal 
                            process for garnishment of Federal pay for 
                            child support and alimony.
Sec. 1049. Costs payable to the Department of Defense and other Federal 
                            agencies for services provided to the 
                            Defense Commissary Agency.
Sec. 1050. Collection of dishonored checks presented at commissary 
                            stores.
Sec. 1051. Defense Commissary Agency telecommunications.
Sec. 1052. Research grants competitively awarded to service academies.
Sec. 1053. Clarification and simplification of responsibilities of 
                            Inspectors General regarding whistleblower 
                            protections.
Sec. 1054. Amounts recovered from claims against third parties for loss 
                            or damage to personal property shipped or 
                            stored at Government expense.
Sec. 1055. Eligibility for attendance at Department of Defense domestic 
                            dependent elementary and secondary schools.
Sec. 1056. Fees for providing historical information to the public.
Sec. 1057. Periodic inspection of the Armed Forces Retirement Home.
Sec. 1058. Transfer of F-4 Phantom II aircraft to foundation.
Sec. 1059. Act constituting presidential approval of vessel war risk 
                            insurance requested by the Secretary of 
                            Defense.
Sec. 1060. Commendation and memorialization of the United States Navy 
                            Asiatic Fleet.
Sec. 1061. Program to commemorate 50th anniversary of the Korean War.
Sec. 1062. Department of Defense use of frequency spectrum.
Sec. 1063. Technical and clerical amendments.
Sec. 1064. Extension and reauthorization of Defense Production Act of 
                            1950.
Sec. 1065. Budgeting for continued participation of United States 
                            forces in NATO operations in Bosnia and 
                            Herzegovina.
Sec. 1066. NATO participation in the performance of public security 
                            functions of civilian authorities in Bosnia 
                            and Herzegovina.
Sec. 1067. Pilot program for revitalizing the laboratories and test and 
                            evaluation centers of the Department of 
                            Defense.
Sec. 1068. Sense of Congress regarding the heroism, sacrifice, and 
                            service of former South Vietnamese 
                            commandos in connection with United States 
                            Armed Forces during the Vietnam conflict.
Sec. 1069. Sense of the Senate regarding declassification of classified 
                            information of the Department of Defense 
                            and the Department of Energy.
Sec. 1070. Russian nonstrategic nuclear weapons.
Sec. 1071. Sense of Senate on nuclear tests in South Asia.
Sec. 1072. Sense of Congress regarding continued participation of 
                            United States forces in operations in 
                            Bosnia and Herzegovina.
Sec. 1073. Commission to assess the reliability, safety, and security 
                            of the United States nuclear deterrent.
Sec. 1074. Authority for waiver of moratorium on Armed Forces use of 
                            antipersonnel landmines.
Sec. 1075. Appointment of Director and Deputy Director of the Naval 
                            Home.
Sec. 1076. Sense of the Congress on the Defense Science and Technology 
                            Program.
Sec. 1077. Demilitarization and exportation of defense property.
Sec. 1078. Designation of America's National Maritime Museum.
Sec. 1079. Burial honors for veterans.
Sec. 1080. Chemical stockpile emergency preparedness program.
Sec. 1081. Sense of Senate regarding the August 1995 assassination 
                            attempt against President Shevardnadze of 
                            Georgia.
Sec. 1082. Issuance of burial flags for deceased members and former 
                            members of the Selected Reserve.
Sec. 1083. Eliminating secret Senate holds.
Sec. 1084. Defense burdensharing.
Sec. 1085. Review of Defense Automated Printing Service functions.
Sec. 1086. Increased missile threat in Asia-Pacific region.
Sec. 1087. Cooperation between the Department of the Army and the EPA 
                            in meeting CWC requirements.
           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

Sec. 1101. Repeal of employment preference not needed for recruitment 
                            and retention of qualified child care 
                            providers.
Sec. 1102. Maximum pay rate comparability for faculty members of the 
                            United States Air Force Institute of 
                            Technology.
Sec. 1103. Four-year extension of voluntary separation incentive pay 
                            authority.
Sec. 1104. Department of Defense employee voluntary early retirement 
                            authority.
Sec. 1105. Defense Advanced Research Projects Agency experimental 
                            personnel management program for technical 
                            personnel.
              TITLE XII--JOINT WARFIGHTING EXPERIMENTATION

Sec. 1201. Findings.
Sec. 1202. Sense of Congress.
Sec. 1203. Reports on joint warfighting experimentation.

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

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

                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

    Funds are hereby authorized to be appropriated for fiscal year 1999 
for procurement for the Army as follows:
            (1) For aircraft, $1,466,508,000.
            (2) For missiles, $1,175,539,000.
            (3) For weapons and tracked combat vehicles, 
        $1,443,108,000.
            (4) For ammunition, $1,010,155,000.
            (5) For other procurement, $3,565,927,000.

SEC. 102. NAVY AND MARINE CORPS.

    (a) Navy.--Funds are hereby authorized to be appropriated for 
fiscal year 1999 for procurement for the Navy as follows:
            (1) For aircraft, $7,499,934,000.
            (2) For weapons, including missiles and torpedoes, 
        $1,370,045,000.
            (3) For shipbuilding and conversion, $6,067,272,000.
            (4) For other procurement, $4,052,012,000.
    (b) Marine Corps.--Funds are hereby authorized to be appropriated 
for fiscal year 1999 for procurement for the Marine Corps in the amount 
of $910,558,000.
    (c) Navy and Marine Corps Ammunition.--Funds are hereby authorized 
to be appropriated for procurement of ammunition for the Navy and the 
Marine Corps in the amount of $476,539,000.

SEC. 103. AIR FORCE.

    Funds are hereby authorized to be appropriated for fiscal year 1999 
for procurement for the Air Force as follows:
            (1) For aircraft, $8,303,839,000.
            (2) For missiles, $2,354,745,000.
            (3) For ammunition, $384,161,000.
            (4) For other procurement, $6,792,081,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

    Funds are hereby authorized to be appropriated for fiscal year 1999 
for Defense-wide procurement in the amount of $2,029,250,000.

SEC. 105. RESERVE COMPONENTS.

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

SEC. 106. DEFENSE INSPECTOR GENERAL.

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

SEC. 107. CHEMICAL DEMILITARIZATION PROGRAM.

    There is hereby authorized to be appropriated for fiscal year 1999 
the amount of $780,150,000 for--
            (1) the destruction of lethal chemical agents and munitions 
        in accordance with section 1412 of the Department of Defense 
        Authorization Act, 1986 (50 U.S.C. 1521); and
            (2) the destruction of chemical warfare material of the 
        United States that is not covered by section 1412 of such Act.

SEC. 108. DEFENSE HEALTH PROGRAMS.

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

SEC. 109. DEFENSE EXPORT LOAN GUARANTEE PROGRAM.

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

                       Subtitle B--Army Programs

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

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

SEC. 112. CONDITION FOR AWARD OF MORE THAN ONE MULTIYEAR CONTRACT FOR 
              THE FAMILY OF MEDIUM TACTICAL VEHICLES.

    Before awarding a multiyear procurement contract for the production 
of the Family of Medium Tactical Vehicles to more than one contractor 
under the authority of section 112(b) of the National Defense 
Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 
1648), the Secretary of the Army shall certify in writing to the 
congressional defense committees that--
            (1) the total quantity of Family of Medium Tactical 
        Vehicles trucks required by the Army to be delivered in any 12-
        month period exceeds the production capacity of any single 
        prime contractor; or
            (2)(A) the total cost of the procurements to the Army under 
        all such contracts over the period of the contracts will be the 
        same as or lower than the amount that would be the total cost 
        of the procurements if only one such contract were awarded; and
            (B) the vehicles to be produced by all contractors under 
        the contracts will be produced with common components that will 
        be interchangeable among similarly configured models.

SEC. 113. ARMORED SYSTEM MODERNIZATION.

    (a) Limitation.--Of the funds authorized to be appropriated under 
section 101(3), $20,300,000 of the funds available for the M1A1D 
Application Integration Kit may not be obligated for the procurement of 
the Kit until 30 days after the Secretary of the Army submits the 
report required under subsection (b).
    (b) Report.--Not later than January 31, 1999, the Secretary of the 
Army shall submit a report on armored system modernization to the 
congressional defense committees. The report shall contain an 
assessment of the current acquisition and fielding strategies for the 
M1A2 Abrams Tank and M2A3 Bradley Fighting Vehicle and an assessment of 
alternatives to those strategies. The report shall specifically include 
an assessment of an alternative fielding strategy that provides for 
placing all of the armored vehicles configured in the latest variant 
into one heavy corps. The assessment of each alternative strategy shall 
include the following:
            (1) The relative effects on warfighting capabilities in 
        terms of operational effectiveness and training and support 
        efficiencies, taking into consideration the joint warfighting 
        context.
            (2) How the alternative strategy would facilitate the 
        transition to the Future Scout and Cavalry System, the Future 
        Combat System, or other armored systems for the future force 
        structure known as the Army After Next.
            (3) How the alternative strategy fits into the context of 
        overall armored system modernization through 2020.
            (4) Budgetary implications.
            (5) Implications for the national technology and industrial 
        base.

SEC. 114. REACTIVE ARMOR TILES.

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

SEC. 115. ANNUAL REPORTING OF COSTS ASSOCIATED WITH TRAVEL OF MEMBERS 
              OF CHEMICAL DEMILITARIZATION CITIZENS' ADVISORY 
              COMMISSION.

    (a) Information To Be Included in Annual Report on Chemical 
Demilitarization Program.--Section 1412(g)(2) of the Department of 
Defense Authorization Act, 1986 (50 U.S.C. 1521(g)(2)) is amended by 
adding at the end the following:
            ``(C) An accounting of all funds expended (for the fiscal 
        year covered by the report) for travel and associated travel 
        costs for Citizens' Advisory Commissioners under section 172(g) 
        of Public Law 102-484 (50 U.S.C. 1521 note).''.
    (b) Technical Amendment.--Section 1412(g) of section 1412 of such 
Act is amended by striking out ``(g) Periodic Reports.--'' and 
inserting in lieu thereof ``(g) Annual Report.--''.

SEC. 116. EXTENSION OF AUTHORITY TO CARRY OUT ARMAMENT RETOOLING AND 
              MANUFACTURING SUPPORT INITIATIVE.

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

SEC. 117. ALTERNATIVE TECHNOLOGIES FOR DESTRUCTION OF ASSEMBLED 
              CHEMICAL WEAPONS.

    (a) Program Management.--The program manager for the Assembled 
Chemical Weapons Assessment shall continue to manage the development 
and testing (including demonstration and pilot-scale testing) of 
technologies for the destruction of lethal chemical munitions that are 
potential or demonstrated alternatives to incineration. In performing 
such function, the program manager shall act independently of the 
program manager for the baseline chemical demilitarization program and 
shall report to the Under Secretary of Defense for Acquisition and 
Technology.
    (b) Post-Demonstration Activities.--(1) The program manager for the 
Assembled Chemical Weapons Assessment may undertake the activities that 
are necessary to ensure that an alternative technology for the 
destruction of lethal chemical munitions can be implemented immediately 
after--
            (A) the technology has been demonstrated successful; and
            (B) the Under Secretary of Defense for Acquisition and 
        Technology has submitted a report on the demonstration to 
        Congress.
    (2) To prepare for the immediate implementation of any such 
technology, the program manager may, during fiscal years 1998 and 1999, 
take the following actions:
            (A) Establish program requirements.
            (B) Prepare procurement documentation.
            (C) Develop environmental documentation.
            (D) Identify and prepare to meet public outreach and public 
        participation requirements.
            (E) Prepare to award a contract for the design, 
        construction, and operation of a pilot facility for the 
        technology to the provider team for the technology not later 
        than June 1, 1999.
    (c) Independent Evaluation.--The Under Secretary of Defense for 
Acquisition and Technology shall provide for two evaluations of the 
cost and schedule of the Assembled Chemical Weapons Assessment to be 
performed, and for each such evaluation to be submitted to the Under 
Secretary, not later than September 30, 1999. One of the evaluations 
shall be performed by a nongovernmental organization qualified to make 
such an evaluation, and the other evaluation shall be performed 
separately by the Cost Analysis Improvement Group of the Department of 
Defense.
    (d) Pilot Facilities Contracts.--(1) The Under Secretary of Defense 
for Acquisition and Technology shall determine whether to proceed with 
pilot-scale testing of a technology referred to in paragraph (2) in 
time to award a contract for the design, construction, and operation of 
a pilot facility for the technology to the provider team for the 
technology not later than December 30, 1999. If the Under Secretary 
determines to proceed with such testing, the Under Secretary shall 
(exercising the acquisition authority of the Secretary of Defense) so 
award a contract not later than such date.
    (2) Paragraph (1) applies to an alternative technology for the 
destruction of lethal chemical munitions, other than incineration, that 
the Under Secretary--
            (A) certifies in writing to Congress is--
                    (i) as safe and cost effective for disposing of 
                assembled chemical munitions as is incineration of such 
                munitions; and
                    (ii) is capable of completing the destruction of 
                such munitions on or before the later of the date by 
                which the destruction of the munitions would be 
                completed if incineration were used or the deadline 
                date for completing the destruction of the munitions 
                under the Chemical Weapons Convention; and
            (B) determines as satisfying the Federal and State 
        environmental and safety laws that are applicable to the use of 
        the technology and to the design, construction, and operation 
        of a pilot facility for use of the technology.
    (3) The Under Secretary shall consult with the National Research 
Council in making determinations and certifications for the purpose of 
paragraph (2).
    (4) In this subsection, the term ``Chemical Weapons Convention'' 
means the Convention on the Prohibition of Development, Production, 
Stockpiling and Use of Chemical Weapons and on their Destruction, 
opened for signature on January 13, 1993, together with related annexes 
and associated documents.
    (e) Funding.--(1) Of the total amount authorized to be appropriated 
under section 107, $18,000,000 shall be available for the program 
manager for the Assembled Chemical Weapons Assessment for the 
following:
            (A) Demonstrations of alternative technologies under the 
        Assembled Chemical Weapons Assessment.
            (B) Planning and preparation to proceed from demonstration 
        of an alternative technology immediately into the development 
        of a pilot-scale facility for the technology, including 
        planning and preparation for--
                    (i) continued development of the technology leading 
                to deployment of the technology for use;
                    (ii) satisfaction of requirements for environmental 
                permits;
                    (iii) demonstration, testing, and evaluation;
                    (iv) initiation of actions to design a pilot plant;
                    (v) provision of support at the field office or 
                depot level for deployment of the technology for use; 
                and
                    (vi) educational outreach to the public to engender 
                support for the deployment.
            (C) The independent evaluation of cost and schedule 
        required under subsection (c).
    (2) Funds authorized to be appropriated under section 107(1) are 
authorized to be used for awarding contracts in accordance with 
subsection (d) and for taking any other action authorized in this 
section.
    (f) Assembled Chemical Weapons Assessment Defined.--In this 
section, the term ``Assembled Chemical Weapons Assessment'' means the 
pilot program carried out under section 8065 of the Department of 
Defense Appropriations Act, 1997 (section 101(b) of Public Law 104-208; 
110 Stat. 3009-101; 50 U.S.C. 1521 note).

                       Subtitle C--Navy Programs

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

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

SEC. 122. INCREASED AMOUNT TO BE EXCLUDED FROM COST LIMITATION FOR 
              SEAWOLF SUBMARINE PROGRAM.

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

SEC. 123. MULTIYEAR PROCUREMENT AUTHORITY FOR THE MEDIUM TACTICAL 
              VEHICLE REPLACEMENT.

    Beginning with the fiscal year 1999 program year, the Secretary of 
the Navy may, in accordance with section 2306b of title 10, United 
States Code, enter into a multiyear procurement contract for the 
procurement of the Medium Tactical Vehicle Replacement. The contract 
may be for a term of five years.

SEC. 124. MULTIYEAR PROCUREMENT AUTHORITY FOR CERTAIN AIRCRAFT 
              PROGRAMS.

    Beginning with the fiscal year 1999 program year, the Secretary of 
the Navy may, in accordance with section 2306b of title 10, United 
States Code, enter into multiyear contracts for the procurement of the 
following aircraft:
            (1) The AV-8B aircraft.
            (2) The E-2C aircraft.
            (3) The T-45 aircraft.

                     Subtitle D--Air Force Programs

SEC. 131. JOINT SURVEILLANCE TARGET ATTACK RADAR SYSTEM.

    (a) Amount for Follow-On Options.--Of the amount authorized to be 
appropriated under section 103(1) for the Joint Surveillance Target 
Attack Radar System (JSTARS) program, $72,000,000 is available for 
funding the following options:
            (1) Advance procurement of long-lead items for two 
        additional E-8C JSTARS aircraft.
            (2) Payment of expenses associated with termination of 
        production of JSTARS aircraft, together with augmentation of 
        other funding for the program for development of an improved 
        joint surveillance target attack radar, known as the radar 
        technology insertion program.
    (b) Limitation.--None of the funds available in accordance with 
subsection (a) for funding an option described in that subsection may 
be obligated until 30 days after the date on which the Secretary of 
Defense submits to Congress a plan for using the funds. The plan shall 
specify the option selected, the reasons for the selection of that 
option, and details about how the funds are to be used for that option.

SEC. 132. LIMITATION ON REPLACEMENT OF ENGINES ON MILITARY AIRCRAFT 
              DERIVED FROM BOEING 707 AIRCRAFT.

    None of the funds authorized to be appropriated under this title 
may be obligated or expended for the replacement of engines on aircraft 
of the Department of Defense that are derived from the Boeing 707 
aircraft until the Secretary of Defense has submitted the analysis 
required by section 133 of the National Defense Authorization Act for 
Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1652).

SEC. 133. F-22 AIRCRAFT PROGRAM.

    (a) Limitation on Advance Procurement.--(1) Amounts available for 
the Department of Defense for any fiscal year for the F-22 aircraft 
program may not be obligated for advance procurement for the six Lot II 
F-22 aircraft before the date that is 30 days after date that is 
applicable under paragraph (2) or (3).
    (2) The applicable date for the purposes of paragraph (1) is the 
date on which the Secretary of Defense submits a certification under 
subsection (b)(1) unless the Secretary submits a report under 
subsection (b)(2).
    (3) If the Secretary submits a report under subsection (b)(2), the 
applicable date for the purposes of paragraph (1) is the later of--
            (A) the date on which the Secretary of Defense submits the 
        report; or
            (B) the date on which the Director of Operational Test and 
        Evaluation submits the certification required under subsection 
        (c).
    (b) Certification by Secretary of Defense.--(1) Upon the completion 
of 433 hours of flight testing of F-22 flight test vehicles, the 
Secretary of Defense shall submit to the congressional defense 
committees a certification of the completion of that amount of flight 
testing. A certification is not required under this paragraph if the 
Secretary submits a report under paragraph (2).
    (2) If the Secretary determines that a number of hours of flight 
testing of F-22 flight test vehicles less than 433 hours provides the 
Defense Acquisition Board with a sufficient basis for deciding to 
proceed into production of Lot II F-22 aircraft, the Secretary may 
submit a report to the congressional defense committees upon the 
completion of that lesser number of hours of flight testing. A report 
under this paragraph shall contain the following:
            (A) A certification of the number of hours of flight 
        testing completed.
            (B) The reasons for the Secretary's determination that the 
        lesser number of hours is a sufficient basis for a decision by 
        the board.
            (C) A discussion of the extent to which the Secretary's 
        determination is consistent with each decision made by the 
        Defense Acquisition Board since January 1997 in the case of a 
        major aircraft acquisition program that the amount of flight 
        testing completed for the program was sufficient or not 
        sufficient to justify a decision to proceed into low-rate 
        initial production.
            (D) A determination by the Secretary that it is more 
        financially advantageous for the Department to proceed into 
        production of Lot II F-22 aircraft than to delay production 
        until completion of 433 hours of flight testing, together with 
        the reasons for that determination.
    (c) Certification by the Director of Operational Test and 
Evaluation.--Upon the completion of 183 hours of the flight testing of 
F-22 flight test vehicles provided for in the test and evaluation 
master plan for the F-22 aircraft program, as in effect on October 1, 
1997, the Director of Operational Test and Evaluation shall submit to 
the congressional defense committees a certification of the completion 
of that flight testing.

SEC. 134. C-130J AIRCRAFT PROGRAM.

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

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

              Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    Funds are hereby authorized to be appropriated for fiscal year 1999 
for the use of the Department of Defense for research, development, 
test, and evaluation as follows:
            (1) For the Army, $4,838,145,000.
            (2) For the Navy, $8,219,997,000.
            (3) For the Air Force, $13,673,993,000.
            (4) For Defense-wide activities, $9,583,822,000, of which--
                    (A) $249,106,000 is authorized for the activities 
                of the Director, Test and Evaluation; and
                    (B) $25,245,000 is authorized for the Director of 
                Operational Test and Evaluation.

SEC. 202. AMOUNT FOR BASIC AND APPLIED RESEARCH.

    (a) Fiscal Year 1999.--Of the amounts authorized to be appropriated 
by section 201, $4,186,817,000 shall be available for basic research 
and applied research projects.
    (b) Basic Research and Applied Research Defined.--For purposes of 
this section, the term ``basic research and applied research'' means 
work funded in program elements for defense research and development 
under Department of Defense category 6.1 or 6.2.

    Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. CRUSADER SELF-PROPELLED ARTILLERY SYSTEM PROGRAM.

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

SEC. 212. CVN-77 NUCLEAR AIRCRAFT CARRIER PROGRAM.

    (a) Amount for New Technologies.--Of the amounts authorized to be 
appropriated under section 201(2) for aircraft carrier system 
development, $50,000,000 shall be available only for research, 
development, test, and evaluation, and for acquisition, of technologies 
described in subsection (b) for use in the CVN-77 nuclear aircraft 
carrier program.
    (b) Technologies.--The technologies for which amounts are available 
under subsection (a) are technologies that are designed--
            (1) for a transition from the CVN-77 aircraft carrier 
        program to the CV(X) aircraft carrier program; and
            (2) for--
                    (A) demonstrating enhanced capabilities for the 
                CV(X) aircraft carrier program; or
                    (B) mitigating the cost or technical risks of that 
                program.

SEC. 213. UNMANNED AERIAL VEHICLE PROGRAMS.

    (a) Termination of Dark Star Program.--The Secretary of Defense 
shall terminate the Dark Star unmanned aerial vehicle program. Except 
as provided in subsection (b), funds available for that program may be 
obligated after the date of the enactment of this Act only for costs 
necessary for terminating the program.
    (b) Global Hawk Program.--Of the unobligated balance of the funds 
available for the Dark Star unmanned aerial vehicle program, 
$32,500,000 shall be available for the procurement of three Global Hawk 
unmanned aerial vehicles. However, none of the funds made available for 
the Global Hawk unmanned aerial vehicle program under the preceding 
sentence may be obligated or expended for that program until phase II 
testing of the Global Hawk unmanned aerial vehicle has been completed.

SEC. 214. AIRBORNE LASER PROGRAM.

    (a) Findings.--Congress makes the following findings:
            (1) The development plan of the Department of Defense for 
        the Airborne Laser Program does not include the basic 
        validation of certain key technologies until 2002, which is 
        shortly before the program is scheduled to enter the 
        engineering and manufacturing development phase of development.
            (2) It is possible that the technical risk of the Airborne 
        Laser Program could be substantially reduced by restructuring 
        the program to include a technology demonstration using a low 
        power laser device to collect optical data in an operationally 
        representative environment.
            (3) Department of Defense officials are currently planning 
        to have expended approximately $1,300,000,000 on the Airborne 
        Laser Program by the end of fiscal year 2002, and a total of 
        $6,300,000,000 by the end of fiscal year 2008 for the 
        development of the system and the procurement of seven airborne 
        laser aircraft.
            (4) Due to the likely vulnerability of an airborne laser 
        system to air defense threats, the limited lethal range of the 
        laser device, and other operational limitations of the system, 
        the utility of the airborne laser system will be severely 
        restricted under a wide range of operational scenarios.
    (b) Assessment of Technical and Operational Limitations.--The 
Secretary of Defense shall conduct an assessment of the technical 
obstacles and operational shortcomings expected for the Airborne Laser 
Program. In conducting the assessment, the Secretary shall--
            (1) require the Panel on Reducing Risk in Ballistic Missile 
        Defense Test Programs to evaluate the adequacy of the test 
        program for the Airborne Laser Program; and
            (2) establish an independent team of persons from outside 
        the Department of Defense who are experts in relevant fields to 
        review the operational limitations and issues associated with 
        the Airborne Laser Program.
    (c) Report on Assessment.--Not later than March 15, 1999, the 
Secretary shall submit a report on the assessment to Congress. The 
report shall include the Secretary's findings and any recommendations 
that the Secretary considers appropriate.
    (d) Funding for Program.--Of the amount authorized to be 
appropriated under section 201(3), $195,219,000 shall be available for 
the Airborne Laser Program.
    (e) Limitation.--Of the amount made available pursuant to 
subsection (d), not more than $150,000,000 may be obligated until 30 
days after the Secretary submits the report required under subsection 
(c).

SEC. 215. ENHANCED GLOBAL POSITIONING SYSTEM PROGRAM.

    (a) Findings.--Congress makes the following findings:
            (1) Section 152(b) of the National Defense Authorization 
        Act for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1578) 
        prohibits the obligation of funds, after September 30, 2000, to 
        modify or procure any Department of Defense aircraft, ship, 
        armored vehicle, or indirect-fire weapon system that is not 
        equipped with a Global Positioning System receiver.
            (2) Section 279(b) of the National Defense Authorization 
        Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 243) 
        requires the Secretary of Defense to prepare a plan for 
        enhancing the Global Positioning System and to provide in that 
        plan for--
                    (A) the development of capabilities to deny hostile 
                military forces the ability to use the Global 
                Positioning System without hindering the ability of 
                United States military forces and civil users to have 
                access to and use of the system; and
                    (B) the development and acquisition of receivers 
                for the Global Positioning System and other techniques 
                for weapons and weapon systems that provide 
                substantially improved resistance to jamming and other 
                forms of electronic interference or disruption.
            (3) Section 2281 of title 10, United States Code, requires 
        the Secretary of Defense--
                    (A) to develop appropriate measures for preventing 
                hostile use of the Global Positioning System so as to 
                make it unnecessary for the Secretary to use the 
                selective availability feature of the system 
                continuously while not hindering the use of the Global 
                Positioning System by the United States and its allies 
                for military purposes;
                    (B) to ensure that the Armed Forces of the United 
                States have the capability to use the Global 
                Positioning System effectively despite hostile attempts 
                to prevent the use of the system by such forces; and
                    (C) to develop measures for preventing hostile use 
                of the Global Positioning System in a particular area 
                without hindering peaceful civil use of the system 
                elsewhere.
    (b) Policy on Priority for Development of Enhanced GPS System.--The 
development of an enhanced Global Positioning System is an urgent 
national security priority.
    (c) Development Required.--To fulfill the requirements described in 
subsection (a), the Secretary of Defense shall develop an enhanced 
Global Positioning System in accordance with the priority declared in 
subsection (b). The enhanced Global Positioning System shall consist of 
the following elements:
            (1) An evolved satellite system that includes dynamic 
        frequency reconfiguration and regional-level directional signal 
        enhancements.
            (2) Enhanced receivers and user equipment that are capable 
        of providing military users with direct access to encrypted 
        Global Positioning System signals.
            (3) To the extent funded by the Secretary of 
        Transportation, additional civil frequencies and other 
        enhancements for civil users.
    (d) Sense of Congress Regarding Funding.--It is the sense of 
Congress that--
            (1) the Secretary of Defense should ensure that the future-
        years defense program provides for sufficient funding to 
        develop and deploy an enhanced Global Positioning System system 
        in accordance with the priority declared in subsection (b); and
            (2) the Secretary of Transportation should provide 
        sufficient funding to support additional civil frequencies for 
        the Global Positioning System and other enhancements of the 
        system for civil users.
    (e) Plan for Development of Enhanced Global Positioning System.--
Not later than April 15, 1999, the Secretary of Defense shall submit to 
Congress a plan for carrying out the requirements of subsection (c).
    (f) Delayed Effective Date for Limitation on Procurement of Systems 
Not GPS-Equipped.--Section 152(b) of the National Defense Authorization 
Act for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1578) is 
amended by striking out ``2000'' and inserting in lieu thereof 
``2005''.
    (g) Funding From Authorized Appropriations for Fiscal Year 1999.--
Of the amounts authorized to be appropriated under section 201(3), 
$44,000,000 shall be available to establish and carry out an enhanced 
Global Positioning System program.

SEC. 216. MANUFACTURING TECHNOLOGY PROGRAM.

    (a) Competition and Cost Sharing.--Subsection (d) of section 2525 
of title 10, United States Code, is amended by striking out paragraphs 
(2), (3), and (4) and inserting in lieu thereof the following:
    ``(2) Except as provided in paragraph (3), the costs of a project 
carried out under the program shall be shared by the Department of 
Defense and the other parties to the grant, contract, cooperative 
agreement, or other transaction involved if any results of the project 
are likely to have an immediate and direct commercial application. The 
cost share--
            ``(A) in the case of a grant, contract, cooperative 
        agreement, or other transaction that is awarded using a 
        competitive selection process, shall be the cost share proposed 
        in the application or offer selected for the award; or
            ``(B) in a case in which there is only one applicant or 
        offeror, shall be the cost share negotiated with the applicant 
        or offeror that provides the best value for the Government.
    ``(3)(A) Cost-sharing is not required of the non-Federal Government 
parties to a grant, contract, cooperative agreement, or other 
transaction under paragraph (2) if the project is determined as being 
sufficiently high risk to discourage cost-sharing by non-Federal 
Government sources.
    ``(B) A determination under subparagraph (A) that cost-sharing is 
not required in the case of a particular grant, contract, cooperative 
agreement or other transaction shall be made by--
            ``(i) the Secretary of the military department awarding the 
        grant or entering into the contract, cooperative agreement, or 
        other transaction; or
            ``(ii) the Secretary of Defense for any other grant, 
        contract, cooperative agreement, or transaction.
    ``(C) The transaction file for a case in which cost-sharing is 
determined as not being required shall include written documentation of 
the reasons for the determination.''.
    (b) Five-Year Plan.--Subsection (e)(2) of such section is amended 
to read as follows:
    ``(2) The plan shall include the following:
            ``(A) An assessment of the effectiveness of the program.
            ``(B) An assessment of the extent to which the costs of 
        projects are being shared by the following:
                    ``(i) Commercial enterprises in the private sector.
                    ``(ii) Department of Defense program offices, 
                including weapon system program offices.
                    ``(iii) Departments and agencies of the Federal 
                Government outside the Department of Defense.
                    ``(iv) Institutions of higher education.
                    ``(v) Other institutions not operated for profit.
                    ``(vi) Other sources.''.

SEC. 217. AUTHORITY FOR USE OF MAJOR RANGE AND TEST FACILITY 
              INSTALLATIONS BY COMMERCIAL ENTITIES.

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

SEC. 218. EXTENSION OF AUTHORITY TO CARRY OUT CERTAIN PROTOTYPE 
              PROJECTS.

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

SEC. 219. NATO ALLIANCE GROUND SURVEILLANCE CONCEPT DEFINITION.

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

SEC. 220. NATO COMMON-FUNDED CIVIL BUDGET.

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

SEC. 221. PERSIAN GULF ILLNESSES.

    (a) Additional Amount for Persian Gulf Illnesses.--The total amount 
authorized to be appropriated under this title for research and 
development relating to Persian Gulf illnesses is the total amount 
authorized to be appropriated for such purpose under the other 
provisions of this title plus $10,000,000.
    (b) Reduced Amount for Army Commercial Operations and Support 
Savings Program.--Of the amount authorized to be appropriated under 
section 201(1), $23,600,000 shall be available for the Army Commercial 
Operations and Support Savings Program.

SEC. 222. DOD/VA COOPERATIVE RESEARCH PROGRAM.

    (a) Availability of Funds.--(1) The amount authorized to be 
appropriated by section 201(4) is hereby increased by $10,000,000.
    (2) Of the amount authorized to be appropriated by section 201(4), 
as increased by paragraph (1), $10,000,000 shall be available for the 
DOD/VA Cooperative Research Program.
    (b) Offset.--(1) The amount authorized to be appropriated by 
section 201(2) is hereby decreased by $10,000,000.
    (2) Of the amount authorized to be appropriated by section 201(2), 
as decreased by paragraph (1), not more than $18,500,000 shall be 
available for the Commercial Operations and Support Savings Program.
    (c) Executive Agent.--The Secretary of Defense, acting through the 
Army Medical Research and Materiel Command and the Naval Operational 
Medicine Institute, shall be the executive agent for the utilization of 
the funds made available by subsection (a).

SEC. 223. LOW COST LAUNCH DEVELOPMENT PROGRAM.

    Of the total amount authorized to be appropriated under section 
201(3), $5,000,000 is available for the Low Cost Launch Development 
Program.

                       Subtitle C--Other Matters

SEC. 231. POLICY WITH RESPECT TO BALLISTIC MISSILE DEFENSE COOPERATION.

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

SEC. 232. REVIEW OF PHARMACOLOGICAL INTERVENTIONS FOR REVERSING BRAIN 
              INJURY.

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

SEC. 233. LANDMINES.

    (a) Availability of Funds.--(1) Of the amounts authorized to be 
appropriated in section 201, $17,200,000 shall be available for 
activities relating to the identification, adaptation, modification, 
research, and development of existing and new tactics, technologies, 
and operational concepts that--
            (A) would provide a combat capability that is comparable to 
        the combat capability provided by anti-personnel landmines, 
        including anti-personnel landmines used in mixed mine systems; 
        and
            (B) comply with the Convention on the Prohibition of the 
        Use, Stockpiling, Production and Transfer of Anti-Personnel 
        Mines and on Their Destruction.
    (2) The amount available under paragraph (1) shall be derived as 
follows:
            (A) $12,500,000 shall be available from amounts authorized 
        to be appropriated by section 201(1).
            (B) $4,700,000 shall be available from amounts authorized 
        to be appropriated by section 201(4).
    (b) Studies.--(1) Not later than 30 days after the date of 
enactment of this Act, the Secretary of Defense shall enter into a 
contract with each of two appropriate scientific organizations for 
purposes of identifying existing and new tactics, technologies, and 
concepts referred to in subsection (a).
    (2) Each contract shall require the organization concerned to 
submit a report to the Secretary and to Congress, not later than one 
year after the execution of such contract, describing the activities 
under such contract and including recommendations with respect to the 
adaptation, modification, and research and development of existing and 
new tactics, technologies, and concepts identified under such contract.
    (3) Amounts available under subsection (a) shall be available for 
purposes of the contracts under this subsection.
    (c) Reports.--Not later than April 1 of each of 1999 through 2001, 
the Secretary shall submit to the congressional defense committees a 
report describing the progress made in identifying and deploying 
tactics, technologies, and concepts referred to in subsection (a).
    (d) Definitions.--In this section:
            (1) Anti-personnel landmine.--The term ``anti-personnel 
        landmine'' has the meaning given the term ``anti-personnel 
        mine'' in Article 2 of the Convention on the Prohibition of the 
        Use, Stockpiling, Production and Transfer of Anti-Personnel 
        Mines and on Their Destruction.
            (2) Mixed mine system.--The term ``mixed mine system'' 
        includes any system in which an anti-vehicle landmine or other 
        munition is constructed with or used with one or more anti-
        personnel landmines, but does not include an anti-handling 
        device as that term is defined in Article 2 of the Convention 
        on the Prohibition of the Use, Stockpiling, Production and 
        Transfer of Anti-Personnel Mines and on Their Destruction.

                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

    (a) Amounts Authorized.--Funds are hereby authorized to be 
appropriated for fiscal year 1999 for the use of the Armed Forces and 
other activities and agencies of the Department of Defense for 
expenses, not otherwise provided for, for operation and maintenance, in 
amounts as follows:
            (1) For the Army, $17,395,563,000.
            (2) For the Navy, $22,001,302,000.
            (3) For the Marine Corps, $2,621,703,000.
            (4) For the Air Force, $19,213,404,000.
            (5) For the Special Operations Command, $1,251,503,000.
            (6) For Defense-wide activities, $9,025,598,000.
            (7) For the Army Reserve, $1,217,622,000.
            (8) For the Naval Reserve, $943,639,000.
            (9) For the Marine Corps Reserve, $134,593,000.
            (10) For the Air Force Reserve, $1,759,696,000.
            (11) For the Army National Guard, $2,476,815,000.
            (12) For the Air National Guard, $3,113,933,000.
            (13) For the Defense Inspector General, $130,764,000.
            (14) For the United States Court of Appeals for the Armed 
        Forces, $7,324,000.
            (15) For Environmental Restoration, Army, $370,640,000.
            (16) For Environmental Restoration, Navy, $274,600,000.
            (17) For Environmental Restoration, Air Force, 
        $372,100,000.
            (18) For Environmental Restoration, Defense-wide, 
        $23,091,000.
            (19) For Environmental Restoration, Formerly Used Defense 
        Sites, $195,000,000.
            (20) For Overseas Humanitarian, Demining, and CINC 
        Initiatives, $50,000,000.
            (21) For Drug Interdiction and Counter-drug Activities, 
        Defense-wide, $727,582,000.
            (22) For the Kaho'olawe Island Conveyance, Remediation, and 
        Environmental Restoration Trust Fund, $15,000,000.
            (23) For Medical Programs, Defense, $9,653,435,000.
            (24) For Cooperative Threat Reduction programs, 
        $440,400,000.
            (25) For Overseas Contingency Operations Transfer Fund, 
        $746,900,000.
            (26) For Impact Aid, $35,000,000.
    (b) General Limitation.--Notwithstanding paragraphs (1) through 
(25) of subsection (a), the total amount authorized to be appropriated 
for fiscal year 1999 under those paragraphs is $93,875,207,000.

SEC. 302. WORKING CAPITAL FUNDS.

    Funds are hereby authorized to be appropriated for fiscal year 1999 
for the use of the Armed Forces and other activities and agencies of 
the Department of Defense for providing capital for working capital and 
revolving funds in amounts as follows:
            (1) For the Defense Working Capital Funds, Air Force, 
        $30,800,000.
            (2) For Defense Working-Capital Fund, Defense-wide, 
        $63,700,000.
            (3) For the National Defense Sealift Fund, $669,566,000.

SEC. 303. ARMED FORCES RETIREMENT HOME.

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

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

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

    Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 311. SPECIAL OPERATIONS COMMAND COUNTERPROLIFERATION AND 
              COUNTERTERRORISM ACTIVITIES.

    Of the amount authorized to be appropriated under section 
301(a)(5), the $18,500,000 available for the Special Operations Command 
that is not needed for the operation of six of the patrol coastal craft 
of the Department of Defense in the Caribbean Sea and Eastern Pacific 
Ocean in support of the drug interdiction efforts of the United States 
Southern Command by reason of section 331 shall be available for 
increased training and related operations in support of that command's 
counterproliferation of weapons of mass destruction and the command's 
counterterrorism activities. The amount available under the preceding 
sentence is in addition to other funds authorized to be appropriated 
under section 301(a)(5) for the Special Operations Command for such 
purposes.

SEC. 312. TAGGING SYSTEM FOR IDENTIFICATION OF HYDROCARBON FUELS USED 
              BY THE DEPARTMENT OF DEFENSE.

    (a) Authority To Conduct Pilot Program.--The Secretary of Defense 
may conduct a pilot program using existing technology to determine--
            (1) the feasibility of tagging hydrocarbon fuels used by 
        the Department of Defense for the purposes of analyzing and 
        identifying such fuels;
            (2) the deterrent effect of such tagging on the theft and 
        misuse of fuels purchased by the Department; and
            (3) the extent to which such tagging assists in determining 
        the source of surface and underground pollution in locations 
        having separate fuel storage facilities of the Department and 
        of civilian companies.
    (b) System Elements.--The tagging system under the pilot program 
shall have the following characteristics:
            (1) The tagging system does not harm the environment.
            (2) Each chemical used in the tagging system is--
                    (A) approved for use under the Toxic Substances 
                Control Act (15 U.S.C. 2601 et seq.); and
                    (B) substantially similar to the fuel to which 
                added, as determined in accordance with criteria 
                established by the Environmental Protection Agency for 
                the introduction of additives into hydrocarbon fuels.
            (3) The tagging system permits a determination if a tag is 
        present and a determination if the concentration of a tag has 
        changed in order to facilitate identification of tagged fuels 
        and detection of dilution of tagged fuels.
            (4) The tagging system does not impair or degrade the 
        suitability of tagged fuels for their intended use.
    (c) Report.--Not later than 30 days after the completion of the 
pilot program, the Secretary shall submit to Congress a report setting 
forth the results of the pilot program and including any 
recommendations for legislation relating to the tagging of hydrocarbon 
fuels by the Department that the Secretary considers appropriate.
    (d) Funding.--Of the amounts authorized to be appropriated under 
section 301(a)(6) for operation and maintenance for defense-wide 
activities, not more than $5,000,000 shall be available for the pilot 
program.

SEC. 313. PILOT PROGRAM FOR ACCEPTANCE AND USE OF LANDING FEES CHARGED 
              FOR USE OF DOMESTIC MILITARY AIRFIELDS BY CIVIL AIRCRAFT.

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

SEC. 314. NATO COMMON-FUNDED MILITARY BUDGET.

    Of the amount authorized to be appropriated by section 30(a)(1), 
$227,377,000 shall be available for contributions for the common-funded 
Military Budget of NATO.

                  Subtitle C--Environmental Provisions

SEC. 321. TRANSPORTATION OF POLYCHLORINATED BIPHENYLS FROM ABROAD FOR 
              DISPOSAL IN THE UNITED STATES.

    (a) Authority.--Chapter 157 of title 10, United States Code, is 
amended by adding at the end the following:
``Sec. 2646. Transportation of polychlorinated biphenyls from abroad; 
              disposal
    ``(a) Authority To Transport.--(1) Subject to paragraph (2), the 
Secretary of the Defense and the Secretaries of the military 
departments may provide for the transportation into the customs 
territory of the United States of polychlorinated biphenyls generated 
by or under the control of the Department of Defense for purposes of 
their disposal, treatment, or storage in the customs territory of the 
United States.
    ``(2) Polychlorinated biphenyls may be transported into the customs 
territory of the United States under paragraph (1) only if the 
Administrator of the Environmental Protection Agency determines that 
the transportation will not result in an unreasonable risk of injury to 
health or the environment, and only if such materials are specifically 
provided for in subchapter VIII, chapter 98 of the Harmonized Tariff 
Schedule of the United States.
    ``(b) Disposal.--(1) The disposal, treatment, and storage of 
polychlorinated biphenyls transported into the customs territory of the 
United States under subsection (a) shall be governed by the provisions 
of the Toxic Substances Control Act (15 U.S.C. 2601 et seq.).
    ``(2) A chemical waste landfill may not be used for the disposal, 
treatment, or storage of polychlorinated biphenyls transported into the 
customs territory of the United States under subsection (a) unless the 
landfill meets all of the technical requirements specified in section 
761.75(b)(3) of title 40, Code of Federal Regulations, as in effect on 
the date that was one year before the date of enactment of the Strom 
Thurmond National Defense Authorization Act for Fiscal Year 1999.
    ``(c) Customs Territory of the United States Defined.--In this 
section, the term `customs territory of the United States' has the 
meaning given that term in General Note 2. of the Harmonized Tariff 
Schedule of the United States.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
that chapter is amended by adding at the end the following:

``2646. Transportation of polychlorinated biphenyls from abroad; 
                            disposal.''.

SEC. 322. MODIFICATION OF DEADLINE FOR SUBMITTAL TO CONGRESS OF ANNUAL 
              REPORTS ON ENVIRONMENTAL ACTIVITIES.

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

SEC. 323. SUBMARINE SOLID WASTE CONTROL.

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

SEC. 324. PAYMENT OF STIPULATED PENALTIES ASSESSED UNDER CERCLA.

    The Secretary of Defense may pay, from amounts in the Department of 
Defense Base Closure Account 1990 established by section 2906(a)(1) of 
the Defense Base Closure and Realignment Act of 1990 (part A of title 
XXIX of Public Law 101-510; 10 U.S.C. 2687 note), not more than $15,000 
as payment of pay stipulated civil penalties assessed under the 
Comprehensive Environmental Response, Compensation, and Liability Act 
of 1980 (42 U.S.C. 9601 et seq.) against McClellan Air Force Base, 
California.

SEC. 325. AUTHORITY TO PAY NEGOTIATED SETTLEMENT FOR ENVIRONMENTAL 
              CLEANUP OF FORMERLY USED DEFENSE SITES IN CANADA.

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

SEC. 326. SETTLEMENT OF CLAIMS OF FOREIGN GOVERNMENTS FOR ENVIRONMENTAL 
              CLEANUP OF OVERSEAS SITES FORMERLY USED BY THE DEPARTMENT 
              OF DEFENSE.

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

SEC. 327. ARCTIC MILITARY ENVIRONMENTAL COOPERATION PROGRAM.

    (a) Findings.--Congress makes the following findings:
            (1) The Secretary of Defense has developed a program to 
        address environmental matters relating to the military 
        activities of the Department of Defense in the Arctic region. 
        The program is known as the ``Arctic Military Environmental 
        Cooperation Program''.
            (2) The Secretary has carried out the Arctic Military 
        Environmental Cooperation Program using funds appropriated for 
        Cooperative Threat Reduction programs.
    (b) Activities Under Program.--(1) Subject to paragraph (2), 
activities under the Arctic Military Environmental Cooperation Program 
shall include cooperative activities on environmental matters in the 
Arctic region with the military departments and agencies of other 
countries, including the Russian Federation.
    (2) Activities under the Arctic Military Environmental Cooperation 
Program may not include any activities for purposes for which funds for 
Cooperative Threat Reduction programs have been denied, including the 
purposes for which funds were denied by section 1503 of the National 
Defense Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110 
Stat. 2732).
    (c) Availability of Fiscal Year 1999 Funds.--(1) Of the amount 
authorized to be appropriated by section 301(a)(6), $4,000,000 shall be 
available for carrying out the Arctic Military Environmental Program.
    (2) Amounts available for the Arctic Military Environmental 
Cooperation Program under paragraph (1) may not be obligated or 
expended for that Program until 45 days after the date on which the 
Secretary of Defense submits to the congressional defense committees a 
plan for the Program under paragraph (3).
    (3) The plan for the Arctic Military Environmental Cooperation 
Program under this paragraph shall include the following:
            (A) A statement of the overall goals and objectives of the 
        Program.
            (B) A statement of the proposed activities under the 
        Program and the relationship of such activities to the national 
        security interests of the United States.
            (C) An assessment of the compatibility of the activities 
        set forth under subparagraph (B) with the purposes of the 
        Cooperative Threat Reduction programs of the Department of 
        Defense (including with any prohibitions and limitations 
        applicable to such programs).
            (D) An estimate of the funding to be required and requested 
        in future fiscal years for the activities set forth under 
        subparagraph (B).
            (E) A proposed termination date for the Program.

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

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

                  Subtitle D--Counter-Drug Activities

SEC. 331. PATROL COASTAL CRAFT FOR DRUG INTERDICTION BY SOUTHERN 
              COMMAND.

    Of the funds authorized to be appropriated under section 
301(a)(21), relating to drug interdiction and counter-drug activities, 
$18,500,000 shall be available for the equipping and operation of six 
of the Cyclone class coastal defense ships of the Department of Defense 
in the Caribbean Sea and Eastern Pacific Ocean in support of the drug 
interdiction efforts of the United States Southern Command.

SEC. 332. PROGRAM AUTHORITY FOR DEPARTMENT OF DEFENSE SUPPORT FOR 
              COUNTER-DRUG ACTIVITIES.

    (a) Extension of Authority.--Subsection (a) of section 1004 of the 
National Defense Authorization Act for Fiscal Year 1991 (10 U.S.C. 374 
note) is amended by striking out ``through 1999'' and inserting in lieu 
thereof ``through 2004''.
    (b) Bases and Facilities Support.--(1) Subsection (b)(4) of such 
section is amended by inserting ``of the Department of Defense or any 
Federal, State, local, or foreign law enforcement agency'' after 
``counter-drug activities''.
    (2) Section 1004 of such Act is further amended by adding at the 
end the following:
    ``(h) Congressional Notification of Facilities Projects.--(1) Not 
later than 21 days before obligating funds for beginning the work on a 
project described in paragraph (2), the Secretary of Defense shall 
submit to the congressional defense committees a notification of the 
project, including the scope and estimated total cost of the project.
    ``(2) Paragraph (1) applies to a project for the modification or 
repair of a Department of Defense facility for the purpose set forth in 
subsection (b)(4) that is estimated to cost more than $500,000.''.

SEC. 333. SOUTHWEST BORDER FENCE.

    (a) Limitation of Funding for Expansion.--None of the funds 
authorized to be appropriated for the Department of Defense by this Act 
may be used to expand the Southwest border fence until the Secretary of 
Defense submits the report required by subsection (b).
    (b) Report.--The Secretary of Defense shall submit to the 
congressional defense committees a report on the extent to which the 
Southwest border fence has reduced the illegal transportation of 
narcotics and other drugs into the United States.
    (c) Southwest Border Fence Defined.--In this section, the term 
``Southwest border fence'' means the fence that was constructed, at 
Department of Defense expense, along the southwestern border of the 
United States for the purpose of preventing or reducing the illegal 
transportation of narcotics and other drugs into the United States.

SEC. 334. REVISION AND CLARIFICATION OF AUTHORITY FOR FEDERAL SUPPORT 
              OF NATIONAL GUARD DRUG INTERDICTION AND COUNTER-DRUG 
              ACTIVITIES.

    (a) Procurement of Equipment.--Subsection (a)(3) of section 112 of 
title 32, United States Code, is amended by striking out ``and leasing 
of equipment'' and inserting in lieu thereof ``and equipment, and the 
leasing of equipment,''.
    (b) Training and Readiness.--Subsection (b)(2) of such section is 
amended to read as follows:
    ``(2)(A) A member of the National Guard serving on full-time 
National Guard duty under orders authorized under paragraph (1) shall 
participate in the training required under section 502(a) of this title 
in addition to the duty performed for the purpose authorized under that 
paragraph. The pay, allowances, and other benefits of the member while 
participating in the training shall be the same as those to which the 
member is entitled while performing duty for the purpose of carrying 
out drug interdiction and counter-drug activities.
    ``(B) Appropriations available for the Department of Defense for 
drug interdiction and counter-drug activities may be used for paying 
costs associated with a member's participation in training described in 
subparagraph (A). The appropriation shall be reimbursed in full, out of 
appropriations available for paying those costs, for the amounts paid. 
Appropriations available for paying those costs shall be available for 
making the reimbursements.''.
    (c) Assistance to Youth and Charitable Organizations.--Subsection 
(b)(3) of such section is amended to read as follows:
    ``(2) A unit or member of the National Guard of a State may be 
used, pursuant to a State drug interdiction and counter-drug activities 
plan approved by the Secretary of Defense under this section, to 
provide services or other assistance (other than air transportation) to 
an organization eligible to receive services under section 508 of this 
title if--
            ``(A) the State drug interdiction and counter-drug 
        activities plan specifically recognizes the organization as 
        being eligible to receive the services or assistance;
            ``(B) in the case of services, the provision of the 
        services meets the requirements of paragraphs (1) and (2) of 
        subsection (a) of section 508 of this title; and
            ``(C) the services or assistance is authorized under 
        subsection (b) or (c) of such section or in the State drug 
        interdiction and counter-drug activities plan.''.
    (d) Definition of Drug Interdiction and Counter-drug Activities.--
Subsection (i)(1) of such section is amended by inserting after ``drug 
interdiction and counter-drug law enforcement activities'' the 
following: ``, including drug demand reduction activities,''.

SEC. 335. SENSE OF CONGRESS REGARDING PRIORITY OF DRUG INTERDICTION AND 
              COUNTER-DRUG ACTIVITIES.

    It is the sense of Congress that the Secretary of Defense should 
revise the Global Military Force Policy of the Department of Defense--
            (1) to treat the international drug interdiction and 
        counter-drug activities of the department as a military 
        operation other than war, thereby elevating the priority given 
        such activities under the policy to the next priority below the 
        priority given to war under the policy and to the same priority 
        as is given to peacekeeping operations under the policy; and
            (2) to allocate the assets of the department to drug 
        interdiction and counter-drug activities in accordance with the 
        priority given those activities.

                       Subtitle E--Other Matters

SEC. 341. LIQUIDITY OF WORKING-CAPITAL FUNDS.

    (a) Increased Cash Balances.--The Secretary of Defense shall 
administer the working-capital funds of the Department of Defense 
during fiscal year 1999 so as to ensure that the total amount of the 
cash balances in such funds on September 30, 1999, exceeds the total 
amount of the cash balances in such funds on September 30, 1998, by 
$1,300,000,000.
    (b) Actions Regarding Unbudgeted Losses and Gains.--(1) In order to 
achieve the increase in cash balances in working-capital funds required 
under subsection (a), the Under Secretary of Defense (Comptroller) 
shall--
            (A) assess surcharges on the rates charged to Department of 
        Defense activities for the performance of depot-level 
        maintenance and repair workloads for those activities in fiscal 
        year 1999 as necessary to recoup for the working-capital funds 
        the amounts of any operational losses that are incurred in the 
        performance of those workloads in excess of the amounts of the 
        losses that are budgeted for fiscal year 1999; and
            (B) return to Department of Defense activities any amounts 
        that--
                    (i) are realized for the working-capital funds for 
                depot-level maintenance and repair workloads in excess 
                of the estimated revenues budgeted for the performance 
                of those workloads that originate in those activities; 
                and
                    (ii) are not needed to achieve the required 
                increase in cash balances.
    (2) The Under Secretary of Defense (Comptroller) shall prescribe 
policies and procedures for carrying out paragraph (1). The policies 
and procedures shall include a prohibition on applying assessments of 
surcharges to a Department of Defense activity more frequently than 
once every six months.
    (c) Waiver.--(1) The Secretary of Defense may waive the 
requirements of this section upon certifying to Congress, in writing, 
that the waiver is necessary to meet requirements associated with--
            (A) a contingency operation (as defined in section 
        101(a)(13) of title 10, United States Code); or
            (B) an operation of the Armed Forces that commenced before 
        October 1, 1998, and continues during fiscal year 1999.
    (2) The waiver authority under paragraph (1) may not be delegated 
to any official other than the Deputy Secretary of Defense.
    (3) The waiver authority under paragraph (1) does not apply to the 
limitation in subsection (d) or the limitation in section 2208(l)(3) of 
title 10, United States Code (as added by subsection (e)).
    (d) Fiscal Year 1999 Limitation on Advance Billings.--(1) The total 
amount of the advance billings rendered or imposed for the working-
capital funds of the Department of Defense and the Defense Business 
Operations Fund in fiscal year 1999--
            (A) for the Department of the Navy, may not exceed 
        $500,000,000; and
            (B) for the Department of the Air Force, may not exceed 
        $500,000,000.
    (2) In paragraph (1), the term ``advance billing'' has the meaning 
given such term in section 2208(l) of title 10, United States Code.
    (e) Permanent Limitation on Advance Billings.--(1) Section 2208(l) 
of title 10, United States Code, is amended--
            (A) by redesignating paragraph (3) as paragraph (4); and
            (B) by inserting after paragraph (2) the following new 
        paragraph (3):
    ``(3) The total amount of the advance billings rendered or imposed 
for all working-capital funds of the Department of Defense in a fiscal 
year may not exceed $1,000,000,000.''.
    (2) Section 2208(l)(3) of such title, as added by paragraph (1), 
applies to fiscal years after fiscal year 1999.
    (f) Semiannual Report.--(1) The Under Secretary shall submit to the 
Committee on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives--
            (A) not later than May 1, 1999, a report on the 
        administration of this section for the 6-month period ending on 
        March 31, 1999; and
            (B) not later than November 1, 1999, a report on the 
        administration of this section for the 6-month period ending on 
        September 30, 1999.
    (2) Each report shall include, for the 6-month period covered by 
the report, the following:
            (A) The profit and loss status of each working-capital fund 
        activity.
            (B) The actions taken by the Secretary of each military 
        department to use assessments of surcharges to correct for 
        unbudgeted losses and gains.

SEC. 342. TERMINATION OF AUTHORITY TO MANAGE WORKING-CAPITAL FUNDS AND 
              CERTAIN ACTIVITIES THROUGH THE DEFENSE BUSINESS 
              OPERATIONS FUND.

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

SEC. 343. CLARIFICATION OF AUTHORITY TO RETAIN RECOVERED COSTS OF 
              DISPOSALS IN WORKING-CAPITAL FUNDS.

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

SEC. 344. BEST COMMERCIAL INVENTORY PRACTICES FOR MANAGEMENT OF 
              SECONDARY SUPPLY ITEMS.

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

SEC. 345. INCREASED USE OF SMART CARDS.

    (a) Funding for Increased Use Generally.--Of the funds available 
for the Navy for fiscal year 1999 for operation and maintenance, the 
Secretary of the Navy shall allocate sufficient amounts, up to 
$25,000,000, to making significant progress toward ensuring that smart 
cards having a multi-application, multi-technology automated reading 
capability are issued and used throughout the Navy and the Marine Corps 
for purposes for which such cards are suitable.
    (b) Deployment of Smart Cards.--(1) Not later than March 31, 1999, 
the Secretary of the Navy shall equip with smart card technology at 
least one carrier battle group, one carrier air wing, and one 
amphibious readiness group (including the Marine Corps units embarked 
on the vessels of such battle and readiness groups) in each of the 
United States Atlantic Command and the United States Pacific Command.
    (2) None of the funds appropriated pursuant to any authorization of 
appropriations in this Act may be expended after March 31, 1999, for 
the procurement of the Joint Uniformed Services Identification card 
for, or for the issuance of such card to, members of the Navy or the 
Marine Corps until the Secretary of the Navy certifies in writing to 
the Committee on Armed Services of the Senate and the Committee on 
National Security of the House of Representatives that the Secretary 
has completed the issuance of smart cards in accordance with paragraph 
(1).
    (c) Plan.--Not later than March 31, 1999, the Secretary of the Navy 
shall submit to the congressional defense committees a plan for 
equipping all operational naval units with smart card technology. The 
Secretary shall include in the plan estimates of the costs of, and the 
savings to be derived from, carrying out the plan.
    (d) Smart Card Defined.--In this section, the term ``smart card'' 
means a credit card size device that contains one or more integrated-
circuits.

SEC. 346. PUBLIC-PRIVATE COMPETITION IN THE PROVISION OF SUPPORT 
              SERVICES.

    (a) Sense of the Senate.--It is the sense of the Senate that the 
Secretary of Defense should take action to initiate public-private 
competitions pursuant to Office of Management and Budget Circular A-76 
for functions of the Department of Defense involving not fewer than a 
number of employees equivalent to 30,000 full-time employees for each 
of fiscal years 1999, 2000, 2001, 2002, 2003, and 2004.
    (b) Small Functions Qualified for a Waiver of the Notification and 
Reporting Requirements for Conversion to Contractor Performance.--(1) 
Section 2461(d) of title 10, United States Code, is amended by striking 
out ``20 or fewer'' and inserting in lieu thereof ``50 or fewer''.
    (2) Notwithstanding any other provision of law, no study, 
notification, or report may be required pursuant to subsection (a), 
(b), or (c) of section 2461 of title 10, United States Code, or Office 
of Management and Budget Circular A-76 for functions that are being 
performed by 50 or fewer Department of Defense civilian employees.
    (c) Best Overall Value to the Taxpayer.--Section 2462(a) of title 
10, United States Code, is amended by striking out ``at a cost that is 
lower'' and all that follows through the period at the end and 
inserting in lieu thereof: ``at a lower cost than the cost at which the 
Department can provide the same supply or service or at a better 
overall value than the value that the Department can provide for the 
same supply or service. Each determination regarding relative cost or 
relative overall value shall be based on an objective evaluation of 
cost and performance-related factors and shall include the 
consideration of any cost differential required by law, Executive 
order, or regulation.''.
    (d) Effective Date.--Subsections (b) and (c), and the amendments 
made by such subsections, shall take effect on January 1, 2001.

SEC. 347. CONDITION FOR PROVIDING FINANCIAL ASSISTANCE FOR SUPPORT OF 
              ADDITIONAL DUTIES ASSIGNED TO THE ARMY NATIONAL GUARD.

    (a) Competitive Source Selection.--Section 113(b) of title 32, 
United States Code, is amended to read as follows:
    ``(b) Covered Activities.--(1) Except as provided in paragraph (2), 
financial assistance may be provided for the performance of an activity 
by the Army National Guard under subsection (a) only if--
            ``(A) the activity is carried out in the performance of a 
        responsibility of the Secretary of the Army under paragraph 
        (6), (10), or (11) of section 3013(b) of title 10; and
            ``(B) the Army National Guard was selected to perform the 
        activity under competitive procedures that permit all 
        responsible private-sector sources to submit offers and be 
        considered for selection to perform the activity on the basis 
        of the offers.
    ``(2) Paragraph (1)(B) does not apply to an activity that, on the 
date of the enactment of the Strom Thurmond National Defense 
Authorization Act for Fiscal Year 1999, was performed for the Federal 
Government by employees of the Federal Government or employees of a 
State.''.
    (b) Prospective Applicability.--Subparagraph (B) of section 
113(b)(1) of title 32, United States Code (as amended by subsection (a) 
of this section), does not apply to--
            (1) financial assistance provided under that section before 
        October 1, 1998; or
            (2) financial assistance for an activity that, on or before 
        May 8, 1998, the Secretary of the Army identified in writing as 
        being under consideration for supporting with financial 
        assistance under such section.

SEC. 348. REPEAL OF PROHIBITION ON JOINT USE OF GRAY ARMY AIRFIELD, 
              FORT HOOD, TEXAS.

    Section 319 of the National Defense Authorization Act for Fiscal 
Year 1987 (Public Law 99-661; 100 Stat. 3855), relating to a 
prohibition on the joint military-civilian use of Robert Gray Army 
Airfield, Fort Hood, Texas, is repealed.

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

    (a) Requirement for Plan.--Not later than March 1, 1999, the 
Secretary of Defense shall submit to Congress a plan to address 
problems with Department of Defense management of the department's 
inventories of in-transit secondary items as follows:
            (1) The vulnerability of in-transit secondary items to loss 
        through fraud, waste, and abuse.
            (2) Loss of oversight of in-transit secondary items, 
        including any loss of oversight when items are being 
        transported by commercial carriers.
            (3) Loss of accountability for in-transit secondary items 
        due to either a delay of delivery of the items or a lack of 
        notification of a delivery of the items.
    (b) Content of Plan.-- The plan shall include, for each of the 
problems described in subsection (a), the following information:
            (1) The actions to be taken to correct the problems.
            (2) Statements of objectives.
            (3) Performance measures and schedules.
            (4) An identification of any resources that may be 
        necessary for correcting the problem, together with an estimate 
        of the annual costs.
    (c) GAO Reviews.--(1) Not later than 60 days after the date on 
which the Secretary of Defense submits the plan to Congress, the 
Comptroller General shall review the plan and submit to Congress any 
comments that the Comptroller General considers appropriate regarding 
the plan.
    (2) The Comptroller General shall monitor any implementation of the 
plan and, not later than one year after the date referred to in 
paragraph (1), submit to Congress an assessment of the extent to which 
the plan has been implemented.

SEC. 350. PERSONNEL REDUCTIONS IN ARMY MATERIEL COMMAND.

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

SEC. 351. PROHIBITIONS REGARDING EVALUATION OF MERIT OF SELLING MALT 
              BEVERAGES AND WINE IN COMMISSARY STORES AS EXCHANGE 
              SYSTEM MERCHANDISE.

    Neither the Secretary of Defense nor any other official of the 
Department of Defense may--
            (1) by contract or otherwise, conduct a survey of eligible 
        patrons of the commissary store system to determine patron 
        interest in having commissary stores sell malt beverages and 
        wine as exchange store merchandise; or
            (2) conduct a demonstration project to evaluate the merit 
        of selling malt beverages and wine in commissary stores as 
        exchange store merchandise.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

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

SEC. 402. LIMITED EXCLUSIONS OF JOINT DUTY OFFICERS FROM LIMITATIONS ON 
              NUMBER OF GENERAL AND FLAG OFFICERS.

    (a) One Additional Exemption From Percentage Limitation on Number 
of Lieutenant Generals and Vice Admirals.--Section 525(b)(4)(B) of 
title 10, United States Code, is amended by striking out ``six'' and 
inserting in lieu thereof ``seven''.
    (b) Extension of Authority To Exclude Up to 12 Joint Duty Officers 
From Limitation on Authorized General and Flag Officer Strength.--
Section 526(b)(2) of such title is amended by striking out ``October 1, 
1998'' and inserting in lieu thereof ``October 1, 2002''.

SEC. 403. LIMITATION ON DAILY AVERAGE OF PERSONNEL ON ACTIVE DUTY IN 
              GRADES E-8 AND E-9.

    (a) Fiscal Year Basis for Application of Limitation.--The first 
sentence of section 517(a) of title 10, United States Code, is 
amended--
            (1) by striking out ``a calendar year'' and inserting in 
        lieu thereof ``a fiscal year''; and
            (2) by striking out ``January 1 of that year'' and 
        inserting in lieu thereof ``the first day of that fiscal 
        year''.
    (b) Correction of Cross Reference.--Such sentence is further 
amended by striking out ``Except as provided in section 307 of title 
37, the'' and inserting in lieu thereof ``The''.

SEC. 404. REPEAL OF PERMANENT END STRENGTH REQUIREMENT FOR SUPPORT OF 
              TWO MAJOR REGIONAL CONTINGENCIES.

    (a) Repeal.--Section 691 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 39 of such title is amended by striking out the item relating 
to section 691.

                       Subtitle B--Reserve Forces

SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

    (a) In General.--The Armed Forces are authorized strengths for 
Selected Reserve personnel of the reserve components as of September 
30, 1999, as follows:
            (1) The Army National Guard of the United States, 357,000.
            (2) The Army Reserve, 208,000.
            (3) The Naval Reserve, 90,843.
            (4) The Marine Corps Reserve, 40,018.
            (5) The Air National Guard of the United States, 106,991.
            (6) The Air Force Reserve, 74,242.
            (7) The Coast Guard Reserve, 8,000.
    (b) Waiver Authority.--The Secretary of Defense may vary an end 
strength authorized by subsection (a) by not more than 2 percent.
    (c) Adjustments.--The end strengths prescribed by subsection (a) 
for the Selected Reserve of any reserve component shall be 
proportionately reduced by--
            (1) the total authorized strength of units organized to 
        serve as units of the Selected Reserve of such component which 
        are on active duty (other than for training) at the end of the 
        fiscal year, and
            (2) the total number of individual members not in units 
        organized to serve as units of the Selected Reserve of such 
        component who are on active duty (other than for training or 
        for unsatisfactory participation in training) without their 
        consent at the end of the fiscal year.
Whenever such units or such individual members are released from active 
duty during any fiscal year, the end strength prescribed for such 
fiscal year for the Selected Reserve of such reserve component shall be 
proportionately increased by the total authorized strengths of such 
units and by the total number of such individual members.

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

    Within the end strengths prescribed in section 411(a), the reserve 
components of the Armed Forces are authorized, as of September 30, 
1999, the following number of Reserves to be serving on full-time 
active duty or full-time duty, in the case of members of the National 
Guard, for the purpose of organizing, administering, recruiting, 
instructing, or training the reserve components:
            (1) The Army National Guard of the United States, 21,763.
            (2) The Army Reserve, 11,804.
            (3) The Naval Reserve, 15,590.
            (4) The Marine Corps Reserve, 2,362.
            (5) The Air National Guard of the United States, 10,930.
            (6) The Air Force Reserve, 991.

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

    The reserve components of the Army and the Air Force are authorized 
strengths for military technicians (dual status) as of September 30, 
1999, as follows:
            (1) For the Army Reserve, 5,205.
            (2) For the Army National Guard of the United States, 
        22,179.
            (3) For the Air Force Reserve, 9,761.
            (4) For the Air National Guard of the United States, 
        22,408.

SEC. 414. EXCLUSION OF ADDITIONAL RESERVE COMPONENT GENERAL AND FLAG 
              OFFICERS FROM LIMITATION ON NUMBER OF GENERAL AND FLAG 
              OFFICERS WHO MAY SERVE ON ACTIVE DUTY.

    Section 526(d) of title 10, United States Code, is amended to read 
as follows:
    ``(d) Exclusion of Certain Reserve Officers.--(1) Subject to 
paragraph (2), the limitations of this section do not apply to the 
following reserve component general or flag officers:
            ``(A) A general or flag officer who is on active duty for 
        training.
            ``(B) A general or flag officer who is on active duty under 
        a call or order specifying a period of less than 180 days.
            ``(C) A general or flag officer who is on active duty under 
        a call or order specifying a period of more than 179 days.
    ``(2) The number of general or flag officers of an armed force that 
are excluded from the applicability of the limitations of this section 
under paragraph (1)(C) at any one time may not exceed the number equal 
to three percent of the number specified for that armed force under 
subsection (a).''.

SEC. 415. INCREASE IN NUMBERS OF MEMBERS IN CERTAIN GRADES AUTHORIZED 
              TO BE ON ACTIVE DUTY IN SUPPORT OF THE RESERVES.

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

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

    (b) Senior Enlisted Members.--The table in section 12012(a) of 
title 10, United States Code, is amended to read as follows:
      

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

SEC. 416. CONSOLIDATION OF STRENGTH AUTHORIZATIONS FOR ACTIVE STATUS 
              NAVAL RESERVE FLAG OFFICERS OF THE NAVY MEDICAL 
              DEPARTMENT STAFF CORPS.

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

    ``Medical Department staff corps..............                9''; 
                and
                    (B) by striking out the items relating to the 
                Dental Corps, the Nurse Corps, and the Medical Service 
                Corps; and
            (2) by adding at the end the following:
    ``(4)(A) For the purposes of paragraph (1), the Medical Department 
staff corps referred to in the table are as follows:
            ``(i) The Medical Corps.
            ``(ii) The Dental Corps.
            ``(iii) The Nurse Corps.
            ``(iv) The Medical Service Corps.
    ``(B) Each of the Medical Department staff corps is authorized one 
rear admiral (lower half) within the strength authorization distributed 
to the Medical Department staff corps under paragraph (1). The 
Secretary of the Navy shall distribute the remainder of the strength 
authorization for the Medical Department staff corps under that 
paragraph among those staff corps as the Secretary determines 
appropriate to meet the needs of the Navy.''.

              Subtitle C--Authorization of Appropriations

SEC. 421. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY PERSONNEL.

    There is hereby authorized to be appropriated to the Department of 
Defense for military personnel for fiscal year 1999 a total of 
$70,434,386,000. The authorization in the preceding sentence supersedes 
any other authorization of appropriations (definite or indefinite) for 
such purpose for fiscal year 1999.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

SEC. 501. STREAMLINED SELECTIVE RETENTION PROCESS FOR REGULAR OFFICERS.

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

``1184. Removal of officer: action by Secretary upon recommendation of 
                            board of inquiry.''.

SEC. 502. PERMANENT APPLICABILITY OF LIMITATIONS ON YEARS OF ACTIVE 
              NAVAL SERVICE OF NAVY LIMITED DUTY OFFICERS IN GRADES OF 
              COMMANDER AND CAPTAIN.

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

SEC. 503. INVOLUNTARY SEPARATION PAY DENIED FOR OFFICER DISCHARGED FOR 
              FAILURE OF SELECTION FOR PROMOTION REQUESTED BY THE 
              OFFICER.

    (a) Ineligibility for Separation Pay.--Section 1174(a) of title 10, 
United States Code, is amended by adding at the end the following:
    ``(3) Notwithstanding paragraphs (1) and (2), an officer discharged 
for twice failing of selection for promotion to the next higher grade 
is not entitled to separation pay under this section if the officer 
submitted a request not to be selected for promotion to any selection 
board that considered and did not select the officer for promotion to 
that grade.''.
    (b) Report of Selection Board To Name Officers Requesting 
Nonselection.--Section 617 of such title is amended by adding at the 
end the following:
    ``(c) A selection board convened under section 611(a) of this title 
shall include in its report to the Secretary concerned the name of any 
regular officer considered and not recommended by the board for 
promotion who submitted to the board a request not to be selected for 
promotion.''.
    (c) Effective Date.--This section and the amendments made by this 
section shall take effect on the date of the enactment of this Act and 
shall apply with respect to selection boards convened under section 
611(a) of title 10, United States Code, on or after that date.

SEC. 504. TERM OF OFFICE OF THE CHIEF OF THE AIR FORCE NURSE CORPS.

    Section 8069(b) of title 10, United States Code, is amended in the 
third sentence by striking out ``and'' and inserting in lieu thereof 
the following: ``except that the Secretary may increase the limit to 
four years in any case in which the Secretary determines that special 
circumstances justify a longer term of service in the position. An 
officer appointed as Chief''.

SEC. 505. ATTENDANCE OF RECIPIENTS OF NAVAL RESERVE OFFICERS' TRAINING 
              CORPS SCHOLARSHIPS AT PARTICIPATING COLLEGES OR 
              UNIVERSITIES.

    Section 2107 of title 10, United States Code, is amended by adding 
at the end the following:
    ``(i)(1) Notwithstanding any other provision of law or any policy 
or regulation of the Department of Defense or of the Department of the 
Navy, recipients of Naval Reserve Officers' Training Corps scholarships 
who live in a State which has more scholarship awardees than slots 
available under the Navy quotas in their State colleges and 
universities may attend any college or university of their choice in 
their State to which they have been accepted, so long as the college or 
university is a participant in the Naval Reserve Officers' Training 
Corps program.
    ``(2) The Department of Defense and the Department of the Navy are 
prohibited from setting maximum limits on the number of Naval Reserve 
Officers' Training Corps scholarship students who can be enrolled at 
any college or university participating in the Naval Reserve Officers' 
Training Corps program in such State.''.

                 Subtitle B--Reserve Component Matters

SEC. 511. SERVICE REQUIRED FOR RETIREMENT OF NATIONAL GUARD OFFICER IN 
              HIGHER GRADE.

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

SEC. 512. REDUCED TIME-IN-GRADE REQUIREMENT FOR RESERVE GENERAL AND 
              FLAG OFFICERS INVOLUNTARILY TRANSFERRED FROM ACTIVE 
              STATUS.

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

SEC. 513. ELIGIBILITY OF ARMY AND AIR FORCE RESERVE BRIGADIER GENERALS 
              TO BE CONSIDERED FOR PROMOTION WHILE ON INACTIVE STATUS 
              LIST.

    (a) Waiver of Active Status Requirement.--Chapter 1405 of title 10, 
United States Code, is amended by adding at the end the following:
``Sec. 14318. Officers on inactive status list: eligibility of Army and 
              Air Force reserve brigadier generals for consideration 
              for promotion
    ``(a) Waiver of One-Year Active Status Rule.--The Secretary 
concerned may waive the eligibility requirements in section 14301(a) of 
this title (and the requirement in section 140101(a) of this title that 
an officer be on a reserve active-status list) in the case of a general 
officer referred to in subsection (b) and authorize the officer to be 
considered for promotion under this chapter by a promotion board 
convened under section 14101(a) of this title.
    ``(b) Applicability.--Subsection (a) applies to a reserve officer 
of the Army or Air Force who--
            ``(1) is on the inactive status list of the Standby Reserve 
        in the grade of brigadier general pursuant to a transfer under 
        section 14314(a)(2) of this title;
            ``(2) has been on the inactive status list pursuant to the 
        transfer for less than one year as of the date of the convening 
        of the promotion board that is to consider the officer for 
        promotion; and
            ``(3) during the one-year period ending on the date of the 
        transfer to the inactive status list, continuously performed 
        service on either the reserve active-status list, the active-
        duty list, or a combination of both lists.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following:

``14318. Officers on inactive status list: eligibility of Army and Air 
                            Force reserve brigadier generals for 
                            consideration for promotion.''.

SEC. 514. COMPOSITION OF SELECTIVE EARLY RETIREMENT BOARDS FOR REAR 
              ADMIRALS OF THE NAVAL RESERVE AND MAJOR GENERALS OF THE 
              MARINE CORPS RESERVE.

    Section 14705(b) of title 10, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(b) Boards.--''; and
            (2) by adding at the end the following:
    ``(2) In the case of a board convened to consider the early 
retirement of officers in the grade of rear admiral in the Naval 
Reserve or major general in the Marine Corps Reserve, the Secretary of 
the Navy may prescribe the composition of the board notwithstanding 
section 14102(b) of this title. In doing so, however, the Secretary 
shall ensure that each regular commissioned officer of the Navy or the 
Marine Corps appointed to the board holds a permanent grade higher than 
the grade of the officers under consideration by the board and that at 
least one member of the board is a reserve officer who holds the grade 
of rear admiral or major general.''.

SEC. 515. USE OF RESERVES FOR EMERGENCIES INVOLVING WEAPONS OF MASS 
              DESTRUCTION.

    (a) Order to Active Duty.--(1) Section 12304 of title 10, United 
States Code, is amended--
            (A) in subsection (a), by inserting ``or is necessary to 
        provide assistance referred to in subsection (b)'' after ``to 
        augment the active forces for any operational mission''.
            (B) in subsection (b)--
                    (i) by striking out ``(b)'' and inserting in lieu 
                thereof ``(c) Limitations.--(1)''; and
                    (ii) by striking out ``, or to provide'' and 
                inserting in lieu thereof ``or, except as provided in 
                subsection (b), to provide'';
            (C) by redesignating subsection (c) as paragraph (2); and
            (D) by inserting after subsection (a) the following new 
        subsection (b):
    ``(b) Support for Responses to Certain Emergencies.--The authority 
under subsection (a) includes authority to order a unit or member to 
active duty to provide assistance in responding to an emergency 
involving a use or threatened use of a weapon of mass destruction.''.
    (2) Subsection (i) of such section is amended to read as follows:
    ``(i) Definitions.--For purposes of this section:
            ``(1) The term `Individual Ready Reserve mobilization 
        category' means, in the case of any reserve component, the 
        category of the Individual Ready Reserve described in section 
        10144(b) of this title.
            ``(2) The term `weapon of mass destruction' has the meaning 
        given such term in section 1402 of the Defense Against Weapons 
        of Mass Destruction Act of 1996 (50 U.S.C. 2302(1)).''.
    (3) Such section is further amended--
            (A) in subsection (a), by inserting ``Authority.--'' after 
        ``(a)'';
            (B) in subsection (d), by inserting ``Exclusion From 
        Strength Limitations.--'' after ``(d)'';
            (C) in subsection (e), by inserting ``Policies and 
        Procedures.--'' after ``(e)'';
            (D) in subsection (f), by inserting ``Notification of 
        Congress.--'' after ``(f)'';
            (E) in subsection (g), by inserting ``Termination of 
        Duty.--'' after ``(g)''; and
            (F) in subsection (h), by inserting ``Relationship to War 
        Powers Resolution.--'' after ``(h)''.
    (b) Use of Active Guard and Reserve Personnel.--Section 12310 of 
title 10, United States Code, is amended by adding at the end the 
following:
    ``(c)(1) A Reserve on active duty as described in subsection (a), 
or a Reserve who is a member of the National Guard serving on full-time 
National Guard duty under section 502(f) of title 32 in connection with 
functions referred to in subsection (a), may perform any duties in 
support of emergency preparedness programs to prepare for or to respond 
to any emergency involving the use of a weapon of mass destruction (as 
defined in section 1402 of the Defense Against Weapons of Mass 
Destruction Act of 1996 (50 U.S.C. 2302(1))).
    ``(2) The costs of the pay, allowances, clothing, subsistence, 
gratuities, travel, and related expenses for a Reserve performing 
duties under the authority of paragraph (1) shall be paid from the 
appropriation that is available to pay such costs for other members of 
the reserve component of that Reserve who are performing duties as 
described in subsection (a).''.

                       Subtitle C--Other Matters

 SEC. 521. ANNUAL MANPOWER REQUIREMENTS REPORT.

    Section 115a(a) of title 10, United States Code, is amended by 
striking out the first sentence and inserting in lieu thereof the 
following: ``The Secretary of Defense shall submit an annual manpower 
requirements report to Congress each year, not later than 45 days after 
the date on which the President submits the budget for the next fiscal 
year to Congress under section 1105(a) of title 31.''.

SEC. 522. FOUR-YEAR EXTENSION OF CERTAIN FORCE REDUCTION TRANSITION 
              PERIOD MANAGEMENT AND BENEFITS AUTHORITIES.

    (a) Active Force Early Retirement.--Section 4403(i) of the National 
Defense Authorization Act for Fiscal Year 1993 (10 U.S.C. 1293 note) is 
amended by striking out ``October 1, 1999'' and inserting in lieu 
thereof ``October 1, 2003''.
    (b) Special Separation Benefits Program.--Section 1174a(h) of title 
10, United States Code, is amended by striking out ``September 30, 
1999'' and inserting in lieu thereof ``September 30, 2003''.
    (c) Voluntary Separation Incentive.--Section 1175(d)(3) of such 
title is amended by striking out ``September 30, 1999'' and inserting 
in lieu thereof ``September 30, 2003''.
    (d) Selective Early Retirement Boards.--Section 638a(a) of such 
title, is amended by striking out ``nine-year period'' and inserting in 
lieu thereof ``13-year period''.
    (e) Retired Grade.--Section 1370(a)(2)(A) of such title is amended 
by striking out ``nine-year period'' and inserting in lieu thereof 
``13-year period''.
    (f) Minimum Commissioned Service for Voluntary Retirement.--
Sections 3911(b), 6323(a)(2), and 8911(b) of such title are amended by 
striking out ``nine-year period'' and inserting in lieu thereof ``13-
year period''.
    (g) Travel, Transportation, and Storage Benefits.--(1) Subsections 
(c)(1)(C) and (f)(2)(B)(v) of section 404 of title 37, United States 
Code, and subsections (a)(2)(B)(v) and (g)(1)(C) of section 406 of such 
title are amended by striking out ``nine-year period'' and inserting in 
lieu thereof ``13-year period''.
    (2) Section 503(c)(1) of the National Defense Authorization Act for 
Fiscal Year 1991 (37 U.S.C. 406 note) is amended by striking out 
``nine-year period'' and inserting in lieu thereof ``13-year period''.
    (h) Educational Leave for Public and Community Service.--Section 
4463(f) of the National Defense Authorization Act for Fiscal Year 1993 
(10 U.S.C. 1143a note) is amended by striking out ``September 30, 
1999'' and inserting in lieu thereof ``September 30, 2003''.
    (i) Health Benefits.--Section 1145 of title 10, United States Code, 
is amended--
            (1) in subsections (a)(1) and (c)(1), by striking out 
        ``nine-year period'' and inserting in lieu thereof ``13-year 
        period''; and
            (2) in subsection (e), by striking out ``five-year period'' 
        and inserting in lieu thereof ``nine-year period''.
    (j) Commissary and Exchange Benefits.--Section 1146 of such title 
is amended--
            (1) by striking out ``nine-year period'' in the first 
        sentence and inserting in lieu thereof ``13-year period''; and
            (2) by striking out ``five-year period'' in the second 
        sentence and inserting in lieu thereof ``nine-year period''.
    (k) Use of Military Housing.--Section 1147(a) of such title 10 is 
amended--
            (1) in paragraph (1), by striking out ``nine-year period'' 
        and inserting in lieu thereof ``13-year period''; and
            (2) in paragraph (2), by striking out ``five-year period'' 
        and inserting in lieu thereof ``nine-year period''.
    (l) Continued Enrollment of Dependents in Defense Dependents' 
Education System.--Section 1407(c)(1) of the Defense Dependents' 
Education Act of 1978 (20 U.S.C. 926(c)(1)) is amended by striking out 
``nine-year period'' and inserting in lieu thereof ``13-year period''.
    (m) Guard and Reserve Transition Initiatives.--Title XLIV of the 
National Defense Authorization Act for Fiscal Year 1993 (10 U.S.C. 
12681 note) is amended--
            (1) in section 4411, by striking out ``September 30, 1999'' 
        and inserting in lieu thereof ``September 30, 2003''; and
            (2) in section 4416(b)(1), by striking out ``October 1, 
        1999'' and inserting in lieu thereof ``October 1, 2003''.
    (n) Retired Pay for Nonregular Service-Age and Service 
Requirements.--(1) Section 12731(f) of title 10, United States Code, is 
amended by striking out ``September 30, 1999'' and inserting in lieu 
thereof ``September 30, 2003''.
    (2) Subsections (a)(1)(B) and (b) of section 12731a of such title 
are amended by striking out ``October 1, 1999'' and inserting in lieu 
thereof ``October 1, 2003''.
    (o) Reduction of Time-in-Grade Requirement for Retention of Grade 
Upon Voluntary Retirement.--Section 1370(d) of such title is amended by 
adding at the end the following new paragraph:
    ``(5) The Secretary of Defense may authorize the Secretary of a 
military department to reduce the three-year period required by 
paragraph (3)(A) to a period not less than two years in the case of 
retirements effective during the period beginning on the date of the 
enactment of the Strom Thurmond National Defense Authorization Act for 
Fiscal Year 1999 and ending September 30, 2003. The number of the 
reserved commissioned officers of an armed force in the same grade for 
whom a reduction is made during any fiscal year in the period of 
service-in-grade otherwise required under this paragraph may not exceed 
the number equal to two percent of the strength authorized for that 
fiscal year for reserve commissioned officers of that armed force in an 
active status in that grade.''.
    (p) Affiliation With Guard and Reserve Units; Waiver of Certain 
Limitations.--Section 1150(a) of such title is amended by striking out 
``nine-year period'' and inserting in lieu thereof ``13-year period''.
    (q) Time for Use of Montgomery G.I. Bill Entitlement.--Section 
16133(b)(1)(B) of such title is amended by striking out ``September 30, 
1999'' and inserting in lieu thereof ``September 30, 2003''.

SEC. 523. CONTINUATION OF ELIGIBILITY FOR VOLUNTARY SEPARATION 
              INCENTIVE AFTER INVOLUNTARY LOSS OF MEMBERSHIP IN READY 
              OR STANDBY RESERVE.

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

SEC. 524. REPEAL OF LIMITATIONS ON AUTHORITY TO SET RATES AND WAIVE 
              REQUIREMENT FOR REIMBURSEMENT OF EXPENSES INCURRED FOR 
              INSTRUCTION AT SERVICE ACADEMIES OF PERSONS FROM FOREIGN 
              COUNTRIES.

    (a) United States Military Academy.--Section 4344(b) of title 10, 
United States Code, is amended--
            (1) in the second sentence of paragraph (2), by striking 
        out ``, except that the reimbursement rates may not be less 
        than the cost to the United States of providing such 
        instruction, including pay, allowances, and emoluments, to a 
        cadet appointed from the United States''; and
            (2) by striking out paragraph (3).
    (b) Naval Academy.--Section 6957(b) of such title is amended--
            (1) in the second sentence of paragraph (2), by striking 
        out ``, except that the reimbursement rates may not be less 
        than the cost to the United States of providing such 
        instruction, including pay, allowances, and emoluments, to a 
        midshipman appointed from the United States''; and
            (2) by striking out paragraph (3).
    (c) Air Force Academy.--Section 9344(b) of such title is amended--
            (1) in the second sentence of paragraph (2), by striking 
        out ``, except that the reimbursement rates may not be less 
        than the cost to the United States of providing such 
        instruction, including pay, allowances, and emoluments, to a 
        cadet appointed from the United States''; and
            (2) by striking out paragraph (3).

SEC. 525. REPEAL OF RESTRICTION ON CIVILIAN EMPLOYMENT OF ENLISTED 
              MEMBERS.

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

SEC. 526. EXTENSION OF REPORTING DATES FOR COMMISSION ON MILITARY 
              TRAINING AND GENDER-RELATED ISSUES.

    (a) Interim Report.--Subsection (e)(1) of section 562 of the 
National Defense Authorization Act for Fiscal Year 1998 (Public Law 
105-85; 111 Stat. 1754; 10 U.S.C. 113 note) is amended by striking out 
``April 15, 1998'' and inserting in lieu thereof ``October 15, 1998''.
    (b) Final Report.--Subsection (e)(2) of such section is amended by 
striking out ``September 16, 1998'' and inserting in lieu thereof 
``March 15, 1999''.

SEC. 527. MORATORIUM ON CHANGES OF GENDER-RELATED POLICIES AND 
              PRACTICES PENDING COMPLETION OF THE WORK OF THE 
              COMMISSION ON MILITARY TRAINING AND GENDER-RELATED 
              ISSUES.

    Notwithstanding any other provision of law, officials of the 
Department of Defense are prohibited from implementing any change of 
policy or official practice in the department regarding separation or 
integration of members of the Armed Forces on the basis of gender that 
is within the responsibility of the Commission on Military Training and 
Gender-Related Issues to review under subtitle F of title V of the 
National Defense Authorization Act for Fiscal Year 1998 (Public Law 
105-85; 111 Stat. 1750), before the date on which the commission 
terminates under section 564 of such Act.

SEC. 528. TRANSITIONAL COMPENSATION FOR ABUSED DEPENDENT CHILDREN NOT 
              RESIDING WITH THE SPOUSE OR FORMER SPOUSE OF A MEMBER 
              CONVICTED OF DEPENDENT ABUSE.

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

SEC. 529. PILOT PROGRAM FOR TREATING GED AND HOME SCHOOL DIPLOMA 
              RECIPIENTS AS HIGH SCHOOL GRADUATES FOR DETERMINATIONS OF 
              ELIGIBILITY FOR ENLISTING IN THE ARMED FORCES.

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

SEC. 530. WAIVER OF TIME LIMITATIONS FOR AWARD OF CERTAIN DECORATIONS 
              TO CERTAIN PERSONS.

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

SEC. 531. PROHIBITION ON ENTRY INTO CORRECTIONAL FACILITIES FOR 
              PRESENTATION OF DECORATIONS TO PERSONS WHO COMMIT CERTAIN 
              CRIMES BEFORE PRESENTATION.

    (a) Prohibition.--Chapter 57 of title 10, United States Code, is 
amended by adding at the end the following:
``Sec. 1132. Presentation of decorations: prohibition on entering into 
              correctional facilities for certain presentations
    ``(a) Prohibition.--No member of the armed forces may enter into a 
Federal, State, or local correctional facility for purposes of 
presenting a decoration to a person who has been convicted of a serious 
violent felony.
    ``(b) Definitions.--In this section:
            ``(1) The term `decoration' means any decoration or award 
        that may be presented or awarded to a member of the armed 
        forces.
            ``(2) The term `serious violent felony' has the meaning 
        given that term in section 3359(c)(2)(F) of title 18.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
that chapter is amended by adding at the end the following:

``1132. Presentation of decorations: prohibition on entering into 
                            correctional facilities for certain 
                            presentations.''.

SEC. 532. ADVANCEMENT OF BENJAMIN O. DAVIS, JUNIOR, TO GRADE OF 
              GENERAL.

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

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

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

    (a) Waiver of Section 1009 Adjustment.--Any adjustment required by 
section 1009 of title 37, United States Code, in the rates of monthly 
basic pay authorized members of the uniformed services by section 
203(a) of such title to become effective during fiscal year 1999 shall 
not be made.
    (b) Increase in Basic Pay.--Effective on January 1, 1999, the rates 
of basic pay of members of the uniformed services are increased by 3.6 
percent.
    (c) Offsetting Reductions in Authorizations of Appropriations.--(1) 
Notwithstanding any other provision of title I, the total amount 
authorized to be appropriated under title II is hereby reduced by 
$150,000,000.
    (2) Notwithstanding any other provision of title II, the total 
amount authorized to be appropriated under title II is hereby reduced 
by $275,000,000.

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

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

SEC. 603. PAYMENTS FOR MOVEMENTS OF HOUSEHOLD GOODS ARRANGED BY 
              MEMBERS.

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

SEC. 604. LEAVE WITHOUT PAY FOR SUSPENDED ACADEMY CADETS AND 
              MIDSHIPMEN.

    (a) Authority.--Section 702 of title 10, United States Code, is 
amended--
            (1) by designating the second sentence of subsection (b) as 
        subsection (d);
            (2) by redesignating subsection (b) as subsection (c); and
            (3) by inserting after subsection (a) the following new 
        subsection (b):
    ``(b) Leave Without Pay.--(1) Under regulations prescribed under 
subsection (d), the Superintendent of the United States Military 
Academy, the United States Naval Academy, the United States Air Force 
Academy, or the United States Coast Guard Academy may order a cadet or 
midshipman of the Academy to be placed on leave involuntarily for any 
period during which the cadet or midshipman is suspended from duty at 
the Academy--
            ``(A) pending separation from the Academy;
            ``(B) pending return to the Academy to repeat an academic 
        semester or year; or
            ``(C) for other good cause.
    ``(2) A cadet or midshipman placed on involuntary leave under 
paragraph (1) is not entitled to any pay under section 230(c) of title 
37 for the period of the leave.
    ``(3) A return of a cadet or midshipman to a pay status at the 
Academy from an involuntary leave status under paragraph (1) does not 
restore any entitlement of the cadet or midshipman to pay for the 
period of the involuntary leave.''.
    (b) Subsection Headings.--Such section, as amended by subsection 
(a), is further amended--
            (1) in subsection (a), by inserting ``Graduation Leave.--'' 
        after ``(a)'';
            (2) in subsection (c), by inserting ``Inapplicable Leave 
        Provisions.--'' after ``(c)''; and
            (3) in subsection (d), by inserting ``Regulations.--'' 
        after ``(d)''.

           Subtitle B--Bonuses and Special and Incentive Pays

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

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

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

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

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

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

SEC. 614. ELIGIBILITY OF RESERVES FOR SELECTIVE REENLISTMENT BONUS WHEN 
              REENLISTING OR EXTENDING TO PERFORM ACTIVE GUARD AND 
              RESERVE DUTY.

    Section 308(a)(1)(D) of title 37, United States Code, is amended by 
inserting after ``a regular component of the service concerned'' the 
following: ``, or in a reserve component of the service concerned in 
the case of a member reenlisting or extending to perform active Guard 
and Reserve duty (as defined in section 101(d)(6) of title 10),''.

SEC. 615. REPEAL OF TEN-PERCENT LIMITATION ON PAYMENTS OF SELECTIVE 
              REENLISTMENT BONUSES IN EXCESS OF $20,000.

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

SEC. 616. INCREASE OF MAXIMUM AMOUNT AUTHORIZED FOR ARMY ENLISTMENT 
              BONUS.

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

SEC. 617. EDUCATION LOAN REPAYMENT PROGRAM FOR HEALTH PROFESSIONS 
              OFFICERS SERVING IN SELECTED RESERVE.

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

SEC. 618. INCREASE IN AMOUNT OF BASIC EDUCATIONAL ASSISTANCE UNDER ALL-
              VOLUNTEER FORCE PROGRAM FOR PERSONNEL WITH CRITICALLY 
              SHORT SKILLS OR SPECIALTIES.

    Section 3015(d) of title 38, United States Code, is amended by 
striking out ``$700'' and inserting in lieu thereof ``$950''.

SEC. 619. RELATIONSHIP OF ENTITLEMENTS TO ENLISTMENT BONUSES AND 
              BENEFITS UNDER THE ALL-VOLUNTEER FORCE EDUCATIONAL 
              ASSISTANCE PROGRAM.

    (a) Entitlements Not Exclusive.--(1) Subchapter II of chapter 30 of 
title 38, United States Code, is amended by adding at the end the 
following:
``Sec. 3019A. Relationship to entitlement to certain enlistment bonuses
    ``The entitlement of an individual to benefits under this chapter 
is not affected by receipt by that individual of an enlistment bonus 
under section 308a or 308f of title 37.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 3019 the 
following:

``3019A. Relationship to entitlement to certain enlistment bonuses.''.
    (b) Repeal of Related Limitation.--Section 8013(a) of Public Law 
105-56 (111 Stat. 1222) is amended--
            (1) by striking out ``of this Act--'' and all that follows 
        through ``nor shall any amounts'' and inserting in lieu thereof 
        ``of this Act enlists in the armed services for a period of 
        active duty of less that three years, nor shall any amounts''; 
        and
            (2) in the first proviso, by striking out ``in the case of 
        a member covered by clause (1),''.

SEC. 620. HARDSHIP DUTY PAY.

    (a) Duty for Which Pay Authorized.--Subsection (a) of section 305 
of title 37, United States Code, is amended by striking out ``on duty 
at a location'' and all that follows and inserting in lieu thereof 
``performing duty in the United States or outside the United States 
that is designated by the Secretary of Defense as hardship duty.''.
    (b) Repeal of Exception for Members Receiving Career Sea Pay.--
Subsection (c) of such section is repealed.
    (c) Conforming Amendments.--(1) Subsections (b) and (d) of such 
section are amended by striking out ``hardship duty location pay'' and 
inserting in lieu thereof ``hardship duty pay''.
    (2) Subsection (d) of such section is redesignated as subsection 
(c).
    (3) The heading for such section is amended by striking out 
``location''.
    (4) Section 907(d) of title 37, United States Code, is amended by 
striking out ``duty at a hardship duty location'' and inserting in lieu 
thereof ``hardship duty''.
    (d) Clerical Amendment.--The item relating to section 305 in the 
table of sections at the beginning of chapter 5 of such title is 
amended to read as follows:

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

SEC. 620A. INCREASED HAZARDOUS DUTY PAY FOR AERIAL FLIGHT CREWMEMBERS 
              IN PAY GRADES E-4 TO E-9.

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

``E-
                            9....................................................................
                            240
 E-
                            8.....................................................................
                            240
 E-
                            7.....................................................................
                            240
 E-
                            6.....................................................................
                            215
 E-
                            5.....................................................................
                            190
 E-
                            4.....................................................................
                            165''.
    (b) Effective Date.--This section and the amendment made by this 
section shall take effect on October 1, 1998, and shall apply with 
respect to months beginning on or after that date.

SEC. 620B. DIVING DUTY SPECIAL PAY FOR DIVERS HAVING DIVING DUTY AS A 
              NONPRIMARY DUTY.

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

SEC. 620C. RETENTION INCENTIVES INITIATIVE FOR CRITICALLY SHORT 
              MILITARY OCCUPATIONAL SPECIALTIES.

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

            Subtitle C--Travel and Transportation Allowances

SEC. 621. TRAVEL AND TRANSPORTATION FOR REST AND RECUPERATION IN 
              CONNECTION WITH CONTINGENCY OPERATIONS AND OTHER DUTY.

    Section 411c of title 37, United States Code, is amended--
            (1) in subsection (a)--
                    (A) by redesignating paragraphs (1) and (2) as 
                subparagraphs (A) and (B); and
                    (B) by inserting ``In General.--(1)'' after 
                ``(a)'';
            (2) in subsection (b), by striking out ``(b) The 
        transportation authorized by this section'' and inserting in 
        lieu thereof ``(2) The transportation authorized by paragraph 
        (1)''; and
            (3) by adding at the end the following:
    ``(b) Contingency Operations and Other Special Situations.--(1) 
Under uniform regulations prescribed by the Secretaries concerned, a 
member of the armed forces serving a tour of duty at a duty station, 
and under conditions, described in paragraph (2) may be paid for or 
provided transportation to a location described in subsection (a)(1) as 
part of a program of rest and recuperation specifically authorized for 
members of the armed forces serving under those conditions at that duty 
station by the Secretary concerned in advance of the commencement of 
the member's travel.
    ``(2) Paragraph (1) applies to a member of the armed forces serving 
at a duty station outside the United States if--
            ``(A) the member is participating in a contingency 
        operation at or from that duty station; or
            ``(B) the payment for or provision of transportation would 
        be in the best interests of members of the armed forces and the 
        United States because of unusual conditions at the duty 
        station, as determined by the Secretary concerned.
    ``(3) Transportation may not be paid for or provided to a member 
under this subsection for travel that begins--
            ``(A) more than 24 months after the commencement of the 
        tour of duty for which the transportation is authorized; or
            ``(B) after the tour of duty ends.
    ``(4) The transportation authorized by this subsection is limited 
to one round-trip during any tour of at least 6, but less than 24, 
consecutive months.
    ``(5) Transportation paid for or provided to a member under this 
subsection may not be counted as transportation for which the member is 
eligible under subsection (a).''.

SEC. 622. PAYMENT FOR TEMPORARY STORAGE OF BAGGAGE OF DEPENDENT STUDENT 
              NOT TAKEN ON ANNUAL TRIP TO OVERSEAS DUTY STATION OF 
              SPONSOR.

    Section 430(b) of title 37, United States Code, is amended by 
striking out the second sentence and inserting in lieu thereof the 
following: ``The allowance authorized by this section may be prescribed 
by the Secretaries concerned as transportation in kind or reimbursement 
therefor, including an amount for the temporary storage of any baggage 
not taken with the child on the annual trip if determined advantageous 
to the Government.''.

SEC. 623. COMMERCIAL TRAVEL OF RESERVES AT FEDERAL SUPPLY SCHEDULE 
              RATES FOR ATTENDANCE AT INACTIVE DUTY TRAINING 
              ASSEMBLIES.

    (a) Authority.--Chapter 1217 of title 10, United States Code is 
amended by adding at the end the following:
``Sec. 12603. Commercial travel at Federal supply schedule rates for 
              attendance at inactive duty training assemblies
    ``(a) Federal Supply Schedule Travel.--Commercial travel under 
Federal supply schedules is authorized for the travel of a Reserve to 
the location of inactive duty training to be performed by the Reserve 
or from that location upon completion of the training.
    ``(b) Regulations.--The Secretary of Defense shall prescribe in 
regulations the requirements, conditions, and restrictions for travel 
under the authority of subsection (a) that the Secretary considers 
appropriate. The regulations shall include policies and procedures for 
preventing abuses of the travel authority.
    ``(c) Reimbursement Not Authorized.--A Reserve is not entitled to 
Government reimbursement for the cost of travel authorized under 
subsection (a).
    ``(d) Treatment of Transportation as Use by Military Departments.--
For the purposes of section 201(a) of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 481(a)), travel 
authorized under subsection (a) shall be treated as transportation for 
the use of a military department.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following:

``12603. Commercial travel at Federal supply schedule rates for 
                            attendance at inactive duty training 
                            assemblies.''.

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

SEC. 631. PAID-UP COVERAGE UNDER SURVIVOR BENEFIT PLAN.

    (a) Paid Up at 30 Years of Service and Age 70.--Section 1452 of 
title 10, United States Code, is amended by adding at the end the 
following new subsection:
    ``(j) Coverage Paid Up at 30 Years and Attainment of Age 70.--(1) 
Coverage of a survivor of a member under the Plan shall be considered 
paid up as of the end of the later of--
            ``(A) the 360th month in which the member's retired pay has 
        been reduced under this section; or
            ``(B) the month in which the member attains 70 years of 
        age.
    ``(2) The retired pay of a member shall not be reduced under this 
section to provide coverage of a survivor under the Plan after the 
month when the coverage is considered paid up under paragraph (1).''.
    (b) Effective Date.--Section 1452(j) of title 10, United States 
Code (as added by subsection (a)), shall take effect on October 1, 
2003.

SEC. 632. COURT-REQUIRED SURVIVOR BENEFIT PLAN COVERAGE EFFECTUATED 
              THROUGH ELECTIONS AND DEEMED ELECTIONS.

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

SEC. 633. RECOVERY, CARE, AND DISPOSITION OF REMAINS OF MEDICALLY 
              RETIRED MEMBER WHO DIES DURING HOSPITALIZATION THAT 
              BEGINS WHILE ON ACTIVE DUTY.

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

SEC. 634. SURVIVOR BENEFIT PLAN OPEN ENROLLMENT PERIOD.

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

SEC. 635. ELIGIBILITY FOR PAYMENTS OF CERTAIN SURVIVORS OF CAPTURED AND 
              INTERNED VIETNAMESE OPERATIVES WHO WERE UNMARRIED AND 
              CHILDLESS AT DEATH.

    Section 657(b) of the National Defense Authorization Act for Fiscal 
Year 1997 (Public Law 104-201; 110 Stat. 2585) is amended by adding at 
the end the following:
            ``(3) In the case of a decedent who had not been married at 
        the time of death--
                    ``(A) to the surviving parents; or
                    ``(B) if there are no surviving parents, to the 
                surviving siblings by blood of the decedent, in equal 
                shares.''.

SEC. 636. CLARIFICATION OF RECIPIENT OF PAYMENTS TO PERSONS CAPTURED OR 
              INTERNED BY NORTH VIETNAM.

    Section 657(f)(1) of the National Defense Authorization Act for 
Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2585) is amended by 
striking out ``The actual disbursement'' and inserting in lieu thereof 
``Notwithstanding any agreement (including a power of attorney) to the 
contrary, the actual disbursement''.

SEC. 637. PRESENTATION OF UNITED STATES FLAG TO MEMBERS OF THE ARMED 
              FORCES.

    (a) Army.--(1) Chapter 353 of title 10, United States Code, is 
amended by inserting after the table of sections the following:
``Sec. 3681. Presentation of flag upon retirement at end of active duty 
              service
    ``(a) Requirement.--The Secretary of the Army shall present a 
United States flag to a member of any component of the Army upon the 
release of the member from active duty for retirement.
    ``(b) Multiple Presentations Not Authorized.--A member is not 
eligible for a presentation of a flag under subsection (a) if the 
member has previously been presented a flag under this section or 
section 6141 or 8681 of this title.
    ``(c) No Cost to Recipient.--The presentation of a flag under his 
section shall be at no cost to the recipient.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting before the item relating to section 3684 the 
following:

``3681. Presentation of flag upon retirement at end of active duty 
                            service.''.
    (b) Navy and Marine Corps.--(1) Chapter 561 of title 10, United 
States Code, is amended by inserting after the table of sections the 
following:
``Sec. 6141. Presentation of flag upon retirement at end of active duty 
              service
    ``(a) Requirement.--The Secretary of the Navy shall present a 
United States flag to a member of any component of the Navy or Marine 
Corps upon the release of the member from active duty for retirement or 
for transfer to the Fleet Reserve or the Fleet Marine Corps Reserve.
    ``(b) Multiple Presentations Not Authorized.--A member is not 
eligible for a presentation of a flag under subsection (a) if the 
member has previously been presented a flag under this section or 
section 3681 or 8681 of this title.
    ``(c) No Cost to Recipient.--The presentation of a flag under his 
section shall be at no cost to the recipient.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting before the item relating to section 6151 the 
following:

``6141. Presentation of flag upon retirement at end of active duty 
                            service.''.
    (c) Air Force.--(1) Chapter 853 of title 10, United States Code, is 
amended by inserting after the table of sections the following:
``Sec. 8681. Presentation of flag upon retirement at end of active duty 
              service
    ``(a) Requirement.--The Secretary of the Air Force shall present a 
United States flag to a member of any component of the Air Force upon 
the release of the member from active duty for retirement.
    ``(b) Multiple Presentations Not Authorized.--A member is not 
eligible for a presentation of a flag under subsection (a) if the 
member has previously been presented a flag under this section or 
section 3681 or 6141 of this title.
  ``(c) No Cost to Recipient.--The presentation of a flag under his 
section shall be at no cost to the recipient.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting before the item relating to section 8684 the 
following:

``8681. Presentation of flag upon retirement at end of active duty 
                            service.''.
    (d) Requirement for Advance Appropriations.--The Secretary of a 
military department may present flags under authority provided the 
Secretary in section 3681, 6141, or 8681 title 10, United States Code 
(as added by this section), only to the extent that funds for such 
presentations are appropriated for that purpose in advance.
    (e) Effective Date.--Sections 3681, 6141, and 8681 of title 10, 
United States Code (as added by this section shall take effect on 
October 1, 1998, and shall apply with respect to releases described in 
those sections on or after that date.

SEC. 638. ELIMINATION OF BACKLOG OF UNPAID RETIRED PAY.

    (a) Requirement.--The Secretary of the Army shall take such actions 
as are necessary to eliminate, by December 31, 1998, the backlog of 
unpaid retired pay for members and former members of the Army 
(including members and former members of the Army Reserve and the Army 
National Guard).
    (b) Report.--Not later than 30 days after the date of the enactment 
of this Act, the Secretary of the Army shall submit to Congress a 
report on the backlog of unpaid retired pay. The report shall include 
the following:
            (1) The actions taken under subsection (a).
            (2) The extent of the remaining backlog.
            (3) A discussion of any additional actions that are 
        necessary to ensure that retired pay is paid in a timely 
        manner.
    (c) Funding.--Of the amount authorized to be appropriated under 
section 421, $1,700,000 shall be available for carrying out this 
section.

                       Subtitle E--Other Matters

SEC. 641. DEFINITION OF POSSESSIONS OF THE UNITED STATES FOR PAY AND 
              ALLOWANCES PURPOSES.

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

SEC. 642. FEDERAL EMPLOYEES' COMPENSATION COVERAGE FOR STUDENTS 
              PARTICIPATING IN CERTAIN OFFICER CANDIDATE PROGRAMS.

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

SEC. 643. AUTHORITY TO PROVIDE FINANCIAL ASSISTANCE FOR EDUCATION OF 
              CERTAIN DEFENSE DEPENDENTS OVERSEAS.

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

SEC. 644. VOTING RIGHTS OF MILITARY PERSONNEL.

    (a) Guarantee of Residency.--Article VII of the Soldiers' and 
Sailors' Civil Relief Act of 1940 (50 U.S.C. App. 590 et seq.) is 
amended by adding at the end the following:
    ``Sec. 704. (a) For purposes of voting for an office of the United 
States or of a State, a person who is absent from a State in compliance 
with military or naval orders shall not, solely by reason of that 
absence--
            ``(1) be deemed to have lost a residence or domicile in 
        that State;
            ``(2) be deemed to have acquired a residence or domicile in 
        any other State; or
            ``(3) be deemed to have become resident in or a resident of 
        any other State.
    ``(b) In this section, the term `State' includes a territory or 
possession of the United States, a political subdivision of a State, 
territory, or possession, and the District of Columbia.''.
    (b) State Responsibility To Guarantee Military Voting Rights.--(1) 
Section 102 of the Uniformed and Overseas Citizens Absentee Voting Act 
(42 U.S.C. 1973ff-1) is amended--
            (A) by inserting ``(a) Elections for Federal Offices.--'' 
        before ``Each State shall--''; and
            (B) by adding at the end the following:
    ``(b) Elections for State and Local Offices.--Each State shall--
            ``(1) permit absent uniformed services voters to use 
        absentee registration procedures and to vote by absentee ballot 
        in general, special, primary, and runoff elections for State 
        and local offices; and
            ``(2) accept and process, with respect to any election 
        described in paragraph (1), any otherwise valid voter 
        registration application from an absent uniformed services 
        voter if the application is received by the appropriate State 
        election official not less than 30 days before the election.''.
    (2) The heading of title I of such Act is amended by striking out 
``FOR FEDERAL OFFICE''.

                         TITLE VII--HEALTH CARE

SEC. 701. DEPENDENTS' DENTAL PROGRAM.

    (a) Inflation-Indexed Premium.--(1) Section 1076a(b)(2) of title 
10, United States Code, is amended--
            (A) by inserting ``(A)'' after ``(2)''; and
            (B) by adding at the end the following:
    ``(B) Effective as of January 1 of each year, the amount of the 
premium required under subparagraph (A) shall be increased by the 
percent equal to the lesser of--
            ``(i) the percent by which the rates of basic pay of 
        members of the uniformed services are increased on such date; 
        or
            ``(ii) the sum of one-half percent and the percent computed 
        under section 5303(a) of title 5 for the increase in rates of 
        basic pay for statutory pay systems for pay periods beginning 
        on or after such date.''.
    (2) The amendment made by subparagraph (B) of paragraph (1) shall 
take effect on January 1, 1999, and shall apply to months after 1998 as 
if such subparagraph had been in effect since December 31, 1993.
    (b) Offer of Plan Under TRICARE.--(1) Section 1097 of such title is 
amended by adding at the end the following:
    ``(f) Dependents' Dental Plan.--A basic dental benefits plan 
established for eligible dependents under section 1076a of this title 
may be offered under the TRICARE program.''.
    (2) Subsection (e) of such section is amended by adding at the end 
the following: ``Charges for a basic dental benefits plan offered under 
the TRICARE program pursuant to subsection (f) shall be those provided 
for under section 1076a of this title.''.

SEC. 702. EXTENSION OF AUTHORITY FOR USE OF PERSONAL SERVICES CONTRACTS 
              FOR PROVISION OF HEALTH CARE AT MILITARY ENTRANCE 
              PROCESSING STATIONS AND ELSEWHERE OUTSIDE MEDICAL 
              TREATMENT FACILITIES.

    Section 1091(a)(2) of title 10, United States Code, is amended in 
the second sentence by striking out ``the end of the one-year period 
beginning on the date of the enactment of this paragraph'' and 
inserting in lieu thereof ``June 30, 1999''.

SEC. 703. TRICARE PRIME AUTOMATIC ENROLLMENTS AND RETIREE PAYMENT 
              OPTIONS.

    (a) Procedures.--(1) Chapter 55 of title 10, United States Code, is 
amended by inserting after section 1097 the following new section:
``Sec. 1097a. TRICARE Prime: automatic enrollments; payment options
    ``(a) Automatic Enrollment of Certain Dependents.--Each dependent 
of a member of the uniformed services in grade E4 or below who is 
entitled to medical and dental care under section 1076(a)(2)(A) of this 
title and resides in the catchment area of a facility of a uniformed 
service offering TRICARE Prime shall be automatically enrolled in 
TRICARE Prime at the facility. The Secretary concerned shall provide 
written notice of the enrollment to the member. The enrollment of a 
dependent of the member may be terminated by the member or the 
dependent at any time.
    ``(b) Automatic Renewal of Enrollments of Covered Beneficiaries.--
(1) An enrollment of a covered beneficiary in TRICARE Prime shall be 
automatically renewed upon the expiration of the enrollment unless the 
renewal is declined.
    ``(2) Not later than 15 days before the expiration date for an 
enrollment of a covered beneficiary in TRICARE Prime, the Secretary 
concerned shall--
            ``(A) transmit a written notification of the pending 
        expiration and renewal of enrollment to the covered beneficiary 
        or, in the case of a dependent of a member of the uniformed 
        services, to the member; and
            ``(B) afford the beneficiary or member, as the case may be, 
        an opportunity to decline the renewal of enrollment.
    ``(c) Payment Options for Retirees.--A member or former member of 
the uniformed services eligible for medical care and dental care under 
section 1074(b) of this title may elect to have any fee payable by the 
member or former member for an enrollment in TRICARE Prime withheld 
from the member's retired pay, retainer pay, or equivalent pay, as the 
case may be, or to be paid from a financial institution through 
electronic transfers of funds. The fee shall be paid in accordance with 
the election.
    ``(d) Regulations.--The administering Secretaries shall prescribe 
regulations, including procedures, for carrying out this section.
    ``(e) Definitions.--In this section:
            ``(1) The term `TRICARE Prime' means the managed care 
        option of the TRICARE program.
            ``(2) The term `catchment area', with respect to a facility 
        of a uniformed service, means the service area of the facility, 
        as designated under regulations prescribed by the administering 
        Secretaries.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 1097 the 
following new item:

1097a. TRICARE Prime: automatic enrollments; payment options.''.
    (b) Deadline for Implementation.--The regulations required under 
subsection (d) of section 1097a of title 10, United States Code (as 
added by subsection (a)), shall be prescribed to take effect not later 
than January 1, 1999. The section shall be applied under TRICARE Prime 
on and after the date on which the regulations take effect.

SEC. 704. LIMITED CONTINUED CHAMPUS COVERAGE FOR PERSONS UNAWARE OF A 
              LOSS OF CHAMPUS COVERAGE RESULTING FROM ELIGIBILITY FOR 
              MEDICARE.

    (a) Continuation of Eligibility.--The eligibility of a person 
described in subsection (b) for care under CHAMPUS may be continued 
under regulations prescribed by the administering Secretaries if it is 
determined under the regulations that the continuation of the 
eligibility is appropriate in order to ensure that the person has 
adequate access to health care.
    (b) Eligible Persons.--Subsection (a) applies to a person who--
            (1) has been eligible for health care under CHAMPUS;
            (2) loses eligibility for health care under CHAMPUS solely 
        by reason of paragraph (1) of section 1086(d), United States 
        Code;
            (3) is unaware of the loss of eligibility; and
            (4) satisfies the conditions set forth in subparagraphs (A) 
        and (B) of paragraph (2) of such section 1086(d) at the time 
        health care is provided under CHAMPUS pursuant to a 
        continuation of eligibility in accordance with this section.
    (c) Period of Continued Eligibility.--A continuation of eligibility 
under this section shall apply with regard to health care provided on 
or after October 1, 1998, and before July 1, 1999.
    (d) Definitions.--In this section:
            (1) The term ``administering Secretaries'' has the meaning 
        given such term in paragraph (3) of section 1072 of title 10, 
        United States Code.
            (2) The term ``CHAMPUS'' means the Civilian Health and 
        Medical Program of the Uniformed Services, as defined in 
        paragraph (4) of such section.

SEC. 705. ENHANCED DEPARTMENT OF DEFENSE ORGAN AND TISSUE DONOR 
              PROGRAM.

    (a) Findings.--Congress makes the following findings:
            (1) Organ and tissue transplantation is one of the most 
        remarkable medical success stories in the history of medicine.
            (2) Each year, the number of people waiting for organ or 
        tissue transplantation increases. It is estimated that there 
        are approximately 39,000 patients, ranging in age from babies 
        to those in retirement, awaiting transplants of kidneys, 
        hearts, livers, and other solid organs.
            (3) The Department of Defense has made significant progress 
        in increasing the awareness of the importance of organ and 
        tissue donations among members of the Armed Forces.
            (4) The inclusion of organ and tissue donor elections in 
        the Defense Enrollment Eligibility Reporting System (DEERS) 
        central database through the Real-time Automated Personnel 
        Identification System (RAPIDS) represents a major step in 
        ensuring that organ and tissue donor elections are a matter of 
        record and are accessible in a timely manner.
    (b) Responsibilities of the Secretary of Defense.--The Secretary of 
Defense shall ensure that the advanced systems developed for recording 
Armed Forces members' personal data and information (such as the 
SMARTCARD, MEDITAG, and Personal Information Carrier) include the 
capability to record organ and tissue donation elections.
    (c) Responsibilities of the Secretaries of the Military 
Departments.--The Secretaries of the military departments shall ensure 
that--
            (1) appropriate information about organ and tissue donation 
        is provided to each recruit and officer candidate of the Armed 
        Forces during initial training;
            (2) members of the Armed Forces are given recurring, 
        specific opportunities to elect to be organ or tissue donors 
        during service in the Armed Forces and upon retirement; and
            (3) members of the Armed Forces electing to be organ or 
        tissue donors are encouraged to advise their next of kin 
        concerning the donation decision and any subsequent change of 
        that decision.
    (d) Responsibilities of the Surgeons General of the Military 
Department.--The Surgeons General of the Armed Forces shall ensure 
that--
            (1) appropriate training is provided to enlisted and 
        officer medical personnel to facilitate the effective operation 
        of organ and tissue donation activities under garrison 
        conditions and, to the extent possible, under operational 
        conditions; and
            (2) medical logistical activities can, to the extent 
        possible without jeopardizing operational requirements, support 
        an effective organ and tissue donation program.
    (e) Report.--Not later than September 1, 1999, the Secretary of 
Defense shall submit to the Committee on Armed Services of the Senate 
and the Committee on National Security of the House of Representatives 
a report on the status of the implementation of this section.

SEC. 706. JOINT DEPARTMENT OF DEFENSE AND DEPARTMENT OF VETERANS 
              AFFAIRS REVIEWS RELATING TO INTERDEPARTMENTAL COOPERATION 
              IN THE DELIVERY OF MEDICAL CARE.

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

SEC. 707. DEMONSTRATION PROJECTS TO PROVIDE HEALTH CARE TO CERTAIN 
              MEDICARE-ELIGIBLE BENEFICIARIES OF THE MILITARY HEALTH 
              CARE SYSTEM.

    (a) In General.--(1) The Secretary of Defense shall, after 
consultation with the other administering Secretaries, carry out three 
demonstration projects (described in subsections (d), (e), and (f)) in 
order to assess the feasibility and advisability of providing certain 
medical care coverage to the medicare-eligible individuals described in 
subsection (b).
    (2) The Secretary shall commence the demonstration projects not 
later than January 1, 2000, and shall terminate the demonstration 
projects not later than December 31, 2003.
    (3) The aggregate costs incurred by the Secretary under the 
demonstration projects in any year may not exceed $60,000,000.
    (b) Eligible Individuals.--An individual eligible to participate in 
a demonstration project under subsection (a) is a member or former 
member of the uniformed services described in section 1074(b) of title 
10, United States Code, a dependent of the member described in section 
1076(a)(2)(B) or 1076(b) of that title, or a dependent of a member of 
the uniformed services who died while on active duty for a period of 
more than 30 days, who--
            (1) is 65 years of age or older;
            (2) is entitled to hospital insurance benefits under part A 
        of title XVIII of the Social Security Act (42 U.S.C. 1395c et 
        seq.);
            (3) is enrolled in the supplemental medical insurance 
        program under part B of such title XVIII (42 U.S.C. 1395j et 
        seq.); and
            (4) resides in an area of the demonstration project 
        selected by the Secretary under subsection (c).
    (c) Areas of Demonstration Projects.--(1) Subject to paragraph (3), 
the Secretary shall carry out each demonstration project under this 
section in two separate areas selected by the Secretary.
    (2) Of the two areas selected for each demonstration project--
            (A) one shall be an area outside the catchment area of a 
        military medical treatment facility in which--
                    (i) no eligible organization has a contract in 
                effect under section 1876 of the Social Security Act 
                (42 U.S.C. 1395mm) and no Medicare+Choice organization 
                has a contract in effect under part C of title XVIII of 
                that Act (42 U.S.C. 1395w-21); or
                    (ii) the aggregate number of enrollees with an 
                eligible organization with a contract in effect under 
                section 1876 of that Act or with a Medicare+Choice 
                organization with a contract in effect under part C of 
                title XVIII of that Act is less than 2.5 percent of the 
                total number of individuals in the area who are 
                entitled to hospital insurance benefits under part A of 
                title XVIII of that Act; and
            (B) one shall be an area outside the catchment area of a 
        military medical treatment facility in which--
                    (i) at least one eligible organization has a 
                contract in effect under section 1876 of that Act or 
                one Medicare+Choice organization has a contract in 
                effect under part C of title XVIII of that Act; and
                    (ii) the aggregate number of enrollees with an 
                eligible organization with a contract in effect under 
                section 1876 of that Act or with a Medicare+Choice 
                organization with a contract in effect under part C of 
                title XVIII of that Act exceeds 10 percent of the total 
                number of individuals in the area who are entitled to 
                hospital insurance benefits under part A of title XVIII 
                of that Act.
    (3) The Secretary may not carry out a demonstration project under 
this section in any area in which the Secretary is carrying out any 
other medical care demonstration project unless the Secretary 
determines that the conduct of such other medical care demonstration 
project will not interfere with the conduct or evaluation of the 
demonstration project under this section.
    (d) FEHBP as Supplement to Medicare Demonstration.--(1)(A) Under 
one of the demonstration projects under this section, the Secretary 
shall permit eligible individuals described in subsection (b) who 
reside in the areas of the demonstration project selected under 
subsection (c) to enroll in the health benefits plans offered through 
the Federal Employees Health Benefits program under chapter 89 of title 
5, United States Code.
    (B) The Secretary shall carry out the demonstration project under 
this subsection under an agreement with the Office of Personnel 
Management.
    (2)(A) An eligible individual described in paragraph (1) shall not 
be required to satisfy any eligibility criteria specified in chapter 89 
of title 5, United States Code, as a condition for enrollment in the 
health benefits plans offered through the Federal Employee Health 
Benefits program under the demonstration project under this subsection.
    (B) Each eligible individual who enrolls in a health benefits plan 
under the demonstration project shall be required to remain enrolled in 
the supplemental medical insurance program under part B of title XVIII 
of the Social Security Act while participating in the demonstration 
project.
    (3)(A) The authority responsible for approving retired or retainer 
pay or equivalent pay in the case of a member or former member shall 
manage the participation of the members or former members who enroll in 
health benefits plans offered through the Federal Employee Health 
Benefits program pursuant to paragraph (1).
    (B) Such authority shall distribute program information to eligible 
individuals, process enrollment applications, forward all required 
contributions to the Employees Health Benefits Fund established under 
section 8909 of title 5, United States Code, in a timely manner, assist 
in the reconciliation of enrollment records with health plans, and 
prepare such reports as the Office of Personnel Management may require 
in its administration of chapter 89 of such title.
    (4)(A) The Office of Personnel Management shall require health 
benefits plans under chapter 89 of title 5, United States Code, that 
participate in the demonstration project to maintain a separate risk 
pool for purposes of establishing premium rates for eligible 
individuals who enroll in such plans in accordance with this 
subsection.
    (B) The Office shall determine total subscription charges for self 
only or for family coverage for eligible individuals who enroll in a 
health benefits plan under chapter 89 of such title in accordance with 
this subsection, which shall include premium charges paid to the plan 
and amounts described in section 8906(c) of title 5, United States 
Code, for administrative expenses and contingency reserves.
    (5) The Secretary shall be responsible for the Government 
contribution for an eligible individual who enrolls in a health 
benefits plan under chapter 89 of title 5, United States Code, in 
accordance with this subsection, except that the amount of the 
contribution may not exceed the amount of the Government contribution 
which would be payable if such individual were an employee enrolled in 
the same health benefits plan and level of benefits.
    (6) The cancellation by a eligible individual of coverage under the 
Federal Employee Health Benefits program shall be irrevocable during 
the term of the demonstration project under this subsection.
    (e) TRICARE as Supplement to Medicare Demonstration.--(1) Under one 
of the demonstration projects under this section, the Secretary shall 
permit eligible individuals described in subsection (b) who reside in 
each area of the demonstration project selected under subsection (c) to 
enroll in the TRICARE program. The demonstration project under this 
subsection shall be known as the ``TRICARE Senior Supplement''.
    (2) Payment for care and services received by eligible individuals 
who enroll in the TRICARE program under the demonstration project shall 
be made as follows:
            (A) First, under title XVIII of the Social Security Act, 
        but only the extent that payment for such care and services is 
        provided for under that title.
            (B) Second, under the TRICARE program, but only to the 
        extent that payment for such care and services is provided 
        under that program and is not provided for under subparagraph 
        (A).
            (C) Third, by the eligible individual concerned, but only 
        to the extent that payment for such care and services is not 
        provided for under subparagraphs (B) and (C).
    (3)(A) The Secretary shall require each eligible individual who 
enrolls in the TRICARE program under the demonstration project to pay 
an enrollment fee. The Secretary may provide for payment of the 
enrollment fee on a periodic basis.
    (B) The amount of the enrollment fee of an eligible individual 
under subparagraph (A) in any year may not exceed an amount equal to 75 
percent of the total subscription charges in that year for self-only or 
family, fee-for-service coverage under the health benefits plan under 
the Federal Employees Health Benefits program under chapter 89 of title 
5, United States Code, that is most similar in coverage to the TRICARE 
program.
    (f) TRICARE Mail Order Pharmacy Benefit Supplement to Medicare 
Demonstration.--(1) Under one of the demonstration projects under this 
section, the Secretary shall permit eligible individuals described in 
subsection (b) who reside in each area of the demonstration project 
selected under subsection (c) to participate in the mail order pharmacy 
benefit available under the TRICARE program.
    (2) The Secretary may collect from eligible individuals who 
participate in the mail order pharmacy benefit under the demonstration 
project any premiums, deductibles, copayments, or other charges that 
the Secretary would otherwise collect from individuals similar to such 
eligible individuals for participation in the benefit.
    (g) Independent Evaluation.--(1) The Secretary shall provide for an 
evaluation of the demonstration projects conducted under this section 
by an appropriate person or entity that is independent of the 
Department of Defense.
    (2) The evaluation shall include the following:
            (A) An analysis of the costs of each demonstration project 
        to the United States and to the eligible individuals who enroll 
        or participate in such demonstration project.
            (B) An assessment of the extent to which each demonstration 
        project satisfied the requirements of such eligible individuals 
        for the health care services available under such demonstration 
        project.
            (C) An assessment of the effect, if any, of each 
        demonstration project on military medical readiness.
            (D) A description of the rate of the enrollment or 
        participation in each demonstration project of the individuals 
        who were eligible to enroll or participate in such 
        demonstration project.
            (E) An assessment of which demonstration project provides 
        the most suitable model for a program to provide adequate 
        health care services to the population of individuals 
        consisting of the eligible individuals.
            (F) An evaluation of any other matters that the Secretary 
        considers appropriate.
    (3) The Comptroller General shall review the evaluation conducted 
under paragraph (1). In carrying out the review, the Comptroller 
General shall--
            (A) assess the validity of the processes used in the 
        evaluation; and
            (B) assess the validity of any findings under the 
        evaluation.
    (4)(A) The Secretary shall submit a report on the results of the 
evaluation under paragraph (1), together with the evaluation, to the 
Committee on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives not later than December 31, 
2003.
    (B) The Comptroller General shall submit a report on the results of 
the review under paragraph (3) to the committees referred to in 
subparagraph (A) not later than February 15, 2004.
    (h) Additional Requirements Relating to FEHBP Demonstration 
Project.--(1) Notwithstanding subsection (a)(2), the Secretary shall 
commence the demonstration project under subsection (d) on July 1, 
1999.
    (2) Notwithstanding subsection (c), the Secretary shall carry out 
the demonstration project under subsection (d) in four separate areas, 
of which--
            (A) two shall meet the requirements of subsection 
        (c)(1)(A); and
            (B) two others shall meet the requirements of subsection 
        (c)(1)(B).
    (3)(A) Notwithstanding subsection (f), the Secretary shall provide 
for an annual evaluation of the demonstration project under subsection 
(d) that meets the requirements of subsection (f)(2).
    (B) The Comptroller shall review each evaluation provided for under 
subparagraph (A).
    (C) Not later than September 15 in each of 2000 through 2004, the 
Secretary shall submit a report on the results of the evaluation under 
subparagraph (A) during such year, together with the evaluation, to the 
Committee on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives.
    (D) Not later than December 31 in each of 2000 through 2004, the 
Comptroller General shall submit a report on the results of the review 
under subparagraph (B) during such year to the committees referred to 
in subparagraph (C).
    (i) Definitions.--In this section:
            (1) The term ``administering Secretaries'' has the meaning 
        given that term in section 1072(3) of title 10, United States 
        Code.
            (2) The term ``TRICARE program'' has the meaning given that 
        term in section 1072(7) of title 10, United States Code.
    (j) Competition for Services.--The program under this section will 
allow retail to compete for services in delivery of pharmacy benefits 
without increasing costs to the Government or the beneficiaries.

SEC. 708. PROFESSIONAL QUALIFICATIONS OF PHYSICIANS PROVIDING MILITARY 
              HEALTH CARE.

    (a) Requirement for Unrestricted License.--Section 1094(a)(1) of 
title 10, United States Code, is amended by adding at the end the 
following: ``In the case of a physician, the physician may not provide 
health care as a physician under this chapter unless the current 
license is an unrestricted license that is not subject to limitation on 
the scope of practice ordinarily granted to other physicians for a 
similar specialty by the jurisdiction that granted the license.''.
    (b) Satisfaction of Continuing Medical Education Requirements.--(1) 
Chapter 55 of title 10, United States Code, is amended by inserting 
after section 1094 the following new section:
``Sec. 1094a. Continuing medical education requirements: system for 
              monitoring physician compliance
    ``The Secretary of Defense shall establish a mechanism for ensuring 
that each person under the jurisdiction of the Secretary of a military 
department who provides health care under this chapter as a physician 
satisfies the continuing medical education requirements applicable to 
the physician.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``1094a. Continuing medical education requirements: system for 
                            monitoring physician compliance.''.
    (c) Effective Dates.--(1) The amendment made by subsection (a) 
shall take effect on October 1, 1998.
    (2) The system required by section 1094a of title 10, United States 
Code (as added by subsection (b)), shall take effect on the date that 
is three years after the date of the enactment of this Act.

SEC. 709. ASSESSMENT OF ESTABLISHMENT OF INDEPENDENT ENTITY TO EVALUATE 
              POST-CONFLICT ILLNESSES AMONG MEMBERS OF THE ARMED FORCES 
              AND HEALTH CARE PROVIDED BY THE DEPARTMENT OF DEFENSE AND 
              DEPARTMENT OF VETERANS AFFAIRS BEFORE AND AFTER 
              DEPLOYMENT OF SUCH MEMBERS.

    (a) Agreement for Assessment.--The Secretary of Defense shall seek 
to enter into an agreement with the National Academy of Sciences, or 
other appropriate independent organization, under which agreement the 
Academy shall carry out the assessment referred to in subsection (b).
    (b) Assessment.--(1) Under the agreement, the Academy shall assess 
the need for and feasibility of establishing an independent entity to--
            (A) evaluate and monitor interagency coordination on issues 
        relating to the post-deployment health concerns of members of 
        the Armed Forces, including coordination relating to outreach 
        and risk communication, recordkeeping, research, utilization of 
        new technologies, international cooperation and research, 
        health surveillance, and other health-related activities;
            (B) evaluate the health care (including preventive care and 
        responsive care) provided to members of the Armed Forces both 
        before and after their deployment on military operations;
            (C) monitor and direct government efforts to evaluate the 
        health of members of the Armed Forces upon their return from 
        deployment on military operations for purposes of ensuring the 
        rapid identification of any trends in diseases or injuries 
        among such members as a result of such operations;
            (D) provide and direct the provision of ongoing training of 
        health care personnel of the Department of Defense and the 
        Department of Veterans Affairs in the evaluation and treatment 
        of post-deployment diseases and health conditions, including 
        nonspecific and unexplained illnesses; and
            (E) make recommendations to the Department of Defense and 
        the Department of Veterans Affairs regarding improvements in 
        the provision of health care referred to in subparagraph (B), 
        including improvements in the monitoring and treatment of 
        members referred to in that subparagraph.
    (2) The assessment shall cover the health care provided by the 
Department of Defense and, where applicable, by the Department of 
Veterans Affairs.
    (c) Report.--(1) The agreement shall require the Academy to submit 
to the committees referred to in paragraph (3) a report on the results 
of the assessment under this section not later than one year after the 
date of enactment of this Act.
    (2) The report shall include the following:
            (A) The recommendation of the Academy as to the need for 
        and feasibility of establishing an independent entity as 
        described in subsection (b) and a justification of such 
        recommendation.
            (B) If the Academy recommends that an entity be 
        established, the recommendations of the Academy as to--
                    (i) the organizational placement of the entity;
                    (ii) the personnel and other resources to be 
                allocated to the entity;
                    (iii) the scope and nature of the activities and 
                responsibilities of the entity; and
                    (iv) mechanisms for ensuring that any 
                recommendations of the entity are carried out by the 
                Department of Defense and the Department of Veterans 
                Affairs.
    (3) The report shall be submitted to the following:
            (A) The Committee on Armed Services and the Committee on 
        Veterans' Affairs of the Senate.
            (B) The Committee on National Security and the Committee on 
        Veterans' Affairs of the House of Representatives.

SEC. 710. LYME DISEASE.

    Of the amounts authorized to be appropriated by this Act for 
Defense Health Programs, $3,000,000 shall be available for research and 
surveillance activities relating to Lyme disease and other tick-borne 
diseases.

SEC. 711. ACCESSIBILITY TO CARE UNDER TRICARE.

    (a) Rehabilitative Services for Head Injuries.--The Secretary of 
Defense shall revise the TRICARE policy manual to clarify that 
rehabilitative services are available to a patient for a head injury 
when the treating physician certifies that such services would be 
beneficial for the patient and there is potential for the patient to 
recover from the injury.
    (b) Review of Adequacy of Provider Network.--The Secretary of 
Defense shall review the administration of the TRICARE Prime health 
plans to determine whether, for the region covered by each such plan, 
there is a sufficient number, distribution, and variety of qualified 
participating health care providers to ensure that all covered health 
care services, including specialty services, are available and 
accessible in a timely manner to all persons covered by the plan. If 
the Secretary determines during the review that, in the region, there 
is an inadequate network of providers to provide the covered benefits 
in proximity to the permanent duty stations of covered members of the 
uniformed services in the region, or in proximity to the residences of 
other persons covered by the plan in the region, the Secretary shall 
take such actions as are necessary to ensure that the TRICARE Prime 
plan network of providers in the region is adequate to provide for all 
covered benefits to be available and accessible in a timely manner to 
all persons covered by the plan.

SEC. 712. HEALTH BENEFITS FOR ABUSED DEPENDENTS OF MEMBERS OF THE ARMED 
              FORCES.

    Paragraph (1) of section 1076(e) of title 10, United States Code, 
is amended to read as follows:
            ``(1) The administering Secretary shall furnish an abused 
        dependent of a former member of a uniformed service described 
        in paragraph (4), during that period that the abused dependent 
        is in receipt of transitional compensation under section 1059 
        of this title, with medical and dental care, including mental 
        health services, in facilities of the uniformed services in 
        accordance with the same eligibility and benefits as were 
        applicable for that abused dependent during the period of 
        active service of the former member.''.

SEC. 713. PROCESS FOR WAIVING INFORMED CONSENT REQUIREMENT FOR 
              ADMINISTRATION OF CERTAIN DRUGS TO MEMBERS OF ARMED 
              FORCES.

    (a) Limitation and Waiver.--(1) Section 1107 of title 10, United 
States Code, is amended--
            (A) by redesignating subsection (f) as subsection (g); and
            (B) by inserting after subsection (e) the following new 
        subsection (f):
    ``(f) Limitation and Waiver.--(1) An investigational new drug or a 
drug unapproved for its applied use may not be administered to a member 
of the armed forces pursuant to a request or requirement referred to in 
subsection (a) unless--
            ``(A) the member provides prior consent to receive the drug 
        in accordance with the requirements imposed under the 
        regulations required under paragraph (4) of section 505(i) of 
        the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 355(i)); or
            ``(B) the Secretary obtains--
                    ``(i) under such section a waiver of such 
                requirements; and
                    ``(ii) a written statement that the President 
                concurs in the determination of the Secretary required 
                under paragraph (2) and with the Secretary's request 
                for the waiver.
    ``(2) The Secretary of Defense may request a waiver referred to in 
paragraph (1)(B) in the case of any request or requirement to 
administer a drug under this section if the Secretary determines that 
obtaining consent is not feasible, is contrary to the best interests of 
the members involved, or is not in the best interests of national 
security. Only the Secretary may exercise the authority to make the 
request for the Department of Defense, and the Secretary may not 
delegate that authority.
    ``(3) The Secretary shall submit to the chairman and ranking 
minority member of each congressional defense committee a notification 
of each waiver granted pursuant to a request of the Secretary under 
paragraph (2), together with the concurrence of the President under 
paragraph (1)(B) that relates to the waiver and the justification for 
the request or requirement under subsection (a) for a member to receive 
the drug covered by the waiver.
    ``(4) In this subsection, the term `congressional defense 
committee' means each of the following:
            ``(A) The Committee on Armed Services and the Committee on 
        Appropriations of the Senate.
            ``(B) The Committee on National Security and the Committee 
        on Appropriations of the House of Representatives.''.
    (2) The requirements for a concurrence of the President and a 
notification of committees of Congress that are set forth in section 
1107(f) of title 10, United States Code (as added by paragraph (1)(B)) 
shall apply with respect to--
            (A) each waiver of the requirement for prior consent 
        imposed under the regulations required under paragraph (4) of 
        section 505(i) of the Federal Food, Drug, and Cosmetic Act (or 
        under any antecedent provision of law or regulations) that--
                    (i) has been granted under that section (or 
                antecedent provision of law or regulations) before the 
                date of the enactment of this Act; and
                    (ii) is applied after that date; and
            (B) each waiver of such requirement that is granted on or 
        after that date.
    (b) Time and Form of Notice.--(1) Subsection (b) of such section is 
amended by striking out ``, if practicable'' and all that follows 
through ``first administered to the member''.
    (2) Subsection (c) of such section is amended by striking out 
``unless the Secretary of Defense determines'' and all that follows 
through ``alternative method''.

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

SEC. 801. PARA-ARAMID FIBERS AND YARNS.

    (a) Authorized Sources.--Chapter 141 of title 10, United States 
Code is amended by adding at the end the following:
``Sec. 2410n. Foreign manufactured para-aramid fibers and yarns: 
              procurement
    ``(a) Authority.--The Secretary of Defense may procure articles 
containing para-aramid fibers and yarns manufactured in a foreign 
country referred to in subsection (b).
    ``(b) Foreign Countries Covered.--The authority under subsection 
(a) applies with respect to a foreign country that--
            ``(1) is a party to a defense memorandum of understanding 
        entered into under section 2531 of this title; and
            ``(2) permits United States firms that manufacture para-
        aramid fibers and yarns to compete with foreign firms for the 
        sale of para-aramid fibers and yarns in that country, as 
        determined by the Secretary of Defense.
    ``(c) Applicability to Subcontracts.--The authority under 
subsection (a) applies with respect to subcontracts under Department of 
Defense contracts as well as to such contracts.
    ``(d) Definitions.--In this section, the terms `United States firm' 
and `foreign firm' have the meanings given such terms in section 
2532(d) of this title.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following:

``2410n. Foreign manufactured para-aramid fibers and yarns: 
                            procurement.''.

SEC. 802. PROCUREMENT OF TRAVEL SERVICES FOR OFFICIAL AND UNOFFICIAL 
              TRAVEL UNDER ONE CONTRACT.

    (a) Authority.--Chapter 147 of title 10, United States Code, is 
amended by inserting after section 2490a the following new section:
``Sec. 2490b. Travel services: procurement for official and unofficial 
              travel under one contract
    ``(a) Authority.--The head of an agency may enter into a contract 
for travel-related services that provides for the contractor to furnish 
services for both official travel and unofficial travel.
    ``(b) Credits, Discounts, Commissions, Fees.--(1) A contract 
entered into under this section may provide for credits, discounts, or 
commissions or other fees to accrue to the Department of Defense. The 
accrual and amounts of credits, discounts, or commissions or other fees 
may be determined on the basis of the volume (measured in the number or 
total amount of transactions or otherwise) of the travel-related sales 
that are made by the contractor under the contract.
    ``(2) The evaluation factors applicable to offers for a contract 
under this section may include a factor that relates to the estimated 
aggregate value of any credits, discounts, commissions, or other fees 
that would accrue to the Department of Defense for the travel-related 
sales made under the contract.
    ``(3) Commissions or fees received by the Department of Defense as 
a result of travel-related sales made under a contract entered into 
under this section shall be distributed as follows:
            ``(A) For amounts relating to sales for official travel, 
        credit to appropriations available for official travel for the 
        fiscal year in which the amounts were charged.
            ``(B) For amounts relating to sales for unofficial travel, 
        deposit in nonappropriated fund accounts available for morale, 
        welfare, and recreation programs.
    ``(c) Definitions.--In this section:
            ``(1) The term `head of an agency' has the meaning given 
        that term in section 2302(1) of this title.
            ``(2) The term `official travel' means travel at the 
        expense of the Federal Government.
            ``(3) The term `unofficial travel' means personal travel or 
        other travel that is not paid for or reimbursed by the Federal 
        Government out of appropriated funds.
    ``(d) Inapplicability to Coast Guard and NASA.--This section does 
not apply to the Coast Guard when it is not operating as a service in 
the Navy, nor to the National Aeronautics and Space Administration.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following:

``2490b. Travel services: procurement for official and unofficial 
                            travel under one contract.''.

SEC. 803. LIMITATION ON USE OF PRICE PREFERENCE UPON ATTAINMENT OF 
              CONTRACT GOAL FOR SMALL AND DISADVANTAGED BUSINESSES.

    Section 2323(e)(3) of title 10, United States Code, is amended--
            (1) by inserting ``(A)'' after ``(3)'';
            (2) by inserting ``, except as provided in (B),'' after 
        ``the head of an agency may'' in the first sentence; and
            (3) by adding at the end the following:
    ``(B) The head of an agency may not exercise the authority under 
subparagraph (A) to enter into a contract for a price exceeding fair 
market cost in the fiscal year following a fiscal year in which the 
Department of Defense attained the 5 percent goal required by 
subsection (a).''.

SEC. 804. DISTRIBUTION OF ASSISTANCE UNDER THE PROCUREMENT TECHNICAL 
              ASSISTANCE COOPERATIVE AGREEMENT PROGRAM.

    (a) Correction of Description of Geographic Unit.--Section 2413(c) 
of title 10, United States Code, is amended by striking out ``region'' 
and inserting in lieu thereof ``district''.
    (b) Allocation of Funds.--(1) Section 2415 of title 10, United 
States Code, is repealed.
    (2) The table of sections at the beginning of chapter 142 of such 
title is amended by striking the item relating to section 2415.

SEC. 805. DEFENSE COMMERCIAL PRICING MANAGEMENT IMPROVEMENT.

    (a) Short Title.--This section may be cited as the ``Defense 
Commercial Pricing Management Improvement Act of 1998''.
    (b) Commercial Items Exempt From Cost or Pricing Data Certification 
Requirements.--For the purposes of this section, the term ``exempt 
item'' means a commercial item that is exempt under subsection 
(b)(1)(B) of section 2306a of title 10, United States Code, or 
subsection (b)(1)(B) of section 304A of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 254b), from the 
requirements for submission of certified cost or pricing data under 
that section.
    (c) Commercial Pricing Regulations.--(1) The Federal Acquisition 
Regulation issued in accordance with sections 6 and 25 of the Office of 
Federal Procurement Policy Act shall be revised to clarify the 
procedures and methods to be used for determining the reasonableness of 
prices of exempt items.
    (2) The regulations shall, at a minimum, provide specific guidance 
on--
            (A) the appropriate application and precedence of such 
        price analysis tools as catalog-based pricing, market-based 
        pricing, historical pricing, parametric pricing, and value 
        analysis;
            (B) the circumstances under which contracting officers 
        should require offerors of exempt items to provide--
                    (i) uncertified cost or pricing data; or
                    (ii) information on prices at which the offeror has 
                previously sold the same or similar items;
            (C) the role and responsibility of Department of Defense 
        support organizations, such as the Defense Contract Audit 
        Agency, in procedures for determining price reasonableness; and
            (D) the meaning and appropriate application of the term 
        ``purposes other than governmental purposes'' in section 4(12) 
        of the Office of Federal Procurement Policy Act (41 U.S.C. 
        403(12)).
    (3) This subsection shall cease to be effective one year after the 
date on which final regulations prescribed pursuant to paragraph (1) 
take effect.
    (d) Unified Management of Procurement of Exempt Commercial Items.--
The Secretary of Defense shall develop and implement procedures to 
ensure that, to the maximum extent that is practicable and consistent 
with the efficient operation of the Department of Defense, a single 
item manager or contracting officer is responsible for negotiating and 
entering into all contracts for the procurement of exempt items from a 
single contractor.
    (e) Commercial Price Trend Analysis.--(1) The Secretary of Defense 
shall develop and implement procedures that, to the maximum extent that 
is practicable and consistent with the efficient operation of the 
Department of Defense, provide for the collection and analysis of 
information on price trends for categories of exempt items described in 
paragraph (2).
    (2) A category of exempt items referred to in paragraph (1) 
consists of exempt items--
            (A) that are in a single Federal Supply Group or Federal 
        Supply Class, are provided by a single contractor, or are 
        otherwise logically grouped for the purpose of analyzing 
        information on price trends; and
            (B) for which there is a potential for the price paid to be 
        significantly higher (on a percentage basis) than the prices 
        previously paid in procurements of the same or similar items 
        for the Department of Defense, as determined by the head of the 
        procuring Department of Defense agency or the Secretary of the 
        procuring military department on the basis of criteria 
        prescribed by the Secretary of Defense.
    (3) The head of a Department of Defense agency or the Secretary of 
a military department shall take appropriate action to address any 
unreasonable escalation in prices being paid for items procured by that 
agency or military department as identified in an analysis conducted 
pursuant to paragraph (1).
    (4)(A) Not later than 180 days after the date of the enactment of 
this Act, the Under Secretary of Defense for Acquisition and Technology 
shall submit to the congressional defense committees a report 
describing the procedures prescribed under paragraph (1), including a 
description of the criteria established for the selection of categories 
of exempt items for price trend analysis.
    (B) Not later than April 1 of each of fiscal years 2000, 2001, and 
2002, the Under Secretary of Defense for Acquisition and Technology 
shall submit to the congressional defense committees a report on the 
analyses of price trends that were conducted for categories of exempt 
items during the preceding fiscal year under the procedures prescribed 
pursuant to paragraph (1). The report shall include a description of 
the actions taken to identify and address any unreasonable price 
escalation for the categories of items.
    (f) Secretary of Defense To Act Through Under Secretary of Defense 
for Acquisition and Technology.--The Secretary of Defense shall act 
through the Under Secretary of Defense for Acquisition and Technology 
to carry out subsections (d) and (e).

SEC. 806. DEPARTMENT OF DEFENSE PURCHASES THROUGH OTHER AGENCIES.

    (a) Extension of Regulations.--Not later than three months after 
the date of the enactment of this Act, the Secretary of Defense shall 
revise the regulations issued pursuant to section 844 of the National 
Defense Authorization Act for Fiscal Year 1994 (Public Law 103-160; 107 
Stat. 1720; 31 U.S.C. 1535 note) to cover all purchases of goods and 
services by the Department of Defense under contracts entered into or 
administered by any other agency pursuant to the authority of section 
2304a of title 10, United States Code, or section 303H of the Federal 
Property and Administrative Services Act (41 U.S.C. 253h).
    (b) Termination.--This section shall cease to be effective 1 year 
after the date on which final regulations prescribed pursuant to 
subsection (a) take effect.

SEC. 807. SUPERVISION OF DEFENSE ACQUISITION UNIVERSITY STRUCTURE BY 
              UNDER SECRETARY OF DEFENSE FOR ACQUISITION AND 
              TECHNOLOGY.

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

SEC. 808. REPEAL OF REQUIREMENT FOR DIRECTOR OF ACQUISITION EDUCATION, 
              TRAINING, AND CAREER DEVELOPMENT TO BE WITHIN THE OFFICE 
              OF THE UNDER SECRETARY OF DEFENSE FOR ACQUISITION AND 
              TECHNOLOGY.

    Section 1703 of title 10, United States Code, is amended by 
striking out ``within the office of the Under Secretary''.

SEC. 809. ELIGIBILITY OF INVOLUNTARILY DOWNGRADED EMPLOYEE FOR 
              MEMBERSHIP IN AN ACQUISITION CORPS.

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

SEC. 810. PILOT PROGRAMS FOR TESTING PROGRAM MANAGER PERFORMANCE OF 
              PRODUCT SUPPORT OVERSIGHT RESPONSIBILITIES FOR LIFE CYCLE 
              OF ACQUISITION PROGRAMS.

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

SEC. 811. SCOPE OF PROTECTION OF CERTAIN INFORMATION FROM DISCLOSURE.

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

SEC. 812. PLAN FOR RAPID TRANSITION FROM COMPLETION OF SMALL BUSINESS 
              INNOVATION RESEARCH INTO DEFENSE ACQUISITION PROGRAMS.

    (a) Plan Required.--Not later than February 1, 1999, the Secretary 
of Defense shall submit to the Committee on Armed Services of the 
Senate and the Committee on National Security of the House of 
Representatives a plan for facilitating the rapid transition into 
Department of Defense acquisition programs of successful first phase 
and second phase activities under the Small Business Innovation 
Research program under section 9 of the Small Business Act (15 U.S.C. 
638).
    (b) Conditions.--The plan submitted under subsection (a) shall--
            (1) be consistent with the Small Business Innovation 
        Research program and with recent acquisition reforms that are 
        applicable to the Department of Defense; and
            (2) provide--
                    (A) a high priority for funding the projects under 
                the Small Business Innovation Research program that are 
                likely to be successful under a third phase agreement 
                entered into pursuant to section 9(r) of the Small 
                Business Act (15 U.S.C. 638(r)); and
                    (B) for favorable consideration, in the acquisition 
                planning process, for funding projects under the Small 
                Business Innovation Research program that are subject 
                to a third phase agreement described in subparagraph 
                (A).

SEC. 813. SENIOR EXECUTIVES COVERED BY LIMITATION ON ALLOWABILITY OF 
              COMPENSATION FOR CERTAIN CONTRACTOR PERSONNEL.

    (a) Defense Contracts.--Section 2324(l)(5) of title 10, United 
States Code, is amended to read as follows:
            ``(5) The term `senior executive', with respect to a 
        contractor, means the five most highly compensated employees in 
        management positions at each home office and segment of the 
        contractor.''.
    (b) Non-Defense Contracts.--Section 306(m)(2) of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 256(m)(2)) 
is amended to read as follows:
            ``(2) The term `senior executive', with respect to a 
        contractor, means the five most highly compensated employees in 
        management positions at each home office and segment of the 
        contractor.''.
    (c) Conforming Amendment.--Section 39(c)(2) of the Office of 
Federal Procurement Policy Act (41 U.S.C. 435(c)(2)) is amended to read 
as follows:
            ``(2) The term `senior executive', with respect to a 
        contractor, means the five most highly compensated employees in 
        management positions at each home office and segment of the 
        contractor.''.

SEC. 814. SEPARATE DETERMINATIONS OF EXCEPTIONAL WAIVERS OF TRUTH IN 
              NEGOTIATION REQUIREMENTS FOR PRIME CONTRACTS AND 
              SUBCONTRACTS.

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

SEC. 815. FIVE-YEAR AUTHORITY FOR SECRETARY OF THE NAVY TO EXCHANGE 
              CERTAIN ITEMS.

    (a) Barter Authority.--The Secretary of the Navy may enter into a 
barter agreement to exchange trucks and other tactical vehicles for the 
repair and remanufacture of ribbon bridges for the Marine Corps in 
accordance with section 201(c) of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 481(c)), except that the 
requirement for items exchanged under that section to be similar items 
shall not apply to the authority under this subsection.
    (b) Period of Authority.--The authority to enter into agreements 
under subsection (a) and to make exchanges under any such agreement is 
effective during the 5-year period beginning on October 1, 1998, and 
ending at the end of September 30, 2003.

SEC. 816. CLARIFICATION OF RESPONSIBILITY FOR SUBMISSION OF INFORMATION 
              ON PRICES PREVIOUSLY CHARGED FOR PROPERTY OR SERVICES 
              OFFERED.

    (a) Armed Services Procurements.--Section 2306a(d)(1) of title 10, 
United States Code is amended--
            (1) by striking out ``the data submitted shall'' in the 
        second sentence and inserting in lieu thereof the following: 
        ``the contracting officer shall require that the data 
        submitted''; and
            (2) by adding at the end the following: ``Submission of 
        data required of an offeror under the preceding sentence in the 
        case of a contract or subcontract shall be a condition for the 
        eligibility of the offeror to enter into the contract or 
        subcontract.''.
    (b) Civilian Agency Procurements.--Section 304A(d)(1) of the 
Federal Property and Administrative Services Act of 1949 (41 U.S.C. 
254b(d)(1)), is amended--
            (1) by striking out ``the data submitted shall'' in the 
        second sentence and inserting in lieu thereof the following: 
        ``the contracting officer shall require that the data 
        submitted''; and
            (2) by adding at the end the following: ``Submission of 
        data required of an offeror under the preceding sentence in the 
        case of a contract or subcontract shall be a condition for the 
        eligibility of the offeror to enter into the contract or 
        subcontract.''.
    (c) Criteria for Certain Determinations.--Not later than 180 days 
after the date of the enactment of this Act, the Federal Acquisition 
Regulation shall be amended to include criteria for contracting 
officers to apply for determining the specific price information that 
an offeror should be required to submit under section 2306(d) of title 
10, United States Code, or section 304A(d) of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 254b(d)).

SEC. 817. DENIAL OF QUALIFICATION OF A SMALL DISADVANTAGED BUSINESS 
              SUPPLIER.

    (a) No later than December 1, 1998, the Secretary shall submit to 
the Congress a report recommending alternative means through which a 
refiner that qualifies as a small disadvantaged business and that 
delivers fuel by barge to Defense Energy Supply Point-Anchorage under a 
contract with the Defense Energy Supply Center can--
            (1) fulfill its contractual obligations,
            (2) maintain its status as a small disadvantaged business, 
        and
            (3) receive the small disadvantaged business premium for 
        the total amount of fuel under the contract,
when ice conditions in Cook Inlet threaten physical delivery of such 
fuel.
    (b) Any inability by such refiner to satisfy its contractual 
obligations to the Defense Energy Supply Center for the delivery of 
fuel to Defense Energy Supply Point-Anchorage may not be used as a 
basis for the denial of such refiner's small disadvantaged business 
status or small disadvantaged business premium for the total amount of 
fuel under the contract, where such inability is a result of ice 
conditions, as determined by the United States Coast Guard, in Cook 
Inlet through February 1999, and if the Secretary of Defense determines 
that such inability will result in an inequity to the refiner.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

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

    (a) Nine Positions.--Section 138(a) of title 10, United States 
Code, is amended by striking out ``ten'' and insert in lieu thereof 
``nine''.
    (b) Conforming Amendment.--The item relating to the Assistant 
Secretaries of Defense in section 5315 of title 5, United States Code, 
is amended to read as follows:
            ``Assistant Secretaries of Defense (9).''.

SEC. 902. RENAMING OF POSITION OF ASSISTANT SECRETARY OF DEFENSE FOR 
              COMMAND, CONTROL, COMMUNICATIONS, AND INTELLIGENCE.

    Section 138(b)(3) of title 10, United States Code is amended to 
read as follows:
    ``(3) One of the Assistant Secretaries shall be the Assistant 
Secretary of Defense for Space and Information Superiority. The 
Assistant Secretary--
            ``(A) shall have as his principal duty the overall 
        supervision of the functions of the Department of Defense that 
        relate to space, intelligence, information security, 
        information operations, command, control, communications, 
        computers, surveillance, reconnaissance, and electromagnetic 
        spectrum; and
            ``(B) shall be the Chief Information Officer of the 
        Department of Defense.''.

SEC. 903. AUTHORITY TO EXPAND THE NATIONAL DEFENSE UNIVERSITY.

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

SEC. 904. REDUCTION IN DEPARTMENT OF DEFENSE HEADQUARTERS STAFF.

    (a) Reduction Required.--(1) The Secretary of Defense shall reduce 
the number of Federal Government employees and members of the Armed 
Forces on the headquarters staffs of Department of Defense 
organizations in accordance with this section. The Secretary shall 
achieve the required reductions not later than September 30, 2003.
    (2) The total number of Federal Government employees and members of 
the Armed Forces on the headquarters staffs of all organizations within 
a category of organizations described in paragraph (4) shall be reduced 
below the baseline number for the category by the percentage specified 
for the category in that paragraph. In the administration of this 
section, the number of employees employed on a basis other than a full 
time basis shall be converted to, and expressed as, the equivalent 
number of full time employees.
    (3) For the purposes of this subsection, the baseline number for 
the organizations in a category is the total number of Federal 
Government employees and members of the Armed Forces on the 
headquarters staffs of those organizations on October 1, 1996.
    (4) The categories of organizations, and the percentages applicable 
under paragraph (1) to the organizations in such categories, are as 
follows:
            (A) The Office of the Secretary of Defense and associated 
        activities, a reduction of 33 percent.
            (B) Defense agencies, a reduction of 21 percent.
            (C) Department of Defense field activities and other 
        operating organizations reporting to the Office of the 
        Secretary of Defense, a reduction of 36 percent.
            (D) The Joint Staff and associated activities, a reduction 
        of 29 percent.
            (E) The headquarters of the combatant commands and 
        associated activities, a reduction of 7 percent.
            (F) Other headquarters elements (including the headquarters 
        of the military departments and their major commands) and 
        associated activities, a reduction of 29 percent.
    (b) Limited Relief From Prohibition on Managing by End-Strength.--
(1) The Secretary may waive the requirements and restrictions of 
section 129 of title 10, United States Code, for an organization or 
activity covered by subsection (a) to the extent that the Secretary 
determines necessary to achieve the personnel reductions required by 
that subsection.
    (2) Not later than 30 days after exercising the waiver authority 
under paragraph (1) in the case of an organization or activity, the 
Secretary shall notify the congressional defense committees of the 
scope and duration of the waiver and the reasons for granting the 
waiver.
    (c) Management by Budget.--(1) The Secretary shall waive the 
requirement under subsection (a) to reduce the number of personnel on 
the headquarters staff of an organization or activity if the Secretary 
determines that the budget authority available for the organization or 
activity for fiscal year 2003 has been reduced below the budget 
authority available for the organization or activity for fiscal year 
1996 by at least the percentage equal to one-fifth of the percentage 
specified in subsection (a)(4) for the category of the organization or 
activity.
    (2) In this subsection, the term ``budget authority'' has the 
meaning given that term in section 3(2)(A) of the Congressional Budget 
Act of 1974 (2 U.S.C. 622(2)(A)).
    (d) Joint and Defense-Wide Activities.--If the Secretary 
consolidates functions in a Department of Defense-wide or joint 
organization or activity described in subparagraph (A), (B), (C), (D), 
or (E) of subsection (a)(4) in order to meet the requirement for 
reduction in the personnel of the other headquarters (including the 
headquarters of the military departments and their major commands) 
referred to in subparagraph (F) of such subsection, the Secretary may 
apply to that organization or activity, instead of the percentage that 
would otherwise apply under such subsection, a lesser percentage that 
is appropriate to reflect the increased responsibilities of the 
organization or activity.
    (e) Report.--Not later than March 1, 1999, the Secretary of Defense 
shall submit to the congressional defense committees a report 
containing a plan to implement the personnel reductions required by 
this section.
    (f) Categories Defined.--In this section:
            (1) The term ``Office of the Secretary of Defense and 
        associated activities'' means the following organizations and 
        activities:
                    (A) The Office of the Secretary of Defense, as 
                defined in section 131 of title 10, United States Code.
                    (B) The defense support activities that perform 
                technical and analytical support for the Office of the 
                Secretary of Defense.
            (2) The term ``defense agencies'' means the following 
        organizations and activities:
                    (A) The Ballistic Missile Defense Organization.
                    (B) The Defense Advanced Research Projects Agency.
                    (C) The Defense Commissary Agency.
                    (D) The Defense Contract Audit Agency.
                    (E) The Defense Finance and Accounting Services.
                    (F) The Defense Information Systems Agency.
                    (G) The Defense Legal Services Agency.
                    (H) The Defense Logistics Agency.
                    (I) The Defense Security Assistance Agency.
                    (J) The Defense Security Service.
                    (K) The Defense Special Weapons Agency.
                    (L) The On-Site Inspection Agency.
                    (M) The Treaty Compliance and Threat Reduction 
                Agency.
            (3) The term ``Department of Defense field activities and 
        other operating organizations reporting to the Office of the 
        Secretary of Defense'' means the following organizations and 
        activities:
                    (A) The American Forces Information Service.
                    (B) The TRICARE Support Office.
                    (C) The Office of Economic Adjustment.
                    (D) The Department of Defense Education Activity.
                    (E) Washington Headquarters Services.
                    (F) The Department of Defense Human Resources 
                Activity.
                    (G) The Defense Prisoner of War/Missing Personnel 
                Office.
                    (H) The Defense Medical Programs Activity.
                    (I) The Defense Technology Security Administration.
                    (J) The C4I Support Activity.
                    (K) The Plans and Program Analysis Support Center.
                    (L) The Defense Airborne Reconnaissance Office.
                    (M) The Defense Acquisition University.
                    (N) The Director of Military Support.
                    (O) The Defense Technical Information Center.
                    (P) The National Defense University.
            (4) The term ``Joint Staff and associated activities'' 
        means the following organizations and activities:
                    (A) The Joint Staff referred to in section 155 of 
                title 10, United States Code.
                    (B) Department of Defense activities that are 
                controlled by the Chairman of the Joint Chiefs of Staff 
                and report directly to the Joint Staff.
            (5) The term ``headquarters of the combatant commands'' 
        means the headquarters of the combatant commands, as defined in 
        section 161(c)(3) of title 10, United States Code.
            (6) The term ``other headquarters elements (including the 
        headquarters of the military departments and their major 
        commands)'' means the following organizations and activities:
                    (A) The military department headquarters listed and 
                defined in Department of Defense Directive 5100.73, 
                ``Department of Defense Management Headquarters and 
                Headquarters Support Activities'', as in effect on 
                November 12, 1996.
                    (B) Other military headquarters elements defined in 
                such directive that are not otherwise covered by 
                paragraphs (1), (2), (3), (4), and (5).
    (g) Repeal of Superseded Provisions.--(1) Sections 130a and 194 of 
title 10, United States Code, are repealed.
    (2)(A) The table of sections at the beginning of chapter 3 of such 
title is amended by striking out the item relating to section 130a.
    (B) The table of sections at the beginning of chapter 8 of such 
title is amended by striking out the item relating to section 194.

SEC. 905. PERMANENT REQUIREMENT FOR QUADRENNIAL DEFENSE REVIEW.

    (a) Review Required.--Chapter 2 of title 10, United States Code, is 
amended by inserting after section 116 the following:
``Sec. 117. Quadrennial defense review
    ``(a) Review Required.--The Secretary of Defense, in consultation 
with the Chairman of the Joint Chiefs of Staff, shall conduct in each 
year in which a President is inaugurated a comprehensive examination of 
the defense strategy, force structure, force modernization plans, 
infrastructure, budget plan, and other elements of the defense program 
and policies with a view toward determining and expressing the defense 
strategy of the United States and establishing a revised defense plan 
for the ensuing 10 years and a revised defense plan for the ensuing 20 
years.
    ``(b) Consideration of Reports of National Defense Panel.--In 
conducting the review, the Secretary shall take into consideration the 
reports of the National Defense Panel submitted under section 181(d) of 
this title.
    ``(c) Report to Congress.--The Secretary shall submit a report on 
each review to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives not 
later than September 30 of the year in which the review is conducted. 
The report shall include the following:
            ``(1) The results of the review, including a comprehensive 
        discussion of the defense strategy of the United States and the 
        force structure best suited to implement that strategy.
            ``(2) The threats examined for purposes of the review and 
        the scenarios developed in the examination of such threats.
            ``(3) The assumptions used in the review, including 
        assumptions relating to the cooperation of allies and mission-
        sharing, levels of acceptable risk, warning times, and 
        intensity and duration of conflict.
            ``(4) The effect on the force structure of preparations for 
        and participation in peace operations and military operations 
        other than war.
            ``(5) The effect on the force structure of the utilization 
        by the Armed Forces of technologies anticipated to be available 
        for the ensuing 10 years and technologies anticipated to be 
        available for the ensuing 20 years, including precision guided 
        munitions, stealth, night vision, digitization, and 
        communications, and the changes in doctrine and operational 
        concepts that would result from the utilization of such 
        technologies.
            ``(6) The manpower and sustainment policies required under 
        the defense strategy to support engagement in conflicts lasting 
        more than 120 days.
            ``(7) The anticipated roles and missions of the reserve 
        components in the defense strategy and the strength, 
        capabilities, and equipment necessary to assure that the 
        reserve components can capably discharge those roles and 
        missions.
            ``(8) The appropriate ratio of combat forces to support 
        forces (commonly referred to as the ``tooth-to-tail'' ratio) 
        under the defense strategy, including, in particular, the 
        appropriate number and size of headquarter units and Defense 
        Agencies for that purpose.
            ``(9) The air-lift and sea-lift capabilities required to 
        support the defense strategy.
            ``(10) The forward presence, pre-positioning, and other 
        anticipatory deployments necessary under the defense strategy 
        for conflict deterrence and adequate military response to 
        anticipated conflicts.
            ``(11) The extent to which resources must be shifted among 
        two or more theaters under the defense strategy in the event of 
        conflict in such theaters.
            ``(12) The advisability of revisions to the Unified Command 
        Plan as a result of the defense strategy.
            ``(13) Any other matter the Secretary considers 
        appropriate.''.
    (b) National Defense Panel.--Chapter 7 of such title is amended by 
adding at the end the following:
``Sec. 181. National Defense Panel
    ``(a) Establishment.--Not later than January 1 of each year 
immediately preceding a year in which a President is to be inaugurated, 
the Secretary of Defense shall establish a nonpartisan, independent 
panel to be known as the National Defense Panel. The Panel shall have 
the duties set forth in this section.
    ``(b) Membership.--The Panel shall be composed of a chairman and 
eight other individuals appointed by the Secretary, in consultation 
with the chairman and ranking member of the Committee on Armed Services 
of the Senate and the chairman and ranking member of the Committee on 
National Security of the House of Representatives, from among 
individuals in the private sector who are recognized experts in matters 
relating to the national security of the United States.
    ``(c) Duties.--The Panel shall--
            ``(1) conduct and submit to the Secretary of Defense and to 
        the Committee on Armed Services of the Senate and the Committee 
        on National Security of the House of Representatives a 
        comprehensive assessment of the defense strategy, force 
        structure, force modernization plans, infrastructure, budget 
        plan, and other elements of the defense program and policies 
        with a view toward recommending a defense strategy of the 
        United States and a revised defense plan for the ensuing 10 
        years and a revised defense plan for the ensuing 20 years; and
            ``(2) identify issues that the Panel recommends for 
        assessment during the next review to be conducted under section 
        117 of this title.
    ``(d) Report.--(1) The Panel, in the year that it is conducting an 
assessment under subsection (c), shall submit to the Secretary of 
Defense and to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives two 
reports on its activities and the findings and recommendations of the 
Panel, including any recommendations for legislation that the Panel 
considers appropriate, as follows:
            ``(A) An interim report not later than July 1 of the year.
            ``(B) A final report not later than December 1 of the year.
    ``(2) Not later than December 15 of the year in which the Secretary 
receive a final report under paragraph (1)(B), the Secretary shall 
submit to the committees referred to in subsection (b) a copy of the 
report together with the Secretary's comments on the report.
    ``(e) Information From Federal Agencies.--The Panel may secure 
directly from the Department of Defense and any of its components and 
from any other Federal department and agency such information as the 
Panel considers necessary to carry out its duties under this section. 
The head of the department or agency concerned shall ensure that 
information requested by the Panel under this subsection is promptly 
provided.
    ``(f) Personnel Matters.--(1) Each member of the Panel shall be 
compensated at a rate equal to the daily equivalent of the annual rate 
of basic pay prescribed for level IV of the Executive Schedule under 
section 5315 of title 5 for each day (including travel time) during 
which the member is engaged in the performance of the duties of the 
Panel.
    ``(2) The members of the Panel shall be allowed travel expenses, 
including per diem in lieu of subsistence, at rates authorized for 
employees of agencies under subchapter I of chapter 57 of title 5 while 
away from their homes or regular places of business in the performance 
of services for the Panel.
    ``(3)(A) The chairman of the Panel may, without regard to the civil 
service laws and regulations, appoint and terminate an executive 
director and a staff if the Panel determines that an executive director 
and staff are necessary in order for the Panel to perform its duties 
effectively. The employment of an executive director shall be subject 
to confirmation by the Panel.
    ``(B) The chairman may fix the compensation of the executive 
director without regard to the provisions of chapter 51 and subchapter 
III of chapter 53 of title 5 relating to classification of positions 
and General Schedule pay rates, except that the rate of pay for the 
executive director may not exceed the rate payable for level V of the 
Executive Schedule under section 5316 of such title.
    ``(4) Any Federal Government employee may be detailed to the Panel 
without reimbursement of the employee's agency, and such detail shall 
be without interruption or loss of civil service status or privilege. 
The Secretary shall ensure that sufficient personnel are detailed to 
the Panel to enable the Panel to carry out its duties effectively.
    ``(5) To the maximum extent practicable, the members and employees 
of the Panel shall travel on military aircraft, military ships, 
military vehicles, or other military conveyances when travel is 
necessary in the performance of a duty of the Panel, except that no 
such aircraft, ship, vehicle, or other conveyance may be scheduled 
primarily for the transportation of any such member or employee when 
the cost of commercial transportation is less expensive.
    ``(g) Administrative Provisions.--(1) The Panel may use the United 
States mails and obtain printing and binding services in the same 
manner and under the same conditions as other departments and agencies 
of the Federal Government.
    ``(2) The Secretary shall furnish the Panel any administrative and 
support services requested by the Panel.
    ``(3) The Panel may accept, use, and dispose of gifts or donations 
of services or property.
    ``(h) Payment of Panel Expenses.--The compensation, travel 
expenses, and per diem allowances of members and employees of the Panel 
shall be paid out of funds available to the Department of Defense for 
the payment of compensation, travel allowances, and per diem 
allowances, respectively, of civilian employees of the Department. The 
other expenses of the Panel shall be paid out of funds available to the 
Department for the payment of similar expenses incurred by the 
Department.
    ``(i) Termination.--The Panel shall terminate at the end of the 
year following the year in which the Panel submits its final report 
under subsection (d)(1)(B). For the period that begins 90 days after 
the date of submittal of the report, the activities and staff of the 
panel shall be reduced to a level that the Secretary of Defense 
considers sufficient to continue the availability of the panel for 
consultation with the Secretary of Defense and with the Committee on 
Armed Services of the Senate and the Committee on National Security of 
the House of Representatives.''.
    (c) Clerical Amendments.--(1) The table of sections at the 
beginning of chapter 2 of title 10, United States Code, is amended by 
inserting after the item relating to section 116 the following:

``117. Quadrennial defense review.''.
    (2) The table of sections at the beginning of chapter 7 of such 
title is amended by adding at the end the following:

``181. National Defense Panel.''.
    (d) Continuation of 1997 National Defense Panel.--Section 924(j) of 
the Military Force Structure Review Act of 1996 (subtitle B of title IX 
of Public Law 104-201; 110 Stat. 2626; 10 U.S.C. 111 note) is amended 
to read as follows:
    ``(j) Termination.--The Panel shall continue until the first 
National Defense Panel is established under section 181(a) of title 10, 
United States Code, and shall then terminate. The activities and staff 
of the panel shall be reduced to a level that the Secretary of Defense 
considers sufficient to continue the availability of the panel for 
consultation with the Secretary of Defense and with the Committee on 
Armed Services of the Senate and the Committee on National Security of 
the House of Representatives.''.

SEC. 906. MANAGEMENT REFORM FOR RESEARCH, DEVELOPMENT, TEST, AND 
              EVALUATION.

    (a) Requirements for Analysis and Plan.--(1) The Secretary of 
Defense, acting through the Under Secretary of Defense for Acquisition 
and Technology, shall analyze the structures and processes of the 
Department of Defense for management of its laboratories and test and 
evaluation centers and, taking into consideration the analysis, develop 
a plan for improving the management of the laboratories and centers. 
The plan shall include the reorganizations and reforms that the 
Secretary considers appropriate.
    (2) The analysis shall include the following:
            (A) Opportunities to achieve efficiency and reduce 
        duplication of efforts by consolidating responsibilities for 
        research, development, test, and evaluation, by area or 
        function, in a military department as a lead agency or 
        executive agent.
            (B) Reforms of the management processes of Department of 
        Defense laboratories and test and evaluation centers that would 
        reduce costs and increase efficiency in the conduct of 
        research, development, test, and evaluation.
            (C) Opportunities for Department of Defense laboratories 
        and test and evaluation centers to enter into partnership 
        arrangements with laboratories in industry, academia, and other 
        Federal agencies that demonstrate leadership, initiative, and 
        innovation in research, development, test, and evaluation.
            (D) The benefits of consolidating test ranges and test 
        facilities under one management structure.
            (E) Personnel demonstration projects and pilot projects 
        that are being carried out to address the challenges for and 
        constraints on recruitment and retention of scientists and 
        engineers.
            (F) The extent to which there is disseminated within the 
        Department of Defense laboratories and test and evaluation 
        centers information regarding initiatives that have 
        successfully improved efficiency through reform of management 
        processes and other means.
            (G) Any cost savings that can be derived directly from 
        reorganization of management structures.
            (H) Options for reinvesting any such cost savings in the 
        Department of Defense laboratories and test and evaluation 
        centers.
    (3) The Secretary shall submit the plan required under paragraph 
(1) to the congressional defense committees not later than 180 days 
after the date of the enactment of this Act.
    (b) Cost-Based Management Information System.--(1) The Secretary of 
Defense shall develop a plan, including a schedule, for establishing a 
cost-based management information system for Department of Defense 
laboratories and test and evaluation centers. The system shall provide 
for accurately identifying and comparing the costs of operating each 
laboratory and each center.
    (2) In preparing the plan, the Secretary shall assess the 
feasibility and desirability of establishing a common methodology for 
assessing costs. The Secretary shall consider the use of a revolving 
fund as one potential methodology.
    (3) The Secretary shall submit the plan required under paragraph 
(1) to the congressional defense committees not later than 90 days 
after the date of the enactment of this Act.

SEC. 907. RESTRUCTURING OF ADMINISTRATION OF FISHER HOUSES.

    (a) Administration as Nonappropriated Fund Instrumentality.--(1) 
Chapter 147 of title 10, United States Code, is amended by adding at 
the end the following:
``Sec. 2490b. Fisher Houses: administration as nonappropriated fund 
              instrumentality
    ``(a) Fisher Houses and Suites.--(1) For the purposes of this 
section, a Fisher House is a housing facility that--
            ``(A) is located in proximity to a health care facility of 
        the Army, the Air Force, or the Navy;
            ``(B) is available for residential use on a temporary basis 
        by patients of that health care facility, members of the 
        families of such patients, and others providing the equivalent 
        of familial support for such patients; and
            ``(C) has been constructed and donated by--
                    ``(i) the Zachary and Elizabeth M. Fisher Armed 
                Services Foundation; or
                    ``(ii) another source, if the Secretary designates 
                the housing facility as a Fisher House.
    ``(2) For the purposes of this section, a Fisher Suite is one or 
more rooms that meet the requirements of subparagraph (A) and (B) of 
paragraph (1), are constructed, altered, or repaired and donated by a 
source described in subparagraph (C) of that paragraph, and are 
designated by the Secretary concerned as a Fisher Suite.
    ``(b) Nonappropriated Fund Instrumentality.--The Secretary of a 
military department shall administer all Fisher Houses and Fisher 
Suites associated with health care facilities of that military 
department as a nonappropriated fund instrumentality of the United 
States.
    ``(c) Governance.--The Secretary shall establish a system for the 
governance of the nonappropriated fund instrumentality.
    ``(d) Central Fund.--The Secretary shall establish a single fund as 
the source of funding for the operation, maintenance, and improvement 
of all Fisher Houses and Fisher Suites of the nonappropriated fund 
instrumentality.
    ``(e) Acceptance of Contributions and Fees.--The Secretary of a 
military department may accept money, property, and services donated 
for the support of a Fisher House or Fisher Suite, and may impose fees 
relating to the use of the Fisher Houses and Fisher Suites. All 
monetary donations, and the proceeds of the disposal of any other 
donated property, accepted by the Secretary under this subsection shall 
be credited to the fund established under subsection (d) for the Fisher 
Houses and Fisher Suites of that military department and shall be 
available for all Fisher Houses and Fisher Suites of that military 
department.
    ``(f) Annual Report.--Not later than January 15 of each year, the 
Secretary of each military department shall submit a report on Fisher 
House operations to the Committee on Armed Services of the Senate and 
the Committee on National Security of the House of Representatives. The 
report shall include, at a minimum, the following:
            ``(1) The amount in the fund established by the Secretary 
        for the Fisher Houses and Fisher Suites under subsection (d), 
        as of October 1 of the previous year.
            ``(2) The operation of the fund during the fiscal year 
        ending on the day before that date, including--
                    ``(A) all gifts, fees, and interest credited to the 
                fund; and
                    ``(B) the disbursements from the fund.
            ``(3) The budget for the operation of the Fisher Houses and 
        Fisher Suites for the fiscal year in which the report is 
        submitted.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following:

``2490b. Fisher Houses: administration as nonappropriated fund 
                            instrumentality.''.
    (b) Funding Transition.--(1) Not later than 90 days after the date 
of the enactment of this Act the Secretary of each military department 
shall--
            (A) establish the fund required under section 2490b(d) of 
        title 10, United States Code (as added by subsection (a)); and
            (B) close the Fisher House trust fund for that department 
        and transfer the amounts in the closed fund to the newly 
        established fund.
    (2) Of the amounts appropriated for the Navy pursuant to section 
301, the Secretary of the Navy shall transfer to the fund established 
by the Secretary under section 2490b(d) of title 10, United States Code 
(as added by subsection (a)) such amount as the Secretary considers 
appropriate for establishing in the fund a corpus sufficient for 
operating Fisher Houses and Fisher Suites of the Navy.
    (3) Of the amounts appropriated for the Air Force pursuant to 
section 301, the Secretary of the Air Force shall transfer to the fund 
established by the Secretary under section 2490b(d) of title 10, United 
States Code (as added by subsection (a)) such amount as the Secretary 
considers appropriate for establishing in the fund a corpus sufficient 
for operating Fisher Houses and Fisher Suites of the Air Force.
    (4) The Secretary of each military department, upon completing the 
actions required of the Secretary under the preceding paragraphs of 
this subsection, shall submit to Congress a report containing--
            (A) the Secretary's certification that those actions have 
        been completed; and
            (B) a statement of the amount deposited in the newly 
        established fund.
    (5) Amounts transferred to a fund established under section 
2490b(d) of title 10, United States Code (as added by subsection (a)), 
shall be available without fiscal year limitation for the purposes for 
which the fund is established and shall be administered as 
nonappropriated funds.
    (c) Conforming Repeals.--(1) Section 2221 of title 10, United 
States Code, and the item relating to that section in the table of 
sections at the beginning of chapter 131 of such title, are repealed.
    (2) Section 1321(a) of title 31, United States Code, is amended by 
striking out paragraphs (92), (93), and (94).
    (3) The amendments made by paragraphs (1) and (2) shall take effect 
90 days after the date of the enactment of this Act.

SEC. 908. REDESIGNATION OF DIRECTOR OF DEFENSE RESEARCH AND ENGINEERING 
              AS DIRECTOR OF DEFENSE TECHNOLOGY AND 
              COUNTERPROLIFERATION AND TRANSFER OF RESPONSIBILITIES.

    (a) Redesignation.--Subsection (a) of section 137 of title 10, 
United States Code, is amended by striking out ``Director of Defense 
Research and Engineering'' and inserting in lieu thereof ``Director of 
Defense Technology and Counterproliferation''.
    (b) Duties.--Subsection (b) of such section 137 is amended to read 
as follows:
    ``(b) The Director of Defense Technology and Counterproliferation 
shall--
            ``(1) except as otherwise prescribed by the Secretary of 
        Defense, perform such duties relating to research and 
        engineering as the Under Secretary of Defense for Acquisition 
        and Technology may prescribe;
            ``(2) advise the Secretary of Defense on matters relating 
        to nuclear energy and nuclear weapons;
            ``(3) serve as the Staff Director of the Joint Nuclear 
        Weapons Council under section 179 of this title; and
            ``(4) perform such other duties as the Secretary of Defense 
        may prescribe.''.
    (c) Abolishment of Position of Assistant to the Secretary of 
Defense for Nuclear and Chemical and Biological Defense Programs.--
Section 142 of such title is repealed.
    (d) Conforming Amendments.--(1) Title 5, United States Code, is 
amended as follows:
            (A) In section 5315, by striking out ``Director of Defense 
        Research and Engineering'' and inserting in lieu thereof the 
        following:
            ``Director of Defense Technology and 
        Counterproliferation''.
            (B) In section 5316, by striking out ``Assistant to the 
        Secretary of Defense for Nuclear and Chemical and Biological 
        Defense Programs, Department of Defense.''.
    (2) Title 10, United States Code, is amended as follows:
            (A) In section 131(b), by striking out paragraph (6) and 
        inserting in lieu thereof the following:
            ``(6) Director of Defense Technology and 
        Counterproliferation.''.
            (B) In section 138(d), by striking out ``Director of 
        Defense Research and Engineering'' and inserting in lieu 
        thereof ``Director of Defense Technology and 
        Counterproliferation''.
            (C) In section 179(c)(2), by striking out ``Assistant to 
        the Secretary of Defense for Nuclear and Chemical and 
        Biological Defense Programs'' and inserting in lieu thereof 
        ``Director of Defense Technology and Counterproliferation''.
            (D) In section 2350a(g)(3), by striking out ``Deputy 
        Director, Defense Research and Engineering (Test and 
        Evaluation)'' and inserting in lieu thereof ``Under Secretary 
        of Defense for Acquisition and Technology''.
            (E) In section 2617(a), by striking out ``Director of 
        Defense Research and Engineering'' and inserting in lieu 
        thereof ``Director of Defense Technology and 
        Counterproliferation''.
            (F) In section 2902(b), by striking out paragraph (1) and 
        inserting in lieu thereof the following:
            ``(1) The Director of Defense Technology and 
        Counterproliferation.''.
    (3) Section 257(a) of the National Defense Authorization Act for 
Fiscal Year 1995 (10 U.S.C. 2358 note) is amended by striking out 
``Director of Defense Research and Engineering'' and inserting in lieu 
thereof ``Director of Defense Technology and Counterproliferation''.
    (4) The National Defense Authorization Act for Fiscal Year 1994 is 
amended as follows:
            (A) In section 802(a) (10 U.S.C. 2358 note), by striking 
        out ``Director of Defense Research and Engineering'' and 
        inserting in lieu thereof ``Director of Defense Technology and 
        Counterproliferation''.
            (B) In section 1605(a)(5), (22 U.S.C. 2751 note) by 
        striking out ``Assistant to the Secretary of Defense for 
        Nuclear and Chemical and Biological Defense Programs'' and 
        inserting in lieu thereof ``Director of Defense Technology and 
        Counterproliferation''.
    (e) Clerical Amendments.--(1) The section heading of section 137 of 
title 10, United States Code, is amended to read as follows:
``Sec. 137. Director of Defense Technology and Counterproliferation''.
    (2) The table of sections at the beginning of chapter 4 of title 
10, United States Code, is amended--
            (A) by striking out the item relating to section 137 and 
        inserting in lieu thereof the following:

``137. Director of Defense Technology and Counterproliferation.'';
        and
            (B) by striking out the item relating to section 142.

SEC. 909. CENTER FOR HEMISPHERIC DEFENSE STUDIES.

    (a) Funding for Center for Hemispheric Defense Studies.--(1) 
Chapter 108 of title 10, United States Code, is amended by adding at 
the end the following:
``Sec. 2166. National Defense University: funding of component 
              institution
    ``Funds available for the payment of personnel expenses under the 
Latin American cooperation authority set forth in section 1050 of this 
title are also available for the costs of the operation of the Center 
for Hemispheric Defense Studies.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following:

``2166. National Defense University: funding of component 
                            institution.''.
    (b) Conforming Amendment.--Section 1050 of title 10, United States 
Code, is amended by inserting ``Secretary of Defense or the'' before 
``Secretary of a military department''.

SEC. 910. MILITARY AVIATION ACCIDENT INVESTIGATIONS.

    (a) Findings.--Congress makes the following findings:
            (1) In February 1996, the Government Accounting Office 
        released a report highlighting a 75 percent reduction in 
        aviation Class A mishaps, a 70 percent reduction in aviation 
        mishap fatalities and a 65 percent reduction in Class A mishap 
        rates from 1975-1995 (Military Aircraft Safety--Significant 
        Improvements since 1975).
            (2) In February 1998, the Government Accounting Office 
        completed a follow-up review of military aircraft safety, 
        noting that the military experienced fewer serious aviation 
        mishaps in fiscal years 1996 and 1997 than in previous fiscal 
        years (Military Aircraft Safety: Serious Accidents Remain at 
        Historically Low Levels).
            (3) The report required by section 1046 of the National 
        Defense Authorization Act for fiscal year 1998 (Public Law 105-
        85; 111 Stat. 1888) concluded, ``DoD found no evidence that 
        changing existing investigation processes to more closely 
        resemble those of the NTSB would help DoD to find more answers 
        more quickly, or accurately''.
            (4) The Department of Defense must further improve its 
        aviation safety by fully examining all options for improving or 
        replacing its current aviation accident investigation 
        processes.
            (5) The inter-service working group formed as a result of 
        that report has contributed to progress in military aviation 
        accident investigations by identifying ways to improve family 
        assistance, as has the formal policy direction coordinated by 
        the Office of the Secretary of Defense.
            (6) Such progress includes the issuance of Air Force 
        Instruction 90-701 entitled ``Assistance to Families of Persons 
        Involved in Air Force Aviation Mishaps'', that attempts to meet 
        the need for a more timely flow of relevant information to 
        families, a family liaison officer, and the establishment of 
        the Air Force Office of Family Assistance. However, formal 
        policy directions and Air Force instructions have not 
        adequately addressed the failure to provide primary next of kin 
        of members of the Armed Forces involved in military aviation 
        accidents with interim reports regarding the course of 
        investigations into such accidents, and the Department of 
        Defense must improve its procedures for informing the families 
        of the persons involved in military aviation mishaps.
            (7) The report referred to in paragraph (3) concluded that 
        the Department would ``benefit from the disappearance of the 
        misperception that the privileged portion of the safety 
        investigation exists to hide unfavorable information''.
            (8) That report further specified that ``[e]ach Military 
        Department has procedures in place to place to provide redacted 
        copies of the final [privileged] safety report to the families. 
        However, families must formally request a copy of the final 
        safety investigation report''.
    (9) Current efforts to improve family notification would be 
enhanced by the issuance by the Secretary of Defense of uniform 
regulations to improve the timeliness and reliability of information 
provided to the primary next of kin of persons involved in military 
aviation accidents during and following both the legal investigation 
and safety investigation phases of such investigations.
    (b) Evaluation of Department of Defense Aviation Accident 
Investigation Procedures.--(1) The Secretary of Defense shall establish 
a task force to--
            (A) review the procedures employed by the Department of 
        Defense to conduct military aviation accident investigations; 
        and
            (B) identify mechanisms for improving such investigations 
        and the military aviation accident investigation process.
    (2) The Secretary shall appoint to the task force the following:
            (A) An appropriate number of members of the Armed Forces, 
        including both members of the regular components and the 
        reserve components, who have experience relating to military 
        aviation or investigations into military aviation accidents.
            (B) An appropriate number of former members of the Armed 
        Forces who have such experience.
            (C) With the concurrence of the member concerned, a member 
        of the National Transportation Safety Board.
    (3)(A) The task force shall submit to Congress an interim report 
and a final report on its activities under this subsection. The interim 
report shall be submitted on December 1, 1998, and the final report 
shall be submitted on March 31, 1999.
    (B) Each report under subparagraph (A) shall include the following:
            (i) An assessment of the advisability of conducting all 
        military aviation accident investigations through an entity 
        that is independent of the military departments.
            (ii) An assessment of the effectiveness of the current 
        military aviation accident investigation process in identifying 
        the cause of military aviation accidents and correcting 
        problems so identified in a timely manner.
            (iii) An assessment whether or not the procedures for 
        sharing the results of military aviation accident 
        investigations among the military departments should be 
        improved.
            (iv) An assessment of the advisability of centralized 
        training and instruction for military aircraft investigators.
            (v) An assessment of any costs or cost avoidances that 
        would result from the elimination of any overlap in military 
        aviation accident investigation activities conducted under the 
        current so-called ``two-track'' investigation process.
            (vi) Any improvements or modifications in the current 
        military aviation accident investigation process that the task 
        force considers appropriate to reduce the potential for 
        aviation accidents and increase public confidence in the 
        process.
    (c) Uniform Regulations for Release of Interim Safety Investigation 
Reports.--(1)(A) Not later than May 1, 1999, the Secretary of Defense 
shall prescribe regulations that provide for the release to the family 
members of persons involved in military aviation accidents, and to 
members of the public, of reports referred to in paragraph (2).
    (B) The regulations shall apply uniformly to each military 
department.
    (2) A report under paragraph (1) is a report on the findings of any 
ongoing privileged safety investigation into an accident referred to in 
that paragraph. Such report shall be in a redacted form or other form 
appropriate to preserve witness confidentiality and to minimize the 
effects of the release of information in such report on national 
security.
    (3) Reports under paragraph (1) shall be made available--
            (A) in the case of family members, at least once every 30 
        days or upon the development of a new or significantly changed 
        finding during the course of the investigation concerned; and
            (B) in the case of members of the public, on request.

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

SEC. 1001. TRANSFER AUTHORITY.

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

SEC. 1002. AUTHORIZATION OF EMERGENCY APPROPRIATIONS FOR FISCAL YEAR 
              1999.

    (a) Authorization of Appropriations.--Funds are hereby authorized 
to be appropriated for the Department of Defense for fiscal year 1999 
for incremental costs of operations of the Armed Forces in and around 
Bosnia and Herzegovina in the total amount of $1,858,600,000, as 
follows:
            (1) For military personnel, in addition to the amounts 
        authorized to be appropriated in title IV of this Act:
                    (A) For the Army, $297,700,000.
                    (B) For the Navy, $9,700,000.
                    (C) For the Marine Corps, $2,700,000.
                    (D) For the Air Force, $33,900,000.
                    (E) For the Naval Reserve, $2,200,000.
            (2) For operation and maintenance for the Overseas 
        Contingency Operations Transfer Fund, in addition to the total 
        amount authorized to be appropriated for that fund in section 
        301(a)(25) of this Act, $1,512,400,000.
    (b) Transfer Authority.--Upon determination by the Secretary of 
Defense that such action is necessary in the national interest, the 
Secretary may transfer amounts of authorizations made available to the 
Department of Defense in subsection (a)(2) for fiscal year 1999 to any 
of the authorizations for that fiscal year in section 301. Amounts of 
authorizations so transferred shall be merged with and be available for 
the same purposes as the authorization to which transferred. The 
transfer authority under this subsection is in addition to any other 
transfer authority provided in this Act.
    (c) Designation as Emergency.--Funds authorized to be appropriated 
in accordance with subsection (a) are designated as emergency 
requirements pursuant to section 251(b)(2)(A) of the Balanced Budget 
and Emergency Deficit Control Act of 1985.

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

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

SEC. 1004. PARTNERSHIP FOR PEACE INFORMATION SYSTEM MANAGEMENT.

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

SEC. 1005. REDUCTIONS IN FISCAL YEAR 1998 AUTHORIZATIONS OF 
              APPROPRIATIONS FOR DIVISION A AND DIVISION B AND 
              INCREASES IN CERTAIN AUTHORIZATIONS OF APPROPRIATIONS.

    (a) Total Reduction.--Notwithstanding any other provision in this 
division, amounts authorized to be appropriated under other provisions 
of this division are reduced in accordance with subsection (b) by the 
total amount of $421,900,000 in order to reflect savings resulting from 
revised economic assumptions.
    (b) Distribution of Reduction.--
            (1) Procurement.--Amounts authorized to be appropriated for 
        procurement under title I are reduced as follows:
                    (A) Army.--For the Army:
                            (i) Aircraft.--For aircraft under section 
                        101(1), by $4,000,000.
                            (ii) Missiles.--For missiles under section 
                        101(2), by $4,000,000.
                            (iii) Weapons and tracked combat 
                        vehicles.--For weapons and tracked combat 
                        vehicles under section 101(3), by $4,000,000.
                            (iv) Ammunition.--For ammunition under 
                        section 101(4), by $3,000,000.
                            (v) Other procurement.--For other 
                        procurement under section 101(5), by 
                        $9,000,000.
                    (B) Navy and marine corps.--For the Navy, Marine 
                Corps, or both the Navy and Marine Corps:
                            (i) Aircraft.--For aircraft under section 
                        102(a)(1), by $22,000,000.
                            (ii) Weapons.--For weapons, including 
                        missiles and torpedoes, under section 
                        102(a)(2), by $4,000,000.
                            (iii) Shipbuilding and conversion.--For 
                        shipbuilding and conversion under section 
                        102(a)(3), by $18,000,000.
                            (iv) Other procurement.--For other 
                        procurement under section 102(a)(4), by 
                        $12,000,000.
                            (v) Marine corps procurement.--For 
                        procurement for the Marine Corps under section 
                        102(b), by $2,000,000.
                            (vi) Ammunition.--For ammunition under 
                        section 102(c), by $1,000,000.
                    (C) Air Force.--For the Air Force:
                            (i) Aircraft.--For aircraft under section 
                        103(1), by $23,000,000.
                            (ii) Missiles.--For missiles under section 
                        103(2), by $7,000,000.
                            (iii) Ammunition.--For ammunition under 
                        section 103(3), by $1,000,000.
                            (iv) Other procurement.--For other 
                        procurement under section 103(4), by 
                        $17,500,000.
                    (D) Defense-wide activities.--For the Department of 
                Defense for Defense-wide activities under section 104, 
                by $5,800,000.
                    (E) Chemical demilitarization program.--For the 
                destruction of lethal chemical agents and munitions and 
                of chemical warfare material under section 107, by 
                $3,000,000.
            (2) RDT&E.--Amounts authorized to be appropriated for 
        research, development, test, and evaluation under title II are 
        reduced as follows:
                    (A) Army.--For the Army under section 201(1), by 
                $10,000,000.
                    (B) Navy.--For the Navy under section 201(2), by 
                $20,000,000.
                    (C) Air force.--For the Air Force under section 
                201(3), by $39,000,000.
                    (D) Defense-wide activities.--For Defense-wide 
                activities under section 201(4), by $26,700,000.
            (3) Operation and maintenance.--Amounts authorized to be 
        appropriated for operation and maintenance under title III are 
        reduced as follows:
                    (A) Army.--For the Army under section 301(a)(1), by 
                $24,000,000.
                    (B) Navy.--For the Navy under section 301(a)(2), by 
                $32,000,000.
                    (C) Marine corps.--For the Marine Corps under 
                section 301(a)(3), by $4,000,000.
                    (D) Air force.--For the Air Force under section 
                301(a)(4), by $31,000,000.
                    (E) Defense-wide activities.--For Defense-wide 
                activities under section 301(a)(6), by $17,600,000.
                    (F) Army reserve.--For the Army Reserve under 
                section 301(a)(7), by $2,000,000.
                    (G) Naval reserve.--For the Naval Reserve under 
                section 301(a)(8), by $2,000,000.
                    (H) Air force reserve.--For the Air Force Reserve 
                under section 301(a)(10), by $2,000,000.
                    (I) Army national guard.--For the Army National 
                Guard under section 301(a)(11), by $4,000,000.
                    (J) Air national guard.--For the Air National Guard 
                under section 301(a)(12), by $4,000,000.
                    (K) Environmental restoration, army.--For 
                Environmental Restoration, Army under section 
                301(a)(15), by $1,000,000.
                    (L) Environmental restoration, navy.--For 
                Environmental Restoration, Navy under section 
                301(a)(16), by $1,000,000.
                    (M) Environmental restoration, air force.--For 
                Environmental Restoration, Air Force under section 
                301(a)(17), by $1,000,000.
                    (N) Environmental restoration, defense-wide.--For 
                Environmental Restoration, Defense-wide under section 
                301(a)(18), by $1,000,000.
                    (O) Drug interdiction and counter-drug activities, 
                defense-wide.--For Drug Interdiction and Counter-drug 
                Activities, Defense-wide under section 301(a)(21), by 
                $2,000,000.
                    (P) Medical programs, defense.--For Medical 
                Programs, Defense under section 301(a)(23), by 
                $36,000,000.
            (4) Military construction, army.--Amounts authorized to be 
        appropriated for military construction, Army, under title XXI 
        by section 2104(a) are reduced by $5,000,000, of which 
        $3,000,000 shall be a reduction of support of military family 
        housing under section 2104(a)(5)(B).
            (5) Military construction, navy.--Amounts authorized to be 
        appropriated for military construction, Navy, under title XXII 
        by section 2204(a) are reduced by $5,000,000, of which--
                    (A) $1,000,000 shall be a reduction of construction 
                and acquisition of military family housing under 
                section 2204(a)(5)(A); and
                    (B) $3,000,000 shall be a reduction of support of 
                military family housing under section 2204(a)(5)(B).
            (6) Military construction, air force.--Amounts authorized 
        to be appropriated for military construction, Air Force, under 
        title XXIII by section 2304(a) are reduced by $4,000,000, of 
        which--
                    (A) $1,000,000 shall be a reduction of construction 
                and acquisition of military family housing under 
                section 2304(a)(5)(A); and
                    (B) $2,000,000 shall be a reduction of support of 
                military family housing under section 2304(a)(5)(B).
            (7) Military construction, defense agencies.--Amounts 
        authorized to be appropriated for military construction, 
        Defense Agencies, under title XXIV by section 2404(a) are 
        reduced by $6,300,000, of which $5,000,000 shall be a reduction 
        of defense base closure and realignment under section 
        2404(a)(10), of which--
                    (A) $1,000,000 shall be a reduction of defense base 
                closure and realignment, Army;
                    (B) $2,000,000 shall be a reduction of defense base 
                closure and realignment, Navy; and
                    (C) $2,000,000 shall be a reduction of defense base 
                closure and realignment, Air Force.
            (8) North atlantic treaty organization security investment 
        program.--Amounts authorized to be appropriated for 
        contributions to the North Atlantic Treaty Organization 
        Security Investment program under title XXV by section 2502 are 
        reduced by $1,000,000.
    (c) Proportionate Reductions Within Accounts.--The amount provided 
for each budget activity, budget activity group, budget subactivity 
group, program, project, or activity under an authorization of 
appropriations reduced by subsection (b) is hereby reduced by the 
percentage computed by dividing the total amount of that authorization 
of appropriations (before the reduction) into the amount by which that 
total amount is so reduced.
    (d) Increase in Certain Authorizations of Appropriations.--
            (1) Operation and maintenance, army national guard.--The 
        amount authorized to be appropriated by section 301(a)(11), as 
        reduced by subsection (b)(3)(I), is increased by $120,000,000.
            (2) Other defense programs, department of energy.--The 
        amount authorized to be appropriated by section 3103 is 
        increased by $20,000,000, which amount shall be available for 
        verification and control technology under paragraph (1)(C) of 
        that section.

SEC. 1006. AMOUNT AUTHORIZED FOR CONTRIBUTIONS FOR NATO COMMON-FUNDED 
              BUDGETS.

    (a) Total Amount.--Contributions are authorized to be made in 
fiscal year 1999 for the common-funded budgets of NATO, out of funds 
available for the Department of Defense for that purpose, in the total 
amount that is equal to the sum of (1) the amounts of the unexpended 
balances, as of the end of fiscal year 1998, of funds appropriated for 
fiscal years before fiscal year 1999 for payments for such budgets, (2) 
the amount authorized to be appropriated under section 301(a)(1) that 
is available for contributions for the NATO common-funded military 
budget under section 314, (3) the amount authorized to be appropriated 
under section 201(1) that is available for contribution for the NATO 
common-funded civil budget under section 219, and (4) the total amount 
of the contributions authorized to be made under section 2501.
    (b) Definition.--In this section, the term ``common-funded budgets 
of NATO'' means the Military Budget, the Security Investment Program, 
and the Civil Budget of NATO (and any successor or additional account 
or program of NATO).

                       Subtitle B--Naval Vessels

SEC. 1011. IOWA CLASS BATTLESHIP RETURNED TO NAVAL VESSEL REGISTER.

    The U.S.S. Iowa shall be listed, and maintained, on the Naval 
Vessel Register under section 1011 of the National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 
421) instead of the U.S.S. New Jersey, which shall be stricken from the 
register. The preceding sentence does not affect the continued 
effectiveness of subsection (d) of such section.

SEC. 1012. LONG-TERM CHARTER OF THREE VESSELS IN SUPPORT OF SUBMARINE 
              RESCUE, ESCORT, AND TOWING.

    (a) Authority.--The Secretary of the Navy may to enter into one or 
more long-term charters in accordance with section 2401 of title 10, 
United States Code, for three vessels to support the rescue, escort, 
and towing of submarines.
    (b) Vessels.--The vessels that may be chartered under subsection 
(a) are as follows:
            (1) The Carolyn Chouest (United States official number 
        D102057).
            (2) The Kellie Chouest (United States official number 
        D1038519).
            (3) The Dolores Chouest (United States official number 
        D600288).
    (c) Charter Period.--The period for which a vessel is chartered 
under subsection (a) may not extend beyond October 1, 2004.
    (d) Funding.--The funds used for charters entered into under 
subsection (a) shall be funds authorized to be appropriated under 
section 301(a)(2).

SEC. 1013. TRANSFERS OF CERTAIN NAVAL VESSELS TO CERTAIN FOREIGN 
              COUNTRIES.

    (a) Authority.--
            (1) Argentina.--The Secretary of the Navy is authorized to 
        transfer to the Government of Argentina on a grant basis the 
        tank landing ship Newport (LST 1179).
            (2) Brazil.--The Secretary of the Navy is authorized to 
        transfer vessels to the Government of Brazil as follows:
                    (A) On a sale basis, the Newport class tank landing 
                ships Cayuga (LST 1186) and Peoria (LST 1183).
                    (B) On a combined lease-sale basis, the Cimarron 
                class oiler Merrimack (AO 179).
            (3) Chile.--The Secretary of the Navy is authorized to 
        transfer vessels to the Government of Chile on a sale basis as 
        follows:
                    (A) The Newport class tank landing ship San 
                Bernardino (LST 1189).
                    (B) The auxiliary repair dry dock Waterford (ARD 
                5).
            (4) Greece.--The Secretary of the Navy is authorized to 
        transfer vessels to the Government of Greece as follows:
                    (A) On a sale basis, the following vessels:
                            (i) The Oak Ridge class medium dry dock 
                        Alamogordo (ARDM 2).
                            (ii) The Knox class frigates Vreeland (FF 
                        1068) and Trippe (FF 1075).
                    (B) On a combined lease-sale basis, the Kidd class 
                guided missile destroyers Kidd (DDG 993), Callaghan 
                (DDG 994), Scott (DDG 995) and Chandler (DDG 996).
                    (C) On a grant basis, the following vessels:
                            (i) The Knox class frigate Hepburn (FF 
                        1055).
                            (ii) The Adams class guided missile 
                        destroyers Strauss (DDG 16), Semmes (DDG 18), 
                        and Waddell (DDG 24).
            (5) Mexico.--The Secretary of the Navy is authorized to 
        transfer to the Government of Mexico on a sale basis the 
        auxiliary repair dry dock San Onofre (ARD 30) and the Knox 
        class frigate Pharris (FF 1094).
            (6) Philippines.--The Secretary of the Navy is authorized 
        to transfer to the Government of the Philippines on a sale 
        basis the Stalwart class ocean surveillance ship Triumph (T-
        AGOS 4).
            (7) Portugal.--The Secretary of the Navy is authorized to 
        transfer to the Government of Portugal on a grant basis the 
        Stalwart class ocean surveillance ship Assurance (T-AGOS 5).
            (8) Spain.--The Secretary of the Navy is authorized to 
        transfer to the Government of Spain on a sale basis the Newport 
        class tank landing ships Harlan County (LST 1196) and 
        Barnstable County (LST 1197).
            (9) Taiwan.--The Secretary of the Navy is authorized to 
        transfer vessels to the Taipei Economic and Cultural 
        Representative Office in the United States (which is the Taiwan 
        instrumentality designated pursuant to section 10(a) of the 
        Taiwan Relations Act) on a sale basis as follows:
                    (A) The Knox class frigates Peary (FF 1073), Joseph 
                Hewes (FF 1078), Cook (FF 1083), Brewton (FF 1086), 
                Kirk (FF 1087) and Barbey (FF 1088).
                    (B) The Newport class tank landing ships Manitowoc 
                (LST 1180) and Sumter (LST 1181).
                    (C) The floating dry dock Competent (AFDM 6).
                    (D) The Anchorage class dock landing ship Pensacola 
                (LSD 38).
            (10) Turkey.--The Secretary of the Navy is authorized to 
        transfer vessels to the Government of Turkey as follows:
                    (A) On a sale basis, the following vessels:
                            (i) The Oliver Hazard Perry class guided 
                        missile frigates Mahlon S. Tisdale (FFG 27), 
                        Reid (FFG 30) and Duncan (FFG 10).
                            (ii) The Knox class frigates Reasoner (FF 
                        1063), Fanning (FF 1076), Bowen (FF 1079), 
                        McCandless (FF 1084), Donald Beary (FF 1085), 
                        Ainsworth (FF 1090), Thomas C. Hart (FF 1092), 
                        and Capodanno (FF 1093).
                    (B) On a grant basis, the Knox class frigates Paul 
                (FF 1080), Miller (FF 1091), W.S. Simms (FF 1059).
            (11) Venezuela.--The Secretary of the Navy is authorized to 
        transfer to the Government of Venezuela on a sale basis the 
        unnamed medium auxiliary floating dry dock AFDM 2.
    (b) Bases of Transfer.--
            (1) Grant.--A transfer of a naval vessel authorized to be 
        made on a grant basis under subsection (a) shall be made under 
        section 516 of the Foreign Assistance Act of 1961 (22 U.S.C. 
        2321j).
            (2) Sale.--A transfer of a naval vessel authorized to be 
        made on a sale basis under subsection (a) shall be made under 
        section 21 of the Arms Export Control Act (22 U.S.C. 2761).
            (3) Combined lease-sale.--(A) A transfer of a naval vessel 
        authorized to be made on a combined lease-sale basis under 
        subsection (a) shall be made under sections 61 and 21 of the 
        Arms Export Control Act (22 U.S.C. 2796 and 2761, respectively) 
        in accordance with this paragraph.
            (B) For each naval vessel authorized by subsection (a) for 
        transfer on a lease-sale basis, the Secretary of the Navy is 
        authorized to transfer the vessel under the terms of a lease, 
        with lease payments suspended for the term of the lease, if the 
        country entering into the lease of the vessel simultaneously 
        enters into a foreign military sales agreement for the transfer 
        of title to the leased vessel. Delivery of title to the 
        purchasing country shall not be made until the purchase price 
        of the vessel has been paid in full. Upon delivery of title to 
        the purchasing country, the lease shall terminate.
            (C) If the purchasing country fails to make full payment of 
        the purchase price by the date required under the sales 
        agreement, the sales agreement shall be immediately terminated, 
        the suspension of lease payments under the lease shall be 
        vacated, and the United States shall retain all funds received 
        on or before the date of the termination under the sales 
        agreement, up to the amount of the lease payments due and 
        payable under the lease and all other costs required by the 
        lease to be paid to that date. No interest shall be payable to 
        the recipient by the United States on any amounts that are paid 
        to the United States by the recipient under the sales agreement 
        and are not retained by the United States under the lease.
    (c) Requirement for Provision in Advance in an Appropriations 
Act.--Authority to transfer vessels on a sale or combined lease-sale 
basis under subsection (a) shall be effective only to the extent that 
authority to effectuate such transfers, together with appropriations to 
cover the associated cost (as defined in section 502 of the 
Congressional Budget and Impoundment Control Act of 1974 (2 U.S.C. 
661a)), are provided in advance in an appropriations Act.
    (d) Notification of Congress.--Not later than 30 days after the 
date of the enactment of this Act, the Secretary of the Navy shall 
submit to Congress, for each naval vessel that is to be transferred 
under this section before January 1, 1999, the notifications required 
under section 516 of the Foreign Assistance Act of 1961 (22 U.S.C. 
2321j) and section 525 of the Foreign Operations, Export Financing, and 
Related Programs Appropriations Act, 1998 (Public Law 105-118; 111 
Stat. 2413).
    (e) Grants not Counted in Annual Total of Transferred Excess 
Defense Articles.--The value of the naval vessels authorized by 
subsection (a) to be transferred on a grant basis under section 516 of 
the Foreign Assistance Act of 1961 (22 U.S.C. 2321j) shall not be 
counted for the purposes of that section in the aggregate value of 
excess defense articles transferred to countries under that section in 
any fiscal year.
    (f) Costs of Transfers.--Any expense of the United States in 
connection with a transfer authorized by subsection (a) shall be 
charged to the recipient (notwithstanding section 516(e)(1) of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2321j(e)(1)) in the case of a 
transfer authorized to be made on a grant basis under subsection (a)).
    (g) Repair and Refurbishment in United States Shipyards.--The 
Secretary of the Navy shall require, as a condition of the transfer of 
a vessel under this section, that the country to which the vessel is 
transferred have such repair or refurbishment of the vessel as is 
needed, before the vessel joins the naval forces of that country, 
performed at a shipyard located in the United States, including a 
United States Navy shipyard.
    (h) Expiration of Authority.--The authority to transfer a vessel 
under subsection (a) shall expire at the end of the two-year period 
beginning on the date of the enactment of this Act.

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

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

SEC. 1015. CONVEYANCE OF NDRF VESSEL EX-U.S.S. LORAIN COUNTY.

    (a) Authority To Convey.--The Secretary of Transportation may 
convey all right, title, and interest of the Federal Government in and 
to the vessel ex-U.S.S. LORAIN COUNTY (LST-1177) to the Ohio War 
Memorial, Inc., located in Sandusky, Ohio (in this section referred to 
as the ``recipient''), for use as a memorial to Ohio veterans.
    (b) Terms of Conveyance.--
            (1) Delivery of vessel.--In carrying out subsection (a), 
        the Secretary shall deliver the vessel--
                    (A) at the place where the vessel is located on the 
                date of conveyance;
                    (B) in its condition on that date; and
                    (C) at no cost to the Federal Government.
            (2) Required conditions.--The Secretary may not convey a 
        vessel under this section unless--
                    (A) the recipient agrees to hold the Government 
                harmless for any claims arising from exposure to 
                hazardous materials, including asbestos and 
                polychlorinated biphenyls, after conveyance of the 
                vessel, except for claims arising before the date of 
                the conveyance of from use of the vessel by the 
                Government after that date; and
                    (B) the recipient has available, for use to restore 
                the vessel, in the form of cash, liquid assets, or a 
                written loan commitment, financial resources of at 
                least $100,000.
            (3) Additional terms.--The Secretary may require such 
        additional terms and conditions in connection with the 
        conveyance authorized by this section as the Secretary 
        considers appropriate.
    (c) Other Unneeded Equipment.--The Secretary may convey to the 
recipient of the vessel conveyed under this section any unneeded 
equipment from other vessels in the National Defense Reserve Fleet, for 
use to restore the vessel conveyed under this section to museum 
quality.

SEC. 1016. HOMEPORTING OF THE U.S.S. IOWA BATTLESHIP IN SAN FRANCISCO.

    It is the sense of Congress that the U.S.S. Iowa should be 
homeported at the Port of San Francisco, California.

SEC. 1017. SHIP SCRAPPING PILOT PROGRAM.

    (a) In General.--The Secretary of the Navy shall carry out a vessel 
scrapping pilot program within the United States during fiscal years 
1999 and 2000. The scope of the program shall be that which the 
Secretary determines is sufficient to gather data on the cost of 
scrapping Government vessels domestically and to demonstrate cost 
effective technologies and techniques to scrap such vessels in a manner 
that is protective of worker safety and health and the environment.
    (b) Contract Award.--(1) The Secretary shall award a contract or 
contracts under subsection (a) to the offeror or offerors that the 
Secretary determines will provide the best value to the United States, 
taking into account such factors as the Secretary considers 
appropriate.
    (2) In making a best value determination under this subsection, the 
Secretary shall give a greater weight to technical and performance-
related factors than to cost and price-related factors.
    (3) The Secretary shall give significant weight to the technical 
qualifications and past performance of the contractor and the major 
subcontractors or team members of the contractor in complying with 
applicable Federal, State, and local laws and regulations for 
environmental and worker protection. In accordance with the 
requirements of the Federal Acquisition Regulation, in the case of an 
offeror without a record of relevant past performance or for whom 
information on past performance is not available, the offeror may not 
be evaluated favorably or unfavorably on past performance.
    (c) Contract Terms and Conditions.--The contract or contracts 
awarded by the Secretary pursuant to subsection (b) shall, at a 
minimum, provide for--
            (1) the transfer of the vessel or vessels to the contractor 
        or contractors;
            (2) the sharing, by any appropriate contracting method, of 
        the costs of scrapping the vessel or vessels between the 
        Government and the contractor or contractors;
            (3) a performance incentive for a successful record of 
        environmental and worker protection; and
            (4) Government access to contractor records in accordance 
        with the requirements of section 2313 of title 10, United 
        States Code.
    (d) Reports.--(1) Not later than September 30, 1999, the Secretary 
of the Navy shall submit an interim report on the pilot program to the 
congressional defense committees. The report shall contain the 
following:
            (A) The procedures used for the solicitation and award of a 
        contract or contracts under the pilot program.
            (B) The contract or contracts awarded under the pilot 
        program.
    (2) Not later than September 30, 2000, the Secretary of the Navy 
shall submit a final report on the pilot program to the congressional 
defense committees. The report shall contain the following:
            (A) The results of the pilot program and the performance of 
        the contractors under such program.
            (B) The Secretary's procurement strategy for future ship 
        scrapping activities.

       Subtitle C--Miscellaneous Report Requirements and Repeals

SEC. 1021. REPEAL OF REPORTING REQUIREMENTS.

    (a) Reports Required by Title 10.--
            (1) Health and medical care studies and demonstrations.--
        Section 1092(a) of title 10, United States Code, is amended by 
        striking out paragraph (3).
            (2) Annual report on use of money rentals for leases of 
        non-excess property.--Section 2667(d) of title 10, United 
        States Code, is amended--
                    (A) in paragraph (1)(A)(ii), by striking out 
                ``paragraph (4) or (5)'' and inserting in lieu thereof 
                ``paragraph (3) or (4)''.
                    (B) by striking out paragraph (3); and
                    (C) by redesignating paragraphs (4) and (5) as 
                paragraphs (3) and (4), respectively.
    (b) Report Required by Military Construction Authorization Act.--
Section 2819 of the National Defense Authorization Act, Fiscal Year 
1989 (Public Law 100-456; 102 Stat. 2119; 10 U.S.C. 2391 note,), 
relating to the Commission on Alternative Utilization of Military 
Facilities, is amended--
            (1) in subsection (a) by striking out ``(a) Establishment 
        of Commission.--''; and
            (2) by striking out subsections (b) and (c).

SEC. 1022. REPORT ON DEPARTMENT OF DEFENSE FINANCIAL MANAGEMENT 
              IMPROVEMENT PLAN.

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

SEC. 1023. FEASIBILITY STUDY OF PERFORMANCE OF DEPARTMENT OF DEFENSE 
              FINANCE AND ACCOUNTING FUNCTIONS BY PRIVATE SECTOR 
              SOURCES OR OTHER FEDERAL GOVERNMENT SOURCES.

    (a) Study Required.--The Secretary of Defense shall carry out a 
study of the feasibility and advisability of selecting on a competitive 
basis the source or sources for performing the finance and accounting 
functions of the Department of Defense from among private sector 
sources, the Defense Finance and Accounting Service of the Department 
of Defense, the military departments, and other Federal Government 
agencies.
    (b) Report.--Not later than October 1, 1999, the Secretary shall 
submit a written report on the results of the study to Congress. The 
report shall include the following:
            (1) A discussion of how the finance and accounting 
        functions of the Department of Defense are performed, including 
        the necessary operations, the operations actually performed, 
        the personnel required for the operations, and the core 
        competencies that are necessary for the performance of those 
        functions.
            (2) A comparison of the performance of the finance and 
        accounting functions by the Defense Finance and Accounting 
        Service with the performance of finance and accounting 
        functions by the other sources referred to in subsection (a) 
        that exemplify the best finance and accounting practices and 
        results, together with a comparison of the costs of the 
        performance of such functions by the Defense Finance and 
        Accounting Service and the estimated costs of the performance 
        of such functions by those other sources.
            (3) The finance and accounting functions, if any, that are 
        appropriate for performance by those other sources, together 
        with a concept of operations that--
                    (A) specifies the mission;
                    (B) identifies the finance and accounting 
                operations to be performed;
                    (C) describes the work force that is necessary to 
                perform those operations;
                    (D) discusses where the operations are to be 
                performed;
                    (E) describes how the operations are to be 
                performed; and
                    (F) discusses the relationship between how the 
                operations are to be performed and the mission.
            (4) An analysis of how Department of Defense programs or 
        processes would be affected by the performance of the finance 
        and accounting functions of the Department of Defense by one or 
        more of those other sources.
            (5) The status of the efforts within the Department of 
        Defense to consolidate and eliminate redundant finance and 
        accounting systems and to better integrate the automated and 
        manual systems of the department that provide input to 
        financial management or accounting systems of the department.
            (6) A description of a feasible and effective process for 
        selecting, on a competitive basis, sources to perform the 
        finance and accounting functions of the Department of Defense 
        from among the sources referred to in subsection (a), including 
        a discussion of the selection criteria considered appropriate.
            (7) Any recommended policy for selecting sources to perform 
        the finance and accounting functions of the Department of 
        Defense on a competitive basis from among the sources referred 
        to in subsection (a), together with such other recommendations 
        that the Secretary considers appropriate.
            (8) An analysis of the costs and benefits of the various 
        policies and actions recommended.
            (9) A discussion of any findings, analyses, and 
        recommendations of the performance of the finance and 
        accounting functions of the Department of Defense that have 
        been made by the Task Force on Defense Reform appointed by the 
        Secretary of Defense.
    (c) Market Research.--In carrying out the study, the Secretary 
shall perform market research to determine whether the availability of 
responsible private sector sources of finance and accounting services 
is sufficient for there to be a reasonable expectation of meaningful 
competition for any contract for the procurement of finance and 
accounting services for the Department of Defense.

SEC. 1024. REORGANIZATION AND CONSOLIDATION OF OPERATING LOCATIONS OF 
              THE DEFENSE FINANCE AND ACCOUNTING SERVICE.

    (a) Limitation.--No operating location of the Defense Finance and 
Accounting Service may be closed before the date that is six months 
after the date on which the Secretary submits to Congress the plan 
required by subsection (b).
    (b) Plan Required.--The Secretary of Defense shall submit to 
Congress a strategic plan for improving the financial management 
operations at each of the operating locations of the Defense Finance 
and Accounting Service.
    (c) Content of Plan.--The plan shall include, at a minimum, the 
following:
            (1) The workloads that it is necessary to perform at the 
        operating locations each fiscal year.
            (2) The capacity and number of operating locations that are 
        necessary for performing the workloads.
            (3) A discussion of the costs and benefits that could 
        result from reorganizing the operating locations of the Defense 
        Finance and Accounting Service on the basis of function 
        performed, together with the Secretary's assessment of the 
        feasibility of carrying out such a reorganization.
    (d) Submittal of Plan.--The plan shall be submitted to the 
Committee on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives not later than December 15, 
1998.

SEC. 1025. REPORT ON INVENTORY AND CONTROL OF MILITARY EQUIPMENT.

    (a) Report Required.--Not later than March 1, 1999, the Secretary 
of Defense shall submit to the Committee on Armed Services of the 
Senate and the Committee on National Security of the House of 
Representatives a report on the inventory and control of the military 
equipment of the Department of Defense as of the end of fiscal year 
1998. The report shall address the inventories of each of the Army, 
Navy, Air Force, and Marine Corps separately.
    (b) Content.--The report shall include the following:
            (1) For each item of military equipment in the inventory, 
        stated by item nomenclature--
                    (A) the quantity of the item in the inventory as of 
                the beginning of the fiscal year;
                    (B) the quantity of acquisitions of the item during 
                the fiscal year;
                    (C) the quantity of disposals of the item during 
                the fiscal year;
                    (D) the quantity of losses of the item during the 
                performance of military missions during the fiscal 
                year; and
                    (E) the quantity of the item in the inventory as of 
                the end of the fiscal year.
            (2) A reconciliation of the quantity of each item in the 
        inventory as of the beginning of the fiscal year with the 
        quantity of the item in the inventory as of the end of fiscal 
        year.
            (3) For each item of military equipment that cannot be 
        reconciled--
                    (A) an explanation of why the quantities cannot be 
                reconciled; and
                    (B) a discussion of the remedial actions planned to 
                be taken, including target dates for accomplishing the 
                remedial actions.
            (4) Supporting schedules identifying the location of each 
        item that are available to Congress or auditors of the 
        Comptroller General upon request.
    (c) Military Equipment Defined.--For the purposes of this section, 
the term ``military equipment'' means all equipment that is used in 
support of military missions and is maintained on the visibility 
systems of the Army, Navy, Air Force, or Marine Corps.
    (d) Inspector General Review.--Not later than June 1, 1999, the 
Inspector General of the Department of Defense shall review the report 
submitted to the committees under subsection (a) and shall submit to 
the committees any comments that the Inspector General considers 
appropriate.

SEC. 1026. REPORT ON CONTINUITY OF ESSENTIAL OPERATIONS AT RISK OF 
              FAILURE BECAUSE OF COMPUTER SYSTEMS THAT ARE NOT YEAR 
              2000 COMPLIANT.

    (a) Findings.--Congress makes the following findings:
            (1) Because of the way computers store and process dates, 
        most computers will not function properly, or at all, after 
        January 1, 2000, a problem that is commonly referred to as the 
        year 2000 problem.
            (2) The United States Government is currently conducting a 
        massive program to identify and correct computer systems that 
        suffer from the year 2000 problem.
            (3) The cost to the Department of Defense of correcting 
        this problem in its computer systems has been estimated to be 
        more than $1,000,000,000.
            (4) Other nations have failed to initiate aggressive action 
        to identify and correct the year 2000 problem within their own 
        computers.
            (5) Unless other nations initiate aggressive actions to 
        ensure the reliability and stability of certain communications 
        and strategic systems, United States nationally security may be 
        jeopardized.
    (b) Report Required.--The Secretary of Defense and the Director of 
Central Intelligence shall jointly submit to the Committee on Armed 
Services of the Senate and the Committee on National Security of the 
House of Representatives a report on the plans of the Department of 
Defense and the intelligence community for ensuring the continuity of 
performance of essential operations that are at risk of failure because 
of computer systems and other information and support systems that are 
not year 2000 compliant.
    (c) Content.--The report shall contain, at a minimum, the 
following:
            (1) A prioritization of mission critical systems to ensure 
        that the most critical systems have the highest priority for 
        efforts to reprogram computers to be year 2000 compliant.
            (2) A discussion of the private and other public 
        information and support systems relied on by the national 
        security community, including the intelligence community, and 
        the efforts under way to ensure that those systems are year 
        2000 compliant.
            (3) The efforts under way to repair the underlying 
        operating systems and infrastructure.
            (4) The plans for comprehensive testing of Department of 
        Defense systems, including simulated operational tests in 
        mission areas.
            (5) A comprehensive contingency plan, for the entire 
        national security community, which provides for resolving 
        emergencies resulting from a system that is not year 2000 
        compliant and includes provision for the creation of crisis 
        action teams for use in resolving such emergencies.
            (6) A discussion of the efforts undertaken to ensure the 
        continued reliability of service on the systems used by the 
        President and other leaders of the United States for 
        communicating with the leaders of other nations.
            (7) A discussion of the vulnerability of allied armed 
        forces to failure systems that are not, or have critical 
        components that are not, year 2000 compliant, together with an 
        assessment of the potential problems for interoperability among 
        the Armed Forces of the United States and allied armed forces 
        because of the potential for failure of such systems.
            (8) An estimate of the total cost of making the computer 
        systems and other information and support systems comprising 
        the computer networks of the Department of Defense and the 
        intelligence community year 2000 compliant.
            (9) The countries that have critical computer-based systems 
        any disruption of which, due to not being year 2000 compliant, 
        would cause a significant potential national security risk to 
        the United States.
            (10) A discussion of the cooperative arrangements between 
        the United States and other nations to assist those nations in 
        identifying and correcting (to the extent necessary to meet 
        national security interests of the United States) any problems 
        in their communications and strategic systems, or other systems 
        identified by the Secretary of Defense, that make the systems 
        not year 2000 compliant.
            (11) A discussion of the threat posed to the national 
        security interests of the United States from any potential 
        failure of strategic systems of foreign countries that are not 
        year 2000 compliant.
    (d) Submittal.--The report shall be submitted not later than March 
31, 1999, in classified form and, as necessary, unclassified form.
    (e) International Cooperative Arrangements.--The Secretary of 
Defense, with the concurrence of the Secretary of State may enter into 
a cooperative arrangement with a representative of any foreign 
government to provide for the United States to assist the foreign 
government in identifying and correcting (to the extent necessary to 
meet national security interests of the United States) any problems in 
communications, strategic, or other systems of that foreign government 
that make the systems not year 2000 compliant.
    (f) Year 2000 Compliant.--In this section, the term ``year 2000 
compliant'', with respect to a computer system or any other information 
or support system, means that the programs of the system correctly 
recognize dates in years after 1999 as being dates after 1999 for the 
purposes of program functions for which the correct date is relevant to 
the performance of the functions.

SEC. 1027. REPORTS ON NAVAL SURFACE FIRE-SUPPORT CAPABILITIES.

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

SEC. 1028. REPORT ON ROLES IN DEPARTMENT OF DEFENSE AVIATION ACCIDENT 
              INVESTIGATIONS.

    (a) Report Required.--Not later than March 31, 1999, the Secretary 
of Defense shall submit to Congress a report on the roles of the Office 
of the Secretary of Defense and the Joint Staff in the investigation of 
Department of Defense aviation accidents.
    (b) Content of Report.--The report shall include the following:
            (1) An assessment of whether the Office of the Secretary of 
        Defense and the Joint Staff should have more direct involvement 
        in the investigation of military aviation accidents.
            (2) The advisability of the Office of the Secretary of 
        Defense, the Joint Staff, or another Department of Defense 
        entity independent of the military departments supervising the 
        conduct of aviation accident investigations.
            (3) An assessment of the minimum training and experience 
        required for aviation accident investigation board presidents 
        and board members.

SEC. 1029. STRATEGIC PLAN FOR EXPANDING DISTANCE LEARNING INITIATIVES.

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

SEC. 1030. REPORT ON INVOLVEMENT OF ARMED FORCES IN CONTINGENCY AND 
              ONGOING OPERATIONS.

    (a) Report Required.--Not later than January 31, 1999, the 
Secretary of Defense shall submit to the congressional defense 
committees a report on the involvement of the Armed Forces of the 
United States in major contingency operations and major ongoing 
operations since the end of the Persian Gulf War, including such 
operations as the involvement in the Stabilization Force in Bosnia and 
Herzegovina, Operation Southern Watch, and Operation Northern Watch. 
The report shall contain the following:
            (1) A discussion of the effects of that involvement on 
        retention and reenlistment of personnel in the Armed Forces.
            (2) The extent to which the use of combat support and 
        combat service support personnel and equipment of the Armed 
        Forces in the operations has resulted in shortages of Armed 
        Forces personnel and equipment in other regions of the world.
            (3) The accounts from which funds have been drawn to pay 
        for the operations and the specific programs for which the 
        funds were available until diverted to pay for the operations.
            (4) The vital interests of the United States that are 
        involved in each operation or, if none, the interests of the 
        United States that are involved in each operation and a 
        characterization of those interests.
            (5) What clear and distinct objectives guide the activities 
        of United States forces in each operation.
            (6) What the President has identified on the basis of those 
        objectives as the date, or the set of conditions, that defines 
        the end of each operation.
    (b) Form of Report.--The report shall be submitted in unclassified 
form, but may also be submitted in a classified form if necessary.
    (c) Major Operation Defined.--For the purposes of this section, a 
contingency operation or an ongoing operation is a major contingency 
operation or a major ongoing operation, respectively, if the operation 
involves more than 500 members of the Armed Forces.

SEC. 1031. SUBMISSION OF REPORT ON OBJECTIVES OF A CONTINGENCY 
              OPERATION WITH FIRST REQUEST FOR FUNDING THE OPERATION.

    (a) Findings.--Congress makes the following findings:
            (1) On May 3, 1994, the President issued Presidential 
        Decision Directive 25 declaring that American participation in 
        United Nations and other peace operations would depend in part 
        on whether the role of United States forces is tied to clear 
        objectives and an endpoint for United States participation can 
        be identified.
            (2) Between that date and mid-1998, the President and other 
        executive branch officials have obligated or requested 
        appropriations of approximately $9,400,000,000 for military-
        related operations throughout Bosnia and Herzegovina without 
        providing to Congress, in conjunction with the budget 
        submission for any fiscal year, a strategic plan for such 
        operations under the criteria set forth in that Presidential 
        Decision Directive.
            (3) Between November 27, 1995, and mid-1998 the President 
        has established three deadlines, since elapsed, for the 
        termination of United States military-related operations 
        throughout Bosnia and Herzegovina.
            (4) On December 17, 1997, the President announced that 
        United States ground combat forces would remain in Bosnia and 
        Herzegovina for an unknown period of time.
            (5) Approximately 47,880 United States military personnel 
        (excluding personnel serving in units assigned to the Republic 
        of Korea) have participated in 14 international contingency 
        operations between fiscal years 1991 and 1998.
            (6) The 1998 posture statements of the Navy and Air Force 
        included declarations that the pace of military operations over 
        fiscal year 1997 adversely affected the readiness of non-
        deployed forces, personnel retention rates, and spare parts 
        inventories of the Navy and Air Force.
    (b) Information To Be Reported With Funding Request.--Section 113 
of title 10, United States Code, is amended by adding at the end the 
following:
    ``(l) Information To Accompany Initial Funding Request for 
Contingency Operation.--Whenever the President submits to Congress a 
request for appropriations for costs associated with a contingency 
operation that involves, or likely will involve, the deployment of more 
than 500 members of the armed forces, the Secretary of Defense shall 
submit to Congress a report on the objectives of the operation. The 
report shall include a discussion of the following:
            ``(1) What clear and distinct objectives guide the 
        activities of United States forces in the operation.
            ``(2) What the President has identified on the basis of 
        those objectives as the date, or the set of conditions, that 
        defines the endpoint of the operation.''.

SEC. 1032. REPORTS ON THE DEVELOPMENT OF THE EUROPEAN SECURITY AND 
              DEFENSE IDENTITY.

    (a) Requirement for Reports.--The Secretary of Defense shall submit 
to the congressional defense committees in accordance with this section 
reports on the development of the European Security and Defense 
Identity (ESDI) within the NATO Alliance that would enable the Western 
European Union (WEU), with the consent of the NATO Alliance, to assume 
the political control and strategic direction of NATO assets and 
capabilities made available by the Alliance.
    (b) Reports To Be Submitted.--The reports required to be submitted 
under subsection (a) are as follows:
            (1) An initial report, submitted not later than December 
        15, 1998, that contains a discussion of the actions taken, and 
        the plans for future actions, to build the European Security 
        and Defense Identity, together with the matters required under 
        subsection (c).
            (2) A semiannual report on the progress made toward 
        establishing the European Security and Defense Identity, 
        submitted not later than March 15 and December 15 of each year 
        after 1998.
    (c) Content of Reports.--The Secretary shall include in each report 
under this section the following:
            (1) A discussion of the arrangements between NATO and the 
        Western European Union for the release, transfer, monitoring, 
        return, and recall of NATO assets and capabilities.
            (2) A discussion of the development of such planning and 
        other capabilities by the Western European Union that are 
        necessary to provide political control and strategic direction 
        of NATO assets and capabilities.
            (3) A discussion of the development of terms of reference 
        for the Deputy Supreme Allied Commander, Europe, with respect 
        to the European Security and Defense Identity.
            (4) A discussion of the arrangements for the assignment or 
        appointment of NATO officers to serve in two positions 
        concurrently (commonly referred to as ``dual-hatting'').
            (5) A discussion of the development of the Combined Joint 
        Task Force (CJTF) concept, including lessons-learning from the 
        NATO-led Stabilization Force in Bosnia.
            (6) Identification within the NATO Alliance of the types of 
        separable but not separate capabilities, assets, and support 
        assets for Western European Union-led operations.
            (7) Identification of separable but not separate 
        headquarters, headquarters elements, and command positions for 
        command and conduct of Western European Union-led operations.
            (8) The conduct by NATO, at the request of and in 
        coordination with the Western European Union, of military 
        planning and exercises for illustrative missions.
            (9) A discussion of the arrangements between NATO and the 
        Western European Union for the sharing of information, 
        including intelligence.
            (10) Such other information as the Secretary considers 
        useful for a complete understanding of the establishment of the 
        European Security and Defense Identity within the NATO 
        Alliance.
    (d) Termination of Semiannual Reporting Requirement.--No report is 
required under subsection (b)(2) after the Secretary submits under that 
subsection a report in which the Secretary states that the European 
Security and Defense Identity has been fully established.

SEC. 1033. REPORT ON REDUCTION OF INFRASTRUCTURE COSTS AT BROOKS AIR 
              FORCE BASE, TEXAS.

    (a) Requirement.--Not later than December 31, 1998, the Secretary 
of the Air Force shall, in consultation with the Secretary of Defense, 
submit to the congressional defense committees a report on means of 
reducing significantly the infrastructure costs at Brooks Air Force 
Base, Texas, while also maintaining or improving the support for 
Department of Defense missions and personnel provided through Brooks 
Air Force Base.
    (b) Elements.--The report shall include the following:
            (1) A description of any barriers (including barriers under 
        law and through policy) to improved infrastructure management 
        at Brooks Air Force Base.
            (2) A description of means of reducing infrastructure 
        management costs at Brooks Air Force Base through cost-sharing 
        arrangements and more cost-effective utilization of property.
            (3) A description of any potential public partnerships or 
        public-private partnerships to enhance management and 
        operations at Brooks Air Force Base.
            (4) An assessment of any potential for expanding 
        infrastructure management opportunities at Brooks Air Force 
        Base as a result of initiative considered at the Base or at 
        other installations.
            (5) An analysis (including appropriate data) on current and 
        projected costs of the ownership or lease of Brooks Air Force 
        Base under a variety of ownership or leasing scenarios, 
        including the savings that would accrue to the Air Force under 
        such scenarios and a schedule for achieving such savings.
            (6) Any recommendations relating to reducing the 
        infrastructure costs at Brooks Air Force Base that the 
        Secretary considers appropriate.

SEC. 1034. ANNUAL GAO REVIEW OF F/A-18E/F AIRCRAFT PROGRAM.

    (a) Review and Report Required.--Not later than June 15 of each 
year, the Comptroller General shall review the F/A-18E/F aircraft 
program and submit to Congress a report on the results of the review. 
The Comptroller General shall also submit to Congress with each report 
a certification regarding whether the Comptroller General has had 
access to sufficient information to make informed judgments on the 
matters covered by the report.
    (b) Content of Report.--The report submitted on the program each 
year shall include the following:
            (1) The extent to which engineering and manufacturing 
        development and operational test and evaluation under the 
        program are meeting the goals established for engineering and 
        manufacturing development and operational test and evaluation 
        under the program, including the performance, cost, and 
        schedule goals.
            (2) The status of modifications expected to have a 
        significant effect on the cost or performance of the F/A-18E/F 
        aircraft.
    (c) Duration of Requirement.--The Comptroller General shall submit 
the first report under this section not later than June 15, 1999. No 
report is required under this section after the full rate production 
contract is awarded under the program.
    (d) Requirement to Support Annual GAO Review.--The Secretary of 
Defense and the prime contractors under the F/A-18E/F aircraft program 
shall timely provide the Comptroller General with such information on 
the program, including information on program performance, as the 
Comptroller General considers necessary to carry out the 
responsibilities under this section.

SEC. 1035. REVIEW AND REPORT REGARDING THE DISTRIBUTION OF NATIONAL 
              GUARD RESOURCES AMONG STATES.

    (a) Requirement for Review.--The Chief of the National Guard Bureau 
shall review the process used for allocating and distributing 
resources, including all categories of full-time manning, among the 
States for the National Guard of the States.
    (b) Purpose of Review.--The purpose of the review is to determine 
whether the process provides for adequately funding the National Guard 
of the States that have within the National Guard no unit or few (15 or 
less) units categorized in readiness tiers I, II, and III.
    (c) Matters Reviewed.--The matters reviewed shall include the 
following:
            (1) The factors considered for the process of determining 
        the distribution of resources, including the weights assigned 
        to the factors.
            (2) The extent to which the process results in funding for 
        the units of the States described in subsection (b) at the 
        levels necessary to optimize the preparedness of the units to 
        meet the mission requirements applicable to the units.
            (3) The effects that funding at levels determined under the 
        process will have on the National Guard of those States in the 
        future, including the effects on all categories of full-time 
        manning, and unit readiness, recruitment, and continued use of 
        existing National Guard armories and other facilities.
    (d) Report.--Not later than March 15, 1999, the Chief of the 
National Guard Bureau shall submit a report on the results of the 
review to the congressional defense committees.

SEC. 1036. REPORT ON THE PEACEFUL EMPLOYMENT OF FORMER SOVIET EXPERTS 
              ON WEAPONS OF MASS DESTRUCTION.

    (a) Report Required.--Not later than January 31, 1999, the 
Secretary of Defense shall submit to the congressional defense 
committees a report on the need for and the feasibility of programs, 
other than those involving the development or promotion of commercially 
viable proposals, to further United States nonproliferation objectives 
regarding former Soviet experts in ballistic missiles or weapons of 
mass destruction. The report shall contain an analysis of the 
following:
            (1) The number of such former Soviet experts who are, or 
        are likely to become within the coming decade, unemployed, 
        underemployed, or unpaid and, therefore, at risk of accepting 
        export orders, contracts, or job offers from countries 
        developing weapons of mass destruction.
            (2) The extent to which the development of nonthreatening, 
        commercially viable products and services, with or without 
        United States assistance, can reasonably be expected to employ 
        such former experts.
            (3) The extent to which projects that do not involve the 
        development of commercially viable products or services could 
        usefully employ additional such former experts.
            (4) The likely cost and benefits of a 10-year program of 
        United States or international assistance to projects of the 
        sort discussed in paragraph (3).
    (b) Consultation Requirement.--The report shall be prepared in 
consultation with the Secretary of State, the Secretary of Energy, and 
such other officials as the Secretary of Defense considers appropriate.

                       Subtitle D--Other Matters

SEC. 1041. COOPERATIVE COUNTERPROLIFERATION PROGRAM.

    (a) Assistance Authorized.--Subject to subsection (b), the 
Secretary of Defense may provide a foreign country or any of its 
instrumentalities with assistance that the Secretary determines 
necessary for destroying, removing, or obtaining from that country--
            (1) weapons of mass destruction; or
            (2) materials, equipment, or technology related to the 
        delivery or development of weapons of mass destruction.
    (b) Certification Required.--(1) Not later than 15 days before 
providing assistance under subsection (a) regarding weapons, materials, 
equipment, or technology referred to in that subsection, the Secretary 
of Defense shall certify to the congressional defense committees that 
the weapons, materials, equipment, or technology meet each of the 
following requirements:
            (A) The weapons, materials, equipment, or technology are at 
        risk of being sold or otherwise transferred to a restricted 
        foreign state or entity.
            (B) The transfer of the weapons, materials, equipment, or 
        technology would pose a significant threat to national security 
        interests of the United States or would significantly advance a 
        foreign country's weapon program that threatens national 
        security interests of the United States.
            (C) Other options for securing or otherwise preventing the 
        transfer of the weapons, materials, equipment, or technology 
        have been considered and rejected as ineffective or inadequate.
    (2) The Secretary may waive the deadline for submitting a 
certification required under paragraph (1) in any case if the Secretary 
determines that compliance with the requirement would compromise 
national security objectives of the United States in that case. The 
Secretary shall promptly notify the Chairman and ranking minority 
members of the congressional defense committees regarding the waiver 
and submit the certification not later than 45 days after completing 
the action of providing the assistance in the case.
    (3) No assistance may be provided under subsection (a) in any case 
unless the Secretary submits the certification required under paragraph 
(1) or a notification required under paragraph (2) in such case.
    (c) Annual Reports.--(1) Not later than January 30 of each year, 
the Secretary of Defense shall submit to the congressional defense 
committees a report on the activities carried out under this section. 
The first annual report shall be submitted not later than January 30, 
2000.
    (2) Each annual report shall set forth in separate sections for the 
previous year the following:
            (A) The assistance provided under this section and the 
        purposes for which provided.
            (B) The sources of funds for the assistance provided.
            (C) Any assistance provided for the Department of Defense 
        under this section by any other department or agency of the 
        Federal Government, together with the source or sources of that 
        assistance.
            (D) Any other information that the Secretary considers 
        appropriate for informing the appropriate congressional 
        committees about actions taken under this section.
    (d) Definitions.--In this section:
            (1) The term ``restricted foreign state or entity'', with 
        respect to weapons, materials, equipment, or technology covered 
        by a certification of the Secretary of Defense under subsection 
        (b), means--
                    (A) any foreign country the government of which has 
                repeatedly provided support for acts of international 
                terrorism, as determined by the Secretary of State 
                determines under section 620A of the Foreign Assistance 
                Act of 1961 (22 U.S.C. 2371); or
                    (B) any foreign state or entity that the Secretary 
                of Defense determines would constitute a military 
                threat to the territory of the United States, national 
                security interests of the United States, or allies of 
                the United States, if that foreign state or entity were 
                to possess the weapons, materials, equipment, or 
                technology.
            (2) The term ``weapon of mass destruction'' has the meaning 
        given that term in section 1402 of the Defense Against Weapons 
        of Mass Destruction Act of 1996 (50 U.S.C. 2302(1)).

SEC. 1042. EXTENSION OF COUNTERPROLIFERATION AUTHORITIES FOR SUPPORT OF 
              UNITED NATIONS SPECIAL COMMISSION ON IRAQ.

    Section 1505 of the Weapons of Mass Destruction Control Act of 1992 
(title XV of Public Law 102-484; 22 U.S.C. 5859a) is amended--
            (1) in subsection (d)(3), by striking out ``or $15,000,000 
        for fiscal year 1998'' and inserting in lieu thereof ``or 
        $15,000,000 for each of fiscal years 1998 and 1999''; and
            (2) in subsection (f), by striking out ``fiscal year 1998'' 
        and inserting in lieu thereof ``fiscal year 1999''.

SEC. 1043. ONE-YEAR EXTENSION OF LIMITATION ON RETIREMENT OR 
              DISMANTLEMENT OF STRATEGIC NUCLEAR DELIVERY SYSTEMS.

    Section 1302 of the National Defense Authorization Act for Fiscal 
Year 1998 (Public Law 105-85; 111 Stat. 1948) is amended--
            (1) by striking out ``during fiscal year 1998'' each place 
        it appears and inserting in lieu thereof ``during any fiscal 
        year''; and
            (2) by adding at the end the following:
    ``(g) Applicability to Fiscal Years 1998 and 1999.--This section 
applies to fiscal years 1998 and 1999.''.

SEC. 1044. DIRECT-LINE COMMUNICATION BETWEEN UNITED STATES AND RUSSIAN 
              COMMANDERS OF STRATEGIC FORCES.

    (a) Sense of Congress.--It is the sense of Congress that a direct 
line of communication between the commanders in chief of the United 
States Strategic and Space Commands and the Commander of the Russian 
Strategic Rocket Forces could be a useful confidence-building tool.
    (b) Report.--Not later than two months after the date of the 
enactment of this Act, the Secretary of Defense shall submit to the 
Committee on Armed Services of the Senate and to the Committee on 
National Security of the House of Representatives a report on the 
feasibility of initiating discussions on direct-line communication 
described in subsection (a).

SEC. 1045. CHEMICAL WARFARE DEFENSE.

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

SEC. 1046. ACCOUNTING TREATMENT OF ADVANCE PAYMENT OF PERSONNEL.

    (a) Treatment.--Section 1006 of title 37, United States Code, is 
amended by adding at the end the following:
    ``(l) Notwithstanding any provision of chapter 15 of title 31, an 
amount paid a member under this section in advance of the fiscal year 
in which the member's entitlement to that amount accrues--
            ``(1) shall be treated as being obligated and expended in 
        that fiscal year; and
            ``(2) may not be treated as reducing the unobligated 
        balance of the appropriations available for military personnel, 
        Reserve personnel, or National Guard personnel, as the case may 
        be, for the fiscal year in which paid.''.
    (b) Applicability.--Subsection (l) of section 1006 of title 37, 
United States Code (as added by subsection (a)), shall apply to advance 
payments made under such section in fiscal years beginning after 
September 30, 1997.

SEC. 1047. REINSTATEMENT OF DEFINITION OF FINANCIAL INSTITUTION IN 
              AUTHORITIES FOR REIMBURSING DEFENSE PERSONNEL FOR 
              GOVERNMENT ERRORS IN DIRECT DEPOSITS OF PAY.

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

SEC. 1048. PILOT PROGRAM ON ALTERNATIVE NOTICE OF RECEIPT OF LEGAL 
              PROCESS FOR GARNISHMENT OF FEDERAL PAY FOR CHILD SUPPORT 
              AND ALIMONY.

    (a) Program Required.--The Secretary of Defense shall conduct a 
pilot program on alternative notice procedures for withholding or 
garnishment of pay for the payment of child support and alimony under 
section 459 of the Social Security Act (42 U.S.C. 659).
    (b) Purpose.--The purpose of the pilot program is to test the 
efficacy of providing notice in accordance with subsection (c) to the 
person whose pay is to be withheld or garnisheed.
    (c) Notice Requirements.--Under the pilot program, if an agent 
designated under paragraph (1) of section 459(c) of the Social Security 
Act for members of the Armed Forces or employees of the Department of 
Defense receives notice or service of a court order, notice to 
withhold, or other legal process regarding a child support or alimony 
obligation of such a member or employee, the agent may omit from the 
notice that the agent sends to the member or employee under paragraph 
(2)(A) of that section the copy of the notice or service received by 
the agent. The agent shall include in the notice, which shall be in 
writing, the following:
            (1) A description of the court order, notice to withhold, 
        or other legal process.
            (2) The identity of the court, administrative agency, or 
        official that issued the order.
            (3) The case number assigned by the court, administrative 
        agency, or official.
            (4) The amount of the obligation.
            (5) The name of each person for whom the support or alimony 
        is provided.
            (6) The name, address, and telephone number of the person 
        or office from which a copy of the notice or service may be 
        obtained.
    (d) Period of Pilot Program.--The Secretary shall commence the 
pilot program not later than 90 days after the date of the enactment of 
this Act. The pilot program shall terminate on September 30, 2000.
    (e) Report.--Not later than April 1, 2001, the Secretary shall 
submit a report on the pilot program to Congress. The report shall 
contain the following:
            (1) The number of notices that were issued in accordance 
        with subsection (c) during the period of the pilot program.
            (2) The number of persons who requested copies of the 
        notice or service of the court order, notice of withholding, or 
        other legal process involved.
            (3) Any communication received by the Secretary or an agent 
        referred to in subsection (c) complaining about not being 
        furnished a copy of the notice or service of the court order, 
        notice of withholding, or other legal process with the agent's 
        notice.

SEC. 1049. COSTS PAYABLE TO THE DEPARTMENT OF DEFENSE AND OTHER FEDERAL 
              AGENCIES FOR SERVICES PROVIDED TO THE DEFENSE COMMISSARY 
              AGENCY.

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

SEC. 1050. COLLECTION OF DISHONORED CHECKS PRESENTED AT COMMISSARY 
              STORES.

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

SEC. 1051. DEFENSE COMMISSARY AGENCY TELECOMMUNICATIONS.

    (a) Use of FTS2000/2001.--The Secretary of Defense shall prescribe 
in regulations authority for the Defense Commissary Agency to meet its 
telecommunication requirements by obtaining telecommunication services 
and related items under the FTS2000/2001 contract through a frame relay 
system procured for the agency.
    (b) Report.--Upon the initiation of telecommunication service for 
the Defense Commissary Agency under the FTS2000/2001 contract through 
the frame relay system, the Secretary of Defense shall submit to 
Congress a notification that the service has been initiated.
    (c) Definition.--In this section, the term ``FTS2000/2001 
contract'' means the contract for the provision of telecommunication 
services for the Federal Government that was entered into by the 
Defense Information Technology Contract Organization.

SEC. 1052. RESEARCH GRANTS COMPETITIVELY AWARDED TO SERVICE ACADEMIES.

    (a) United States Military Academy.--(1) Chapter 403 of title 10, 
United States Code, is amended by adding at the end the following new 
section:
``Sec. 4358. Research grants: acceptance, application, and use
    ``(a) Acceptance of Competitively Awarded Grants.--The 
Superintendent of the Academy may accept a research grant that is 
awarded on a competitive basis by a source referred to in subsection 
(b) for a research project that is to be carried out by a professor or 
instructor of the Academy for a scientific, literary, or educational 
purpose.
    ``(b) Application for Grants.--A professor or instructor of the 
Academy, together with the Superintendent, may apply for a research 
grant referred to in subsection (a) from any corporation, fund, 
foundation, educational institution, or similar entity that is 
organized and operated primarily for scientific, literary, or 
educational purposes.
    ``(c) Administration of Grant Proceeds.--The Superintendent shall 
establish a special account for administering the proceeds of a 
research grant accepted under subsection (a) and shall use the account 
for the administration of such proceeds in accordance with applicable 
regulations and the terms and conditions of the grant.
    ``(d) Related Expenses.--Subject to such limitations as may be 
provided in appropriations Acts, appropriations available for the 
Academy may be used to pay expenses incurred by the Academy in pursuit 
of an award of a research grant authorized to be accepted under 
subsection (a).
    ``(e) Regulations.--The Secretary of the Army shall prescribe in 
regulations the requirements, restrictions, and conditions that the 
Secretary considers appropriate for the exercise and administration of 
the authority under this section.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``4358. Research grants: acceptance, application, and use.''.
    (b) United States Naval Academy.--(1) Chapter 603 of title 10, 
United States Code, is amended by adding at the end the following new 
section:
``Sec. 6977. Research grants: acceptance, application, and use
    ``(a) Acceptance of Competitively Awarded Grants.--The 
Superintendent of the Academy may accept a research grant that is 
awarded on a competitive basis by a source referred to in subsection 
(b) for a research project that is to be carried out by a professor or 
instructor of the Academy for a scientific, literary, or educational 
purpose.
    ``(b) Application for Grants.--A professor or instructor of the 
Academy, together with the Superintendent, may apply for a research 
grant referred to in subsection (a) from any corporation, fund, 
foundation, educational institution, or similar entity that is 
organized and operated primarily for scientific, literary, or 
educational purposes.
    ``(c) Administration of Grant Proceeds.--The Superintendent shall 
establish a special account for administering the proceeds of a 
research grant accepted under subsection (a) and shall use the account 
for the administration of such proceeds in accordance with applicable 
regulations and the terms and conditions of the grant.
    ``(d) Related Expenses.--Subject to such limitations as may be 
provided in appropriations Acts, appropriations available for the 
Academy may be used to pay expenses incurred by the Academy in pursuit 
of an award of a research grant authorized to be accepted under 
subsection (a).
    ``(e) Regulations.--The Secretary of the Navy shall prescribe in 
regulations the requirements, restrictions, and conditions that the 
Secretary considers appropriate for the exercise and administration of 
the authority under this section.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``6977. Research grants: acceptance, application, and use.''.
    (c) United States Air Force Academy.--(1) Chapter 903 of title 10, 
United States Code, is amended by adding at the end the following new 
section:
``Sec. 9357. Research grants: acceptance, application, and use
    ``(a) Acceptance of Competitively Awarded Grants.--The 
Superintendent of the Academy may accept a research grant that is 
awarded on a competitive basis by a source referred to in subsection 
(b) for a research project that is to be carried out by a professor or 
instructor of the Academy for a scientific, literary, or educational 
purpose.
    ``(b) Application for Grants.--A professor or instructor of the 
Academy, together with the Superintendent, may apply for a research 
grant referred to in subsection (a) from any corporation, fund, 
foundation, educational institution, or similar entity that is 
organized and operated primarily for scientific, literary, or 
educational purposes.
    ``(c) Administration of Grant Proceeds.--The Superintendent shall 
establish a special account for administering the proceeds of a 
research grant accepted under subsection (a) and shall use the account 
for the administration of such proceeds in accordance with applicable 
regulations and the terms and conditions of the grant.
    ``(d) Related Expenses.--Subject to such limitations as may be 
provided in appropriations Acts, appropriations available for the 
Academy may be used to pay expenses incurred by the Academy in pursuit 
of an award of a research grant authorized to be accepted under 
subsection (a).
    ``(e) Regulations.--The Secretary of the Air Force shall prescribe 
in regulations the requirements, restrictions, and conditions that the 
Secretary considers appropriate for the exercise and administration of 
the authority under this section.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``9357. Research grants: acceptance, application, and use.''.

SEC. 1053. CLARIFICATION AND SIMPLIFICATION OF RESPONSIBILITIES OF 
              INSPECTORS GENERAL REGARDING WHISTLEBLOWER PROTECTIONS.

    (a) Roles of Inspectors General of the Armed Forces.--(1) 
Subsection (c) of section 1034 of title 10, United States Code, is 
amended--
            (A) by striking out paragraph (1) and inserting in lieu 
        thereof the following:
    ``(1) If a member of the armed forces submits to an Inspector 
General an allegation that a personnel action prohibited by subsection 
(b) has been taken (or threatened) against the member with respect to a 
communication described in paragraph (2), the Inspector General of the 
Department of Defense or the Inspector General of the armed force 
concerned shall take the action required under paragraph (3).''; and
            (B) by striking out paragraph (3) and inserting in lieu 
        thereof the following:
    ``(3) The Inspector General receiving an allegation as described in 
paragraph (1) shall expeditiously determine whether there is sufficient 
evidence to warrant an investigation of the allegation. Upon 
determining that an investigation is warranted, the Inspector General 
shall expeditiously investigate the allegation. In the case of an 
allegation received by the Inspector General of the Department of 
Defense, the Inspector General may delegate that duty to the Inspector 
General of the armed force concerned. Neither an initial determination 
nor an investigation is required under this paragraph in the case of an 
allegation made more than 60 days after the date on which the member 
becomes aware of the personnel action that is the subject of the 
allegation.
    ``(4) If an Inspector General within a military department receives 
an allegation covered by this subsection, that Inspector General shall 
promptly notify the Inspector General of the Department of Defense of 
the allegation in accordance with regulations prescribed under 
subsection (h).
    ``(5) The Inspector General of the Department of Defense, or the 
Inspector General of the Department of Transportation (in the case of a 
member of the Coast Guard when the Coast Guard is not operating as a 
service in the Navy), shall ensure that the inspector general 
conducting the investigation of an allegation under this paragraph is 
outside the immediate chain of command of both the member submitting 
the allegation and the individual or individuals alleged to have taken 
the retaliatory action.''.
    (2) Subsection (d) of such section is amended--
            (A) by striking out ``the Inspector General shall conduct'' 
        and inserting in lieu thereof ``an Inspector General shall 
        conduct''; and
            (B) by adding at the end the following: ``In the case of an 
        allegation received by the Inspector General of the Department 
        of Defense, the Inspector General may delegate that duty to the 
        Inspector General of the armed force concerned.''.
    (b) Mismanagement Covered by Protected Communications.--Subsection 
(c)(2)(B) of such section is amended by striking out ``Mismanagement'' 
and inserting in lieu thereof ``Gross mismanagement''.
    (c) Simplified Reporting and Notice Requirements.--(1) Paragraph 
(1) of subsection (e) of such section is amended--
            (A) by striking out ``the Inspector General shall submit a 
        report on'' and inserting in lieu thereof ``the Inspector 
        General conducting the investigation shall provide''; and
            (B) inserting ``shall transmit a copy of the report on the 
        results of the investigation to'' before ``the member of the 
        armed forces''.
    (2) Paragraph (2) of such subsection is amended by adding at the 
end the following: ``However, the copy need not include summaries of 
interviews conducted, nor any document acquired, during the course of 
the investigation. Such items shall be transmitted to the member if the 
member requests the items, whether before or after the copy of the 
report is transmitted to the member.''.
    (3) Paragraph (3) of such subsection is amended by striking out 
``90 days'' and inserting in lieu thereof ``120 days''.
    (d) Repeal of Post-Investigation Interview Requirement.--Subsection 
(h) of such section is repealed.
    (e) Inspector General Defined.--Subsection (j)(2) of such section 
is amended--
            (1) by redesignating subparagraph (B) as subparagraph (G) 
        and, in that subparagraph, by striking out ``an officer'' and 
        inserting in lieu thereof ``An officer'';
            (2) by striking out subparagraph (A) and inserting in lieu 
        thereof the following:
                    ``(A) The Inspector General of the Department of 
                Defense.
                    ``(B) The Inspector General of the Department of 
                Transportation, in the case of a member of the Coast 
                Guard when the Coast Guard is not operating as a 
                service in the Navy.
                    ``(C) The Inspector General of the Army, in the 
                case of a member of the Army.
                    ``(D) The Naval Inspector General, in the case of a 
                member of the Navy.
                    ``(E) The Inspector General of the Air Force, in 
                the case of a member of the Air Force.
                    ``(F) The Deputy Naval Inspector General for Marine 
                Corps Matters, in the case of a member of the Marine 
                Corps.''; and
            (3) in the matter preceding subparagraph (A), by striking 
        out ``means--'' and inserting in lieu thereof ``means the 
        following:''.
    (f) Technical and Conforming Amendments.--(1) Subsections (i) and 
(j) of such section are redesignated as subsections (h) and (i), 
respectively.
    (2) Subsection (b)(1)(B)(ii) of such section is amended by striking 
out ``subsection (j))'' and inserting in lieu thereof ``subsection (i)) 
or any other Inspector General appointed under the Inspector General 
Act of 1978''.

SEC. 1054. AMOUNTS RECOVERED FROM CLAIMS AGAINST THIRD PARTIES FOR LOSS 
              OR DAMAGE TO PERSONAL PROPERTY SHIPPED OR STORED AT 
              GOVERNMENT EXPENSE.

    (a) In General.--Chapter 163 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 2739. Amounts recovered from claims against third parties for 
              loss or damage to personal property shipped or stored at 
              Government expense
    ``(a) Crediting of Collections.--Amounts collected as described in 
subsection (b) by or for a military department in any fiscal year shall 
be credited to the appropriation that is available for that fiscal year 
for the military department for the payment of claims for loss or 
damage of personal property shipped or stored at Government expense. 
Amounts so credited shall be merged with the funds in the appropriation 
and shall be available for the same period and purposes as the funds 
with which merged.
    ``(b) Collections Covered.--An amount authorized for crediting in 
accordance with subsection (a) is any amount that a military department 
collects under sections 3711, 3716, 3717 and 3721 of title 31 from a 
third party for a loss or damage to personal property that occurred 
during shipment or storage of the property at Government expense and 
for which the Secretary of the military department paid the owner in 
settlement of a claim.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2739. Amounts recovered from claims against third parties for loss or 
                            damage to personal property shipped or 
                            stored at government expense.''.

SEC. 1055. ELIGIBILITY FOR ATTENDANCE AT DEPARTMENT OF DEFENSE DOMESTIC 
              DEPENDENT ELEMENTARY AND SECONDARY SCHOOLS.

    (a) Military Dependents.--Subsection (a) of section 2164 of title 
10, United States Code, is amended--
            (1) by designating the first sentence as paragraph (1);
            (2) by designating the second sentence as paragraph (2); 
        and
            (3) by adding at the end of paragraph (2), as so 
        designated, the following: ``The Secretary may also permit a 
        dependent of a member of the armed forces to enroll in such a 
        program if the dependent is residing in such a jurisdiction, 
        whether on or off a military installation, while the member is 
        assigned away from that jurisdiction on a remote or 
        unaccompanied assignment under permanent change of station 
        orders.''.
    (b) Employee Dependents.--Subsection (c)(2) of such section is 
amended by striking out subparagraph (B) and inserting in lieu thereof 
the following:
    ``(B) The Secretary may extend the enrollment of a dependent 
referred to in subparagraph (A) in the program for more than five 
consecutive school years if the Secretary determines that the dependent 
is eligible under paragraph (1), space is available in the program, and 
adequate arrangements are made for reimbursement of the Secretary for 
the costs to the Secretary of the educational services provided for the 
dependent. An extension shall be for only one school year, but the 
Secretary may authorize a successive extension each year for the next 
school year upon making the determinations required under the preceding 
sentence for that next school year.''.
    (c) Customs Service Employee Dependents in Puerto Rico.--(1) 
Subsection (c) of such section is further amended by adding at the end 
the following:
    ``(4)(A) A dependent of a United States Customs Service employee 
who resides in Puerto Rico but not on a military installation may 
enroll in an educational program provided by the Secretary pursuant to 
subsection (a) in Puerto Rico.
    ``(B) Notwithstanding the limitation on duration of enrollment set 
forth in paragraph (2), a dependent described in subparagraph (A) who 
is enrolled in an education program described in that subparagraph may 
be removed from the program only for good cause (as determined by the 
Secretary). No requirement under that paragraph for reimbursement of 
the Secretary for the costs of educational services provided for the 
dependent shall apply with respect to the dependent.
    ``(C) In the event of the death in the line of duty of an employee 
described in subparagraph (A), a dependent of the employee may remain 
enrolled in an educational program described in that subparagraph 
until--
            ``(i) the end of the academic year in which the death 
        occurs; or
            ``(ii) the dependent is removed for good cause (as so 
        determined).''.
    (2) The amendment made by paragraph (1) shall take effect on the 
date of enactment of this Act and apply to academic years beginning on 
or after that date.

SEC. 1056. FEES FOR PROVIDING HISTORICAL INFORMATION TO THE PUBLIC.

    (a) Army.--(1) Chapter 437 of title 10, United States Code, is 
amended by adding at the end the following:
``Sec. 4595. Army Military History Institute: fee for providing 
              historical information to the public
    ``(a) Authority.--Except as provided in subsection (b), the 
Secretary of the Army may charge a person a fee for providing the 
person with information requested by the person that is provided from 
the United States Army Military History Institute.
    ``(b) Exceptions.--A fee may not be charged under this section--
            ``(1) to a person for information that the person requests 
        to carry out a duty as a member of the armed forces or an 
        officer or employee of the United States; or
            ``(2) for a release of information under section 552 of 
        title 5.
    ``(c) Limitation on Amount of Fee.--The amount of the fee charged 
under this section for providing information may not exceed the cost of 
providing the information.
    ``(d) Retention of Fees.--Amounts received under subsection (a) for 
providing information in any fiscal year shall be credited to the 
appropriation or appropriations charged the costs of providing 
information to the public from the United States Army Military History 
Institute during that fiscal year.
    ``(e) Definitions.--In this section:
            ``(1) The term `United States Army Military History 
        Institute' means the archive for historical records and 
        materials of the Army that the Secretary of the Army designates 
        as the primary archive for such records and materials.
            ``(2) The terms `officer of the United States' and 
        `employee of the United States' have the meanings given those 
        terms in sections 2104 and 2105, respectively, of title 5.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following:

``4595. Army Military History Institute: fee for providing historical 
                            information to the public.''.
    (b) Navy.--(1) Chapter 649 of such title 10 is amended by adding at 
the end the following new section:
``Sec. 7582. Naval and Marine Corps Historical Centers: fee for 
              providing historical information to the public
    ``(a) Authority.--Except as provided in subsection (b), the 
Secretary of the Navy may charge a person a fee for providing the 
person with information requested by the person that is provided from 
the United States Naval Historical Center or the Marine Corps 
Historical Center.
    ``(b) Exceptions.--A fee may not be charged under this section--
            ``(1) to a person for information that the person requests 
        to carry out a duty as a member of the armed forces or an 
        officer or employee of the United States; or
            ``(2) for a release of information under section 552 of 
        title 5.
    ``(c) Limitation on Amount of Fee.--The amount of the fee charged 
under this section for providing information may not exceed the cost of 
providing the information.
    ``(d) Retention of Fees.--Amounts received under subsection (a) for 
providing information from the United States Naval Historical Center or 
the Marine Corps Historical Center in any fiscal year shall be credited 
to the appropriation or appropriations charged the costs of providing 
information to the public from that historical center during that 
fiscal year.
    ``(e) Definitions.--In this section:
            ``(1) The term `United States Naval Historical Center' 
        means the archive for historical records and materials of the 
        Navy that the Secretary of the Navy designates as the primary 
        archive for such records and materials.
            ``(2) The term `Marine Corps Historical Center' means the 
        archive for historical records and materials of the Marine 
        Corps that the Secretary of the Navy designates as the primary 
        archive for such records and materials.
            ``(3) The terms `officer of the United States' and 
        `employee of the United States' have the meanings given those 
        terms in sections 2104 and 2105, respectively, of title 5.''.
    (2) The heading of such chapter is amended by striking out 
``related''.
    (3)(A) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``7582. Naval and Marine Corps Historical Centers: fee for providing 
                            historical information to the public.''.
    (B) The item relating to such chapter in the tables of chapters at 
the beginning of subtitle C of title 10, United States Code, and the 
beginning of part IV of such subtitle is amended by striking out 
``Related''.
    (c) Air Force.--(1) Chapter 937 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 9594. Air Force Military History Institute: fee for providing 
              historical information to the public
    ``(a) Authority.--Except as provided in subsection (b), the 
Secretary of the Air Force may charge a person a fee for providing the 
person with information requested by the person that is provided from 
the United States Air Force Military History Institute.
    ``(b) Exceptions.--A fee may not be charged under this section--
            ``(1) to a person for information that the person requests 
        to carry out a duty as a member of the armed forces or an 
        officer or employee of the United States; or
            ``(2) for a release of information under section 552 of 
        title 5.
    ``(c) Limitation on Amount of Fee.--The amount of the fee charged 
under this section for providing information may not exceed the cost of 
providing the information.
    ``(d) Retention of Fees.--Amounts received under subsection (a) for 
providing information in any fiscal year shall be credited to the 
appropriation or appropriations charged the costs of providing 
information to the public from the United States Air Force Military 
History Institute during that fiscal year.
    ``(e) Definitions.--In this section:
            ``(1) The term `United States Air Force Military History 
        Institute' means the archive for historical records and 
        materials of the Air Force that the Secretary of the Air Force 
        designates as the primary archive for such records and 
        materials.
            ``(2) The terms `officer of the United States' and 
        `employee of the United States' have the meanings given those 
        terms in sections 2104 and 2105, respectively, of title 5.''.
    (2) The table of sections at the beginning of such chapter 937 is 
amended by adding at the end the following new item:

``9594. Air Force Military History Institute: fee for providing 
                            historical information to the public.''.

SEC. 1057. PERIODIC INSPECTION OF THE ARMED FORCES RETIREMENT HOME.

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

``SEC. 1518. INSPECTION OF RETIREMENT HOME.

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

SEC. 1058. TRANSFER OF F-4 PHANTOM II AIRCRAFT TO FOUNDATION.

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

SEC. 1059. ACT CONSTITUTING PRESIDENTIAL APPROVAL OF VESSEL WAR RISK 
              INSURANCE REQUESTED BY THE SECRETARY OF DEFENSE.

    Section 1205(b) of the Merchant Marine Act of 1936 (46 U.S.C. App. 
1285(b)) is amended by adding at the end the following: ``The signature 
of the President (or of an official designated by the President) on the 
agreement shall be treated as an expression of the approval required 
under section 1202(a) to provide the insurance.''.

SEC. 1060. COMMENDATION AND MEMORIALIZATION OF THE UNITED STATES NAVY 
              ASIATIC FLEET.

    (a) Findings.--Congress makes the following findings:
            (1) The United States established the Asiatic Fleet of the 
        Navy in 1910 to protect American nationals, policies, and 
        possessions in the Far East.
            (2) The sailors and Marines of the Asiatic Fleet ensured 
        the safety of United States citizens and foreign nationals, and 
        provided humanitarian assistance, in that region during the 
        Chinese civil war, the Yangtze Flood of 1931, and the outbreak 
        of Sino-Japanese hostilities.
            (3) In 1940, due to deteriorating political relations and 
        increasing tensions between the United States and Japan, a 
        reinforced Asiatic Fleet began concentrating on the defense of 
        the Philippines and engaged in extensive training to ensure 
        maximum operational readiness for any eventuality.
            (4) Following the declaration of war against Japan, the 
        warships, submarines, and aircraft of the Asiatic Fleet singly 
        or in task forces courageously fought many naval battles 
        against a superior Japanese armada.
            (5) The Asiatic Fleet directly suffered the loss of 22 
        ships, 1,826 men killed or missing in action, and 518 men 
        captured and imprisoned under the worst of conditions with many 
        of them dying while held as prisoners of war.
    (b) Commendation.--Congress--
            (1) commends the personnel who served in the Asiatic Fleet 
        of the United States Navy during the period 1910 to 1942; and
            (2) honors those who gave their lives in the line of duty 
        while serving in the Asiatic Fleet.
    (c) United States Navy Asiatic Fleet Memorial Day.--The President 
is authorized and requested to issue a proclamation designating March 
1, 1999 as ``United States Navy Asiatic Fleet Memorial Day'' and 
calling upon the people of the United States to observe United States 
Navy Asiatic Fleet Memorial Day with appropriate programs, ceremonies, 
and activities.

SEC. 1061. PROGRAM TO COMMEMORATE 50TH ANNIVERSARY OF THE KOREAN WAR.

    (a) Reference to Korean War.--Section 1083 of the National Defense 
Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 
1918; 10 U.S.C. 113 note) is amended--
            (1) in the section heading, by striking out ``korean 
        conflict'' and inserting in lieu thereof ``korean war'';
            (2) by striking out ``Korean conflict'' each place it 
        appears and inserting in lieu thereof ``Korean War''; and
            (3) in subsections (c) and (d)(1), by striking out ``Korean 
        Conflict'' and inserting in lieu thereof ``Korean War''.
    (b) Limitation on Expenditures.--Subsection (f) of such section is 
amended to read as follows:
    ``(f) Limitation on Expenditures.--The total amount expended for 
the commemorative program for fiscal years 1998 through 2004 by the 
Department of Defense 50th Anniversary of the Korean War Commemorative 
Committee established by the Secretary of Defense may not exceed 
$10,000,000.''.

SEC. 1062. DEPARTMENT OF DEFENSE USE OF FREQUENCY SPECTRUM.

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

SEC. 1063. TECHNICAL AND CLERICAL AMENDMENTS.

    (a) Title 10, United States Code.--Title 10, United States Code, is 
amended as follows:
            (1) The item relating to section 484 in the table of 
        sections at the beginning of chapter 23 is amended to read as 
        follows:

``484. Annual report on aircraft inventory.''.
            (2) Section 517(a) is amended by striking out ``Except as 
        provided in section 307 of title 37, the'' and inserting in 
        lieu thereof ``The''.
            (3) The item relating to section 2302c in the table of 
        sections at the beginning of chapter 137 is amended to read as 
        follows:

``2302c. Implementation of electronic commerce capability.''.
            (4) The table of subchapters at the beginning of chapter 
        148 is amended by striking out ``2491'' in the item relating to 
        subchapter I and inserting in lieu thereof ``2500''.
            (5) Section 7045(c) is amended by striking out ``the'' 
        after ``are subject to''.
            (6) Section 7572(b) is repealed.
            (7) Section 12683(b)(2) is amended by striking out ``; or'' 
        at the end and inserting in lieu thereof a period.
    (b) Public Law 105-85.--Effective as of November 18, 1997, and as 
if included therein as enacted, the National Defense Authorization Act 
for Fiscal Year 1998 (Public Law 105-85) is amended as follows:
            (1) Section 1006(a) (111 Stat. 1869) is amended by striking 
        out ``or'' in the quoted matter and inserting in lieu thereof 
        ``and''.
            (2) Section 3133(b)(3) (111 Stat. 2036) is amended by 
        striking out ``III'' and inserting in lieu thereof ``XIV''.
    (c) Other Acts.--
            (1) Section 18(c)(1) of the Office of Federal Procurement 
        Policy Act (41 U.S.C. 416(c)(1)) is amended by striking out the 
        period at the end of subparagraph (A) and inserting in lieu 
        thereof a semicolon.
            (2) Section 3(c)(2) of Public Law 101-533 (22 U.S.C. 
        3142(c)(2)) is amended by striking out ``included in the most 
        recent plan submitted to the Congress under section 2506 of 
        title 10'' and inserting in lieu thereof ``identified in the 
        most recent assessment prepared under section 2505 of title 
        10''.
    (d) Coordination With Other Amendments.--For purposes of applying 
amendments made by provisions of this Act other than provisions of this 
section, this section shall be treated as having been enacted 
immediately before the other provisions of this Act.

SEC. 1064. EXTENSION AND REAUTHORIZATION OF DEFENSE PRODUCTION ACT OF 
              1950.

    (a) Extension of Termination Date.--Section 717(a) of the Defense 
Production Act of 1950 (50 U.S.C. App. 2166(a)) is amended by striking 
``September 30, 1998'' and inserting ``September 30, 1999''.
    (b) Extension of Authorization.--Section 711(b) of the Defense 
Production Act of 1950 (50 U.S.C. App. 2161(b)) is amended by striking 
``and 1998'' and inserting ``1998, and 1999''.

SEC. 1065. BUDGETING FOR CONTINUED PARTICIPATION OF UNITED STATES 
              FORCES IN NATO OPERATIONS IN BOSNIA AND HERZEGOVINA.

    (a) Findings.--Congress makes the following findings:
            (1) Funding levels in the Department of Defense budget have 
        not been sufficient to pay for the deployment of United States 
        ground combat forces in Bosnia and Herzegovina that began in 
        fiscal year 1996.
            (2) The Department of Defense has used funds from the 
        operation and maintenance accounts of the Armed Forces to pay 
        for the operations because the funding levels included in the 
        defense budgets for fiscal years 1996 and 1997 have not been 
        adequate to maintain operations in Bosnia and Herzegovina.
            (3) Funds necessary to continue United States participation 
        in the NATO operations in Bosnia and Herzegovina, and to 
        replace operation and maintenance funds used for the 
        operations, have been requested by the President as 
        supplemental appropriations in fiscal years 1996 and 1997. The 
        Department of Defense has also proposed to reprogram previously 
        appropriated funds to make up the shortfall for continued 
        United States operations in Bosnia and Herzegovina.
            (4) In February 1998, the President certified to Congress 
        that the continued presence of United States forces in Bosnia 
        and Herzegovina after June 30, 1998, was necessary in order to 
        meet national security interests of the United States.
            (5) The discretionary spending limit established for the 
        defense category for fiscal year 1998 in the Balanced Budget 
        and Emergency Deficit Control Act of 1985 does not take into 
        account the continued deployment of United States forces in 
        Bosnia and Herzegovina after June 30, 1998. Therefore, the 
        President requested emergency supplemental appropriations for 
        the Bosnia and Herzegovina mission through September 30, 1998.
            (6) Amounts for operations in Bosnia and Herzegovina were 
        not included in the original budget proposed by the President 
        for the Department of Defense for fiscal year 1999.
            (7) The President requested $1,858,600,000 in emergency 
        appropriations in his March 4, 1998 amendment to the fiscal 
        year 1999 budget to cover the shortfall in funding in the 
        fiscal year 1999 for the costs of extending the mission in 
        Bosnia.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) the President should include in the budget for the 
        Department of Defense that the President submits to Congress 
        under section 1105(a) of title 31, United States Code, for each 
        fiscal year sufficient amounts to pay for any proposed 
        continuation of the participation of United States forces in 
        NATO operations in Bosnia and Herzegovina for that fiscal year; 
        and
            (2) amounts included in the budget for that purpose should 
        not be transferred from amounts that would otherwise be 
        proposed in the budget of any of the Armed Forces in accordance 
        with the future-years defense program related to that budget, 
        or any other agency of the Executive Branch, but, instead, 
        should be an overall increase in the budget for the Department 
        of Defense.

SEC. 1066. NATO PARTICIPATION IN THE PERFORMANCE OF PUBLIC SECURITY 
              FUNCTIONS OF CIVILIAN AUTHORITIES IN BOSNIA AND 
              HERZEGOVINA.

    (a) Findings.--Congress makes the following findings:
            (1) The North Atlantic Treaty Organization (NATO) has 
        approved the creation of a multi-national specialized unit of 
        gendarmes- or para-military police composed of European 
        security forces to help promote public security in Bosnia and 
        Herzegovina as a part of the post-June 1998 mission for the 
        Stabilization Force (SFOR) authorized under the United Nations 
        Security Council Resolution 1088 (December 12, 1996).
            (2) On at least four occasions, beginning in July 1997, the 
        Stabilization Force (SFOR) has been involved, pursuant to 
        military annex 1(A) of the Dayton Agreement, in carrying out 
        missions for the specific purpose of detaining war criminals, 
        and on at least one of those occasions United States forces 
        were directly involved in carrying out the mission.
    (b) Sense of Congress.--It is the sense of Congress that United 
States forces should not serve as civil police in Bosnia and 
Herzegovina.
    (c) Requirement for Report.--The President shall submit to 
Congress, not later than October 1, 1998, a report on the status of the 
NATO force of gendarmes or paramilitary police referred to in 
subsection (a)(1), including the mission of the force, the composition 
of the force, and the extent, if any, to which members of the Armed 
Forces of the United States are participating (or are to participate) 
in the force.

SEC. 1067. PILOT PROGRAM FOR REVITALIZING THE LABORATORIES AND TEST AND 
              EVALUATION CENTERS OF THE DEPARTMENT OF DEFENSE.

    (a) Findings.--Congress makes the following findings:
            (1) Officials of the Department of Defense are critically 
        dependent on the science and technology laboratories and test 
        and evaluation centers, of the department--
                    (A) to exploit commercial technology for unique 
                military purposes;
                    (B) to develop advanced technology in precise 
                areas;
                    (C) to provide the officials with objective advice 
                and counsel on science and technology matters; and
                    (D) to lead the decisionmaking that identifies the 
                most cost-effective procurements of military equipment 
                and services.
            (2) The laboratories and test and evaluation centers are 
        facing a number of challenges that, if not overcome, could 
        limit the productivity and self-sustainability of the 
        laboratories and centers, including--
                    (A) the declining funding provided for science and 
                technology in the technology base program of the 
                Department of Defense;
                    (B) difficulties experienced in recruiting, 
                retaining, and motivating high-quality personnel; and
                    (C) the complex web of policies and regulatory 
                constraints that restrict authority of managers to 
                operate the laboratories and centers in a businesslike 
                fashion.
            (3) Congress has provided tools to deal with the changing 
        nature of technological development in the defense sector by 
        encouraging closer cooperation with industry and university 
        research and by authorizing demonstrations of alternative 
        personnel systems.
            (4) A number of laboratories and test and evaluation 
        centers have addressed the challenges and are employing a 
        variety of innovative methods, such as the so-called 
        ``Federated Lab Concept'' undertaken at the Army Research 
        Laboratory, to maintain the high quality of the technical 
        program, to provide a challenging work environment for 
        researchers, and to meet the high cost demands of maintaining 
        facilities that are equal or superior in quality to comparable 
        facilities anywhere in the world.
    (b) Commendation.--Congress commends the Secretary of Defense for 
the progress made by the science and technology laboratories and test 
and evaluation centers to achieve the results described in subsection 
(a)(4) and encourages the Secretary to take the actions necessary to 
ensure continued progress for the laboratories and test and evaluation 
centers in developing cooperative relationships with universities and 
other private sector entities for the performance of research and 
development functions.
    (c) Pilot Program.--(1) In conjunction with the plan for 
restructuring and revitalizing the science and technology laboratories 
and test and evaluation centers of the Department of Defense that is 
required by section 906 of this Act, the Secretary of Defense may carry 
out a pilot program to demonstrate improved cooperative relationships 
with universities and other private sector entities for the performance 
of research and development functions.
    (2) Under the pilot program, the Secretary of Defense shall provide 
the director of one science and technology laboratory, and the director 
of one test and evaluation center, of each military department with 
authority for the following:
            (A) To explore innovative methods for quickly, efficiently, 
        and fairly entering into cooperative relationships with 
        universities and other private sector entities with respect to 
        the performance of research and development functions.
            (B) To waive any restrictions on the demonstration and 
        implementation of such methods that are not required by law.
            (C) To develop or expand innovative methods of operation 
        that provide more defense research for each dollar of cost, 
        including to carry out such initiatives as focusing on the 
        performance of core functions and adopting more business-like 
        practices.
    (3) In selecting the laboratories and centers for participation in 
the pilot program, the Secretary shall consider laboratories and 
centers where innovative management techniques have been demonstrated, 
particularly as documented under sections 1115 through 1119 of title 
31, United States Code, relating to Government agency performance and 
results.
    (4) The Secretary may carry out the pilot program at each selected 
laboratory and center for a period of three years beginning not later 
than March 1, 1999.
    (d) Reports.--(1) Not later than March 1, 1999, the Secretary of 
Defense shall submit a report on the implementation of the pilot 
program to Congress. The report shall include the following:
            (A) Each laboratory and center selected for the pilot 
        program.
            (B) To the extent possible, a description of the innovative 
        concepts that are to be tested at each laboratory or center.
            (C) The criteria to be used for measuring the success of 
        each concept to be tested.
    (2) Promptly after the expiration of the period for participation 
of a laboratory or center in the pilot program, the Secretary of 
Defense shall submit to Congress a final report on the participation of 
the laboratory or center in the pilot program. The report shall contain 
the following:
            (A) A description of the concepts tested.
            (B) The results of the testing.
            (C) The lessons learned.
            (D) Any proposal for legislation that the Secretary 
        recommends on the basis of the experience at the laboratory or 
        center under the pilot program.

SEC. 1068. SENSE OF CONGRESS REGARDING THE HEROISM, SACRIFICE, AND 
              SERVICE OF FORMER SOUTH VIETNAMESE COMMANDOS IN 
              CONNECTION WITH UNITED STATES ARMED FORCES DURING THE 
              VIETNAM CONFLICT.

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

SEC. 1069. SENSE OF THE SENATE REGARDING DECLASSIFICATION OF CLASSIFIED 
              INFORMATION OF THE DEPARTMENT OF DEFENSE AND THE 
              DEPARTMENT OF ENERGY.

    It is the sense of the Senate that the Secretary of Defense and the 
Secretary of Energy should submit to Congress a request for funds in 
fiscal year 2000 for activities relating to the declassification of 
information under the jurisdiction of such Secretaries in order to 
fulfill the obligations and commitments of such Secretaries under 
Executive Order No. 12958 and the Atomic Energy Act of 1954 (42 U.S.C. 
2011 et seq.) and to the stakeholders.

SEC. 1070. RUSSIAN NONSTRATEGIC NUCLEAR WEAPONS.

    (a) Sense of the Senate.--It is the sense of the Senate that--
            (1) the 7,000 to 12,000 or more nonstrategic (or 
        ``tactical'') nuclear weapons estimated by the United States 
        Strategic Command to be in the Russian arsenal may present the 
        greatest threat of sale or theft of a nuclear warhead in the 
        world today;
            (2) as the number of deployed strategic warheads in the 
        Russian and United States arsenals declines to just a few 
        thousand under the START accords, Russia's vast superiority in 
        tactical nuclear warheads--many of which have yields equivalent 
        to strategic nuclear weapons--could become strategically 
        destabilizing;
            (3) while the United States has unilaterally reduced its 
        inventory of tactical nuclear weapons by nearly 90 percent 
        since the end of the Cold War, Russia is behind schedule in 
        implementing the steep tactical nuclear arms reductions pledged 
        by former Soviet President Gorbachev in 1991 and Russian 
        President Yeltsin in 1992, perpetuating the dangers from 
        Russia's tactical nuclear stockpile; and
            (4) the President of the United States should call on the 
        Russian Federation to expedite reduction of its tactical 
        nuclear arsenal in accordance with the promises made in 1991 
        and 1992.
    (b) Report.--Not later than March 15, 1999, the Secretary of 
Defense shall submit to the Congress a report on Russia's nonstrategic 
nuclear weapons, including--
            (1) estimates regarding the current numbers, types, yields, 
        viability, and locations of such warheads;
            (2) an assessment of the strategic implications of the 
        Russian Federation's nonstrategic arsenal, including the 
        potential use of such warheads in a strategic role or the use 
        of their components in strategic nuclear systems;
            (3) an assessment of the extent of the current threat of 
        theft, sale, or unauthorized use of such warheads, including an 
        analysis of Russian command and control as it concerns the use 
        of tactical nuclear warheads; and
            (4) a summary of past, current, and planned efforts to work 
        cooperatively with the Russian Federation to account for, 
        secure, and reduce Russia's stockpile of tactical nuclear 
        warheads and associated fissile material.
    (c) Views.--This report shall include the views of the Director of 
Central Intelligence and the Commander in Chief of the United States 
Strategic Command.

SEC. 1071. SENSE OF SENATE ON NUCLEAR TESTS IN SOUTH ASIA.

    (a) Findings.--The Senate finds that--
            (1) on May 11 and 13, 1998, the Government of India 
        conducted a series of underground nuclear tests;
            (2) on May 28 and 30, 1998, the Government of Pakistan 
        conducted a series of underground nuclear tests;
            (3) although not recognized or accepted as such by the 
        United Nations Security Council, India and Pakistan have 
        declared themselves nuclear weapon states;
            (4) India and Pakistan have conducted extensive nuclear 
        weapons research over several decades, resulting in the 
        development of nuclear capabilities and the potential for the 
        attainment of nuclear arsenals and the dangerous proliferation 
        of nuclear weaponry;
            (5) India and Pakistan have refused to enter into 
        internationally recognized nuclear non-proliferation 
        agreements, including the Comprehensive Test Ban Treaty, the 
        Treaty on the Non-Proliferation of Nuclear Weapons, and full-
        scope safeguards agreements with the International Atomic 
        Energy Agency;
            (6) India and Pakistan, which have been at war with each 
        other 3 times in the past 50 years, have urgent bilateral 
        conflicts, most notably over the disputed territory of Kashmir;
            (7) the testing of nuclear weapons by India and Pakistan 
        has created grave and serious tensions on the Indian 
        subcontinent; and
            (8) the United States response to India and Pakistan's 
        nuclear tests has included the imposition of wide-ranging 
        sanctions as called for under the Arms Export Control Act and 
        the Nuclear Proliferation Prevention Act of 1994.
    (b) Sense of Senate.--The Senate--
            (1) strongly condemns the decisions by the governments of 
        India and Pakistan to conduct nuclear tests in May 1998;
            (2) supports the President's decision to carry out the 
        provisions of the Nuclear Proliferation Prevention Act of 1994 
        with respect to India and Pakistan and invoke all sanctions in 
        that Act;
            (3) calls upon members of the international community to 
        impose similar sanctions against India and Pakistan to those 
        imposed by the United States;
            (4) calls for the governments of India and Pakistan to 
        commit not to conduct any additional nuclear tests;
            (5) urges the governments of India and Pakistan to take 
        immediate steps, bilaterally and under the auspices of the 
        United Nations, to reduce tensions between them;
            (6) urges India and Pakistan to engage in high-level 
        dialogue aimed at reducing the likelihood of armed conflict, 
        enacting confidence and security building measures, and 
        resolving areas of dispute;
            (7) commends all nations to take steps which will reduce 
        tensions in South Asia, including appropriate measures to 
        prevent the transfer of technology that could further 
        exacerbate the arms race in South Asia, and thus avoid further 
        deterioration of security there;
            (8) calls upon the President to seek a diplomatic solution 
        between the governments of India and Pakistan to promote peace 
        and stability in South Asia and resolve the current impasse;
            (9) encourages United States leadership in assisting the 
        governments of India and Pakistan to resolve their 50-year 
        conflict over the disputed territory in Kashmir;
            (10) urges India and Pakistan to take immediate, binding, 
        and verifiable steps to roll back their nuclear programs and 
        come into compliance with internationally accepted norms 
        regarding the proliferation of weapons of mass destruction; and
            (11) urges the United States to reevaluate its bilateral 
        relationship with India and Pakistan, in light of the new 
        regional security realities in South Asia, with the goal of 
        preventing further nuclear and ballistic missile proliferation, 
        diffusing long-standing regional rivalries between India and 
        Pakistan, and securing commitments from them which, if carried 
        out, could result in a calibrated lifting of United States 
        sanctions imposed under the Arms Export Control Act and the 
        Nuclear Proliferation Prevention Act of 1994.

SEC. 1072. SENSE OF CONGRESS REGARDING CONTINUED PARTICIPATION OF 
              UNITED STATES FORCES IN OPERATIONS IN BOSNIA AND 
              HERZEGOVINA.

    (a) Findings.--Congress makes the following findings:
            (1) The contributions of the people of the United States 
        and other nations have, in large measure, resulted in the 
        suspension of fighting and alleviated the suffering of the 
        people of Bosnia and Herzegovina since December 1995.
            (2) the people of the United States have expended 
        approximately $9,500,000,000 in tax dollars between 1992 and 
        mid-1998 just in support of the United States military 
        operations in Bosnia to achieve those results.
            (3) Efforts to restore the economy and political structure 
        in Bosnia and Herzegovina have achieved some success in 
        accordance with the Dayton Agreement.
            (4) In February 1998, the President certified to Congress 
        that the continued presence of United States forces in Bosnia 
        and Herzegovina after June 30, 1998, was necessary in order to 
        meet national security interests of the United States.
            (5) There is, however, no accurate estimate of the time 
        needed to accomplish the civilian implementation tasks outlined 
        in the Dayton Agreement.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) United States ground combat forces should not remain in 
        Bosnia and Herzegovina indefinitely in view of the world-wide 
        commitments of the Armed Forces of the United States;
            (2) the President should work with NATO allies and the 
        other nations whose military forces are participating in the 
        NATO-led Stabilization Force to withdraw United States ground 
        combat forces from Bosnia and Herzegovina within a reasonable 
        period of time, consistent with the safety of those forces and 
        the accomplishment of the Stabilization Force's military tasks;
            (3) a NATO-led force without the participation of United 
        States ground combat forces in Bosnia and Herzegovina might be 
        suitable for a follow-on force for Bosnia and Herzegovina if 
        the European Security and Defense Identity is not sufficiently 
        developed or is otherwise considered inappropriate for such a 
        mission;
            (4) the United States may decide to provide appropriate 
        support to a Western European Union-led or NATO-led follow-on 
        force for Bosnia and Herzegovina, including command and 
        control, intelligence, logistics, and, if necessary, a ready 
        reserve force in the region;
            (5) the President should inform the European NATO allies of 
        this expression of the sense of Congress and should strongly 
        urge them to undertake preparations for establishing a Western 
        European Union-led or a NATO-led force as a follow-on force to 
        the NATO-led Stabilization Force if needed to maintain peace 
        and stability in Bosnia and Herzegovina; and
            (6) the President should consult closely with the 
        congressional leadership and the congressional defense 
        committees with respect to the progress being made toward 
        achieving a sustainable peace in Bosnia and Herzegovina and the 
        progress being made toward a reduction and ultimate withdrawal 
        of United States ground combat forces from Bosnia and 
        Herzegovina.
    (c) One-Time Reports.--The President shall submit to Congress the 
following reports:
            (1) Not later than September 30, 1998, a report containing 
        a discussion of the likely impact on the security situation in 
        Bosnia and Herzegovina and on the prospects for establishing 
        self-sustaining peace and stable local government there that 
        would result from a phased reduction in the number of United 
        States military personnel stationed in Bosnia and Herzegovina 
        under the following alternatives:
                    (A) A phased reduction to 5,000 by February 2, 
                1999, to 3,500 by June 30, 1999, and to 2,500 by 
                February 2, 2000.
                    (B) A phased reduction by February 2, 2000, to the 
                number of personnel that is approximately equal to the 
                mean average of--
                            (i) the number of military personnel of the 
                        United Kingdom that are stationed in Bosnia and 
                        Herzegovina on that date;
                            (ii) the number of military personnel of 
                        Germany that are stationed there on that date;
                            (iii) the number of military personnel of 
                        France that are stationed there on that date; 
                        and
                            (iv) the number of military personnel of 
                        Italy that are stationed there on that date.
            (2) Not later than October 1, 1998, a report on the status 
        of the NATO force of gendarmes or paramilitary police referred 
        to in subsection (a)(1), including the mission of the force, 
        the composition of the force, and the extent, if any, to which 
        members of the Armed Forces of the United States are 
        participating (or are to participate) in the force.
    (d) Report To Accompany Each Request for Funding.--(1) Each time 
that the President submits to Congress a proposal for funding continued 
operations of United States forces in Bosnia and Herzegovina, the 
President shall submit to Congress a report on the missions of United 
States forces there. The first report shall be submitted at the same 
time that the President submits the budget for fiscal year 2000 to 
Congress under section 1105(a) of title 31, United States Code.
    (2) Each report under paragraph (1) shall include the following:
            (A) The performance objectives and schedule for the 
        implementation of the Dayton Agreement, including--
                    (i) the specific objectives for the reestablishment 
                of a self-sustaining peace and a stable local 
                government in Bosnia and Herzegovina, taking into 
                account (I) each of the areas of implementation 
                required by the Dayton Agreement, as well as other 
                areas that are not covered specifically in the Dayton 
                Agreement but are essential for reestablishing such a 
                peace and local government and to permitting an orderly 
                withdrawal of the international peace implementation 
                force from Bosnia and Herzegovina, and (II) the 
                benchmarks reported in the latest semiannual report 
                submitted under section 7(b)(2) of the 1998 
                Supplemental Appropriations and Rescissions Act 
                (revised as necessary to be current as of the date of 
                the report submitted under this subsection); and
                    (ii) the schedule, specified by fiscal year, for 
                achieving the objectives.
            (B) The military and non-military missions that the 
        President has directed for United States forces in Bosnia and 
        Herzegovina in support of the objectives identified pursuant to 
        paragraph (1), including a specific discussion of--
                    (i) the mission of the United States forces, if 
                any, in connection with the pursuit and apprehension of 
                war criminals;
                    (ii) the mission of the United States forces, if 
                any, in connection with civilian police functions;
                    (iii) the mission of the United States forces, if 
                any, in connection with the resettlement of refugees; 
                and
                    (iv) the missions undertaken by the United States 
                forces, if any, in support of international and local 
                civilian authorities.
            (C) An assessment of the risk for the United States forces 
        in Bosnia and Herzegovina, including, for each mission 
        identified pursuant to subparagraph (B), the assessment of the 
        Chairman of the Joint Chiefs of Staff regarding the nature and 
        level of risk of the mission for the safety and well-being of 
        United States military personnel.
            (D) An assessment of the cost to the United States, by 
        fiscal year, of carrying out the missions identified pursuant 
        to subparagraph (B) for the period indicated in the schedule 
        provided pursuant to subparagraph (A).
            (E) A joint assessment by the Secretary of Defense and the 
        Secretary of State of the status of planning for--
                    (i) the assumption of all remaining military 
                missions inside Bosnia and Herzegovina by European 
                military and paramilitary forces; and
                    (ii) the establishment and support of forward-based 
                United States rapid response force outside of Bosnia 
                and Herzegovina that would be capable of deploying 
                rapidly to defeat military threats to a European 
                follow-on force inside Bosnia and Herzegovina, and of 
                providing whatever logistical, intelligence, and air 
                support is needed to ensure that a European follow-on 
                force is fully capable of accomplishing its missions 
                under the Dayton Agreement.
    (e) Dayton Agreement Defined.--In this section, the term ``Dayton 
Agreement'' means the General Framework Agreement for Peace in Bosnia 
and Herzegovina, together with annexes relating thereto, done at 
Dayton, November 10 through 16, 1995.

SEC. 1073. COMMISSION TO ASSESS THE RELIABILITY, SAFETY, AND SECURITY 
              OF THE UNITED STATES NUCLEAR DETERRENT.

    (a) Establishment.--There is hereby established a commission to be 
known as the ``Commission for Assessment of the Reliability, Safety, 
and Security of the United States Nuclear Deterrent''.
    (b) Composition.--(1) The Commission shall be composed of six 
members who shall be appointed from among private citizens of the 
United States with knowledge and expertise in the technical aspects of 
design, maintenance, and deployment of nuclear weapons, as follows:
            (A) Two members appointed by the Majority Leader of the 
        Senate.
            (B) One member appointed by the Minority Leader of the 
        Senate.
            (C) Two members appointed by the Speaker of the House of 
        Representatives.
            (D) One member appointed by the Minority Leader of the 
        House of Representatives.
    (2) The Senate Majority Leader and the Speaker of the House of 
Representatives shall each appoint one member to serve for five years 
and one member to serve for two years. The Minority Leaders of the 
Senate and House of Representatives shall each appoint one member to 
serve for five years. A member may be reappointed.
    (3) Any vacancy in the Commission shall be filled in the same 
manner as the original appointment.
    (4) All members of the Commission shall hold appropriate security 
clearances.
    (c) Chairman.--The Majority Leader of the Senate, after 
consultation with the Speaker of the House of Representatives and the 
Minority Leaders of the Senate and House of Representatives, shall 
designate one of the members of the Commission, without regard to the 
term of appointment of that member, to serve as Chairman of the 
Commission.
    (d) Duties of Commission.--(1) Each year the Commission shall 
assess, for Congress--
            (A) the safety, security, and reliability of the nuclear 
        deterrent forces of the United States; and
            (B) the annual certification on the safety, security, and 
        reliability of the nuclear weapons stockpile of the United 
        States that is provided by the directors of the national 
        weapons laboratories through the Secretary of Energy to the 
        President.
    (2) The Commission shall submit to Congress an annual report, in 
classified form, setting forth the findings and conclusions resulting 
from each assessment.
    (e) Cooperation of Other Agencies.--(1) The Commission may secure 
directly from the Department of Energy, the Department of Defense, or 
any of the national weapons laboratories or plants or any other Federal 
department or agency information that the Commission considers 
necessary for the Commission to carry out its duties.
    (2) For carrying out its duties, the Commission shall be provided 
full and timely cooperation by the Secretary of Energy, the Secretary 
of Defense, the Commander of United States Strategic Command, the 
Directors of the Los Alamos National Laboratory, the Lawrence Livermore 
National Laboratory, the Sandia National Laboratories, the Savannah 
River Site, the Y-12 Plant, the Pantex Facility, and the Kansas City 
Plant, and any other official of the United States that the Chairman 
determines as having information described in paragraph (1).
    (3) The Secretary of Energy and the Secretary of Defense shall each 
designate at least one officer or employee of the Department of Energy 
and the Department of Defense, respectively, to serve as a liaison 
officer between the department and the Commission.
    (f) Commission Procedures.--(1) The Commission shall meet at the 
call of the Chairman.
    (2) Four members of the Commission shall constitute a quorum, 
except that the Commission may designate a lesser number of members as 
a quorum for the purpose of holding hearings. The Commission shall act 
by resolution agreed to by a majority of the members of the Commission.
    (3) Any member or agent of the Commission may, if authorized by the 
Commission, take any action that the Commission is authorized to take 
under this section.
    (4) The Commission may establish panels composed of less than the 
full membership of the Commission for the purpose of carrying out the 
Commission's duties. Findings and conclusions of a panel of the 
Commission may not be considered findings and conclusions of the 
Commission unless approved by the Commission.
    (5) The Commission or, at its direction, any panel or member of the 
Commission, may, for the purpose of carrying out its duties, hold 
hearings, sit and act at times and places, take testimony, receive 
evidence, and administer oaths to the extent that the Commission or any 
panel or member considers advisable.
    (g) Personnel Matters.--(1) A member of the Commission shall be 
compensated at the daily equivalent of the rate of basic pay 
established for level V of the Executive Schedule under 5316 of title 
5, United States Code, for each day on which the member is engaged in 
any meeting, hearing, briefing, or other work in the performance of 
duties of the Commission.
    (2) A member of the Commission shall be allowed travel expenses, 
including per diem in lieu of subsistence, at rates authorized for 
employees of agencies under subchapter I of chapter 57 of title 5, 
United States Code, while away from the member's home or regular place 
of business in the performance of services for the Commission.
    (3) The Chairman of the Commission may, without regard to the 
provisions of the title 5, United States Code, governing appointments 
in the competitive service, appoint a staff director and such 
additional personnel as may be necessary to enable the Commission to 
perform its duties. The Chairman of the Commission may fix the pay of 
the staff director and other personnel without regard to the provisions 
of chapter 51, and subchapter III of chapter 53 of title 5, United 
States Code, relating to classification of positions and General 
Schedule pay rates, except that the rate of pay fixed under this 
paragraph for the staff director may not exceed the rate payable for 
level V of the Executive Schedule under section 5316 of such title.
    (4) Upon the request of the Chairman of the Commission, the head of 
any Federal department or agency may detail, on a nonreimbursable 
basis, any personnel of that department or agency to the Commission to 
assist it in carrying out its duties.
    (5) The Chairman of the Commission may procure temporary and 
intermittent services under section 3109(b) of title 5, United States 
Code, at rates for individuals which do not exceed the daily equivalent 
of the annual rate of basic pay payable for level V of the Executive 
Schedule and under section 5316 of such title.
    (h) Miscellaneous Administrative Provisions.--(1) The Commission 
may use the United States mails and obtain printing and binding 
services in the same manner and under the same conditions as other 
departments and agencies of the Federal Government.
    (2) The Secretary of Defense and the Secretary of Energy shall 
furnish the Commission with any administrative and support services 
requested by the Commission and with office space within the 
Washington, District Columbia, metropolitan area that is sufficient for 
the administrative offices of the Commission and for holding general 
meetings of Commission.
    (i) Funding.--The Secretary of Defense and the Secretary of Energy 
shall each contribute 50 percent of the amount of funds that are 
necessary for the Commission to carry out its duties. Upon receiving 
from the Chairman of the Commission a written certification of the 
amount of funds that is necessary for funding the activities of the 
Commission for a period, the Secretaries shall promptly make available 
to the Commission funds in the total amount specified in the 
certification. Funds available for the Department of Defense for 
Defense-wide research, development, test, and evaluation shall be 
available for the Department of Defense contribution. Funds available 
for the Department of Energy for atomic energy defense activities shall 
be available for the Department of Energy contribution.
    (j) Termination of the Commission.--The Commission shall terminate 
three years after the date of the appointment of the member designated 
as Chairman.
    (k) Initial Implementation.--All appointments to the Commission 
shall be made not later than 45 days after the date of the enactment of 
this Act. The Commission shall convene its first meeting not later than 
30 days after the date as of which all members of the Commission have 
been appointed.

SEC. 1074. AUTHORITY FOR WAIVER OF MORATORIUM ON ARMED FORCES USE OF 
              ANTIPERSONNEL LANDMINES.

    Section 580 of the Foreign Operations, Export Financing, and 
Related Programs Appropriations Act, 1996 (Public Law 104-107; 110 
Stat. 751) is amended--
            (1) by redesignating subsection (b) as subsection (c); and
            (2) by inserting after subsection (a) the following new 
        subsection (b):
    ``(b) Waiver Authority.--(1) The President may waive the moratorium 
set forth in subsection (a) if the President determines that the waiver 
is necessary in the national security interests of the United States.
    ``(2) The President shall notify the President pro tempore of the 
Senate and the Speaker of the House of Representatives of the exercise 
of the authority provided by paragraph (1).''.

SEC. 1075. APPOINTMENT OF DIRECTOR AND DEPUTY DIRECTOR OF THE NAVAL 
              HOME.

    (a) Appointment and Qualifications of Director and Deputy 
Director.--Subsection (a) of section 1517 of the Armed Forces 
Retirement Home Act of 1991 (24 U.S.C. 417) is amended--
            (1) in paragraph (2)--
                    (A) by striking out ``Each Director'' and inserting 
                in lieu thereof ``The Director of the United States 
                Soldiers' and Airmen's Home''; and
                    (B) by striking out subparagraph (B) and inserting 
                in lieu thereof the following:
            ``(B) meet the requirements of paragraph (4).'';
            (2) by redesignating paragraph (3) as paragraph (5); and
            (3) by inserting after paragraph (2) the following new 
        paragraphs (3) and (4):
    ``(3) The Director, and any Deputy Director, of the Naval Home 
shall be appointed by the Secretary of Defense from among persons 
recommended by the Secretaries of the military departments who--
            ``(A) in the case of the position of Director, are 
        commissioned officers of the Armed Forces serving on active 
        duty in a pay grade above 0-5;
            ``(B) in the case of the position of Deputy Director, are 
        commissioned officers of the Armed Forces serving on active 
        duty in a pay grade above 0-4; and
            ``(C) meet the requirements of paragraph (4).
    ``(4) Each Director shall have appropriate leadership and 
management skills, an appreciation and understanding of the culture and 
norms associated with military service, and significant military 
background.''.
    (b) Term of Director and Deputy Director.--Subsection (c) of such 
section is amended--
            (1)bystrikingout``(c)TermofDirector.--'' and all that 
        follows through ``A Director'' in the second sentence and 
        inserting in lieu thereof ``(c) Terms of Directors.--(1) The 
        term of office of the Director of the United States Soldiers' 
        and Airmen's Home shall be five years. The Director''; and
            (2) by adding at the end the following new paragraph:
    ``(2) The Director and the Deputy Director of the Naval Home shall 
serve at the pleasure of the Secretary of Defense.''.
    (c) Definitions.--Such section is further amended by adding at the 
end the following:
    ``(g) Definitions.--In this section:
            ``(1) The term `United States Soldiers' and Airmen's Home' 
        means the separate facility of the Retirement Home that is 
        known as the United States Soldiers' and Airmen's Home.
            ``(2) The term `Naval Home' means the separate facility of 
        the Retirement Home that is known as the Naval Home.''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on October 1, 1998.

SEC. 1076. SENSE OF THE CONGRESS ON THE DEFENSE SCIENCE AND TECHNOLOGY 
              PROGRAM.

    (a) Funding Requirements for the Defense Science and Technology 
Program Budget.--It is the sense of the Congress that for each of the 
fiscal years 2000 through 2008, it should be an objective of the 
Secretary of Defense to increase the budget for the Defense Science and 
Technology Program for the fiscal year over the budget for that program 
for the preceding fiscal year by a percent that is at least two percent 
above the rate of inflation as determined by the Office of Management 
and Budget.
    (b) Guidelines for the Defense Science and Technology Program.--
            (1) Relationship of defense science and technology program 
        to university research.--It is the sense of the Congress that 
        the following should be key objectives of the Defense Science 
        and Technology Program--
                    (A) the sustainment of research capabilities in 
                scientific and engineering disciplines critical to the 
                Department of Defense;
                    (B) the education and training of the next 
                generation of scientists and engineers in disciplines 
                that are relevant to future defense systems, 
                particularly through the conduct of basic research; and
                    (C) the Continued support of the Defense 
                Experimental Program to Stimulate Competitive Research 
                and research programs at historically black colleges 
                and universities and minority institutions.
            (2) Relationship of the defense science and technology 
        program to commercial research and technology.--
                    (A) It is the sense of the Congress that in 
                supporting projects within the Defense Science and 
                Technology Program, the Secretary of Defense should 
                attempt to leverage commercial research, technology, 
                products, and processes for the benefit of the 
                Department of Defense.
                    (B) It is the sense of the Congress that funds made 
                available for projects and programs of the Defense 
                Science and Technology Program should be used only for 
                the benefit of the Department of Defense, which 
                includes--
                            (i) the development of technology that has 
                        only military applications;
                            (ii) the development of militarily useful, 
                        commercially viable technology; or
                            (iii) the adaption of commercial 
                        technology, products, or processes for military 
                        purposes.
            (3) Synergistic management of research and development.--It 
        is the sense of the Congress that the Secretary of Defense may 
        allocate a combination of funds available for the Department of 
        Defense for basic and applied research and for advanced 
        development to support any individual project or program within 
        the Defense Science and Technology Program. This flexibility is 
        not intended to change the allocation of funds in any fiscal 
        year among basic and applied research and advanced development.
    (c) Definitions.--In this section:
            (1) The term ``Defense Science and Technology Program'' 
        means basic and applied research and advanced development.
            (2) The term ``basic and applied research'' means work 
        funded in program elements for defense research and development 
        under Department of Defense R&D Budget Activities 1 or 2.
            (3) The term ``advanced development'' means work funded in 
        program elements for defense research and development under 
        Department of Defense R&D Budget Activity 3.

SEC. 1077. DEMILITARIZATION AND EXPORTATION OF DEFENSE PROPERTY.

    (a) Centralized Assignment of Demilitarization Codes for Defense 
Property.--(1) Chapter 153 of title 10, United States Code, is amended 
by inserting after section 2572 the following:
``Sec. 2573. Demilitarization codes for defense property
    ``(a) Authority.--The Secretary of Defense shall--
            ``(1) assign the demilitarization codes to the property 
        (other than real property) of the Department of Defense; and
            ``(2) take any action that the Secretary considers 
        necessary to ensure that the property assigned demilitarization 
        codes is demilitarized in accordance with the assigned codes.
    ``(b) Supremacy of Codes.--A demilitarization code assigned to an 
item of property by the Secretary of Defense under this section shall 
take precedence over any demilitarization code assigned to the item 
before the date of enactment of the Strom Thurmond National Defense 
Authorization Act for Fiscal Year 1999 by any other official in the 
Department of Defense.
    ``(c) Enforcement.--The Secretary of Defense shall commit the 
personnel and resources to the exercise of authority under subsection 
(a) that are necessary to ensure that--
            ``(1) appropriate demilitarization codes are assigned to 
        property of the Department of Defense; and
            ``(2) property is demilitarized in accordance with the 
        assigned codes.
    ``(d) Annual Report.--The Secretary of Defense shall include in the 
annual reports submitted to Congress under section 113(c)(1) of this 
title in 1999 and 2000 a discussion of the following:
            ``(1) The exercise of the authority under this section 
        during the fiscal year preceding the fiscal year in which the 
        report is submitted.
            ``(2) Any changes in the exercise of the authority that are 
        taking place in the fiscal year in which the report is 
        submitted or are planned for that fiscal year or any subsequent 
        fiscal year.
    ``(e) Definitions.--In this section:
            ``(1) The term `demilitarization code', with respect to 
        property, means a code that identifies the extent to which the 
        property must be demilitarized before disposal.
            ``(2) The term `demilitarize', with respect to property, 
        means to destroy the military offensive or defensive advantages 
        inherent in the property, by mutilation, cutting, crushing, 
        scrapping, melting, burning, or altering the property so that 
        the property cannot be used for the purpose for which it was 
        originally made.''.
    (2) The table of sections at the beginning of such chapter 153 is 
amended by inserting after the item relating to section 2572 the 
following:

``2573. Demilitarization codes for defense property.''.
    (b) Criminal Offense.--(1) Chapter 27 of title 18, United States 
Code, is amended by adding at the end the following:
``Sec. 554. Violations of regulated acts involving the exportation of 
              United States property
    ``(a) Any person who--
            ``(1) fraudulently or knowingly exports or otherwise sends 
        from the United States (as defined in section 545 of this 
        title), or attempts to export or send from the United States 
        any merchandise contrary to any law of the United States; or
            ``(2) receives, conceals, buys, sells, or in any manner 
        facilitates, the transportation, concealment, or sale of any 
        merchandise prior to exportation, knowing that the merchandise 
        is intended for exportation in violation of Federal law;
shall be fined under this title, imprisoned not more than 5 years, or 
both.
    ``(b) The penalties under this section shall be in addition to any 
other applicable criminal penalty.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following:

``554. Violations of regulated acts involving the exportation of United 
                            States property.''.

SEC. 1078. DESIGNATION OF AMERICA'S NATIONAL MARITIME MUSEUM.

    (a) Designation of America's National Maritime Museum.--The 
Mariners' Museum building located at 100 Museum Drive, Newport News, 
Virginia, and the South Street Seaport Museum buildings located at 207 
Front Street, New York, New York, shall be known and designated as 
``America's National Maritime Museum''.
    (b) Reference to America's National Maritime Museum.--Any reference 
in a law, map, regulation, document, paper, or other record of the 
United States to the buildings referred to in subsection (a) shall be 
deemed to be a reference to America's National Maritime Museum.
    (c) Later Additions of Other Museums Not Precluded.--The 
designation of museums named in subsection (a) as America's National 
Maritime Museum does not preclude the addition of any other museum to 
the group of museums covered by that designation.
    (d) Criteria for Later Additions.--A museum is appropriate for 
designation as a museum of America's National Maritime Museum if the 
museum--
            (1) houses a collection of maritime artifacts clearly 
        representing America's maritime heritage; and
            (2) provides outreach programs to educate the public on 
        America's maritime heritage.

SEC. 1079. BURIAL HONORS FOR VETERANS.

    (a) Findings.--The Senate makes the following findings:
            (1) Throughout the years, men and women have unselfishly 
        answered the call to arms, at tremendous personal sacrifice. 
        Burial honors for deceased veterans are an important means of 
        reminding Americans of the sacrifices endured to keep the 
        Nation free.
            (2) The men and women who serve honorably in the Armed 
        Forces, whether in war or peace, and whether discharged, 
        separated, or retired, deserve commemoration for their military 
        service at the time of their death by an appropriate military 
        tribute.
            (3) It is tremendously important to pay an appropriate 
        final tribute on behalf of a grateful Nation to honor 
        individuals who served the Nation in the Armed Forces.
    (b) Conference on Military Burial Honor Practices.--(1) Not later 
than October 31, 1998, the Secretary of Defense shall, in consultation 
with the Secretary of Veterans Affairs, convene and preside over a 
conference for the purpose of determining means of improving and 
increasing the availability of military burial honors for veterans. The 
Secretary of Veterans Affairs shall also participate in the conference.
    (2) The Secretaries shall invite and encourage the participation at 
the conference of appropriate representatives of veterans service 
organizations.
    (3) The participants in the conference shall--
            (A) review current policies and practices of the military 
        departments and the Department of Veterans Affairs relating to 
        the provision of military honors at the burial of veterans;
            (B) analyze the costs associated with providing military 
        honors at the burial of veterans, including the costs 
        associated with utilizing personnel and other resources for 
        that purpose;
            (C) assess trends in the rate of death of veterans; and
            (D) propose, consider, and determine means of improving and 
        increasing the availability of military honors at the burial of 
        veterans.
    (4) Not later than 180 days after the date of enactment of this 
Act, the Secretary of Defense shall submit to Congress a report on the 
conference under this subsection. The report shall set forth any 
modifications to Department of Defense directives on military burial 
honors adopted as a result of the conference and include any 
recommendations for legislation that the Secretary considers 
appropriate as a result of the conference.
    (c) Veterans Service Organization Defined.--In this section, the 
term ``veterans service organization'' means any organization 
recognized by the Secretary of Veterans Affairs under section 5902 of 
title 38, United States Code.

SEC. 1080. CHEMICAL STOCKPILE EMERGENCY PREPAREDNESS PROGRAM.

    Section 1412 of the Department of Defense Authorization Act, 1986 
(Public Law 99-145; 50 U.S.C. 1521) is amended by adding at the end of 
subsection (c) the following:
    ``(4)(A) The Director of the Federal Emergency Management Agency 
shall carry out a program to provide assistance to State and local 
governments in developing capabilities to respond to emergencies 
involving risks to the public health or safety within their 
jurisdictions that are identified by the Secretary as being risks 
resulting from--
            ``(i) the storage of any such agents and munitions at 
        military installations in the continental United States; or
            ``(ii) the destruction of such agents and munitions at 
        facilities referred to in paragraph (1)(B).
    ``(B) No assistance may be provided under this paragraph after the 
completion of the destruction of the United States stockpile of lethal 
chemical agents and munitions.''.

SEC. 1081. SENSE OF SENATE REGARDING THE AUGUST 1995 ASSASSINATION 
              ATTEMPT AGAINST PRESIDENT SHEVARDNADZE OF GEORGIA.

    (a) Findings.--Congress makes the following findings:
            (1) On Tuesday, August 29, 1995, President Eduard 
        Shevardnadze of Georgia narrowly survived a car bomb attack as 
        he departed his offices in the Georgian Parliament building to 
        attend the signing ceremony for the new constitution of 
        Georgia.
            (2) The former Chief of the Georgian National Security 
        Service, Lieutenant General Igor Giorgadze, after being 
        implicated in organizing the August 29, 1995, assassination 
        attempt on President Shevardnadze, fled Georgia from the 
        Russian-controlled Varziani airbase on a Russian military 
        aircraft.
            (3) Lieutenant General Giorgadze has been seen openly in 
        Moscow and is believed to have been given residence at a 
        Russian government facility despite the fact that Interpol is 
        conducting a search for Lieutenant General Giorgadze for his 
        role in the assassination attempt against President 
        Shervardnadze.
            (4) The Russian Interior Ministry claims that it is unable 
        to locate Lieutenant General Giorgadze in Moscow.
            (5) The Georgian Security and Interior Ministries presented 
        information to the Russian Interior Ministry on November 13, 
        1996; January 17, 1997; March 7, 1997; March 24, 1997 and 
        August 12, 1997, which included the exact location in Moscow of 
        where Lieutenant General Giorgadze's family lived, the exact 
        location where Lieutenant General Giorgadze lived outside of 
        Moscow in a dacha of the Russian Ministry of Defense; as well 
        as the changing official Russian government license tag numbers 
        and description of the automobile that Lieutenant General 
        Giorgadze uses; the people he associates with; the apartments 
        he visits, and the places including restaurants, markets, and 
        companies, that he frequents.
            (6) On May 12, 1998, the Moscow-based Russian newspaper 
        Zavtra carried an interview with Lieutenant General Giorgadze 
        in which Lieutenant General Giorgadze calls for the overthrow 
        of the Government of Georgia.
            (7) Title II of the Foreign Operations Appropriations, 
        Export Financing, and Related Programs Appropriations Act, 1998 
        (Public Law 105-118) prohibits assistance to any government of 
        the new independent states of the former Soviet Union if that 
        government directs any action in violation of the national 
        sovereignty of any other new independent state.
    (b) Sense of the Senate.--It is the sense of the Senate that the 
Secretary of Defense should--
            (1) urge the Government of the Russian Federation to 
        extradite the former Chief of the Georgian National Security 
        Service, Lieutenant General Igor Giorgadze, to Georgia for the 
        purpose of standing trial for his role in the attempted 
        assassination of Georgian President Eduard Shevardnadze on 
        August 29, 1995;
            (2) request cooperation from the Minister of Defense of the 
        Russian Federation and the Government of the Russian Federation 
        to ensure that Russian military bases on Georgian territory are 
        no longer used to facilitate the escape of assassins seeking to 
        kill the freely elected President of Georgia and to otherwise 
        respect the national sovereignty of Georgia; and
            (3) use all authorities available to the United States 
        Government to provide urgent and immediate assistance to ensure 
        to the maximum extent practicable the personal security of 
        President Shevardnadze.

SEC. 1082. ISSUANCE OF BURIAL FLAGS FOR DECEASED MEMBERS AND FORMER 
              MEMBERS OF THE SELECTED RESERVE.

    Section 2301(a) of title 38, United States Code, is amended--
            (1) by striking out ``and'' at the end of paragraph (1);
            (2) by striking out the period at the end of paragraph (2) 
        and inserting in lieu thereof ``; and''; and
            (3) by adding at the end the following:
            ``(3) deceased individual who--
                    ``(A) was serving as a member of the Selected 
                Reserve (as described in section 10143 of title 10) at 
                the time of death;
                    ``(B) had served at least one enlistment, or the 
                period of initial obligated service, as a member of the 
                Selected Reserve and was discharged from service in the 
                Armed Forces under conditions not less favorable than 
                honorable; or
                    ``(C) was discharged from service in the Armed 
                Forces under conditions not less favorable than 
                honorable by reason of a disability incurred or 
                aggravated in line of duty during the individual's 
                initial enlistment, or period of initial obligated 
                service, as a member of the Selected Reserve.''.

SEC. 1083. ELIMINATING SECRET SENATE HOLDS.

    (a) Standing Order.--It is a standing order of the Senate that a 
Senator who provides notice to leadership of his or her intention to 
object to proceeding to a motion or matter shall disclose the objection 
or hold in the Congressional Record not later than 2 session days after 
the date of the notice.
    (b) Rulemaking.--This section is adopted--
            (1) as an exercise of the rulemaking power of the Senate 
        and as such it is deemed a part of the rules of the Senate and 
        it supersedes other rules only to the extent that it is 
        inconsistent with such rules; and
            (2) with full recognition of the constitutional right of 
        the Senate to change its rules at any time, in the same manner, 
        and to the same extent as in the case of any other rule of the 
        Senate.

SEC. 1084. DEFENSE BURDENSHARING.

    (a) Revised Goals for Efforts To Increase Allied Burdensharing.--
Subsection (a) of section 1221 of the National Defense Authorization 
Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1935; 22 U.S.C. 
1928 note) is amended to read as follows:
    ``(a) Efforts To Increase Allied Burdensharing.--The President 
shall seek to have each nation that has cooperative military relations 
with the United States (including security agreements, basing 
arrangements, or mutual participation in multinational military 
organizations or operations) take one or more of the following actions:
            ``(1) For any nation in which United States military 
        personnel are assigned to permanent duty ashore, increase its 
        financial contributions to the payment of the nonpersonnel 
        costs incurred by the United States Government for stationing 
        United States military personnel in that nation, with a goal of 
        achieving by September 30, 2000, 75 percent of such costs. An 
        increase in financial contributions by any nation under this 
        paragraph may include the elimination of taxes, fees, or other 
        charges levied on United States military personnel, equipment, 
        or facilities stationed in that nation.
            ``(2) Increase its annual budgetary outlays for national 
        defense as a percentage of its gross domestic product by 10 
        percent or at least to a percentage level commensurate to that 
        of the United States by September 30, 1999.
            ``(3) Increase the military assets (including personnel, 
        equipment, logistics, support and other resources) that it 
        contributes or has pledged to contribute to multinational 
        military activities worldwide by 10 percent by September 30, 
        1999.
            ``(4) Increase its annual budgetary outlays for foreign 
        assistance (funds to promote democratization, governmental 
        accountability and transparency, economic stabilization and 
        development, defense economic conversion, respect for the rule 
        of law and internationally recognized human rights, or 
        humanitarian relief efforts) by 10 percent, or to provide such 
        foreign assistance at a minimum annual rate equal to one 
        percent of its gross domestic product, by September 30, 
        1999.''.
    (b) Revised Requirement for Report on Progress in Increasing Allied 
Burdensharing.--Subsection (c) of such section is amended to read as 
follows:
    ``(c) Report on Progress in Increasing Allied Burdensharing.--Not 
later than March 1, 1999, the Secretary of Defense shall submit to 
Congress a report on--
            ``(1) steps taken by other nations toward completing the 
        actions described in subsection (a);
            ``(2) all measures taken by the President, including those 
        authorized in subsection (b), to achieve the actions described 
        in subsection (a);
            ``(3) the difference between the amount allocated by other 
        nations for each of the actions described in subsection (a) 
        during the period beginning on October 1, 1996, and ending on 
        September 30, 1997, and during the period beginning on October 
        1, 1997, and ending on September 30, 1998, or, in the case of 
        any nation for which the data for such periods is inadequate, 
        the difference between the amounts for the latest periods for 
        which adequate data is available; and
            ``(4) the budgetary savings to the United States that are 
        expected to accrue as a result of the steps described under 
        paragraph (1).''.
    (c) Extension of Deadline for Report Regarding National Security 
Bases for Forward Deployment and Burdensharing Relationships.--
Subsection (d)(2) of such section is amended by striking out ``March 1, 
1998'' and inserting in lieu thereof ``March 1, 1999''.

SEC. 1085. REVIEW OF DEFENSE AUTOMATED PRINTING SERVICE FUNCTIONS.

    (a) Review Required.--The Secretary of Defense shall provide for a 
review of the functions of the Defense Automated Printing Service in 
accordance with this section and submit to the Committee on Armed 
Services of the Senate and the Committee on National Security of the 
House of Representatives the matters required under subsection (d) not 
later than March 31, 1999.
    (b) Performance by Independent Entity.--The Secretary of Defense 
shall select the General Accounting Office, an experienced entity in 
the private sector, or any other entity outside the Department of 
Defense to perform the review. The Comptroller General shall perform 
the review if the Secretary selects the Comptroller General to do so.
    (c) Report.--The entity performing the review under this section 
shall submit to the Secretary of Defense a report that sets forth the 
findings and recommendations of that entity resulting from the review. 
The report shall contain the following:
            (1) The functions that are inherently national security 
        functions and, as such, need to be performed within the 
        Department of Defense, together with a detailed justification 
        for the determination for each such function.
            (2) The functions that are appropriate for transfer to 
        another appropriate entity to perform, including private sector 
        entity.
            (3) Any recommended legislation and any administrative 
        action that is necessary for transferring or outsourcing the 
        functions.
            (4) A discussion of the costs or savings associated with 
        the transfers or outsourcing.
            (5) A description of the management structure of the 
        Defense Automated Printing Service.
            (6) A list of all sites where functions of the Defense 
        Automated Printing Service are performed by the Defense 
        Automated Printing Service.
            (7) The total number of the personnel employed by the 
        Defense Automated Printing Service and the locations where the 
        personnel perform the duties as employees.
            (8) A description of the functions performed by the Defense 
        Automated Printing Service and, for each such function, the 
        number of employees of the Defense Automated Printing Service 
        that perform the function.
            (9) For each site identified under paragraph (6), an 
        assessment of each type of equipment at the site.
            (10) The type and explanation of the networking and 
        technology integration linking all of the sites referred to in 
        paragraph (6).
            (11) The current and future requirements of customers of 
        the Defense Automated Printing Service.
            (12) An assessment of the effectiveness of the current 
        structure of the Defense Automated Printing Service in 
        supporting current and future customer requirements and plans 
        to address any deficiencies in supporting such requirements.
            (13) A description and discussion of the best business 
        practices that are used by the Defense Automated Printing 
        Service and of other best business that could be used by the 
        Defense Automated Printing Service.
            (14) Options for maximizing the Defense Automated Printing 
        Service structure and services to provide the most cost 
        effective service to its customers.
    (d) Review and Comments of Secretary of Defense.--(1) After 
reviewing the report, the Secretary of Defense shall submit the report 
to Congress, together with the Secretary's comments on the report and a 
plan to transfer or outsource from the Defense Automated Printing 
Service to another appropriate entity the functions of the Defense 
Automated Printing Service that--
            (1) are not identified in the report as being inherently 
        national security functions; and
            (2) the Secretary believes should be transferred or 
        outsourced for performance outside the Department of Defense in 
        accordance with law.
    (e) Extension of Requirement for Competitive Procurement of 
Services.--Section 351(a) of the National Defense Authorization Act for 
Fiscal Year 1996 (Public Law 104-106; 110 Stat. 266), as amended by 
section 351(a) of Public Law 104-201 (110 Stat. 2490) and section 
387(a)(1) of Public Law 105-85 (111 Stat. 1713), is further amended by 
striking out ``1998'' and inserting in lieu thereof ``1999''.

SEC. 1086. INCREASED MISSILE THREAT IN ASIA-PACIFIC REGION.

    (a) Study.--The Secretary of Defense shall carry out a study of the 
architecture requirements for the establishment and operation of a 
theater ballistic missile defense system in the Asia-Pacific region 
that would have the capability to protect key regional allies of the 
United States.
    (b) Report.--(1) Not later than January 1, 1999, the Secretary 
shall submit to the Committee on National Security of the House of 
Representatives and the Committee on Armed Services of the Senate a 
report containing--
            (A) the results of the study conducted under subsection 
        (a);
            (B) the factors used to obtain such results; and
            (C) a description of any existing United States missile 
        defense system that could be transferred to key allies of the 
        United States in the Asia-Pacific region to provide for their 
        self-defense against limited ballistic missile attacks.
    (2) The report shall be submitted in both classified and 
unclassified form.

SEC. 1087. COOPERATION BETWEEN THE DEPARTMENT OF THE ARMY AND THE EPA 
              IN MEETING CWC REQUIREMENTS.

    (a) Findings.--The Senate finds that:
            (1) Compliance with international obligations to destroy 
        the United States chemical stockpile by April 28, 2007, as 
        required under the Chemical Weapons Convention (CWC), is a 
        national priority.
            (2) The President should ensure that the Department of 
        Defense and the Department of the Army receive all necessary 
        assistance from Federal agencies in expediting and accelerating 
        the destruction of the lethal chemical stockpile.
            (3) The Environmental Protection Agency, as one of the 
        Federal agencies with responsibilities to assist the Department 
        of Defense and the Department of the Army, has asserted that it 
        is not adequately funded to provide, or meet its National 
        responsibilities under the Resource Conservation and Recovery 
        Act (RCRA) permitting requirements, in order to assist the 
        United States Government in meeting its international 
        obligations to destroy its lethal chemical stockpile.
            (4) The Environmental Protection Agency (EPA) should work 
        in concert with the State and local governments in this 
        process, and that they should properly budget for this process.
    (b) Report Required.--The Department of Defense, in coordination 
with the Environmental Protection Agency, shall report to the 
congressional defense committees by April 1, 1999, on the following--
            (1) responsibilities associated with obligations under the 
        Resource Conservation and Recovery Act (RCRA) permitting 
        process related to United States international obligations 
        under the CWC to destroy the United States chemical stockpile;
            (2) technical assistance provided by the EPA to its 
        regional offices and the States and local governments in the 
        permitting process, and how that assistance facilitates the 
        issuance of the environmental permits at the various sites;
            (3) responsibility of the Department of Defense to provide 
        funding to the EPA, for the facilitation of meetings of the 
        National Chemical Agent Demilitarization Workgroup, meetings 
        between the Office of Solid Waste and the affected EPA Regional 
        Offices and States, and meetings between the Office of Solid 
        Waste, the Program Manager for Chemical Demilitarization and 
        the Department of Defense; and
            (4) responsibility of the Department of Defense and the 
        Department of the Army to provide funds to the Environmental 
        Protection Agency to hire full-time equivalents to assist in 
        the formulation of RCRA permits.

           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

SEC. 1101. REPEAL OF EMPLOYMENT PREFERENCE NOT NEEDED FOR RECRUITMENT 
              AND RETENTION OF QUALIFIED CHILD CARE PROVIDERS.

    Section 1792 of title 10, United States Code, is amended--
            (1) by striking out subsection (d); and

SEC. 1102. MAXIMUM PAY RATE COMPARABILITY FOR FACULTY MEMBERS OF THE 
              UNITED STATES AIR FORCE INSTITUTE OF TECHNOLOGY.

    Section 9314(b)(2)(B) of title 10, United States Code, is amended 
by striking out ``section 5306(e)'' and inserting in lieu thereof 
``section 5373''.
            (2) by redesignating subsection (e) as subsection (d).

SEC. 1103. FOUR-YEAR EXTENSION OF VOLUNTARY SEPARATION INCENTIVE PAY 
              AUTHORITY.

    Section 5597(e) of title 5, United States Code, is amended by 
striking out ``September 30, 2001'' and inserting in lieu thereof 
``September 30, 2003''.

SEC. 1104. DEPARTMENT OF DEFENSE EMPLOYEE VOLUNTARY EARLY RETIREMENT 
              AUTHORITY.

    (a) Civil Service Retirement System.--Section 8336 of title 5, 
United States Code, is amended--
            (1) in subsection (d)(2), by inserting ``except in the case 
        of an employee described in subsection (o)(1),'' after ``(2)''; 
        and
            (2) by adding at the end the following:
    ``(o)(1) An employee of the Department of Defense who is separated 
from the service under conditions described in paragraph (2) after 
completing 25 years of service or after becoming 50 years of age and 
completing 20 years of service is entitled to an annuity.
    ``(2) Paragraph (1) applies to an employee who--
            ``(A) has been employed continuously by the Department of 
        Defense for more than 30 days before the date on which the 
        Secretary concerned requests the determinations required under 
        in subparagraph (D)(i);
            ``(B) is serving under an appointment that is not limited 
        by time;
            ``(C) has not received a decision notice of involuntary 
        separation for misconduct or unacceptable performance that is 
        pending decision; and
            ``(D) is separated from the service voluntarily during a 
        period in which--
                    ``(i) the Department of Defense or the military 
                department or subordinate organization within the 
                Department of Defense or military department in which 
                the employee is serving is undergoing a major 
                reorganization, a major reduction in force, or a major 
                transfer of function, and employees comprising a 
                significant percentage of the employees serving in that 
                department or organization are to be separated or 
                subject to an immediate reduction in the rate of basic 
                pay (without regard to subchapter VI of chapter 53, or 
                comparable provisions of law), as determined by the 
                Office of Personnel Management (under regulations 
                prescribed by the Office) upon the request of the 
                Secretary concerned; and
                    ``(ii) the employee is within the scope of an offer 
                of voluntary early retirement (as defined by 
                organizational unit, occupational series or level, 
                geographical location, any other similar factor that 
                the Office of Personnel Management determines 
                appropriate, or any combination of such definitions of 
                scope), as determined by the Secretary concerned under 
                regulations prescribed by the Office.
    ``(3) In this subsection, the term `Secretary concerned' means--
            ``(A) the Secretary of Defense, with respect to an employee 
        of the Department of Defense not employed in a position in a 
        military department;
            ``(B) the Secretary of the Army, with respect to an 
        employee of the Department of the Army;
            ``(C) the Secretary of the Navy, with respect to an 
        employee of the Department of the Navy;
            ``(D) the Secretary of the Air Force, with respect to an 
        employee of the Department of the Air Force.''.
    (b) Federal Employees' Retirement System.--Section 8414 of such 
title is amended--
            (1) in subsection (b)(1)(B), inserting ``except in the case 
        of an employee described in subsection (d)(1),'' after ``(B)''; 
        and
            (2) by adding at the end the following:
    ``(d)(1) An employee of the Department of Defense who is separated 
from the service under conditions described in paragraph (2) after 
completing 25 years of service or after becoming 50 years of age and 
completing 20 years of service is entitled to an annuity.
    ``(2) Paragraph (1) applies to an employee who--
            ``(A) has been employed continuously by the Department of 
        Defense for more than 30 days before the date on which the 
        Secretary concerned requests the determinations required under 
        subparagraph (D)(i);
            ``(B) is serving under an appointment that is not limited 
        by time;
            ``(C) has not received a decision notice of involuntary 
        separation for misconduct or unacceptable performance that is 
        pending decision; and
            ``(D) is separated from the service voluntarily during a 
        period in which--
                    ``(i) the Department of Defense or the military 
                department or subordinate organization within the 
                Department of Defense or military department in which 
                the employee is serving is undergoing a major 
                reorganization, a major reduction in force, or a major 
                transfer of function, and employees comprising a 
                significant percentage of the employees serving in that 
                department or organization are to be separated or 
                subject to an immediate reduction in the rate of basic 
                pay (without regard to subchapter VI of chapter 53, or 
                comparable provisions of law), as determined by the 
                Office of Personnel Management (under regulations 
                prescribed by the Office) upon the request of the 
                Secretary concerned; and
                    ``(ii) the employee is within the scope of an offer 
                of voluntary early retirement (as defined by 
                organizational unit, occupational series or level, 
                geographical location, any other similar factor that 
                the Office of Personnel Management determines 
                appropriate, or any combination of such definitions of 
                scope), as determined by the Secretary concerned under 
                regulations prescribed by the Office.
    ``(3) In this subsection, the term `Secretary concerned' means--
            ``(A) the Secretary of Defense, with respect to an employee 
        of the Department of Defense not employed in a position in a 
        military department;
            ``(B) the Secretary of the Army, with respect to an 
        employee of the Department of the Army;
            ``(C) the Secretary of the Navy, with respect to an 
        employee of the Department of the Navy;
            ``(D) the Secretary of the Air Force, with respect to an 
        employee of the Department of the Air Force.''.
    (c) Conforming Amendments.--(1) Section 8339(h) of such title is 
amended by striking out ``or (j)'' in the first sentence and inserting 
in lieu thereof ``(j), or (o)''.
    (2) Section 8464(a)(1)(A)(i) of such title is amended by striking 
out ``or (b)(1)(B)'' and inserting in lieu thereof ``, (b)(1)(B), or 
(d)''.

SEC. 1105. DEFENSE ADVANCED RESEARCH PROJECTS AGENCY EXPERIMENTAL 
              PERSONNEL MANAGEMENT PROGRAM FOR TECHNICAL PERSONNEL.

    (a) Program Authorized.--During the 5-year period beginning on the 
date of the enactment of this Act, the Secretary of Defense may carry 
out a program of experimental use of special personnel management 
authority provided in this section in order to facilitate the 
recruitment of eminent experts in science or engineering for research 
and development projects administered by the Defense Advanced Research 
Projects Agency.
    (b) Special Personnel Management Authority.--Under the program, the 
Secretary may--
            (1) appoint scientists and engineers from outside the civil 
        service and uniformed services (as such terms are defined in 
        section 2101 of title 5, United States Code) to not more than 
        20 scientific and engineering positions in the Defense Advanced 
        Research Projects Agency without regard to any provision of 
        title 5, United States Code, governing the appointment of 
        employees in the civil service;
            (2) prescribe the rates of basic pay for positions to which 
        employees are appointed under paragraph (1) at rates not in 
        excess of the maximum rate of basic pay authorized for senior-
        level positions under section 5376 of title 5, United States 
        Code, notwithstanding any provision of such title governing the 
        rates of pay or classification of employees in the executive 
        branch; and
            (3) pay any employee appointed under paragraph (1) payments 
        in addition to basic pay within the limit applicable to the 
        employee under subsection (d)(1).
    (c) Limitation on Term of Appointment.--(1) Except as provided in 
paragraph (2), the service of an employee under an appointment under 
subsection (b)(1) may not exceed four years.
    (2) The Secretary may, in the case of a particular employee, extend 
the period to which service is limited under paragraph (1) by up to two 
years if the Secretary determines that such action is necessary to 
promote the efficiency of the Defense Advanced Research Projects 
Agency.
    (d) Limitations on Additional Payments.--(1) The total amount of 
the additional payments paid to an employee under subsection (b)(3) for 
any 12-month period may not exceed the least of the following amounts:
            (A) $25,000.
            (B) The amount equal to 25 percent of the employee's annual 
        rate of basic pay.
            (C) The amount of the limitation that is applicable for a 
        calendar year under section 5307(a)(1) of title 5, United 
        States Code.
    (2) An employee appointed under subsection (b)(1) is not eligible 
for any bonus, monetary award, or other monetary incentive for service 
except for payments authorized under subsection (b)(3).
    (e) Period of Program.--(1) The program authorized under this 
section shall terminate at the end of the 5-year period referred to in 
subsection (a).
    (2) After the termination of the program--
            (A) no appointment may be made under paragraph (1) of 
        subsection (b);
            (B) a rate of basic pay prescribed under paragraph (2) of 
        that subsection may not take effect for a position; and
            (C) no period of service may be extended under subsection 
        (c)(1).
    (f) Savings Provisions.--In the case of an employee who, on the day 
before the termination of the program, is serving in a position 
pursuant to an appointment under subsection (b)(1)--
            (1) the termination of the program does not terminate the 
        employee's employment in that position before the expiration of 
        the lesser of--
                    (A) the period for which the employee was 
                appointed; or
                    (B) the period to which the employee's service is 
                limited under subsection (c), including any extension 
                made under paragraph (2) of that subsection before the 
                termination of the program; and
            (2) the rate of basic pay prescribed for the position under 
        subsection (b)(2) may not be reduced for so long (within the 
        period applicable to the employee under paragraph (1)) as the 
        employee continues to serve in the position without a break in 
        service.
    (g) Annual Report.--(1) Not later than October 15 of each year, 
beginning in 1999, the Secretary of Defense shall submit a report on 
the program to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives. The 
report submitted in a year shall cover the 12-month period ending on 
the day before the anniversary, in that year, of the date of the 
enactment of this Act.
    (2) The annual report shall contain, for the period covered by the 
report, the following:
            (A) A detailed discussion of the exercise of authority 
        under this section.
            (B) The sources from which appointees were recruited.
            (C) The methodology used for identifying and selecting 
        appointees.
            (D) Any additional information that the Secretary considers 
        helpful for assessing the utility of the authority under this 
        section.

              TITLE XII--JOINT WARFIGHTING EXPERIMENTATION

SEC. 1201. FINDINGS.

    Congress makes the following findings:
            (1) The collapse of the Soviet Union in 1991 and the 
        unprecedented explosion of technological advances that could 
        fundamentally redefine military threats and military 
        capabilities in the future have generated a need to assess the 
        defense policy, strategy, and force structure necessary to meet 
        future defense requirements of the United States.
            (2) The assessment conducted by the administration of 
        President Bush (known as the ``Base Force'' assessment) and the 
        assessment conducted by the administration of President Clinton 
        (known as the ``Bottom-Up Review'') were important attempts to 
        redefine the defense strategy of the United States and the 
        force structure of the Armed Forces necessary to execute that 
        strategy.
            (3) Those assessments have become inadequate as a result of 
        the pace of global geopolitical change and the speed of 
        technological change, which have been greater than expected.
            (4) The Chairman of the Joint Chiefs of Staff reacted to 
        the changing environment by developing and publishing in May 
        1996 a vision statement, known as ``Joint Vision 2010'', to be 
        a basis for the transformation of United States military 
        capabilities. The vision statement embodies the improved 
        intelligence and command and control that is available in the 
        information age and sets forth the operational concepts of 
        dominant maneuver, precision engagement, full-dimensional 
        protection, and focused logistics to achieve the objective of 
        full spectrum dominance.
            (5) In 1996 Congress, concerned about the shortcomings in 
        defense policies and programs derived from the Base-Force 
        Review and the Bottom-Up Review, determined that there was a 
        need for a new, comprehensive assessment of the defense 
        strategy of the United States and the force structure of the 
        Armed Forces necessary for meeting the threats to the United 
        States in the 21st century.
            (6) As a result of that determination, Congress passed the 
        Military Force Structure Review Act of 1996 (subtitle B of 
        title IX of the National Defense Authorization Act for Fiscal 
        Year 1997), which required the Secretary of Defense to complete 
        in 1997 a quadrennial defense review of the defense program of 
        the United States. The review was required to include a 
        comprehensive examination of the defense strategy, force 
        structure, force modernization plans, infrastructure, and other 
        elements of the defense program and policies with a view toward 
        determining and expressing the defense strategy of the United 
        States and establishing a revised defense program through 2005. 
        The Act also established a National Defense Panel to assess the 
        Quadrennial Defense Review and to conduct an independent, 
        nonpartisan review of the strategy, force structure, and 
        funding required to meet anticipated threats to the national 
        security of the United States through 2010 and beyond.
            (7) The Quadrennial Defense Review, completed by the 
        Secretary of Defense in May 1997, defined the defense strategy 
        in terms of ``Shape, Respond, and Prepare Now''. The 
        Quadrennial Defense Review placed greater emphasis on the need 
        to prepare now for an uncertain future by exploiting the 
        revolution in technology and transforming the force toward 
        Joint Vision 2010. It concluded that our future force will be 
        different in character than our current force.
            (8) The National Defense Panel Report, published in 
        December 1997, concluded that ``the Department of Defense 
        should accord the highest priority to executing a 
        transformation strategy for the United States military, 
        starting now.'' The panel recommended the establishment of a 
        Joint Forces Command with the responsibility to be the joint 
        force integrator and provider and the responsibility for 
        driving the process for transforming United States forces, 
        including the conduct of joint experimentation, and to have the 
        budget for carrying out those responsibilities.
            (9) The assessments of both the Quadrennial Defense Review 
        and the National Defense Panel provide Congress with a 
        compelling argument that the future security environment and 
        the military challenges to be faced by the United States in the 
        future will be fundamentally different than the current 
        environment and challenges. The assessments also reinforce the 
        foundational premise of the Goldwater-Nichols Department of 
        Defense Reorganization Act of 1986 that warfare, in all of its 
        varieties, will be joint warfare requiring the execution of 
        developed joint operational concepts.
            (10) A process of joint experimentation is necessary for--
                    (A) integrating advances in technology with changes 
                in the organizational structure of the Armed Forces and 
                the development of joint operational concepts that will 
                be effective against national security threats 
                anticipated for the future; and
                    (B) identifying and assessing the interdependent 
                aspects of joint warfare that are key for transforming 
                the conduct of military operations by the United States 
                to meet those anticipated threats successfully.
            (11) It is critical for future readiness that the Armed 
        Forces of the United States innovatively investigate and test 
        technologies, forces, and joint operational concepts in 
        simulations, wargames, and virtual settings, as well as in 
        field environments under realistic conditions against the full 
        range of future challenges. It is essential that an energetic 
        and innovative organization be established and empowered to 
        design and implement a process of joint experimentation to 
        develop and validate new joint warfighting concepts, along with 
        experimentation by the Armed Forces, that is directed at 
        transforming the Armed Forces to meet the threats to the 
        national security that are anticipated for the early 21st 
        century. That process will drive changes in doctrine, 
        organization, training and education, materiel, leadership, and 
        personnel.
            (12) The Department of Defense is committed to conducting 
        aggressive experimentation as a key component of its 
        transformation strategy.
            (13) The competition of ideas is critical for achieving 
        effective transformation. Experimentation by each of the Armed 
        Forces has been, and will continue to be, a vital aspect of the 
        pursuit of effective transformation. Joint experimentation 
        leverages the effectiveness of each of the Armed Forces and the 
        Defense Agencies.

SEC. 1202. SENSE OF CONGRESS.

    (a) Designation of Commander To Have Joint Warfighting 
Experimentation Mission.--It is the sense of Congress that Congress 
supports the initiative of the Secretary of Defense and the Chairman of 
the Joint Chiefs of Staff to designate a commander of a combatant 
command to have the mission for joint warfighting experimentation, 
consistent with the understanding of Congress that the Chairman of the 
Joint Chiefs of Staff will assign the designated commander the tasks to 
develop and validate new joint warfighting concepts and capabilities, 
and to determine the implications, for doctrine, organization, training 
and education, materiel, leadership, and personnel, of the Department 
of Defense strategy for transforming the Armed Forces to meet the 
national security threats of the future.
    (b) Resources of Commander.--It is, further, the sense of Congress 
that the commander designated to have the joint warfighting 
experimentation mission should--
            (1) have sufficient freedom of action and authority over 
        the necessary forces to successfully establish and conduct the 
        process of joint warfighting experimentation;
            (2) be provided resources adequate for the joint 
        warfighting experimentation process; and
            (3) have authority over the use of the resources for the 
        planning, preparation, conduct, and assessment of joint 
        warfighting experimentation.
    (c) Authority and Responsibilities of Commander.--It is, further, 
the sense of Congress that, for the conduct of joint warfighting 
experimentation to be effective, it is necessary that the commander 
designated to have the joint warfighting experimentation mission also 
have the authority and responsibility for the following:
            (1) Developing and implementing a process of joint 
        experimentation to formulate and validate concepts critical for 
        joint warfighting in the future, including (in such process) 
        analyses, simulations, wargames, information superiority and 
        other experiments, advanced concept technology demonstrations, 
        and joint exercises conducted in virtual and actual field 
        environments.
            (2) Planning, preparing, and conducting the program of 
        joint warfighting experimentation.
            (3) Assessing the effectiveness of organizational 
        structures, operational concepts, and technologies employed in 
        joint experimentation, investigating opportunities for 
        coordinating the evolution of the organizational structure of 
        the Armed Forces compatibly with the concurrent evolution of 
        advanced technologies, and investigating new concepts for 
        transforming joint warfighting capabilities to meet the 
        operational challenges expected to be encountered by the Armed 
        Forces in the early 21st century.
            (4) Coordinating with each of the Armed Forces and the 
        Defense Agencies regarding the development of the equipment 
        (including surrogate or real technologies, platforms, and 
        systems) necessary for the conduct of joint experimentation, 
        or, if necessary, developing such equipment directly.
            (5) Coordinating with each of the Armed Forces and the 
        Defense Agencies regarding the acquisition of the materiel, 
        supplies, services, and surrogate or real technology resources 
        necessary for the conduct of joint experimentation, or, if 
        necessary, acquiring such items and services directly.
            (6) Developing scenarios and measures of effectiveness for 
        joint experimentation.
            (7) Conducting so-called ``red team'' vulnerability 
        assessments as part of joint experimentation.
            (8) Assessing the interoperability of equipment and forces.
            (9) Providing the Secretary of Defense and the Chairman of 
        the Joint Chiefs of Staff with the commander's recommendations 
        (developed on the basis of joint experimentation) for reducing 
        unnecessary redundancy of equipment and forces.
            (10) Providing the Secretary of Defense and the Chairman of 
        the Joint Chiefs of Staff with the commander's recommendations 
        (developed on the basis of joint experimentation) regarding 
        synchronization of the fielding of advanced technologies among 
        the Armed Forces to enable the development and execution of 
        joint operational concepts.
            (11) Submitting, reviewing, and making recommendations (in 
        conjunction with the joint experimentation and evaluation 
        process) to the Chairman of the Joint Chiefs of Staff on 
        mission needs statements and operational requirements 
        documents.
            (12) Exploring new operational concepts (including those 
        developed within the Office of the Secretary of Defense and 
        Defense Agencies, other unified commands, the Armed Forces, and 
        the Joint Staff), and integrating and testing in joint 
        experimentation the systems and concepts that result from 
        warfighting experimentation by the Armed Forces and the Defense 
        Agencies.
            (13) Developing, planning, refining, assessing, and 
        recommending to the Secretary of Defense and the Chairman of 
        the Joint Chiefs of Staff the most promising joint concepts and 
        capabilities for experimentation and assessment.
            (14) Assisting the Secretary of Defense and the Chairman of 
        the Joint Chiefs of Staff to prioritize joint requirements and 
        acquisition programs on the basis of joint warfighting 
        experimentation.
    (d) Continued Experimentation by Other Defense Organizations.--It 
is, further, the sense of Congress that--
            (1) the Armed Forces are expected to continue to develop 
        concepts and conduct intraservice and multiservice warfighting 
        experimentation within their core competencies; and
            (2) the commander of United States Special Operations 
        Command is expected to continue to develop concepts and conduct 
        joint experimentation associated with special operations 
        forces.
    (e) Congressional Review.--It is, further, the sense of Congress 
that--
            (1) Congress will carefully review the initial report and 
        annual reports on joint warfighting experimentation required 
        under section 1203 to determine the adequacy of the scope and 
        pace of the transformation of the Armed Forces to meet future 
        challenges to the national security; and
            (2) if the progress is inadequate, Congress will consider 
        legislation to establish a unified combatant command with the 
        mission, forces, budget, responsibilities, and authority 
        described in the preceding provisions of this section.

SEC. 1203. REPORTS ON JOINT WARFIGHTING EXPERIMENTATION.

    (a) Initial Report.--(1) On such schedule as the Secretary of 
Defense shall direct, the commander of the combatant command assigned 
the mission for joint warfighting experimentation shall submit to the 
Secretary an initial report on the implementation of joint 
experimentation. Not later than April 1, 1999, the Secretary shall 
submit the report, together with any comments that the Secretary 
considers appropriate and any comments that the Chairman of the Joint 
Chiefs of Staff considers appropriate, to the Chairmen of the Committee 
on Armed Services of the Senate and the Committee on National Security 
of the House of Representatives.
    (2) The initial report of the commander shall include the 
following:
            (A) The commander's understanding of the commander's 
        specific authority and responsibilities and of the commander's 
        relationship to the Secretary of Defense, the Chairman of the 
        Joint Chiefs of Staff, the Joint Staff, the commanders of other 
        combatant commands, the Armed Forces, and the Defense Agencies 
        and activities.
            (B) The organization of the commander's combatant command, 
        and of its staff, for carrying out the joint warfighting 
        experimentation mission.
            (C) The process established for tasking forces to 
        participate in joint warfighting experimentation and the 
        commander's specific authority over the forces.
            (D) Any forces designated or made available as joint 
        experimentation forces.
            (E) The resources provided for joint warfighting 
        experimentation, including the personnel and funding for the 
        initial implementation of joint experimentation, the process 
        for providing the resources to the commander, the categories of 
        the funding, and the authority of the commander for budget 
        execution.
            (F) The authority of the commander, and the process 
        established, for the development and acquisition of the 
        material, supplies, services, and equipment necessary for the 
        conduct of joint warfighting experimentation, including the 
        authority and process for development and acquisition by the 
        Armed Forces and the Defense Agencies and the authority and 
        process for development and acquisition by the commander 
        directly.
            (G) The authority of the commander to design, prepare, and 
        conduct joint experiments (including the scenarios and measures 
        of effectiveness used) for assessing operational concepts for 
        meeting future challenges to the national security.
            (H) The role assigned the commander for--
                    (i) integrating and testing in joint warfighting 
                experimentation the systems that emerge from 
                warfighting experimentation by the Armed Forces or the 
                Defense Agencies;
                    (ii) assessing the effectiveness of organizational 
                structures, operational concepts, and technologies 
                employed in joint warfighting experimentation; and
                    (iii) assisting the Secretary of Defense and the 
                Chairman of the Joint Chiefs of Staff in prioritizing 
                acquisition programs in relationship to future joint 
                warfighting capabilities.
            (I) Any other comments that the commander considers 
        appropriate.
    (b) Annual Report.--(1) On such schedule as the Secretary of 
Defense shall direct, the commander of the combatant command assigned 
the mission for joint warfighting experimentation shall submit to the 
Secretary an annual report on the conduct of joint experimentation 
activities for the fiscal year ending in the year of the report. Not 
later than December 1 of each year, the Secretary shall submit the 
report, together with any comments that the Secretary considers 
appropriate and any comments that the Chairman of the Joint Chiefs of 
Staff considers appropriate, to the Chairmen of the Committee on Armed 
Services of the Senate and the Committee on National Security of the 
House of Representatives. The first annual report shall be submitted in 
1999.
    (2) The annual report of the commander shall include, for the 
fiscal year covered by the report, the following:
            (A) Any changes in--
                    (i) the commander's authority and responsibilities 
                for joint warfighting experimentation;
                    (ii) the commander's relationship to the Secretary 
                of Defense, the Chairman of the Joint Chiefs of Staff, 
                the Joint Staff, the commanders of the other combatant 
                commands, the Armed Forces, or the Defense Agencies or 
                activities;
                    (iii) the organization of the commander's command 
                and staff for joint warfighting experimentation;
                    (iv) any forces designated or made available as 
                joint experimentation forces;
                    (v) the process established for tasking forces to 
                participate in joint experimentation activities or the 
                commander's specific authority over the tasked forces;
                    (vi) the procedures for providing funding for the 
                commander, the categories of funding, or the 
                commander's authority for budget execution;
                    (vii) the authority of the commander, and the 
                process established, for the development and 
                acquisition of the material, supplies, services, and 
                equipment necessary for the conduct of joint 
                warfighting experimentation;
                    (viii) the commander's authority to design, 
                prepare, and conduct joint experiments (including the 
                scenarios and measures of effectiveness used) for 
                assessing operational concepts for meeting future 
                challenges to the national security; or
                    (ix) any role described in subsection (a)(2)(H).
            (B) The conduct of joint warfighting experimentation 
        activities, including the number of activities, the forces 
        involved, the national security challenges addressed, the 
        operational concepts assessed, and the scenarios and measures 
        of effectiveness used.
            (C) An assessment of the results of warfighting 
        experimentation within the Department of Defense.
            (D) The effect of warfighting experimentation on the 
        process for transforming the Armed Forces to meet future 
        challenges to the national security.
            (E) Any recommendations that the commander considers 
        appropriate regarding--
                    (i) the development or acquisition of advanced 
                technologies; or
                    (ii) changes in organizational structure, 
                operational concepts, or joint doctrine.
            (F) An assessment of the adequacy of resources, and any 
        recommended changes for the process of providing resources, for 
        joint warfighting experimentation.
            (G) Any recommended changes in the authority or 
        responsibilities of the commander.
            (H) Any additional comments that the commander considers 
        appropriate.

            Passed the Senate June 25, 1998.

            Attest:

                                                    GARY SISCO,

                                                             Secretary.