[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 936 Placed on Calendar Senate (PCS)]





                                                        Calendar No. 88

105th CONGRESS

  1st Session

                                 S. 936

_______________________________________________________________________

                                 A BILL

     To authorize appropriations for fiscal year 1998 for military 
activities of the Department of Defense, for military construction, and 
   for defense activities of the Department of Energy, to prescribe 
personnel strengths for such fiscal year for the Armed Forces, and for 
                            other purposes.

_______________________________________________________________________

                June 18 (legislative day, June 17), 1997

                 Read twice and placed on the calendar





                                                        Calendar No. 88
105th CONGRESS
  1st Session
                                 S. 936

     To authorize appropriations for fiscal year 1998 for military 
activities of the Department of Defense, for military construction, and 
   for defense activities of the Department of Energy, to prescribe 
personnel strengths for such fiscal year for the Armed Forces, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                June 18 (legislative day, June 17), 1997

   Mr. Thurmond, from the Committee on Armed Services, reported the 
    following original bill; which was read twice and placed on the 
                                calendar

_______________________________________________________________________

                                 A BILL


 
     To authorize appropriations for fiscal year 1998 for military 
activities of the Department of Defense, for military construction, and 
   for defense activities of the Department of Energy, to prescribe 
personnel strengths for such fiscal year for the Armed Forces, and for 
                            other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Defense Authorization Act 
for Fiscal Year 1998''.

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

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

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

                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

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

Sec. 111. Army helicopter modernization plan.
Sec. 112. Multiyear procurement authority for AH-64D Longbow Apache 
                            fire control radar.
                       Subtitle C--Navy Programs

Sec. 121. New attack submarine program.
Sec. 122. Nuclear aircraft carrier program.
Sec. 123. Exception to cost limitation for Seawolf submarine program.
Sec. 124. Airborne self-protection jammer program.
                     Subtitle D--Air Force Programs

Sec. 131. B-2 bomber aircraft program.
                       Subtitle E--Other Matters

Sec. 141. Prohibition on use of funds for acquisition or alteration of 
                            private drydocks.
Sec. 142. Replacement of engines on aircraft derived from Boeing 707 
                            aircraft.
Sec. 143. Exception to requirement for a particular determination for 
                            sales of manufactured articles or services 
                            of Army industrial facilities outside the 
                            United States.
         TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

              Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
    Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Joint Strike Fighter program.
Sec. 212. F-22 aircraft program.
Sec. 213. High Altitude Endurance Unmanned Vehicle program.
Sec. 214. Advanced Anti-Radiation Guided Missile program.
Sec. 215. Federally funded research and development centers.
Sec. 216. Goal for dual-use science and technology projects.
Sec. 217. Transfers of authorizations for counterproliferation support 
                            program.
Sec. 218. Kinetic Energy Tactical Anti-Satellite Technology program.
Sec. 219. Clementine 2 Micro-Satellite development program.
             Subtitle C--Ballistic Missile Defense Programs

Sec. 221. National Missile Defense program.
Sec. 222. Reversal of decision to transfer procurement funds from the 
                            Ballistic Missile Defense Organization.
                       Subtitle D--Other Matters

Sec. 231. Manufacturing Technology program.
Sec. 232. Use of major range and test facility installations by 
                            commercial entities.
Sec. 233. Eligibility for the Defense Experimental Program to Stimulate 
                            Competitive Research.
Sec. 234. Restructuring of National Oceanographic Partnership Program 
                            organizations.
                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working-capital funds.
Sec. 303. Armed Forces Retirement Home.
Sec. 304. Transfer from National Defense Stockpile Transaction Fund.
Sec. 305. Fisher House Trust Funds.
                   Subtitle B--Depot-Level Activities

Sec. 311. Percentage limitation on performance of depot-level 
                            maintenance of materiel.
Sec. 312. Centers of Industrial and Technical Excellence.
Sec. 313. Clarification of prohibition on management of depot employees 
                            by constraints on personnel levels.
Sec. 314. Annual report on depot-level maintenance and repair.
Sec. 315. Report on allocation of core logistics activities among 
                            Department of Defense facilities and 
                            private sector facilities.
Sec. 316. Review of use of temporary duty assignments for ship repair 
                            and maintenance.
Sec. 317. Repeal of a conditional repeal of certain depot-level 
                            maintenance and repair laws and a related 
                            reporting requirement.
Sec. 318. Extension of authority for naval shipyards and aviation 
                            depots to engage in defense-related 
                            production and services.
                  Subtitle C--Environmental Provisions

Sec. 331. Clarification of authority relating to storage and disposal 
                            of nondefense toxic and hazardous materials 
                            on Department of Defense property.
Sec. 332. Annual report on payments and activities in response to fines 
                            and penalties assessed under environmental 
                            laws.
Sec. 333. Annual report on environmental activities of the Department 
                            of Defense overseas.
Sec. 334. Membership terms for Strategic Environmental Research and 
                            Development Program Scientific Advisory 
                            Board.
Sec. 335. Additional information on agreements for agency services in 
                            support of environmental technology 
                            certification.
Sec. 336. Risk assessments under the Defense Environmental Restoration 
                            Program.
Sec. 337. Recovery and sharing of costs of environmental restoration at 
                            Department of Defense sites.
Sec. 338. Pilot program for the sale of air pollution emission 
                            reduction incentives.
Sec. 339. Tagging system for identification of hydrocarbon fuels used 
                            by the Department of Defense.
  Subtitle D--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 351. Funding sources for construction and improvement of 
                            commissary store facilities.
Sec. 352. Integration of military exchange services.
                       Subtitle E--Other Matters

Sec. 361. Advance billings for working-capital funds.
Sec. 362. Center for Excellence in Disaster Management and Humanitarian 
                            Assistance.
Sec. 363. Administrative actions adversely affecting military training 
                            or other readiness activities.
Sec. 364. Financial assistance to support additional duties assigned to 
                            Army National Guard.
Sec. 365. Sale of excess, obsolete, or unserviceable ammunition and 
                            ammunition components.
Sec. 366. Inventory management.
Sec. 367. Warranty claims recovery pilot program.
Sec. 368. Adjustment and diversification assistance to enhance 
                            increased performance of military family 
                            support services by private sector sources.
              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Permanent end strength levels to support 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.
              Subtitle C--Authorization of Appropriations

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

                    Subtitle A--Personnel Management

Sec. 501. Officers excluded from consideration by promotion board.
Sec. 502. Increase in the maximum number of officers allowed to be 
                            frocked to the grade of O-6.
Sec. 503. Availability of Navy chaplains on retired list or of 
                            retirement age to serve as Chief or Deputy 
                            Chief of Chaplains of the Navy.
Sec. 504. Period of recall service of certain retirees.
           Subtitle B--Matters Relating to Reserve Components

Sec. 511. Termination of Ready Reserve Mobilization Income Insurance 
                            Program.
Sec. 512. Discharge or retirement of reserve officers in an inactive 
                            status.
Sec. 513. Retention of military technicians in grade of Brigadier 
                            General after mandatory separation date.
Sec. 514. Federal status of service by National Guard members as honor 
                            guards at funerals of veterans.
              Subtitle C--Education and Training Programs

Sec. 521. Service academies foreign exchange study program.
Sec. 522. Programs of higher education of the Community College of the 
                            Air Force.
Sec. 523. Preservation of entitlement to educational assistance of 
                            members of the Selected Reserve serving on 
                            active duty in support of a contingency 
                            operation.
Sec. 524. Repeal of certain staffing and safety requirements for the 
                            Army Ranger Training Brigade.
                   Subtitle D--Decorations and Awards

Sec. 531. Clarification of eligibility of members of Ready Reserve for 
                            award of service Medal for Heroism.
Sec. 532. Waiver of time limitations for award of certain decorations 
                            to specified persons.
Sec. 533. One-year extension of period for receipt of recommendations 
                            for decorations and awards for certain 
                            military intelligence personnel.
Sec. 534. Eligibility of certain World War II military organizations 
                            for award of unit decorations.
              Subtitle E--Military Personnel Voting Rights

Sec. 541. Short title.
Sec. 542. Guarantee of residency.
Sec. 543. State responsibility to guarantee military voting rights.
                       Subtitle F--Other Matters

Sec. 551. Sense of Congress regarding study of matters relating to 
                            gender equity in the Armed Forces.
Sec. 552. Commission on Gender Integration in the Military.
Sec. 553. Sexual harassment investigations and reports.
Sec. 554. Requirement for exemplary conduct by commanding officers and 
                            other authorities.
Sec. 555. Participation of Department of Defense personnel in 
                            management of non-federal entities.
Sec. 556. Technical correction to cross reference in ROPMA provision 
                            relating to position vacancy promotion.
          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                            Subtitle A--Pay

Sec. 601. Military pay raise for fiscal year 1998.
         Subtitle B--Subsistence, Housing, and Other Allowances

           Part I--Reform of Basic Allowance for Subsistence

Sec. 611. Revised entitlement and rates.
Sec. 612. Transitional basic allowance for subsistence.
Sec. 613. Effective date and termination of transitional authority.
           Part II--Reform of Housing and Related Allowances

Sec. 616. Entitlement to basic allowance for housing.
Sec. 617. Rates of basic allowance for housing.
Sec. 618. Dislocation allowance.
Sec. 619. Family separation and station allowances.
Sec. 620. Other conforming amendments.
Sec. 621. Clerical amendment.
Sec. 622. Effective date.
           Part III--Other Amendments Relating to Allowances

Sec. 626. Revision of authority to adjust compensation necessitated by 
                            reform of subsistence and housing 
                            allowances.
Sec. 627. Deadline for payment of Ready Reserve muster duty allowance.
           Subtitle C--Bonuses and Special and Incentive Pays

Sec. 631. One-year extension of certain bonuses and special pay 
                            authorities for reserve forces.
Sec. 632. One-year extension of certain bonuses and special pay 
                            authorities for nurse officer candidates, 
                            registered nurses, and nurse anesthetists. 
Sec. 633. One-year extension of authorities relating to payment of 
                            other bonuses and special pays.
Sec. 634. Increased amounts for aviation career incentive pay.
Sec. 635. Aviation continuation pay.
Sec. 636. Eligibility of dental officers for the multiyear retention 
                            bonus provided for medical officers.
Sec. 637. Increased special pay for dental officers.
Sec. 638. Modification of Selected Reserve reenlistment bonus 
                            authority.
Sec. 639. Modification of authority to pay bonuses for enlistments by 
                            prior service personnel in critical skills 
                            in the Selected Reserve.
Sec. 640. Increased special pay and bonuses for nuclear qualified 
                            officers.
Sec. 641. Authority to pay bonuses in lieu of special pay for enlisted 
                            members extending duty at designated 
                            locations overseas.
    Subtitle D--Retired Pay, Survivor Benefits, and Related Matters

Sec. 651. One-year opportunity to discontinue participation in Survivor 
                            Benefit Plan.
Sec. 652. Time for changing survivor benefit coverage from former 
                            spouse to spouse.
Sec. 653. Paid-up coverage under Survivor Benefit Plan.
Sec. 654. Annuities for certain military surviving spouses.
                       Subtitle E--Other Matters

Sec. 661. Eligibility of Reserves for benefits for illness, injury, or 
                            death incurred or aggravated in line of 
                            duty.
Sec. 662. Travel and transportation allowances for dependents before 
                            approval of a member's court-martial 
                            sentence.
Sec. 663. Eligibility of members of the uniformed services for 
                            reimbursement of adoption expenses.
                   TITLE VII--HEALTH CARE PROVISIONS

Sec. 701. Waiver of deductibles, copayments, and annual fees for 
                            members assigned to certain duty locations 
                            far from sources of care.
Sec. 702. Payment for emergency health care overseas for military and 
                            civilian personnel of the On-Site 
                            Inspection Agency.
Sec. 703. Disclosures of cautionary information on prescription 
                            medications.
Sec. 704. Health care services for certain Reserves who served in 
                            Southwest Asia during the Persian Gulf War.
Sec. 705. Collection of dental insurance premiums.
Sec. 706. Dental insurance plan coverage for retirees of uniformed 
                            service in the Public Health Service and 
                            NOAA.
Sec. 707. Prosthetic devices for dependents.
  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
                                MATTERS

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

Sec. 801. Streamlined approval requirements for contracts under 
                            international agreements.
Sec. 802. Restriction on undefinitized contract actions.
Sec. 803. Expansion of authority to cross fiscal years to all severable 
                            service contracts not exceeding a year.
Sec. 804. Limitation on allowability of compensation for certain 
                            contractor personnel.
Sec. 805. Increased price limitation on purchases of right-hand drive 
                            vehicles.
Sec. 806. Conversion of defense capability preservation authority to 
                            Navy shipbuilding capability preservation 
                            authority.
Sec. 807. Elimination of certification requirement for grants.
Sec. 808. Repeal of limitation on adjustment of shipbuilding contracts.
                    Subtitle B--Contract Provisions

Sec. 811. Contractor guarantees of major systems.
Sec. 812. Vesting of title in the United States under contracts paid 
                            under progress payment arrangements or 
                            similar arrangements.
              Subtitle C--Acquisition Assistance Programs

Sec. 821. Procurement technical assistance programs.
Sec. 822. One-year extension of Pilot Mentor-Protege Program.
Sec. 823. Test program for negotiation of comprehensive subcontracting 
                            plans.
Sec. 824. Price preference for small and disadvantaged businesses.
                 Subtitle D--Administrative Provisions

Sec. 831. Retention of expired funds during the pendency of contract 
                            litigation.
Sec. 832. Protection of certain information from disclosure.
Sec. 833. Content of limited selected acquisition reports.
Sec. 834. Unit cost reports.
Sec. 835. Central Department of Defense point of contact for 
                            contracting information.
                       Subtitle E--Other Matters

Sec. 841. Defense business combinations.
Sec. 842. Lease of nonexcess property of Defense Agencies.
Sec. 843. Promotion rate for officers in an Acquisition Corps.
      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

Sec. 901. Principal duty of Assistant Secretary of Defense for Special 
                            Operations and Low Intensity Conflict.
Sec. 902. Professional military education schools.
Sec. 903. Use of CINC Initiative Fund for force protection.
Sec. 904. Transfer of TIARA programs.
                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Authority for obligation of certain unauthorized fiscal year 
                            1997 defense appropriations.
Sec. 1003. Authorization of prior emergency supplemental appropriations 
                            for fiscal year 1997.
Sec. 1004. Increased transfer authority for fiscal year 1996 
                            authorizations.
Sec. 1005. Biennial financial management strategic plan.
Sec. 1006. Revision of authority for Fisher House Trust Funds.
Sec. 1007. Availability of certain fiscal year 1991 funds for payment 
                            of contract claim.
Sec. 1008. Estimates and requests for procurement and military 
                            construction for the reserve components.
                Subtitle B--Naval Vessels and Shipyards

Sec. 1011. Long-term charter of vessel for surveillance towed array 
                            sensor program.
Sec. 1012. Procedures for sale of vessels stricken from the Naval 
                            Vessel Register.
Sec. 1013. Transfers of naval vessels to certain foreign countries.
                  Subtitle C--Counter-Drug Activities

Sec. 1021. Authority to provide additional support for counter-drug 
                            activities of Mexico.
Sec. 1022. Authority to provide additional support for counter-drug 
                            activities of Peru and Colombia.
                    Subtitle D--Reports and Studies

Sec. 1031. Repeal of reporting requirements.
Sec. 1032. Common measurement of operations and personnel tempo.
Sec. 1033. Report on overseas deployment.
Sec. 1034. Report on military readiness requirements of the Armed 
                            Forces.
Sec. 1035. Assessment of cyclical readiness posture of the Armed 
                            Forces.
Sec. 1036. Overseas infrastructure requirements.
Sec. 1037. Report on aircraft inventory.
Sec. 1038. Disposal of excess materials.
Sec. 1039. Review of former spouse protections.
Sec. 1040. Completion of GAO reports for Congress.
                       Subtitle E--Other Matters

Sec. 1051. Psychotherapist-patient privilege in the Military Rules of 
                            Evidence.
Sec. 1052. National Guard Civilian Youth Opportunities Pilot Program.
Sec. 1053. Protection of Armed Forces personnel during peace 
                            operations.
Sec. 1054. Limitation on retirement or dismantlement of strategic 
                            nuclear delivery systems.
Sec. 1055. Acceptance and use of landing fees for use of overseas 
                            military airfields by civil aircraft.
Sec. 1056. One-year extension of international nonproliferation 
                            initiative.
Sec. 1057. Arms control implementation and assistance for facilities 
                            subject to inspection under the Chemical 
                            Weapons Convention.
Sec. 1058. Sense of Senate regarding the relationship between 
                            environmental laws and United States' 
                            obligations under the Chemical Weapons 
                            Convention.
Sec. 1059. Sense of Congress regarding funding for reserve component 
                            modernization not requested in the annual 
                            budget request.
Sec. 1060. Authority of Secretary of Defense to settle claims relating 
                            to pay, allowances, and other benefits
Sec. 1061. Coordination of access of commanders and deployed units to 
                            intelligence collected and analyzed by the 
                            intelligence community.
Sec. 1062. Protection of imagery, imagery intelligence, and geospatial 
                            information and data.
Sec. 1063. Protection of air safety information voluntarily provided by 
                            a charter air carrier.
Sec. 1064. Sustainment and operation of Global Positioning System.
Sec. 1065. Law enforcement authority for special agents of the Defense 
                            Criminal Investigative Service.
Sec. 1066. Repeal of requirement for continued operation of the Naval 
                            Academy dairy farm.
Sec. 1067. POW/MIA intelligence analysis cell.
Sec. 1068. Protection of employees from retaliation for certain 
                            disclosures of classified information.
Sec. 1069. Applicability of certain pay authorities to members of the 
                            Commission on Servicemembers and Veterans 
                            Transition Assistance.
Sec. 1070. Transfer of B-17 aircraft to museum.
Sec. 1071. Five-year extension of aviation insurance program.
Sec. 1072. Treatment of military flight operations.
Sec. 1073. Naturalization of foreign nationals who served honorably in 
                            the Armed Forces of the United States.
Sec. 1074. Designation of Bob Hope as honorary veteran.
           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

Sec. 1101. Use of prohibited constraints to manage Department of 
                            Defense personnel.
Sec. 1102. Employment of civilian faculty at the Marine Corps 
                            University.
Sec. 1103. Extension and revision of voluntary separation incentive pay 
                            authority.
Sec. 1104. Repeal of deadline for placement consideration of 
                            involuntarily separated military reserve 
                            technicians.
Sec. 1105. Rate of pay of Department of Defense overseas teacher upon 
                            transfer to General Schedule position.
Sec. 1106. Naturalization of employees of the George C. Marshall 
                            European Center for Security Studies.
            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.
                            TITLE XXI--ARMY

Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.
Sec. 2105. Authority to use certain prior year funds to construct a 
                            heliport at Fort Irwin, California.
                            TITLE XXII--NAVY

Sec. 2201. Authorized Navy construction and land acquisition projects.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, Navy.
Sec. 2205. Authorization of military construction project at Pascagoula 
                            Naval Station, Mississippi, for which funds 
                            have been appropriated.
                         TITLE XXIII--AIR FORCE

Sec. 2301. Authorized Air Force construction and land acquisition 
                            projects.
Sec. 2302. Family housing.
Sec. 2303. Improvements to military family housing units.
Sec. 2304. Authorization of appropriations, Air Force.
Sec. 2305. Authorization of military construction project at McConnell 
                            Air Force Base, Kansas, for which funds 
                            have been appropriated.
                      TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land 
                            acquisition projects.
Sec. 2402. Military housing planning and design.
Sec. 2403. Improvements to military family housing units.
Sec. 2404. Energy conservation projects.
Sec. 2405. Authorization of appropriations, Defense Agencies.
Sec. 2406. Clarification of authority relating to fiscal year 1997 
                            project at Naval Station, Pearl Harbor, 
                            Hawaii.
Sec. 2407. Authority to use prior year funds to carry out certain 
                            Defense Agency military construction 
                            projects.
Sec. 2408. Modification of authority to carry out fiscal year 1995 
                            projects.
Sec. 2409. Availability of funds for fiscal year 1995 project relating 
                            to relocatable over-the-horizon radar, 
                            Naval Station Roosevelt Roads, Puerto Rico.
   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                PROGRAM

Sec. 2501. Authorized NATO construction and land acquisition projects.
Sec. 2502. Authorization of appropriations, NATO.
            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

Sec. 2601. Authorized Guard and Reserve construction and land 
                            acquisition projects.
Sec. 2602. Authorization of Army National Guard construction project, 
                            aviation support facility, Hilo, Hawaii, 
                            for which funds have been appropriated.
        TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

Sec. 2701. Expiration of authorizations and amounts required to be 
                            specified by law.
Sec. 2702. Extension of authorizations of certain fiscal year 1995 
                            projects.
Sec. 2703. Extension of authorizations of certain fiscal year 1994 
                            projects.
Sec. 2704. Extension of authorization of fiscal year 1993 project.
Sec. 2705. Extension of authorizations of certain fiscal year 1992 
                            projects.
Sec. 2706. Effective date.
                    TITLE XXVIII--GENERAL PROVISIONS

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

Sec. 2801. Increase in ceiling for minor land acquisition projects.
Sec. 2802. Sale of utility systems of the military departments.
Sec. 2803. Administrative expenses for certain real property 
                            transactions.
Sec. 2804. Use of financial incentives for energy savings and water 
                            cost savings.
                      Subtitle B--Land Conveyances

Sec. 2811. Modification of authority for disposal of certain real 
                            property, Fort Belvoir, Virginia.
Sec. 2812. Correction of land conveyance authority, Army Reserve 
                            Center, Anderson, South Carolina.
Sec. 2813. Land conveyance, Hawthorne Army Ammunition Depot, Mineral 
                            County, Nevada.
Sec. 2814. Long-term lease of property, Naples, Italy.
Sec. 2815. Land conveyance, Topsham Annex, Naval Air Station, 
                            Brunswick, Maine.
Sec. 2816. Land conveyance, Naval Weapons Industrial Reserve Plant No. 
                            464, Oyster Bay, New York.
Sec. 2817. Land conveyance, Charleston Family Housing Complex, Bangor, 
                            Maine.
Sec. 2818. Land conveyance, Ellsworth Air Force Base, South Dakota.
                       Subtitle C--Other Matters

Sec. 2831. Disposition of proceeds of sale of Air Force Plant No. 78, 
                            Brigham City, Utah.
 DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND 
                          OTHER AUTHORIZATIONS

      TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

         Subtitle A--National Security Programs Authorizations

Sec. 3101. Weapons activities.
Sec. 3102. Environmental restoration and waste management.
Sec. 3103. Other defense activities.
Sec. 3104. Defense environmental management privatization.
Sec. 3105. Defense nuclear waste disposal.
                Subtitle B--Recurring General Provisions

Sec. 3121. Reprogramming.
Sec. 3122. Limits on general plant projects.
Sec. 3123. Limits on construction projects.
Sec. 3124. Fund transfer authority.
Sec. 3125. Authority for conceptual and construction design.
Sec. 3126. Authority for emergency planning, design, and construction 
                            activities.
Sec. 3127. Funds available for all national security programs of the 
                            Department of Energy.
Sec. 3128. Availability of funds.
   Subtitle C--Program Authorizations, Restrictions, and Limitations

Sec. 3131. Defense environmental management privatization projects.
Sec. 3132. International cooperative stockpile stewardship programs.
Sec. 3133. Modernization of enduring nuclear weapons complex.
Sec. 3134. Tritium production.
Sec. 3135. Processing, treatment, and disposition of spent nuclear fuel 
                            rods and other legacy nuclear materials at 
                            the Savannah River Site.
Sec. 3136. Limitations on use of funds for laboratory directed research 
                            and development purposes.
Sec. 3137. Permanent authority for transfers of defense environmental 
                            management funds.
Sec. 3138. Prohibition on recovery of certain additional costs for 
                            environmental response actions associated 
                            with the Formerly Utilized Site Remedial 
                            Action Project program.
                       Subtitle D--Other Matters

Sec. 3151. Administration of certain Department of Energy activities.
Sec. 3152. Modification and extension of authority relating to 
                            appointment of certain scientific, 
                            engineering, and technical personnel.
Sec. 3153. Annual report on plan and program for stewardship, 
                            management, and certification of warheads 
                            in the nuclear weapons stockpile.
Sec. 3154. Submittal of biennial waste management reports.
Sec. 3155. Repeal of obsolete reporting requirements.
Sec. 3156. Commission on safeguarding and security of nuclear weapons 
                            and materials at Department of Energy 
                            facilities.
Sec. 3157. Modification of authority on commission on maintaining 
                            United States nuclear weapons expertise.
Sec. 3158. Land transfer, Bandelier National Monument.
          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.
                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

Sec. 3301. Definitions.
Sec. 3302. Authorized uses of stockpile funds.
Sec. 3303. Authority to dispose of certain materials in National 
                            Defense Stockpile.
Sec. 3304. Return of surplus platinum from the Department of the 
                            Treasury.
                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.
Sec. 3402. Leasing of certain oil shale reserves.
Sec. 3403. Repeal of requirement to assign Navy officers to Office of 
                            Naval Petroleum and Oil Shale Reserves.
                  TITLE XXXV--PANAMA CANAL COMMISSION

     Subtitle A--Authorization of Expenditures From Revolving Fund

Sec. 3501. Short title.
Sec. 3502. Authorization of expenditures.
Sec. 3503. Purchase of vehicles.
Sec. 3504. Expenditures only in accordance with treaties.
          Subtitle B--Facilitation of Panama Canal Transition

Sec. 3511. Short title; references.
Sec. 3512. Definitions relating to Canal transition.
    Part I--Transition Matters Relating to Commission Officers and 
                               Employees

Sec. 3521. Authority for the Administrator of the Commission to accept 
                            appointment as the Administrator of the 
                            Panama Canal Authority.
Sec. 3522. Post-Canal transfer personnel authorities.
Sec. 3523. Enhanced authority of Commission to establish compensation 
                            of Commission officers and employees.
Sec. 3524. Travel, transportation, and subsistence expenses for 
                            Commission personnel no longer subject to 
                            Federal Travel Regulation.
Sec. 3525. Enhanced recruitment and retention authorities.
Sec. 3526. Transition separation incentive payments.
Sec. 3527. Labor-management relations.
Sec. 3528. Availability of Panama Canal Revolving Fund for severance 
                            pay for certain employees separated by 
                            Panama Canal Authority after Canal Transfer 
                            Date.
Part II--Transition Matters Relating to Operation and Administration of 
                                 Canal

Sec. 3541. Establishment of procurement system and board of contract 
                            appeals.
Sec. 3542. Transactions with the Panama Canal Authority.
Sec. 3543. Time limitations on filing of claims for damages.
Sec. 3544. Tolls for small vessels.
Sec. 3545. Date of actuarial evaluation of FECA liability.
Sec. 3546. Notaries public.
Sec. 3547. Commercial services.
Sec. 3548. Transfer from President to Commission of certain regulatory 
                            functions relating to employment 
                            classification appeals.
Sec. 3549. Enhanced printing authority.
Sec. 3550. Technical and conforming amendments.

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

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

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

    Funds are hereby authorized to be appropriated for fiscal year 1998 
for procurement for the Army as follows:
            (1) For aircraft, $1,394,459,000.
            (2) For missiles, $1,223,851,000.
            (3) For weapons and tracked combat vehicles, 
        $1,179,107,000.
            (4) For ammunition, $1,043,202,000.
            (5) For other procurement, $2,918,730,000.

SEC. 102. NAVY AND MARINE CORPS.

    (a) Navy.--Funds are hereby authorized to be appropriated for 
fiscal year 1998 for procurement for the Navy as follows:
            (1) For aircraft, $6,482,265,000.
            (2) For weapons, including missiles and torpedoes, 
        $1,200,393,000.
            (3) For shipbuilding and conversion, $8,593,358,000.
            (4) For ammunition for the Navy and Marine Corps, 
        $369,797,000.
            (5) For other procurement, $3,177,700,000.
    (b) Marine Corps.--Funds are hereby authorized to be appropriated 
for fiscal year 1998 for procurement for the Marine Corps in the amount 
of $554,806,000.

SEC. 103. AIR FORCE.

    Funds are hereby authorized to be appropriated for fiscal year 1998 
for procurement for the Air Force as follows:
            (1) For aircraft, $6,048,915,000.
            (2) For missiles, $2,411,241,000.
            (3) For ammunition, $420,784,000.
            (4) For other procurement, $6,798,453,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

    Funds are hereby authorized to be appropriated for fiscal year 1998 
for Defense-wide procurement in the amount of $1,749,285,000.

SEC. 105. RESERVE COMPONENTS.

    Funds are hereby authorized to be appropriated for fiscal year 1998 
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, $100,000,000.
            (2) For the Air National Guard, $186,300,000.
            (3) For the Army Reserve, $40,000,000.
            (4) For the Naval Reserve, $40,000,000.
            (5) For the Air Force Reserve, $246,700,000.
            (6) For the Marine Corps Reserve, $40,000,000.

SEC. 106. DEFENSE INSPECTOR GENERAL.

    Funds are hereby authorized to be appropriated for fiscal year 1998 
for procurement for the Inspector General of the Department of Defense 
in the amount of $1,800,000.

SEC. 107. CHEMICAL DEMILITARIZATION PROGRAM.

    There is are hereby authorized to be appropriated for fiscal year 
1998 the amount of $614,700,000 for--
            (1) the destruction of lethal chemical agents and munitions 
        in accordance with section 1412 of the Department of Defense 
        Authorization Act, 1986 (50 U.S.C. 1521); and
            (2) the destruction of chemical warfare materiel of the 
        United States that is not covered by section 1412 of such Act.

SEC. 108. DEFENSE HEALTH PROGRAMS.

    Funds are hereby authorized to be appropriated for fiscal year 1998 
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 $274,068,000.

SEC. 109. DEFENSE EXPORT LOAN GUARANTEE PROGRAM.

    Funds are hereby authorized to be appropriated for fiscal year 1998 
for the Department of Defense for carrying out the Defense Export Loan 
Guarantee Program established under section 2540 of title 10, United 
States Code, in the total amount of $1,231,000.

                       Subtitle B--Army Programs

SEC. 111. ARMY HELICOPTER MODERNIZATION PLAN.

    (a) Limitation.--Not more than 25 percent of the amounts authorized 
to be appropriated pursuant to section 101(1), 105(1), or 105(3) for 
modifications or upgrades of helicopters may be obligated before the 
date that is 30 days after the Secretary of the Army submits to the 
congressional defense committees a comprehensive plan for the 
modernization of the Army's helicopter fleet.
    (b) Content of Plan.--The plan required by subsection (a) shall, at 
a minimum, contain the following:
            (1) A detailed assessment of the Army's present and future 
        helicopter requirements and present and future helicopter 
        inventory, including number of aircraft, age of aircraft, 
        availability of spare parts, flight hour costs, roles and 
        functions assigned to the fleet as a whole and to its 
        individual types of aircraft, and the mix of active component 
        aircraft and reserve component aircraft in the fleet.
            (2) Estimates and analysis of requirements and funding 
        proposed for procurement of new aircraft.
            (3) An analysis of the requirements for and funding 
        proposed for extended service plans or service life extension 
        plans for fleet aircraft.
            (4) A plan for retiring aircraft no longer required or 
        capable of performing assigned functions, including a 
        discussion of opportunities to eliminate older aircraft models 
        and to focus future funding on current or future generation 
        aircraft.
            (5) The implications of the plan for the defense industrial 
        base.
    (c) Funding in Future-Years Defense Program.--The Secretary of the 
Army shall include in the plan required by subsection (a) a 
certification that the plan is to be funded in the future-years defense 
program submitted to Congress in 1998 pursuant to section 221(a) of 
title 10, United States Code.

SEC. 112. MULTIYEAR PROCUREMENT AUTHORITY FOR AH-64D LONGBOW APACHE 
              FIRE CONTROL RADAR.

    Beginning with the fiscal year 1998 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 AH-64D Longbow Apache fire control radar.

                       Subtitle C--Navy Programs

SEC. 121. NEW ATTACK SUBMARINE PROGRAM.

    (a) Amounts Authorized From SCN Account.--Of the amounts authorized 
to be appropriated by section 102(a)(3) for fiscal year 1998, 
$2,599,800,000 is available for the New Attack Submarine Program.
    (b) Contract Authority.--(1) The Secretary of the Navy may enter 
into a contract for the procurement of four submarines under the New 
Attack Submarine program.
    (2) Any contract entered into under paragraph (1)--
            (A) shall, notwithstanding section 2304(k) of title 10, 
        United States Code, be awarded to one of the two eligible 
        shipbuilders as the prime contractor on the condition that the 
        prime contractor enter into one or more subcontracts (under 
        such prime contract) with the other of the two eligible 
        shipbuilders as contemplated in the New Attack Submarine Team 
        Agreement; and
            (B) shall provide for--
                    (i) construction of the first submarine in fiscal 
                year 1998; and
                    (ii) advance construction and advance procurement 
                of materiel for the second, third, and fourth 
                submarines in fiscal year 1998.
    (3) The following shipbuilders are eligible for a contract under 
this subsection:
            (A) The Electric Boat Corporation.
            (B) The Newport News Shipbuilding and Drydock Company.
    (4) In paragraph (2)(A), the term ``New Attack Submarine Team 
Agreement'' means the agreement known as the Team Agreement between 
Electric Boat Corporation and Newport News Shipbuilding and Drydock 
Company, dated February 25, 1997, that was submitted to Congress by the 
Secretary of the Navy on March 31, 1997.
    (c) Limitation of Liability.--If a contract entered into under this 
section is terminated, the United States shall not be liable for 
termination costs in excess of the total amount appropriated for the 
New Attack Submarine program.
    (d) Repeals of Superseded Provisions of Previous Defense 
Authorization Laws.--(1) Section 131 of the National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 
206) is amended--
            (A) in subsection (a)(1)(B)--
                    (i) in clause (i), by striking out ``, which shall 
                be built by Electric Boat Division''; and
                    (ii) in clause (ii), by striking out ``, which 
                shall be built by Newport News Shipbuilding''; and
            (B) in subsection (b), by striking out paragraph (1).
    (2) Section 121 of the National Defense Authorization Act for 
Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2441) is amended--
            (A) in subsection (a)--
                    (i) in paragraph (1)(B), by striking out ``to be 
                built by Electric Boat Division''; and
                    (ii) in paragraph (1)(C), by striking out ``to be 
                built by Newport News Shipbuilding'';
            (B) in subsection (d), by striking out paragraph (2);
            (C) in subsection (e), by striking out paragraph (1); and
            (D) in subsection (g), by striking out ``the committees 
        specified in subsection (e)(1)'' in paragraphs (3) and(4) and 
        inserting in lieu thereof ``the Committee on Armed Services of 
        the Senate and the Committee on National Security of the House 
        of Representatives''.
    (e) Inapplicability of Superseded Aspects of Attack Submarine 
Development Plan.--The Secretary of Defense and the Secretary of the 
Navy are not required to carry out the portions of the program plan 
submitted under subsection (c) of section 131 of the National Defense 
Authorization Act for Fiscal Year 1996 that are included in the plan 
pursuant to subparagraphs (A), (B), and (E) of paragraph (2) of such 
subsection.

SEC. 122. NUCLEAR AIRCRAFT CARRIER PROGRAM.

    (a) Amounts Authorized From SCN Account.--Of the amounts authorized 
to be appropriated by section 102(a)(3) for fiscal year 1998, 
$345,000,000 is available for the procurement and construction of 
nuclear and non-nuclear components for the CVN-77 nuclear aircraft 
carrier program. The Secretary of the Navy is authorized to enter into 
a contract or contracts with the shipbuilder for the procurement and 
construction of such components.
    (b) Amounts Authorized From RDT&E Account.--Of the amounts 
authorized to be appropriated by section 201(2) for fiscal year 1998, 
$35,000,000 is available for research, development, test, and 
evaluation of technologies that have potential for use in the CVN-77 
nuclear aircraft carrier program.

SEC. 123. EXCEPTION TO COST LIMITATION FOR SEAWOLF SUBMARINE PROGRAM.

    In the application of the limitation in section 133(a) of the 
National Defense Authorization Act for Fiscal Year 1996 (Public Law 
104-106; 110 Stat. 211), there shall not be taken into account 
$745,700,000 of the amounts that were obligated or expended for 
procurement of Seawolf class submarines before the date of the 
enactment of this Act (that amount being the total of amounts of funds 
appropriated for fiscal years 1990, 1991, and 1992 for the procurement 
of Seawolf class submarines that have been obligated or expended for 
procurement under the SSN-23, SSN-24, and SSN-25 Seawolf class 
submarine programs, which have been canceled since the limitation took 
effect).

SEC. 124. AIRBORNE SELF-PROTECTION JAMMER PROGRAM.

    (a) Limitation on Resumption of Serial Production.--Serial 
production of the airborne self-protection jammer may not be resumed 
until the Director of Operational Test and Evaluation of the Department 
of Defense has certified in writing to Congress that--
            (1) the capabilities of the airborne self-protection jammer 
        exceed the capabilities of the integrated defensive electronics 
        countermeasure system that is under development for use in F/A-
        18E/F aircraft;
            (2) the units of the airborne self-protection jammer to be 
        produced are to be used in F/A-18E/F aircraft; and
            (3) the deficiencies in the airborne self-protection jammer 
        noted by the Director before the date of the enactment of this 
        Act have been eliminated.
    (b) Limitation on Obligation of Funds.--No funds authorized to be 
appropriated by this or any other Act may be obligated for serial 
production of the airborne self-protection jammer until the Secretary 
of Defense has certified in writing to Congress that funding is 
programmed for serial production of the airborne self-protection jammer 
in the future-years defense program.

                     Subtitle D--Air Force Programs

SEC. 131. B-2 BOMBER AIRCRAFT PROGRAM.

    (a) Prohibition.--None of the funds authorized to be appropriated 
in this or any other Act may be used--
            (1) to procure any additional B-2 bomber aircraft; or
            (2) to maintain any part of the bomber industrial base 
        solely for the purpose of preserving the option to procure 
        additional B-2 bomber aircraft in the future.
    (b) Exceptions.--The prohibition in subsection (a) does not apply 
to--
            (1) any B-2 bomber aircraft that is covered by a contract 
        for the production of that aircraft as of the date of the 
        enactment of this Act; or
            (2) any part of the bomber industrial base that is 
        necessary for producing all B-2 bomber aircraft referred to in 
        paragraph (1), but only for so long as is necessary to complete 
        the production of such aircraft.

                       Subtitle E--Other Matters

SEC. 141. PROHIBITION ON USE OF FUNDS FOR ACQUISITION OR ALTERATION OF 
              PRIVATE DRYDOCKS.

    None of the funds authorized to be appropriated by this or any 
other Act may be used, directly or indirectly, to purchase, lease, 
upgrade, or modify privately-owned drydocks.

SEC. 142. REPLACEMENT OF ENGINES ON AIRCRAFT DERIVED FROM BOEING 707 
              AIRCRAFT.

    (a) Analysis Required.--The Under Secretary of Defense for 
Acquisition and Technology shall submit to the Committee on Armed 
Services of the Senate and the Committee on National Security of the 
House of Representatives an analysis of the requirements of the 
Department of Defense for replacing engines on the aircraft of the 
department that are derived from the Boeing 707 aircraft and the costs 
of meeting the requirements.
    (b) Content.--The analysis shall include the following:
            (1) The number of aircraft described in subsection (a) that 
        are in the inventory of the Department of Defense and the 
        number of such aircraft that are projected to be in the 
        inventory of the department in 5 years, in 10 years, and in 15 
        years.
            (2) For each type of such aircraft, the estimated cost of 
        operating the aircraft for each fiscal year after fiscal year 
        1997 and before fiscal year 2015, taking into account 
        historical patterns of usage and projected support costs.
            (3) For each type of such aircraft, the estimated costs and 
        the benefits of replacing the engines on the aircraft, analyzed 
        on the basis of the experience under the limited program for 
        replacing the engines on RC-135 aircraft that was undertaken 
        during fiscal years 1995, 1996, and 1997.
            (4) The estimated total cost of replacing the engines 
        pursuant to a program that provides for replacement of the 
        engines on all of the aircraft of one type before undertaking 
        the replacement of the engines on the aircraft of another type, 
        with a higher priority being given in turn to each type of 
        aircraft in which the replacement of the engines is expected to 
        yield the anticipated benefits of replacement faster.
            (5) Various plans for replacement of engines that the Under 
        Secretary considers best on the basis of costs and benefits.
    (c) Submission Deadline.--The Under Secretary shall submit the 
report under this section not later than March 1, 1998.

SEC. 143. EXCEPTION TO REQUIREMENT FOR A PARTICULAR DETERMINATION FOR 
              SALES OF MANUFACTURED ARTICLES OR SERVICES OF ARMY 
              INDUSTRIAL FACILITIES OUTSIDE THE UNITED STATES.

    Section 4543 of title 10, United States Code, is amended--
            (1) in subsection (a)(5), by inserting ``, except in the 
        case of a sale described in subsection (b),'' after ``the 
        Secretary of the Army determines'';
            (2) by redesignating subsections (b), (c), and (d) as 
        subsections (c), (d), and (e), respectively; and
            (3) by inserting after subsection (a) the following new 
        subsection (b):
    ``(b) Exception to Requirement for a Particular Determination.--A 
determination described in subsection (a)(5) is not necessary under the 
regulations in the case of--
            ``(1) a sale of articles to be incorporated into a weapon 
        system being procured by the Department of Defense; or
            ``(2) a sale of services to be used in the manufacture of a 
        weapon system being procured by the Department of Defense.''.

         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 1998 
for the use of the Department of Defense for research, development, 
test, and evaluation as follows:
            (1) For the Army, $4,750,462,000.
            (2) For the Navy, $7,812,972,000.
            (3) For the Air Force, $14,302,264,000.
            (4) For Defense-wide activities, $10,072,347,000, of 
        which--
                    (A) $268,183,000 is authorized for the activities 
                of the Director, Test and Evaluation; and
                    (B) $31,384,000 is authorized for the Director of 
                Operational Test and Evaluation.

    Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. JOINT STRIKE FIGHTER PROGRAM.

    (a) Report.--Not later than February 15, 1998, the Secretary of 
Defense shall submit to the congressional defense committees a report 
on the options for the sequence in which the variants of the joint 
strike fighter are to be produced and fielded.
    (b) Content of Report.--The report shall contain the following:
            (1) A review of the plan for production under the Joint 
        Strike Fighter program that was used by the Department of 
        Defense for developing the funding estimates for the fiscal 
        year 1999 budget request for the Department of Defense.
            (2) An estimate of the costs, and an analysis of the costs 
        and benefits, of producing the joint strike fighter variants in 
        a sequence that provides for fielding of the naval variant of 
        the aircraft first.
            (3) A comparison of the costs and benefits of the various 
        options for the sequence for fielding the variants of the joint 
        strike fighter that the Secretary of Defense considers likely 
        to be the options from among which a sequence for fielding is 
        selected, including a discussion of the effects that selection 
        of each such option would have on the costs and rates of 
        production of the units of F/A-18E/F and F-22 aircraft that are 
        in production when the Joint Strike Fighter Program proceeds 
        into production.
    (c) Limitation on Use of Funds Pending Submission of Report.--Not 
more than 90 percent of the total amount authorized to be appropriated 
under this Act for the Joint Strike Fighter Program may be obligated 
until the date that is 30 days after the date on which the 
congressional defense committees receive the report required under this 
section.
    (d) Fiscal Year 1998 Budget Defined.--In this section, the term 
``fiscal year 1999 budget request for the Department of Defense'' means 
the budget estimates for the Department of Defense for fiscal year 1999 
that were submitted to Congress by the Secretary of Defense in 
connection with the submission of the budget for fiscal year 1998 to 
Congress under section 1105 of title 31, United States Code.

SEC. 212. F-22 AIRCRAFT PROGRAM.

    (a) Limitation on Total Cost of Engineering and Manufacturing 
Development.--The total amount obligated or expended for engineering 
and manufacturing development under the F-22 aircraft program may not 
exceed $18,688,000,000.
    (b) Limitation on Obligation of Funds.--Of the total amount 
authorized to be appropriated for the F-22 aircraft program for a 
fiscal year, not more than 90 percent of the amount may be obligated 
until the Comptroller General submits to Congress--
            (1) the report required to be submitted in that fiscal year 
        under subsection (c); and
            (2) a certification that the Comptroller General has had 
        access to sufficient information to make informed judgments on 
        the matters covered by the report.
    (c) Annual GAO Review.--(1) Not later than December 1 of each year, 
the Comptroller General shall review the F-22 aircraft program and 
submit to Congress a report on the results of the review. The 
Comptroller General shall also submit to Congress for 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.
    (2) The report submitted on the program each year shall include the 
following:
            (A) The extent to which engineering and manufacturing 
        development under the program is meeting the goals established 
for engineering and manufacturing development under the program.
            (B) The status of costs, testing, and modifications.
            (C) The plan for engineering and manufacturing development 
        (leading to production) under the program for the fiscal year 
        that begins in the following year.
            (D) A conclusion regarding whether the plan referred to in 
        subparagraph (C) can be successfully carried out consistent 
        with the limitation in subsection (a).
            (E) A conclusion regarding whether engineering and 
        manufacturing development (leading to production) under the 
        program is likely to be completed at a total cost not in excess 
        of the amount specified in subsection (a).
    (3) The Comptroller General shall submit the first report under 
this subsection not later than December 1, 1997. No report is required 
under this subsection after engineering and manufacturing development 
under the program has been completed.
    (d) Requirement To Support Annual GAO Review.--The Secretary of the 
Air Force and the prime contractor under the F-22 aircraft program 
shall provide the Comptroller General with such information on the 
program as the Comptroller considers necessary to carry out the 
responsibilities under subsection (c).

SEC. 213. HIGH ALTITUDE ENDURANCE UNMANNED VEHICLE PROGRAM.

    (a) Limitation on Total Cost of Advanced Concept Technology 
Demonstration.--(1) The total amount obligated or expended for advanced 
concept technology demonstration under the High Altitude Endurance 
Unmanned Vehicle Program through fiscal year 2003 may not exceed 
$476,826,000.
    (2) The total amount obligated or expended in fiscal year 1999, 
2000, 2001, or 2002 for advanced concept technology demonstration under 
the High Altitude Endurance Unmanned Vehicle Program may not exceed the 
amount specified for that fiscal year, as follows:
            (A) In fiscal year 1999, not more than $167,864,000.
            (B) In fiscal year 2000, not more than $31,374,000.
            (C) In fiscal year 2001, not more than $19,106,000.
            (D) In fiscal year 2002, not more than $20,866,000.
    (b) Limitation on Acquisition.--No high altitude endurance unmanned 
vehicle may be acquired after the date of the enactment of this Act 
until 50 percent of the testing programmed in the test and evaluation 
master plan (as of such date) for the high altitude endurance unmanned 
vehicle has been completed.
    (c) Limitation on Proceeding.--The High Altitude Endurance Unmanned 
Vehicle Program may not proceed beyond advanced concept technology 
demonstration until the Comptroller General has certified to Congress 
that the high altitude endurance unmanned vehicles can be produced 
under the program at an average unit cost that does not exceed 
$10,000,000 (the so-called fly away price) in fiscal year 1994 constant 
dollars.
    (d) GAO Review.--(1) The Comptroller General shall review the High 
Altitude Endurance Unmanned Vehicle Program for purposes of making the 
certification under subsection (c).
    (2) The Secretary of Defense and the prime contractors under the 
High Altitude Endurance Unmanned Vehicle Program shall provide the 
Comptroller General with such information on the program as the 
Comptroller considers necessary to make the determinations required for 
the certification under subsection (c).

SEC. 214. ADVANCED ANTI-RADIATION GUIDED MISSILE PROGRAM.

    To the extent provided in appropriations Acts, the Secretary of the 
Navy may use not more than $25,000,000 of the amount appropriated for 
the Navy for fiscal year 1997 for research, development, test, 
evaluation for the Advanced Anti-Radiation Guided Missile Program in 
order to fund fiscal year 1998 research, development, test, and 
evaluation programs of the Navy that have a higher priority than such 
program.

SEC. 215. FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTERS.

    (a) Limitation on Staff Years Funded.--Not more than 6,006 staff 
years of technical effort (staff years) may be funded for federally 
funded research and development centers out of the funds authorized to 
be appropriated for the Department of Defense for fiscal year 1998.
    (b) Allocations Among Centers.--(1) Not later than 60 days after 
the date of the enactment of this Act, the Secretary of Defense shall 
submit to the congressional defense committees a report that specifies 
the number of staff years of technical effort that is to be allocated 
(for funding as described in subsection (a)) to each defense federally 
funded research and development center for fiscal year 1998.
    (2) After the submission of the report on allocation of staff years 
of technical effort under paragraph (1), the Secretary of Defense may 
not reallocate more than 5 percent of the staff years of technical 
effort allocated to a federally funded research and development center 
for fiscal year 1998 from that center to other federally funded 
research and development centers until 30 days after the date on which 
the Secretary has submitted a justification for the reallocation to the 
congressional defense committees.
    (c) Fiscal Year 1999 Allocation.--(1) The Secretary of Defense 
shall submit to the congressional defense committees a report that 
specifies the number of staff years of technical effort that is to be 
allocated to each federally funded research and development center for 
fiscal year 1999 for funding out of the funds authorized to be 
appropriated for the Department of Defense for that fiscal year.
    (2) The report shall be submitted at the same time that the 
President submits the budget for fiscal year 1999 to Congress under 
section 1105 of title 31, United States Code.
    (c) Staff Year Defined.--In this section, the term ``staff year of 
technical effort'' means 1,810 hours of paid effort by direct and 
consultant labor performing professional-level technical work primarily 
in the fields of studies and analysis, system engineering and 
integration, systems planning, program and policy planning and 
analyses, and basic and applied research.

SEC. 216. GOAL FOR DUAL-USE SCIENCE AND TECHNOLOGY PROJECTS.

    (a) Goals.--(1) Subject to paragraph (3), it shall be the objective 
of the Secretary of each military department to obligate for dual-use 
projects in each fiscal year referred to in paragraph (2), out of the 
total amount authorized to be appropriated for such fiscal year for new 
projects initiated under the applied research programs of the military 
department, the percent of such amount that is specified for that 
fiscal year in paragraph (2).
    (2) The objectives for fiscal years under paragraph (1) are as 
follows:
            (A) For fiscal year 1998, 5 percent.
            (B) For fiscal year 1999, 7 percent.
            (C) For fiscal year 2000, 10 percent.
    (3) The Secretary of Defense may establish for a military 
department for a fiscal year an objective different from the objective 
set forth in paragraph (2) if the Secretary--
            (A) determines that compelling national security 
        considerations require the establishment of the different 
        objective; and
            (2) notifies Congress of the determination and the reasons 
        for the determination.
    (b) Designation of Official for Dual-Use Programs.--(1) The 
Secretary of Defense shall designate a senior official in the Office of 
the Secretary of Defense to carry out responsibilities for dual-use 
programs under this subsection. The designated official shall report 
directly to the Under Secretary of Defense for Acquisition and 
Technology.
    (2) The primary responsibilities of the designated official shall 
include developing policy and overseeing the establishment of, and 
adherence to, procedures for ensuring that dual-use programs are 
initiated and administered effectively and that applicable commercial 
technologies are integrated into current and future military systems.
    (3) In carrying out the responsibilities, the designated official 
shall ensure that--
            (A) dual-use projects are consistent with the joint 
        warfighting science and technology plan referred to in section 
        270 of the National Defense Authorization Act for Fiscal Year 
        1997 (Public Law 104-201; 10 U.S.C. 2501 note); and
            (B) the dual-use projects of the military departments and 
        defense agencies of the Department of Defense are coordinated 
        and avoid unnecessary duplication.
    (c) Financial Commitment of Non-Federal Government Participants.--
The total amount of funds provided by a military department for a dual-
use project entered into by the Secretary of that department shall not 
exceed 50 percent of the total cost of the project. The Secretary may 
consider in-kind contributions by non-Federal participants for dual-use 
projects for the purpose of calculating the share of project costs that 
has been or is being undertaken by such participants only to the extent 
provided in regulations issued pursuant to section 2511(c)(2) of title 
10, United States Code.
    (d) Use of Competitive Procedures.--Funds obligated for a dual-use 
project may be counted toward meeting an objective under subsection (a) 
only if the funds are obligated for a contract, grant, cooperative 
agreement, or other transaction that was entered into through the use 
of competitive procedures.
    (e) Report.--(1) Not later than January 31 of each of 1998, 1999, 
and 2000, the Secretary of Defense shall submit a report to the 
congressional defense committees on the progress made by the Department 
of Defense in meeting the objectives set forth in subsection (a) during 
the preceding fiscal year.
    (2) The report for a fiscal year shall contain, at a minimum, the 
following:
            (A) The aggregate value of all contracts, grants, 
        cooperative agreements, or other transactions entered into 
        during the fiscal year for which funding is counted toward 
        meeting an objective under this section, expressed in 
        relationship to the total amount appropriated for the applied 
        research programs in the Department of Defense for that fiscal 
        year.
            (B) For each military department, the value of all 
        contracts, grants, cooperative agreements, or other 
        transactions entered into during the fiscal year for which 
        funding is counted toward meeting an objective under this 
        section, expressed in relationship to the total amount 
        appropriated for the applied research program of the military 
        department for that fiscal year.
            (C) A summary of the cost-sharing arrangements in dual-use 
        projects that were initiated during the fiscal year and are 
        counted toward reaching an objective under this section.
            (D) A description of the regulations, directives, or other 
        procedures that have been issued by the Secretary of Defense or 
        the Secretary of a military department to increase the 
        percentage of the total value of the dual-use projects 
        undertaken to meet or exceed an objective under this section.
            (E) Any recommended legislation to facilitate achievement 
        of objectives under this section.
    (f) Repeal of Superseded Authority.--Section 203 of the National 
Defense Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110 
Stat. 2451) is repealed.
    (g) Definitions.--In this section:
            (1) The term ``applied research program'' means a program 
        of a military department which is funded under the 6.2 
        Research, Development, Test and Evaluation account of that 
        department.
            (2) The term ``dual-use project'' means a project under a 
        program of a military department or a defense agency under 
        which research or development of a dual-use technology is 
        carried out and the costs of which are shared by the Department 
        of Defense and non-Government entities.

SEC. 217. TRANSFERS OF AUTHORIZATIONS FOR COUNTERPROLIFERATION SUPPORT 
              PROGRAM.

    (a) In General.--In addition to the transfer authority provided in 
section 1001, 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 1998 to counterproliferation 
programs, projects, and activities identified as areas for progress by 
the Counterproliferation Program Review Committee established by 
section 1605 of the National Defense Authorization Act for Fiscal Year 
1994 (22 U.S.C. 2751 note). Amounts of authorizations so transferred 
shall be merged with and be available for the same purposes as the 
authorization to which transferred.
    (b) Limitations.--(1) The total amount of authorizations 
transferred under the authority of this section may not exceed 
$50,000,000.
    (2) The authority provided by this section to transfer 
authorizations--
            (A) may only be used to provide authority for items that 
        have a higher priority than the items from which authority is 
        transferred; and
            (B) may not be used to provide authority for an item that 
        has been denied authorization by Congress.
    (c) Effect of Transfers on Accounts.--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) Congressional Notification.--The Secretary of Defense shall 
promptly notify Congress of transfers made under the authority of this 
section.

SEC. 218. KINETIC ENERGY TACTICAL ANTI-SATELLITE TECHNOLOGY PROGRAM.

    (a) Funding.--Of the funds authorized to be appropriated under 
section 201(4), $80,000,000 shall be available for the kinetic energy 
tactical anti-satellite technology program.
    (b) Limitation.--None of the funds authorized to be appropriated to 
the Department of Defense for fiscal year 1998 for program element 
65104D, relating to technical studies and analyses, may be obligated or 
expended until the funds specified in subsection (a) have been released 
to the program manager of the tactical kinetic energy anti-satellite 
technology program for implementation of that program.

SEC. 219. CLEMENTINE 2 MICRO-SATELLITE DEVELOPMENT PROGRAM.

    (a) Funding.--Of the amount authorized to be appropriated under 
section 201(3), $50,000,000 shall be available for the Clementine 2 
micro-satellite near-earth asteroid interception mission.
    (b) Limitation.--Of the funds authorized to be appropriated 
pursuant to this Act in program element 64480F for the Global 
Positioning System Block IIF satellite system, not more than 
$35,000,000 may be obligated until the Secretary of Defense certifies 
to Congress that the Secretary has made available for obligation the 
funds appropriated pursuant to subsection (a) for the purpose specified 
in that subsection.

             Subtitle C--Ballistic Missile Defense Programs

SEC. 221. NATIONAL MISSILE DEFENSE PROGRAM.

    (a) Program Structure.--To preserve the option of achieving an 
initial operational capability in fiscal year 2003, the Secretary of 
Defense shall ensure that the National Missile Defense Program is 
structured and programmed for funding so as to support a test, in 
fiscal year 1999, of an integrated national missile defense system that 
is representative of the national missile defense system architecture 
that could achieve initial operational capability in fiscal year 2003.
    (b) Elements of NMD System.--The national missile defense system 
architecture specified in subsection (a) shall consist of the following 
elements:
            (1) An interceptor system that optimizes defensive coverage 
        of the continental United States, Alaska, and Hawaii against 
        limited ballistic missile attack (whether accidental, 
        unauthorized, or deliberate).
            (2) Ground-based radars.
            (3) Space-based sensors.
            (4) Battle management, command, control, and communications 
        (BM/C3).
    (c) Plan for NMD System Development and Deployment.--Not later than 
February 15, 1998, the Secretary of Defense shall submit to the 
congressional defense committees a plan for the development and 
deployment of a national missile defense system that could achieve 
initial operational capability in fiscal year 2003. The plan shall 
include the following matters:
            (1) A detailed description of the system architecture 
        selected for development.
            (2) A discussion of the justification for the selection of 
        that particular architecture.
            (3) The Secretary's estimate of the amounts of the 
        appropriations that would be necessary for research, 
        development, test, evaluation, and for procurement for each of 
        fiscal years 1999 through 2003 in order to achieve an initial 
        operational capability of the system architecture in fiscal 
        year 2003.
            (4) For each activity necessary for the development and 
        deployment of the national missile defense system architecture 
        selected by the Secretary that would at some point conflict 
        with the terms of the ABM Treaty, if any--
                    (A) a description of the activity;
                    (B) a description of the point at which the 
                activity would conflict with the terms of the ABM 
                Treaty;
                    (C) the legal analysis justifying the Secretary's 
                determination regarding the point at which the activity 
                would conflict with the terms of the ABM Treaty; and
                    (D) an estimate of the time at which such point 
                would be reached in order to achieve a test of an 
                integrated missile defense system in fiscal year 1999 
                and initial operational capability of such a system in 
                fiscal year 2003.
    (d) Funding for Fiscal Year 1998.--Of the funds authorized to be 
appropriated under section 201(4), $978,091,000 shall be available for 
the national missile defense program.
    (e) ABM Treaty Defined.--In this section, the term ``ABM Treaty'' 
means the Treaty Between the United States of America and the Union of 
Soviet Socialist Republics on the Limitation of Anti-Ballistic Missile 
Systems, signed at Moscow on May 26, 1972, and includes the Protocol to 
that treaty, signed at Moscow on July 3, 1974.

SEC. 222. REVERSAL OF DECISION TO TRANSFER PROCUREMENT FUNDS FROM THE 
              BALLISTIC MISSILE DEFENSE ORGANIZATION.

    (a) Transfers Required.--The Secretary of Defense shall--
            (1) transfer to appropriations available to the Ballistic 
        Missile Defense Organization for procurement for fiscal year 
        1998 the amounts that were transferred to accounts of the Army, 
        Navy, Air Force, and Marine Corps pursuant to Program Budget 
        Decision 224C3, signed by the Under Secretary of Defense 
        (Comptroller) on December 23, 1996; and
            (2) ensure that, in the future-years defense program, the 
        procurement funding covered by that program budget decision is 
        programmed for appropriations accounts of the Ballistic Missile 
        Defense Organization rather than appropriations accounts of the 
        Armed Forces.
    (b) Relationship to Other Transfer Authority.--The transfer 
authority provided in subsection (a) is in addition to the transfer 
authority provided in section 1001.

                       Subtitle D--Other Matters

SEC. 231. MANUFACTURING TECHNOLOGY PROGRAM.

    Section 2525(c)(2) of title 10, United States Code, is amended to 
read as follows:
    ``(2) In order to promote increased dissemination and use of 
manufacturing technology throughout the national defense technology and 
industrial base, the Secretary shall seek, to the maximum extent 
practicable, the participation of manufacturers of manufacturing 
equipment in the projects under the program.''.

SEC. 232. USE OF MAJOR RANGE AND TEST FACILITY INSTALLATIONS BY 
              COMMERCIAL ENTITIES.

    (a) Extension of Authority.--Subsection (g) of section 2681 of 
title 10, United States Code, is amended by striking out ``1998'' and 
inserting in lieu thereof ``2001''.
    (b) Additional Reporting Requirement.--Subsection (h) of such 
section is amended--
            (1) by striking out ``Report.--'' and inserting in lieu 
        thereof ``Reports.--(1)''; and
            (2) by adding at the end the following:
    ``(2) Not later than February 15, 1998, 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 
identifying existing and proposed procedures to ensure that the use of 
Major Range and Test Facility Installations by commercial entities does 
not compete with private sector test and evaluation services.''.
    (c) Repeal of Reporting Requirements When Executed.--Effective on 
October 1, 1998, subsection (h) of such section is repealed.

SEC. 233. ELIGIBILITY FOR THE DEFENSE EXPERIMENTAL PROGRAM TO STIMULATE 
              COMPETITIVE RESEARCH.

    Section 257 of the National Defense Authorization Act for Fiscal 
Year 1995 (10 U.S.C. 2358 note) is amended by adding at the end the 
following:
    ``(f) State Defined.--In this section, the term `State' means a 
State of the United States, the District of Columbia, Puerto Rico, 
Guam, the Virgin Islands of the United States, American Samoa, and the 
Commonwealth of the Northern Mariana Islands.''.

SEC. 234. RESTRUCTURING OF NATIONAL OCEANOGRAPHIC PARTNERSHIP PROGRAM 
              ORGANIZATIONS.

    (a) National Ocean Research Leadership Council.--Section 7902 of 
title 10, United States Code, is amended--
            (1) in subsection (b)--
                    (A) by striking out paragraphs (11), (14), (15), 
                (16) and (17); and
                    (B) by redesignating paragraphs (12) and (13) as 
                paragraphs (11) and (12), respectively;
            (2) by striking out subsection (d); and
            (3) by redesignating subsections (e), (f), (g), (h), and 
        (i) as subsections (d), (e), (f), (g), and (h), respectively.
    (b) Ocean Research Advisory Panel.--(1) Section 7903(a) of such 
title is amended by striking out ``government, academia, and industry'' 
and inserting in lieu thereof ``State governments, academia, and ocean 
industries''.
    (2) Section 282(c) of the National Defense Authorization Act for 
Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2473) is amended by 
striking out ``January 1, 1997'' and inserting in lieu thereof 
``January 1, 1998''.
    (c) Conforming Amendments.--Section 282 of the National Defense 
Authorization Act for Fiscal Year 1997 is amended--
            (1) by striking out subsection (b); and
            (2) by redesignating subsections (c), (d), (e), and (f) as 
        subsections (b), (c), (d), and (e), respectively.
    (d) Effective Date.--The amendments made by subsection (a) and (b) 
shall be effective as of September 23, 1996, as if included in section 
282 of Public Law 104-201.

                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

    Funds are hereby authorized to be appropriated for fiscal year 1998 
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, $17,194,284,000.
            (2) For the Navy, $21,681,330,000.
            (3) For the Marine Corps, $2,379,445,000.
            (4) For the Air Force, $18,861,685,000.
            (5) For Defense-wide activities, $10,280,838,000.
            (6) For the Army Reserve, $1,212,891,000.
            (7) For the Naval Reserve, $834,711,000.
            (8) For the Marine Corps Reserve, $110,366,000.
            (9) For the Air Force Reserve, $1,624,420,000.
            (10) For the Army National Guard, $2,288,932,000.
            (11) For the Air National Guard, $2,991,219,000.
            (12) For the Defense Inspector General, $136,580,000.
            (13) For the United States Court of Appeals for the Armed 
        Forces, $6,952,000.
            (14) For Environmental Restoration, Army, $350,337,000.
            (15) For Environmental Restoration, Navy, $257,500,000.
            (16) For Environmental Restoration, Air Force, 
        $351,900,000.
            (17) For Environmental Restoration, Defense-Wide, 
        $25,900,000.
            (18) For Environmental Restoration, Formerly Used Defense 
        Sites, $188,300,000.
            (19) For Overseas Contingency Operations, $1,467,500,000.
            (20) For Drug Interdiction and Counter-drug Activities, 
        Defense-wide, $660,882,000.
            (21) For Medical Programs, Defense, $9,954,782,000.
            (22) For Former Soviet Union Threat Reduction programs, 
        $322,000,000.
            (23) For Overseas Humanitarian Demining and CINC Initiative 
        activities, $40,130,000.
            (24) For the Kaho'olawe Island Conveyance, Remediation, and 
        Environmental Restoration Trust Fund, $10,000,000.

SEC. 302. WORKING-CAPITAL FUNDS.

    Funds are hereby authorized to be appropriated for fiscal year 1998 
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 Fund, $33,400,000.
            (2) For the National Defense Sealift Fund, $516,126,000.
            (3) For the Military Commissary Fund, $938,552,000.

SEC. 303. ARMED FORCES RETIREMENT HOME.

    There is hereby authorized to be appropriated for fiscal year 1998 
from the Armed Forces Retirement Home Trust Fund the sum of $79,977,000 
for the operation of the Armed Forces Retirement Home, including the 
United States Soldiers' and Airmen's Home and the Naval Home.

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

    (a) Transfer Authority.--To the extent provided in appropriations 
Acts, not more than $150,000,000 is authorized to be transferred from 
the National Defense Stockpile Transaction Fund to operation and 
maintenance accounts for fiscal year 1998 in amounts as follows:
            (1) For the Army, $50,000,000.
            (2) For the Navy, $50,000,000.
            (3) For the Air Force, $50,000,000.
    (b) Treatment of Transfers.--Amounts transferred under this 
section--
            (1) shall be merged with, and be available for the same 
        purposes and the same period as, the amounts in the accounts to 
        which transferred; and
            (2) may not be expended for an item that has been denied 
        authorization of appropriations by Congress.
    (c) Relationship to Other Transfer Authority.--The transfer 
authority provided in this section is in addition to the transfer 
authority provided in section 1001.

SEC. 305. FISHER HOUSE TRUST FUNDS.

    Funds are hereby authorized to be appropriated for fiscal year 
1998, out of funds in Fisher House Trust Funds not otherwise 
appropriated, for the operation and maintenance of Fisher houses 
described in section 2221(d) of title 10, United States Code, as 
follows:
            (1) The Fisher House Trust Fund, Department of the Army, 
        $150,000 for Fisher houses that are located in proximity to 
        medical treatment facilities of the Army.
            (2) The Fisher House Trust Fund, Department of the Navy, 
        $150,000 for Fisher houses that are located in proximity to 
        medical treatment facilities of the Navy.

                   Subtitle B--Depot-Level Activities

SEC. 311. PERCENTAGE LIMITATION ON PERFORMANCE OF DEPOT-LEVEL 
              MAINTENANCE OF MATERIEL.

    (a) Performance in Non-Government Facilities.--Subsection (a) of 
section 2466 of title 10, United States Code, is amended to read as 
follows:
    ``(a) Percentage Limitation.--(1) Except as provided in paragraph 
(2), not more than 50 percent of the funds made available in a fiscal 
year to a military department or a Defense Agency for depot-level 
maintenance and repair workload may be used to contract for the 
performance of such workload in facilities other than Government-owned, 
Government-operated facilities.
    ``(2) In the administration of paragraph (1) for fiscal years 
ending before October 1, 1998, the percentage specified in that 
paragraph shall be deemed to be 40 percent.''.
    (b) Treatment of Performance by Public-Private Partnership.--Such 
section is further amended by inserting after subsection (a), as 
amended by subsection (a), the following:
    ``(b) Treatment of Performance by Public-Private Partnership.--For 
the purposes of subsection (a), any performance of a depot-level 
maintenance and repair workload by a public-private partnership formed 
under section 2474(b) of this title shall be treated as performance of 
the workload in a Government-owned, Government-operated facility.''.

SEC. 312. CENTERS OF INDUSTRIAL AND TECHNICAL EXCELLENCE.

    (a) Designation and Purpose.--(1) Chapter 146 of title 10, United 
States Code, is amended by adding at the end the following new section:
``Sec. 2474. Centers of Industrial and Technical Excellence: 
              designation; public-private partnerships
    ``(a) Designation.--(1) The Secretary of Defense shall designate 
each depot-level activity of the military departments and the Defense 
Agencies (other than facilities recommended for closure or major 
realignment under the Defense Base Closure and Realignment Act of 1990 
(part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 note)) as a 
Center of Industrial and Technical Excellence in the recognized core 
competencies of the activity.
    ``(2) The Secretary shall establish a policy to encourage the 
Secretary of each military department and the head of each Defense 
Agency to reengineer industrial processes and adopt best-business 
practices at their depot-level activities in connection with their core 
competency requirements, so as to serve as recognized leaders in their 
core competencies throughout the Department of Defense and in the 
national technology and industrial base (as defined in section 2491(1) 
of this title).
    ``(b) Public-Private Partnerships.--The Secretary of Defense shall 
enable Centers of Industrial and Technical Excellence to form public-
private partnerships for the performance of depot-level maintenance and 
repair at such centers and shall encourage the use of such partnerships 
to maximize the utilization of the capacity at such Centers.
    ``(c) Additional Work.--The policy required under subsection (a) 
shall include measures to enable a private sector entity that enters 
into a partnership arrangement under subsection (b) or leases excess 
equipment and facilities at a Center of Industrial and Technical 
Excellence pursuant to section 2471 of this title to perform additional 
work at the Center, subject to the limitations outlined in subsection 
(b) of such section, outside of the types of work normally assigned to 
the Center.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``2474. Centers of Industrial and Technical Excellence: designation; 
                            public-private partnerships.''.
    (b) Reporting Requirement.--Not later than March 1, 1998, the 
Secretary of Defense shall submit to Congress a report describing the 
policies established by the Secretary pursuant to section 2474 of title 
10, United States Code (as added by subsection (a)), to carry out that 
section.

SEC. 313. CLARIFICATION OF PROHIBITION ON MANAGEMENT OF DEPOT EMPLOYEES 
              BY CONSTRAINTS ON PERSONNEL LEVELS.

    Section 2472(a) of title 10, United States Code, is amended by 
striking out the first sentence and inserting in lieu thereof the 
following: ``The civilian employees of the Department of Defense, 
including the civilian employees of the military departments and the 
Defense Agencies, who perform, or are involved in the performance of, 
depot-level maintenance and repair workloads may not be managed on the 
basis of any constraint or limitation in terms of man years, end 
strength, full-time equivalent positions, or maximum number of 
employees.''.

SEC. 314. ANNUAL REPORT ON DEPOT-LEVEL MAINTENANCE AND REPAIR.

    Subsection (e) of section 2466 of title 10, United States Code, is 
amended to read as follows:
    ``(e) Report.--(1) Not later than February 1 of each year, the 
Secretary of Defense shall submit to Congress a report identifying, for 
each military department and Defense Agency--
            ``(A) the percentage of the funds referred to in subsection 
        (a) that were used during the preceding fiscal year for 
        performance of depot-level maintenance and repair workloads in 
        Government-owned, Government-operated facilities; and
            ``(B) the percentage of the funds referred to in subsection 
        (a) that were used during the preceding fiscal year to contract 
        for the performance of depot-level maintenance and repair 
        workloads in facilities that are not owned and operated by the 
        Federal Government.
    ``(2) Not later than 90 days after the date on which the Secretary 
submits the annual report under paragraph (1), the Comptroller General 
shall submit to the Committees on Armed Services and on Appropriations 
of the Senate and the Committees on National Security and on 
Appropriations of the House of Representatives the Comptroller's views 
on whether the Department of Defense has complied with the requirements 
of subsection (a) for the fiscal year covered by the report.''.

SEC. 315. REPORT ON ALLOCATION OF CORE LOGISTICS ACTIVITIES AMONG 
              DEPARTMENT OF DEFENSE FACILITIES AND PRIVATE SECTOR 
              FACILITIES.

    (a) Report.--Not later than May 31, 1998, the Secretary of Defense 
shall submit to Congress a report on the allocation among facilities of 
the Department of Defense and facilities in the private sector of the 
logistics activities that are necessary to maintain and repair the 
weapon systems and other military equipment identified by the 
Secretary, in consultation with the Joint Chiefs of Staff, as being 
necessary to enable the Armed Forces to conduct a strategic or major 
theater war.
    (b) Elements.--The report under subsection (a) shall set forth the 
following:
            (1) The systems or equipment identified under subsection 
        (a) that must be maintained and repaired in Government-owned, 
        Government-operated facilities, using personnel and equipment 
        of the Department, as a result of the Secretary's determination 
        that--
                    (A) the work involves unique or valuable workforce 
                skills that should be maintained in the public sector 
                in the national interest;
                    (B) the base of private sector sources having the 
                capability to perform the workloads includes industry 
                sectors that are vulnerable to work stoppages;
                    (C) the private sector sources having the 
                capability to perform the workloads have insufficient 
                workforce levels or skills to perform the depot-level 
                maintenance and repair workloads--
                            (i) in the quantity necessary, or as 
                        rapidly as the Secretary considers necessary, 
                        to enable the armed forces to fulfill the 
                        national military strategy; or
                            (ii) without a significant disruption or 
                        delay in the maintenance and repair of 
                        equipment;
                    (D) the need for performance of workloads is too 
                infrequent, cyclical, or variable to sustain a reliable 
                base of private sector sources having the workforce 
                levels or skills to perform the workloads;
                    (E) the market conditions or workloads are 
                insufficient to ensure that the price of private sector 
                performance of the workloads can be controlled through 
                competition or other means;
                    (F) private sector sources are not adequately 
                responsive to the requirements of the Department for 
                rapid, cost-effective, and flexible response to surge 
                requirements or other contingency situations, including 
                changes in the mix or priority of previously scheduled 
                workloads and reassignment of employees to different 
                workloads without the requirement for additional 
                contractual negotiations;
                    (G) private sector sources are less willing to 
                assume responsibility for performing the workload as a 
                result of the possibility of direct military or 
                terrorist attack; or
                    (H) private sector sources cannot maintain 
                continuity of workforce expertise as a result of high 
                rates of employee turnover.
            (2) The systems or equipment identified under subsection 
        (a) that must be maintained and repaired in Government-owned 
        facilities, whether Government operated or contractor-operated, 
        as a result of the Secretary's determination that--
                    (A) the work involves facilities, technologies, or 
                equipment that are unique and sufficiently valuable 
                that the facilities, technologies, or equipment must be 
                maintained in the public sector in the national 
                interest;
                    (B) the private sector sources having the 
                capability to perform the workloads have insufficient 
                facilities, technology, or equipment to perform the 
                depot-level maintenance and repair workloads--
                            (i) in the quantity necessary, or as 
                        rapidly as the Secretary considers necessary, 
                        to enable the armed forces to fulfill the 
                        national military strategy; or
                            (ii) without a significant disruption or 
                        delay in the maintenance and repair of 
                        equipment; or
                    (C) the need for performance of workloads is too 
                infrequent, cyclical, or variable to sustain a reliable 
                base of private sector sources having the facilities, 
                technology, or equipment to perform the workloads.
            (3) The systems or equipment identified under subsection 
        (a) that may be maintained and repaired in private sector 
        facilities.
            (4) The approximate percentage of the total maintenance and 
        repair workload of the Department of Defense necessary for the 
        systems and equipment identified under subsection (a) that 
        would be performed at Department of Defense facilities, and at 
        private sector facilities, as a result of the determinations 
        made for purposes of paragraphs (1), (2), and (3).

SEC. 316. REVIEW OF USE OF TEMPORARY DUTY ASSIGNMENTS FOR SHIP REPAIR 
              AND MAINTENANCE.

    (a) Findings.--Congress makes the following findings:
            (1) In order to reduce the time that the crew of a naval 
        vessel is away from the homeport of the vessel, the Navy seeks 
        to perform ship repair and maintenance of the vessel at the 
        homeport of the vessel whenever it takes six months or less to 
        accomplish the work involved.
            (2) At the same time, the Navy seeks to distribute ship 
        repair and maintenance work among the Navy shipyards (known as 
        to ``level load'') in order to more fully utilize personnel 
        resources.
            (3) During periods when a Navy shipyard is not utilized to 
        its capacity, the Navy sometimes sends workers at the shipyard, 
        on a temporary duty basis, to perform ship repairs and 
        maintenance at a homeport not having a Navy shipyard.
            (4) This practice is a more efficient use of civilian 
        employees who might otherwise not be fully employed on work 
        assigned to Navy shipyards.
    (b) GAO Review and Report.--(1) The Comptroller General of the 
United States shall review the Navy's practice of using temporary duty 
assignments of personnel to perform ship maintenance and repair work at 
homeports not having Navy shipyards. The review shall include the 
following:
            (A) An assessment of the rationale, conditions, and factors 
        supporting the Navy's practice.
            (B) A determination of whether the practice is cost-
        effective.
            (C) The factors affecting future requirements for, and the 
        adherence to, the practice, together with an assessment of the 
        factors.
    (2) Not later than May 1, 1998, the Comptroller General shall 
submit a report on the review to the Committee on Armed Services of the 
Senate and the Committee on National Security of the House of 
Representatives.

SEC. 317. REPEAL OF A CONDITIONAL REPEAL OF CERTAIN DEPOT-LEVEL 
              MAINTENANCE AND REPAIR LAWS AND A RELATED REPORTING 
              REQUIREMENT.

    Section 311 of the National Defense Authorization Act for Fiscal 
Year 1996 (Public Law 104-106; 110 Stat. 247; 10 U.S.C. 2464 note) is 
amended by striking out subsections (f) and (g).

SEC. 318. EXTENSION OF AUTHORITY FOR NAVAL SHIPYARDS AND AVIATION 
              DEPOTS TO ENGAGE IN DEFENSE-RELATED PRODUCTION AND 
              SERVICES.

    Section 1425(e) of the National Defense Authorization Act for 
Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1684) is amended by 
striking out ``September 30, 1997'' and inserting in lieu thereof 
``September 30, 1998''.

                  Subtitle C--Environmental Provisions

SEC. 331. CLARIFICATION OF AUTHORITY RELATING TO STORAGE AND DISPOSAL 
              OF NONDEFENSE TOXIC AND HAZARDOUS MATERIALS ON DEPARTMENT 
              OF DEFENSE PROPERTY.

    (a) Materials of Members and Dependents.--Subsection (a)(1) of 
section 2692 of title 10, United States Code, is amended by inserting 
``or by a member of the armed forces (or a dependent of a member) 
living on the installation'' before the period at the end.
    (b) Storage of Materials Connected with Compatible Use.--Subsection 
(b)(8) of such section is amended--
            (1) by striking out ``by a private person'';
            (2) by striking out ``by that private person of an 
        industrial-type'' and inserting in lieu thereof ``of a''; and
            (3) by striking out ``; and'' and inserting in lieu thereof 
        ``, including a space launch facility located on a Department 
        of Defense installation or other land controlled by the United 
        States and a Department of Defense facility for testing 
        materiel or training personnel;''.
    (c) Treatment and Disposal of Materials Connected with Compatible 
Use.--Subsection (b)(9) of such section is amended--
            (1) by striking out ``by a private person'';
            (2) by striking out ``commercial use by that person of an 
        industrial-type'' and inserting in lieu thereof ``use of a'';
            (3) by striking out ``with that person'' and inserting in 
        lieu thereof ``with the prospective user''; and
            (4) in subparagraph (B), by striking out ``for that 
        person's'' and inserting in lieu thereof ``for the prospective 
        user's''.
    (d) Additional Authority.--Subsection (b) of such section is 
further amended--
            (1) by striking out the period at the end of paragraph (9) 
        and inserting in lieu thereof ``; and''; and
            (2) by adding at the end the following:
            ``(10) the storage of materials that will be used in 
        connection with an activity of the Department of Defense or in 
        connection with a service performed for the benefit of the 
        Department of Defense or the disposal of materials that have 
        been used in such connection.''.

SEC. 332. ANNUAL REPORT ON PAYMENTS AND ACTIVITIES IN RESPONSE TO FINES 
              AND PENALTIES ASSESSED UNDER ENVIRONMENTAL LAWS.

    (a) Annual Reports.--Section 2706(b)(2) of title 10, United States 
Code, is amended by adding at the end the following:
                    ``(H) A statement of the fines and penalties 
                imposed or assessed against the Department of Defense 
                under Federal, State, or local environmental law during 
                the fiscal year preceding the fiscal year in which the 
                report is submitted, which statement sets forth--
                            ``(i) each Federal environmental statute 
                        under which a fine or penalty was imposed or 
                        assessed during the fiscal year;
                            ``(ii) with respect to each such statute--
                                    ``(I) the aggregate amount of fines 
                                and penalties imposed or assessed 
                                during the fiscal year;
                                    ``(II) the aggregate amount of 
                                fines and penalties paid during the 
                                fiscal year;
                                    ``(III) the total amount required 
                                to meet commitments to environmental 
                                enforcement authorities under 
                                agreements entered into by the 
                                Department of Defense during the fiscal 
                                year for supplemental environmental 
                                projects agreed to in lieu of the 
                                payment of fines or penalties; and
                                    ``(IV) the number of fines and 
                                penalties imposed or assessed during 
                                the fiscal year that were--
                                            ``(aa) $10,000 or less;
                                            ``(bb) more than $10,000, 
                                        but not more than $50,000;
                                            ``(cc) more than $50,000, 
                                        but not more than $100,000; and
                                            ``(dd) more than $100,000; 
                                        and
                            ``(iii) with respect to each fine or 
                        penalty set forth under clause (ii)(IV)(dd)--
                                    ``(I) the installation or facility 
                                to which the fine or penalty applies; 
                                and
                                    ``(II) the agency that imposed or 
                                assessed the fine or penalty.''.
    (b) Report in Fiscal Year 1998.--The statement submitted by the 
Secretary of Defense under subparagraph (H) of section 2706(b)(2) of 
title 10, United States Code, as added by subsection (a), in 1998 
shall, to the maximum extent practicable, include the information 
required by that subparagraph for each of fiscal years 1994 through 
1997.

SEC. 333. ANNUAL REPORT ON ENVIRONMENTAL ACTIVITIES OF THE DEPARTMENT 
              OF DEFENSE OVERSEAS.

    Section 2706 of title 10, United States Code, is amended--
            (1) by redesignating subsection (d) as subsection (e); and
            (2) by inserting after subsection (c) the following new 
        subsection (d):
    ``(d) Report on Environmental Activities Overseas.--(1) The 
Secretary of Defense shall submit to Congress each year, not later than 
30 days after the date on which the President submits to Congress the 
budget for a fiscal year, a report on the environmental activities of 
the Department of Defense overseas.
    ``(2) Each such report shall include the following:
            ``(A) A statement of the funding levels and full-time 
        personnel required for the Department of Defense to comply 
        during such fiscal year with each requirement under a treaty, 
        law, contract, or other agreement for environmental restoration 
        or compliance activities.
            ``(B) A statement of the funds to be expended by the 
        Department of Defense during such fiscal year in carrying out 
        other activities relating to the environment overseas, 
        including conferences, meetings, and studies for pilot programs 
        and travel related to such activities.''.

SEC. 334. MEMBERSHIP TERMS FOR STRATEGIC ENVIRONMENTAL RESEARCH AND 
              DEVELOPMENT PROGRAM SCIENTIFIC ADVISORY BOARD.

    (a) Terms.--Section 2904(b)(4) of title 10, United States Code, is 
amended by striking out ``three'' and inserting in lieu thereof ``not 
less than two or more than four''.
    (b) Applicability.--The amendment made by subsection (a) shall 
apply to appointments to the Strategic Environmental Research and 
Development Program Scientific Advisory Board made before, on, or after 
the date of enactment of this Act.

SEC. 335. ADDITIONAL INFORMATION ON AGREEMENTS FOR AGENCY SERVICES IN 
              SUPPORT OF ENVIRONMENTAL TECHNOLOGY CERTIFICATION.

    (a) Additional Information.--Subsection (d) of section 327 of the 
National Defense Authorization Act for Fiscal Year 1997 (Public Law 
104-201; 110 Stat. 2483; 10 U.S.C. 2702 note) is amended by adding at 
the end the following:
            ``(5) A statement of the funding that will be required to 
        meet commitments made to State and local governments under 
        agreements entered into during the fiscal year preceding the 
        fiscal year in which the report is submitted.
            ``(6) A description of any cost-sharing arrangement under 
        any cooperative agreement entered into under this section.''.
    (b) Guidelines for Reimbursement and Cost-Sharing.--Not later than 
90 days after the date of enactment of this Act, the Secretary of 
Defense shall submit to Congress a report setting forth the guidelines 
established by the Secretary for reimbursement of State and local 
governments, and for cost-sharing between the Department of Defense, 
such governments, and vendors, under agreements entered into under such 
section 327.

SEC. 336. RISK ASSESSMENTS UNDER THE DEFENSE ENVIRONMENTAL RESTORATION 
              PROGRAM.

    (a) In General.--In carrying out risk assessments as part of the 
evaluation of facilities of the Department of Defense for purposes of 
allocating funds and establishing priorities for environmental 
restoration projects at such facilities under the Defense Environmental 
Restoration Program, the Secretary of Defense shall--
            (1) utilize a risk assessment method that meets the 
        requirements in subsection (b); and
            (2) ensure the uniform and consistent utilization of the 
        risk assessment method in all evaluations of facilities under 
        the program.
    (b) Risk Assessment Method.--The risk assessment method utilized 
under subsection (a) shall--
            (1) take into account as a separate factor of risk--
                    (A) the extent to which the contamination level of 
                a particular contaminant exceeds the permissible 
                contamination level for the contaminant;
                    (B) the existence and extent of any population 
                (including human populations and natural populations) 
                potentially affected by the contaminant; and
                    (C) the existence and nature of any mechanism that 
                would cause the population to be affected by the 
                contaminant; and
            (2) provide appropriately for the significance of any such 
        factor in the final determination of risk.
    (c) Defense Environmental Restoration Program Defined.--In this 
section, the term ``Defense Environmental Restoration Program'' means 
the program of environmental restoration carried out under chapter 160 
of title 10, United States Code.

SEC. 337. RECOVERY AND SHARING OF COSTS OF ENVIRONMENTAL RESTORATION AT 
              DEPARTMENT OF DEFENSE SITES.

    (a) Guidelines.--
            (1) In general.--The Secretary of Defense shall prescribe 
        in regulations guidelines concerning the cost-recovery and 
        cost-sharing activities of the military departments and defense 
        agencies.
            (2) Covered matters.--The guidelines prescribed under 
        paragraph (1) shall--
                    (A) establish uniform requirements relating to 
                cost-recovery and cost-sharing activities for the 
                military departments and defense agencies;
                    (B) require the Secretaries of the military 
                departments and the heads of the defense agencies to 
                obtain all appropriate data regarding activities of 
                contractors of the Department or other private parties 
                responsible for environmental contamination at 
                Department sites that is relevant for purposes of cost-
                recovery and cost-sharing activities;
                    (C) require the Secretaries of the military 
                departments and the heads of the defense agencies to 
                use consistent methods in estimating the costs of 
                environmental restoration at sites under the 
jurisdiction of such departments and agencies for purposes of reports 
to Congress on such costs;
                    (D) require the Secretaries of the military 
                departments to reduce the amounts requested for 
                environmental restoration activities of such 
                departments for a fiscal year by the amounts 
                anticipated to be recovered in the preceding fiscal 
                year as a result of cost-recovery and cost-sharing 
                activities; and
                    (E) resolve any unresolved issues regarding the 
                crediting of amounts recovered as a result of such 
                activities under section 2703(d) of title 10, United 
                States Code.
    (b) Implementation of Guidelines.--The Secretary shall take 
appropriate actions to ensure the implementation of the guidelines 
prescribed under subsection (a), including appropriate requirements 
to--
            (1) identify contractors of the Department and other 
        private parties responsible for environmental contamination at 
        Department sites;
            (2) review the activities of contractors of the Department 
        and other private parties in order to identify negligence or 
        other misconduct in such activities that would preclude 
        Department indemnification for the costs of environmental 
        restoration relating to such contamination or justify the 
        recovery or sharing of costs associated with such restoration;
            (3) obtain data as provided for under subsection (a)(2)(B); 
        and
            (4) pursue cost-recovery and cost-sharing activities where 
        appropriate.
    (c) Definition.--In this section, the term ``cost-recovery and-cost 
sharing activities'' means activities concerning--
            (1) the recovery of the costs of environmental restoration 
        at Department sites from contractors of the Department and 
        other private parties that contribute to environmental 
        contamination at such sites; and
            (2) the sharing of the costs of such restoration with such 
        contractors and parties.

SEC. 338. PILOT PROGRAM FOR THE SALE OF AIR POLLUTION EMISSION 
              REDUCTION INCENTIVES.

    (a) Authority.--(1) The Secretary of Defense may, in consultation 
with the Administrator of General Services, carry out a pilot program 
to assess the feasibility and advisability of the sale of economic 
incentives for the reduction of emission of air pollutants attributable 
to a facility of a military department.
    (2) The Secretary may carry out the pilot program during the period 
beginning on October 1, 1997, and ending on September 30, 1999.
    (b) Incentives Available for Sale.--(1) Under the pilot program, 
the Secretary may sell economic incentives for the reduction of 
emission of air pollutants attributable to a facility of a military 
department only if such incentives are not otherwise required for the 
activities or operations of the military department.
    (2) The Secretary may not, under the pilot program, sell economic 
incentives attributable to the closure or realignment of a military 
installation under a base closure law.
    (3) If the Secretary determines that additional sales of economic 
incentives are likely to result in amounts available for allocation 
under subsection (c)(2) in a fiscal year in excess of the limitation 
set forth in subparagraph (B) of that subsection, the Secretary shall 
not carry out such additional sales in that fiscal year.
    (c) Use of Proceeds.--(1) The proceeds of sale of economic 
incentives attributable to a facility of a military department shall be 
credited to the funds available to the facility for the costs of 
identifying, quantifying, or valuing economic incentives for the 
reduction of emission of air pollutants. The amount credited shall be 
equal to the cost incurred in identifying, quantifying, or valuing the 
economic incentives sold.
    (2)(A)(i) If after crediting under paragraph (1) a balance remains, 
the amount of such balance shall be available to the Department of 
Defense for allocation by the Secretary to the military departments for 
programs, projects, and activities necessary for compliance with 
Federal environmental laws, including the purchase of economic 
incentives for the reduction of emission of air pollutants.
    (ii) To the extent practicable, amounts allocated to the military 
departments under this subparagraph shall be made available to the 
facilities that generated the economic incentives providing the basis 
for the amounts.
    (B) The total amount allocated under this paragraph in a fiscal 
year from sales of economic incentives may not equal or exceed 
$500,000.
    (3) If after crediting under paragraph (1) a balance remains in 
excess of an amount equal to the limitation set forth in paragraph 
(2)(B), the amount of the excess shall be covered over into the 
Treasury as miscellaneous receipts.
    (4) Funds credited under paragraph (1) or allocated under paragraph 
(2) shall be merged with the funds to which credited or allocated, as 
the case may be, and shall be available for the same purposes and for 
the same period as the funds with which merged.
    (d) Definitions.--In this section:
            (1) The term ``base closure law'' means the following:
                    (A) Section 2687 of title 10, United States Code.
                    (B) Title II of the Defense Authorization 
                Amendments and Base Closure and Realignment Act (Public 
                Law 100-526; 10 U.S.C. 2687 note).
                    (C) 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).
            (2) The term ``economic incentives for the reduction of 
        emission of air pollutants'' means any transferable economic 
        incentives (including marketable permits and emission rights) 
        necessary or appropriate to meet air quality requirements under 
        the Clean Air Act (42 U.S.C. 7401 et seq.).

SEC. 339. 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(5) for operation and maintenance for defense-wide 
activities, not more than $5,000,000 shall be available for the pilot 
program.

  Subtitle D--Commissaries and Nonappropriated Fund Instrumentalities

SEC. 351. FUNDING SOURCES FOR CONSTRUCTION AND IMPROVEMENT OF 
              COMMISSARY STORE FACILITIES.

    (a) Additional Funding Sources.--Section 2685 of title 10, United 
States Code, is amended--
            (1) by redesignating subsections (b), (c), and (d) as 
        subsections (c), (d), and (e), respectively; and
            (2) by inserting after subsection (a) the following new 
        subsection (b):
    ``(b) Funds for Construction and Improvements.--Revenues received 
by the Department of Defense from the following sources or activities 
of commissary store facilities shall be available for the purposes set 
forth in subsections (c), (d), and (e):
            ``(1) Adjustments or surcharges authorized by subsection 
        (a).
            ``(2) Sale of recyclable materials.
            ``(3) Sale of excess property.
            ``(4) License fees.
            ``(5) Royalties.
            ``(6) Fees paid by sources of products in order to obtain 
        favorable display of the products for resale, known as business 
        related management fees.
            ``(7) Products offered for sale in commissaries under 
        consignment with exchanges, as designated by the Secretary of 
        Defense.''.

SEC. 352. INTEGRATION OF MILITARY EXCHANGE SERVICES.

    (a) Integration Required.--The Secretaries of the military 
departments shall integrate the military exchange services, including 
the managing organizations of the military exchange services, not later 
than September 30, 2000.
    (b) Submission of Plan to Congress.--Not later than 180 days after 
the date of the enactment of this Act, the Secretaries of the military 
departments shall submit to the Committee on Armed Services of the 
Senate and the Committee on National Security of the House of 
Representatives the plan for achieving the integration required by 
subsection (a).

                       Subtitle E--Other Matters

SEC. 361. ADVANCE BILLINGS FOR WORKING-CAPITAL FUNDS.

    (a) Restriction.--Section 2208 of title 10, United States Code, is 
amended--
            (1) by redesignating subsection (k) as subsection (l); and
            (2) by inserting after subsection (j) the following new 
        subsection (k):
    ``(k)(1) An advance billing of a customer for a working-capital 
fund is prohibited except as provided in paragraph (2).
    ``(2) An advance billing of a customer for a working-capital fund 
is authorized if--
            ``(A) the Secretary of Defense has submitted to the 
        Committees on Armed Services and on Appropriations of the 
        Senate and the Committees on National Security and on 
        Appropriations of the House of Representatives a notification 
        of the advance billing; and
            ``(B) in the case of an advance billing in an amount that 
        exceeds $50,000,000, thirty days have elapsed since the date of 
        the notification.
    ``(3) A notification of an advance billing of a customer for a 
working-capital fund that is submitted under paragraph (2) shall 
include the following:
            ``(A) The reasons for the advance billing.
            ``(B) An analysis of the effects of the advance billing on 
        military readiness.
            ``(C) An analysis of the effects of the advance billing on 
        the customer.
    ``(4) The Secretary of Defense may waive the applicability of this 
subsection--
            ``(A) during a period war or national emergency; or
            ``(B) to the extent that the Secretary determines necessary 
        to support a contingency operation.
    ``(5) The Secretary of Defense shall submit to the committees 
referred to in paragraph (2) a report on advance billings for all 
working-capital funds whenever the aggregate amount of the advance 
billings for all working-capital funds not covered by a notification 
under that paragraph or a report previously submitted under this 
paragraph exceeds $50,000,000. The report shall be submitted not later 
than 30 days after the end of the month in which the aggregate amount 
first reaches $50,000,000. The report shall include, for each customer 
covered by the report, a discussion of the matters described in 
paragraph (3).
    ``(6) In this subsection:
            ``(A) The term `advance billing', with respect to a 
        working-capital fund, means a billing of a customer by the 
        fund, or a requirement for a customer to reimburse or otherwise 
        credit the fund, for the cost of goods or services provided (or 
        for other expenses incurred) on behalf of the customer that is 
        rendered or imposed before the customer receives the goods or 
        before the services have been performed.
            ``(B) The term `customer' means a requisitioning component 
        or agency.''.
    (b) Reports on Advance Billings for the DBOF.--Section 2216a(d)(3) 
of title 10, United States Code, is amended--
            (1) in subparagraph (B)(ii), by striking out 
        ``$100,000,000'' and inserting in lieu thereof ``$50,000,000''; 
        and
            (2) by adding at the end the following:
    ``(D) A report required under subparagraph (B)(ii) shall be 
submitted not later than 30 days after the end of the month in which 
the aggregate amount referred to in that subparagraph reaches the 
amount specified in that subparagraph.''.
    (c) Fiscal Year 1998 Limitation.--(1) The total amount of advance 
billings for Department of Defense working-capital funds and the 
Defense Business Operations Fund for fiscal year 1998 may not exceed 
$1,000,000,000.
    (2) In paragraph (1), the term ``advance billing'', with respect to 
the working-capital funds of the Department of Defense and the Defense 
Business Operations Fund, has the same meaning as is provided with 
respect to working-capital funds in section 2208(k)(6) of title 10, 
United States Code (as amended by subsection (a)).

SEC. 362. CENTER FOR EXCELLENCE IN DISASTER MANAGEMENT AND HUMANITARIAN 
              ASSISTANCE.

    (a) Establishment.--The Secretary of Defense may operate a Center 
for Excellence in Disaster Management and Humanitarian Assistance at 
Tripler Army Medical Center, Hawaii.
    (b) Missions.--The Secretary of Defense shall specify the missions 
of the Center. The missions shall include the following:
            (1) To provide and facilitate education, training, and 
        research in civil-military operations, particularly operations 
        that require international disaster management and humanitarian 
        assistance and operations that require interagency 
        coordination.
            (2) To make available high-quality disaster management and 
        humanitarian assistance in response to disasters.
            (3) To provide and facilitate education, training, 
        interagency coordination, and research on the following 
        additional matters:
                    (A) Management of the consequences of nuclear, 
                biological, and chemical events.
                    (B) Management of the consequences of terrorism.
                    (C) Appropriate roles for the reserve components in 
                the management of such consequences and in disaster 
                management and humanitarian assistance in response to 
                natural disasters.
                    (D) Meeting requirements for information in 
                connection with regional and global disasters, 
                including use of advanced communications technology as 
                a virtual library.
                    (E) Tropical medicine, particularly in relation to 
                the medical readiness requirements of the Department of 
                Defense.
            (4) To develop a repository of disaster risk indicators for 
        the Asia-Pacific region.
    (c) Joint Operation With Educational Institution Authorized.--The 
Secretary may enter into an agreement with appropriate officials of an 
institution of higher education to provide for joint operation of the 
Center. Any such agreement shall provide for the institution to furnish 
necessary administrative services for the Center, including 
administration and allocation of funds.
    (d) Acceptance of Funds.--(1) Except as provided in paragraph (2), 
the Secretary of Defense may, on behalf of the Center, accept funds for 
use to defray the costs of the Center or to enhance the operation of 
the Center from any agency of the Federal Government, any State or 
local government, any foreign government, any foundation or other 
charitable organization (including any that is organized or operates 
under the laws of a foreign country), or any other private source in 
the United States or a foreign country.
    (2)(A) The Secretary may not accept a gift or donation under 
paragraph (1) if the acceptance of the gift or donation, as the case 
may be, would compromise or appear to compromise--
            (i) the ability of the Department of Defense, or any 
        employee of the Department, to carry out any responsibility or 
        duty of the Department in a fair and objective manner; or
            (ii) the integrity of any program of the Department of 
        Defense or of any official involved in such a program.
    (B) The Secretary shall prescribe written guidance setting forth 
the criteria to be used in determining whether or not the acceptance of 
a foreign gift or donation would have a result described in 
subparagraph (A).
    (3) Funds accepted by the Secretary under paragraph (1) shall be 
credited to appropriations available to the Department of Defense for 
the Center. Funds so credited shall be merged with the appropriations 
to which credited and shall be available for the Center for the same 
purposes and the same period as the appropriations with which merged.
    (e) Funding for Fiscal Year 1998.--Of the funds authorized to be 
appropriated under section 301, $5,000,000 shall be available for the 
Center for Excellence in Disaster Management and Humanitarian 
Assistance.

SEC. 363. ADMINISTRATIVE ACTIONS ADVERSELY AFFECTING MILITARY TRAINING 
              OR OTHER READINESS ACTIVITIES.

    (a) Congressional Notification.--Chapter 101 of title 10, United 
States Code, is amended by adding at the end the following:
``Sec. 2014. Administrative actions adversely affecting military 
              training or other readiness activities
    ``(a) Congressional Notification.--Whenever an official of an 
Executive agency takes or proposes to take an administrative action 
that, as determined by the Secretary of Defense in consultation with 
the Chairman of the Joint Chiefs of Staff, affects training or any 
other readiness activity in a manner that has or would have a 
significant adverse effect on the military readiness of any of the 
armed forces or a critical component thereof, the Secretary shall 
submit a written notification of the action and each significant 
adverse effect to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives and, at 
the same time, shall transmit a copy of the notification to the 
President and to the head of the Executive agency taking or proposing 
to take the administrative action.
    ``(b) Notification To Be Prompt.--(1) Subject to paragraph (2), the 
Secretary shall submit a written notification of an administrative 
action or proposed administrative action required by subsection (a) as 
soon as the Secretary becomes aware of the action or proposed action.
    ``(2) The Secretary shall prescribe policies and procedures to 
ensure that the Secretary receives information on an administrative 
action or proposed administrative action described in subsection (a) 
promptly after Department of Defense personnel receive notice of such 
an action or proposed action.
    ``(c) Effect of Notification on Administrative Action.--Upon the 
submission of a notification to committees of Congress under subsection 
(a), the administrative action covered by the notification shall, 
notwithstanding any other provision of law, cease to be effective or 
not become effective, as the case may be, with respect to the 
Department of Defense until the date that is 30 days after the date of 
the notification, except that the President may direct that the 
administrative action take effect with respect to the Department of 
Defense earlier than that date. The President may not delegate the 
authority provided in the preceding sentence.
    ``(d) Definitions.--In this section, the term `Executive agency' 
has the meaning given such term in section 105 of title 5 other than 
the General Accounting Office.''.
    (b) Clerical Amendment.--The table of sections of the beginning of 
such chapter is amended by adding at the end the following:

``2014. Administrative actions adversely affecting military training or 
                            other readiness activities.''.

SEC. 364. FINANCIAL ASSISTANCE TO SUPPORT ADDITIONAL DUTIES ASSIGNED TO 
              ARMY NATIONAL GUARD.

    (a) Authority.--Chapter 1 of title 32, United States Code, is 
amended by adding at the end the following:
``Sec. 113. Federal financial assistance for support of additional 
              duties assigned to the Army National Guard
    ``(a) Authority.--The Secretary of the Army may provide financial 
assistance to a State to support activities carried out by the Army 
National Guard of the State in the performance of duties that the 
Secretary has assigned, with the consent of the Chief of the National 
Guard Bureau, to the Army National Guard of the State. The Secretary 
shall determine the amount of the assistance that is appropriate for 
the purpose.
    ``(b) Covered Activities.--Activities supported under this section 
may include only those activities that are carried out by the Army 
National Guard in the performance of responsibilities of the Secretary 
under paragraphs (6), (10), and (11) of section 3013(b) of title 10.
    ``(c) Disbursement Through National Guard Bureau.--The Secretary 
shall disburse any contribution under this section through the Chief of 
the National Guard Bureau.
    ``(d) Availability of Funds.--Funds appropriated for the Army for a 
fiscal year are available for providing financial assistance under this 
section in support of activities carried out by the Army National Guard 
during that fiscal year.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following:

``113. Federal financial assistance for support of additional duties 
                            assigned to the Army National Guard.''.

SEC. 365. SALE OF EXCESS, OBSOLETE, OR UNSERVICEABLE AMMUNITION AND 
              AMMUNITION COMPONENTS.

    (a) Authority.--Chapter 443 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 4687. Sale of excess, obsolete, or unserviceable ammunition and 
              ammunition components
    ``(a) Authority To Sell Outside DoD.--The Secretary of the Army may 
sell ammunition or ammunition components that are excess, obsolete, or 
unserviceable and have not been demilitarized to a person eligible 
under subsection (c) if--
            ``(1) the purchaser enters into an agreement, in advance, 
        with the Secretary--
                    ``(A) to demilitarize the ammunition or components; 
                and
                    ``(B) to reclaim, recycle, or reuse the component 
                parts or materials; or
            ``(2) the Secretary, or an official of the Department of 
        the Army designated by the Secretary, approves the use of the 
        ammunition or components proposed by the purchaser as being 
        consistent with the public interest.
    ``(b) Method of Sale.--The Secretary shall use competitive 
procedures to sell ammunition and ammunition components under this 
section, except that the Secretary may negotiate a sale in any case in 
which the Secretary determines that there is only one potential buyer 
of the items being offered for sale.
    ``(c) Eligible Purchasers.--A purchaser of excess, obsolete, or 
unserviceable ammunition or ammunition components under this section 
shall be a licensed manufacturer (as defined in section 921(10) of 
title 18) that, as determined by the Secretary, has a capability to 
modify, reclaim, transport, and either store or sell the ammunition or 
ammunition components purchased.
    ``(d) Hold Harmless Agreement.--The Secretary shall require a 
purchaser of ammunition or ammunition components under this section to 
agree to hold harmless and indemnify the United States from any claim 
for damages for death, injury, or other loss resulting from a use of 
the ammunition or ammunition components, except in a case of willful 
misconduct or gross negligence of a representative of the United 
States.
    ``(e) Verification of Demilitarization.--The Secretary shall 
establish procedures for ensuring that a purchaser of ammunition or 
ammunition components under this section demilitarizes the ammunition 
or ammunition components in accordance with any agreement to do so 
under subsection (a)(1). The procedures shall include on-site 
verification of demilitarization activities.
    ``(f) Consideration.--The Secretary may accept ammunition, 
ammunition components, or ammunition demilitarization services as 
consideration for ammunition or ammunition components sold under this 
section. The fair market value of any such consideration shall be equal 
to or exceed the fair market value or, if higher, the sale price of the 
ammunition or ammunition components sold.
    ``(g) Disposition of Funds.--Amounts received as proceeds of sale 
of ammunition or ammunition components under this section in any fiscal 
year shall--
            ``(1) be credited to an appropriation available for such 
        fiscal year for the acquisition of ammunition or ammunition 
        components or to an appropriation available for such fiscal 
        year for the demilitarization of excess, obsolete, or 
        unserviceable ammunition or ammunition components; and
            ``(2) shall be available for the same period and for the 
        same purposes as the appropriation to which credited.
    ``(h) Relationship to Arms Export Control Act.--Nothing in this 
section shall be construed to affect the applicability of section 38 of 
the Arms Export Control Act (22 U.S.C. 2778) to sales of ammunition or 
ammunition components on the United States Munitions List.
    ``(i) Definitions.--In this section:
            ``(1) The term `excess, obsolete, or unserviceable', with 
        respect to ammunition or ammunition components, means that the 
        ammunition or ammunition components are no longer necessary for 
        war reserves or for support of training of the Army or 
        production of ammunition or ammunition components.
            ``(2) The term `demilitarize', with respect to ammunition 
        or ammunition components--
                    ``(A) means to destroy the military offensive or 
                defensive advantages inherent in the ammunition or 
                ammunition components; and
                    ``(B) includes any mutilation, scrapping, melting, 
                burning, or alteration that prevents the use of the 
                ammunition or ammunition components for the military 
                purposes for which the ammunition or ammunition 
components was designed or for a lethal purpose.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``4687. Sale of excess, obsolete, or unserviceable ammunition and 
                            ammunition components.''.

SEC. 366. INVENTORY MANAGEMENT.

    (a) Schedule for Implementation of Best Inventory Practices at 
Defense Logistics Agency.--(1) The Director of the Defense Logistics 
Agency shall develop and submit to Congress a schedule for implementing 
within the agency, for the supplies and equipment described in 
paragraph (2), inventory practices identified by the Director as being 
the best commercial inventory practices for such supplies and equipment 
consistent with military requirements. The schedule shall provide for 
the implementation of such practices to be completed not later than 
three years after date of the enactment of this Act.
    (2) The inventory practices shall apply to the acquisition and 
distribution of medical supplies, subsistence supplies, clothing and 
textiles, commercially available electronics, construction supplies, 
and industrial supplies.
    (b) Time for Submission of Schedule to Congress.--The schedule 
required by this section shall be submitted not later than 180 days 
after the date of the enactment of this Act.

SEC. 367. WARRANTY CLAIMS RECOVERY PILOT PROGRAM.

    (a) Pilot Program Required.--The Secretary of Defense may carry out 
a pilot program to use commercial sources of services to improve the 
collection of Department of Defense claims under aircraft engine 
warranties.
    (b) Contracts.--Exercising authority provided in section 3718 of 
title 31, United States Code, the Secretary of Defense may enter into 
contracts under the pilot program to provide for the following 
services:
            (1) Collection services.
            (2) Determination of amounts owed the Department of Defense 
        for repair of aircraft engines for conditions covered by 
        warranties.
            (3) Identification and location of the sources of 
        information that are relevant to collection of Department of 
        Defense claims under aircraft engine warranties, including 
        electronic data bases and document filing systems maintained by 
        the Department of Defense or by the manufacturers and suppliers 
        of the aircraft engines.
            (4) Services to define the elements necessary for an 
        effective training program to enhance and improve the 
        performance of Department of Defense personnel in collecting 
        and organizing documents and other information that are 
        necessary for efficient filing, processing, and collection of 
        Department of Defense claims under aircraft engine warranties.
    (c) Contractor Fee.--Under authority provided in section 3718(d) of 
title 31, United States Code, a contract entered into under the pilot 
program shall provide for the contractor to be paid, out of the amount 
recovered by the contractor under program, such percentages of the 
amount recovered as the Secretary of Defense determines appropriate.
    (d) Retention of Recovered Funds.--Subject to any obligation to pay 
a fee under subsection (c), any amount collected for the Department of 
Defense under the pilot program for a repair of an aircraft engine for 
a condition covered by a warranty shall be credited to an appropriation 
available for repair of aircraft engines for the fiscal year in which 
collected and shall be available for the same purposes and same period 
as the appropriation to which credited.
    (e) Regulations.--The Secretary of Defense shall prescribe 
regulations to carry out this section.
    (f) Termination of Authority.--The pilot program shall terminate at 
the end of September 30, 1999, and contracts entered into under this 
section shall terminate not later than that date.
    (g) Report.--Not later than January 1, 2000, the Secretary of 
Defense shall submit to Congress a report on the pilot program. The 
report shall include the following:
            (1) The number of contracts entered into under the program.
            (2) The extent to which the services provided under the 
        contracts resulted in financial benefits for the Federal 
        Government.
            (3) Any additional comments and recommendations that the 
        Secretary considers appropriate regarding use of commercial 
        sources of services for collection of Department of Defense 
        claims under aircraft engine warranties.

SEC. 368. ADJUSTMENT AND DIVERSIFICATION ASSISTANCE TO ENHANCE 
              INCREASED PERFORMANCE OF MILITARY FAMILY SUPPORT SERVICES 
              BY PRIVATE SECTOR SOURCES.

    Section 2391(b)(5) of title 10, United States Code, is amended by 
adding at the end the following:
    ``(C) The Secretary of Defense may also make grants, conclude 
cooperative agreements, and supplement other Federal funds in order to 
assist a State or local government to enhance that government's 
capabilities to support efforts of the Department of Defense to 
privatize, contract for, or diversify the performance of military 
family support services in cases in which the capability of the 
department to provide such services is adversely affected by an action 
described in paragraph (1).''.

              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, 1998, as follows:
            (1) The Army, 485,000, of whom not more than 80,300 shall 
        be officers.
            (2) The Navy, 390,802, of whom not more than 55,695 shall 
        be officers.
            (3) The Marine Corps, 174,000, of whom not more than 17,978 
        shall be officers.
            (4) The Air Force, 371,577, of whom not more than 72,732 
        shall be officers.

SEC. 402. PERMANENT END STRENGTH LEVELS TO SUPPORT 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) Fiscal Year 1998.--The Armed Forces are authorized strengths 
for Selected Reserve personnel of the reserve components as of 
September 30, 1998, as follows:
            (1) The Army National Guard of the United States, 361,516.
            (2) The Army Reserve, 208,000.
            (3) The Naval Reserve, 94,294.
            (4) The Marine Corps Reserve, 42,000.
            (5) The Air National Guard of the United States, 107,377.
            (6) The Air Force Reserve, 73,431.
            (7) The Coast Guard Reserve, 8,000.
    (b) Adjustments.--The end strengths prescribed by subsection (a) 
for the Selected Reserve of any reserve component for a fiscal year 
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, 
1998, 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, 22,310.
            (2) The Army Reserve, 11,500.
            (3) The Naval Reserve, 16,136.
            (4) The Marine Corps Reserve, 2,559.
            (5) The Air National Guard of the United States, 10,616.
            (6) The Air Force Reserve, 963.

              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 1998 a total of 
$69,264,962,000. The authorization in the preceding sentence supersedes 
any other authorization of appropriations (definite or indefinite) for 
such purpose for fiscal year 1998.

                   TITLE V--MILITARY PERSONNEL POLICY

                    Subtitle A--Personnel Management

SEC. 501. OFFICERS EXCLUDED FROM CONSIDERATION BY PROMOTION BOARD.

    (a) Active Component Officers.--Section 619(d) of title 10, United 
States Code, is amended by striking out paragraph (1) and inserting in 
lieu thereof the following:
            ``(1) an officer whose name is on--
                    ``(A) a promotion list for that grade as a result 
                of his selection for promotion to that grade by an 
                earlier selection board convened under that section; or
                    ``(B) a list of names of officers recommended for 
                promotion to that grade that is set forth in a report 
                of such a board, while the report is pending action 
                under section 618 of this title''.
    (b) Reserve Component Officers.--Section 14301(c) of such title is 
amended by striking out paragraph (1) and inserting in lieu thereof the 
following:
            ``(1) an officer whose name is on--
                    ``(A) a promotion list for that grade as a result 
                of recommendation for promotion to that grade by an 
                earlier selection board convened under that section or 
                section 14502 of this title or under chapter 36 of this 
                title; or
                    ``(B) a list of names of officers recommended for 
                promotion to that grade that is set forth in a report 
                of such a board, while the report is pending action 
                under section 618, 14110, or 14111 of this title;''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act and shall apply with 
respect to each selection board that is convened under section 611(a), 
14101(a), or 14502 of title 10, United States Code, on or after such 
date.

SEC. 502. INCREASE IN THE MAXIMUM NUMBER OF OFFICERS ALLOWED TO BE 
              FROCKED TO THE GRADE OF O-6.

    Paragraph (2) of section 777(d) of title 10, United States Code, is 
amended to read as follows:
    ``(2) The number of officers of an armed force on the active-duty 
list who are authorized as described in subsection (a) to wear the 
insignia for a grade to which a limitation on total number applies 
under section 523(a) of this title for a fiscal year may not exceed--
            ``(A) in the case of the grade of major, lieutenant 
        colonel, lieutenant commander, or commander, 1 percent of the 
        total number provided for the officers in that grade in that 
        armed force in the administration of the limitation under that 
        section for that fiscal year; and
            ``(B) in the case of the grade of colonel or captain, 2 
        percent of the total number provided for the officers in that 
        grade in that armed force in the administration of the 
        limitation under that section for that fiscal year.''.

SEC. 503. AVAILABILITY OF NAVY CHAPLAINS ON RETIRED LIST OR OF 
              RETIREMENT AGE TO SERVE AS CHIEF OR DEPUTY CHIEF OF 
              CHAPLAINS OF THE NAVY.

    (a) Eligibility of Officers on Retired List.--(1) Section 5142(b) 
of title 10, United States Code, is amended by striking out ``, who are 
not on the retired list,'' in the second sentence.
    (2) Section 5142a of such title is amended by striking out ``, who 
is not on the retired list,''.
    (b) Authority To Defer Retirement.--(1) Chapter 573 of title 10, 
United States Code, is amended by adding at the end the following new 
section:
``Sec. 6411. Chief and Deputy Chief of Chaplains: deferment of 
              retirement for age
    ``The Secretary of the Navy may defer the retirement under section 
1251(a) of this title of an officer of the Chaplain Corps if during the 
period of the deferment the officer will be serving as the Chief of 
Chaplains or the Deputy Chief of Chaplains. A deferment under this 
subsection may not extend beyond the first day of the month following 
the month in which the officer becomes 68 years of age.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following:

``6411. Chief and Deputy Chief of Chaplains: deferment of retirement 
                            for age.''.

SEC. 504. PERIOD OF RECALL SERVICE OF CERTAIN RETIREES.

    (a) Inapplicability of Limitation to Certain Officers.--Section 
688(e) of title 10, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(e)''; and
            (2) by adding at the end the following:
    ``(2) In the administration of paragraph (1), the following 
officers shall not be counted:
            ``(A) A chaplain who is assigned to duty as a chaplain for 
        the period of active duty to which ordered.
            ``(B) A health care professional (as characterized by the 
        Secretary concerned) who is assigned to duty as a health care 
        professional for the period of the active duty to which 
        ordered.
            ``(C) Any officer assigned to duty with the American Battle 
        Monuments Commission for the period of active duty to which 
        ordered.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on September 30, 1997, immediately after the amendment made 
by section 521(a) of Public Law 104-201 (110 Stat. 2515) takes effect.

           Subtitle B--Matters Relating to Reserve Components

SEC. 511. TERMINATION OF READY RESERVE MOBILIZATION INCOME INSURANCE 
              PROGRAM.

    (a) Termination.--(1) Chapter 1214 of title 10, United States Code, 
is amended by adding at the end the following;
``Sec. 12533. Termination of program authority
    ``(a) Benefits Not To Accrue.--No benefits accrue under the 
insurance program for active duty performed on or after the program 
termination date.
    ``(b) Service Not Insured.--The insurance program does not apply 
with respect to any order of a member of the Ready Reserve into covered 
service that becomes effective on or after the program termination 
date.
    ``(c) Cessation of Activities.--No person may be enrolled, and no 
premium may be collected, under the insurance program on or after the 
program termination date.
    ``(d) Program Termination Date.--For the purposes of this section, 
the term `program termination date' is the date of the enactment of the 
National Defense Authorization Act for Fiscal Year 1998.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following:

``12533. Termination of program authority.''.
    (b) Payment of Benefits.--The Secretary of Defense shall pay in 
full all benefits that have accrued to members of the Armed Forces 
under the Ready Reserve Mobilization Income Insurance Program before 
the date of the enactment of this Act. A refund of premiums to a 
beneficiary under subsection (c) may not reduce the benefits payable to 
the beneficiary under this subsection.
    (c) Refund of Premiums.--Not later than 180 days after the date of 
the enactment of this Act, the Secretary of Defense shall refund 
premiums paid under the Ready Reserve Mobilization Income Insurance 
Program to the persons who paid the premiums, as follows:
            (1) In the case of a person for whom no payment of benefits 
        has accrued under the program, all premiums.
            (2) In the case of a person who has accrued benefits under 
        the program, the premiums (including any portion of a premium) 
        that the person has paid for periods (including any portion of 
        a period) for which no benefits accrued to the person under the 
        program.
    (d) Study and Report.--Not later than June 1, 1998, the Secretary 
of Defense shall--
            (1) carry out a study to determine--
                    (A) the reasons for the fiscal deficiencies in the 
                Ready Reserve Mobilization Income Insurance Program 
                that make it necessary to appropriate $72,000,000 or 
                more to pay benefits (including benefits in arrears) 
                and other program costs; and
                    (B) whether there is a need for such a program; and
            (2) submit to Congress a report containing--
                    (A) the Secretary's determinations; and
                    (B) if the Secretary determines that there is a 
                need for a Ready Reserve mobilization income insurance 
                program, the Secretary's recommendations for improving 
                the program under chapter 1214 of title 10, United 
                States Code.

SEC. 512. DISCHARGE OR RETIREMENT OF RESERVE OFFICERS IN AN INACTIVE 
              STATUS.

    Section 12683(b)(1) of title 10, United States Code, is amended to 
read as follows:
            ``(1) to--
                    ``(A) a separation under section 12684, 14901, or 
                14907 of this title; or
                    ``(B) a separation of a reserve officer in an 
                inactive status in the Standby Reserve who is not 
                qualified for transfer to the Retired Reserve or, if 
                qualified, does not apply for transfer to the Retired 
                Reserve;''.

SEC. 513. RETENTION OF MILITARY TECHNICIANS IN GRADE OF BRIGADIER 
              GENERAL AFTER MANDATORY SEPARATION DATE.

    (a) Retention to Age 60.--Section 14702(a) of title 10, United 
States Code, is amended--
            (1) by striking out ``section 14506 or 14507'' and 
        inserting in lie thereof ``section 14506, 14507, or 14508(a)''; 
        and
            (2) by striking out ``or colonel'' and inserting in lieu 
        thereof ``colonel, or brigadier general''.
    (b) Relationship to Other Retention Authority.--Section 14508(c) of 
such title is amended by adding at the end the following: ``For the 
purposes of the preceding sentence, a retention of a reserve officer 
under section 14702 of this title shall not be construed as being a 
retention of that officer under this subsection.''.

SEC. 514. FEDERAL STATUS OF SERVICE BY NATIONAL GUARD MEMBERS AS HONOR 
              GUARDS AT FUNERALS OF VETERANS.

    (a) In General.--(1) Chapter 1 of title 32, United States Code, as 
amended by section 364, is further amended by adding at the end the 
following new section:
``Sec. 114. Honor guard functions at funerals for veterans
    ``Subject to such restrictions as may be prescribed by the 
Secretary concerned, the performance of honor guard functions by 
members of the National Guard at funerals for veterans of the armed 
forces may be treated by the Secretary concerned as a Federal function 
for which appropriated funds may be used. Any such performance of honor 
guard functions at funerals may not be considered to be a period of 
drill or training otherwise required.''.
    (2) The table of sections at the beginning of such chapter, as 
amended by section 364, is further amended by adding at the end the 
following new item:

``114. Honor guard functions at funerals for veterans.''.
    (b) Funding for Fiscal Year 1997.--Section 114 of title 32, United 
States Code, as added by subsection (a), does not authorize additional 
appropriations for fiscal year 1997. Any expenses of the National Guard 
that are incurred by reason of such section during fiscal year 1997 may 
be paid from existing appropriations available for the National Guard.

              Subtitle C--Education and Training Programs

SEC. 521. SERVICE ACADEMIES FOREIGN EXCHANGE STUDY PROGRAM.

    (a) United States Military Academy.--(1) Chapter 403 of title 10, 
United States Code, is amended by inserting after section 4344 the 
following new section:
``Sec. 4345. Exchange program with foreign military academies
    ``(a) Agreement Authorized.--The Secretary of the Army may enter 
into an agreement with an official of a foreign government authorized 
to act for that foreign government to carry out a military academy 
foreign exchange study program.
    ``(b) Terms of Agreement.--(1) An agreement with a foreign 
government under this section shall provide for the following:
            ``(A) That, on an exchange basis, the Secretary provide 
        students of military academies of the foreign government with 
        instruction at the Academy and the foreign government provide 
        cadets of the Academy with instruction at military academies of 
        the foreign government.
            ``(B) That the number of cadets of the Academy provided 
        instruction under the exchange program and the number of 
        students of military academies of the foreign government 
        provided instruction at the Academy under the exchange program 
        during an academic year be equal.
            ``(C) That the duration of the period of exchange study for 
        each student not exceed one academic semester (or an equivalent 
        academic period of a host foreign military academy).
    ``(2) An agreement with a foreign government under this section may 
provide for the Secretary to provide a student of a military academy of 
the foreign government with quarters, subsistence, transportation, 
clothing, health care, and other services during the period of the 
student's exchange study at the Academy to the same extent that the 
foreign government provides comparable support and services to cadets 
of the Academy during the period of the cadets' exchange study at a 
military academy of the foreign government.
    ``(c) Maximum Number.--Under the exchange program not more than a 
total of 24 cadets of the Academy may be receiving instruction at 
military academies of foreign governments under the program at any 
time, and not more than a total of 24 students of military academies of 
foreign governments may be receiving instruction at the Academy at any 
time.
    ``(d) Foreign Students Not To Receive Pay and Allowances.--A 
student of a foreign military academy provided instruction at the 
Academy under the exchange program is not, by virtue of participation 
in the exchange program, entitled to the pay, allowances, and 
emoluments of a cadet appointed from the United States.
    ``(e) Special Rules for Foreign Military Academy Students.--(1) 
Foreign military academy students receiving instruction at the Academy 
under the exchange program are in addition to--
            ``(A) the number of persons from foreign countries who are 
        receiving instruction at the Academy under section 4344 of this 
        title; and
            ``(B) the authorized strength of the cadets of the Academy 
        under section 4342 of this title.
    ``(2) Subsections (c) and (d) of section 9344 of this title apply 
to students of military academies of foreign governments while the 
students are participating in the exchange program under this section.
    ``(f) Regulations.--The Secretary shall prescribe regulations to 
carry out the military academy foreign exchange study program under 
this section. The regulations may, subject to subsection (e)(2), 
include eligibility criteria and methods for selection of students to 
participate in the exchange program.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 4344 the 
following new item:

``4345. Exchange program with foreign military academies.''.
    (b) United States Naval Academy.--(1) Chapter 603 of title 10, 
United States Code, is amended by inserting after section 6957 the 
following new section:
``Sec. 6957a. Exchange program with foreign military academies
    ``(a) Agreement Authorized.--The Secretary of the Navy may enter 
into an agreement with an official of a foreign government authorized 
to act for that foreign government to carry out a military academy 
foreign exchange study program.
    ``(b) Terms of Agreement.--(1) An agreement with a foreign 
government under this section shall provide for the following:
            ``(A) That, on an exchange basis, the Secretary provide 
        students of military academies of the foreign government with 
        instruction at the Naval Academy and the foreign government 
        provide midshipmen of the Academy with instruction at military 
        academies of the foreign government.
            ``(B) That the number of midshipmen of the Naval Academy 
        provided instruction under the exchange program and the number 
        of students of military academies of the foreign government 
        provided instruction at the Naval Academy under the exchange 
        program during an academic year be equal.
            ``(C) That the duration of the period of exchange study for 
        each student not exceed one academic semester (or an equivalent 
        academic period of a host foreign military academy).
    ``(2) An agreement with a foreign government under this section may 
provide for the Secretary to provide a student of a military academy of 
the foreign government with quarters, subsistence, transportation, 
clothing, health care, and other services during the period of the 
student's exchange study at the Naval Academy to the same extent that 
the foreign government provides comparable support and services to 
midshipmen of the Naval Academy during the period of the cadets' 
exchange study at a military academy of the foreign government.
    ``(c) Maximum Number.--Under the exchange program not more than a 
total of 24 midshipmen of the Naval Academy may be receiving 
instruction at military academies of foreign governments under the 
program at any time, and not more than a total of 24 students of 
military academies of foreign governments may be receiving instruction 
at the Naval Academy at any time.
    ``(d) Foreign Students Not To Receive Pay and Allowances.--A 
student of a foreign military academy provided instruction at the Naval 
Academy under the exchange program is not, by virtue of participation 
in the exchange program, entitled to the pay, allowances, and 
emoluments of a midshipman appointed from the United States.
    ``(e) Special Rules for Foreign Military Academy Students.--(1) 
Foreign military academy students receiving instruction at the Naval 
Academy under the exchange program are in addition to--
            ``(A) the number of persons from foreign countries who are 
        receiving instruction at the Naval Academy under section 6957 
        of this title; and
            ``(B) the authorized strength of the midshipmen under 
        section 6954 of this title.
    ``(2) Section 6957(c) of this title applies to students of military 
academies of foreign governments while the students are participating 
in the exchange program under this section.
    ``(f) Regulations.--The Secretary shall prescribe regulations to 
carry out the military academy foreign exchange study program under 
this section. The regulations may, subject to subsection (e)(2), 
include eligibility criteria and methods for selection of students to 
participate in the exchange program.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 6957 the 
following new item:

``6957a. Exchange program with foreign military academies.''.
    (c) United States Air Force Academy.--(1) Chapter 903 of title 10, 
United States Code, is amended by inserting after section 9344 the 
following new section:
``Sec. 9345. Exchange program with foreign military academies
    ``(a) Agreement Authorized.--The Secretary of the Air Force may 
enter into an agreement with an official of a foreign government 
authorized to act for that foreign government to carry out a military 
academy foreign exchange study program.
    ``(b) Terms of Agreement.--(1) An agreement with a foreign 
government under this section shall provide for the following:
            ``(A) That, on an exchange basis, the Secretary provide 
        students of military academies of the foreign government with 
        instruction at the Air Force Academy and the foreign government 
        provide Air Force Cadets of the Academy with instruction at 
        military academies of the foreign government.
            ``(B) That the number of Air Force Cadets of the Academy 
        provided instruction under the exchange program and the number 
        of students of military academies of the foreign government 
        provided instruction at the Academy under the exchange program 
        during an academic year be equal.
            ``(C) That the duration of the period of exchange study for 
        each student not exceed one academic semester (or an equivalent 
        academic period of a host foreign military academy).
    ``(2) An agreement with a foreign government under this section may 
provide for the Secretary to provide a student of a military academy of 
the foreign government with quarters, subsistence, transportation, 
clothing, health care, and other services during the period of the 
student's exchange study at the Academy to the same extent that the 
foreign government provides comparable support and services to Air 
Force Cadets of the Academy during the period of the cadets' exchange 
study at a military academy of the foreign government.
    ``(c) Maximum Number.--Under the exchange program not more than a 
total of 24 Air Force Cadets of the Academy may be receiving 
instruction at military academies of foreign governments under the 
program at any time, and not more than a total of 24 students of 
military academies of foreign governments may be receiving instruction 
at the Academy at any time.
    ``(d) Foreign Students Not To Receive Pay and Allowances.--A 
student of a foreign military academy provided instruction at the 
Academy under the exchange program is not, by virtue of participation 
in the exchange program, entitled to the pay, allowances, and 
emoluments of a cadet appointed from the United States.
    ``(e) Special Rules for Foreign Military Academy Students.--(1) 
Foreign military academy students receiving instruction at the Academy 
under the exchange program are in addition to--
            ``(A) the number of persons from foreign countries who are 
        receiving instruction at the Academy under section 9344 of this 
        title; and
            ``(B) the authorized strength of the Air Force Cadets of 
        the Academy under section 9342 of this title.
    ``(2) Subsections (c) and (d) of section 9344 of this title apply 
to students of military academies of foreign governments while the 
students are participating in the exchange program under this section.
    ``(f) Regulations.--The Secretary shall prescribe regulations to 
carry out the military academy foreign exchange study program under 
this section. The regulations may, subject to subsection (e)(2), 
include eligibility criteria and methods for selection of students to 
participate in the exchange program.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 9344 the 
following new item:

``9345. Exchange program with foreign military academies.''.

SEC. 522. PROGRAMS OF HIGHER EDUCATION OF THE COMMUNITY COLLEGE OF THE 
              AIR FORCE.

    (a) Programs for Instructors at Air Force Training Schools.--
Section 9315 of title 10, United States Code, is amended--
            (1) in subsection (b), by striking out ``(b) Subject to 
        subsection (c)'' and inserting in lieu thereof ``(b) Conferment 
        of Degree.--(1) Subject to paragraph (2)'';
            (2) by redesignating subsection (c) as paragraph (2) and in 
        such paragraph, as so redesignated--
                    (A) by striking out ``(1) the'' and inserting in 
                lieu thereof ``(A) the''; and
                    (B) by striking out ``(2) the'' and inserting in 
                lieu thereof ``(B) the'';
            (3) in subsection (a)--
                    (A) by inserting after ``(a)'' the following: 
                ``Establishment and Mission.--''; and
                    (B) in paragraph (1), by striking out ``Air Force'' 
                and inserting in lieu thereof ``armed forces described 
                in subsection (b)''; and
            (4) by inserting after subsection (a) the following new 
        subsection (b):
    ``(b) Members Eligible for Programs.--Subject to such other 
eligibility requirements as the Secretary concerned may prescribe, the 
following members of the armed forces are eligible to participate in 
programs of higher education referred to in subsection (a)(1):
            ``(1) An enlisted member of the Army, Navy, or Air Force 
        who is serving as an instructor at an Air Force training 
        school.
            ``(2) Any other enlisted member of the Air Force.''.
    (b) Retroactive Applicability.--Subsection (b) of section 9315 of 
such title, as added by subsection (a)(4), shall apply with respect to 
programs of higher education of the Community College of the Air Force 
as of March 31, 1996.

SEC. 523. PRESERVATION OF ENTITLEMENT TO EDUCATIONAL ASSISTANCE OF 
              MEMBERS OF THE SELECTED RESERVE SERVING ON ACTIVE DUTY IN 
              SUPPORT OF A CONTINGENCY OPERATION.

    (a) Preservation of Educational Assistance.--Section 
16131(c)(3)(B)(i) of title 10, United States Code, is amended by 
striking out ``, in connection with the Persian Gulf War,''.
    (b) Extension of 10-Year Period of Availability.--Section 
16133(b)(4) of such title is amended--
            (1) by striking out ``(A)'';
            (2) by striking out ``, during the Persian Gulf War,'';
            (3) by redesignating clauses (i) and (ii) as subparagraphs 
        (A) and (B), respectively; and
            (4) by striking out ``(B) For the purposes'' and all that 
        follows through ``title 38.''.

SEC. 524. REPEAL OF CERTAIN STAFFING AND SAFETY REQUIREMENTS FOR THE 
              ARMY RANGER TRAINING BRIGADE.

    (a) In General.--(1) Section 4303 of title 10, United States Code, 
is repealed.
    (2) The table of sections at the beginning of chapter 401 of such 
title is amended by striking out the item relating to section 4303.
    (b) Repeal of Related Provision.--Section 562 of Public Law 104-106 
(110 Stat. 323) is repealed.

                   Subtitle D--Decorations and Awards

SEC. 531. CLARIFICATION OF ELIGIBILITY OF MEMBERS OF READY RESERVE FOR 
              AWARD OF SERVICE MEDAL FOR HEROISM.

    (a) Soldier's Medal.--Section 3750(a) of title 10, United States 
Code, is amended--
            (1) by inserting ``(1)'' after ``(a)''; and
            (2) by adding at the end the following new paragraph:
    ``(2) The authority in paragraph (1) includes authority to award 
the medal to a member of the Ready Reserve who was not in a duty status 
defined in section 101(d) of this title when the member distinguished 
himself by heroism.''.
    (b) Navy and Marine Corps Medal.--Section 6246 of such title is 
amended--
            (1) by designating the text of the section as subsection 
        (a); and
            (2) by adding at the end the following new subsection:
    ``(b) The authority in subsection (a) includes authority to award 
the medal to a member of the Ready Reserve who was not in a duty status 
defined in section 101(d) of this title when the member distinguished 
himself by heroism.''.
    (c) Airman's Medal.--Section 8750(a) of such title is amended--
            (1) by inserting ``(1)'' after ``(a)''; and
            (2) by adding at the end the following new paragraph:
    ``(2) The authority in paragraph (1) includes authority to award 
the medal to a member of the Ready Reserve who was not in a duty status 
defined in section 101(d) of this title when the member distinguished 
himself by heroism.''.

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

    (a) Waiver of Time Limitation.--Any limitation established by law 
or policy for the time within which a recommendation for the award of a 
military decoration or award must be submitted shall not apply in the 
case of awards of decorations described in subsections (b), (c), and 
(d), 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) Silver Star Medal.--Subsection (a) applies to the award of the 
Silver Star Medal as follows:
            (1) To Joseph M. Moll, Jr. of Milford, New Jersey, for 
        service during World War II.
            (2) To Philip Yolinsky of Hollywood, Florida, for service 
        during the Korean Conflict.
    (c) Navy and Marine Corps Medal.--Subsection (a) applies to the 
award of the Navy and Marine Corps Medal to Gary A. Gruenwald of 
Damascus, Maryland, for service in Tunisia in October 1977.
    (d) Distinguished Flying Cross.--Subsection (a) applies to awards 
of the Distinguished Flying Cross for service during World War II or 
Korea (including multiple awards to the same individual) in the case of 
each individual concerning whom the Secretary of the Navy (or an 
officer of the Navy acting on behalf of the Secretary) submitted to the 
Committee on National Security of the House of Representatives and the 
Committee on Armed Services of the Senate, before the date of the 
enactment of this Act, a notice as provided in section 1130(b) of title 
10, United States Code, that the award of the Distinguished Flying 
Cross to that individual is warranted and that a waiver of time 
restrictions prescribed by law for recommendation for such award is 
recommended.

SEC. 533. ONE-YEAR EXTENSION OF PERIOD FOR RECEIPT OF RECOMMENDATIONS 
              FOR DECORATIONS AND AWARDS FOR CERTAIN MILITARY 
              INTELLIGENCE PERSONNEL.

    Section 523(b)(1) of the National Defense Authorization Act for 
Fiscal Year 1996 (Public Law 104-106; 110 Stat. 311; 10 U.S.C. 1130 
note) is amended by striking out ``during the one-year period beginning 
on the date of the enactment of this Act'' and inserting in lieu 
thereof ``after February 9, 1996, and before February 10, 1998''.

SEC. 534. ELIGIBILITY OF CERTAIN WORLD WAR II MILITARY ORGANIZATIONS 
              FOR AWARD OF UNIT DECORATIONS.

    (a) Authority.--A unit decoration may be awarded for any unit or 
other organization of the Armed Forces of the United States, such as 
the Military Intelligence Service of the Army, that (1) supported the 
planning or execution of combat operations during World War II 
primarily through unit personnel who were attached to other units of 
the Armed Forces or of other allied armed forces, and (2) is not 
otherwise eligible for award of the decoration by reason of not usually 
having been deployed as a unit in support of such operations.
    (b) Time for Submission of Recommendation.--Any recommendation for 
award of a unit decoration under subsection (a) shall be submitted to 
the Secretary concerned (as defined in section 101(a)(9) of title 10, 
United States Code), or to such other official as the Secretary 
concerned may designate, not later than 2 years after the date of the 
enactment of this Act.

              Subtitle E--Military Personnel Voting Rights

SEC. 541. SHORT TITLE.

    This subtitle may be cited as the ``Military Voting Rights Act of 
1997''.

SEC. 542. 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.''.

SEC. 543. STATE RESPONSIBILITY TO GUARANTEE MILITARY VOTING RIGHTS.

    (a) Registration and Balloting.--Section 102 of the Uniformed and 
Overseas Absentee Voting Act (42 U.S.C. 1973ff-1) is amended--
            (1) by inserting ``(a) Elections for Federal Offices.--'' 
        before ``Each State shall--''; and
            (2) 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.''.
    (b) Conforming Amendment.--The heading for title I of such Act is 
amended by striking out ``FOR FEDERAL OFFICE''.

                       Subtitle F--Other Matters

SEC. 551. SENSE OF CONGRESS REGARDING STUDY OF MATTERS RELATING TO 
              GENDER EQUITY IN THE ARMED FORCES.

    (a) Findings.--Congress makes the following findings:
            (1) In the all-volunteer force, women play an integral role 
        in the Armed Forces.
            (2) With increasing numbers of women in the Armed Forces, 
        questions arise concerning inequalities, and perceived 
        inequalities, between the treatment of men and women in the 
        Armed Forces.
    (b) Sense of Congress.--It is the sense of Congress that the 
Comptroller General should--
            (1) conduct a study on any inequality, or perception of 
        inequality, in the treatment of men and women in the Armed 
        Forces that arises out of the statutes and regulations 
        governing the Armed Forces; and
            (2) submit to Congress a report on the study not later than 
        one year after the date of enactment of this Act.

SEC. 552. COMMISSION ON GENDER INTEGRATION IN THE MILITARY.

    (a) Establishment.--There is established a commission to be known 
as the Commission on Gender Integration in the Military.
    (b) Membership.--
            (1) In general.--The commission shall be composed of 11 
        members appointed from among private citizens of the United 
        States who have appropriate and diverse experiences, expertise, 
        and historical perspectives on training, organizational, legal, 
        management, military, and gender integration matters.
            (2) Specific qualifications.--Of the 11 members, at least 
        two shall be appointed from among persons who have superior 
academic credentials, at least four shall be appointed from among 
former members and retired members of the Armed Forces, and at least 
two shall be appointed from among members of the reserve components of 
the Armed Forces.
    (c) Appointments.--
            (1) Authority.--The President pro tempore of the Senate 
        shall appoint the members in consultation with the chairman of 
        the Committee on Armed Services, who shall recommend six 
        persons for appointment, and the ranking member of the 
        Committee on Armed Services, who shall recommend five persons 
        for appointment. The appointments shall be made not later than 
        45 days after the date of the enactment of this Act.
            (2) Period of appointment.--Members shall be appointed for 
        the life of the commission.
            (3) Vacancies.--A vacancy in the membership shall not 
        affect the commission's powers, but shall be filled in the same 
        manner as the original appointment.
    (d) Meetings.--
            (1) Initial meeting.--The Commission shall hold its first 
        meeting not later than 30 days after the date on which all 
        members have been appointed.
            (2) When called.--The Commission shall meet upon the call 
        of the chairman.
            (3) Quorum.--A majority of the members of the Commission 
        shall constitute a quorum, but a lesser number may hold 
        meetings.
    (e) Chairman and Vice Chairman.--The Commission shall select a 
chairman and a vice chairman from among its members.
    (f) Authority of Individuals To Act for Commission.--Any member or 
agent of the Commission may, if authorized, by the Commission, take any 
action which the Commission is authorized to take under this title.
    (g) Duties.--The Commission shall--
            (1) review the current practices of the Armed Forces, 
        relevant studies, and private sector training concepts 
        pertaining to gender-integrated training;
            (2) review the laws, regulations, policies, directives, and 
        practices that govern personal relationships between men and 
        women in the armed forces and personal relationships between 
        members of the armed forces and non-military personnel of the 
        opposite sex;
            (3) assess the extent to which the laws, regulations, 
        policies, and directives have been applied consistently 
        throughout the Armed Forces without regard to the armed force, 
        grade, or rank of the individuals involved;
            (4) provide an independent assessment of the reports of the 
        independent panel, the Department of Defense task force, and 
        the review of existing guidance on adultery announced by the 
        Secretary of Defense; and
            (5) examine the experiences, policies, and practices of the 
        armed forces of other industrialized nations regarding gender-
        integrated training.
    (h) Reports.--
            (1) Initial report.--Not later than April 15, 1998, the 
        Commission shall submit to the Committee on Armed Services of 
        the Senate an initial report setting forth the activities, 
        findings, and recommendations of the Commission. The report 
        shall include any recommendations for congressional action and 
        administrative action that the Commission considers 
        appropriate.
            (2) Final report.--Not later than September 16, 1998, the 
        Commission shall submit to the Committee on Armed Services a 
        final report setting forth the activities, findings, and 
        recommendations of the Commission, including any 
        recommendations for congressional action and administrative 
        action that the Commission considers appropriate.
    (i) Powers.--
            (1) Hearings, et cetera.--The Commission may hold such 
        hearings, sit and act at such times and places, take such 
        testimony, and receive such evidence as the Commission 
        considers advisable to carry out its duties.
            (2) Information from federal agencies.--The Commission may 
        secure directly from the Department of Defense and any other 
        department or agency of the Federal Government such information 
        as the Commission considers necessary to carry out its duties. 
        Upon the request of the chairman of the Commission, the head of 
        a department or agency shall furnish the requested information 
        expeditiously to the Commission.
            (3) Postal services.-- The Commission may use the United 
        States mails in the same manner and under the same conditions 
        as other departments and agencies of the Federal Government.
    (j) Administrative Support.--The Secretary of Defense shall, upon 
the request of the chairman of the Commission, furnish the Commission 
any administrative and support services that the Commission may 
require.
    (k) Commission Personnel Matters.--
            (1) Compensation of members.--Each member of the Commission 
        may 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, United States 
        Code, for each day (including travel time) during which such 
        member is engaged in performing the duties of the Commission.
            (2) Travel on military conveyances.--Members and personnel 
        of the Commission may travel on aircraft, vehicles, or other 
        conveyances of the Armed Forces when travel is necessary in the 
        performance of a duty of the Commission except when the cost of 
        commercial transportation is less expensive.
            (3) Travel expenses.--The members of the Commission may be 
        allowed travel expenses, including per diem in lieu of 
        subsistence, at rates authorized for employees of agencies 
        under subchapter I of chapter 57 of title 5, United States 
        Code, while away from their homes or regular places of business 
        in the performance of services for the Commission.
            (4) Staff.--The chairman of the Commission may, without 
        regard to civil service laws and regulations, appoint and 
        terminate an executive director and up to three additional 
        staff members as necessary to enable the Commission to perform 
        its duties. The chairman of the Commission may fix the 
        compensation of the executive 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 may not exceed the rate payable for 
        level V of the executive schedule under section 5316 of such 
        title.
            (5) Detail of government employees.--Upon the request of 
        the chairman of the Commission, the head of any department or 
        agency of the Federal Government may detail, without 
        reimbursement, any personnel of the department or agency to the 
        Commission to assist in carrying out its duties. A detail of an 
        employee shall be without interruption or loss of civil service 
        status or privilege.
            (6) Temporary and intermittent services.--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 that do not exceed the daily equivalent of the 
        annual rate of basic pay prescribed for level IV of the 
        Executive Schedule under section 5315 of such title.
    (l) Termination.--The Commission shall terminate 90 days after the 
date on which it submits the final report under subsection (h)(2).
    (m) Funding.--
            (1) From department of defense appropriations.--Upon the 
        request of the chairman of the Commission, the Secretary of 
        Defense shall make available to the Commission, out of funds 
        appropriated for the Department of Defense, such amounts as the 
        Commission may require to carry out its duties.
            (2) Period of availability.--Funds made available to the 
        Commission shall remain available, without fiscal year 
        limitation, until the date on which the Commission terminates.

SEC. 553. SEXUAL HARASSMENT INVESTIGATIONS AND REPORTS.

    (a) Investigations.--Any commanding officer or officer in charge of 
a unit, vessel, facility, or area who receives from a member of the 
command or a civilian employee under the supervision of the officer a 
complaint alleging sexual harassment by a member of the Armed Forces or 
a civilian employee of the Department of Defense shall, to the extent 
practicable--
            (1) within 72 hours after receipt of the complaint--
                    (A) forward the complaint or a detailed description 
                of the allegation to the next superior officer in the 
                chain of command who is authorized to convene a general 
                court-martial;
                    (B) commence, or cause the commencement of, an 
                investigation of the complaint; and
                    (C) advise the complainant of the commencement of 
                the investigation;
            (2) ensure that the investigation of the complaint is 
        completed not later than 14 days after the investigation is 
        commenced; and
            (3) either--
                    (A) submit a final report on the results of the 
                investigation, including any action taken as a result 
                of the investigation, to the next superior officer 
                referred to in paragraph (1) within 20 days after the 
                investigation is commenced; or
                    (B) submit a report on the progress made in 
                completing the investigation to the next superior 
                officer referred to in paragraph (1) within 20 days 
                after the investigation is commenced and every 14 days 
                thereafter until the investigation is completed and, 
                upon completion of the investigation, then submit a 
                final report on the results of the investigation, 
                including any action taken as a result of the 
                investigation, to that next superior officer.
    (b) Reports.--(1) Not later than January 1 of each of 1998 and 
1999, each officer receiving any complaint forwarded in accordance with 
subsection (a) during the preceding year shall submit to the Secretary 
of the military department concerned a report on all such complaints 
and the investigations of such complaints (including the results of the 
investigations, in cases of investigations completed during such 
preceding year).
    (2)(A) Not later than March 1 of each of 1998 and 1999, each 
Secretary receiving a report under paragraph (1) for a year shall 
submit to the Secretary of Defense a report on all such reports so 
received.
    (B) Not later than the April 1 following receipt of a report for a 
year under subparagraph (A), the Secretary of Defense shall transmit to 
Congress all such reports received for the year under subparagraph (A) 
together with the Secretary's assessment of each such report.
    (c) Sexual Harassment Defined.--In this section, the term ``sexual 
harassment'' means--
            (1) a form of sex discrimination that--
                    (A) involves unwelcome sexual advances, requests 
                for sexual favors, and other verbal or physical conduct 
                of a sexual nature when--
                            (i) submission to such conduct is made 
                        either explicitly or implicitly a term or 
                        condition of a person's job, pay, or career;
                            (ii) submission to or rejection of such 
                        conduct by a person is used as a basis for 
                        career or employment decisions affecting that 
                        person; or
                            (iii) such conduct has the purpose or 
                        effect of unreasonably interfering with an 
                        individual's work performance or creates an 
                        intimidating, hostile, or offensive working 
                        environment; and
                    (B) is so severe or pervasive that a reasonable 
                person would perceive, and the victim does perceive, 
                the work environment as hostile or offensive;
            (2) any use or condonation, by any person in a supervisory 
        or command position, of any form of sexual behavior to control, 
        influence, or affect the career, pay, or job of a member of the 
        Armed Forces or a civilian employee of the Department of 
        Defense; and
            (3) any deliberate or repeated unwelcome verbal comment, 
        gesture, or physical contact of a sexual nature in the 
        workplace by any member of the Armed Forces or civilian 
        employee of the Department of Defense.

SEC. 554. REQUIREMENT FOR EXEMPLARY CONDUCT BY COMMANDING OFFICERS AND 
              OTHER AUTHORITIES.

    (a) Army.--(1) Chapter 345 of title 10, United States Code, is 
amended by adding at the end:
``Sec. 3583. Requirement of exemplary conduct
    ``All commanding officers and others in authority in the Army are 
required to show in themselves a good example of virtue, honor, 
patriotism, and subordination; to be vigilant in inspecting the conduct 
of all persons who are placed under their command; to guard against and 
suppress all dissolute and immoral practices, and to correct, according 
to the laws and regulations of the Army, all persons who are guilty of 
them; and to take all necessary and proper measures, under the laws, 
regulations, and customs of the Army, to promote and safeguard the 
morale, the physical well-being, and the general welfare of the 
officers and enlisted persons under their command or charge.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following:

``3583. Requirement of exemplary conduct.''.
    (b) Air Force.--(1) Chapter 845 of title 10, United States Code, is 
amended by adding at the end the following:
``Sec. 8583. Requirement of exemplary conduct
    ``All commanding officers and others in authority in the Air Force 
are required to show in themselves a good example of virtue, honor, 
patriotism, and subordination; to be vigilant in inspecting the conduct 
of all persons who are placed under their command; to guard against and 
suppress all dissolute and immoral practices, and to correct, according 
to the laws and regulations of the Air Force, all persons who are 
guilty of them; and to take all necessary and proper measures, under 
the laws, regulations, and customs of the Air Force, to promote and 
safeguard the morale, the physical well-being, and the general welfare 
of the officers and enlisted persons under their command or charge.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following:

``8583. Requirement of exemplary conduct.''.

SEC. 555. PARTICIPATION OF DEPARTMENT OF DEFENSE PERSONNEL IN 
              MANAGEMENT OF NON-FEDERAL ENTITIES.

    (a) Authority.--Chapter 53 of title 10, United States Code, is 
amended by inserting after section 1060a the following new section:
``Sec. 1060b. Participation in management of non-Federal entities: 
              members of the armed forces; civilian employees
    ``(a) Authority To Permit Participation.--The Secretary concerned 
may authorize a member of the armed forces, a civilian officer or 
employee of the Department of Defense, or a civilian officer or 
civilian employee of the Coast Guard--
            ``(1) to serve as a director, officer, or trustee of a 
        military welfare society or other entity described in 
        subsection (c); or
            ``(2) to participate in any other capacity in the 
        management of such a society or entity.
    ``(b) Compensation Prohibited.--Compensation may not be accepted 
for service or participation authorized under subsection (a).
    ``(c) Covered Entities.--This section applies with respect to the 
following entities:
            ``(1) Military welfare societies.--The following military 
        welfare societies:
                    ``(A) The Army Emergency Relief.
                    ``(B) The Air Force Aid Society.
                    ``(C) The Navy-Marine Corps Relief Society.
                    ``(D) The Coast Guard Mutual Assistance.
            ``(2) Other entities.--Each of the following additional 
        entities that is not operated for profit:
                    ``(A) Any athletic conference, or other entity, 
                that regulates and supports the athletics programs of 
                the United States Military Academy, the United States 
                Naval Academy, the United States Air Force Academy, or 
                the United States Coast Guard Academy.
                    ``(B) Any entity that regulates international 
                athletic competitions.
                    ``(C) Any regional educational accrediting agency, 
                or other entity, that accredits the academies referred 
                to in subparagraph (A) or accredits any other school of 
                the armed forces.
                    ``(D) Any health care association, professional 
                society, or other entity that regulates and supports 
                standards and policies applicable to the provision of 
                health care by or for the Department of Defense.
    ``(d) Secretary of Defense as Secretary Concerned.--In this 
section, the term `Secretary concerned' includes the Secretary of 
Defense with respect to civilian officers and employees of the 
Department of Defense who are not officers or employees of a military 
department.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
1060a the following new item:

``1060b. Participation in management of non-Federal entities: members 
                            of the armed forces; civilian employees.''.

SEC. 556. TECHNICAL CORRECTION TO CROSS REFERENCE IN ROPMA PROVISION 
              RELATING TO POSITION VACANCY PROMOTION.

    Section 14317(d) of title 10, United States Code, is amended by 
striking out ``section 14314'' in the first sentence and inserting in 
lieu thereof ``section 14315''.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                            Subtitle A--Pay

SEC. 601. MILITARY PAY RAISE FOR FISCAL YEAR 1998.

    (a) Waiver of Section 1009 Adjustment.--Any adjustment required by 
section 1009 of title 37, United States Code, in elements of 
compensation of members of the uniformed services to become effective 
during fiscal year 1998 shall not be made.
    (b) Increase in Basic Pay.--Effective on January 1, 1998, the rates 
of basic pay of members of the uniformed services are increased by 2.8 
percent.

         Subtitle B--Subsistence, Housing, and Other Allowances

           PART I--REFORM OF BASIC ALLOWANCE FOR SUBSISTENCE

SEC. 611. REVISED ENTITLEMENT AND RATES.

    (a) Universal Entitlement to BAS Except During Basic Training.--
            (1) In general.--Section 402 of title 37, United States 
        Code, is amended by striking out subsections (b) and (c).
            (2) Exception.--Subsection (a) of such section is amended 
        by adding at the end the following: ``However, an enlisted 
        member is not entitled to the basic allowance for subsistence 
        during basic training.''.
    (b) Rates Based on Food Costs.--Such section, as amended by 
subsection (a), is further amended by inserting after subsection (a) 
the following new subsection (b):
    ``(b) Rates of BAS.--(1) The monthly rate of basic allowance for 
subsistence in effect for an enlisted member for a year (beginning on 
January 1 of the year) shall be the amount that is halfway between the 
following amounts that are determined by the Secretary of Agriculture 
as of October 1 of the preceding year:
            ``(A) The amount equal to the monthly cost of a moderate-
        cost food plan for a male in the United States who is between 
        20 and 50 years of age.
            ``(B) The amount equal to the monthly cost of a liberal 
        food plan for a male in the United States who is between 20 and 
        50 years of age.
    ``(2) The monthly rate of basic allowance for subsistence in effect 
for an officer for a year (beginning on January 1 of the year) shall be 
the amount equal to the monthly rate of basic allowance for subsistence 
in effect for officers for the preceding year, increased by the same 
percentage by which the rate of basic allowance for subsistence for 
enlisted members for the preceding year is increased effective on such 
January 1.''.
    (c) Continuation of Advance Payment Authority.--Such section is 
further amended by inserting after subsection (b), as added by 
subsection (b) of this section, the following new subsection (c):
    ``(c) Advance Payment.--The allowance to an enlisted member may be 
paid in advance for a period of not more than three months.''.
    (d) Flexibility To Manage Demand for Dining and Messing Services.--
Such section is further amended by striking out subsection (e) and 
inserting in lieu thereof the following new subsection (e):
    ``(e) Policies on Use of Dining and Messing Facilities.--The 
Secretary of Defense, in consultation with the Secretaries concerned, 
shall prescribe policies regarding use of dining and field messing 
facilities of the uniformed services.''.
    (e) Regulations.--Such section is further amended by adding after 
subsection (e), as added by subsection (d) of this section, the 
following:
    ``(f) Regulations.--(1) The Secretary of Defense shall prescribe 
regulations for the administration of this section. Before prescribing 
the regulations, the Secretary shall consult with each Secretary 
concerned.
    ``(2) The regulations shall include the rates of basic allowance 
for subsistence.''.
    (f) Stylistic and Conforming Amendments.--
            (1) Subsection headings.--Such section is amended--
                    (A) in subsection (a), by inserting 
                ``Entitlement.--'' after ``(a)''; and
                    (B) in subsection (d), by inserting ``Coast 
                Guard.--'' after ``(d)''.
            (2) Travel status exception to entitlement.--Section 404 of 
        title 37, United States Code, is amended--
                    (A) by striking out subsection (g); and
                    (B) by redesignating subsections (h), (i), (j), and 
                (k) as subsections (g), (h), (i), and (j), 
                respectively.

SEC. 612. TRANSITIONAL BASIC ALLOWANCE FOR SUBSISTENCE.

    (a) BAS Transition Period.--For the purposes of this section, the 
BAS transition period is the period beginning on the effective date of 
this part and ending on the date that this section ceases to be 
effective under section 613(b).
    (b) Transitional Authority.--Notwithstanding section 402 of title 
37, United States Code (as amended by section 611), during the BAS 
transition period--
            (1) the basic allowance for subsistence shall not be paid 
        under that section for that period;
            (2) a member of the uniformed services is entitled to the 
        basic allowance for subsistence only as provided in subsection 
        (c);
            (3) an enlisted member of the uniformed services may be 
        paid a partial basic allowance for subsistence as provided in 
        subsection (d); and
            (4) the rates of the basic allowance for subsistence are 
        those determined under subsection (e).
    (c) Transitional Entitlement to BAS.--
            (1) Enlisted members.--
                    (A) Types of entitlement.--An enlisted member is 
                entitled to the basic allowance for subsistence, on a 
                daily basis, of one of the following types--
                            (i) when rations in kind are not available;
                            (ii) when permission to mess separately is 
                        granted; and
                            (iii) when assigned to duty under emergency 
                        conditions where no messing facilities of the 
                        United States are available.
                    (B) Other entitlement circumstances.--An enlisted 
                member is entitled to the allowance while on an 
                authorized leave of absence, while confined in a 
                hospital, or while performing travel under orders away 
                from the member's designated post of duty other than 
                field duty or sea duty (as defined in regulations 
                prescribed by the Secretary of Defense). For purposes 
                of the preceding sentence, a member shall not be 
                considered to be performing travel under orders away 
                from his designated post of duty if such member--
                            (i) is an enlisted member serving his first 
                        tour of active duty;
                            (ii) has not actually reported to a 
                        permanent duty station pursuant to orders 
                        directing such assignment; and
                            (iii) is not actually traveling between 
                        stations pursuant to orders directing a change 
                        of station.
                    (C) Advance payment.--The allowance to an enlisted 
                member, when authorized, may be paid in advance for a 
                period of not more than three months.
            (2) Officers.--An officer of a uniformed service who is 
        entitled to basic pay is, at all times, entitled to the basic 
        allowances for subsistence. An aviation cadet of the Navy, Air 
        Force, Marine Corps, or Coast Guard is entitled to the same 
        basic allowance for subsistence as is provided for an officer 
        of the Navy, Air Force, Marine Corps, or Coast Guard, 
        respectively.
    (d) Transitional Authority for Partial BAS.--
            (1) Enlisted members furnished subsistence in kind.--The 
        Secretary of Defense may provide in regulations for an enlisted 
        member of a uniformed service to be paid a partial basic 
        allowance for subsistence when--
                    (A) rations in kind are available to the member;
                    (B) the member is not granted permission to mess 
                separately; or
                    (C) the member is assigned to duty under emergency 
                conditions where messing facilities of the United 
                States are available.
            (2) Monthly payment.--Any partial basic allowance for 
        subsistence authorized under paragraph (1) shall be paid on a 
        monthly basis.
    (e) Transitional Rates.--
            (1) Full bas for officers.--The rate of basic allowance for 
        subsistence that is payable to officers of the uniformed 
        services for a year shall be the amount that is equal to 101 
        percent of the rate of basic allowance for subsistence that was 
        payable to officers of the uniformed services for the preceding 
        year.
            (2) Full bas for enlisted members.--The rate of basic 
        allowance for subsistence that is payable to an enlisted member 
        of the uniformed services for a year shall be the higher of--
                    (A) the amount that is equal to 101 percent of the 
                rate of basic allowance for subsistence that was in 
                effect for similarly situated enlisted members of the 
                uniformed services for the preceding year; or
                    (B) the daily equivalent of what, except for 
                subsection (b), would otherwise be the monthly rate of 
                basic allowance for subsistence for enlisted members 
                under section 402(b)(1) of title 37, United States Code 
(as added by section 611(b)).
            (3) Partial bas for enlisted members.--The rate of any 
        partial basic allowance for subsistence paid under subsection 
        (d) for a member for a year shall be equal to the lower of--
                    (A) the amount equal to the excess, if any, of--
                            (i) the amount equal to the monthly 
                        equivalent of the rate of basic allowance for 
                        subsistence that was in effect for the 
                        preceding year for enlisted members of the 
                        uniformed services above grade E-1 (when 
                        permission to mess separately is granted), 
                        increased by the same percent by which the 
                        rates of basic pay for members of the uniformed 
                        services were increased for the year over those 
                        in effect for such preceding year, over
                            (ii) the amount equal to 101 percent of the 
                        monthly equivalent of the rate of basic 
                        allowance for subsistence that was in effect 
                        for the previous year for enlisted members of 
                        the uniformed services above grade E-1 (when 
                        permission to mess separately is granted); or
                    (B) the amount equal to the excess of--
                            (i) the amount that, except for subsection 
                        (b), would otherwise be the monthly rate of 
                        basic allowance for subsistence for enlisted 
                        members under section 402(b)(1) of title 37, 
                        United States Code, over
                            (ii) the amount equal to the monthly 
                        equivalent of the value of a daily ration, as 
                        determined by the Under Secretary of Defense 
                        (Comptroller) as of October 1 of the preceding 
                        year.

SEC. 613. EFFECTIVE DATE AND TERMINATION OF TRANSITIONAL AUTHORITY.

    (a) Effective Date.--This part and the amendments made by section 
611 shall take effect on January 1, 1998.
    (b) Termination of Transitional Provisions.--Section 612 shall 
cease to be effective on the first day of the month immediately 
following the first month for which the monthly equivalent of the rate 
of basic allowance for subsistence payable to enlisted members of the 
uniformed services (when permission to mess separately is granted), as 
determined under subsection (e)(2) of such section, equals or exceeds 
the amount that, except for subsection (b) of such section, would 
otherwise be the monthly rate of basic allowance for subsistence for 
enlisted members under section 402(b)(1) of title 37, United States 
Code.

           PART II--REFORM OF HOUSING AND RELATED ALLOWANCES

SEC. 616. ENTITLEMENT TO BASIC ALLOWANCE FOR HOUSING.

    (a) Redesignation of BAQ.--Section 403 of title 37, United States 
Code, is amended by striking out ``basic allowance for quarters'' each 
place it appears, except in subsections (f) and (m), and inserting in 
lieu thereof ``basic allowance for housing''.
    (b) Rates.--Subsection (a) of such section is amended by striking 
out ``section 1009'' and inserting in lieu thereof ``section 403a''.
    (c) Temporary Housing Allowance While in Travel or Leave Status.--
Subsection (f) of such section is amended to read as follows:
    ``(f) Temporary Housing Allowance While in Travel or Leave 
Status.--A member of a uniformed service who is in pay grade above E-4 
(four or more years of service) or above is entitled to a temporary 
housing allowance (at a rate determined under section 403a of this 
title) while the member is in a travel or leave status between 
permanent duty stations, including time granted as delay en route or 
proceed time, when the member is not assigned to quarters of the United 
States.''.
    (d) Determinations Necessary for Administering Authority for all 
Members.--Subsection (h) of such section is amended by striking out 
``enlisted'' each place it appears.
    (e) Entitlement of Members Not Entitled to Pay.--Subsection (i) of 
such section is amended by striking out ``enlisted''.
    (f) Temporary Housing and Allowance for Survivors of Active Duty 
Members.--
            (1) Continuation of occupancy.--Paragraph (1) of subsection 
        (l) of such section is amended by striking out ``in line of 
        duty'' and inserting in lieu thereof ``on active duty''.
            (2) Allowance.--Paragraph (2) of such subsection is amended 
        to read as follows:
    ``(2)(A) The Secretary concerned may pay a basic allowance for 
housing (at the rate determined under section 403a of this title) to 
the dependents of a member of the uniformed services who dies while on 
active duty and whose dependents--
            ``(i) are not occupying a housing facility under the 
        jurisdiction of a uniformed service on the date of the member's 
        death;
            ``(ii) are occupying such housing on a rental basis on such 
        date; or
            ``(iii) vacate such housing sooner than 180 days after the 
        date of the member's death.
    ``(B) The payment of the allowance under this subsection shall 
terminate 180 days after the date of the member's death.''.
    (g) Entitlement of Member Paying Child Support.--Subsection (m) of 
such section is amended to read as follows:
    ``(m) Members Paying Child Support.--(1) A member of a uniformed 
service with dependents may not be paid a basic allowance for housing 
at the with dependents rate solely by reason of the payment of child 
support by the member if--
            ``(A) the member is assigned to a housing facility under 
        the jurisdiction of a uniformed service; or
            ``(B) the member is in a pay grade above E-4, is assigned 
        to sea duty, and elects not to occupy assigned quarters for 
        unaccompanied personnel.
    ``(2) A member of a uniformed service assigned to quarters of the 
United States or a housing facility under the jurisdiction of a 
uniformed service who is not otherwise authorized a basic allowance for 
housing and who pays child support is entitled to the basic allowance 
for housing differential (at the rate applicable under section 403a of 
this title) to the members' pay grade except for months for which the 
amount payable for the child support is less than the rate of the 
differential. Payment of a basic allowance for housing differential 
does not affect any entitlement of the member to a partial allowance 
for quarters under subsection (o).''.
    (h) Replacement of VHA by Basic Allowance for Housing.--
            (1) Members not accompanied by dependents outside conus.--
        Such section is further amended by adding at the end the 
        following:
    ``(n) Members Not Accompanied by Dependents Outside CONUS.--(1) A 
member of a uniformed service with dependents who is assigned to an 
unaccompanied tour of duty outside the continental United States is 
eligible for a basic allowance for housing as provided in paragraph 
(2).
    ``(2)(A) For any period during which the dependents of a member 
referred to in paragraph (1) reside in the United States where, if the 
member were residing with them, the member would be entitled to receive 
a basic allowance for housing, the member is entitled to a basic 
allowance for housing at the rate applicable under section 403a of this 
title to the member's pay grade and the location of the residence of 
the member's dependents.
    ``(B) A member referred to in paragraph (1) may be paid a basic 
allowance for housing at the rate applicable under section 403a of this 
title to the members's pay grade and location.
    ``(3) Payment of a basic allowance for housing to a member under 
paragraph (2)(B) shall be in addition to any allowance or per diem to 
which the member otherwise may be entitled under this title.''.
            (2) Members not accompanied by dependents inside conus.--
        Paragraph (2) of section 403a(a) of title 37, United States 
        Code, is transferred to the end of section 403 of such title 
        and, as transferred, is amended--
                    (A) by striking out ``(2)'' and inserting in lieu 
                thereof ``(o) Members Not Accompanied by Dependents 
                Inside CONUS.--'';
                    (B) by striking out ``variable housing allowance'' 
                each place it appears and inserting in lieu thereof 
                ``basic allowance for housing'';
                    (C) by striking out ``(under regulations prescribed 
                under subsection (e))'' in the matter following 
                subparagraph (B) and inserting in lieu thereof ``(under 
                regulations prescribed by the Secretary of Defense)''; 
                and
                    (D) by redesignating subparagraphs (A) and (B) as 
                paragraphs (1) and (2), respectively.
            (3) Repeal of vha allowance.--Section 403a of title 37, 
        United States Code, is repealed.
    (i) Members Without Dependents.--Section 403 of such title, as 
amended by subsection (f), is further amended by adding at the end the 
following:
    ``(p) Partial Allowance for Members Without Dependents.--A member 
of a uniformed service without dependents who is not entitled to 
receive a basic allowance for housing under subsection (b) or (c) is 
entitled to a partial allowance for quarters determined under section 
403a of this title.''.
    (j) Stylistic Amendments.--Section 403 of title 37, United States 
Code, as amended by this section, is further amended--
            (1) in subsection (a), by striking out ``(a)(1)'' and 
        inserting in lieu thereof ``(a) General Entitlement.--(1)'';
            (2) in subsection (b), by striking out ``(b)(1)'' and 
        inserting in lieu thereof ``(b) Members Assigned to Quarters.--
        (1)'';
            (3) in subsection (c), by striking out ``(c)(1)'' and 
        inserting in lieu thereof ``(c) Ineligibility During Initial 
        Field Duty or Sea Duty.--(1)'';
            (4) in subsection (d), by striking out ``(d)(1)'' and 
        inserting in lieu thereof ``(d) Prohibited Grounds for 
        Denial.--(1)'';
            (5) in subsection (e), by inserting ``Rental of Public 
        Quarters.--'' after ``(e)'';
            (6) in subsection (g), by inserting ``Aviation Cadets.--'' 
        after ``(g)'';
            (7) in subsection (h), by inserting ``Necessary 
        Determinations.--'' after ``(h)'';
            (8) in subsection (i), by inserting ``Entitlement of Member 
        Not Entitled to Pay.--'' after ``(i)'';
            (9) in subsection (j), by striking out ``(j)(1)'' and 
        inserting in lieu thereof ``(j) Administrative Authority.--
        (1)'';
            (10) in subsection (k), by inserting ``Parking Facilities 
        Not Considered Quarters.--'' after ``(k)''; and
            (11) in subsection (l), by striking out ``(l)(1)'' and 
        inserting in lieu thereof ``(l) Dependents of Members Dying on 
        Active Duty.--(1)''.
    (k) Section Heading.--The heading of section 403 of title 37, 
United States Code, is amended to read as follows:
``Sec. 403. Basic allowance for housing: eligibility''.

SEC. 617. RATES OF BASIC ALLOWANCE FOR HOUSING.

    Chapter 7 of title 37, United States Code, is amended by inserting 
after section 403 the following new section 403a:
``Sec. 403a. Basic allowance for housing: rates
    ``(a) Rates Prescribed by Secretary of Defense.--The Secretary of 
Defense shall prescribe monthly rates of basic allowance for housing 
payable under section 403 of this title. The Secretary shall specify 
the rates, by pay grade and dependency status, for each geographic area 
defined in accordance with subsection (b).
    ``(b) Geographic Basis for Rates.--(1) The Secretary shall define 
the areas within the United States and the areas outside the United 
States for which rates of basic allowance for housing are separately 
specified.
    ``(2) For each area within the United States that is defined under 
paragraph (1), the Secretary shall determine the costs of housing in 
that area that the Secretary considers adequate for civilians residents 
of that area whose relevant circumstances the Secretary considers as 
being comparable to those of members of the uniformed services.
    ``(3) For each area outside the United States defined under 
paragraph (1), the Secretary shall determine the costs of housing in 
that area that the Secretary considers adequate for members of the 
uniformed services.
    ``(c) Rates Within the United States.--(1) Subject to paragraph 
(2), the monthly rate of basic allowance for housing for members of the 
uniformed services of a particular grade and dependency status for an 
area within the United States shall be the amount equal to the excess 
of--
            ``(A) the monthly cost of housing determined applicable for 
        members of that grade and dependency status for that area under 
        subsection (b), over
            ``(B) the amount equal to 15 percent of the average of the 
        monthly costs of housing determined applicable for members of 
        the uniformed services of that grade and dependency status for 
        all areas of the United States under subsection (b).
    ``(2) The rates of basic allowance for housing determined under 
paragraph (1) shall be reduced as necessary to comply with subsection 
(g).
    ``(d) Rates Outside the United States.--The monthly rate of basic 
allowance for housing for members of the uniformed services of a 
particular grade and dependency status for an area outside the United 
States shall be an amount appropriate for members of the uniformed 
services of that grade and dependency status for that area, as 
determined by the Secretary on the basis of the costs of housing in 
that area.
    ``(e) Adjustments When Rates of Basic Pay Increased.--The Secretary 
of Defense shall periodically redetermine the housing costs for areas 
under subsection (b) and adjust the rates of basic allowance for 
housing as appropriate on the basis of the redetermination of costs. 
The effective date of any adjustment in rates of basic allowance for 
housing for an area as a result of such a redetermination shall be the 
same date as the effective date of the next increase in rates of basic 
pay for members of the uniformed services after the redetermination.
    ``(f) Savings of Rate.--The rate of basic allowance for housing 
payable to a particular member for an area within the United States may 
not be reduced during a continuous period of eligibility of the member 
to receive a basic allowance for housing for that area by reason of--
            ``(1) a general reduction of rates of basic allowance for 
        housing for members of the same grade and dependency status for 
        the area taking effect during the period; or
            ``(2) a promotion of the member during the period.
    ``(g) Fiscal Year Limitation on Total Allowances Paid for Housing 
Inside the United States.--(1) The total amount that may be paid for a 
fiscal year for the basic allowance for housing for areas within the 
United States by authorized members of the uniformed services by 
section 403 of this title is the product of--
            ``(A) the total amount authorized to be paid for the 
        allowance for such areas for the preceding fiscal year (as 
        adjusted under paragraph (2)); and
            ``(B) the fraction--
                    ``(i) the numerator of which is the average of the 
                costs of housing determined by the Secretary under 
                subsection (b)(2) for the areas of the United States 
                for June of the preceding fiscal year; and
                    ``(ii) the denominator of which is the average of 
                the costs of housing determined by the Secretary under 
                subsection (b)(2) for the areas of the United States 
                for June of the fiscal year before the preceding fiscal 
                year.
    ``(2) In making a determination under paragraph (1) for a fiscal 
year, the Secretary shall adjust the amount authorized to be paid for 
the preceding fiscal year for the basic allowance for housing to 
reflect changes (during the fiscal year for which the determination is 
made) in the number, grade distribution, and dependency status of 
members of the uniformed services entitled to the basic allowance for 
housing from the number of such members during such preceding fiscal 
year.
    ``(h) Members En Route Between Permanent Duty Stations.--The 
Secretary of Defense shall prescribe in regulations the rate of the 
temporary housing allowance to which a member is entitled under section 
403(f) of this title while the member is in a travel or leave status 
between permanent duty stations.
    ``(i) Survivors of Members Dying on Active Duty.-- The rate of the 
basic allowance for housing payable to dependents of a deceased member 
under section 403(l)(2) of this title shall be the rate that is payable 
for members of the same grade and dependency status as the deceased 
member for the area where the dependents are residing.
    ``(j) Members Paying Child Support.--(1) The basic allowance for 
housing differential to which a member is entitled under section 
403(m)(2) of this title is the amount equal to the excess of--
            ``(A) the rate of the basic allowance for quarters (with 
        dependents) for the member's pay grade, as such rate was in 
        effect on December 31, 1997, under section 403 of this title 
        (as such section was in effect on such date), over
            ``(B) the rate of the basic allowance for quarters (without 
        dependents) for the member's pay grade, as such rate was in 
        effect on December 31, 1997, under section 403 of this title 
        (as such section was in effect on that date).
    ``(2) Whenever the rates of basic pay for members of the uniformed 
services are increased, the monthly amount of the basic allowance for 
housing differential shall be increased by the average percent increase 
in the rates of basic pay. The effective date of the increase shall be 
the same date as the effective date in the increase in the rates of 
basic pay.
    ``(k) Partial Allowance for Quarters.--The rate of the partial 
allowance for quarters to which a member without dependents is entitled 
under section 403(p) of this title is the partial rate of basic 
allowance for quarters for the member's pay grade as such partial rate 
was in effect on December 31, 1997, under section 1009(c)(2) of this 
title (as such section was in effect on such date).''.

SEC. 618. DISLOCATION ALLOWANCE.

    (a) Amount.--Section 407 of title 37, United States Code, is 
amended--
            (1) in subsection (a), by striking out ``equal to the basic 
        allowance for quarters for two and one-half months as provided 
        for the member's pay grade and dependency status in section 403 
        of this title'' in the matter preceding paragraph (1) and 
        inserting in lieu thereof ``determined under subsection (g)'';
            (2) in subsection (b), by striking out ``equal to the basic 
        allowance for quarters for two months as provided for a 
        member's pay grade and dependency status in section 403 of this 
        title'' and inserting in lieu thereof ``determined under 
        subsection (g)''; and
            (3) by adding at the end the following:
    ``(g) Amount.--(1) The dislocation allowance payable to a member 
under subsection (a) shall be the amount equal to 160 percent of the 
monthly national average cost of housing determined for members of the 
same grade and dependency status as the member.
    ``(2) The dislocation allowance payable to a member under 
subsection (b) shall be the amount equal to 130 percent of the monthly 
national average cost of housing determined for members of the same 
grade and dependency status as the member.
    ``(3) In this section, the term `monthly national average cost of 
housing', with respect to members of a particular grade and dependency 
status, means the average of the monthly costs of housing that the 
Secretary determines adequate for members of that grade and dependency 
status for all areas in the United States under section 403a(b)(2) of 
this title.''.
    (b) Stylistic Amendments.--Such section is amended--
            (1) in subsection (a), by inserting ``First Allowance.--'' 
        after ``(a)'';
            (2) in subsection (b), by inserting ``Second Allowance.--'' 
        after ``(b)'';
            (3) in subsection (c), by inserting ``One Allowance Per 
        Fiscal Year.--'' after ``(c)'';
            (4) in subsection (d), by inserting ``No Entitlement for 
        First and Last Moves.--'' after ``(d)'';
            (5) in subsection (e), by inserting ``When Member With 
        Dependents Considered Member Without Dependents.--'' after 
        ``(e)''; and
            (6) in subsection (f), by inserting ``Payment in Advance.--
        '' after ``(f)''.

SEC. 619. FAMILY SEPARATION AND STATION ALLOWANCES.

    (a) Family Separation Allowance.--
            (1) Repeal of authority for allowance equal to baq.--
        Section 427 of title 37, United States Code, is amended by 
        striking out subsection (a).
            (2) Conforming amendments.--Subsection (b) of such section 
        is amended--
                    (A) by striking out ``(b) Additional Separation 
                Allowance.--'';
                    (B) by redesignating paragraphs (1), (2), (3), (4), 
                and (5), as subsections (a), (b), (c), (d), and (e), 
                respectively;
                    (C) in subsection (a), as so redesignated--
                            (i) by inserting ``Entitlement.--'' after 
                        ``(a)'';
                            (ii) by striking out ``, including 
                        subsection (a),''; and
                            (iii) by redesignating subparagraphs (A), 
                        (B), (C), and (D) as paragraphs (1), (2), (3), 
                        and (4), respectively;
                    (D) in subsection (b), as redesignated by paragraph 
                (2)--
                            (i) by inserting ``Effective Date for 
                        Separation Due to Cruise or Temporary Duty.--'' 
                        after ``(b)'';
                            (ii) by striking out ``subsection by virtue 
                        of duty described in subparagraph (B) or (C) of 
                        paragraph (1)'' and inserting in lieu thereof 
                        ``section by virtue of duty described in 
                        paragraph (2) or (3) of subsection (a)'';
                            (iii) by redesignating subparagraphs (A) 
                        and (B) as paragraphs (1) and (2), 
                        respectively; and
                            (iv) in paragraph (2), as so redesignated--
                                    (I) by striking out ``subsection'' 
                                and inserting in lieu thereof 
                                ``section''; and
                                    (II) by striking out 
                                ``subparagraphs'' and inserting in lieu 
                                thereof ``paragraphs'';
                    (E) in subsection (c), as redesignated by paragraph 
                (2)--
                            (i) by inserting ``Entitlement When No 
                        Residence or Household Maintained for 
                        Dependents.--'' after ``(c)''; and
                            (ii) by striking out ``subsection'' and 
                        inserting in lieu thereof ``section'';
                    (F) in subsection (d), as redesignated by paragraph 
                (2)--
                            (i) by inserting ``Effect of Election of 
                        Unaccompanied Tour.--'' after ``(d)''; and
                            (ii) by striking out ``paragraph (1)(A) of 
                        this subsection'' and inserting in lieu thereof 
                        ``subsection (a)(1)''; and
                    (G) in subsection (e), as redesignated by paragraph 
                (2)--
                            (i) by inserting ``Entitlement While 
                        Dependent Entitled to Basic Pay.--'' after 
                        ``(e)''; and
                            (ii) by striking out ``paragraph (1)(D)'' 
                        each place it appears and inserting in lieu 
                        thereof ``subsection (a)(4)''.
    (b) Station Allowance.--
            (1) Repeal of authority.--Section 405 of title 37, United 
        States Code, is amended by striking out subsection (b).
            (2) Conforming amendment.--Such section is further amended 
        by redesignating subsections (c) and (d) as subsections (b) and 
        (c), respectively.

SEC. 620. OTHER CONFORMING AMENDMENTS.

    (a) Definition of Regular Military Compensation.--Section 101(25) 
of title 37, United States Code, is amended by striking out ``basic 
allowance for quarters (including any variable housing allowance or 
station allowance)'' and inserting in lieu thereof ``basic allowance 
for housing.''.
    (b) Allowances While Participating in International Sports.--
Section 420(c) of such title is amended by striking out ``quarters'' 
and inserting in lieu thereof ``housing''.
    (c) Payments to Missing Persons.--Section 551(3)(D) of such title 
is amended by striking out ``quarters'' and inserting in lieu thereof 
``housing''.
    (d) Payment Date.--Section 1014(a) of such title is amended by 
striking out ``basic allowance for quarters'' and inserting in lieu 
thereof ``basic allowance for housing''.
    (e) Occupancy of Substandard Family Housing.--Section 2830(a) of 
title 10, United States Code, is amended by striking out ``basic 
allowance for quarters'' each place it appears and inserting in lieu 
thereof ``basic allowance for housing''.

SEC. 621. CLERICAL AMENDMENT.

    The table of sections at the beginning of chapter 7 of title 37, 
United States Code, is amended by striking out the items relating to 
section 403 and 403a and inserting in lieu thereof the following:

``403. Basic allowance for housing: eligibility.
``403a. Basic allowance for housing: rates.''.

SEC. 622. EFFECTIVE DATE.

    This part and the amendments made by this part shall take effect on 
January 1, 1998.

           PART III--OTHER AMENDMENTS RELATING TO ALLOWANCES

SEC. 626. REVISION OF AUTHORITY TO ADJUST COMPENSATION NECESSITATED BY 
              REFORM OF SUBSISTENCE AND HOUSING ALLOWANCES.

    (a) Conforming Repeal of Authority Relating to BAS and BAQ.--
            (1) In general.--Section 1009 of title 37, United States 
        Code, is amended to read as follows:
``Sec. 1009. Adjustments of monthly basic pay
    ``(a) Adjustment Required.--Whenever the General Schedule of 
compensation for Federal classified employees as contained in section 
5332 of title 5 is adjusted upward, the President shall immediately 
make an upward adjustment in the monthly basic pay authorized members 
of the uniformed services by section 203(a) of this title.
    ``(b) Effectiveness of Adjustment.--An adjustment under this 
section shall--
            ``(1) have the force and effect of law; and
            ``(2) carry the same effective date as that applying to the 
        compensation adjustments provided General Schedule employees.
    ``(c) Equal Percentage Increase for All Members.--Subject to 
subsection (d), an adjustment under this section shall provide all 
eligible members with an increase in the monthly basic pay which is of 
the same percentage as the overall average percentage increase in the 
General Schedule rates of basic pay for civilian employees.
    ``(d) Allocation of Increase Among Pay Grades and Years-of-
Service.--(1) Subject to paragraph (2), whenever the President 
determines such action to be in the best interest of the Government, he 
may allocate the overall percentage increase in the monthly basic pay 
under subsection (a) among such pay grade and years-of-service 
categories as he considers appropriate.
    ``(2) In making any allocation of an overall percentage increase in 
basic pay under paragraph (1)--
            ``(A) the amount of the increase in basic pay for any given 
        pay grade and years-of-service category after any allocation 
        made under this subsection may not be less than 75 percent of 
        the amount of the increase in the monthly basic pay that would 
        otherwise have been effective with respect to such pay grade 
        and years-of-service category under subsection (c); and
            ``(B) the percentage increase in the monthly basic pay in 
        the case of any member of the uniformed services with four 
        years or less service may not exceed the overall percentage 
        increase in the General Schedule rates of basic pay for 
        civilian employees.
    ``(e) Notice of Allocations.--Whenever the President plans to 
exercise his authority under subsection (d) with respect to any 
anticipated increase in the monthly basic pay of members of the 
uniformed services, he shall advise Congress, at the earliest 
practicable time prior to the effective date of such increase, 
regarding the proposed allocation of such increase.
    ``(f) Quadrennial Assessment of Allocations.--The allocations of 
increases made under this section shall be assessed in conjunction with 
the quadrennial review of military compensation required by section 
1008(b) of this title.''.
            (2) Clerical amendment.--The item relating to such section 
        in the table of sections at the beginning of chapter 19 of such 
        title is amended to read as follows:

``1009. Adjustments of monthly basic pay.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on January 1, 1998.

SEC. 627. DEADLINE FOR PAYMENT OF READY RESERVE MUSTER DUTY ALLOWANCE.

    Section 433(c) of title 37, United States Code, is amended by 
striking out ``and shall'' in the first sentence and all that follows 
in that sentence and inserting in lieu thereof a period and the 
following: ``The allowance shall be paid to the member before, on, or 
after the date on which the muster duty is performed, but not later 
than 30 days after that date.''.

           Subtitle C--Bonuses and Special and Incentive Pays

SEC. 631. ONE-YEAR EXTENSION OF CERTAIN BONUSES AND SPECIAL PAY 
              AUTHORITIES FOR RESERVE FORCES.

    (a) Special Pay for Critically Short Wartime Health Specialists.--
Section 302g(f) of title 37, United States Code, is amended by striking 
out ``September 30, 1998'' and inserting in lieu thereof ``September 
30, 1999''.
    (b) Selected Reserve Reenlistment Bonus.--Section 308b(f) of title 
37, United States Code, is amended by striking out ``September 30, 
1998'' and inserting in lieu thereof ``September 30, 1999''.
    (c) Selected Reserve Enlistment Bonus.--Section 308c(e) of title 
37, United States Code, is amended by striking out ``September 30, 
1998'' and inserting in lieu thereof ``September 30, 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, 1998'' and inserting in lieu 
thereof ``September 30, 1999''.
    (e) Selected Reserve Affiliation Bonus.--Section 308e(e) of title 
37, United States Code, is amended by striking out ``September 30, 
1998'' and inserting in lieu thereof ``September 30, 1999''.
    (f) Ready Reserve Enlistment and Reenlistment Bonus.--Section 
308h(g) of title 37, United States Code, is amended by striking out 
``September 30, 1998'' and inserting in lieu thereof ``September 30, 
1999''.
    (g) Prior Service Enlistment Bonus.--Section 308i(i) of title 37, 
United States Code, is amended by striking out ``September 30, 1998'' 
and inserting in lieu thereof ``September 30, 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, 1998'' and 
inserting in lieu thereof ``October 1, 1999''.

SEC. 632. ONE-YEAR EXTENSION OF CERTAIN BONUSES AND SPECIAL PAY 
              AUTHORITIES FOR NURSE OFFICER CANDIDATES, REGISTERED 
              NURSES, AND NURSE ANESTHETISTS.

    (a) Nurse Officer Candidate Accession Program.--Section 2130a(a)(1) 
of title 10, United States Code, is amended by striking out ``September 
30, 1998'' and inserting in lieu thereof ``September 30, 1999''.
    (b) Accession Bonus for Registered Nurses.--Section 302d(a)(1) of 
title 37, United States Code, is amended by striking out ``September 
30, 1998'' and inserting in lieu thereof ``September 30, 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, 1998'' and inserting in lieu thereof ``September 30, 
1999''.

SEC. 633. ONE-YEAR EXTENSION OF AUTHORITIES RELATING TO PAYMENT OF 
              OTHER BONUSES AND SPECIAL PAYS.

    (a) Reenlistment Bonus for Active Members.--Section 308(g) of title 
37, United States Code, is amended by striking out ``September 30, 
1998'' and inserting in lieu thereof ``September 30, 1999''.
    (b) Enlistment Bonuses for Critical Skills.--Sections 308a(c) and 
308f(c) of title 37, United States Code, are each amended by striking 
out ``September 30, 1998'' and inserting in lieu thereof ``September 
30, 1999''.
    (c) 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, 1998'' and inserting in lieu 
thereof ``September 30, 1999''.
    (d) Nuclear Career Accession Bonus.--Section 312b(c) of title 37, 
United States Code, is amended by striking out ``September 30, 1998'' 
and inserting in lieu thereof ``September 30, 1999''.
    (e) Nuclear Career Annual Incentive Bonus.--Section 312c(d) of 
title 37, United States Code, is amended by striking out ``October 1, 
1998'' and inserting in lieu thereof ``October 1, 1999''.

SEC. 634. INCREASED AMOUNTS FOR AVIATION CAREER INCENTIVE PAY.

    (a) Amounts.--The table in subsection (b)(1) of section 301a(b)(1) 
of title 37, United States Code, is amended--
            (1) by inserting at the end of phase I of the table the 
        following:

        ``Over 14..............................................  840'';
        and
            (2) by striking out phase II of the table and inserting in 
        lieu thereof the following:

                               ``Phase II

                                                              ``Monthly
``Years of service as an officer:                                  rate

        ``Over 22..............................................   $585 
        ``Over 23..............................................    495 
        ``Over 24..............................................    385 
        ``Over 25..............................................  250''.
    (b) Effective Date and Applicability.--The amendments 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. 635. AVIATION CONTINUATION PAY.

    (a) Extension of Authority.--Subsection (a) of section 301b of 
title 37, United States Code, is amended by striking out ``1998'' and 
inserting in lieu thereof ``2005''.
    (b) Bonus Amounts.--Subsection (c) of such section is amended--
            (1) in paragraph (1), by striking out ``$12,000'' and 
        inserting in lieu thereof ``$25,000''; and
            (2) in paragraph (2), by striking out ``$6,000'' and 
        inserting in lieu thereof ``$12,000''.
    (c) Definition of Aviation Specialty.--Subsection (j)(2) of such 
section is amended by inserting ``specific'' before ``community''.
    (d) Content of Annual Report.--Subsection (i)(1) of such section is 
amended--
            (1) by inserting ``and'' at the end of subparagraph (A);
            (2) by striking out the semicolon and ``and'' at the end of 
        subparagraph (B) and inserting in lieu thereof a period; and
            (3) by striking out subparagraph (C).
    (e) Effective Dates and Applicability.--(1) Except as provided in 
paragraphs (1) and (2), the amendments made by this section shall take 
effect on the date of the enactment of this Act.
    (2) The amendment made by subsection (b) shall take effect on 
October 1, 1997, and shall apply with respect to agreements accepted 
under subsection (a) of section 301b of title 37, United States Code, 
on or after that date.
    (3) The amendment made by subsection (c) shall take effect as of 
October 1, 1996, and shall apply with respect to agreements accepted 
under subsection (a) of section 301b of title 37, United States Code, 
on or after that date.

SEC. 636. ELIGIBILITY OF DENTAL OFFICERS FOR THE MULTIYEAR RETENTION 
              BONUS PROVIDED FOR MEDICAL OFFICERS.

    (a) Addition of Dental Officers.--Section 301d of title 37, United 
States Code, is amended--
            (1) in subsection (a)(1), by inserting ``or dental'' after 
        ``medical''; and
            (2) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) by inserting ``or Dental Corps'' after 
                        ``Medical Corps''; and
                            (ii) by inserting ``or dental'' after 
                        ``medical''; and
                    (B) in paragraph (3), by inserting ``or dental'' 
                after ``medical''.
    (b) Conforming Amendment and Related Clerical Amendment.--(1) The 
heading of such section is amended to read as follows:
``Sec. 301d. Multiyear retention bonus: medical and dental officers of 
              the armed forces''.
    (2) The item relating to such section in the table of sections at 
the beginning of chapter 5 of title 37, United States Code, is amended 
to read as follows:

``301d. Multiyear retention bonus: medical and dental officers of the 
                            armed forces.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 1997, and apply to agreements accepted under 
section 301d of title 37, United States Code, on or after that date.

SEC. 637. INCREASED SPECIAL PAY FOR DENTAL OFFICERS.

    (a) Variable Special Pay for Officers Below Grade O-7.--Paragraph 
(2) of section 302b(a) of title 37, United States Code, is amended by 
striking out subparagraphs (C), (D), (E), and (F), and inserting in 
lieu thereof the following:
            ``(C) $4,000 per year, if the officer has at least six but 
        less than 8 years of creditable service.
            ``(D) $12,000 per year, if the officer has at least 8 but 
        less than 12 years of creditable service.
            ``(E) $10,000 per year, if the officer has at least 12 but 
        less than 14 years of creditable service.
            ``(F) $9,000 per year, if the officer has at least 14 but 
        less than 18 years of creditable service.
            ``(G) $8,000 per year, 18 or more years of creditable 
        service.''.
    (b) Variable Special Pay for Officers Above Grade O-6.--Paragraph 
(3) of such section is amended by striking out ``$1,000'' and inserting 
in lieu thereof ``$7,000''.
    (c) Additional Special Pay.--Paragraph (4) of such section is 
amended--
            (1) in subparagraph (B), by striking out ``14'' and 
        inserting in lieu thereof ``10''; and
            (2) by striking out subparagraphs (C) and (D) and inserting 
        in lieu thereof the following:
            ``(C) $15,000 per year, if the officer has 10 or more years 
        of creditable service.''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on October 1, 1997, and shall apply with respect to months 
beginning on or after that date.

SEC. 638. MODIFICATION OF SELECTED RESERVE REENLISTMENT BONUS 
              AUTHORITY.

    (a) Eligibility of Members With Up to 14 Years of Total Service.--
Subsection (a) of section 308b of title 37, United States Code, is 
amended by striking out ``ten years'' in paragraph (1) and inserting in 
lieu thereof ``14 years''.
    (b) Two-Bonus Authority for Consecutive 3-Year Enlistments.--Such 
subsection is further amended--
            (1) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively;
            (2) by inserting ``Authority and Eligibility 
        Requirements.--(1)'' after ``(a)'';
            (3) by striking out ``a bonus as provided in subsection 
        (b)'' before the period at the end and inserting in lieu 
        thereof ``a bonus or bonuses in accordance with this section''; 
        and
            (4) by adding at the end the following new paragraph (2):
    ``(2) If a person eligible to receive a bonus under this section by 
reason of an enlistment for a period of three years so elects on or 
before the date of the enlistment, the Secretary concerned may pay the 
person--
            ``(A) a bonus for that enlistment; and
            ``(B) an additional bonus for a later voluntary extension 
        of the enlistment, or a subsequent consecutive enlistment, for 
        a period of at least three years if--
                    ``(i) on the date of the expiration of the 
                enlistment for which the first bonus was paid, or the 
                date on which, but for an extension of the enlistment, 
                the enlistment would otherwise expire, as the case may 
                be, the person satisfies the eligibility requirements 
                set forth in paragraph (1) and the eligibility 
                requirements for reenlisting or extending the 
                enlistment; and
                    ``(ii) the extension of the enlistment or the 
                subsequent consecutive enlistment, as the case may be, 
                is in a critical military skill designated for such a 
                bonus by the Secretary concerned.''.
    (c) Bonus Amounts.--Subsection (b) of such section is amended to 
read as follows:
    ``(b) Bonus Amounts.--(1) In the case of a member who enlists for a 
period of six years, the bonus to be paid under subsection (a) shall be 
a total amount not to exceed $5,000.
    ``(2) In the case of a member who enlists for a period of three 
years, the bonus to be paid under subsection (a) shall be as follows:
            ``(A) If the member does not make an election authorized 
        under subsection (a)(2), the total amount of the bonus shall be 
        an amount not to exceed $2,500.
            ``(B) If the member makes an election under subsection 
        (a)(2) to be paid a bonus for the enlistment and an additional 
        bonus for a later extension of the enlistment or for a 
        subsequent consecutive enlistment--
                    ``(i) the total amount of the first bonus shall be 
                an amount not to exceed $2,000; and
                    ``(ii) the total amount of the additional bonus 
                shall be an amount not to exceed $2,500.''.
    (d) Disbursement of Bonus.--Subsection (c) of such section is 
amended to read as follows:
    ``(c) Disbursement of Bonus.--(1) Any bonus payable under this 
section shall be disbursed in one initial payment of an amount not to 
exceed one-half of the total amount of the bonus and subsequent 
periodic partial payments of the balance of the bonus. The Secretary 
concerned shall prescribe the amount of each partial payment and the 
schedule for making the partial payments.
    ``(2) Payment of any additional bonus under subsection (a)(2)(B) 
for an extension of an enlistment or a subsequent consecutive 
enlistment shall begin on or after the date referred to in clause (i) 
of that subsection.''.
    (e) Subsection Headings.--Such section is further amended--
            (1) in subsection (d), by inserting ``Refund for 
        Unsatisfactory Service.--'' after ``(d)'';
            (2) in subsection (e), by inserting ``Regulations.--'' 
        after ``(e)''; and
            (3) in subsection (f), by inserting ``Termination of 
        Authority.--'' after ``(f)''.
    (f) Effective Date.--The amendments made by this section shall take 
effect on October 1, 1997, and apply to enlistments in the Armed Forces 
on or after that date.

SEC. 639. MODIFICATION OF AUTHORITY TO PAY BONUSES FOR ENLISTMENTS BY 
              PRIOR SERVICE PERSONNEL IN CRITICAL SKILLS IN THE 
              SELECTED RESERVE.

    (a) Reorganization of Section.--Section 308i of title 37, United 
States Code, is amended--
            (1) by redesignating subsections (e), (f), and (g) as 
        paragraphs (2), (3), and (4), respectively, of subsection (d);
            (2) by redesignating subsections (b), (c), (d), (h), and 
        (i) as subsections (c), (e), (f), (g), and (h), respectively; 
        and
            (3) by redesignating paragraph (2) of subsection (a) as 
        subsection (b) and in subsection (b), as so redesignated, by 
        redesignating subparagraphs (A), (B), (C), and (D) as 
        paragraphs (1), (2), (3), and (4), respectively.
    (b) Two-Bonus Authority for Consecutive 3-Year Enlistments.--
Subsection (a) of such section is amended by inserting after paragraph 
(1) the following new paragraph (2):
    ``(2) If a person eligible to receive a bonus under this section by 
reason of an enlistment for a period of three years so elects on or 
before the date of the enlistment, the Secretary concerned may pay the 
person--
            ``(A) a bonus for that enlistment; and
            ``(B) an additional bonus for a later extension of the 
        enlistment, or a subsequent consecutive enlistment, for a 
        period of at least three years if--
                    ``(i) on the date of the expiration of the 
                enlistment for which the first bonus was paid, or the 
                date on which, but for an extension of the enlistment, 
                the enlistment would otherwise expire, the person 
                satisfies the eligibility requirements set forth in 
                subsection (b) and the eligibility requirements for 
                reenlisting or extending the enlistment, as the case 
                may be; and
                    ``(ii) the extension of the enlistment or the 
                subsequent consecutive enlistment, as the case may be, 
                is in a critical military skill designated for such a 
                bonus by the Secretary concerned.''.
    (c) Eligibility of Former Members With Up to 14 Years of Prior 
Service.--Subsection (b) of such section, as redesignated by subsection 
(a)(3), is amended by striking out ``10 years'' and inserting in lieu 
thereof ``14 years''.
    (d) Bonus Amounts.--Subsection (c) of such section, as redesignated 
by subsection (a)(2), is amended to read as follows:
    ``(c) Bonus Amounts.--(1) In the case of a member who enlists for a 
period of six years, the bonus to be paid under subsection (a) shall be 
a total amount not to exceed $5,000.
    ``(2) In the case of a member who enlists for a period of three 
years, the bonus to be paid under subsection (a) shall be as follows:
            ``(A) If the member does not make an election authorized 
        under subsection (a)(2), the total amount of the bonus shall be 
        an amount not to exceed $2,500.
            ``(B) If the member makes an election under subsection 
        (a)(2) to be paid a bonus for the enlistment and an additional 
        bonus for a later extension of the enlistment or for a 
        subsequent consecutive enlistment--
                    ``(i) the total amount of the first bonus shall be 
                an amount not to exceed $2,000; and
                    ``(ii) the total amount of the additional bonus 
                shall be an amount not to exceed $2,500.''.
    (e) Disbursement of Bonus.--Such section is amended by inserting 
after subsection (c), as redesignated by subsection (a)(2) and amended 
by subsection (d), the following new subsection (d):
    ``(d) Disbursement of Bonus.--(1) Any bonus payable under this 
section shall be disbursed in one initial payment of an amount not to 
exceed one-half of the total amount of the bonus and subsequent 
periodic partial payments of the balance of the bonus. The Secretary 
concerned shall prescribe the amount of each partial payment and the 
schedule for making the partial payments.
    ``(2) Payment of any additional bonus under subsection (a)(2)(B) 
for an extension of an enlistment or a subsequent consecutive 
enlistment shall begin on or after the date referred to in clause (i) 
of that subsection.''.
    (f) Conforming Amendments.--(1) Subsection (a)(1) of such section 
is amended by striking out ``paragraph (2) may be paid a bonus as 
prescribed in subsection (b)'' and inserting in lieu thereof 
``subsection (b) may be paid a bonus or bonuses in accordance with this 
section''.
    (2) Subsection (e) of such section, as redesignated by subsection 
(a)(2), is amended by striking out ``may not be paid more than one 
bonus under this section and''.
    (3) Subsection (f) of such section, as redesignated by subsection 
(a)(2), is amended--
            (A) by inserting ``Refund for Unsatisfactory Service.--
        (1)'' after ``(f)'';
            (B) in paragraphs (2) and (4), as redesignated by 
        subsection (a)(1), by striking out ``subsection (d)'' and 
        inserting in lieu thereof ``paragraph (1)''; and
            (C) in paragraph (3), as redesignated by subsection 
        (a)(1)--
                    (i) by striking out ``subsection (h)'' and 
                inserting in lieu thereof ``subsection (g)''; and
                    (ii) by striking out ``subsection (d)'' and 
                inserting in lieu thereof ``paragraph (1)''.
    (g) Subsection Headings.--Such section, as amended by subsections 
(a) through (f), is further amended--
            (1) in subsection (a), by inserting ``Authority.--'' after 
        ``(a)'';
            (2) in subsection (b), by inserting ``Eligibility.--'' 
        after ``(b)'';
            (3) in subsection (e), by inserting ``Limitation.--'' after 
        ``(e)'';
            (4) in subsection (g), by inserting ``Regulations.--'' 
        after ``(g)''; and
            (5) in subsection (h), by inserting ``Termination of 
        Authority.--'' after ``(h)''.
    (h) Effective Date.--The amendments made by this section shall take 
effect on October 1, 1997, and apply to enlistments in the Armed Forces 
on or after that date.

SEC. 640. INCREASED SPECIAL PAY AND BONUSES FOR NUCLEAR QUALIFIED 
              OFFICERS.

    (a) Special Pay for Officers Extending Period of Active Service.--
Subsection (a) of section 312 of title 37, United States Code, is 
amended by striking out ``$12,000'' and inserting in lieu thereof 
``$15,000''.
    (b) Nuclear Career Accession Bonus.--Subsection (a)(1) of section 
312b of title 37, United States Code, is amended by striking out 
``$8,000'' and inserting in lieu thereof ``$10,000''.
    (c) Nuclear Career Annual Incentive Bonuses.--Section 312c of title 
37, United States Code, is amended--
            (1) in subsection (a)(1), by striking out ``$10,000'' and 
        inserting in lieu thereof ``$12,000''; and
            (2) in subsection (b)(1), by striking out ``$4,500'' and 
        inserting in lieu thereof ``$5,500''.
    (d) Effective Date.--(1) The amendments made by this section shall 
take effect on October 1, 1997.
    (2) The amendments made by subsections (a) and (b) shall apply with 
respect to agreements accepted under sections 312(a) and 312b(a), 
respectively, of title 37, United States Code, on or after the 
effective date of the amendments.

SEC. 641. AUTHORITY TO PAY BONUSES IN LIEU OF SPECIAL PAY FOR ENLISTED 
              MEMBERS EXTENDING DUTY AT DESIGNATED LOCATIONS OVERSEAS.

    (a) Payment Flexibility.--Section 314 of title 37, United States 
Code, is amended--
            (1) in subsection (a), by striking out ``at a rate'' and 
        all that follows through ``Secretary concerned'';
            (2) by redesignating subsection (b) as subsection (c); and
            (3) by inserting after subsection (a) the following new 
        subsection (b):
    ``(b) Payment Schedule and Rates.--At the election of the Secretary 
concerned, the Secretary may pay the special pay to which a member is 
entitled under subsection (a)--
            ``(1) in monthly installments in an amount prescribed by 
        the Secretary, but not to exceed $80 each; or
            ``(2) as an annual bonus in an amount prescribed by the 
        Secretary, but not to exceed $2,000 per year.''.
    (b) Prohibition of Concurrent Receipt with Rest and Recuperative 
Absence or Transportation.--Subsection (c) of such section, as 
redesignated by subsection (a)(2), is amended--
            (1) by inserting ``Concurrent Receipt of Benefits 
        Prohibited.--(1)'' after ``(c)''; and
            (2) by adding at the end the following:
    ``(2)(A) In the case of a member entitled to an annual bonus for a 
12-month period under subsection (b)(2), the amount of the annual bonus 
shall be reduced by the percent determined by dividing 12 into the 
number of months in the period that the member is authorized rest and 
recuperative absence or transportation. For the purposes of the 
preceding sentence, a member shall be treated as having been authorized 
rest and recuperative absence or transportation for a full month if 
rest and recuperative absence or transportation is authorized for the 
member for any part of the month.
    ``(B) The Secretary concerned shall recoup by collection from a 
member any amount of an annual bonus paid under subsection (b)(2) to 
the member for a 12-month period that exceeds the amount of the bonus 
to which the member is entitled for the period by reason of an 
authorization of rest and recuperative absence or transportation for 
the member during that period that was not taken into account in 
computing the amount of the entitlement.''.
    (c) Repayment.--Such section is further amended by adding at the 
end the following:
    ``(d) Refund for Failure To Complete Tour of Duty.--(1) A member 
who, having entered into a written agreement to extend a tour of duty 
for a period under subsection (a), receives a bonus payment under 
subsection (b)(2) for a 12-month period covered by the agreement and 
ceases during that 12-month period to perform the agreed tour of duty 
shall refund to the United States the unearned portion of the bonus. 
The unearned portion of the bonus is the amount by which the amount of 
the bonus paid to the member exceeds the amount determined by 
multiplying the amount of the bonus paid by the percent determined by 
dividing 12 into the number of full months during which the member 
performed the duty in the 12-month period.
    ``(2) The Secretary concerned may waive the obligation of a member 
to reimburse the United States under paragraph (1) if the Secretary 
determines that conditions and circumstances warrant the waiver.
    ``(e) Treatment of Reimbursement Obligations.--(1) An obligation to 
reimburse the United States imposed under subsection (c)(2)(B) or (d) 
is for all purposes a debt owed to the United States.
    ``(2) A discharge in bankruptcy under title 11 that is entered less 
than 5 years after the termination of a written agreement entered into 
under subsection (a) does not discharge the member signing the 
agreement from a debt referred to in paragraph (1). This paragraph 
applies to any case commenced under title 11 on or after October 1, 
1997.''.
    (d) Stylistic Amendment.--Subsection (a) of such section is amended 
by inserting ``Authority.--'' after ``(a)''.
    (e) Effective Date.--The amendments made by this section shall take 
effect on October 1, 1997, and apply to agreements accepted under 
section 314 of title 37, United States Code, on or after that date.

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

SEC. 651. ONE-YEAR OPPORTUNITY TO DISCONTINUE PARTICIPATION IN SURVIVOR 
              BENEFIT PLAN.

    (a) Election To Discontinue Within One Year After Second 
Anniversary of Commencement of Payment of Retired Pay.--(1) Subchapter 
II of chapter 73 of title 10, United States Code, is amended by 
inserting after section 1448 the following:
``Sec. 1448a. Election to discontinue participation: one-year 
              opportunity after second anniversary of commencement of 
              payment of retired pay
    ``(a) Authority.--A participant in the Plan may, subject to the 
provisions of this section, elect to discontinue participation in the 
Plan at any time during the 1-year period beginning on the second 
anniversary of the date on which payment of retired pay to the 
participant commences.
    ``(b) Concurrence of Spouse.--(1) A married participant may not 
make an election under subsection (a) without the concurrence of the 
participant's spouse, except that the participant may make such an 
election without the concurrence of the person's spouse if the person 
establishes to the satisfaction of the Secretary concerned that one of 
the conditions described in section 1448(a)(3)(C) of this title exists.
    ``(2) The concurrence of a spouse under paragraph (1) shall be made 
in such written form and shall contain such information as may be 
required under regulations prescribed by the Secretary of Defense.
    ``(c) Limitation on Election When Former Spouse Coverage in 
Effect.--The limitation set forth in section 1450(f)(2) of this title 
shall apply to an election to discontinue participation in the Plan 
under subsection (a).
    ``(d) Withdrawal of Election To Discontinue.--Section 1448(b)(1)(D) 
of this title shall apply to an election under subsection (a).
    ``(e) Consequences of Discontinuation.--Section 1448(b)(1)(E) of 
this title shall apply to an election under subsection (a).
    ``(f) Notice to Effected Beneficiaries.--The Secretary concerned 
shall notify any former spouse or other natural person previously 
designated under section 1448(b) of this title of any election to 
discontinue participation under subsection (a).
    ``(g) Effective Date of Election.--An election authorized under 
this section 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.
    ``(h) Inapplicability of Irrevocability Provisions.--Paragraphs 
(4)(B) and (5)(C) of section 1448(a) of this title do not apply to 
prevent an election under subsection (a).''.
    (2) The table of sections at the beginning of such subchapter is 
amended by inserting after the item relating to section 1448 the 
following:

``1448a. Election to discontinue participation: one-year opportunity 
                            after second anniversary of commencement of 
                            payment of retired pay.''.
    (b) Transition Provision.--Notwithstanding the limitation on the 
time for making an election under section 1448a of title 10, United 
States Code (as added by subsection (a)), that is specified in 
subsection (a) of such section, a participant in the Survivor Benefit 
Plan under subchapter II of chapter 73 of such title may make an 
election in accordance with that section within one year after the 
effective date of the section if the second anniversary of the 
commencement of payment of retired pay to the participant precedes that 
effective date.
    (c) Effective Date.--Section 1448a of title 10, United States Code, 
as added by subsection (a), shall take effect 180 days after the date 
of the enactment of this Act.

SEC. 652. TIME FOR CHANGING SURVIVOR BENEFIT COVERAGE FROM FORMER 
              SPOUSE TO SPOUSE.

    Section 1450(f)(1)(C) of title 10, United States Code, is amended 
by adding at the end the following: ``Notwithstanding the preceding 
sentence, a change of election under this subsection to provide an 
annuity to a spouse instead of a former spouse may (subject to 
paragraph (2)) be made at any time without regard to the time 
limitation in section 1448(a)(5)(B) of this title.''.

SEC. 653. PAID-UP COVERAGE UNDER SURVIVOR BENEFIT PLAN.

    Section 1452 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(j) Coverage Paid Up at 30 Years or Age 70.--(1) Coverage of a 
survivor of a member under the Plan shall be considered paid up as of 
the end of the earlier 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).''.

SEC. 654. ANNUITIES FOR CERTAIN MILITARY SURVIVING SPOUSES.

    (a) Survivor Annuity.--(1) The Secretary concerned shall pay an 
annuity to the qualified surviving spouse of each member of the 
uniformed services who--
            (A) died before March 21, 1974, and was entitled to retired 
        or retainer pay on the date of death; or
            (B) was a member of a reserve component of the Armed Forces 
        during the period beginning on September 21, 1972, and ending 
        on October 1, 1978, and at the time of his death would have 
        been entitled to retired pay under chapter 67 of title 10, 
        United States Code (as in effect before December 1, 1994), but 
        for the fact that he was under 60 years of age.
    (2) A qualified surviving spouse for purposes of this section is a 
surviving spouse who has not remarried and who is not eligible for an 
annuity under section 4 of Public Law 92-425 (10 U.S.C. 1448 note).
    (b) Amount of Annuity.--(1) An annuity under this section shall be 
paid at the rate of $165 per month, as adjusted from time to time under 
paragraph (3).
    (2) An annuity paid to a surviving spouse under this section shall 
be reduced by the amount of any dependency and indemnity compensation 
(DIC) to which the surviving spouse is entitled under section 1311(a) 
of title 38, United States Code.
    (3) Whenever after the date of the enactment of this Act retired or 
retainer pay is increased under section 1401a(b)(2) of title 10, United 
States Code, each annuity that is payable under this section shall be 
increased at the same time and by the same total percent. The amount of 
the increase shall be based on the amount of the monthly annuity 
payable before any reduction under this section.
    (c) Application Required.--No benefit shall be paid to any person 
under this section unless an application for such benefit is filed with 
the Secretary concerned by or on behalf of such person.
    (d) Definitions.--For purposes of this section:
            (1) The terms ``uniformed services'' and ``Secretary 
        concerned'' have the meanings given such terms in section 101 
        of title 37, United States Code.
            (2) The term ``surviving spouse'' has the meaning given the 
        terms ``widow'' and ``widower'' in paragraphs (3) and (4) of 
        section 1447 of title 10, United States Code.
    (e) Prospective Applicability.--(1) Annuities under this section 
shall be paid for months beginning after the month in which this Act is 
enacted.
    (2) No benefit shall accrue to any person by reason of the 
enactment of this section for any period before the first month that 
begins after the month in which this Act is enacted.
    (f) Expiration of Authority.--The authority to pay annuities under 
this section shall expire on September 30, 2001.

                       Subtitle E--Other Matters

SEC. 661. ELIGIBILITY OF RESERVES FOR BENEFITS FOR ILLNESS, INJURY, OR 
              DEATH INCURRED OR AGGRAVATED IN LINE OF DUTY.

    (a) Pay and Allowances.--(1) Section 204 of title 37, United States 
Code, is amended--
            (A) in subsection (g)(1)(D), by inserting after ``while 
        remaining overnight,'' the following: ``immediately before the 
        commencement of inactive-duty training or''; and
            (B) in subsection (h)(1)(D), by inserting after ``while 
        remaining overnight,'' the following: ``immediately before the 
        commencement of inactive-duty training or''.
    (2) Section 206(a)(3)(C) of such title is amended by inserting 
after ``while remaining overnight,'' the following: ``immediately 
before the commencement of inactive-duty training or''.
    (b) Medical and Dental Care.--(1) Section 1074a(a)(3) of title 10, 
United States Code, is amended by inserting after ``while remaining 
overnight,'' the following: ``immediately before the commencement of 
inactive-duty training or''.
    (2) Section 1076(a)(2) of title 10, United States Code, is 
amended--
            (A) by striking out ``or'' at the end of subparagraph (A);
            (B) by striking out the period at the end of subparagraph 
        (B)(ii) and inserting in lieu thereof ``; or''; and
            (C) by adding at the end the following:
            ``(C) who incurs or aggravates an injury, illness, or 
        disease in the line of duty while serving on active duty under 
        a call or order to active duty for a period of 30 days or less, 
        if the call or order is modified to extend the period of active 
        duty of the member to be more than 30 days.''.
    (c) Eligibility for Disability Retirement or Separation.--(1) 
Section 1204(2) of title 10, United States Code, is amended to read as 
follows:
            ``(2) the disability is a result of an injury, illness, or 
        disease incurred or aggravated--
                    ``(A) in line of duty while performing active duty 
                or inactive-duty training;
                    ``(B) while traveling directly to or from the place 
                at which such duty is performed; or
                    ``(C) while remaining overnight, immediately before 
                the commencement of inactive-duty training or between 
                successive periods of inactive-duty training, at or in 
                the vicinity of the site of the inactive-duty training, 
                if the site of the inactive-duty training is outside 
                reasonable commuting distance of the member's 
                residence;''.
    (2) Section 1206 of title 10, United States Code, is amended--
            (A) by redesignating paragraphs (2), (3), and (4) as 
        paragraphs (3), (4), and (5), respectively, and
            (B) by inserting after paragraph (1) the following new 
        paragraph:
            ``(2) the disability is a result of an injury, illness, or 
        disease incurred or aggravated--
                    ``(A) in line of duty while performing active duty 
                or inactive-duty training;
                    ``(B) while traveling directly to or from the place 
                at which such duty is performed; or
                    ``(C) while remaining overnight, immediately before 
                the commencement of inactive-duty training or between 
                successive periods of inactive-duty training, at or in 
                the vicinity of the site of the inactive-duty training, 
                if the site of the inactive-duty training is outside 
                reasonable commuting distance of the member's 
                residence;''.
    (d) Recovery, Care, and Disposition of Remains.--Section 
1481(a)(2)(D) of title 10, United States Code, is amended by inserting 
after ``while remaining overnight,'' the following: ``immediately 
before the commencement of inactive-duty training or''.
    (e) Conforming Amendments and Related Clerical Amendments.--(1) The 
heading of section 1204 of title 10, United States Code, is amended to 
read as follows:
``Sec. 1204. Members on active duty for 30 days or less or on inactive-
              duty training: retirement''.
    (2) The heading of section 1206 of such title is amended to read as 
follows:
``Sec. 1206. Members on active duty for 30 days or less or on inactive-
              duty training: separation''.
    (3) The table of sections at the beginning of chapter 61 of such 
title is amended--
            (A) by striking out the item relating to section 1204 and 
        inserting in lieu thereof the following:

``1204. Members on active duty for 30 days or less or on inactive-duty 
                            training: retirement.'';
        and
            (B) by striking out the item relating to section 1206 and 
        inserting in lieu thereof the following:

``1206. Members on active duty for 30 days or less or on inactive-duty 
                            training: separation.''.
    (f) Prospective Applicability.--No benefit shall accrue under an 
amendment made by this section for any period before the date of the 
enactment of this Act.

SEC. 662. TRAVEL AND TRANSPORTATION ALLOWANCES FOR DEPENDENTS BEFORE 
              APPROVAL OF A MEMBER'S COURT-MARTIAL SENTENCE.

    Section 406(h)(2)(C) of title 37, United States Code, is amended by 
inserting before the period at the end of the matter following clause 
(iii) the following: ``or action on the sentence is pending under that 
section''.

SEC. 663. ELIGIBILITY OF MEMBERS OF THE UNIFORMED SERVICES FOR 
              REIMBURSEMENT OF ADOPTION EXPENSES.

    (a) Public Health Service.--Section 221(a) of the Public Health 
Service Act (42 U.S.C. 213a(a)) is amended by adding at the end the 
following:
            ``(16) Section 1052, Reimbursement for adoption 
        expenses.''.
    (b) National Oceanic and Atmospheric Administration.--Section 3(a) 
of the Act entitled ``An Act to revise, codify, and enact into law, 
title 10 of the United States Code, entitled `Armed Forces', and title 
32 of the United States Code, entitled `National Guard''', approved 
August 10, 1956 (33 U.S.C. 857a(a)), is amended by adding at the end 
the following:
            ``(16) Section 1052, Reimbursement for adoption 
        expenses.''.
    (c) Prospective Applicability.--The amendments made by this section 
shall take effect on the date of the enactment of this Act and apply to 
adoptions completed on or after such date.

                   TITLE VII--HEALTH CARE PROVISIONS

SEC. 701. WAIVER OF DEDUCTIBLES, COPAYMENTS, AND ANNUAL FEES FOR 
              MEMBERS ASSIGNED TO CERTAIN DUTY LOCATIONS FAR FROM 
              SOURCES OF CARE.

    (a) Authority.--Chapter 55 of title 10, United States Code, is 
amended by adding at the end the following:
``Sec. 1107. Waiver of deductibles, copayments, and annual fees for 
              members assigned to certain duty locations far from 
              sources of care
    ``(a) Authority.--The administering Secretaries shall prescribe in 
regulations--
            ``(1) authority for members of the armed forces referred to 
        in subsection (b) to receive care under the Civilian Health and 
        Medical Program of the Uniformed Services; and
            ``(2) policies and procedures for waiving an obligation for 
        such members to pay a deductible, copayment, or annual fee that 
        would otherwise be applicable under that program for care 
        provided to the members under the program.
    ``(b) Eligibility.--The regulations may be applied to a member of 
the uniformed services on active duty who--
            ``(1) is assigned to--
                    ``(A) permanent duty as a recruiter;
                    ``(B) permanent duty at an educational institution 
                to instruct, administer a program of instruction, or 
                provide administrative services in support of a program 
                of instruction for the Reserve Officers' Training 
                Corps;
                    ``(C) permanent duty as a full-time adviser to a 
                unit of a reserve component of the armed forces; or
                    ``(D) any other permanent duty designated by the 
                administering Secretary concerned for purposes of the 
                regulations; and
            ``(2) pursuant to such assignment, resides at a location 
        that is more than 50 miles, or one hour of driving time, from--
                    ``(A) the nearest health care facility of the 
                uniformed services adequate to provide the needed care 
                under this chapter; and
                    ``(B) the nearest source of the needed care that is 
                available to the member under the TRICARE Prime plan.
    ``(c) Payment of Costs.--Deductibles, copayments, and annual fees 
not payable by a member by reason of a waiver granted under the 
regulations shall be paid out of funds available to the Department of 
Defense for the defense health program.
    ``(d) Definitions.--In this section:
            ``(1) The term `TRICARE Prime plan' means a plan under the 
        TRICARE program that provides for voluntary enrollment for 
        health care to be furnished in a manner similar to the manner 
        in which health care is furnished by health maintenance 
        organizations.
            ``(2) The term `TRICARE program' means the managed health 
        care program that is established by the Secretary of Defense 
        under the authority of this chapter, principally section 1097 
        of this title, and includes the competitive selection of 
        contractors to financially underwrite the delivery of health 
        care services under the Civilian Health and Medical Program of 
        the Uniformed Services.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following:

``1107. Waiver of deductibles, copayments, and annual fees for members 
                            assigned to certain duty locations far from 
                            sources of care.''.

SEC. 702. PAYMENT FOR EMERGENCY HEALTH CARE OVERSEAS FOR MILITARY AND 
              CIVILIAN PERSONNEL OF THE ON-SITE INSPECTION AGENCY.

    (a) Payment of Costs.--The Secretary of Defense may pay the costs 
of any emergency health care that--
            (1) is needed by a member of the Armed Forces, civilian 
        employee of the Department of Defense, or civilian employee of 
        a contractor while the person is performing temporary or 
        permanent duty with the On-Site Inspection Agency outside the 
        United States; and
            (2) is furnished to such person during fiscal year 1998 by 
        a source outside the United States.
    (b) Funding.--Funds authorized to be appropriated for the expenses 
of the On-Site Inspection Agency for fiscal year 1998 by this Act shall 
be available to cover payments for emergency health care under 
subsection (a).

SEC. 703. DISCLOSURES OF CAUTIONARY INFORMATION ON PRESCRIPTION 
              MEDICATIONS.

    (a) Requirement for Regulations.--Not later than 180 days after the 
date of the enactment of this Act, the administering Secretaries 
referred to in section 1073(3) of title 10, United States Code, shall 
prescribe regulations that require each source dispensing a 
prescription medication to a person under chapter 55 of such title to 
furnish to that person, with the medication, written cautionary 
information on the medication.
    (b) Information To Be Disclosed.--Information required to be 
disclosed about a medication under the regulations shall include 
appropriate cautions about usage of the medication, including possible 
side effects and potentially hazardous interactions with foods.
    (c) Form of Information.--The regulations shall require that 
information be furnished in a form that, to the maximum extent 
practicable, is easily read and understood.
    (d) Covered Sources.--The regulations shall apply to the following:
            (1) Pharmacies and any other dispensers of prescription 
        medications in medical facilities of the uniformed services.
            (2) Sources of prescription medications under any mail 
        order pharmaceuticals program provided by any of the 
        administering Secretaries under chapter 55 of title 10, United 
        States Code.
            (3) Pharmacies paid under the Civilian Health and Medical 
        Program of the Uniformed Services (including the TRICARE 
        program).
            (4) Pharmacies, and any other pharmaceutical dispensers, of 
        designated providers referred to in section 721(5) of the 
        National Defense Authorization Act for Fiscal Year 1997 (Public 
        Law 104-201; 110 Stat. 2593; 10 U.S.C. 1073 note).

SEC. 704. HEALTH CARE SERVICES FOR CERTAIN RESERVES WHO SERVED IN 
              SOUTHWEST ASIA DURING THE PERSIAN GULF WAR.

    (a) Requirement.--A member of the Armed Forces described in 
subsection (b) shall be entitled to medical and dental care under 
chapter 55 of title 10, United States Code, for a symptom or illness 
described in subsection (b)(2) to the same extent and under the same 
conditions (other than the requirement to be on active duty) as is a 
member of a uniformed service who is entitled under section 1074(a) of 
such title to medical and dental care under such chapter. The Secretary 
shall provide such care free of charge to the member.
    (b) Covered Members.--Subsection (a) applies to any member of a 
reserve component of the Armed Forces who--
            (1) is a Persian Gulf veteran;
            (2) registers a symptom or illness in the Persian Gulf War 
        Veterans Health Surveillance System of the Department of 
        Defense that is presumed under section 721(d) of the National 
        Defense Authorization Act for Fiscal Year 1995 (Public Law 103-
        337; 108 Stat. 2805; 10 U.S.C. 1074 note) to be a result of 
        such service; and
            (3) is not otherwise entitled to medical and dental care 
        under section 1074(a) of title 10, United States Code.
    (c) Definition.--In this section, the term ``Persian Gulf veteran'' 
has the same meaning as in section 721(i) of the National Defense 
Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 
2807; 10 U.S.C. 1074 note).

SEC. 705. COLLECTION OF DENTAL INSURANCE PREMIUMS.

    (a) Selected Reserve Dental Insurance.--Paragraph (3) of section 
1076b(b) of title 10, United States Code, is amended to read as 
follows:
    ``(3) The Secretary of Defense shall establish procedures for the 
collection of the member's share of the premium for coverage by the 
dental insurance plan. To the extent that the Secretary determines 
practicable, a member's share may be deducted and withheld from the 
basic pay payable to the member for inactive duty training and from the 
basic pay payable to the member for active duty.''.
    (b) Retiree Dental Insurance.--Paragraph (2) of section 1076c(c) of 
title 10, United States Code, is amended by striking out ``(2) The 
amount of the premiums'' and inserting in lieu thereof ``(2) The 
Secretary of Defense shall establish procedures for the collection of 
the premiums charged for coverage by the dental insurance plan. To the 
extent that the Secretary determines practicable, the premiums''.

SEC. 706. DENTAL INSURANCE PLAN COVERAGE FOR RETIREES OF UNIFORMED 
              SERVICE IN THE PUBLIC HEALTH SERVICE AND NOAA.

    (a) Officials Responsible.--Subsection (a) of section 1076c of 
title 10, United States Code, is amended by striking out ``Secretary of 
Defense'' and inserting in lieu thereof ``administering Secretaries''.
    (b) Eligibility.--Subsection (b)(1) of such section is amended by 
striking out ``Armed Forces'' and inserting in lieu thereof ``uniformed 
services''.

SEC. 707. PROSTHETIC DEVICES FOR DEPENDENTS.

    (a) Expanded Authority.--Section 1077(a) of title 10, United States 
Code, is amended by adding at the end the following:
            ``(15) Artificial limbs, voice prostheses, and artificial 
        eyes.
            ``(16) Any prosthetic device not named in paragraph (15) 
        that is determined under regulations prescribed by the 
        Secretary of Defense to be necessary because of one or more 
        significant impairments resulting from trauma, congenital 
        anomaly, or disease.''.
    (b) Conforming Amendment.--Paragraph (2) of subsection (b) of such 
section is amended to read as follows:
            ``(2) Hearing aids, orthopedic footwear, and spectacles, 
        except that such items may be sold, at the cost to the United 
        States, to dependents outside the United States and at stations 
        inside the United States where adequate civilian facilities are 
        unavailable.''.

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

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

SEC. 801. STREAMLINED APPROVAL REQUIREMENTS FOR CONTRACTS UNDER 
              INTERNATIONAL AGREEMENTS.

    Section 2304(f)(2)(E) of title 10, United States Code, is amended 
by striking out ``and such document is approved by the competition 
advocate for the procuring activity''.

SEC. 802. RESTRICTION ON UNDEFINITIZED CONTRACT ACTIONS.

    (a) Applicability of Waiver Authority to Humanitarian or 
Peacekeeping Operations.--Section 2326(b)(4) of title 10, United States 
Code, is amended to read as follows:
    ``(4) The head of an agency may waive the provisions of this 
subsection with respect to a contract of that agency if that head of an 
agency determines that the waiver is necessary in order to support any 
of the following operations:
            ``(A) A contingency operation.
            ``(B) A humanitarian or peacekeeping operation.''.
    (b) Humanitarian or Peacekeeping Operation Defined.--Section 
2302(7) of such title is amended--
            (1) by striking out ``(7)(A)'' and inserting in lieu 
        thereof ``(7)''; and
            (2) by striking out ``(B) In subparagraph (A), the'' and 
        inserting in lieu thereof ``(8) The''.

SEC. 803. EXPANSION OF AUTHORITY TO CROSS FISCAL YEARS TO ALL SEVERABLE 
              SERVICE CONTRACTS NOT EXCEEDING A YEAR.

    (a) Expanded Authority.--Section 2410a of title 10, United States 
Code, is amended to read as follows:
``Sec. 2410a. Severable service contracts for periods crossing fiscal 
              years
    ``(a) Authority.--The Secretary of Defense or the Secretary of a 
military department may enter into a contract for procurement of 
severable services for a period that begins in one fiscal year and ends 
in the next fiscal year if (without regard to any option to extend the 
period of the contract) the contract period does not exceed one year.
    ``(b) Obligation of Funds.--Funds made available for a fiscal year 
may be obligated for the total amount of a contract entered into under 
the authority of subsection (a).''.
    (b) Clerical Amendment.--The item relating to such section in the 
table of sections at the beginning of chapter 141 of such title is 
amended to read as follows:

``2410a. Severable service contracts for periods crossing fiscal 
                            years.''.

SEC. 804. LIMITATION ON ALLOWABILITY OF COMPENSATION FOR CERTAIN 
              CONTRACTOR PERSONNEL.

    (a) Certain Compensation Not Allowable as Costs Under Defense 
Contracts.--(1) Subsection (e)(1) of section 2324 of title 10, United 
States Code, is amended by adding at the end the following:
            ``(P) Costs of compensation of senior executives of 
        contractors for a fiscal year, to the extent that such 
compensation exceeds the benchmark compensation amount determined 
applicable for the fiscal year by the Administrator for Federal 
Procurement Policy under section 39 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 435).''.
    (2) Subsection (l) of such section is amended by adding at the end 
the following:
            ``(4) The term `compensation', for a fiscal year, means the 
        total amount of wages, salary, bonuses and deferred 
        compensation for the fiscal year, whether paid, earned, or 
        otherwise accruing, as recorded in an employer's cost 
        accounting records for the fiscal year.
            ``(5) The term `senior executive', with respect to a 
        contractor, means--
                    ``(A) the chief executive officer of the contractor 
                or any individual acting in a similar capacity for the 
                contractor;
                    ``(B) the five most highly compensated employees in 
                management positions of the contractor other than the 
                chief executive officer; and
                    ``(C) in the case of a contractor that has 
                components managed by personnel who report on the 
                operations of the components directly to officers of 
                the contractor, the five most highly compensated 
                individuals in management positions at each such 
                component.''.
    (b) Certain Compensation Not Allowable as Costs Under Non-Defense 
Contracts.--(1) Subsection (e)(1) of section 306 of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 256) is 
amended by adding at the end the following:
            ``(P) Costs of compensation of senior executives of 
        contractors for a fiscal year, to the extent that such 
        compensation exceeds the benchmark compensation amount 
        determined applicable for the fiscal year by the Administrator 
        for Federal Procurement Policy under section 39 of the Office 
        of Federal Procurement Policy Act (41 U.S.C. 435).''.
    (2) Such section is further amended by adding at the end the 
following:
    ``(m) Other Definitions.--In this section:
            ``(1) The term `compensation', for a fiscal year, means the 
        total amount of wages, salary, bonuses and deferred 
        compensation for the fiscal year, whether paid, earned, or 
        otherwise accruing, as recorded in an employer's cost 
        accounting records for the fiscal year.
            ``(2) The term `senior executive', with respect to a 
        contractor, means--
                    ``(A) the chief executive officer of the contractor 
                or any individual acting in a similar capacity for the 
                contractor;
                    ``(B) the five most highly compensated employees in 
                management positions of the contractor other than the 
                chief executive officer; and
                    ``(C) in the case of a contractor that has 
                components managed by personnel who report on the 
                operations of the components directly to officers of 
                the contractor, the five most highly compensated 
                individuals in management positions at each such 
                component.''.
    (c) Levels of Compensation Not Allowable.--(1) The Office of 
Federal Procurement Policy Act (41 U.S.C. 401 et seq.) is amended by 
adding at the end the following:

``SEC. 39. LEVELS OF COMPENSATION OF CERTAIN CONTRACTOR PERSONNEL NOT 
              ALLOWABLE AS COSTS UNDER CERTAIN CONTRACTS.

    ``(a) Determination Required.--For purposes of section 
2324(e)(1)(P) of title 10, United States Code, and section 306(e)(1)(P) 
of the Federal Property and Administrative Services Act of 1949 (41 
U.S.C. 256(e)(1)(P)), the Administrator shall review commercially 
available surveys of executive compensation and, on the basis of the 
results of the review, determine a benchmark compensation amount to 
apply for each fiscal year. In making determinations under this 
subsection the Administrator shall consult with the Director of the 
Defense Contract Audit Agency and such other officials of executive 
agencies as the Administrator considers appropriate.
    ``(b) Benchmark Compensation Amount.--The benchmark compensation 
amount applicable for a fiscal year is the median amount of the 
compensation provided for all senior executives of all benchmark 
corporations for the most recent year for which data is available at 
the time the determination under subsection (a) is made.
    ``(c) Definitions.--In this section:
            ``(1) The term `compensation', for a year, means the total 
        amount of wages, salary, bonuses and deferred compensation for 
        the year, whether paid, earned, or otherwise accruing, as 
        recorded in an employer's cost accounting records for the year.
            ``(2) The term `senior executive', with respect to a 
        corporation, means--
                    ``(A) the chief executive officer of the 
                corporation or any individual acting in a similar 
                capacity for the corporation;
                    ``(B) the five most highly compensated employees in 
                management positions of the corporation other than the 
                chief executive officer; and
                    ``(C) in the case of a corporation that has 
                components managed by personnel who report on the 
                operations of the components directly to officers of 
                the corporation, the five most highly compensated 
                individuals in management positions at each such 
                component.
            ``(3) The term `benchmark corporation', with respect to a 
        year, means a publicly-owned United States corporation that has 
        annual sales in excess of $50,000,000 for the year.
            ``(4) The term `publicly-owned United States corporation' 
        means a corporation organized under the laws of a State of the 
        United States, the District of Columbia, the Commonwealth of 
        Puerto Rico, or a possession of the United States the voting 
        stock of which is publicly traded.''.
    (2) The table of sections in section 1(b) of such Act is amended by 
adding at the end the following:

``Sec. 39. Levels of compensation of certain contractor personnel not 
                            allowable as costs under certain 
                            contracts.''.
    (d) Regulations.--Regulations implementing the amendments made by 
this section shall be published in the Federal Register not later than 
the effective date of the amendments under subsection (e).
    (e) Effective Date.--(1) The amendments made by this section shall 
take effect on the date that is 90 days after the date of the enactment 
of this Act and shall apply with respect to payments that become due 
from the United States after that date under covered contracts entered 
into before, on, or after that date.
    (2) In paragraph (1), the term ``covered contract'' has the meaning 
given such term in section 2324(l) of title 10, United States Code, and 
section 306(l) of the Federal Property and Administrative Services Act 
of 1949 (41 U.S.C. 256(l)).

SEC. 805. INCREASED PRICE LIMITATION ON PURCHASES OF RIGHT-HAND DRIVE 
              VEHICLES.

    Section 2253(a)(2) of title 10, United States Code, is amended by 
striking out ``$12,000'' and inserting in lieu thereof ``$30,000''.

SEC. 806. CONVERSION OF DEFENSE CAPABILITY PRESERVATION AUTHORITY TO 
              NAVY SHIPBUILDING CAPABILITY PRESERVATION AUTHORITY.

    (a) Authority of Secretary of the Navy.--Section 808 of the 
National Defense Authorization Act for Fiscal Year 1996 (Public Law 
104-106; 110 Stat. 393; 10 U.S.C. 2501) is amended--
            (1) in subsection (a), by striking out ``Secretary of 
        Defense'' and inserting in lieu thereof ``Secretary of the 
        Navy''; and
            (2) in subsection (b)(2), by striking out ``Secretary of 
        Defense if the Secretary of Defense'' and inserting in lieu 
        thereof ``Secretary of the Navy if the Secretary''.
    (b) Name of Agreements.--Subsection (a) of such section is 
amended--
            (1) by striking out ``Defense Capability Preservation 
        Agreement.--'' and inserting in lieu thereof ``Shipbuilding 
        Capability Preservation Agreement.--''; and
            (2) by striking out ```defense capability preservation 
        agreement''' and inserting in lieu thereof ```shipbuilding 
        capability preservation agreement'''.
    (c) Scope of Authority.--(1) The first sentence of subsection (a) 
of such section is amended--
            (A) by striking out ``defense contractor'' and inserting in 
        lieu thereof ``shipbuilder''; and
            (B) by adding at the end the following ``to the shipbuilder 
        under a Navy contract for the construction of a ship''.
    (2) Subsection (b)(1)(A) of such section is amended by striking out 
``defense contract'' and inserting in lieu thereof ``contract for the 
construction of a ship for the Navy''.
    (d) Maximum Amount of Allocable Indirect Costs.--Subsection 
(b)(1)(C) of such section is amended--
            (1) by striking out ``in any year of'' and inserting in 
        lieu thereof ``covered by''; and
            (2) by striking out ``that year'' and inserting in lieu 
        thereof ``the period covered by the agreement''.
    (e) Applicability.--Such section is further amended by striking out 
subsections (c), (d), and (e) and inserting in lieu thereof the 
following:
    ``(c) Applicability.--(1) An agreement entered into with a 
shipbuilder under subsection (a) shall apply to each of the following 
Navy contracts with the shipbuilder:
            ``(A) A contract that is in effect on the date on which the 
        agreement is entered into.
            ``(B) A contract that is awarded during the term of the 
        agreement.
    ``(2) In a shipbuilding capability preservation agreement 
applicable to a shipbuilder, the Secretary may agree to apply the cost 
reimbursement rules set forth in subsection (b) to allocations of 
indirect costs to private sector work performed by the shipbuilder only 
with respect to costs that the shipbuilder incurred on or after the 
date of the enactment of the National Defense Authorization Act for 
Fiscal Year 1998 under a contract between the shipbuilder and a private 
sector customer of the shipbuilder that became effective on or after 
January 26, 1996.''.
    (f) Implementation and Report.--Such section is further amended 
adding at the end the following:
    ``(d) Implementation.--Not later than 30 days after the date of the 
enactment of the National Defense Authorization Act for Fiscal Year 
1998, the Secretary of the Navy shall establish application procedures 
and procedures for expeditious consideration of shipbuilding capability 
preservation agreements as authorized by this section.
    ``(e) Report.--Not later than February 15, 1998, the Secretary of 
the Navy shall submit to the congressional defense committees a report 
on applications for shipbuilding capability preservation agreements. 
The report shall contain the number of the applications received, the 
number of the applications approved, and a discussion of the reasons 
for disapproval of any applications disapproved.''.
    (g) Section Heading.--The heading for such section is amended by 
striking out ``defense'' and inserting in lieu thereof ``certain''.

SEC. 807. ELIMINATION OF CERTIFICATION REQUIREMENT FOR GRANTS.

    Section 5153 of the Drug-Free Workplace Act of 1988 (Public Law 
100-690; 102 Stat. 4306; 41 U.S.C. 702) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking out ``has 
                certified to the granting agency that it will'' and 
                inserting in lieu thereof ``agrees to''; and
                    (B) in paragraph (2), by striking out ``certifies 
                to the agency'' and inserting in lieu thereof 
                ``agrees''; and
            (2) in subsection (b)(1)--
                    (A) by striking out subparagraph (A);
                    (B) by redesignating subparagraphs (B) and (C) as 
                subparagraphs (A) and (B), respectively; and
                    (C) in subparagraph (A), as so redesignated, by 
                striking out ``such certification by failing to carry 
                out''.

SEC. 808. REPEAL OF LIMITATION ON ADJUSTMENT OF SHIPBUILDING CONTRACTS.

    (a) Repeal.--(1) Section 2405 of title 10, United States Code, is 
repealed.
    (2) The table of sections at the beginning of chapter 141 of such 
title is amended by striking out the item relating to section 2405.
    (b) Applicability.--(1) Except as provided in paragraph (2), the 
amendments made by subsection (a) shall apply to claims, requests for 
equitable adjustment, and demands for payment under shipbuilding 
contracts that have been or are submitted before, on, or after the date 
of the enactment of this Act.
    (2) Section 2405 of title 10, United States Code, as in effect 
immediately before the date of the enactment of this Act, shall 
continue to apply to a contractor's claim, request for equitable 
adjustment, or demand for payment under a shipbuilding contract that 
was submitted before such date if--
            (A) a contracting officer denied the claim, request, or 
        demand, and the period for appealing the decision to a court or 
        board under the Contract Disputes Act of 1978 expired before 
        such date;
            (B) a court or board of contract appeals considering the 
        claim, request, or demand (including any appeal of a decision 
        of a contracting officer to deny or dismiss the claim, request, 
        or demand) denied the claim, request, or demand (or the 
        appeal), and the action of the court or board became final and 
        unappealable before such date; or
            (C) the contractor released or releases the claim, request, 
        or demand.

                    Subtitle B--Contract Provisions

SEC. 811. CONTRACTOR GUARANTEES OF MAJOR SYSTEMS.

    (a) Revision of Requirement.--Section 2403 of title 10, United 
States Code, is amended to read as follows:
``Sec. 2403. Major systems: contractor guarantees
    ``(a) Guarantee Required.--In any case in which the head of an 
agency determines that it is appropriate and cost effective to do so in 
entering into a contract for the production of a major system, the head 
of an agency shall, except as provided in subsection (b), require the 
prime contractor to provide the United States with a written guarantee 
that--
            ``(1) the item provided under the contract will conform to 
        the design and manufacturing requirements specifically 
        delineated in the production contract (or in any amendment to 
        that contract);
            ``(2) the item provided under the contract will be free 
        from all defects in materials and workmanship at the time it is 
        delivered to the United States;
            ``(3) the item provided under the contract will conform to 
        the essential performance requirements of the item as 
        specifically delineated in the production contract (or in any 
        amendment to that contract); and
            ``(4) if the item provided under the contract fails to meet 
        a guarantee required under paragraph (1), (2), or (3), the 
        contractor will, at the election of the Secretary of Defense or 
        as otherwise provided in the contract--
                    ``(A) promptly take such corrective action as may 
                be necessary to correct the failure at no additional 
                cost to the United States; or
                    ``(B) pay costs reasonably incurred by the United 
                States in taking such corrective action.
    ``(b) Exception.--The head of an agency may not require a prime 
contractor under subsection (a) to provide a guarantee for a major 
system, or for a component of a major system, that is furnished by the 
United States.
    ``(c) Definitions.--In this section:
            ``(1) The term `prime contractor' means a party that enters 
        into an agreement directly with the United States to furnish 
        part or all of a major system.
            ``(2) The term `design and manufacturing requirements' 
        means structural and engineering plans and manufacturing 
        particulars, including precise measurements, tolerances, 
        materials, and finished product tests for the major system 
        being produced.
            ``(3) The term `essential performance requirements', with 
        respect to a major system, means the operating capabilities or 
        maintenance and reliability characteristics of the system that 
        are determined by the Secretary of Defense to be necessary for 
        the system to fulfill the military requirement for which the 
        system is designed.
            ``(4) The term `component' means any constituent element of 
        a major system.
            ``(5) The term `head of an agency' has the meaning given 
        that term in section 2302 of this title.''.
    (b) Clerical Amendment.--The item relating to such section in the 
table of sections at the beginning of chapter 141 of such title is 
amended to read as follows:

``2403. Major systems: contractor guarantees.''.

SEC. 812. VESTING OF TITLE IN THE UNITED STATES UNDER CONTRACTS PAID 
              UNDER PROGRESS PAYMENT ARRANGEMENTS OR SIMILAR 
              ARRANGEMENTS.

    Section 2307 of title 10, United States Code, is amended--
            (1) by redesignating subsection (h) as subsection (i); and
            (2) by inserting after subsection (g) the following new 
        subsection (h):
    ``(h) Vesting of Title in the United States.--If a contract paid by 
a method authorized under subsection (a)(1) provides for title to 
property to vest in the United States, the title to the property shall 
vest in accordance with the terms of the contract, regardless of any 
security interest in the property that is asserted before or after the 
contract is entered into.''.

              Subtitle C--Acquisition Assistance Programs

SEC. 821. PROCUREMENT TECHNICAL ASSISTANCE PROGRAMS.

    (a) Funding.--Of the amount authorized to be appropriated under 
section 301(5), $12,000,000 shall be available for carrying out the 
provisions of chapter 142 of title 10, United States Code.
    (b) Specific Programs.--Of the amounts made available pursuant to 
subsection (a), $600,000 shall be available for fiscal year 1998 for 
the purpose of carrying out programs sponsored by eligible entities 
referred to in subparagraph (D) of section 2411(1) of title 10, United 
States Code, that provide procurement technical assistance in 
distressed areas referred to in subparagraph (B) of section 2411(2) of 
such title. If there is an insufficient number of satisfactory 
proposals for cooperative agreements in such distressed areas to allow 
effective use of the funds made available in accordance with this 
subsection in such areas, the funds shall be allocated among the 
Defense Contract Administration Services regions in accordance with 
section 2415 of such title.

SEC. 822. ONE-YEAR EXTENSION OF PILOT MENTOR-PROTEGE PROGRAM.

    Section 831(j) of the National Defense Authorization Act for Fiscal 
Year 1991 (10 U.S.C. 2302 note) is amended--
            (1) in paragraph (1), by striking out ``1998'' and 
        inserting in lieu thereof ``1999'';
            (2) in paragraph (2), by striking out ``1999'' and 
        inserting in lieu thereof ``2000''; and
            (3) in paragraph (3), by striking out ``1999'' and 
        inserting in lieu thereof ``2000''.

SEC. 823. TEST PROGRAM FOR NEGOTIATION OF COMPREHENSIVE SUBCONTRACTING 
              PLANS.

    (a) Content of Subcontracting Plans.--Subsection (b)(2) of section 
834 of the National Defense Authorization Act for Fiscal Years 1990 and 
1991 (Public Law 101-189; 15 U.S.C. 637 note) is amended--
            (1) by striking out ``plan--'' and inserting in lieu 
        thereof ``plan of a contractor--'';
            (2) by striking out subparagraph (A);
            (3) by redesignating subparagraph (B) as subparagraph (A) 
        and by striking out the period at the end of such subparagraph 
        and inserting in lieu thereof ``; and''; and
            (4) by adding at the end the following:
            ``(B) shall cover each Department of Defense contract that 
        is entered into by the contractor and each subcontract that is 
        entered into by the contractor as the subcontractor under a 
        Department of Defense contract.''.
    (b) Extension of Program.--Subsection (e) of such section is 
amended by striking out ``September 30, 1998'' in the second sentence 
and inserting in lieu thereof ``September 30, 2000.''.

SEC. 824. PRICE PREFERENCE FOR SMALL AND DISADVANTAGED BUSINESSES.

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

                 Subtitle D--Administrative Provisions

SEC. 831. RETENTION OF EXPIRED FUNDS DURING THE PENDENCY OF CONTRACT 
              LITIGATION.

    (a) In General.--Chapter 141 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 2410m. Retention of amounts collected from contractor during the 
              pendency of contract dispute
    ``(a) Retention of Funds.--Notwithstanding sections 1552(a) and 
3302(b) of title 31, any amount, including interest, collected from a 
contractor as a result of a claim made by an executive agency under the 
Contract Disputes Act of 1978 (41 U.S.C. 601 et seq.), shall remain 
available in accordance with this section to pay--
            ``(1) any settlement of the claim by the parties;
            ``(2) any judgment rendered in the contractor's favor on an 
        appeal of the decision on that claim to the Armed Services 
        Board of Contract Appeals under section 7 of such Act (41 
        U.S.C. 606); or
            ``(3) any judgment rendered in the contractor's favor in an 
        action on that claim in a court of the United States.
    ``(b) Period of Availability.--(1) The period of availability of an 
amount under subsection (a), in connection with a claim--
            ``(A) expires 180 days after the expiration of the period 
        for bringing an action on that claim in the United States Court 
        of Federal Claims under section 10(a) of the Contract Disputes 
        Act of 1978 (41 U.S.C. 609(a)) if, within that 180-day period--
                    ``(i) no appeal on the claim is commenced at the 
                Armed Services Board of Contract Appeals under section 
                7 of the Contract Disputes Act of 1978; and
                    ``(ii) no action on the claim is commenced in a 
                court of the United States; or
            ``(B) if not expiring under subparagraph (A), expires--
                    ``(i) in the case of a settlement of the claim, 180 
                days after the date of the settlement; or
                    ``(ii) in the case of a judgment rendered on the 
                claim in an appeal to the Armed Services Board of 
                Contract Appeals under section 7 of the Contract 
                Disputes Act of 1978 or an action in a court of the 
                United States, 180 days after the date on which the 
                judgment becomes final and not appealable.
    ``(2) While available under this section, an amount may be 
obligated or expended only for the purpose described in subsection (a).
    ``(3) Upon the expiration of the period of availability of an 
amount under paragraph (1), the amount shall be deposited in the 
Treasury as miscellaneous receipts.
    ``(c) Reporting Requirement.--Each year, the Under Secretary of 
Defense (Comptroller) shall submit to Congress a report on the amounts, 
if any, that are available for obligation pursuant to this section. The 
report shall include, at a minimum, the following:
            ``(1) The total amount available for obligation.
            ``(2) The total amount collected from contractors during 
        the year preceding the year in which the report is submitted.
            ``(3) The total amount disbursed in such preceding year and 
        a description of the purpose for each disbursement.
            ``(4) The total amount returned to the Treasury in such 
        preceding year.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 141 of title 10, United States Code, is amended by adding at 
the end the following new item:

``2410m. Retention of amounts collected from contractor during the 
                            pendency of contract dispute.''.

SEC. 832. PROTECTION OF CERTAIN INFORMATION FROM DISCLOSURE.

    Section 2371 of title 10, United States Code, is amended by 
inserting after subsection (h) the following:
    ``(i) Protection of Certain Information From Disclosure.--(1) 
Disclosure of information described in paragraph (2) is not required, 
and may not be compelled, under section 552 of title 5 for five years 
after the date on which the information is received by the Department 
of Defense.
    ``(2)(A) Paragraph (1) applies to information described in 
subparagraph (B) that is in the records of the Department of Defense if 
the information was submitted to the department in a competitive or 
noncompetitive process having the potential for resulting in an award, 
to the party submitting the information, of a cooperative agreement 
that includes a clause described in subsection (d) or another 
transaction authorized under subsection (a).
    ``(B) The information referred to in subparagraph (A) is the 
following:
            ``(i) A proposal, proposal abstract, and supporting 
        documents.
            ``(ii) A business plan submitted on a confidential basis.
            ``(iii) Technical information submitted on a confidential 
        basis.''.

SEC. 833. CONTENT OF LIMITED SELECTED ACQUISITION REPORTS.

    Section 2432(h)(2) of title 10, United States Code, is amended--
            (1) by striking out subparagraph (D); and
            (2) by redesignating subparagraphs (E) and (F) as 
        subparagraphs (D) and (E), respectively.

SEC. 834. UNIT COST REPORTS.

    (a) Immediate Report Required Only for Previously Unreported 
Increased Costs.--Subsection (c) of section 2433 of title 10, United 
States Code, is amended by striking out ``during the current fiscal 
year (other than the last quarterly unit cost report under subsection 
(b) for the preceding fiscal year)'' in the matter following paragraph 
(3).
    (b) Immediate Report Not Required for Cost Variances or Schedule 
Variances of Major Contracts.--Subsection (c) of such section is 
further amended--
            (1) by inserting ``or'' at the end of paragraph (1);
            (2) by striking out ``or'' at the end of paragraph (2); and
            (3) by striking out paragraph (3).
    (c) Congressional Notification of Increased Cost Not Conditioned on 
Discovery Since Beginning of Fiscal Year.--Subsection (d)(3) of such 
section is amended by striking out ``(for the first time since the 
beginning of the current fiscal year)'' in the first sentence.

SEC. 835. CENTRAL DEPARTMENT OF DEFENSE POINT OF CONTACT FOR 
              CONTRACTING INFORMATION.

    (a) Designation of Official.--The Under Secretary of Defense for 
Acquisition and Technology shall designate an official within the 
Office of the Under Secretary of Defense for Acquisition and Technology 
to serve as a central point of contact for persons seeking information 
described in subsection (b).
    (b) Available Information.--Upon request, the official designated 
under subsection (a) shall provide information on the following:
            (1) How and where to submit unsolicited proposals for 
        research, development, test, and evaluation or for furnishing 
        property or services to the Department of Defense.
            (2) Department of Defense solicitations for offers that are 
        open for response and the procedures for responding to the 
        solicitations.
            (3) Procedures for being included on any list of approved 
        suppliers used by the Department of Defense.
    (c) Availability of Information.--The official designated under 
subsection (a) shall use a variety of means for making the information 
described in subsection (b) readily available to potential contractors 
for the Department of Defense. The means shall include the 
establishment of one or more toll-free automated telephone lines, 
posting of information about the services of the official on generally 
accessible computer communications networks, and advertising.

                       Subtitle E--Other Matters

SEC. 841. DEFENSE BUSINESS COMBINATIONS.

    (a) Extension of Requirement for Reports on Payment of 
Restructuring Costs.--Section 818(e) of the National Defense 
Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 
1821; 10 U.S.C. 2324 note) is amended by striking out ``1995, 1996, and 
1997'' and inserting in lieu thereof ``1997, 1998, and 1999''.
    (b) Secretary of Defense Reports.--Not later than March 1 in each 
of the years 1998, 1999, and 2000, the Secretary of Defense shall 
submit to the congressional defense committees a report on effects on 
competition resulting from any business combinations of major defense 
contractors that took place during the year preceding the year of the 
report. The report shall include, for each business combination 
reviewed by the Department pursuant to Department of Defense Directive 
5000.62, the following:
            (1) An assessment of any potentially adverse effects that 
        the business combination could have on competition for 
        Department of Defense contracts (including potential horizontal 
        effects, vertical effects, and organizational conflicts of 
        interest), the national technology and industrial base, or 
        innovation in the defense industry.
            (2) The actions taken to mitigate the potentially adverse 
        effects.
    (c) GAO Reports.--(1) Not later than December 1, 1997, the 
Comptroller General shall--
            (A) in consultation with appropriate officials in the 
        Department of Defense--
                    (i) identify major market areas adversely affected 
                by business combinations of defense contractors since 
                January 1, 1990; and
                    (ii) develop a methodology for determining the 
                beneficial impact of business combinations of defense 
                contractors on the prices paid on particular defense 
                contracts; and
            (B) submit to the congressional defense committees a report 
        describing, for each major market area identified pursuant to 
        subparagraph (A)(i), the changes in numbers of businesses 
        competing for major defense contracts since January 1, 1990.
    (2) Not later than December 1, 1998, the Comptroller General shall 
submit to the congressional defense committees a report containing the 
following:
            (A) Updated information on--
                    (i) restructuring costs of business combinations 
                paid by the Department of Defense pursuant to 
                certifications under section 818 of the National 
                Defense Authorization Act for Fiscal Year 1995, and
                    (ii) savings realized by the Department of Defense 
                as a result of the business combinations for which the 
                payment of restructuring costs was so certified.
            (B) An assessment of the beneficial impact of business 
        combinations of defense contractors on the prices paid on a 
        meaningful sample of defense contracts, determined in 
        accordance with the methodology developed pursuant to paragraph 
        (1)(A)(ii).
            (C) Any recommendations that the Comptroller General 
        considers appropriate.
    (d) Business Combination Defined.--In this section, the term 
``business combination'' has the meaning given that term in section 
818(f) of the National Defense Authorization Act for Fiscal Year 1995 
(108 Stat. 2822; 10 U.S.C. 2324 note).

SEC. 842. LEASE OF NONEXCESS PROPERTY OF DEFENSE AGENCIES.

    (a) Authority.--Chapter 159 of title 10, United States Code, is 
amended by inserting after section 2667 the following:
``Sec. 2667a. Leases: non-excess property of Defense Agencies
    ``(a) Authority.--Whenever the Director of a Defense Agency 
considers it advantageous to the United States, he may lease to such 
lessee and upon such terms as he considers will promote the national 
defense or to be in the public interest, personal property that is--
            ``(1) under the control of the Defense Agency;
            ``(2) not for the time needed for public use; and
            ``(3) not excess property, as defined by section 3 of the 
        Federal Property and Administrative Services Act of 1949 (40 
        U.S.C. 472).
    ``(b) Limitation, Terms, and Conditions.--A lease under subsection 
(a)--
            ``(1) may not be for more than five years unless the 
        Director of the Defense Agency concerned determines that a 
        lease for a longer period will promote the national defense or 
        be in the public interest;
            ``(2) may give the lessee the first right to buy the 
        property if the lease is revoked to allow the United States to 
        sell the property under any other provision of law;
            ``(3) shall permit the Director to revoke the lease at any 
        time, unless he determines that the omission of such a 
        provision will promote the national defense or be in the public 
        interest; and
            ``(4) may provide, notwithstanding any other provision of 
        law, for the improvement, maintenance, protection, repair, 
        restoration, or replacement by the lessee, of the property 
        leased as the payment of part or all of the consideration for 
        the lease.
    ``(c) Disposition of Money Rent.--Money rentals received pursuant 
to leases entered into by the Director of a Defense Agency under 
subsection (a) shall be deposited in a special account in the Treasury 
established for such Defense Agency. Amounts in a Defense Agency's 
special account shall be available, to the extent provided in 
appropriations Acts, solely for the maintenance, repair, restoration, 
or replacement of the leased property.''.
    (b) Conforming Amendment.--The heading of section 2667 of such 
title is amended to read as follows:
``Sec. 2667. Leases: non-excess property of military departments''.
    (c) Clerical Amendment.--The table of sections at the beginning of 
chapter 159 of such title is amended by striking out the item relating 
to section 2667 and inserting in lieu thereof the following:

``2667. Leases: non-excess property of military departments.
``2667a. Leases: non-excess property of Defense Agencies.''.

SEC. 843. PROMOTION RATE FOR OFFICERS IN AN ACQUISITION CORPS.

    (a) Review of Acquisition Corps Promotion Selections.--Upon the 
approval of the President or his designee of the report of a selection 
board convened under section 611(a) of title 10, United States Code, 
which considered members of an Acquisition Corps of a military 
department for promotion to a grade above O-4, the Secretary of the 
military department shall submit a copy of the report to the Under 
Secretary of Defense for Acquisition and Technology for review.
    (b) Reporting Requirement.--Not later than January 31 of each year, 
the Under Secretary of Defense for Acquisition and Technology shall 
submit to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives a report 
containing the Under Secretary's assessment of the extent to which each 
military department is complying with the requirement set forth in 
section 1731(b) of title 10, United States Code.
    (c) Termination of Requirements.--This section shall cease to be 
effective on October 1, 2000.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

SEC. 901. PRINCIPAL DUTY OF ASSISTANT SECRETARY OF DEFENSE FOR SPECIAL 
              OPERATIONS AND LOW INTENSITY CONFLICT.

    Section 138(b)(4) of title 10, United States Code, is amended by 
striking out ``of special operations activities (as defined in section 
167(j) of this title) and'' and inserting in lieu thereof ``of the 
performance of the responsibilities of the commander of the special 
operations command under subsections (e)(4) and (f) of section 167 of 
this title and of''.

SEC. 902. PROFESSIONAL MILITARY EDUCATION SCHOOLS.

    (a) Component Institutions of the National Defense University.--(1) 
Chapter 108 of title 10, United States Code, is amended by adding at 
the end the following:
``Sec. 2165. National Defense University
    ``(a) In General.--There is a National Defense University in the 
Department of Defense.
    ``(b) Component Institutions.--The university includes the 
following institutions:
            ``(1) The National War College.
            ``(2) The Industrial College of the Armed Forces.
            ``(3) The Armed Forces Staff College.
            ``(4) The Institute for National Strategic Studies.
            ``(5) The Information Resources Management College.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following:

``2165. National Defense University.''.
    (b) Marine Corps University as Professional Military Education 
School.--Subsection (d) of section 2162 of such title is amended to 
read as follows:
    ``(d) Professional Military Education Schools.--This section 
applies to the following professional military education schools:
            ``(1) The National Defense University.
            ``(2) The Army War College.
            ``(3) The College of Naval Warfare.
            ``(4) The Air War College.
            ``(5) The United States Army Command and General Staff 
        College.
            ``(6) The College of Naval Command and Staff.
            ``(7) The Air Command and Staff College.
            ``(8) The Marine Corps University.''.
    (c) Repeal of Duplicative Definition.--Section 1595(d) of title 10, 
United States Code, is amended--
            (1) in paragraph (1), by striking out ``(1)''; and
            (2) by striking out paragraph (2).

SEC. 903. USE OF CINC INITIATIVE FUND FOR FORCE PROTECTION.

    Section 166a(b) of title 10, United States Code, is amended by 
adding at the end the following:
            ``(9) Force protection.''.

SEC. 904. TRANSFER OF TIARA PROGRAMS.

    (a) Transfer of Functions.--The Secretary of Defense shall 
transfer--
            (1) the responsibilities of the Tactical Intelligence and 
        Related Activities (TIARA) aggregation for the conduct of 
        programs referred to in subsection (b) to officials of elements 
        of the military departments not in the intelligence community; 
        and
            (2) the funds available within the Tactical Intelligence 
        and Related Activities aggregation for such programs to 
        accounts of the military departments that are available for 
        non-intelligence programs of the military departments.
    (b) Covered Programs.--Subsection (a) applies to the following 
programs:
            (1) Targeting or target acquisition programs, including the 
        Joint Surveillance and Target Attack Radar System, and the 
        Advanced Deployable System.
            (2) Tactical Warning and Attack Assessment programs, 
        including the Defense Support Program, the Space-Based Infrared 
        Program, and early warning radars.
            (3) Tactical communications systems, including the Joint 
        Tactical Terminal.
    (c) Intelligence Community Defined.--In this section, the term 
``intelligence community'' has the meaning given the term in section 3 
of the National Security Act of 1947 (50 U.S.C. 401a).

                      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 1998 between any such authorizations for that fiscal year (or any 
subdivisions thereof). Amounts of authorizations so transferred shall 
be merged with and be available for the same purposes as the 
authorization to which transferred.
    (2) The total amount of authorizations that the Secretary of 
Defense may transfer under the authority of this section may not exceed 
$2,500,000,000.
    (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. AUTHORITY FOR OBLIGATION OF CERTAIN UNAUTHORIZED FISCAL YEAR 
              1997 DEFENSE APPROPRIATIONS.

    (a) Authority.--The amounts described in subsection (b) may be 
obligated and expended for programs, projects, and activities of the 
Department of Defense in accordance with fiscal year 1997 defense 
appropriations.
    (b) Covered Amounts.--The amounts referred to in subsection (a) are 
the amounts provided for programs, projects, and activities of the 
Department of Defense in fiscal year 1997 defense appropriations that 
are in excess of the amounts provided for such programs, projects, and 
activities in fiscal year 1997 defense authorizations.
    (c) Definitions.--For the purposes of this section:
            (1) Fiscal year 1997 defense appropriations.--The term 
        ``fiscal year 1997 defense appropriations'' means amounts 
        appropriated or otherwise made available to the Department of 
        Defense for fiscal year 1997 in the Department of Defense 
        Appropriations Act, 1997 (section 101(b) of Public Law 104-
        208).
            (2) Fiscal year 1997 defense authorizations.--The term 
        ``fiscal year 1997 defense authorizations'' means amounts 
        authorized to be appropriated for the Department of Defense for 
        fiscal year 1997 in the National Defense Authorization Act for 
        Fiscal Year 1997 (Public Law 104-201).

SEC. 1003. AUTHORIZATION OF PRIOR EMERGENCY SUPPLEMENTAL APPROPRIATIONS 
              FOR FISCAL YEAR 1997.

    Amounts authorized to be appropriated to the Department of Defense 
for fiscal year 1997 in the National Defense Authorization Act for 
Fiscal Year 1997 (Public Law 104-201) 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 1997 
Emergency Supplemental Appropriations Act for Recovery from Natural 
Disasters, and for Overseas Peacekeeping Efforts, Including Those in 
Bosnia (Public Law 105-18).

SEC. 1004. INCREASED TRANSFER AUTHORITY FOR FISCAL YEAR 1996 
              AUTHORIZATIONS.

    Section 1001(a) of the National Defense Authorization Act for 
Fiscal Year 1996 (Public Law 104-106; 110 Stat. 414) is amended by 
striking out ``$2,000,000,000'' and inserting in lieu thereof 
``$3,100,000,000''.

SEC. 1005. BIENNIAL FINANCIAL MANAGEMENT STRATEGIC PLAN.

    (a) Biennial Plan.--(1) Chapter 23 of title 10, United States Code, 
is amended by adding at the end the following:
``Sec. 483. Biennial financial management strategic plan
    ``(a) Plan Required.--Not later than September 30 of each even-
numbered year, the Secretary of Defense shall submit to Congress a 
strategic plan to improve the financial management within the 
Department of Defense. The strategic plan shall address all aspects of 
financial management within the Department of Defense, including the 
finance systems, accounting systems, and feeder systems that support 
financial functions.
    ``(b) Definitions.--In this section, the term `feeder system' means 
an automated or manual system that provides input to a financial 
management or accounting system.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following:

``483. Biennial financial management strategic plan.''.
    (b) First Submission.--The Secretary of Defense shall submit the 
first financial management strategic plan under section 483 of title 
10, United States Code (as added by subsection (a)), not later than 
September 30, 1998.
    (c) Content of First Plan.--(1) At a minimum, the first financial 
management strategic plan shall include the following:
            (A) The costs and benefits of integrating the finance and 
        accounting systems of the Department of Defense, and the 
        feasibility of doing so.
            (B) Problems with the accuracy of data included in the 
        finance systems, accounting systems, or feeder systems that 
        support financial functions of the Department of Defense and 
        the actions that can be taken to address the problems.
            (C) Weaknesses in the internal controls of the systems and 
        the actions that can be taken to address the weaknesses.
            (D) Actions that can be taken to eliminate negative 
        unliquidated obligations, unmatched disbursements, and in-
        transit disbursements, and to avoid such disbursements in the 
        future.
            (E) The status of the efforts being undertaken in the 
        department to consolidate and eliminate--
                    (i) redundant or unneeded finance systems; and
                    (ii) redundant or unneeded accounting systems.
            (F) The consolidation or elimination of redundant personnel 
        systems, acquisition systems, asset accounting systems, time 
        and attendance systems, and other feeder systems of the 
        department.
            (G) The integration of the feeder systems of the department 
        with the finance and accounting systems of the department.
            (H) Problems with the organization or performance of the 
        Operating Locations and Service Centers of the Defense Finance 
        and Accounting Service, and the actions that can be taken to 
        address those problems.
            (I) The costs and benefits of reorganizing the Operating 
        Locations and Service Centers of the Defense Finance and 
        Accounting Service according to function, and the feasibility 
        of doing so.
            (J) The costs and benefits of contracting for private 
        sector performance of specific functions performed by the 
        Defense Finance and Accounting Service, and the feasibility of 
        doing so.
            (K) The costs and benefits of increasing the use of 
        electronic fund transfer as a method of payment, and the 
        feasibility of doing so.
            (L) Any other changes in the financial management structure 
        of the department or revisions of the department's financial 
        processes and business practices that the Secretary of Defense 
        considers necessary to improve financial management in the 
        department.
    (2) For the problems and actions identified in the plan, the 
Secretary shall include in the plan statements of objectives, 
performance measures, and schedules, and shall specify the individual 
and organizational responsibilities.
    (3) In this subsection, the term ``feeder system'' has the meaning 
given the term in section 483(b) of title 10, United States Code, as 
added by subsection (a).

SEC. 1006. REVISION OF AUTHORITY FOR FISHER HOUSE TRUST FUNDS.

    (a) Correction To Eliminate Use of Term Associated With Funding 
Authorities.--Section 2221(c) of title 10, United States Code, is 
amended by striking out ``or maintenance'' each place it appears.
    (b) Corpus of Air Force Trust Fund.--Section 914(b) of Public Law 
104-106 (110 Stat. 412) is amended by striking out paragraph (2) and 
inserting in lieu thereof the following:
    ``(2) The Secretary of the Air Force shall deposit in the Fisher 
House Trust Fund, Department of the Air Force, an amount that the 
Secretary determines appropriate to establish the corpus of the 
fund.''.

SEC. 1007. AVAILABILITY OF CERTAIN FISCAL YEAR 1991 FUNDS FOR PAYMENT 
              OF CONTRACT CLAIM.

    (a) Authority.--The Secretary of the Army may reimburse the fund 
provided by section 1304 of title 31, United States Code, out of funds 
appropriated for the Army for fiscal year 1991 for other procurement 
(BLIN 105125 (Special Programs)), for any judgment against the United 
States that is rendered in the case Appeal of McDonnell Douglas 
Company, Armed Services Board of Contract Appeals Number 48029.
    (b) Conditions for Payment.--(1) Subject to paragraph (2), any 
reimbursement out of funds referred to in subsection (a) shall be made 
before October 1, 1998.
    (2) No reimbursement out of funds referred to in subsection (a) may 
be made before the date that is 30 days after the date on which the 
Secretary of the Army submits to the congressional defense committees a 
notification of the intent to make the reimbursement.

SEC. 1008. ESTIMATES AND REQUESTS FOR PROCUREMENT AND MILITARY 
              CONSTRUCTION FOR THE RESERVE COMPONENTS.

    (a) Detailed Presentation in Future-Years Defense Program.--Section 
10543 of title 10, United States Code, is amended--
            (1) by inserting ``(a) In General.--'' before ``The 
        Secretary of Defense''; and
            (2) by adding at the end the following:
    ``(b) Associated Annexes.--The associated annexes of the future-
years defense program shall specify, at the same level of detail as is 
set forth in the annexes for the active components, the amount 
requested for--
            ``(1) procurement of each item of equipment to be procured 
        for each reserve component; and
            ``(2) each military construction project to be carried out 
        for each reserve component, together with the location of the 
        project.
    ``(c) Report.--(1) If the aggregate of the amounts specified in 
paragraphs (1) and (2) of subsection (b) for a fiscal year is less than 
the amount equal to 90 percent of the average authorized amount 
applicable for that fiscal year under paragraph (2), the Secretary of 
Defense shall submit to Congress a report specifying for each reserve 
component the additional items of equipment that would be procured, and 
the additional military construction projects that would be carried 
out, if that aggregate amount were an amount equal to such average 
authorized amount. The report shall be at the same level of detail as 
is required by subsection (b).
    ``(2) In this subsection, the term `average authorized amount', 
with respect to a fiscal year, means the average of--
            ``(A) the aggregate of the amounts authorized to be 
        appropriated for the preceding fiscal year for the procurement 
        of items of equipment, and for military construction, for the 
        reserve components; and
            ``(B) the aggregate of the amounts authorized to be 
        appropriated for the fiscal year preceding the fiscal year 
        referred to in subparagraph (A) for the procurement of items of 
        equipment, and for military construction, for the reserve 
        components.''.
    (b) Prohibition.--The level of detail provided for procurement and 
military construction in the future-years defense programs for fiscal 
years after fiscal year 1998 may not be less than the level of detail 
provided for procurement and military construction in the future-years 
defense program for fiscal year 1998.

                Subtitle B--Naval Vessels and Shipyards

SEC. 1011. LONG-TERM CHARTER OF VESSEL FOR SURVEILLANCE TOWED ARRAY 
              SENSOR PROGRAM.

    The Secretary of the Navy is authorized to enter into a long-term 
charter, in accordance with section 2401 of title 10, United States 
Code, for a vessel to support the Surveillance Towed Array Sensor 
(SURTASS) Program through fiscal year 2004.

SEC. 1012. PROCEDURES FOR SALE OF VESSELS STRICKEN FROM THE NAVAL 
              VESSEL REGISTER.

    Section 7305(c) of title 10, United States Code, is amended to read 
as follows:
    ``(c) Procedures for Sale.--(1) A vessel stricken from the Naval 
Vessel Register and not subject to disposal under any other law may be 
sold under this section.
    ``(2) In such a case, the Secretary may--
            ``(A) sell the vessel to the highest acceptable bidder, 
        regardless of the appraised value of the vessel, after publicly 
        advertising the sale of the vessel for a period of not less 
        than 30 days; or
            ``(B) subject to paragraph (3), sell the vessel by 
        competitive negotiation to the acceptable offeror who submits 
the offer that is most advantageous to the United States (taking into 
account price and such other factors as the Secretary determines 
appropriate).
    ``(3) Before entering into negotiations to sell a vessel under 
paragraph (2)(B), the Secretary shall publish notice of the intention 
to do so in the Commerce Business Daily sufficiently in advance of 
initiating the negotiations that all interested parties are given a 
reasonable opportunity to prepare and submit proposals. The Secretary 
shall afford an opportunity to participate in the negotiations to all 
acceptable offerors submitting proposals that the Secretary considers 
as having the potential to be the most advantageous to the United 
States (taking into account price and such other factors as the 
Secretary determines appropriate).''.

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

    (a) Transfers by Sale.--The Secretary of the Navy is authorized to 
transfer vessels to foreign countries on a sale basis under section 21 
of the Arms Export Control Act (22 U.S.C. 2761) as follows:
            (1) To the Government of Brazil, the submarine tender 
        Holland (AS 32) of the Hunley class.
            (2) To the Government of Chile, the oiler Isherwood (T-AO 
        191) of the Kaiser class.
            (3) To the Government of Egypt:
                    (A) The following frigates of the Knox class:
                            (i) The Paul (FF 1080).
                            (ii) The Miller (FF 1091).
                            (iii) The Jesse L. Brown (FFT 1089).
                            (iv) The Moinester (FFT 1097).
                    (B) The following frigates of the Oliver Hazard 
                Perry class:
                            (i) The Fahrion (FFG 22).
                            (ii) The Lewis B. Puller (FFG 23).
            (4) To the Government of Israel, the tank landing ship 
        Peoria (LST 1183) of the Newport class.
            (5) To the Government of Malaysia, the tank landing ship 
        Barbour County (LST 1195) of the Newport class.
            (6) To the Government of Mexico, the frigate Roark (FF 
        1053) of the Knox class.
            (7) To the Taipei Economic and Cultural Representative 
        Office in the United States (the Taiwan instrumentality that is 
        designated pursuant to section 10(a) of the Taiwan Relations 
        Act), the following frigates of the Knox class:
                    (A) The Whipple (FF 1062).
                    (B) The Downes (FF 1070).
            (8) To the Government of Thailand, the tank landing ship 
        Schenectady (LST 1185) of the Newport class.
    (b) Costs of Transfers.--Any expense incurred by the United States 
in connection with a transfer authorized by subsection (a) shall be 
charged to the recipient.
    (c) Repair and Refurbishment in United States Shipyards.--To the 
maximum extent practicable, the Secretary of the Navy shall require, as 
a condition of the transfer of a vessel under this section, that the 
country to which the vessel is transferred have such repair or 
refurbishment of the vessel as is needed, before the vessel joins the 
naval forces of that country, performed at a shipyard located in the 
United States, including a United States Navy shipyard.
    (d) Expiration of Authority.--The authority to transfer a vessel 
under subsection (a) shall expire at the end of the 2-year period 
beginning on the date of the enactment of this Act.

                  Subtitle C--Counter-Drug Activities

SEC. 1021. AUTHORITY TO PROVIDE ADDITIONAL SUPPORT FOR COUNTER-DRUG 
              ACTIVITIES OF MEXICO.

    (a) Extension of Authority.--Subsection (a) of section 1031 of the 
National Defense Authorization Act for Fiscal Year 1997 (Public Law 
104-201; 110 Stat. 2637), is amended by striking out ``fiscal year 
1997'' and inserting in lieu thereof ``fiscal years 1997 and 1998''.
    (b) Extension of Funding Authorization.--Subsection (d) of such 
section is amended by inserting ``for fiscal years 1997 and 1998'' 
after ``shall be available''.

SEC. 1022. AUTHORITY TO PROVIDE ADDITIONAL SUPPORT FOR COUNTER-DRUG 
              ACTIVITIES OF PERU AND COLOMBIA.

    (a) Authority To Provide Additional Support.--Subject to subsection 
(f), during fiscal years 1998 through 2002, the Secretary of Defense 
may provide either or both of the governments named in subsection (b) 
with the support described in subsection (c) for the counter-drug 
activities of that government. The support provided to a government 
under the authority of this subsection shall be in addition to support 
provided to that government under any other provision of law.
    (b) Governments Eligible To Receive Support.--The governments 
referred to in subsection (a) are as follows:
            (1) The Government of Peru.
            (2) The Government of Colombia.
    (c) Types of Support.--The authority under subsection (a) is 
limited to the provision of the following types of support:
            (1) The transfer of nonlethal protective and utility 
        personnel equipment.
            (2) The transfer of the following nonlethal specialized 
        equipment:
                    (A) Navigation equipment.
                    (B) Secure and nonsecure communications equipment.
                    (C) Photo equipment.
                    (D) Radar equipment.
                    (E) Night vision systems.
                    (F) Repair equipment and parts for equipment 
                referred to in subparagraphs (A), (B), (C), (D), and 
                (E).
            (3) The transfer of nonlethal components, accessories, 
        attachments, parts (including ground support equipment), 
        firmware, and software for aircraft or patrol boats, and 
        related repair equipment.
            (4) The transfer of riverine patrol boats.
            (5) The maintenance and repair of equipment of a government 
        named in subsection (b) that is used for counter-narcotics 
        activities.
    (d) Applicability of Other Support Authorities.--Except as 
otherwise provided in this section, the provisions of section 1004 of 
the National Defense Authorization Act for Fiscal Year 1991 (Public Law 
101-510; 10 U.S.C. 374 note) shall apply to the provision of support to 
a government under this section.
    (e) Funding.--Of the amounts authorized to be appropriated under 
section 301(20) for fiscal year 1998 for drug interdiction and counter-
drug activities, not more than $30,000,000 shall be available in that 
fiscal year for the provision of support under this section.
    (f) Limitations.--(1) The Secretary may not obligate or expend 
funds to provide a government with support under this section until 15 
days after the date on which the Secretary submits to the committees 
referred to in paragraph (2) a written certification of the following:
            (A) That the provision of support to that government under 
        this section will not adversely affect the military 
        preparedness of the United States Armed Forces.
            (B) That the equipment and materiel provided as support 
        will be used only by officials and employees of that government 
        who have undergone background investigations by that government 
        and have been approved by that government to perform counter-
        drug activities on the basis of the background investigations.
            (C) That such government has certified to the Secretary 
        that--
                    (i) the equipment and material provided as support 
                will be used only by the officials and employees 
                referred to in subparagraph (B);
                    (ii) none of the equipment or materiel will be 
                transferred (by sale, gift, or otherwise) to any person 
                or entity not authorized by the United States to 
                receive the equipment or materiel; and
                    (iii) the equipment and materiel will be used only 
                for the purposes intended by the United States 
                Government.
            (D) That the government to receive the support has 
        implemented, to the satisfaction of the Secretary, a system 
        that will provide an accounting and inventory of the equipment 
        and materiel provided as support.
            (E) That the departments, agencies, and instrumentalities 
        of that government will grant United States Government 
        personnel access to any of the equipment or materiel provided 
        as support, or to any of the records relating to such equipment 
        or materiel, under terms and conditions similar to the terms 
        and conditions imposed with respect to such access under 
        section 505(a)(3) of the Foreign Assistance Act of 1961 (22 
        U.S.C. 2314(a)(3)).
            (F) That the government to receive the support will provide 
        security with respect to the equipment and materiel provided as 
        support that is substantially the same degree of security that 
        the United States Government would provide with respect to such 
        equipment and materiel.
            (G) That the government to receive the support will permit 
        continuous observation and review by United States Government 
        personnel of the use of the equipment and materiel provided as 
        support under terms and conditions similar to the terms and 
        conditions imposed with respect to such observation and review 
        under section 505(a)(3) of the Foreign Assistance Act of 1961 
        (22 U.S.C. 2314(a)(3)).
    (2) The committees referred to in this paragraph are the following:
            (A) The Committee on Armed Services and the Committee on 
        Foreign Relations of the Senate.
            (B) The Committee on National Security and the Committee on 
        International Relations of the House of Representatives.

                    Subtitle D--Reports and Studies

SEC. 1031. REPEAL OF REPORTING REQUIREMENTS.

    (a) Reports Required by Title 10.--
            (1) Achievement of cost, performance, and schedule goals 
        for nonmajor acquisition programs.--Section 2220(b) of title 
        10, United States Code, is amended by striking out ``and 
        nonmajor'' in the first sentence.
            (2) Conversion of certain heating systems.--Section 2690(b) 
        of title 10, United States Code, is amended by striking out 
        ``unless the Secretary--'' and all that follows and inserting 
        in lieu thereof the following: ``unless the Secretary 
        determines that the conversion (1) is required by the 
        government of the country in which the facility is located, or 
        (2) is cost effective over the life cycle of the facility.''.
            (3) Availability of suitable alternative housing.--Section 
        2823 of title 10, United States Code, is amended--
                    (A) by striking out subsection (b); and
                    (B) by redesignating subsections (c) and (d) as 
                subsections (b) and (c), respectively.
    (b) Reports Required by Defense Authorization and Appropriations 
Acts.--
            (1) Overseas basing costs.--Section 8125 of the Department 
        of Defense Appropriations Act, 1989 (Public Law 100-463; 102 
        Stat. 2270-41; 10 U.S.C. 113 note) is amended--
                    (A) by striking out subsection (g); and
                    (B) in subsection (h), by striking out 
                ``subsections (f) and (g)'' and inserting in lieu 
                thereof ``subsection (f)''.
            (2) Stretchout of major defense acquisition programs.--
        Section 117 of the National Defense Authorization Act, Fiscal 
        Year 1989 (Public Law 100-456; 102 Stat. 1933; 10 U.S.C. 2431 
        note) is repealed.
    (c) Reports Required by Other Law.--Section 25 of the Office of 
Federal Procurement Policy Act (41 U.S.C. 421) is amended by striking 
out subsection (g), relating to the annual report on development of 
procurement regulations.

SEC. 1032. COMMON MEASUREMENT OF OPERATIONS TEMPOS AND PERSONNEL 
              TEMPOS.

    (a) Means for Measurement.--The Chairman of the Joint Chiefs of 
Staff shall, in consultation with the other members of the Joint Chiefs 
of Staff and to the maximum extent practicable, develop a common means 
of measuring the operations tempo (OPTEMPO) and the personnel tempo 
(PERSTEMPO) of each of the Armed Forces.
    (b) Perstempo Measurement.--The measurement of personnel tempo 
shall include a means of identifying the rate of deployment for 
individuals in addition to the rate of deployment for units.

SEC. 1033. REPORT ON OVERSEAS DEPLOYMENT.

    (a) Report.--Not later than 90 days after the date of the enactment 
of this Act, the Secretary of Defense shall submit to Congress a report 
on the deployment overseas of personnel of the Armed Forces. The report 
shall describe the deployment as of June 30, 1996, and June 30, 1997.
    (b) Elements.--The report under subsection (a) shall set forth the 
following:
            (1) The number of personnel who were deployed overseas 
        pursuant to a permanent duty assignment on each date specified 
        in that subsection in aggregate and by country or ocean to 
        which deployed.
            (2) The number of personnel who were deployed overseas 
        pursuant to a temporary duty assignment on each date, 
        including--
                    (A) the number engaged in training with units of a 
                single military department;
                    (B) the number engaged in United States military 
                joint exercises; and
                    (C) the number engaged in training with allied 
                units.
            (3) The number of personnel deployed overseas on each date 
        who were engaged in contingency operations (including 
        peacekeeping or humanitarian assistance missions) or other 
        activities.

SEC. 1034. REPORT ON MILITARY READINESS REQUIREMENTS OF THE ARMED 
              FORCES.

    (a) Requirement for Report.--Not later than January 31, 1998, the 
Chairman of the Joint Chiefs of Staff shall submit to the congressional 
defense committees a report on the military readiness requirements of 
the active and reserve components of the Armed Forces (including combat 
units, combat support units, and combat service support units) prepared 
by the officers referred to in subsection (b). The report shall assess 
such requirements under a tiered readiness and response system that 
categorizes a given unit according to the likelihood that it will be 
required to respond to a military conflict and the time in which it 
will be required to respond.
    (b) Preparation by JCS and Commanders of Unified Commands.--The 
report required by subsection (a) shall be prepared jointly by the 
Chairman of the Joint Chiefs of Staff, the Chief of Staff of the Army, 
the Chief of Naval Operations, the Chief of Staff of the Air Force, the 
Commandant of the Marine Corps, the commander of the Special Operations 
Command, and the commanders of the other unified commands.
    (c) Assessment Scenario.--The report shall assess readiness 
requirements in a scenario that is based on the following assumptions:
            (1) That the Armed Forces of the United States must, be 
        capable of--
                    (A) fighting and winning, in concert with allies, 
                two major theater wars nearly simultaneously; and
                    (B) deterring or defeating a strategic attack on 
                the United States.
            (2) That the forces available for deployment are the forces 
        included in the force structure recommended in the Quadrennial 
        Defense Review, including all other planned force enhancements.
    (d) Assessment Elements.--(1) The report shall identify, by unit 
type, all major units of the active and reserve components of the Armed 
Forces and assess the readiness requirements of the units. Each 
identified unit shall be categorized within one of the following 
classifications:
            (A) Forward-deployed and crisis response forces, or ``Tier 
        I'' forces, that possess limited internal sustainment 
        capability and do not require immediate access to regional air 
        bases or ports or overflight rights, including the following:
                    (i) Force units that are deployed in rotation at 
                sea or on land outside the United States.
                    (ii) Combat-ready crises response forces that are 
                capable of mobilizing and deploying within 10 days 
                after receipt of orders.
                    (iii) Forces that are supported by prepositioning 
                equipment afloat or are capable of being inserted into 
                a theater upon the capture of a port or airfield by 
                forcible entry forces.
            (B) Combat-ready follow-on forces, or ``Tier II'' forces, 
        that can be mobilized and deployed to a theater within 
        approximately 60 days after receipt of orders.
            (C) Combat-ready conflict resolution forces, or ``Tier 
        III'' forces, that can be mobilized and deployed to a theater 
        within approximately 180 days after receipt of orders.
            (D) All other active and reserve component force units 
        which are not categorized within a classification described in 
        subparagraph (A), (B), or (C).
    (2) For the purposes of paragraph (1), the following units are 
major units:
            (A) In the case of the Army or Marine Corps, a brigade and 
        a battalion.
            (B) In the case of the Navy, a squadron of aircraft, a 
        ship, and a squadron of ships.
            (C) In the case of the Air Force, a squadron of aircraft.
    (e) Projection of Savings for Use for Modernization.--The report 
shall include a projection for fiscal years 1998 through 2003 of the 
amounts of the savings in operation and maintenance funding that--
            (1) could be derived by each of the Armed Forces by placing 
        as many units as is practicable into the lower readiness 
        categories among the tiers; and
            (2) could be made available for force modernization.
    (f) Form of Report.--The report under this section shall be 
submitted in unclassified form but may contain a classified annex.
    (g) Planned Force Enhancement Defined.--In this section, the term 
``planned force enhancement'', with respect to the force structure 
recommended in the Quadrennial Defense Review, means any future 
improvement in the capability of the force (including current strategic 
and future improvement in strategic lift capability) that is assumed in 
the development of the recommendation for the force structure set forth 
in the Quadrennial Defense Review.

SEC. 1035. ASSESSMENT OF CYCLICAL READINESS POSTURE OF THE ARMED 
              FORCES.

    (a) Requirement.--(1) Not later than 120 days after the date of 
enactment of this Act, the Secretary of Defense shall submit to the 
Committee on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives a report on the readiness 
posture of the Armed Forces described in subsection (b).
    (2) The Secretary shall prepare the report required under paragraph 
(1) with the assistance of the Joint Chiefs of Staff. In providing such 
assistance, the Chairman of the Joint Chiefs of Staff shall consult 
with the Chief of the National Guard Bureau.
    (b) Readiness Posture.--(1) The readiness posture to be covered by 
the report under subsection (a) is a readiness posture for units of the 
Armed Forces, or for designated units of the Armed Forces, that 
provides for a rotation of such units between a state of high readiness 
and a state of low readiness.
    (2) As part of the evaluation of the readiness posture described in 
paragraph (1), the report shall address in particular a readiness 
posture that--
            (A) establishes within the Armed Forces two equivalent 
        forces each structured so as to be capable of fighting and 
        winning a major theater war; and
            (B) provides for an alternating rotation of such forces 
        between a state of high readiness and a state of low readiness.
    (3) The evaluation of the readiness posture described in paragraph 
(2) shall be based upon assumptions permitting comparison with the 
existing force structure as follows:
            (A) That there are assembled from among the units of the 
        Armed Forces two equivalent forces each structured so as to be 
        capable of fighting and winning a major theater war.
            (B) That each force referred to in subparagraph (A) 
        includes--
                    (i) four active Army divisions, including one 
                mechanized division, one armored division, one light 
                infantry division, and one division combining airborne 
                units and air assault units, and appropriate support 
                and service support units for such divisions;
                    (ii) six divisions (or division equivalents) of the 
                Army National Guard or the Army Reserve that are 
                essentially equivalent in structure, and appropriate 
                support and service support units for such divisions;
                    (iii) six aircraft carrier battle groups;
                    (iv) six active Air Force fighter wings (or fighter 
                wing equivalents);
                    (v) four Air Force reserve fighter wings (or 
                fighter wing equivalents); and
                    (vi) one active Marine Corps expeditionary force.
            (C) That each force may be supplemented by critical units 
        or units in short supply, including heavy bomber units, 
        strategic lift units, and aerial reconnaissance units, that are 
        not subject to the readiness rotation otherwise assumed for 
        purposes of the evaluation or are subject to the rotation on a 
        modified basis.
            (D) That units of the Armed Forces not assigned to a force 
        are available for operations other than those essential to 
        fight and win a major theater war, including peace operations.
            (E) That the state of readiness of each force alternates 
        between a state of high readiness and a state of low readiness 
        on a frequency determined by the Secretary (but not more often 
        than once every 6 months) and with only one force at a given 
        state of readiness at any one time.
            (F) That, during the period of state of high readiness of a 
        force, any operations or activities (including leave and 
        education and training of personnel) that detract from the 
        near-term wartime readiness of the force are temporary and 
        their effects on such state of readiness minimized.
            (G) That units are assigned overseas during the period of 
        state of high readiness of the force to which the units are 
        assigned primarily on a temporary duty basis.
            (H) That, during the period of high readiness of a force, 
        the operational war plans for the force incorporate the 
        divisions (or division equivalents) of the Army Reserve or Army 
        National Guard assigned to the force in a manner such that one 
        such division (or division equivalent) is, on a rotating basis 
        for such divisions (or division equivalents) during the period, 
        maintained in a high state of readiness and dedicated as the 
        first reserve combat division to be transferred overseas in the 
        event of a major theater war.
    (c) Report Elements.--The report under this section shall include 
the following elements for the readiness posture described in 
subsection (b)(2):
            (1) An estimate of the range of cost savings achievable 
        over the long term as a result of implementing the readiness 
        posture, including--
                    (A) the savings achievable from reduced training 
                levels and readiness levels during periods in which a 
                force referred to in subsection (b)(3)(A) is in a state 
                of low readiness; and
                    (B) the savings achievable from reductions in costs 
                of infrastructure overseas as a result of reduced 
                permanent change of station rotations.
            (2) An assessment of the potential risks associated with a 
        lower readiness status for units assigned to a force in a state 
        of low readiness under the readiness posture, including the 
        risks associated with the delayed availability of such units 
        overseas in the event of two nearly simultaneous major theater 
        wars.
            (3) An assessment of the potential risks associated with 
        requiring the forces under the readiness posture to fight a 
        major war in any theater worldwide.
            (4) An assessment of the modifications of the current force 
        structure of the Armed Forces that are necessary to achieve the 
        range of cost savings estimated under paragraph (1), including 
        the extent of the diminishment, if any, of the military 
        capabilities of the Armed Forces as a result of the 
        modifications.
            (5) An assessment whether or not the risks of diminished 
        military capability associated with implementation of the 
        readiness posture exceed the risks of diminished military 
        capability associated with the modifications of the current 
        force structure necessary to achieve cost savings equivalent to 
        the best case for cost savings resulting from the 
        implementation of the readiness posture.
    (d) Form of Report.--The report under this section shall be 
submitted in unclassified form, but may contain a classified annex.
    (e) Definitions.--In this section:
            (1) The term ``state of high readiness'', in the case of a 
        military force, means the capability to mobilize first-to-
        arrive units of the force within 18 hours and last-to-arrive 
        units within 120 days of a particular event.
            (2) The term ``state of low readiness'', in the case of a 
        military force, means the capability to mobilize first-to-
        arrive units within 90 days and last-to-arrive units within 180 
        days of a particular event.

SEC. 1036. OVERSEAS INFRASTRUCTURE REQUIREMENTS.

    (a) Findings.--Congress makes the following findings:
            (1) United States military forces have been withdrawn from 
        the Philippines.
            (2) United States military forces are to be withdrawn from 
        Panama by 2000.
            (3) There continues to be local opposition to the continued 
        presence of United States military forces in Okinawa.
            (4) The Quadrennial Defense Review lists ``the loss of U.S. 
        access to critical facilities and lines of communication in key 
        regions'' as one of the so-called ``wild card'' scenarios 
        covered in the review.
            (5) The National Defense Panel states that ``U.S. forces' 
        long-term access to forward bases, to include air bases, ports, 
        and logistics facilities, cannot be assumed''.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) the President should develop alternatives to the 
        current arrangement for forward basing of the Armed Forces 
        outside the United States, including alternatives to the 
        existing infrastructure for forward basing of forces and 
        alternatives to the existing international agreements that 
        provide for basing of United States forces in foreign 
        countries; and
            (2) because the Pacific Rim continues to emerge as a region 
        of significant economic and military importance to the United 
        States, a continued presence of the Armed Forces in that region 
        is vital to the capability of the United States to timely 
        protect its interests in the region.
    (c) Report Required.--Not later than March 31, 1998, 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 overseas infrastructure requirements of 
the Armed Forces.
    (d) Content.--The report shall contain the following:
            (1) The quantity and types of forces that the United States 
        must station in each region of the world in order to support 
        the current national military strategy of the United States.
            (2) The quantity and types of forces that the United States 
        will need to station in each region of the world in order to 
        meet the expected or potential future threats to the national 
        security interests of the United States.
            (3) The requirements for access to, and use of, air space 
        and ground maneuver areas in each such region for training for 
        the quantity and types of forces identified for the region 
        pursuant to paragraphs (1) and (2).
            (4) A list of the international agreements, currently in 
        force, that the United States has entered into with foreign 
        countries regarding the basing of United States forces in those 
        countries and the dates on which the agreements expire.
            (5) A discussion of any anticipated political opposition or 
        other opposition to the renewal of any of those international 
        agreements.
            (6) A discussion of future overseas basing requirements for 
        United States forces, taking into account expected changes in 
        national security strategy, national security environment, and 
        weapons systems.
            (7) The expected costs of maintaining the overseas 
        infrastructure for foreign based forces of the United States, 
        including the costs of constructing any new facilities that 
        will be necessary overseas to meet emerging requirements 
        relating to the national security interests of the United 
        States.
    (e) Form of Report.--The report may be submitted in a classified or 
unclassified form.

SEC. 1037. REPORT ON AIRCRAFT INVENTORY.

    (a) Report.--Not later than January 30, 1998, the Under Secretary 
of Defense (Comptroller) 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 aircraft in the inventory of 
the Department of Defense.
    (b) Content.--The report shall set forth, for each type of aircraft 
provided for in the future-years defense program submitted to Congress 
in 1998, the following information:
            (1) The total number of aircraft in the inventory.
            (2) The total number of the aircraft in the inventory that 
        are active, stated in the following categories:
                    (A) Primary aircraft (with a subcategory for 
                mission aircraft, a subcategory for training aircraft, 
                a subcategory for dedicated test aircraft, and other 
                appropriate subcategories).
                    (B) Backup aircraft.
                    (C) Attrition and reconstitution reserve aircraft.
            (3) The total number of the aircraft in the inventory that 
        are inactive, stated in the following categories:
                    (A) Bailment aircraft.
                    (B) Drone aircraft.
                    (C) Aircraft for sale or other transfer to foreign 
                governments.
                    (D) Leased or loaned aircraft.
                    (E) Aircraft for maintenance training.
                    (F) Aircraft for reclamation.
                    (G) Aircraft in storage.
            (4) The aircraft inventory requirements approved by the 
        Joint Chiefs of Staff.

SEC. 1038. DISPOSAL OF EXCESS MATERIALS.

    (a) Report.--Not later than January 31, 1998, the Secretary shall 
submit to Congress a report on the actions that have been taken or are 
planned to be taken within the Department of Defense to address 
problems with the sale or other disposal of excess materials.
    (b) Required Content.-- At a minimum, the report shall address the 
following issues:
            (1) Whether any change is needed in the process of coding 
        military equipment for demilitarization during the acquisition 
        process.
            (2) Whether any change is needed to improve methods used 
        for the demilitarization of specific types of military 
        equipment.
            (3) Whether any change is needed in the penalties that are 
        applicable to Federal Government employees or contractor 
        employees who fail to comply with rules or procedures 
        applicable to the demilitarization of excess materials.
            (4) Whether provision has been made for sufficient 
        supervision and oversight of the demilitarization of excess 
        materials by purchasers of the materials.
            (5) Whether any additional controls are needed to prevent 
        the inappropriate transfer of excess materials overseas.
            (6) Whether the Department should--
                    (A) identify categories of materials that are 
                particularly vulnerable to improper use; and
                    (B) provide for enhanced review of the sale or 
                other disposal of such materials.
            (7) Whether legislation is necessary to establish 
        appropriate mechanisms, including repurchase, for the recovery 
        of equipment that is sold or otherwise disposed of without 
        appropriate action having been taken to demilitarize the 
        equipment or to provide for demilitarization of the equipment.

SEC. 1039. REVIEW OF FORMER SPOUSE PROTECTIONS.

    (a) Requirement.--The Secretary of Defense shall carry out a 
comprehensive review and comparison of--
            (1) the protections and benefits afforded under Federal law 
        to former spouses of members and former members of the 
        uniformed services by reason of their status as former spouses 
        of such personnel; and
            (2) the protections and benefits afforded under Federal law 
        to former spouses of employees and former employees of the 
        Federal Government by reason of their status as former spouses 
        of such personnel.
    (b) Matters To Be Reviewed.--The review under subsection (a) shall 
include the following:
            (1) In the case of former spouses of members and former 
        members of the uniformed services, the following:
                    (A) All provisions of law (principally those 
                originally enacted in the Uniformed Services Former 
                Spouses' Protection Act (title X of Public Law 97-252)) 
                that--
                            (i) establish, provide for the enforcement 
                        of, or otherwise protect interests of former 
                        spouses of members and former members of the 
                        uniformed services in retired or retainer pay 
                        of members and former members; and
                            (ii) provide other benefits for former 
                        spouses of members and former members.
                    (B) The experience of the uniformed services in 
                administering such provisions of law.
                    (C) The experience of former spouses and members 
                and former members of the uniformed services in the 
                administration of such provisions of law.
            (2) In the case of former spouses of employees and former 
        employees of the Federal Government, the following:
                    (A) All provisions of law that--
                            (i) establish, provide for the enforcement 
                        of, or otherwise protect interests of former 
                        spouses of employees and former employees of 
                        the Federal Government in annuities of 
                        employees and former employees under Federal 
                        employees' retirement systems; and
                            (ii) provide other benefits for former 
                        spouses of employees and former employees.
                    (B) The experience of the Office of Personnel 
                Management and other agencies of the Federal Government 
                in administering such provisions of law.
                    (C) The experience of former spouses and employees 
                and former employees of the Federal Government in the 
                administration of such provisions of law.
    (c) Sampling Authorized.--The Secretary may use sampling in 
carrying out the review under this section.
    (d) Report.--Not later than September 30, 1999, the Secretary shall 
submit a report on the results of the review and comparison to the 
Committee on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives. The report shall include any 
recommendation for legislation that the Secretary considers 
appropriate.

SEC. 1040. COMPLETION OF GAO REPORTS FOR CONGRESS.

    (a) Priority.--(1) Subchapter II of chapter 7 of title 31, United 
States Code, is amended by adding at the end the following:
``Sec. 721. Priority for completion of certain audits, evaluations, 
              other reviews, and reports
    ``(a) Priority.--The Comptroller General may commence an audit, 
evaluation, other review, or report in a fiscal year only after the 
Comptroller General certifies in writing to Congress during such fiscal 
year that the General Accounting Office has completed all audits, 
evaluations, other reviews, and reports that were requested of that 
office by Congress before the date of the certification.
    ``(b) Exceptions.--The restriction in subsection (a) does not apply 
to the commencement of an audit, evaluation, other review, or report 
that is required by law or requested by Congress.
    ``(c) Source, Form, and Date of Congressional Requests.--For the 
purposes of this section--
            ``(1) an audit, evaluation, other review, or report is 
        requested by Congress if the request for the audit, evaluation, 
        other review, or report is made in writing by the Chairman of a 
        committee of Congress, the Chairman of a subcommittee of such a 
        committee, or any other member of Congress; and
            ``(2) the date on which the General Accounting Office 
        receives such a request shall be considered the date of the 
        request.''.
    (2) The chapter analysis at the beginning of such chapter is 
amended by inserting after the item relating to section 720 the 
following:

``721. Priority for completion of certain audits, evaluations, other 
                            reviews, and reports.''.
    (b) Annual Report on Congressional and Noncongressional 
Activities.--(1) Section 719(b) of title 31, United States Code, is 
amended by adding at the end the following:
    ``(3)(A) The report under subsection (a) shall include, for the 
latest fiscal year ending before the date of the report, the amount and 
cost of the work that the General Accounting Office performed during 
the fiscal year for the following:
            ``(i) Audits, evaluations, other reviews, and reports 
        requested by the Chairman of a committee of Congress, the 
        Chairman of a subcommittee of such a committee, or any other 
        member of Congress.
            ``(ii) Audits, evaluations, other reviews, and reports not 
        described in clause (i) and not required by law to be performed 
        by the General Accounting Office.
    ``(B) In the report, amounts of work referred to in subparagraph 
(A) shall be expressed as hours of labor.''.
    (2) Paragraph (1) of such section is amended--
            (A) by striking out ``and'' at the end of subparagraph (B);
            (B) by striking out the period at the end of subparagraph 
        (C) and inserting in lieu thereof ``; and''; and
            (C) by adding at the end the following:
            ``(D) the matters required by paragraph (3).''.
    (c) Applicability.--(1) Section 721 of title 31, United States Code 
(as added by subsection (a)), shall apply to the commencement of 
audits, evaluations, other reviews, and reports by the General 
Accounting Office after the later of--
            (A) September 30, 1997; or
            (B) the date of the enactment of this Act.
    (2) The amendments made by subsection (b) shall apply with respect 
to reports submitted under section 719(a) of title 31, United States 
Code, after December 31, 1997.

                       Subtitle E--Other Matters

SEC. 1051. PSYCHOTHERAPIST-PATIENT PRIVILEGE IN THE MILITARY RULES OF 
              EVIDENCE.

    (a) Requirement for Proposed Rule.--The Secretary of Defense shall 
submit to the President, for consideration for promulgation under 
article 36 of the Uniform Code of Military Justice (10 U.S.C. 836), a 
recommended amendment to the Military Rules of Evidence that recognizes 
an evidentiary privilege regarding disclosure by a psychotherapist of 
confidential communications between a patient and the psychotherapist.
    (b) Applicability of Privilege.--The recommended amendment shall 
include a provision that applies the privilege to--
            (1) patients who are not subject to the Uniform Code of 
        Military Justice; and
            (2) any patients subject to the Uniform Code of Military 
        Justice that the Secretary determines it appropriate for the 
        privilege to cover.
    (c) Scope of Privilege.--The evidentiary privilege recommended 
pursuant to subsection (a) shall be similar in scope to the 
psychotherapist-patient privilege recognized under Rule 501 of the 
Federal Rules of Evidence, subject to such exceptions and limitations 
as the Secretary determines appropriate on the bases of law, public 
policy, and military necessity.
    (d) Deadline for Recommendation.--The Secretary shall submit the 
recommendation under subsection (a) on or before the later of the 
following dates:
            (1) The date that is 90 days after the date of the 
        enactment of this Act.
            (2) January 1, 1998.

SEC. 1052. NATIONAL GUARD CIVILIAN YOUTH OPPORTUNITIES PILOT PROGRAM.

    (a) Extension of Pilot Program Authority for Current Number of 
Programs.--Subsection (a) of section 1091 of the National Defense 
Authorization Act for Fiscal Year 1993 (Public Law 102-484; 32 U.S.C. 
501 note) is amended--
            (1) by striking out ``During fiscal years 1993 through 
        1995'' and inserting in lieu thereof ``(1) During fiscal years 
        1993 through 1998''; and
            (2) by adding at the end the following new paragraph:
    ``(2) In fiscal years after fiscal year 1995, the number of 
programs carried out under subsection (d) as part of the pilot program 
may not exceed the number of such programs as of September 30, 1995.''.
    (b) Fiscal Restrictions.--(1) Section 1091 of such Act is amended 
by striking out subsection (k) and inserting in lieu thereof the 
following:
    ``(k) Fiscal Restrictions.--(1) The Federal Government's share of 
the total cost of carrying out a program in a State as part of the 
pilot program in any fiscal year after fiscal year 1997 may not exceed 
50 percent of that total cost.
    ``(2) The total amount expended for carrying out the program during 
a fiscal year may not exceed $20,000,000.''.
    (2) Subsection (d)(3) of such section is amended by inserting ``, 
subject to subsection (k)(1),'' after ``provide funds''.
    (c) Conforming Repeal.--Section 573 of the National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 
355; 32 U.S.C. 501 note) is repealed.

SEC. 1053. PROTECTION OF ARMED FORCES PERSONNEL DURING PEACE 
              OPERATIONS.

    (a) Protection of Personnel.--
            (1) In general.--The Secretary of Defense shall take 
        appropriate actions to ensure that units of the Armed Forces 
        (including Army units, Marine Corps units, Air Force units, and 
        support units for such units) engaged in peace operations have 
        adequate troop protection equipment for such operations.
            (2) Specific actions.--In taking such actions, the 
        Secretary shall--
                    (A) identify the additional troop protection 
                equipment, if any, required to equip a division 
                equivalent with adequate troop protection equipment for 
                peace operations;
                    (B) establish procedures to facilitate the exchange 
                of troop protection equipment among the units of the 
                Armed Forces; and
                    (C) designate within the Department of Defense an 
                individual responsible for--
                            (i) ensuring the proper allocation of troop 
                        protection equipment among the units of the 
                        Armed Forces engaged in peace operations; and
                            (ii) monitoring the availability, status or 
                        condition, and location of such equipment.
    (b) Report.--Not later than March 1, 1998, the Secretary shall 
submit to Congress a report on the actions taken by the Secretary under 
subsection (a).
    (c) Troop Protection Equipment Defined.--In this section, the term 
``troop protection equipment'' means the equipment required by units of 
the Armed Forces to defend against any hostile threat that is likely 
during a peace operation, including an attack by a hostile crowd, small 
arms fire, mines, and a terrorist bombing attack.

SEC. 1054. LIMITATION ON RETIREMENT OR DISMANTLEMENT OF STRATEGIC 
              NUCLEAR DELIVERY SYSTEMS.

    (a) Funding Limitation.--Funds available to the Department of 
Defense may not be obligated or expended during fiscal year 1998 for 
retiring or dismantling, or for preparing to retire or dismantle, any 
of the following strategic nuclear delivery systems below the specified 
levels:
            (1) 71 B-52H bomber aircraft.
            (2) 18 Trident ballistic missile submarines.
            (3) 500 Minuteman III intercontinental ballistic missiles.
            (4) 50 Peacekeeper intercontinental ballistic missiles.
    (b) Waiver Authority.--If the START II Treaty enters into force 
during fiscal year 1997 or fiscal year 1998, the Secretary of Defense 
may waive the application of the limitation under subsection (a) to the 
extent that the Secretary determines necessary in order to implement 
the treaty.
    (c) Funding Limitation on Early Deactivation.--(1) If the 
limitation under subsection (a) ceases to apply by reason of a waiver 
under subsection (b), funds available to the Department of Defense may 
nevertheless not be obligated or expended during fiscal year 1998 to 
implement any agreement or understanding to undertake substantial early 
deactivation of a strategic nuclear delivery system specified in 
subsection (a) until 30 days after the date on which the President 
submits to Congress a report concerning such actions.
    (2) For purposes of this subsection, a substantial early 
deactivation is an action during fiscal year 1998 to deactivate a 
substantial number of strategic nuclear delivery systems specified in 
subsection (a) by--
            (A) removing nuclear warheads from those systems; or
            (B) taking other steps to remove those systems from combat 
        status.
    (3) A report under this subsection shall include the following:
            (A) The text of any understanding or agreement between the 
        United States and the Russian Federation concerning substantial 
        early deactivation of strategic nuclear delivery systems under 
        the START II Treaty.
            (B) The plan of the Department of Defense for implementing 
        the agreement.
            (C) An assessment of the Secretary of Defense of the 
        adequacy of the provisions contained in the agreement for 
        monitoring and verifying compliance of Russia with the terms of 
        the agreement.
            (D) A determination by the President as to whether the 
        deactivations to occur under the agreement will be carried out 
        in a symmetrical, reciprocal, or equivalent manner.
            (E) An assessment by the President of the effect of the 
        proposed early deactivation on the stability of the strategic 
        balance and relative strategic nuclear capabilities of the 
        United States and the Russian Federation at various stages 
        during deactivation and upon completion.
    (d) Contingency Plan for Sustainment of Systems.--(1) Not later 
then February 15, 1998, the Secretary of Defense shall submit to the 
congressional defense committees a plan for the sustainment beyond 
October 1, 1999, of United States strategic nuclear delivery systems 
and alternative Strategic Arms Reduction Treaty force structures in the 
event that a strategic arms reduction agreement subsequent to the 
Strategic Arms Reduction Treaty does not enter into force before 2004.
    (2) The plan shall include a discussion of the following matters:
            (A) The actions that are necessary to sustain the United 
        States strategic nuclear delivery systems, distinguishing 
        between the actions that are planned for and funded in the 
        future-years defense program and the actions that are not 
        planned for and funded in the future-years defense program.
            (B) The funding necessary to implement the plan, indicating 
        the extent to which the necessary funding is provided for in 
        the future-years defense program and the extent to which the 
        necessary funding is not provided for in the future-years 
        defense program.
    (e) START Treaties Defined.--In this section:
            (1) The term ``Strategic Arms Reduction Treaty'' means the 
        Treaty Between the United States of America and the United 
        Soviet Socialist Republics on the Reduction and Limitation of 
        Strategic Offensive Arms (START), signed at Moscow on July 
31, 1991, including related annexes on agreed statements and 
definitions, protocols, and memorandum of understanding.
            (2) The term ``START II Treaty'' means the Treaty Between 
        the United States of America and the Russian Federation on 
        Further Reduction and Limitation of Strategic Offensive Arms, 
        signed at Moscow on January 3, 1993, including the following 
        protocols and memorandum of understanding, all such documents 
        being integral parts of and collectively referred to as the 
        ``START II Treaty'' (contained in Treaty Document 103-1):
                    (A) The Protocol on Procedures Governing 
                Elimination of Heavy ICBMs and on Procedures Governing 
                Conversion of Silo Launchers of Heavy ICBMs Relating to 
                the Treaty Between the United States of America and the 
                Russian Federation on Further Reduction and Limitation 
                of Strategic Offensive Arms (also known as the 
                ``Elimination and Conversion Protocol'').
                    (B) The Protocol on Exhibitions and Inspections of 
                Heavy Bombers Relating to the Treaty Between the United 
                States and the Russian Federation on Further Reduction 
                and Limitation of Strategic Offensive Arms (also known 
                as the ``Exhibitions and Inspections Protocol'').
                    (C) The Memorandum of Understanding on Warhead 
                Attribution and Heavy Bomber Data Relating to the 
                Treaty Between the United States of America and the 
                Russian Federation on Further Reduction and Limitation 
                of Strategic Offensive Arms (also known as the 
                ``Memorandum on Attribution'').

SEC. 1055. ACCEPTANCE AND USE OF LANDING FEES FOR USE OF OVERSEAS 
              MILITARY AIRFIELDS BY CIVIL AIRCRAFT.

    (a) Authority.--Section 2350j of title 10, United States Code, is 
amended--
            (1) by redesignating subsections (f) and (g) as subsections 
        (g) and (h), and
            (2) by inserting after subsection (e) the following new 
        subsection (f):
    ``(f) Payments for Civil Use of Military Airfields.--The authority 
under subsection (a) includes authority for the Secretary of a military 
department to accept payments of landing fees for use of a military 
airfield by civil aircraft that are prescribed pursuant to an agreement 
that is entered into with the government of the country in which the 
airfield is located. Payments received under this subsection in a 
fiscal year shall be credited to the appropriation that is available 
for the 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 the same period and purposes as 
the appropriation is available.''.
    (b) Conforming Amendments.--(1) Subsection (b) of such section is 
amended by striking out ``Any'' at the beginning of the second sentence 
and inserting in lieu thereof ``Except as provided in subsection (f), 
any''.
    (2) Subsection (c) of such section is amended by striking out 
``Contributions'' in the matter preceding paragraph (1), and inserting 
in lieu thereof ``Except as provided in subsection (f), 
contributions''.

SEC. 1056. ONE-YEAR EXTENSION OF INTERNATIONAL NONPROLIFERATION 
              INITIATIVE.

    (a) One-Year Extension.--Subsection (f) of section 1505 of the 
Weapons of Mass Destruction Control Act of 1992 (title XV of the 
National Defense Authorization Act for Fiscal Year 1993; 22 U.S.C. 
5859a) is amended by striking out ``1997'' and inserting in lieu 
thereof ``1998''.
    (b) Limitations on Amount of Assistance for Additional Fiscal 
Years.--Subsection (d)(3) of such section is amended by striking out 
``or $15,000,000 for fiscal year 1997'' and inserting in lieu thereof 
``$15,000,000 for fiscal year 1997, or $15,000,000 for fiscal year 
1998''.

SEC. 1057. ARMS CONTROL IMPLEMENTATION AND ASSISTANCE FOR FACILITIES 
              SUBJECT TO INSPECTION UNDER THE CHEMICAL WEAPONS 
              CONVENTION.

    (a) Assistance Authorized.--The On-Site Inspection Agency of the 
Department of Defense may provide technical assistance, on a 
reimbursable basis (in accordance with subsection (b)), to a facility 
that is subject to a routine or challenge inspection under the Chemical 
Weapons Convention upon the request of the owner or operator of the 
facility.
    (b) Reimbursement Requirement.--The United States National 
Authority shall reimburse the On-Site Inspection Agency for costs 
incurred by the agency in providing assistance under subsection (a).
    (c) Definitions.--In this section:
            (1) The terms ``Chemical Weapons Convention'' and 
        ``Convention'' mean the Convention on the Prohibition of the 
        Development, Production, Stockpiling and Use of Chemical 
        Weapons and on Their Destruction, opened for signature on 
        January 13, 1993.
            (2) The term ``facility that is subject to a routine 
        inspection'' means a declared facility, as defined in paragraph 
        15 of part X of the Annex on Implementation and Verification of 
        the Convention.
            (3) The term ``challenge inspection'' means an inspection 
        conducted under Article IX of the Convention.
            (4) The term ``United States National Authority'' means the 
        United States National Authority established or designated 
        pursuant to Article VII, paragraph 4, of the Chemical Weapons 
        Convention.

SEC. 1058. SENSE OF SENATE REGARDING THE RELATIONSHIP BETWEEN 
              ENVIRONMENTAL LAWS AND UNITED STATES' OBLIGATIONS UNDER 
              THE CHEMICAL WEAPONS CONVENTION.

    (a) Findings.--The Senate makes the following findings:
            (1) The Chemical Weapons Convention requires the 
        destruction of the United States' stockpile of lethal chemical 
        agents and munitions within 10 years after the Convention's 
        entry into force (or 2007).
            (2) The President possesses substantial powers under 
        existing law to ensure that the technologies necessary to 
destroy the stockpile are developed, that the facilities necessary to 
destroy the stockpile are constructed, and that Federal, State, and 
local environmental laws and regulations do not impair the ability of 
the United States to comply with its obligations under the Convention.
    (b) Sense of Senate.--It is the sense of the Senate that the 
President--
            (1) should use the authority granted the President under 
        existing law to ensure that the United States is able to 
        construct and operate the facilities necessary to destroy the 
        United States' stockpile of lethal chemical agents and 
        munitions within the time allowed by the Chemical Weapons 
        Convention; and
            (2) while carrying out the United States' obligations under 
        the Convention, should encourage negotiations between 
        appropriate Federal Government officials and officials of the 
        State and local governments concerned to attempt to meet their 
        concerns about the actions being taken to carry out those 
        obligations.
    (c) Chemical Weapons Convention Defined.--In this section, the 
terms ``Chemical Weapons Convention'' and ``Convention'' mean the 
Convention on the Prohibition of the Development, Production, 
Stockpiling and Use of Chemical Weapons and on Their Destruction, 
opened for signature on January 13, 1993.

SEC. 1059. SENSE OF CONGRESS REGARDING FUNDING FOR RESERVE COMPONENT 
              MODERNIZATION NOT REQUESTED IN THE ANNUAL BUDGET REQUEST.

    (a) Limitation.--It is the sense of Congress that, to the maximum 
extent practicable, Congress should consider authorizing appropriations 
for reserve component modernization activities not included in the 
budget request of the Department of Defense for a fiscal year only if--
            (1) there is a Joint Requirements Oversight Council 
        validated requirement for the equipment;
            (2) the equipment is included for reserve component 
        modernization in the modernization plan of the military 
        department concerned and is incorporated into the future-years 
        defense program;
            (3) the equipment is consistent with the use of reserve 
        component forces;
            (4) the equipment is necessary in the national security 
        interests of the United States; and
            (5) the funds can be obligated in the fiscal year.
    (b) Views of the Chairman, Joint Chiefs of Staff.--It is further 
the sense of Congress that, in applying the criteria set forth in 
subsection (a), Congress should obtain the views of the Chairman of the 
Joint Chiefs of Staff, including views on whether funds for equipment 
not included in the budget request are appropriate for the employment 
of reserve component forces in Department of Defense warfighting plans.

SEC. 1060. AUTHORITY OF SECRETARY OF DEFENSE TO SETTLE CLAIMS RELATING 
              TO PAY, ALLOWANCES, AND OTHER BENEFITS.

    (a) Authority To Waive Time Limitations.--Paragraph (1) of section 
3702(e) of title 31, United States Code, is amended by striking out 
``Comptroller General'' and inserting in lieu thereof ``Secretary of 
Defense''.
    (b) Appropriation To Be Charged.--Paragraph (2) of such section is 
amended by striking out ``shall be subject to the availability of 
appropriations for payment of that particular claim'' and inserting in 
lieu thereof ``shall be made from an appropriation that is available, 
for the fiscal year in which the payment is made, for the same purpose 
as the appropriation to which the obligation claimed would have been 
charged if the obligation had been timely paid''.

SEC. 1061. COORDINATION OF ACCESS OF COMMANDERS AND DEPLOYED UNITS TO 
              INTELLIGENCE COLLECTED AND ANALYZED BY THE INTELLIGENCE 
              COMMUNITY.

    (a) Findings.--Congress makes the following findings:
            (1) Coordination of operational intelligence support for 
        the commanders of the combatant commands and deployed units of 
        the Armed Forces has proven to be inadequate.
            (2) Procedures used to reconcile information among various 
        intelligence community and Department of Defense data bases 
        proved to be inadequate and, being inadequate, diminished the 
        usefulness of that information and preclude commanders and 
        planners within the Armed Forces from fully benefiting from key 
        information that should have been available to them.
            (3) Excessive compartmentalization of responsibilities and 
        information within the Department of Defense and the other 
        elements of the intelligence community resulted in inaccurate 
        analysis of important intelligence material.
            (4) Excessive restrictions on the distribution of 
        information within the executive branch disadvantaged units of 
        the Armed Forces that would have benefited most from the 
        information.
            (5) Procedures used in the Department of Defense to ensure 
        that critical intelligence information is provided to the right 
        combat units in a timely manner failed during the Persian Gulf 
        War and, as a result, information about potential chemical 
        weapons storage locations did not reach the units that 
        eventually destroyed those storage areas.
            (6) A recent, detailed review of the events leading to and 
        following the destruction of chemical weapons by members of the 
        Armed Forces at Khamisiyah, Iraq, during the Persian Gulf War 
        has revealed a number of inadequacies in the way the Department 
        of Defense and the other elements of the intelligence community 
        handled, distributed, recorded, and stored intelligence 
        information about the threat of exposure of United States 
        forces to chemical weapons and the toxic agents in those 
        weapons.
            (7) The inadequacy of procedures for recording the receipt 
        of, and reaction to, intelligence reports provided by the 
        intelligence community to combat units of the Armed Forces 
        during the Persian Gulf War has caused it to be impossible to 
        analyze the failures in transmission of intelligence-related 
        information on the location of chemical weapons at Khamisiyah, 
        Iraq, that resulted in the demolition of chemical weapons by 
        members of the Armed Forces unaware of the hazards to which 
        they were exposed.
    (b) Reporting Requirement.--Not later than March 1, 1998, the 
Secretary of Defense shall submit to Congress a report that identifies 
the specific actions that have been taken or are being taken to ensure 
that there is adequate coordination of operational intelligence support 
for the commanders of the combatant commands and deployed units of the 
Armed Forces.
    (c) Definition of Intelligence Community.--In this section, the 
term ``intelligence community'' has the meaning given the term in 
section 3 of the National Security Act of 1947 (50 U.S.C. 401a).

SEC. 1062. PROTECTION OF IMAGERY, IMAGERY INTELLIGENCE, AND GEOSPATIAL 
              INFORMATION AND DATA.

    (a) Protection of Information on Capabilities.--Paragraph (1)(B) of 
section 455(b) of title 10, United States Code, is amended by inserting 
``, or capabilities,'' after ``methods''.
    (b) Products Protected.--(1) Paragraph (2) of such section is 
amended to read as follows:
    ``(2) In this subsection, the term `geodetic product' means 
imagery, imagery intelligence, or geospatial information, as those 
terms are defined in section 467 of this title.''.
    (2) Section 467(4)(C) of title 10, United States Code, is amended 
to read as follows:
                    ``(C) maps, charts, geodetic data, and related 
                products.''.

SEC. 1063. PROTECTION OF AIR SAFETY INFORMATION VOLUNTARILY PROVIDED BY 
              A CHARTER AIR CARRIER.

    Section 2640 of title 10, United States Code, is amended--
            (1) by redesignating subsections (h) and (i) as subsections 
        (i) and (j), respectively; and
            (2) by inserting after subsection (g) the following new 
        subsection (h):
    ``(h) Protection of Voluntarily Submitted Air Safety Information.--
(1) Subject to paragraph (2), the appropriate official may deny a 
request made under any other provision of law for public disclosure of 
safety-related information that has been provided voluntarily by an air 
carrier to the Secretary of Defense for the purposes of this section, 
notwithstanding the provision of law under which the request is made.
    ``(2) The appropriate official may exercise authority to deny a 
request for disclosure of information under paragraph (1) if the 
official first determines that--
            ``(A) the disclosure of the information as requested would 
        inhibit an air carrier from voluntarily disclosing, in the 
        future, safety-related information for the purposes of this 
        section or for other air safety purposes involving the 
        Department of Defense or another Federal agency; and
            ``(B) the receipt of such information generally enhances 
        the fulfillment of responsibilities under this section or other 
        air safety responsibilities involving the Department of Defense 
        or another Federal agency.
    ``(3) For the purposes of this section, the appropriate official 
for exercising authority under paragraph (1) is--
            ``(A) the Secretary of Defense, in the case of a request 
        for disclosure of information that is directed to the 
        Department of Defense; or
            ``(B) the head of another Federal agency, in the case of a 
        request that is directed to that Federal agency regarding 
        information described in paragraph (1) that the Federal agency 
        has received from the Department of Defense.''.

SEC. 1064. SUSTAINMENT AND OPERATION OF GLOBAL POSITIONING SYSTEM.

    (a) Findings.--Congress makes the following findings:
            (1) The Global Positioning System, with its multiple uses, 
        makes significant contributions to the attainment of the 
        national security and foreign policy goals of the United 
        States, the safety and efficiency of international 
        transportation, and the economic growth, trade, and 
        productivity of the United States.
            (2) The infrastructure for the Global Positioning System, 
        including both space and ground segments of the infrastructure, 
        is vital to the effectiveness of United States and allied 
        military forces and to the protection of the national security 
        interests of the United States.
            (3) In addition to having military uses, the Global 
        Positioning System has essential civil, commercial, and 
        scientific uses.
            (4) Driven by the increasing demand of civil, commercial, 
        and scientific users of the Global Positioning System--
                    (A) there has emerged in the United States a new 
                commercial industry to provide Global Positioning 
                System equipment and related services to the many and 
                varied users of the system; and
                    (B) there have been rapid technical advancements in 
                Global Positioning System equipment and services that 
                have contributed significantly to reductions in the 
                cost of the Global Positioning System and increases in 
                the technical capabilities and availability of the 
                system for military uses.
            (5) It is in the national interest of the United States for 
        the United States--
                    (A) to support continuation of the multiple-use 
                character of the Global Positioning System;
                    (B) to promote broader acceptance and use of the 
                Global Positioning System and the technological 
                standards that facilitate expanded use of the system 
                for civil purposes;
                    (C) to coordinate with other countries to ensure--
                            (i) efficient management of the 
                        electromagnetic spectrum utilized for the 
                        Global Positioning System; and
                            (ii) protection of that spectrum in order 
                        to prevent disruption of, and interference 
                        with, signals from the system; and
                    (D) to encourage open access in all international 
                markets to the Global Positioning System and supporting 
                equipment, services, and techniques.
    (b) Sustainment and Operation for Military Purposes.--The Secretary 
of Defense shall--
            (1) provide for the sustainment of the Global Positioning 
        System capabilities, and the operation of basic Global 
        Positioning System services, that are beneficial for the 
        national security interests of United States;
            (2) develop appropriate measures for preventing hostile use 
        of the Global Positioning System that make it unnecessary to 
        use the selective availability feature of the system 
        continuously and do not hinder the use of the Global 
        Positioning System by the United States and its allies for 
        military purposes; and
            (3) ensure that United States military forces have the 
        capability to use the Global Positioning System effectively 
        despite hostile attempts to prevent the use of the system by 
        such forces.
    (c) Sustainment and Operation for Civilian Purposes.--The Secretary 
of Defense shall--
            (1) provide for the sustainment and operation of basic 
        Global Positioning System services for peaceful civil, 
        commercial, and scientific uses on a continuous worldwide basis 
        free of direct user fees;
            (2) provide for the sustainment and operation of basic 
        Global Positioning System services in order to meet the 
        performance requirements of the Federal Radionavigation Plan 
        jointly issued by the Secretary of Defense and the Secretary of 
        Transportation;
            (3) coordinate with the Secretary of Transportation 
        regarding the development and implementation by the Federal 
        Government of augmentations to the basic Global Positioning 
        System that achieve or enhance uses of the system in support of 
        transportation;
            (4) coordinate with the Secretary of Commerce, the United 
        States Trade Representative, and other appropriate officials to 
        facilitate the development of new and expanded civil uses for 
        the Global Positioning System; and
            (5) develop measures for preventing hostile use of the 
        Global Positioning System in a particular area without 
        hindering peaceful civil use of the system elsewhere.
    (d) Federal Radionavigation Plan.--The Secretary of Defense and the 
Secretary of Transportation shall continue to prepare the Federal 
Radionavigation Plan every two years as originally provided for in the 
International Maritime Satellite Telecommunications Act (title V of the 
Communications Satellite Act of 1962; 47 U.S.C. 751 et seq.).
    (e) International Cooperation.--Congress urges the President to 
promote the security of the United States and its allies, the public 
safety, and commercial interests by--
            (1) undertaking a coordinated effort within the executive 
        branch to seek to establish the Global Positioning System, and 
        augmentations to the system, as a worldwide resource;
            (2) seeking to enter into international agreements to 
        establish signal and service standards that protect the Global 
        Positioning System from disruption and interference; and
            (3) undertaking efforts to eliminate any barriers to, and 
        other restrictions of foreign governments on, peaceful uses of 
        the Global Positioning System.
    (f) Prohibition of Support of Foreign System.--None of the funds 
authorized to be appropriated under this Act may be used to support the 
operation and maintenance or enhancement of any satellite navigation 
system operated by a foreign country.
    (g) Report.--(1) Not later than 30 days after the end of each even 
numbered fiscal year (beginning with fiscal year 1998), the Secretary 
of Defense shall submit to the Committees on Armed Services and on 
Appropriations on the Senate and the Committees on National Security 
and on Appropriations of the House of Representatives a report on the 
Global Positioning System. The report shall include a discussion of the 
following matters:
            (A) The operational status of the Global Positioning 
        System.
            (B) The capability of the system to satisfy effectively--
                    (i) the military requirements for the system that 
                are current as of the date of the report; and
                    (ii) the performance requirements of the Federal 
                Radionavigation Plan.
            (C) The most recent determination by the President 
        regarding continued use of the selective availability feature 
        of the Global Positioning System and the expected date of any 
        change or elimination of use of that feature.
            (D) The status of cooperative activities undertaken by the 
        United States with the governments of other countries 
        concerning the capability of the Global Positioning System or 
        any augmentation of the system to satisfy civil, commercial, 
        scientific, and military requirements, including a discussion 
        of the status and results of activities undertaken under any 
        regional international agreement.
            (E) Any progress made toward establishing the Global 
        Positioning System as an international standard for consistency 
        of navigational service.
            (F) Any progress made toward protecting the Global 
        Positioning System from disruption and interference.
            (G) The effects of use of the Global Positioning System on 
        national security, regional security, and the economic 
        competitiveness of United States industry, including the Global 
        Positioning System equipment and service industry and user 
        industries.
    (2) In preparing the parts of the report required under 
subparagraphs (D), (E), (F), and (G) of paragraph (1), the Secretary of 
Defense shall consult with the Secretary of Commerce, Secretary of 
Transportation, and Secretary of Labor.
    (h) Basic Global Positioning System Services Defined.--In this 
section, the term ``basic global positioning system services'' means 
the following components of the Global Positioning System that are 
operated and maintained by the Department of Defense:
            (1) The constellation of satellites.
            (2) The navigation payloads that produce the Global 
        Positioning System signals.
            (3) The ground stations, data links, and associated command 
        and control facilities.

SEC. 1065. LAW ENFORCEMENT AUTHORITY FOR SPECIAL AGENTS OF THE DEFENSE 
              CRIMINAL INVESTIGATIVE SERVICE.

    (a) Authority.--Chapter 81 of title 10, United States Code, is 
amended by inserting after section 1585 the following new section:
``Sec. 1585a. Special agents of the Defense Criminal Investigative 
              Service: law enforcement authority
    ``(a) Authority.--A special agent of the Defense Criminal 
Investigative Service designated under subsection (b) has the following 
authority:
            ``(1) To carry firearms.
            ``(2) To execute and serve any warrant or other process 
        issued under the authority of the United States.
            ``(3) To make arrests without warrant for--
                    ``(A) any offense against the United States 
                committed in the agent's presence; or
                    ``(B) any felony cognizable under the laws of the 
                United States if the agent has probable cause to 
                believe that the person to be arrested has committed or 
                is committing the felony.
    ``(b) Designation of Agents To Have Authority.--The Secretary of 
Defense may designate to have the authority provided under subsection 
(a) any special agent of the Defense Criminal Investigative Service 
whose duties include conducting, supervising, or coordinating 
investigations of criminal activity in programs and operations of the 
Department of Defense.
    ``(c) Guidelines on Exercise of Authority.--The authority provided 
under subsection (a) shall be exercised in accordance with guidelines 
prescribed by the Inspector General of the Department of Defense and 
approved by the Attorney General, and any other applicable guidelines 
prescribed by the Secretary of Defense or the Attorney General.''.
    (b) Conforming Amendment.--The table of sections at the beginning 
of such chapter is amended by inserting after the item relating to 
section 1585 the following:

``1585a. Special agents of the Defense Criminal Investigative Service: 
                            law enforcement authority.''.

SEC. 1066. REPEAL OF REQUIREMENT FOR CONTINUED OPERATION OF THE NAVAL 
              ACADEMY DAIRY FARM.

    (a) Repeal.--Section 810 of the Military Construction Authorization 
Act, 1968 (Public Law 90-110; 81 Stat. 309) is amended--
            (1) by striking out subsection (a); and
            (2) in subsection (b), by striking out ``nor shall'' and 
        all that follows through ``Act of Congress''.
    (b) Conforming Amendments.--(1) Section 6971(b)(5) of title 10, 
United States Code, is amended by inserting ``(if any)'' before the 
period at the end.
    (2) Section 2105(b) of title 5, United States Code, is amended by 
inserting ``(if any)'' after ``Academy dairy''.

SEC. 1067. POW/MIA INTELLIGENCE ANALYSIS CELL.

    (a) Establishment of Intelligence Cell.--The Director of Central 
Intelligence, in consultation with the Secretary of Defense, shall 
establish a POW/MIA Intelligence Analysis Cell to provide analytical 
support on POW/MIA matters to all departments and agencies of the 
Federal Government involved with such matters. The Director of Central 
Intelligence shall oversee the functions of the POW/MIA Intelligence 
Analysis Cell and determine its structure and location.
    (b) Preparation of National Intelligence Estimate.--The POW/MIA 
Intelligence Analysis Cell shall be the primary source of support for 
the Director in the preparation of the Special National Intelligence 
Estimate on POW/MIA matters that was directed by the Assistant to the 
President for National Security Affairs in accordance with the letter 
on that subject that the Assistant to the President transmitted to the 
Majority Leader of the Senate on April 10, 1997.
    (c) Consolidation of Intelligence Collection Requirements.--All 
intelligence collection requirements for the intelligence community 
regarding POW/MIA matters shall be consolidated within the POW/MIA 
Intelligence Analysis Cell.
    (d) Definitions.--In this section:
            (1) The term ``POW/MIA matters'' means matters concerning 
        prisoners of war and members of the Armed Forces who are 
        missing in action.
            (2) The term ``intelligence community'' has the meaning 
        given the term in section 3 of the National Security Act of 
        1947 (50 U.S.C. 401a).

SEC. 1068. PROTECTION OF EMPLOYEES FROM RETALIATION FOR CERTAIN 
              DISCLOSURES OF CLASSIFIED INFORMATION.

    (a) Disclosures to Officials Cleared for Access.--Section 2302(b) 
of title 5, United States Code, is amended--
            (1) in paragraph (8)--
                    (A) by striking out ``or'' at the end of 
                subparagraph (A);
                    (B) by inserting ``or'' at the end of subparagraph 
                (B)(ii); and
                    (C) by adding at the end the following:
                    ``(C) a disclosure by an employee or applicant of 
                information required by law or Executive order to be 
                kept secret in the interest of national defense or the 
                conduct of foreign affairs which the employee or 
                applicant reasonably believes to provide direct and 
                specific evidence of--
                            ``(i) a violation of any law, rule, or 
                        regulation,
                            ``(ii) gross mismanagement, a gross waste 
                        of funds, abuse of authority, or a substantial 
                        and specific danger to public health or safety, 
                        or
                            ``(iii) a false statement to Congress on an 
                        issue of material fact,
                if the disclosure is made to a member of a committee of 
                Congress having a primary responsibility for oversight 
                of a department, agency, or element of the Federal 
                Government to which the disclosed information relates, 
                to any other Member of Congress who is authorized to 
                receive information of the type disclosed, or to an 
                employee of the executive branch or Congress who has 
                the appropriate security clearance for access to the 
                information disclosed;''; and
            (2) by striking out the matter following paragraph (11).
    (b) Dissemination of Information on New Protection.--Not later than 
30 days after the date of the enactment of this Act, the President 
shall--
            (1) take such action as is necessary to ensure that 
        employees of the executive branch having access to classified 
        information receive notice that the disclosure of such 
        information to Congress is not prohibited by law, executive 
        order, or regulation, and is not otherwise contrary to public 
        policy when the information is disclosed under the 
        circumstances described in subparagraph (C) of section 
        2302(b)(8) of title 5, United States Code (as added by 
        subsection (a)); and
            (2) submit to Congress a report on the actions taken to 
        carry out paragraph (1).
    (c) Effective Date and Applicability.--The amendments made by 
subsection (a) shall take effect on October 1, 1998, and shall apply to 
a taking, failing to take, or threat to take or fail to take a 
personnel action on or after such date because of a disclosure 
described in subparagraph (C) of section 2302(b)(8) of title 5, United 
States Code (as added by subsection (a)), that is made before, on, or 
after such date.

SEC. 1069. APPLICABILITY OF CERTAIN PAY AUTHORITIES TO MEMBERS OF THE 
              COMMISSION ON SERVICEMEMBERS AND VETERANS TRANSITION 
              ASSISTANCE.

    (a) Applicability.--Section 705(a) of the Veterans' Benefits 
Improvements Act of 1996 (Public Law 104-275; 110 Stat. 3349; 38 U.S.C. 
545 note) is amended--
            (1) by inserting ``(1)'' before ``Each member''; and
            (2) by adding at the end the following:
    ``(2)(A) A member of the Commission who is an annuitant otherwise 
covered by section 8344 or 8468 of title 5, United States Code, by 
reason of membership on the Commission shall not be subject to the 
provisions of such section with respect to such membership.
    ``(B) A member of the Commission who is a member or former member 
of a uniformed service shall not be subject to the provisions of 
subsections (b) and (c) of section 5532 of such title with respect to 
membership on the Commission.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect as if included in the provisions of section 705(a) of the 
Veterans' Benefits Improvements Act of 1996 to which such amendments 
relate.

SEC. 1070. TRANSFER OF B-17 AIRCRAFT TO MUSEUM.

    (a) Authority.--The Secretary of the Air Force may convey, without 
consideration, to the Planes of Fame Museum, Chino, California 
(hereafter in this section referred to as the ``museum''), all right, 
title, and interest of the United States in and to the B-17 aircraft 
known as the ``Picadilly Lilly'', an aircraft that has been in the 
possession of the museum since 1959.
    (b) Condition of Aircraft.--Before conveying ownership of the 
aircraft, the Secretary shall alter the aircraft as 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 in any other way before 
conveying the ownership.
    (c) Condition for Conveyance.--A conveyance of ownership of the 
aircraft under this section shall be subject to the condition that the 
museum not convey any ownership interest in, or transfer possession of, 
the aircraft to any other party without the advance approval of the 
Secretary of the Air Force.
    (d) Reversion.--If the Secretary of the Air Force determines at any 
time that the museum has conveyed an ownership interest in, or 
transferred possession of, the aircraft to any other party without the 
advance approval of the Secretary, all right, title, and interest in 
and to the aircraft, including any repairs or alterations of the 
aircraft, shall revert to the United States, and the United States 
shall have the right of immediate possession of the aircraft.
    (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, the United States shall not be liable for any death, 
injury, loss, or damages that result from any use of the aircraft 
conveyed under this section by any person other than the United States 
after the conveyance is complete.

SEC. 1071. FIVE-YEAR EXTENSION OF AVIATION INSURANCE PROGRAM.

    (a) Extension.--Section 44310 of title 49, United States Code, is 
amended by striking out ``September 30, 1997'' and inserting in lieu 
thereof ``September 30, 2002''.
    (b) Effective Date.--This section shall take effect as of September 
30, 1997.

SEC. 1072. TREATMENT OF MILITARY FLIGHT OPERATIONS.

    No military flight operation (including a military training 
flight), or designation of airspace for such an operation, may be 
treated as a transportation program or project for purposes of section 
303(c) of title 49, United States Code.

SEC. 1073. NATURALIZATION OF FOREIGN NATIONALS WHO SERVED HONORABLY IN 
              THE ARMED FORCES OF THE UNITED STATES.

    (a) In General.--Section 329 of the Immigration and Nationality Act 
(8 U.S.C. 1440) is amended--
            (1) in subsection (a)(1)--
                    (A) by inserting ``, reenlistment, extension of 
                enlistment,'' after ``at the time of enlistment''; and
                    (B) by inserting ``or on board a public vessel 
                owned or operated by the United States for 
                noncommercial service,'' after ``United States, the 
                Canal Zone, American Samoa, or Swains Island,''; and
            (2) by adding at the end the following new subsection:
    ``(d) Waiver.--(1) For purposes of the naturalization of natives of 
the Philippines under section 405 of the Immigration Act of 1990 (8 
U.S.C. 1440 note), notwithstanding any other provision of law--
            ``(A) the processing of applications for naturalization, 
        filed in accordance with the provisions of Section 405 of the 
        Immigration Act of 1990 (Public Law 101-649; 104 Stat. 5039), 
        including necessary interviews, may be conducted in the 
        Philippines by employees of the Service designated pursuant to 
        section 335(b) of this Act; and
            ``(B) oaths of allegiance for applications under this 
        subsection may be administered in the Philippines by employees 
        of the Service designated pursuant to section 335(b) of this 
        Act.
    ``(2) Paragraph (1) shall be effective only during the period 
beginning February 3, 1996, and ending at the end of February 2, 
2006.''.
    (b) Effective Dates.--The amendments made by subsection (a)(1) 
shall be effective for all enlistments, reenlistments, extensions of 
enlistment, or inductions of persons occurring on or after January 1, 
1990.

SEC. 1074. DESIGNATION OF BOB HOPE AS HONORARY VETERAN.

    (a) Findings.--Congress makes the following findings:
            (1) The United States has never in its more than 200 years 
        of existence conferred honorary veteran status on any person.
            (2) Honorary veteran status is and should remain an 
        extraordinary honor not lightly conferred nor frequently 
        granted.
            (3) It is fitting and proper to confer that status on Bob 
        Hope.
            (4) Bob Hope attempted to enlist in the Armed Forces to 
        serve his country during World War II but was informed that the 
        greatest service he could provide his country was as a civilian 
        entertainer for the troops.
            (5) Since then, Bob Hope has travelled to visit and 
        entertain millions of members of the Armed Forces of the United 
        States throughout World War II, the Korean Conflict, the 
        Vietnam War, the Persian Gulf War, and the Cold War, in Europe, 
        Africa, England, Wales, Ireland, Scotland, Sicily, the Aleutian 
        Islands, Pearl Harbor, Kwajalein Island, Guam, Japan, Korea, 
        Vietnam, Saudi Arabia, and many other locations.
            (6) Bob Hope frequently elected to stage his shows in 
        forward combat areas.
            (7) Bob Hope richly deserves the more than 100 awards and 
        citations that he has received from government, military, and 
        civic groups.
            (8) Those awards include the American Congressional Gold 
        Medal, the Medal of Freedom, the People to People Award, the 
        Peabody Award, the Jean Hersholdt Humanitarian Award, the Al 
        Jolson Award of the Veterans of Foreign Wars, the Medal of 
Liberty, and the Distinguished Service Medals of each of the Armed 
Forces.
            (9) Bob Hope has given unselfishly of himself for over half 
        a century to be with American service members on foreign 
        shores, has worked tirelessly to bring a spirit of humor and 
        cheer to millions of military members during their loneliest 
        moments, and has, thereby, extended to them for the American 
        people a touch of home away from home.
    (b) Honorary Designation.--The elected representatives of the 
American people, expressing the gratitude of the American people to Bob 
Hope for his years of unselfish service to the members of the Armed 
Forces of the United States, designate Bob Hope as an honorary veteran 
of the Armed Forces of the United States.

           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

SEC. 1101. USE OF PROHIBITED CONSTRAINTS TO MANAGE DEPARTMENT OF 
              DEFENSE PERSONNEL.

    Section 129 of title 10, United States Code, is amended by adding 
at the end the following:
    ``(f)(1) Not later than February 1 and August 1 of each year, the 
Secretary of each military department and the head of each Defense 
Agency shall submit to the Committee on Armed Services of the Senate 
and the Committee on National Security of the House of Representative a 
report on the management of the civilian workforce under the 
jurisdiction of that official.
    ``(2) Each report of an official under paragraph (1) shall contain 
the following:
            ``(A) The official's certification that the civilian 
        workforce under the jurisdiction of the official is not subject 
        to any constraint or limitation in terms of man years, end 
        strength, full-time equivalent positions, or maximum number of 
        employees, and that, during the six months preceding the date 
        on which the report is due, such workforce has not been subject 
        to any such constraint or limitation.
            ``(B) A description of how the civilian workforce is 
        managed.
            ``(C) A detailed description of the analytical tools used 
        to determine civilian workforce requirements during the six-
        month period referred to in subparagraph (A).''.

SEC. 1102. EMPLOYMENT OF CIVILIAN FACULTY AT THE MARINE CORPS 
              UNIVERSITY.

    (a) Expanded Authority.--Subsections (a) and (c) of section 7478 of 
title 10, United States Code, are amended by striking out ``the Marine 
Corps Command and Staff College'' and inserting in lieu thereof ``a 
school of the Marine Corps University''.
    (b) Clerical Amendments.--(1) The heading of such section is 
amended to read as follows:
``Sec. 7478. Naval War College and Marine Corps University: civilian 
              faculty members''.
    (2) The table of sections at the beginning of chapter 643 of such 
title is amended by striking out the item relating to section 7478 and 
inserting in lieu thereof the following new item:

``7478. Naval War College and Marine Corps University: civilian faculty 
                            members.''.

SEC. 1103. EXTENSION AND REVISION OF VOLUNTARY SEPARATION INCENTIVE PAY 
              AUTHORITY.

    (a) Remittance to CSRS Fund.--Section 5597 of title 5, United 
States Code, is amended by adding at the end the following:
    ``(h)(1) In addition to any other payment that it is required to 
make under subchapter III of chapter 83 or chapter 84 of this title, 
the Department of Defense shall remit to the Office of Personnel 
Management an amount equal to 15 percent of the final basic pay of each 
covered employee. The remittance shall be in place of any remittance 
with respect to the employee that is otherwise required under section 
4(a) of the Federal Workforce Restructuring Act of 1994 (5 U.S.C. 8331 
note).
    ``(2) Amounts remitted under paragraph (1) shall be deposited in 
the Treasury of the United States to the credit of the Civil Service 
Retirement and Disability Fund.
    ``(3) For the purposes of this subsection--
            ``(A) the term `covered employee' means an employee who is 
        subject to subchapter III of chapter 83 or chapter 84 of this 
        title and to whom a voluntary separation incentive has been 
        paid under this section on the basis of a separation on or 
        after October 1, 1997; and
            ``(B) the term `final basic pay' has the meaning given such 
        term in section 4(a)(2) of the Federal Workforce Restructuring 
        Act of 1994 (5 U.S.C. 8331 note).''.
    (b) Extension of Authority.--(1) Subsection (e) of such section is 
amended by striking out ``September 30, 1999'' and inserting in lieu 
thereof ``September 30, 2001''.
    (2) Section 4436(d)(2) of the Defense Conversion, Reinvestment, and 
Transition Assistance Act of 1992 (5 U.S.C. 8348 note) is amended by 
striking ``January 1, 2000'' and inserting in lieu thereof ``January 1, 
2002''.

SEC. 1104. REPEAL OF DEADLINE FOR PLACEMENT CONSIDERATION OF 
              INVOLUNTARILY SEPARATED MILITARY RESERVE TECHNICIANS.

    Section 3329(b) of title 5, United States Code, is amended by 
striking out ``a position described in subsection (c) not later than 6 
months after the date of the application''.

SEC. 1105. RATE OF PAY OF DEPARTMENT OF DEFENSE OVERSEAS TEACHER UPON 
              TRANSFER TO GENERAL SCHEDULE POSITION.

    (a) Prevention of Excessive Increases.--Section 5334(d) of title 5, 
United States Code, is amended by striking out ``20 percent'' and all 
that follows and inserting in lieu thereof ``an amount determined under 
regulations which the Secretary of Defense shall prescribe for the 
determination of the yearly rate of pay of the position. The amount by 
which a rate of pay is increased under the regulations may not exceed 
the amount equal to 20 percent of that rate of pay.''.
    (b) Effective Date and Savings Provision.--(1) The amendment made 
by subsection (a) shall take effect 180 days after the date of the 
enactment of this Act.
    (2) In the case of a person who is employed in a teaching position 
referred to in section 5334(d) of title 5, United States Code, on the 
day before the effective date determined under paragraph (1), the rate 
of pay determined under such section (as in effect on that day) shall 
not be reduced by reason of the amendment made by subsection (a) for so 
long as the person continues to serve in that position or another such 
position without a break in service on or after that day.

SEC. 1106. NATURALIZATION OF EMPLOYEES OF THE GEORGE C. MARSHALL 
              EUROPEAN CENTER FOR SECURITY STUDIES.

    (a) Eligibility Without Permanent Residence.--Subsection (a) of 
section 506 of the Intelligence Authorization Act, Fiscal Year 1990 
(Public Law 101-193; 103 Stat. 1709; 8 U.S.C. 1430 note) is amended to 
read as follows:
    ``(a) For purposes of subsection (c) of section 319 of the 
Immigration and Nationality Act (8 U.S.C. 1430), the George C. Marshall 
European Center for Security Studies, located in Garmisch, Federal 
Republic of Germany, shall be considered to be an organization 
described in clause (1) of such subsection. Notwithstanding clauses (2) 
and (4) of such subsection and any other provision of title III of the 
Immigration and Nationality Act, neither prior admission to the United 
States for permanent residence nor presence in the United States at the 
time of naturalization is required as a condition for the 
naturalization (under the authority of such subsection) of a person 
employed by the Center.''.
    (b) Reference Correction.--The section heading of such section is 
amended to read as follows:

``requirements for citizenship for staff of george c. marshall european 
                     center for security studies''.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

SEC. 2001. SHORT TITLE.

    This division may be cited as the ``Military Construction 
Authorization Act for Fiscal Year 1998''.

                            TITLE XXI--ARMY

SEC. 2101. AUTHORIZED ARMY CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    (a) Inside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2104(a)(1), the 
Secretary of the Army may acquire real property and carry out military 
construction projects for the installations and locations inside the 
United States, and in the amounts, set forth in the following table:


                     Army: Inside the United States                     
------------------------------------------------------------------------
            State               Installation or location      Amount    
------------------------------------------------------------------------
Alabama......................  Redstone Arsenal.........     $27,000,000
Arizona......................  Fort Huachuca............     $20,000,000
California...................  Naval Weapons Station,        $23,000,000
                                Concord.                                
Colorado.....................  Fort Carson..............      $7,300,000
Georgia......................  Fort Gordon..............     $22,000,000
Hawaii.......................  Schofield Barracks.......     $44,000,000
Indiana......................  Crane Army Ammunition          $7,700,000
                                Activity.                               
Kansas.......................  Fort Leavenworth.........     $63,000,000
                               Fort Riley...............     $25,800,000
Kentucky.....................  Fort Campbell............     $53,600,000
                               Fort Knox................      $7,200,000
North Carolina...............  Fort Bragg...............      $6,500,000
South Carolina...............  Naval Weapons Station,         $7,700,000
                                Charleston.                             
Texas........................  Fort Sam Houston.........     $16,000,000
Virginia.....................  Charlottesville..........      $3,100,000
                               Fort A.P. Hill...........      $5,400,000
                               Fort Myer................      $8,200,000
Washington...................  Fort Lewis...............     $33,000,000
CONUS Classified.............  Classified Location......      $6,500,000
                                                         ---------------
                                   Total:...............    $387,000,000
------------------------------------------------------------------------

    (b) Outside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2104(a)(2), the 
Secretary of the Army may acquire real property and carry out military 
construction projects for the locations outside the United States, and 
in the amounts, set forth in the following table:


                     Army: Outside the United States                    
------------------------------------------------------------------------
                                     Installation or                    
            Country                      location             Amount    
------------------------------------------------------------------------
Germany........................  Katterbach Kaserne,         $22,000,000
                                  Ansbach.                              
                                 Kitzingen..............      $4,365,000
                                 Tompkins Barracks,           $8,800,000
                                  Heidelberg.                           
                                 Rhine Ordnance               $6,000,000
                                  Barracks, Military                    
                                  Support Group,                        
                                  Kaiserslautern.                       
Korea..........................  Camp Casey.............      $5,100,000
                                 Camp Castle............      $8,400,000
                                 Camp Humphreys.........     $32,000,000
                                 Camp Red Cloud.........     $23,600,000
                                 Camp Stanley...........      $7,000,000
Various Overseas...............  Various Locations......     $37,000,000
Worldwide......................  Host Nation Support....     $20,000,000
                                                         ---------------
                                     Total:.............    $174,265,000
------------------------------------------------------------------------

SEC. 2102. FAMILY HOUSING.

    (a) Construction and Acquisition.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2104(a)(5)(A), the Secretary of the Army may construct or acquire 
family housing units (including land acquisition) at the installations, 
for the purposes, and in the amounts set forth in the following table:


                                              Army: Family Housing                                              
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Purpose                 Amount    
----------------------------------------------------------------------------------------------------------------
Alaska................................  Fort Richardson..........  52 Units.....................      $9,600,000
                                        Fort Wainwright..........  32 Units.....................      $8,300,000
Florida...............................  Miami....................  8 Units......................      $2,300,000
Hawaii................................  Schofield Barracks.......  132 Units....................     $26,600,000
Kentucky..............................  Fort Campbell............  Family housing improvements..      $8,500,000
Maryland..............................  Fort Meade...............  56 Units.....................      $7,900,000
New York..............................  United States Military     Whole neighborhood                 $5,400,000
                                         Academy, West Point.       revitalization.                             
North Carolina........................  Fort Bragg...............  174 Units....................     $20,150,000
Texas.................................  Fort Bliss...............  91 Units.....................     $12,900,000
                                        Fort Hood................  130 Units....................     $18,800,000
                                                                                                 ---------------
                                                                       Total:...................    $120,450,000
----------------------------------------------------------------------------------------------------------------

    (b) Planning and Design.--Using amounts appropriated pursuant to 
the authorization of appropriations in section 2104(a)(5)(A), the 
Secretary of the Army may carry out architectural and engineering 
services and construction design activities with respect to the 
construction or improvement of family housing units in an amount not to 
exceed $11,665,000.

SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, and using 
amounts appropriated pursuant to the authorization of appropriations in 
section 2104(a)(5)(A), the Secretary of the Army may improve existing 
military family housing units in an amount not to exceed $44,800,000.

SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

    (a) In General.--Funds are hereby authorized to be appropriated for 
fiscal years beginning after September 30, 1997, for military 
construction, land acquisition, and military family housing functions 
of the Department of the Army in the total amount of $1,957,129,000 as 
follows:
            (1) For military construction projects inside the United 
        States authorized by section 2101(a), $360,500,000.
            (2) For the military construction projects outside the 
        United States authorized by section 2101(b), $174,265,000.
            (3) For unspecified minor military construction projects 
        authorized by section 2805 of title 10, United States Code, 
        $6,000,000.
            (4) For architectural and engineering services and 
        construction design under section 2807 of title 10, United 
        States Code, $50,512,000.
            (5) For military family housing functions:
                    (A) For construction and acquisition, planning and 
                design, and improvement of military family housing and 
                facilities, $176,915,000.
                    (B) For support of military family housing 
                (including the functions described in section 2833 of 
                title 10, United States Code), $1,148,937,000.
            (6) For the construction of the National Range Control 
        Center, White Sands Missile Range, New Mexico, authorized by 
section 2101(a) of the Military Construction Authorization Act for 
Fiscal Year 1997 (division B of Public Law 104-201; 110 Stat. 2763), 
$18,000,000.
            (7) For the construction of the whole barracks complex 
        renewal, Fort Knox, Kentucky, authorized by section 2101(a) of 
        the Military Construction Authorization Act for Fiscal Year 
        1997 (110 Stat. 2763), $22,000,000.
    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 of title 
10, United States Code, and any other cost variation authorized by law, 
the total cost of all projects carried out under section 2101 of this 
Act may not exceed--
            (1) the total amount authorized to be appropriated under 
        paragraphs (1) and (2) of subsection (a); and
            (2) $26,500,000 (the balance of the amount authorized under 
        section 2101(a) for the construction of the United States 
        Disciplinary Barracks, Fort Leavenworth, Kansas).

SEC. 2105. AUTHORITY TO USE CERTAIN PRIOR YEAR FUNDS TO CONSTRUCT A 
              HELIPORT AT FORT IRWIN, CALIFORNIA.

    (a) Authority To Use Funds.--Notwithstanding any other provision of 
law and subject to subsection (b), the Secretary of the Army may carry 
out a project to construct a heliport at Fort Irwin, California, using 
the following amounts:
            (1) Amounts appropriated pursuant to the authorization of 
        appropriations in section 2104(a)(1) of the Military 
        Construction Authorization Act for Fiscal Year 1995 (division B 
        of Public Law 103-337; 108 Stat. 3029) for the military 
        construction project at Fort Irwin authorized by section 
        2101(a) of that Act (108 Stat. 3027).
            (2) Amounts appropriated pursuant to the authorization of 
        appropriations in section 2104(a)(1) of the Military 
        Construction Authorization Act for Fiscal Year 1996 (division B 
        of Public Law 104-106; 110 Stat. 524) for the military 
        construction project at Fort Irwin authorized by section 
        2101(a) of that Act (110 Stat. 523).
    (b) Limitation on Availability.--Unless funds available under 
subsection (a) are obligated for the project covered by that subsection 
by the later of the dates set forth in section 2701(a) of this Act, the 
authority in that subsection to use funds for the project shall expire 
on the later of such dates.

                            TITLE XXII--NAVY

SEC. 2201. AUTHORIZED NAVY CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    (a) Inside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2204(a)(1), the 
Secretary of the Navy may acquire real property and carry out military 
construction projects for the installations and locations inside the 
United States, and in the amounts, set forth in the following table:


                     Navy: Inside the United States                     
------------------------------------------------------------------------
                                     Installation or                    
             State                       location             Amount    
------------------------------------------------------------------------
Arizona........................  Navy Detachment, Camp       $11,426,000
                                  Navajo.                               
                                 Marine Corps Air            $14,700,000
                                  Station, Yuma.                        
California.....................  Marine Corps Air            $14,020,000
                                  Station, Camp                         
                                  Pendleton.                            
                                 Marine Corps Air             $8,700,000
                                  Station, Miramar.                     
                                 Marine Corps Air-Ground      $3,810,000
                                  Combat Center,                        
                                  Twentynine Palms.                     
                                 Marine Corps Base, Camp     $39,469,000
                                  Pendleton.                            
                                 Naval Air Facility, El      $11,000,000
                                  Centro.                               
                                 Naval Air Station,          $19,600,000
                                  North Island.                         
Connecticut....................  Naval Submarine Base,       $23,560,000
                                  New London.                           
Florida........................  Naval Air Station,           $3,480,000
                                  Jacksonville.                         
Hawaii.........................  Honolulu (Fort DeRussy)      $9,500,000
                                 Marine Corps Air            $19,000,000
                                  Station, Kaneohe Bay.                 
                                 Naval Computer and           $3,900,000
                                  Telecommunications                    
                                  Area, Master Station,                 
                                  Eastern Pacific,                      
                                  Honolulu.                             
                                 Naval Station, Pearl        $25,000,000
                                  Harbor.                               
Illinois.......................  Naval Training Center,      $41,220,000
                                  Great Lakes.                          
Mississippi....................  Navy Combat Battalion       $22,440,000
                                  Construction Base,                    
                                  Gulfport.                             
North Carolina.................  Marine Corps Air             $8,800,000
                                  Station, Cherry Point.                
                                 Marine Corps Air            $19,900,000
                                  Station, New River.                   
Rhode Island...................  Naval Undersea Warfare       $8,900,000
                                  Center Division,                      
                                  Newport.                              
South Carolina.................  Marine Corps Recruit         $3,200,000
                                  Depot, Parris Island.                 
Virginia.......................  Fleet Combat Training        $7,000,000
                                  Center, Dam Neck.                     
                                 Naval Air Station,          $14,240,000
                                  Norfolk.                              
                                 Naval Air Station,          $28,000,000
                                  Oceana.                               
                                 Naval Amphibious Base,       $8,685,000
                                  Little Creek.                         
                                 Naval Station, Norfolk.     $64,970,000
                                 Naval Surface Warfare       $20,480,000
                                  Center, Dahlgren.                     
                                 Naval Weapons Station,      $11,257,000
                                  Yorktown.                             
                                 Norfolk Naval Shipyard,      $9,500,000
                                  Portsmouth.                           
Washington.....................  Naval Air Station,           $1,100,000
                                  Whidbey Island.                       
                                 Puget Sound Naval            $4,400,000
                                  Shipyard, Bremerton.                  
                                                         ---------------
                                     Total:.............    $481,257,000
------------------------------------------------------------------------

    (b) Outside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2204(a)(2), the 
Secretary of the Navy may acquire real property and carry out military 
construction projects for the installations and locations outside the 
United States, and in the amounts, set forth in the following table:


                     Navy: Outside the United States                    
------------------------------------------------------------------------
                                     Installation or                    
            Country                      location             Amount    
------------------------------------------------------------------------
Bahrain........................  Administrative Support      $30,100,000
                                  Unit, Bahrain.                        
Guam...........................  Naval Computer and           $4,050,000
                                  Telecommunications                    
                                  Area, Master Station,                 
                                  Western Pacific.                      
Italy..........................  Naval Air Station,          $21,440,000
                                  Sigonella.                            
                                 Naval Support Activity,      $8,200,000
                                  Naples.                               
Puerto Rico....................  Naval Station,               $9,500,000
                                  Roosevelt Roads.                      
United Kingdom.................  Joint Maritime               $2,330,000
                                  Communications Center,                
                                  Saint Mawgan.                         
                                                         ---------------
                                     Total:.............     $75,620,000
------------------------------------------------------------------------

SEC. 2202. FAMILY HOUSING.

    (a) Construction and Acquisition.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2204(a)(5)(A), the Secretary of the Navy may construct or acquire 
family housing units (including land acquisition) at the installations, 
for the purposes, and in the amounts set forth in the following table:


                                              Navy: Family Housing                                              
----------------------------------------------------------------------------------------------------------------
                 State                         Installation                   Purpose                 Amount    
----------------------------------------------------------------------------------------------------------------
California............................  Marine Corps Air Station,  166 Units....................     $28,881,000
                                         Miramar.                                                               
                                        Marine Corps Air-Ground    132 Units....................     $23,891,000
                                         Combat Center,                                                         
                                         Twentynine Palms.                                                      
                                        Marine Corps Base, Camp    171 Units....................     $22,518,000
                                         Pendleton.                                                             
                                        Naval Air Station,         128 Units....................     $23,226,000
                                         Lemoore.                                                               
North Carolina........................  Marine Corps Base, Camp    37 Units.....................      $2,863,000
                                         Lejeune.                                                               
Texas.................................  Naval Air Station, Corpus  57 Units.....................      $6,470,000
                                         Christi.                                                               
Washington............................  Naval Air Station,         198 Units....................     $32,290,000
                                         Whidbey Island.                                                        
                                                                                                 ---------------
                                                                       Total:...................    $140,139,000
----------------------------------------------------------------------------------------------------------------

    (b) Planning and Design.--Using amounts appropriated pursuant to 
the authorization of appropriations in section 2204(a)(5)(A), the 
Secretary of the Navy may carry out architectural and engineering 
services and construction design activities with respect to the 
construction or improvement of military family housing units in an 
amount not to exceed $15,850,000.

SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, and using 
amounts appropriated pursuant to the authorization of appropriations in 
section 2204(a)(5)(A), the Secretary of the Navy may improve existing 
military family housing units in an amount not to exceed $173,780,000.

SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

    (a) In General.--Funds are hereby authorized to be appropriated for 
fiscal years beginning after September 30, 1997, for military 
construction, land acquisition, and military family housing functions 
of the Department of the Navy in the total amount of $1,916,887,000 as 
follows:
            (1) For military construction projects inside the United 
        States authorized by section 2201(a), $448,637,000.
            (2) For military construction projects outside the United 
        States authorized by section 2201(b), $75,620,000.
            (3) For unspecified minor construction projects authorized 
        by section 2805 of title 10, United States Code, $9,960,000.
            (4) For architectural and engineering services and 
        construction design under section 2807 of title 10, United 
        States Code, $47,597,000.
            (5) For military family housing functions:
                    (A) For construction and acquisition, planning and 
                design, and improvement of military family housing and 
                facilities, $329,769,000.
                    (B) For support of military housing (including 
                functions described in section 2833 of title 10, United 
                States Code), $976,504,000.
            (6) For construction of a large anachoic chamber facility 
        at Patuxent River Naval Warfare Center, Maryland, authorized by 
        section 2201(a) of the Military Construction Authorization Act 
        for Fiscal Year 1993 (division B of Public Law 102-484; 106 
        Stat. 2590), $9,000,000.
            (7) For construction of a bachelor enlisted quarters at 
        Naval Hospital, Great Lakes, Illinois, authorized by section 
        2201(a) of the Military Construction Authorization Act for 
        Fiscal Year 1997 (division B of Public Law 104-201; 110 Stat. 
        2766), $5,200,000.
            (8) For construction of a bachelor enlisted quarters at 
        Naval Station, Roosevelt Roads, Puerto Rico, authorized by 
        section 2201(b) of the Military Construction Authorization Act 
        for Fiscal Year 1997 (110 Stat. 2767), $14,600,000.
    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 of title 
10, United States Code, and any other cost variation authorized by law, 
the total cost of all projects carried out under section 2201 of this 
Act may not exceed--
            (1) the total amount authorized to be appropriated under 
        paragraphs (1) and (2) of subsection (a); and
            (2) $32,620,000 (the balance of the amount authorized under 
        section 2101(a) for the replacement of the Berthing Pier at 
        Naval Station, Norfolk, Virginia.
    (c) Adjustment.--The total amount authorized to be appropriated 
under paragraph (5) of subsection (a) is the sum of the amounts 
authorized to be appropriated under such paragraph, reduced by 
$8,463,000 (the combination of project savings resulting from favorable 
bids, reduced overhead costs, and cancellations due to force structure 
changes).

SEC. 2205. AUTHORIZATION OF MILITARY CONSTRUCTION PROJECT AT PASCAGOULA 
              NAVAL STATION, MISSISSIPPI, FOR WHICH FUNDS HAVE BEEN 
              APPROPRIATED.

    (a) Authorization.--The table in section 2201(a) of the Military 
Construction Authorization Act for Fiscal Year 1997 (division B of 
Public Law 104-201; 110 Stat. 2766) is amended by striking out the item 
relating to Navy Project, Stennis Space Center, Mississippi, and 
inserting in lieu thereof the following:


                                                                        
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------
Mississippi....................  Naval Station                $4,990,000
                                  Pascagoula.                           
                                 Navy Project, Stennis        $7,960,000
                                  Space Center.                         
------------------------------------------------------------------------

    (b) Conforming Amendments.--Section 2204(a) of such Act (110 Stat. 
2769) is amended--
            (1) in the matter preceding paragraph (1), by striking out 
        ``$2,213,731,000'' and inserting in lieu thereof 
        ``$2,218,721,000''; and
            (2) in paragraph (1), by striking out ``$579,312,000'' and 
        inserting in lieu thereof ``$584,302,000''.

                         TITLE XXIII--AIR FORCE

SEC. 2301. AUTHORIZED AIR FORCE CONSTRUCTION AND LAND ACQUISITION 
              PROJECTS.

    (a) Inside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2304(a)(1), the 
Secretary of the Air Force may acquire real property and carry out 
military construction projects for the installations and locations 
inside the United States, and in the amounts, set forth in the 
following table:


                   Air Force: Inside the United States                  
------------------------------------------------------------------------
                                     Installation or                    
             State                       location             Amount    
------------------------------------------------------------------------
Alabama........................  Maxwell Air Force Base.      $5,574,000
Alaska.........................  Clear Air Force Station     $67,069,000
                                 Elmendorf Air Force          $6,100,000
                                  Base.                                 
                                 Eielson Air Force Base.     $13,764,000
                                 Indian Mountain Long         $1,991,000
                                  Range Radar Site.                     
California.....................  Edwards Air Force Base.      $2,887,000
                                 Vandenberg Air Force        $26,876,000
                                  Base.                                 
Colorado.......................  Buckley Air National         $6,718,000
                                  Guard Base.                           
                                 Falcon Air Force            $10,551,000
                                  Station.                              
                                 Peterson Air Force Base      $4,081,000
                                 United States Air Force     $15,229,000
                                  Academy.                              
Florida........................  Eglin Auxiliary Field 9      $6,470,000
                                 MacDill Air Force Base.      $1,543,000
Georgia........................  Moody Air Force Base...     $15,900,000
                                 Robins Air Force Base..     $18,663,000
Idaho..........................  Mountain Home Air Force     $30,669,000
                                  Base.                                 
Kansas.........................  McConnell Air Force         $19,219,000
                                  Base.                                 
Louisiana......................  Barksdale Air Force         $19,410,000
                                  Base.                                 
Mississippi....................  Keesler Air Force Base.     $30,855,000
Missouri.......................  Whiteman Air Force Base     $17,419,000
Montana........................  Malmstrom Air Force          $4,500,000
                                  Base.                                 
Nebraska.......................  Offutt Air Force Base..      $6,900,000
Nevada.........................  Nellis Air Force Base..      $5,900,000
New Jersey.....................  McGuire Air Force Base.      $9,954,000
New Mexico.....................  Cannon Air Force Base..      $2,900,000
                                 Kirtland Air Force Base     $20,300,000
North Carolina.................  Pope Air Force Base....      $8,356,000
North Dakota...................  Grand Forks Air Force        $8,560,000
                                  Base.                                 
                                 Minot Air Force Base...      $5,200,000
Ohio...........................  Wright-Patterson Air        $32,750,000
                                  Force Base.                           
Oklahoma.......................  Altus Air Force Base...     $11,000,000
                                 Tinker Air Force Base..      $9,655,000
                                 Vance Air Force Base...      $7,700,000
South Carolina.................  Shaw Air Force Base....      $6,072,000
South Dakota...................  Ellsworth Air Force          $6,600,000
                                  Base.                                 
Tennessee......................  Arnold Air Force Base..     $10,750,000
Texas..........................  Dyess Air Force Base...     $10,000,000
                                 Randolph Air Force Base      $2,488,000
Utah...........................  Hill Air Force Base....      $6,470,000
Virginia.......................  Langley Air Force Base.      $4,031,000
Washington.....................  Fairchild Air Force         $24,016,000
                                  Base.                                 
                                 McChord Air Force Base.      $9,655,000
CONUS Classified...............  Classified Location....      $6,175,000
                                                         ---------------
                                     Total:.............    $540,920,000
------------------------------------------------------------------------

    (b) Outside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2304(a)(2), the 
Secretary of the Air Force may acquire real property and carry out 
military construction projects for the installations and locations 
outside the United States, and in the amounts, set forth in the 
following table:


                  Air Force: Outside the United States                  
------------------------------------------------------------------------
                                     Installation or                    
            Country                      location             Amount    
------------------------------------------------------------------------
Germany........................  Spangdahlem Air Base...     $18,500,000
Italy..........................  Aviano Air Base........     $15,220,000
Korea..........................  Kunsan Air Base........     $10,325,000
Portugal.......................  Lajes Field, Azores....      $4,800,000
United Kingdom.................  Royal Air Force,            $11,400,000
                                  Lakenheath.                           
Overseas Classified............  Classified Location....     $29,100,000
                                                         ---------------
                                     Total:.............     $89,345,000
------------------------------------------------------------------------

SEC. 2302. FAMILY HOUSING.

    (a) Construction and Acquisition.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2304(a)(5)(A), the Secretary of the Air Force may construct or acquire 
family housing units (including land acquisition) at the installations, 
for the purposes, and in the amounts set forth in the following table:


                                            Air Force: Family Housing                                           
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Purpose                 Amount    
----------------------------------------------------------------------------------------------------------------
California............................  Edwards Air Force Base...  51 units.....................      $8,500,000
                                        Travis Air Force Base....  70 units.....................      $9,714,000
                                        Vandenberg Air Force Base  108 units....................     $17,100,000
Delaware..............................  Dover Air Force Base.....  Ancillary Facility...........        $831,000
District of Columbia..................  Bolling Air Force Base...  46 units.....................      $5,100,000
Florida...............................  MacDill Air Force Base...  58 units.....................     $10,000,000
                                        Tyndall Air Force Base...  32 units.....................      $4,200,000
Georgia...............................  Robins Air Force Base....  106 units....................     $12,000,000
Idaho.................................  Mountain Home Air Force    60 units.....................     $11,032,000
                                         Base.                                                                  
Kansas................................  McConnell Air Force Base.  19 units.....................      $2,951,000
Mississippi...........................  Columbus Air Force Base..  50 units.....................      $6,200,000
                                        Keesler Air Force Base...  40 units.....................      $5,000,000
Montana...............................  Malmstrom Air Force Base.  956 units....................     $21,447,000
New Mexico............................  Kirtland Air Force Base..  180 units....................     $20,900,000
North Dakota..........................  Grand Forks Air Force      42 units.....................      $7,936,000
                                         Base.                                                                  
South Carolina........................  Charleston Air Force Base  Improve family housing area..     $14,300,000
Texas.................................  Dyess Air Force Base.....  70 units.....................     $10,503,000
                                        Goodfellow Air Force Base  3 units......................        $500,000
                                        Lackland Air Force Base..  50 units.....................      $7,400,000
Wyoming...............................  F.E. Warren Air Force      52 units.....................      $6,853,000
                                         Base.                                                                  
                                                                                                 ---------------
                                                                       Total:...................    $182,467,000
----------------------------------------------------------------------------------------------------------------

    (b) Planning and Design.--Using amounts appropriated pursuant to 
the authorization of appropriations in section 2304(a)(5)(A), the 
Secretary of the Air Force may carry out architectural and engineering 
services and construction design activities with respect to the 
construction or improvement of military family housing units in an 
amount not to exceed $13,021,000.

SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, and using 
amounts appropriated pursuant to the authorization of appropriations in 
section 2304(a)(5)(A), the Secretary of the Air Force may improve 
existing military family housing units in an amount not to exceed 
$102,195,000.

SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

    (a) In General.--Funds are hereby authorized to be appropriated for 
fiscal years beginning after September 30, 1997, for military 
construction, land acquisition, and military family housing functions 
of the Department of the Air Force in the total amount of 
$1,793,949,000 as follows:
            (1) For military construction projects inside the United 
        States authorized by section 2301(a), $540,920,000.
            (2) For military construction projects outside the United 
        States authorized by section 2301(b), $89,345,000.
            (3) For unspecified minor construction projects authorized 
        by section 2805 of title 10, United States Code, $8,545,000.
            (4) For architectural and engineering services and 
        construction design under section 2807 of title 10, United 
        States Code, $51,080,000.
            (5) For military housing functions:
                    (A) For construction and acquisition, planning and 
                design, planning improvement of military family housing 
                and facilities, $297,683,000.
                    (B) For support of military family housing 
                (including the functions described in section 2833 of 
                title 10, United States Code), $830,234,000.
    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 of title 
10, United States Code, and any other cost variation authorized by law, 
the total cost of all projects carried out under section 2301 of this 
Act may not exceed the total amount authorized to be appropriated under 
paragraphs (1) and (2) of subsection (a).
    (c) Adjustment.--The total amount authorized to be appropriated 
pursuant to paragraphs (1) through (5) of subsection (a) is the sum of 
the amounts authorized to be appropriated in such paragraphs, reduced 
by $23,858,000 (the combination of project savings resulting from 
favorable bids, reduced overhead costs, and cancellations due to force 
structure changes).

SEC. 2305. AUTHORIZATION OF MILITARY CONSTRUCTION PROJECT AT MCCONNELL 
              AIR FORCE BASE, KANSAS, FOR WHICH FUNDS HAVE BEEN 
              APPROPRIATED.

    (a) Authorization.--The table in section 2301(a) of the Military 
Construction Authorization Act for Fiscal Year 1997 (division B of 
Public Law 104-201; 110 Stat. 2771) is amended in the item relating to 
McConnell Air Force Base, Kansas, by striking out ``$19,130,000'' in 
the amount column and inserting in lieu thereof ``$25,830,000''.
    (b) Conforming Amendment.--Section 2304 of such Act (110 Stat. 
2774) is amended--
            (1) in the matter preceding paragraph (1), by striking out 
        ``$1,894,594,000'' and inserting in lieu thereof 
        ``$1,901,294,000''; and
            (2) in paragraph (1), by striking out ``$603,834,000'' and 
        inserting in lieu thereof ``$610,534,000''.

                      TITLE XXIV--DEFENSE AGENCIES

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

    (a) Inside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2405(a)(1), the 
Secretary of Defense may acquire real property and carry out military 
construction projects for the installations and locations inside the 
United States, and in the amounts, set forth in the following table:


               Defense Agencies: Inside the United States               
------------------------------------------------------------------------
                                     Installation or                    
             Agency                      location             Amount    
------------------------------------------------------------------------
Defense Commissary Agency......  Fort Lee, Virginia.....      $9,300,000
Defense Finance & Accounting     Naval Station, Pearl                   
 Service.                         Harbor, Hawaii........     $10,000,000
                                 Columbus Center, Ohio..      $9,722,000
                                 Naval Air Station,                     
                                  Millington, Tennessee.      $6,906,000
                                 Naval Station, Norfolk,                
                                  Virginia..............     $12,800,000
Defense Intelligence Agency....  Redstone Arsenal,                      
                                  Alabama...............     $32,700,000
                                 Bolling Air Force Base,                
                                  District of Columbia..      $7,000,000
Defense Logistics Agency.......  Elmendorf Air Force                    
                                  Base, Alaska..........     $21,700,000
                                 Naval Air Station,                     
                                  Jacksonville, Florida.      $9,800,000
                                 Westover Air Reserve                   
                                  Base, Massachusetts...      $4,700,000
                                 Defense Distribution                   
                                  New Cumberland--DDSP,                 
                                  Pennsylvania..........     $15,500,000
                                 Defense Distribution                   
                                  Depot--DDNV, Virginia.     $16,656,000
                                 Defense Fuel Support                   
                                  Point, Craney Island,                 
                                  Virginia..............     $22,100,000
                                 Defense General Supply                 
                                  Center, Richmond,                     
                                  Virginia..............      $5,200,000
                                 Defense Fuel Support                   
                                  Center, Truax Field,                  
                                  Wisconsin.............      $4,500,000
                                 CONUS Various, CONUS                   
                                  Various...............     $11,275,000
Defense Medical Facility Office  Naval Station, San                     
                                  Diego, California.....      $2,100,000
                                 Naval Submarine Base,                  
                                  New London,                           
                                  Connecticut...........      $2,300,000
                                 Naval Air Station,                     
                                  Pensacola, Florida....      $2,750,000
                                 Robins Air Force Base,                 
                                  Georgia...............     $19,000,000
                                 Fort Campbell, Kentucky     $13,600,000
                                 Fort Detrick, Maryland.      $4,650,000
                                 McGuire Air Force Base,                
                                  New Jersey............     $35,217,000
                                 Holloman Air Force                     
                                  Base, New Mexico......      $3,000,000
                                 Wright-Patterson Air                   
                                  Force Base, Ohio......      $2,750,000
                                 Lackland Air Force                     
                                  Base, Texas...........      $3,000,000
                                 Hill Air Force Base,                   
                                  Utah..................      $3,100,000
                                 Marine Corps Combat                    
                                  Development Command,                  
                                  Quantico, Virginia....     $19,000,000
                                 Naval Station, Everett,                
                                  Washington............      $7,500,000
National Security Agency.......  Fort Meade, Maryland...     $29,800,000
Special Operations Command.....  Naval Amphibious Base,                 
                                  North Island,                         
                                  California............      $7,400,000
                                 Eglin Auxiliary Field                  
                                  3, Florida............     $11,200,000
                                 Hurlburt Field, Florida      $2,450,000
                                 Fort Benning, Georgia..      $9,814,000
                                 Hunter Army Air Field,                 
                                  Fort Stewart, Georgia.      $2,500,000
                                 Naval Station, Pearl                   
                                  Harbor, Hawaii........      $7,400,000
                                 Mississippi Army                       
                                  Ammunition Plant,                     
                                  Mississippi...........      $9,900,000
                                 Fort Bragg, North                      
                                  Carolina..............      $9,800,000
                                                         ---------------
                                     Total:.............    $408,090,000
------------------------------------------------------------------------

    (b) Outside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2405(a)(2), the 
Secretary of Defense may acquire real property and carry out military 
construction projects for the installations and locations outside the 
United States, and in the amounts, set forth in the following table:


               Defense Agencies: Outside the United States              
------------------------------------------------------------------------
                                     Installation or                    
             Agency                      location             Amount    
------------------------------------------------------------------------
Ballistic Missile Defense        Kwajalein Atoll........      $4,565,000
 Organization.                                                          
Defense Logistics Agency.......  Defense Fuel Support                   
                                  Point, Anderson Air                   
                                  Force Base, Guam......     $16,000,000
                                 Defense Fuel Supply                    
                                  Center, Moron Air                     
                                  Base, Spain...........     $14,400,000
                                                         ---------------
                                     Total:.............     $34,965,000
------------------------------------------------------------------------

SEC. 2402. MILITARY HOUSING PLANNING AND DESIGN.

    Using amounts appropriated pursuant to the authorization of 
appropriations in section 2405(a)(13)(A), the Secretary of Defense may 
carry out architectural and engineering services and construction 
design activities with respect to the construction or improvement of 
military family housing units in an amount not to exceed $50,000.

SEC. 2403. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, and using 
amounts appropriated pursuant to the authorization of appropriation in 
section 2405(a)(13)(A), the Secretary of Defense may improve existing 
military family housing units in an amount not to exceed $4,950,000.

SEC. 2404. ENERGY CONSERVATION PROJECTS.

    Using amounts appropriated pursuant to the authorization of 
appropriations in section 2405(a)(11), the Secretary of Defense may 
carry out energy conservation projects under section 2865 of title 10, 
United States Code.

SEC. 2405. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

    (a) In General.--Funds are hereby authorized to be appropriated for 
fiscal years beginning after September 30, 1997, for military 
construction, land acquisition, and military family housing functions 
of the Department of Defense (other than the military departments), in 
the total amount of $2,778,531,000 as follows:
            (1) For military construction projects inside the United 
        States authorized by section 2401(a), $408,090,000.
            (2) For military construction projects outside the United 
        States authorized by section 2401(b), $34,965,000.
            (3) For military construction projects at Anniston Army 
        Depot, Alabama, authorized by section 2101(a) of the Military 
        Construction Authorization Act for Fiscal Year 1993 (division B 
        of Public Law 102-484; 106 Stat. 2587), $9,900,000.
            (4) For military construction projects at Walter Reed Army 
        Institute of Research, Maryland, hospital replacement, 
        authorized by section 2401(a) of the Military Construction 
        Authorization Act for Fiscal Year 1993 (106 Stat. 2599), 
        $20,000,000.
            (5) For military construction projects at Umatilla Army 
        Depot, Oregon, authorized by section 2401(a) of the Military 
        Construction Authorization Act for Fiscal Year 1995 (division B 
        of Public Law 103-337; 108 Stat. 3040), as amended by section 
        2407 of the Military Construction Authorization Act for Fiscal 
        Year 1996 (division B of Public Law 104-106; 110 Stat. 539) and 
        section 2408(2) of this Act, $57,427,000.
            (6) For military construction projects at the Defense 
        Finance and Accounting Service, Columbus, Ohio, authorized by 
        section 2401(a) of the Military Construction Authorization Act 
        of Fiscal Year 1996 (110 Stat. 535), $14,200,000.
            (7) For military construction projects at Portsmouth Naval 
        Hospital, Virginia authorized by section 2401(a) of the 
        Military Construction Authorization Act for Fiscal Years 1990 
        and 1991 (division B of Public Law 101-189; 103 Stat. 1640), 
        $34,600,000.
            (8) For contingency construction projects of the Secretary 
        of Defense under section 2804 of title 10, United States Code, 
        $9,844,000.
            (9) For unspecified minor construction projects under 
        section 2805 of title 10, United States Code, $34,457,000.
            (10) For architectural and engineering services and 
        construction design under section 2807 of title 10, United 
        States Code, $31,520,000.
            (11) For energy conservation projects authorized by section 
        2404 of this Act, $25,000,000.
            (12) For base closure and realignment activities as 
        authorized by the Defense Base Closure and Realignment Act of 
        1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 
        2687 note), $2,060,854,000.
            (13) For military family housing functions:
                    (A) For improvement and planning of military family 
                housing and facilities, $4,950,000.
                    (B) For support of military housing (including 
                functions described in section 2833 of title 10, United 
                States Code), $32,724,000, of which not more than 
                $27,673,000 may be obligated or expended for the 
                leasing of military family housing units worldwide.
    (b) Limitation of Total Cost of Construction Projects.--
Notwithstanding the cost variation authorized by section 2853 of title 
10, United States Code, and any other cost variations authorized by 
law, the total cost of all projects carried out under section 2401 of 
this Act may not exceed the total amount authorized to be appropriated 
under paragraphs (1) and (2) of subsection (a).

SEC. 2406. CLARIFICATION OF AUTHORITY RELATING TO FISCAL YEAR 1997 
              PROJECT AT NAVAL STATION, PEARL HARBOR, HAWAII.

    The table in section 2401(a) of the Military Construction 
Authorization Act for Fiscal Year 1997 (division B of Public Law 104-
201; 110 Stat. 2775) is amended in the item relating to Special 
Operations Command, Naval Station, Ford Island, Pearl Harbor, Hawaii, 
in the installation or location column by striking out ``Naval Station, 
Ford Island, Pearl Harbor, Hawaii'' and inserting in lieu thereof 
``Naval Station, Pearl City Peninsula, Pearl Harbor, Hawaii''.

SEC. 2407. AUTHORITY TO USE PRIOR YEAR FUNDS TO CARRY OUT CERTAIN 
              DEFENSE AGENCY MILITARY CONSTRUCTION PROJECTS.

    (a) Authority To Use Funds.--Notwithstanding any other provision of 
law and subject to subsection (c), the Secretary of Defense may carry 
out the military construction projects referred to in subsection (b), 
in the amounts specified in that subsection, using amounts appropriated 
pursuant to the authorization of appropriations in section 2405(a)(1) 
of the Military Construction Authorization Act for Fiscal Year 1995 
(division B of Public Law 103-337; 108 Stat. 3042) for the military 
construction project authorized at McClellan Air Force Base, 
California, by section 2401 of that Act (108 Stat. 3041).
    (b) Covered Projects.--Funds available under subsection (a) may be 
used for military construction projects as follows:
            (1) Construction of an addition to the Aeromedical Clinic 
        at Anderson Air Base, Guam, $3,700,000.
            (2) Construction of an occupational health clinic facility 
        at Tinker Air Force Base, Oklahoma, $6,500,000.
    (c) Limitation on Availability.--Unless funds available under 
subsection (a) are obligated for a project referred to in subsection 
(b) by the later of the dates set forth in section 2701(a), the 
authority in subsection (a) to use such funds for the project shall 
expire on the later of such dates.

SEC. 2408. MODIFICATION OF AUTHORITY TO CARRY OUT FISCAL YEAR 1995 
              PROJECTS.

    The table in section 2401 of the Military Construction 
Authorization Act for Fiscal Year 1995 (division B of Public Law 103-
337; 108 Stat. 3040), as amended by section 2407 of the Military 
Construction Authorization Act for Fiscal Year 1996 (division B of 
Public Law 104-106; 110 Stat. 539), under the agency heading relating 
to Chemical Weapons and Munitions Destruction, is amended--
            (1) in the item relating to Pine Bluff Arsenal, Arkansas, 
        by striking out ``$115,000,000'' in the amount column and 
        inserting in lieu thereof ``$134,000,000''; and
            (2) in the item relating to Umatilla Army Depot, Oregon, by 
        striking out ``$186,000,000'' in the amount column and 
        inserting in lieu thereof ``$187,000,000''.

SEC. 2409. AVAILABILITY OF FUNDS FOR FISCAL YEAR 1995 PROJECT RELATING 
              TO RELOCATABLE OVER-THE-HORIZON RADAR, NAVAL STATION 
              ROOSEVELT ROADS, PUERTO RICO.

    (a) Availability of Funds.--Notwithstanding any other provision of 
law and except as provided in subsection (b), funds appropriated under 
the heading ``Drug Interdiction and Counter-Drug Activities, Defense'' 
in title VI of the Department of Defense Appropriations Act, 1995 
(Public Law 103-335; 108 Stat. 2615) for the construction of a 
relocatable over-the-horizon radar at Naval Station Roosevelt Roads, 
Puerto Rico, shall be available for that purpose until the later of--
            (1) October 1, 1998; or
            (2) the date of enactment of an Act authorizing funds for 
        military construction for fiscal year 1999.
    (b) Exception.--Subsection (a) shall not apply to the use of funds 
covered by that subsection for the purpose specified in that subsection 
if such funds are obligated before the later of the dates specified in 
that subsection.

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                PROGRAM

SEC. 2501. AUTHORIZED NATO CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    The Secretary of Defense may make contributions for the North 
Atlantic Treaty Organization Security Investment program as provided in 
section 2806 of title 10, United States Code, in an amount not to 
exceed the sum of the amount authorized to be appropriated for this 
purpose in section 2502 and the amount collected from the North 
Atlantic Treaty Organization as a result of construction previously 
financed by the United States.

SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.

    Funds are hereby authorized to be appropriated for fiscal years 
beginning after September 30, 1997, for contributions by the Secretary 
of Defense under section 2806 of title 10, United States Code, for the 
share of the United States of the cost of projects for the North 
Atlantic Treaty Organization Security Investment program authorized by 
section 2501, in the amount of $152,600,000.

            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

SEC. 2601. AUTHORIZED GUARD AND RESERVE CONSTRUCTION AND LAND 
              ACQUISITION PROJECTS.

    There are authorized to be appropriated for fiscal years beginning 
after September 30, 1997, for the costs of acquisition, architectural 
and engineering services, and construction of facilities for the Guard 
and Reserve Forces, and for contributions therefor, under chapter 1803 
of title 10, United States Code (including the cost of acquisition of 
land for those facilities), the following amounts:
            (1) For the Department of the Army--
                    (A) for the Army National Guard of the United 
                States, $155,416,000; and
                    (B) for the Army Reserve, $87,640,000.
            (2) For the Department of the Navy, for the Naval and 
        Marine Corps Reserve, $21,213,000.
            (3) For the Department of the Air Force--
                    (A) for the Air National Guard of the United 
                States, $193,269,000; and
                    (B) for the Air Force Reserve, $34,580,000.

SEC. 2602. AUTHORIZATION OF ARMY NATIONAL GUARD CONSTRUCTION PROJECT, 
              AVIATION SUPPORT FACILITY, HILO, HAWAII, FOR WHICH FUNDS 
              HAVE BEEN APPROPRIATED.

    Section 2601(1)(A) of the Military Construction Authorization Act 
for Fiscal Year 1997 (division B of Public Law 104-201; 110 Stat. 2780) 
is amended by striking out ``$59,194,000'' and inserting in lieu 
thereof ``$65,094,000''.

        TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

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

    (a) Expiration of Authorizations after Three Years.--Except as 
provided in subsection (b), all authorizations contained in titles XXI 
through XXVI for military construction projects, land acquisition, 
family housing projects and facilities, and contributions to the North 
Atlantic Treaty Organization Security Investment program (and 
authorizations of appropriations therefor) shall expire on the later 
of--
            (1) October 1, 2000; or
            (2) the date for the enactment of an Act authorizing funds 
        for military construction for fiscal year 2001.
    (b) Exception.--Subsection (a) shall not apply to authorizations 
for military construction projects, land acquisition, family housing 
projects and facilities, and contributions to the North Atlantic Treaty 
Organization Security Investment program (and authorizations of 
appropriations therefor), for which appropriated funds have been 
obligated before the later of--
            (1) October 1, 2000; or
            (2) the date of the enactment of an Act authorizing funds 
        for fiscal year 2001 for military construction projects, land 
        acquisition, family housing projects and facilities, or 
        contributions to the North Atlantic Treaty Organization 
        Security Investment program.

SEC. 2702. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1995 
              PROJECTS.

    (a) Extensions.--Notwithstanding section 2701 of the Military 
Construction Authorization Act for Fiscal Year 1995 (division B of 
Public Law 103-337; 108 Stat. 3046), authorizations for the projects 
set forth in the tables in subsection (b), as provided in section 2101, 
2201, 2202, 2301, 2302, 2401, or 2601 of that Act, shall remain in 
effect until October 1, 1998, or the date of the enactment of an Act 
authorizing funds for military construction for fiscal year 1999, 
whichever is later.
    (b) Tables.--The tables referred to in subsection (a) are as 
follows:


                                  Army: Extension of 1995 Project Authorization                                 
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount    
----------------------------------------------------------------------------------------------------------------
California............................  Fort Irwin...............  National Training Center          $10,000,000
                                                                    Airfield Phase I.                           
----------------------------------------------------------------------------------------------------------------



                                 Navy: Extension of 1995 Project Authorizations                                 
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount    
----------------------------------------------------------------------------------------------------------------
Maryland..............................  Indian Head Naval Surface  Upgrade Power Plant..........      $4,000,000
                                         Warfare Center.                                                        
                                        Indian Head Naval Surface  Denitrification/Acid Mixing        $6,400,000
                                         Warfare Center.            Facility.                                   
Virginia..............................  Norfolk Marine Corps       Bachelor Enlisted Quarters...      $6,480,000
                                         Security Force Battalion                                               
                                         Atlantic.                                                              
Washington............................  Naval Station, Everett...  Housing Office...............        $780,000
CONUS Classified......................  Classified Location......  Aircraft Fire and Rescue and       $2,200,000
                                                                    Vehicle Maintenance                         
                                                                    Facilities.                                 
----------------------------------------------------------------------------------------------------------------



                               Air Force: Extension of 1995 Project Authorizations                              
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount    
----------------------------------------------------------------------------------------------------------------
California............................  Beale Air Force Base.....  Consolidated Support Center..     $10,400,000
                                        Los Angeles Air Force      Family Housing (50 units)....      $8,962,000
                                         Station.                                                               
North Carolina........................  Pope Air Force Base......  Combat Control Team Facility.      $2,450,000
                                        Pope Air Force Base......  Fire Training Facility.......      $1,100,000
----------------------------------------------------------------------------------------------------------------



                           Defense Agencies: Extension of 1995 Project Authorizations                           
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount    
----------------------------------------------------------------------------------------------------------------
Alabama...............................  Anniston Army Depot......  Carbon Filtration System.....      $5,000,000
Arkansas..............................  Pine Bluff Arsenal.......  Ammunition Demilitarization      $115,000,000
                                                                    Facility.                                   
California............................  Defense Contract           Administrative Building......      $5,100,000
                                         Management Area Office,                                                
                                         El Segundo.                                                            
Oregon................................  Umatilla Army Depot......  Ammunition Demilitarization      $186,000,000
                                                                    Facility.                                   
----------------------------------------------------------------------------------------------------------------



                          Army National Guard: Extension of 1995 Project Authorizations                         
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount    
----------------------------------------------------------------------------------------------------------------
California............................  Camp Roberts.............  Modify Record Fire/                $3,910,000
                                                                    Maintenance Shop.                           
                                        Camp Roberts.............  Combat Pistol Range..........        $952,000
Pennsylvania..........................  Fort Indiantown Gap......  Barracks.....................      $6,200,000
----------------------------------------------------------------------------------------------------------------



                             Naval Reserve: Extension of 1995 Project Authorization                             
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount    
----------------------------------------------------------------------------------------------------------------
Georgia...............................  Naval Air Station          Training Center..............      $2,650,000
                                         Marietta.                                                              
----------------------------------------------------------------------------------------------------------------

SEC. 2703. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1994 
              PROJECTS.

    (a) Extension.--Notwithstanding section 2701 of the Military 
Construction Authorization Act for Fiscal Year 1994 (division B of 
Public Law 103-160; 107 Stat. 1880), authorizations for the projects 
set forth in the table in subsection (b), as provided in section 2201 
of that Act and extended by section 2702(a) of the Military 
Construction Authorization Act for Fiscal Year 1997 (division B of 
Public Law 104-201; 110 Stat. 2783), shall remain in effect until 
October 1, 1998, or the date of the enactment of an Act authorizing 
funds for military construction for fiscal year 1999, whichever is 
later.
    (b) Table.--The table referred to in subsection (a) is as follows:


                                 Navy: Extension of 1994 Project Authorizations                                 
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount    
----------------------------------------------------------------------------------------------------------------
California............................  Camp Pendleton Marine      Sewage Facility..............      $7,930,000
                                         Corps Base.                                                            
Connecticut...........................  New London Naval           Hazardous Waste Transfer           $1,450,000
                                         Submarine Base.            Facility.                                   
----------------------------------------------------------------------------------------------------------------

SEC. 2704. EXTENSION OF AUTHORIZATION OF FISCAL YEAR 1993 PROJECT.

    (a) Extension.--Notwithstanding section 2701 of the Military 
Construction Authorization Act for Fiscal Year 1993 (division B of 
Public Law 102-484; 106 Stat. 2602), the authorization for the project 
set forth in the table in subsection (b), as provided in section 2101 
of that Act and extended by section 2702 of the Military Construction 
Authorization Act for Fiscal Year 1996 (division B of Public Law 104-
106; 110 Stat. 541) and section 2703 of the Military Construction 
Authorization Act for Fiscal Year 1997 (division B of Public Law 104-
201; 110 Stat. 2784), shall remain in effect until October 1, 1998, or 
the date of enactment of an Act authorizing funds for military 
construction for fiscal year 1999, whichever is later.
    (b) Table.--The table referred to in subsection (a) is as follows:


                                  Army: Extension of 1993 Project Authorization                                 
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount    
----------------------------------------------------------------------------------------------------------------
Arkansas..............................  Pine Bluff Arsenal.......  Ammunition Demilitarization       $15,000,000
                                                                    Support Facility.                           
----------------------------------------------------------------------------------------------------------------

SEC. 2705. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1992 
              PROJECTS.

    (a) Extensions.--Notwithstanding section 2701 of the Military 
Construction Authorization Act for Fiscal Year 1992 (division B of 
Public Law 102-190; 105 Stat. 1535), authorizations for the projects 
set forth in the table in subsection (b), as provided in section 2101 
of that Act and extended by section 2702 of the Military Construction 
Authorization Act for Fiscal Year 1995 (division B of Public Law 103-
337; 108 Stat. 3047), section 2703 of the Military Construction 
Authorization Act for Fiscal Year 1996 (division B of Public Law 104-
106; 110 Stat. 543), and section 2704 of the Military Construction 
Authorization Act for Fiscal Year 1997 (division B of Public Law 104-
201; 110 Stat. 2785), shall remain in effect until October 1, 1998, or 
the date of enactment of an Act authorizing funds for military 
construction for fiscal year 1999, whichever is later.
    (b) Table.--The table referred to in subsection (a) is as follows:


                                 Army: Extension of 1992 Project Authorizations                                 
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount    
----------------------------------------------------------------------------------------------------------------
Oregon................................  Umatilla Army Depot......  Ammunition Demilitarization        $3,600,000
                                                                    Support Facility.                           
                                        Umatilla Army Depot......  Ammunition Demilitarization        $7,500,000
                                                                    Utilities.                                  
----------------------------------------------------------------------------------------------------------------

SEC. 2706. EFFECTIVE DATE.

    Titles XXI, XXII, XXIII, XXIV, XXV, and XXVI shall take effect on 
the later of--
            (1) October 1, 1997; or
            (2) the date of the enactment of this Act.

                    TITLE XXVIII--GENERAL PROVISIONS

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

SEC. 2801. INCREASE IN CEILING FOR MINOR LAND ACQUISITION PROJECTS.

    (a) Increase.--Section 2672 of title 10, United States Code, is 
amended by striking out ``$200,000'' each place it appears in 
subsection (a) and inserting in lieu thereof ``$500,000''.
    (b) Conforming Amendments.--(1) The section heading for such 
section is amended by striking out ``$200,000'' and inserting in lieu 
thereof ``$500,000''.
    (2) The table of sections at the beginning of chapter 159 of such 
title is amended in the item relating to section 2672 by striking out 
``$200,000'' and inserting in lieu thereof ``$500,000''.

SEC. 2802. SALE OF UTILITY SYSTEMS OF THE MILITARY DEPARTMENTS.

    (a) In General.--Chapter 159 of title 10, United States Code, is 
amended by adding at the end the following:
``Sec. 2695. Sale of utility systems
    ``(a) Authority.--The Secretary of the military department 
concerned may convey all right, title, and interest of the United 
States, or any lesser estate thereof, in and to all or part of a 
utility system located on or adjacent to a military installation under 
the jurisdiction of the Secretary to a municipal utility, private 
utility, regional or district utility, or cooperative utility or other 
appropriate entity.
    ``(b) Selection of Purchaser.--If more than one utility or entity 
referred to in subsection (a) notifies the Secretary concerned of an 
interest in a conveyance under that subsection, the Secretary shall 
carry out the conveyance through the use of competitive procedures.
    ``(c) Consideration.--
            ``(1) In general.--The Secretary concerned shall accept as 
        consideration for a conveyance under subsection (a) an amount 
        equal to the fair market value (as determined by the Secretary) 
        of the right, title, or interest conveyed.
            ``(2) Form of consideration.--Consideration under this 
        subsection may take the form of--
                    ``(A) a lump sum payment; or
                    ``(B) a reduction in charges for utility services 
                provided the military installation concerned by the 
                utility or entity concerned.
            ``(3) Treatment of payments.--
                    ``(A) Crediting.--A lump sum payment received under 
                paragraph (2)(A) shall be credited, at the election of 
                the Secretary--
                            ``(i) to an appropriation of the military 
                        department concerned available for the 
                        procurement of the same utility services as are 
                        provided by the utility system conveyed under 
                        this section;
                            ``(ii) to an appropriation of the military 
                        department available for carrying out energy 
                        savings projects or water conservation 
                        projects; or
                            ``(iii) to an appropriation of the military 
                        department available for improvements to other 
                        utility systems on the installation concerned.
                    ``(B) Availability.--Amounts so credited shall be 
                merged with funds in the appropriation to which 
                credited and shall be available for the same purposes, 
                and subject to the same conditions and limitations, as 
                the appropriation with which merged.
    ``(d) Inapplicability of Certain Contracting Requirements.--
Sections 2461, 2467, and 2468 of this title shall not apply to the 
conveyance of a utility system under subsection (a).
    ``(e) Notice and Wait Requirement.--The Secretary concerned may not 
make a conveyance under subsection (a) until--
            ``(1) the Secretary submits to the Committees on Armed 
        Services and Appropriations of the Senate and the Committees on 
        National Security and Appropriations of the House of 
        Representatives an economic analysis (based upon accepted life-
        cycle costing procedures) demonstrating that--
                    ``(A) the long-term economic benefit of the 
                conveyance to the United States exceeds the long-term 
                economic cost of the conveyance to the United States; 
                and
                    ``(B) the conveyance will reduce the long-term 
                costs of the United States for utility services 
                provided by the utility system concerned; and
            ``(2) a period of 21 days has elapsed after the date on 
        which the economic analysis is received by the committees.
    ``(f) Additional Terms and Conditions.--The Secretary concerned may 
require such additional terms and conditions in connection with a 
conveyance under subsection (a) as such Secretary considers appropriate 
to protect the interests of the United States.
    ``(g) Utility System Defined.--For purposes of this section:
            ``(1) In general.--The term `utility system' means the 
        following:
                    ``(A) A system for the generation and supply of 
                electric power.
                    ``(B) A system for the treatment or supply of 
                water.
                    ``(C) A system for the collection or treatment of 
                wastewater.
                    ``(D) A system for the generation and supply of 
                steam, hot water, and chilled water.
                    ``(E) A system for the supply of natural gas.
            ``(2) Inclusions.--The term `utility system' includes the 
        following:
                    ``(A) Equipment, fixtures, structures, and other 
                improvements utilized in connection with a system 
                referred to in paragraph (1).
                    ``(B) Easements and rights-of-ways associated with 
                a system referred to in that paragraph.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2695. Sale of utility systems.''.

SEC. 2803. ADMINISTRATIVE EXPENSES FOR CERTAIN REAL PROPERTY 
              TRANSACTIONS.

    (a) In General.--(1) Chapter 159 of title 10, United States Code, 
as amended by section 2802 of this Act, is further amended by adding at 
the end the following:
``Sec. 2696. Administrative expenses relating to certain real property 
              transactions
    ``(a) Authority To Collect.--Upon entering into a transaction 
referred to in subsection (b) with a non-Federal person or entity, the 
Secretary of a military department may collect from the person or 
entity an amount equal to the administrative expenses incurred by the 
Secretary in entering into the transaction.
    ``(b) Covered Transactions.--Subsection (a) applies to the 
following transactions:
            ``(1) The exchange of real property.
            ``(2) The grant of an easement over, in, or upon real 
        property of the United States.
            ``(3) The lease or license of real property of the United 
        States.
    ``(c) Use of Amounts Collected.--Amounts collected under subsection 
(a) for administrative expenses shall be credited to the appropriation, 
fund, or account from which such expenses were paid. Amounts so 
credited shall be merged with funds in such appropriation, fund, or 
account and shall be available for the same purposes and subject to the 
same limitations as the funds with which merged.''.
    (2) The table of sections at the beginning of chapter 159 of such 
title, as so amended, is further amended by adding at the end the 
following:

``2696. Administrative expenses relating to certain real property 
                            transactions.''.
    (b) Conforming Amendment.--Section 2667(d)(4) of such title is 
amended by striking out ``to cover the administrative expenses of 
leasing for such purposes and''.

SEC. 2804. USE OF FINANCIAL INCENTIVES FOR ENERGY SAVINGS AND WATER 
              COST SAVINGS.

    (a) In General.--Section 2865(b) of title 10, United States Code, 
is amended--
            (1) in paragraph (1), by striking out ``and financial 
        incentives described in subsection (d)(2)'';
            (2) in paragraph (2)--
                    (A) by striking out ``section 2866(b)'' in the 
                matter preceding subparagraph (A) and inserting in lieu 
                thereof ``section 2866(b)(2)''; and
                    (B) by striking out ``section 2866(b)'' in 
                subparagraph (A) and inserting in lieu thereof 
                ``section 2866(b)(2)''; and
            (3) by adding at the end the following:
    ``(3)(A) Financial incentives received from gas or electric 
utilities under subsection (d)(2), and from utilities for water demand 
or conservation under section 2866(b)(1) of this title, shall be 
credited to an appropriation designated by the Secretary of Defense. 
Amounts so credited shall be merged with the appropriation to which 
credited and shall be available for the same purposes and the same 
period as the appropriation with which merged.
    ``(B) The Secretary shall include in the annual report under 
subsection (f) the amounts of financial incentives credited under this 
paragraph during the year of the report and the purposes for which such 
amounts were utilized in that year.''.
    (b) Conforming Amendment.--Section 2866(b) of such title is amended 
to read as follows:
    ``(b) Use of Financial Incentives and Water Cost Savings.--(1) 
Financial incentives received under subsection (a)(2) shall be used as 
provided in paragraph (3) of section 2865(b) of this title.
    ``(2) Water cost savings realized under subsection (a)(3) shall be 
used as provided in paragraph (2) of that section.''.

                      Subtitle B--Land Conveyances

SEC. 2811. MODIFICATION OF AUTHORITY FOR DISPOSAL OF CERTAIN REAL 
              PROPERTY, FORT BELVOIR, VIRGINIA.

    (a) Repeal of Authority To Convey.--Section 2821 of the Military 
Construction Authorization Act for Fiscal Years 1990 and 1991 (division 
B of Public Law 101-189; 103 Stat. 1658), as amended by section 2854 of 
the Military Construction Authorization Act for Fiscal Year 1996 
(division B of Public Law 104-106; 110 Stat. 568), is repealed.
    (b) Treatment as Surplus Property.--(1) Notwithstanding any other 
provision of law, the real property described in paragraph (2) shall be 
deemed to be surplus property for purposes of section 203 of the 
Federal Property and Administrative Services Act of 1949 (40 U.S.C. 
484).
    (2) Paragraph (1) applies to a parcel of real property, including 
improvements thereon, at Fort Belvoir, Virginia, consisting of 
approximately 820 acres and known as the Engineer Proving Ground.

SEC. 2812. CORRECTION OF LAND CONVEYANCE AUTHORITY, ARMY RESERVE 
              CENTER, ANDERSON, SOUTH CAROLINA.

    (a) Correction of Conveyee.--Subsection (a) of section 2824 of the 
Military Construction Authorization Act for Fiscal Year 1997 (division 
B of Public Law 104-201; 110 Stat. 2793) is amended by striking out 
``County of Anderson, South Carolina (in this section referred to as 
the `County')'' and inserting in lieu thereof ``Board of Education, 
Anderson County, South Carolina (in this section referred to as the 
`Board')''.
    (b) Conforming Amendments.--Subsections (b) and (c) of such section 
are each amended by striking out ``County'' and inserting in lieu 
thereof ``Board''.

SEC. 2813. LAND CONVEYANCE, HAWTHORNE ARMY AMMUNITION DEPOT, MINERAL 
              COUNTY, NEVADA.

    (a) Conveyance Authorized.--The Secretary of the Army may convey, 
without consideration, to Mineral County, Nevada (in this section 
referred to as the ``County''), all right, title, and interest of the 
United States in and to a parcel of excess real property, including 
improvements thereon, consisting of approximately 33.1 acres located at 
Hawthorne Army Ammunition Depot, Mineral County, Nevada, and commonly 
referred to as the Schweer Drive Housing Area.
    (b) Conditions of Conveyance.--The conveyance authorized by 
subsection (a) shall be subject to the following conditions:
            (1) That the County accept the conveyed property subject to 
        such easements and rights of way in favor of the United States 
        as the Secretary considers appropriate.
            (2) That the County, if the County sells any portion of the 
        property conveyed under subsection (a) before the end of the 
        10-year period beginning on the date of enactment of this Act, 
        pay to the United States an amount equal to the lesser of--
                    (A) the amount of sale of the property sold; or
                    (B) the fair market value of the property sold as 
                determined without taking into account any improvements 
                to such property by the County.
    (c) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a), 
and of any easement or right of way granted under subsection (b)(1), 
shall be determined by a survey satisfactory to the Secretary. The cost 
of the survey shall be borne by the County.
    (d) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a), and any easement or right of way granted under 
subsection (b)(1), as the Secretary considers appropriate to protect 
the interests of the United States.

SEC. 2814. LONG-TERM LEASE OF PROPERTY, NAPLES, ITALY.

    (a) Authority.--The Secretary of the Navy may acquire by long-term 
lease structures and real property relating to a regional hospital 
complex in Naples, Italy, that the Secretary determines to be necessary 
for purposes of the Naples Improvement Initiative.
    (b) Lease Term.--Notwithstanding section 2675 of title 10, United 
States Code, the lease authorized by subsection (a) shall be for a term 
of not more than 20 years.
    (c) Expiration of Authority.--The authority of the Secretary to 
enter into a lease under subsection (a) shall expire on September 30, 
2002.

SEC. 2815. LAND CONVEYANCE, TOPSHAM ANNEX, NAVAL AIR STATION, 
              BRUNSWICK, MAINE.

    (a) Conveyance Authorized.--The Secretary of the Navy may convey, 
without consideration, to the Maine School Administrative District No. 
75, Topsham, Maine (in this section referred to as the ``District''), 
all right, title, and interest of the United States in and to a parcel 
of real property, including improvements thereon, consisting of 
approximately 40 acres located at the Topsham Annex, Naval Air Station, 
Brunswick, Maine.
    (b) Condition of Conveyance.--The conveyance under subsection (a) 
shall be subject to the condition that the District use the property 
conveyed for educational purposes.
    (c) Reversion.--If the Secretary determines at any time that the 
real property conveyed pursuant to this section is not being used for 
the purpose specified in subsection (b), all right, title, and interest 
in and to the property, including any improvements thereon, shall 
revert to the United States, and the United States shall have the right 
of immediate entry thereon.
    (d) Interim Lease.--(1) Until such time as the real property 
described in subsection (a) is conveyed by deed, the Secretary may 
lease the property, together with the improvements thereon, to the 
District.
    (2) As consideration for the lease under this subsection, the 
District shall provide such security services for the property covered 
by the lease, and carry out such maintenance work with respect to the 
property, as the Secretary shall specify in the lease.
    (e) Description of Property.--The exact acreage and legal 
description of the property conveyed under subsection (a) shall be 
determined by a survey satisfactory to the Secretary. The District 
shall bear the cost of the survey.
    (f) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a), and the lease, if any, under subsection (d), as 
the Secretary considers appropriate to protect the interests of the 
United States.

SEC. 2816. LAND CONVEYANCE, NAVAL WEAPONS INDUSTRIAL RESERVE PLANT NO. 
              464, OYSTER BAY, NEW YORK.

    (a) Conveyance Authorized.--(1) The Secretary of the Navy may 
convey, without consideration, to the County of Nassau, New York (in 
this section referred to as the ``County''), all right, title, and 
interest of the United States in and to parcels of real property 
consisting of approximately 110 acres and comprising the Naval Weapons 
Industrial Reserve Plant No. 464, Oyster Bay, New York.
    (2)(A) As part of the conveyance authorized in paragraph (1), the 
Secretary may convey to the County such improvements, equipment, 
fixtures, and other personal property (including special tooling 
equipment and special test equipment) located on the parcels as the 
Secretary determines to be not required by the Navy for other purposes.
    (B) The Secretary may permit the County to review and inspect the 
improvements, equipment, fixtures, and other personal property located 
on the parcels for purposes of the conveyance authorized by this 
paragraph.
    (b) Condition of Conveyance.--The conveyance of the parcels 
authorized in subsection (a) shall be subject to the condition that the 
County--
            (1) use the parcels, directly or through an agreement with 
        a public or private entity, for economic redevelopment purposes 
        or such other public purposes as the County determines 
        appropriate; or
            (2) convey the parcels to an appropriate public or private 
        entity for use for such purposes.
    (c) Reversionary Interest.--If during the 5-year period beginning 
on the date the Secretary makes the conveyance authorized under 
subsection (a) the Secretary determines that the conveyed real property 
is not being used for a purpose specified in subsection (b), all right, 
title, and interest in and to the property, including any improvements 
thereon, shall revert to the United States and the United States shall 
have the right of immediate entry onto the property. Any determination 
of the Secretary under this subsection shall be made on the record 
after an opportunity for a hearing.
    (d) Interim Lease.--(1) Until such time as the real property 
described in subsection (a) is conveyed by deed, the Secretary may 
lease the property, together with improvements thereon, to the County.
    (2) As consideration for the lease under this subsection, the 
County shall provide such security services and fire protection 
services for the property covered by the lease, and carry out such 
maintenance work with respect to the property, as the Secretary shall 
specify in the lease.
    (e) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary. The cost 
of the survey shall be borne by the County.
    (f) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a), and the lease, if any, under subsection (d), as 
the Secretary considers appropriate to protect the interests of the 
United States.

SEC. 2817. LAND CONVEYANCE, CHARLESTON FAMILY HOUSING COMPLEX, BANGOR, 
              MAINE.

    (a) Conveyance Authorized.--The Secretary of the Air Force may 
convey, without consideration, to the City of Bangor, Maine (in this 
section referred to as the ``City''), all right, title, and interest of 
the United States in and to a parcel of real property consisting of 
approximately 19.8 acres, including improvements thereon, located in 
Bangor, Maine, and known as the Charleston Family Housing Complex.
    (b) Purpose of Conveyance.--The purpose of the conveyance under 
subsection (a) is to facilitate the reuse of the real property, 
currently unoccupied, which the City proposes to use to provide housing 
opportunities for first-time home buyers.
    (c) Condition of Conveyance.--The conveyance authorized by 
subsection (a) shall be subject to the condition that the City, if the 
City sells any portion of the property conveyed under subsection (a) 
before the end of the 10-year period beginning on the date of enactment 
of this Act, pay to the United States an amount equal to the lesser 
of--
            (1) the amount of sale of the property sold; or
            (2) the fair market value of the property sold as 
        determined without taking into account any improvements to such 
        property by the City.
    (d) Description of Property.--The exact acreage and legal 
description of the real property conveyed under subsection (a) shall be 
determined by a survey satisfactory to the Secretary. The cost of the 
survey shall be borne by the City.
    (e) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) as the Secretary considers appropriate to protect 
the interests of the United States.

SEC. 2818. LAND CONVEYANCE, ELLSWORTH AIR FORCE BASE, SOUTH DAKOTA.

    (a) Conveyance Authorized.--The Secretary of the Air Force may 
convey, without consideration, to the Greater Box Elder Area Economic 
Development Corporation, Box Elder, South Dakota (in this section 
referred to as the ``Corporation''), all right, title, and interest of 
the United States in and to the parcels of real property located at 
Ellsworth Air Force Base, South Dakota, referred to in subsection (b).
    (b) Covered Property.--(1) Subject to paragraph (2), the real 
property referred to in subsection (a) is the following:
            (A) A parcel of real property, together with any 
        improvements thereon, consisting of approximately 53.32 acres 
        and comprising the Skyway Military Family Housing Area.
            (B) A parcel of real property, together with any 
        improvements thereon, consisting of approximately 137.56 acres 
        and comprising the Renal Heights Military Family Housing Area.
            (C) A parcel of real property, together with any 
        improvements thereon, consisting of approximately 14.92 acres 
        and comprising the East Nike Military Family Housing Area.
            (D) A parcel of real property, together with any 
        improvements thereon, consisting of approximately 14.69 acres 
        and comprising the South Nike Military Family Housing Area.
            (E) A parcel of real property, together with any 
        improvements thereon, consisting of approximately 14.85 acres 
        and comprising the West Nike Military Family Housing Area.
    (2) The real property referred to in subsection (a) does not 
include the portion of the real property referred to in paragraph 
(1)(B) that the Secretary determines to be required for the 
construction of an access road between the main gate of Ellsworth Air 
Force Base and an interchange on Interstate Route 90 located in the 
vicinity of mile marker 67 in South Dakota.
    (c) Conditions of Conveyance.--The conveyance of the real property 
referred to in subsection (b) shall be subject to the following 
conditions:
            (1) That the Corporation, and any person or entity to which 
        the Corporation transfers the property, comply in the use of 
        the property with the applicable provisions of the Ellsworth 
        Air Force Base Air Installation Compatible Use Zone Study.
            (2) That the Corporation convey a portion of the real 
        property referred to in paragraph (1)(A) of that subsection, 
        together with any improvements thereon, consisting of 
        approximately 20 acres to the Douglas School District, South 
        Dakota, for use for education purposes.
    (d) Reversionary Interest.--If the Secretary determines that any 
portion of the real property conveyed under subsection (a) is not being 
utilized in accordance with the applicable provision of subsection (c), 
all right, title, and interest in and to that portion of the real 
property shall revert to the United States, and the United States shall 
have the right of immediate entry thereon.
    (e) Legal Description.--The exact acreage and legal description of 
the property conveyed under subsection (a) shall be determined by a 
survey satisfactory to the Secretary. The cost of the survey shall be 
borne by the Corporation.
    (f) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) as the Secretary considers appropriate to protect 
the interests of the United States.

                       Subtitle C--Other Matters

SEC. 2831. DISPOSITION OF PROCEEDS OF SALE OF AIR FORCE PLANT NO. 78, 
              BRIGHAM CITY, UTAH.

    Notwithstanding the provisions of section 204(h)(2)(A) of the 
Federal Property and Administrative Services Act of 1949 (40 U.S.C. 
485(h)(2)(A)), the entire amount deposited by the Administrator of 
General Services in the account in the Treasury under section 204 of 
that Act as a result of the sale of Air Force Plant No. 78, Brigham 
City, Utah, shall be available to the Secretary of the Air Force for 
maintenance and repair of facilities, or environmental restoration, at 
other industrial plants of the Air Force.

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

      TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

         Subtitle A--National Security Programs Authorizations

SEC. 3101. WEAPONS ACTIVITIES.

    (a) Stockpile Stewardship.--Funds are hereby authorized to be 
appropriated to the Department of Energy for fiscal year 1998 for 
stockpile stewardship in carrying out weapons activities necessary for 
national security programs in the amount of $1,726,900,000, to be 
allocated as follows:
            (1) For core stockpile stewardship, $1,243,100,000, to be 
        allocated as follows:
                    (A) For operation and maintenance, $1,144,290,000.
                    (B) For the accelerated strategic computing 
                initiative, $190,800,000.
                    (C) For plant projects (including maintenance, 
                restoration, planning, construction, acquisition, 
                modification of facilities, and the continuation of 
                projects authorized in prior years, and land 
                acquisition related thereto), $98,810,000, to be 
                allocated as follows:
                            Project 97-D-102, Dual-Axis Radiographic 
                        Hydrodynamic facility, Los Alamos National 
                        Laboratory, Los Alamos, New Mexico, 
                        $46,300,000.
                            Project 96-D-102, stockpile stewardship 
                        facilities revitalization, Phase VI, various 
                        locations, $19,810,000.
                            Project 96-D-103, ATLAS, Los Alamos 
                        National Laboratory, Los Alamos, New Mexico, 
                        $13,400,000.
                            Project 96-D-105, Contained Firing Facility 
                        addition, Lawrence Livermore National 
                        Laboratory, Livermore, California, $19,300,000.
            (2) For inertial confinement fusion, $414,800,000, to be 
        allocated as follows:
                    (A) For operation and maintenance, $217,000,000.
                    (B) For the following plant project (including 
                maintenance, restoration, planning, construction, 
                acquisition, modification of facilities, and land 
                acquisition related thereto):
                            Project 96-D-111, National Ignition 
                        Facility, Lawrence Livermore National 
                        Laboratory, Livermore, California, 
                        $197,800,000.
            (3) For technology transfer and education, $69,000,000.
    (b) Stockpile Management.--Funds are hereby authorized to be 
appropriated to the Department of Energy for fiscal year 1998 for 
stockpile management in carrying out weapons activities necessary for 
national security programs in the amount of $2,033,050,000, to be 
allocated as follows:
            (1) For operation and maintenance, $1,861,465,000.
            (2) For plant projects (including maintenance, restoration, 
        planning, construction, acquisition, modification of 
        facilities, and the continuation of projects authorized in 
        prior years, and land acquisition related thereto), 
        $171,585,000, to be allocated as follows:
                    Project 98-D-123, stockpile management 
                restructuring initiative, tritium facility 
                modernization and consolidation, Savannah River Site, 
                Aiken, South Carolina, $11,000,000.
                    Project 98-D-124, stockpile management 
                restructuring initiative, Y-12 consolidation, Oak 
                Ridge, Tennessee, $6,450,000.
                    Project 98-D-125, Tritium Extraction Facility, 
                Savannah River Site, Aiken, South Carolina, $9,650,000.
                    Project 98-D-126, accelerator production of 
                tritium, various locations, $67,865,000.
                    Project 97-D-122, nuclear materials storage 
                facility renovation, Los Alamos National Laboratory, 
                Los Alamos, New Mexico, $9,200,000.
                    Project 97-D-124, steam plant wastewater treatment 
                facility upgrade, Y-12 Plant, Oak Ridge, Tennessee, 
                $1,900,000.
                    Project 96-D-122, sewage treatment quality upgrade, 
                Pantex Plant, Amarillo, Texas, $6,900,000.
                    Project 96-D-123, retrofit heating, ventilation, 
                and air conditioning and chillers for ozone protection, 
                Y-12 Plant, Oak Ridge, Tennessee, $2,700,000.
                    Project 95-D-102, Chemical and Metallurgy Research 
                Building upgrades project, Los Alamos National 
Laboratory, Los Alamos, New Mexico, $15,700,000.
                    Project 95-D-122, sanitary sewer upgrade, Y-12 
                Plant, Oak Ridge, Tennessee, $12,600,000.
                    Project 94-D-124, hydrogen fluoride supply system, 
                Y-12 Plant, Oak Ridge, Tennessee, $1,400,000.
                    Project 94-D-125, upgrade life safety, Kansas City 
                Plant, Kansas City, Missouri, $2,000,000.
                    Project 93-D-122, life safety upgrades, Y-12 Plant, 
                Oak Ridge, Tennessee, $2,100,000.
                    Project 92-D-126, replace emergency notification 
                systems, various locations, $3,200,000.
                    Project 88-D-122, facilities capability assurance 
                program, various locations, $18,920,000.
    (c) Program Direction.--Funds are hereby authorized to be 
appropriated to the Department of Energy for fiscal year 1998 for 
program direction in carrying out weapons activities necessary for 
national security programs in the amount of $268,500,000.

SEC. 3102. ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT.

    (a) Environmental Restoration.--Funds are hereby authorized to be 
appropriated to the Department of Energy for fiscal year 1998 for 
environmental restoration in carrying out environmental restoration and 
waste management activities necessary for national security programs in 
the amount of $1,748,073,000.
    (b) Waste Management.--Funds are hereby authorized to be 
appropriated to the Department of Energy for fiscal year 1998 for waste 
management in carrying out environmental restoration and waste 
management activities necessary for national security programs in the 
amount of $1,559,644,000, to be allocated as follows:
            (1) For operation and maintenance, $1,478,876,000.
            (2) For plant projects (including maintenance, restoration, 
        planning, construction, acquisition, modification of 
        facilities, and the continuation of projects authorized in 
        prior years, and land acquisition related thereto), 
        $80,768,000, to be allocated as follows:
                    Project 98-D-401, H-tank farm storm water systems 
                upgrade, Savannah River Site, Aiken, South Carolina, 
                $1,000,000.
                    Project 97-D-402, tank farm restoration and safe 
                operations, Richland, Washington, $13,961,000.
                    Project 96-D-408, waste management upgrades, 
                various locations, $8,200,000.
                    Project 95-D-402, install permanent electrical 
                service, Waste Isolation Pilot Plant, Carlsbad, New 
                Mexico, $176,000.
                    Project 95-D-405, industrial landfill V and 
                construction/demolition landfill VII, Y-12 Plant, Oak 
                Ridge, Tennessee, $3,800,000.
                    Project 95-D-407, 219-S secondary containment 
                upgrade, Richland, Washington, $2,500,000.
                    Project 94-D-404, Melton Valley storage tank 
                capacity increase, Oak Ridge National Laboratory, Oak 
                Ridge, Tennessee, $1,219,000.
                    Project 94-D-407, initial tank retrieval systems, 
                Richland, Washington, $15,100,000.
                    Project 93-D-187, high-level waste removal from 
                filled waste tanks, Savannah River Site, Aiken, South 
                Carolina, $17,520,000.
                    Project 92-D-172, hazardous waste treatment and 
                processing facility, Pantex Plant, Amarillo, Texas, 
                $5,000,000.
                    Project 89-D-174, replacement high-level waste 
                evaporator, Savannah River Site, Aiken, South Carolina, 
                $1,042,000.
                    Project 86-D-103, decontamination and waste 
                treatment facility, Lawrence Livermore National 
                Laboratory, Livermore, California, $11,250,000.
    (c) Technology Development.--Funds are hereby authorized to be 
appropriated to the Department of Energy for fiscal year 1998 for 
technology development in carrying out environmental restoration and 
waste management activities necessary for national security programs in 
the amount of $252,881,000.
    (d) Nuclear Material and Facility Stabilization.--Funds are hereby 
authorized to be appropriated to the Department of Energy for fiscal 
year 1998 for nuclear material and facility stabilization in carrying 
out environmental restoration and waste management activities necessary 
for national security programs in the amount of $1,265,481,000, to be 
allocated as follows:
            (1) For operation and maintenance, $1,181,114,000.
            (2) For plant projects (including maintenance, restoration, 
        planning, construction, acquisition, modification of 
        facilities, and the continuation of projects authorized in 
prior years, and land acquisition related thereto), $84,367,000, to be 
allocated as follows:
                    Project 98-D-453, plutonium stabilization and 
                handling system for plutonium finishing plant, 
                Richland, Washington, $8,136,000.
                    Project 98-D-700, road rehabilitation, Idaho 
                National Engineering and Environmental Laboratory, 
                Idaho, $500,000.
                    Project 97-D-450, actinide packaging and storage 
                facility, Savannah River Site, Aiken, South Carolina, 
                $18,000,000.
                    Project 97-D-451, B-Plant safety class ventilation 
                upgrades, Richland, Washington, $2,000,000.
                    Project 97-D-470, environmental monitoring 
                laboratory, Savannah River Site, Aiken, South Carolina, 
                $5,600,000.
                    Project 97-D-473, health physics site support 
                facility, Savannah River Site, Aiken, South Carolina, 
                $4,200,000.
                    Project 96-D-406, spent nuclear fuels canister 
                storage and stabilization facility, Richland, 
                Washington, $16,744,000.
                    Project 96-D-461, electrical distribution upgrade, 
                Idaho National Engineering and Environmental 
                Laboratory, Idaho, $2,927,000.
                    Project 96-D-464, electrical and utility systems 
                upgrade, Idaho Chemical Processing Plant, Idaho 
                National Engineering and Environmental Laboratory, 
                Idaho, $14,985,000.
                    Project 96-D-471, chlorofluorocarbon heating, 
                ventilation, and air conditioning and chiller retrofit, 
                Savannah River Site, Aiken, South Carolina, $8,500,000.
                    Project 95-D-155, upgrade site road infrastructure, 
                Savannah River Site, Aiken, South Carolina, $2,173,000.
                    Project 95-D-456, security facilities 
                consolidation, Idaho Chemical Processing Plant, Idaho 
                National Engineering and Environmental Laboratory, 
                Idaho, $602,000.
    (e) Policy and Management.--Funds are hereby authorized to be 
appropriated to the Department of Energy for fiscal year 1998 for 
policy and management in carrying out environmental restoration and 
waste management activities necessary for national security programs in 
the amount of $18,104,000.
    (f) Environmental Management Science Program.--Funds are hereby 
authorized to be appropriated to the Department of Energy for fiscal 
year 1998 for environmental science and risk policy in carrying out 
environmental restoration and waste management activities necessary for 
national security programs in the amount of $40,000,000.
    (g) Program Direction.--Funds are hereby authorized to be 
appropriated to the Department of Energy for fiscal year 1998 for 
program direction in carrying out environmental restoration and waste 
management activities necessary for national security programs in the 
amount of $373,251,000.

SEC. 3103. OTHER DEFENSE ACTIVITIES.

    Funds are hereby authorized to be appropriated to the Department of 
Energy for fiscal year 1998 for other defense activities in carrying 
out programs necessary for national security in the amount of 
$1,582,981,000, to be allocated as follows:
            (1) For verification and control technology, $458,200,000, 
        to be allocated as follows:
                    (A) For nonproliferation and verification research 
                and development, $210,000,000.
                    (B) For arms control, $214,600,000.
                    (C) For intelligence, $33,600,000.
            (2) For nuclear safeguards and security, $47,200,000.
            (3) For security investigations, $20,000,000.
            (4) For emergency management, $27,700,000.
            (5) For program direction, nonproliferation, and national 
        security, $84,900,000.
            (6) For environment, safety and health, defense, 
        $54,000,000.
            (7) For worker and community transition assistance:
                    (A) For assistance, $65,800,000.
                    (B) For program direction, $4,700,000.
            (8) For fissile materials disposition:
                    (A) For operation and maintenance, $99,451,000.
                    (B) For program direction, $4,345,000.
            (9) For naval reactors development, $683,000,000, to be 
        allocated as follows:
                    (A) For program direction, $20,080,000.
                    (B) For plant projects (including maintenance, 
                restoration, planning, construction, acquisition, 
                modification of facilities, and the continuation of 
                projects authorized in prior years, and land 
                acquisition related thereto), $14,000,000, to be 
                allocated as follows:
                            Project 98-D-200, site laboratory/facility 
                        upgrade, various locations, $5,700,000.
                            Project 97-D-201, advanced test reactor 
                        secondary coolant system refurbishment, Idaho 
                        National Engineering and Environmental 
                        Laboratory, Idaho, $4,100,000.
                            Project 95-D-200, laboratory systems and 
                        hot cell upgrades, various locations, 
                        $1,100,000.
                            Project 90-N-102, expended core facility 
                        dry cell project, Naval Reactors Facility, 
                        Idaho, $3,100,000.
            (10) For the Chernobyl shutdown initiative, $2,000,000.
            (11) For nuclear technology research and development, 
        $25,000,000.
            (12) For nuclear security, $4,000,000.
            (13) For the Office of Hearings and Appeals, $2,685,000.

SEC. 3104. DEFENSE ENVIRONMENTAL MANAGEMENT PRIVATIZATION.

    Funds are hereby authorized to be appropriated to the Department of 
Energy for fiscal year 1998 to carry out environmental management 
privatization projects in connection with national security programs in 
the amount of $215,000,000, to be allocated as follows:
            Project 98-PVT-1, contact handled transuranic waste 
        transportation, Carlsbad, New Mexico, $29,000,000.
            Project 98-PVT-4, spent nuclear fuel dry storage, Idaho 
        Falls, Idaho, $27,000,000.
            Project 98-PVT-7, waste pits remedial action, Fernald, 
        Ohio, $25,000,000.
            Project 98-PVT-11, spent nuclear fuel transfer and storage, 
        Savannah River, South Carolina, $25,000,000.
            Project 97-PVT-1, tank waste remediation system phase 1, 
        Hanford, Washington, $109,000,000.

SEC. 3105. DEFENSE NUCLEAR WASTE DISPOSAL.

    Funds are hereby authorized to be appropriated to the Department of 
Energy for fiscal year 1998 for payment to the Nuclear Waste Fund 
established in section 302(c) of the Nuclear Waste Policy Act of 1982 
(42 U.S.C. 10222(c)) in the amount of $190,000,000.

                Subtitle B--Recurring General Provisions

SEC. 3121. REPROGRAMMING.

    (a) In General.--Until the Secretary of Energy submits to the 
congressional defense committees the report referred to in subsection 
(b) and a period of 30 days has elapsed after the date on which such 
committees receive the report, the Secretary may not use amounts 
appropriated pursuant to this title for any program--
            (1) in amounts that exceed, in a fiscal year--
                    (A) 110 percent of the amount authorized for that 
                program by this title; or
                    (B) $1,000,000 more than the amount authorized for 
                that program by this title; or
            (2) which has not been presented to, or requested of, 
        Congress.
    (b) Report.--(1) The report referred to in subsection (a) is a 
report containing a full and complete statement of the action proposed 
to be taken and the facts and circumstances relied upon in support of 
such proposed action.
    (2) In the computation of the 30-day period under subsection (a), 
there shall be excluded any day on which either House of Congress is 
not in session because of an adjournment of more than 3 days to a day 
certain.
    (c) Limitations.--(1) In no event may the total amount of funds 
obligated pursuant to this title exceed the total amount authorized to 
be appropriated by this title.
    (2) Funds appropriated pursuant to this title may not be used for 
an item for which Congress has specifically denied funds.

SEC. 3122. LIMITS ON GENERAL PLANT PROJECTS.

    (a) In General.--The Secretary of Energy may carry out any 
construction project under the general plant projects authorized by 
this title if the total estimated cost of the construction project does 
not exceed $2,000,000.
    (b) Report to Congress.--If, at any time during the construction of 
any general plant project authorized by this title, the estimated cost 
of the project is revised because of unforeseen cost variations and the 
revised cost of the project exceeds $2,000,000, the Secretary shall 
immediately furnish a complete report to the congressional defense 
committees explaining the reasons for the cost variation.

SEC. 3123. LIMITS ON CONSTRUCTION PROJECTS.

    (a) In General.--(1) Except as provided in paragraph (2), 
construction on a construction project may not be started or additional 
obligations incurred in connection with the project above the total 
estimated cost, whenever the current estimated cost of the construction 
project, which is authorized by sections 3101, 3102, or 3103, or which 
is in support of national security programs of the Department of Energy 
and was authorized by any previous Act, exceeds by more than 25 percent 
the higher of--
            (A) the amount authorized for the project; or
            (B) the amount of the total estimated cost for the project 
        as shown in the most recent budget justification data submitted 
        to Congress.
    (2) An action described in paragraph (1) may be taken if--
            (A) the Secretary of Energy has submitted to the 
        congressional defense committees a report on the actions and 
        the circumstances making such action necessary; and
            (B) a period of 30 days has elapsed after the date on which 
        the report is received by the committees.
    (3) In the computation of the 30-day period under paragraph (2), 
there shall be excluded any day on which either House of Congress is 
not in session because of an adjournment of more than 3 days to a day 
certain.
    (b) Exception.--Subsection (a) shall not apply to any construction 
project which has a current estimated cost of less than $5,000,000.

SEC. 3124. FUND TRANSFER AUTHORITY.

    (a) Transfer to Other Federal Agencies.--The Secretary of Energy 
may transfer funds authorized to be appropriated to the Department of 
Energy pursuant to this title to other Federal agencies for the 
performance of work for which the funds were authorized. Funds so 
transferred may be merged with and be available for the same purposes 
and for the same time period as the authorizations of the Federal 
agency to which the amounts are transferred.
    (b) Transfer Within Department of Energy; Limitations.--(1) Subject 
to paragraph (2), the Secretary of Energy may transfer funds authorized 
to be appropriated to the Department of Energy pursuant to this title 
between any such authorizations. Amounts of authorizations so 
transferred may be merged with and be available for the same purposes 
and for the same time period as the authorization to which the amounts 
are transferred.
    (2) Not more than five percent of any such authorization may be 
transferred between authorizations under paragraph (1). No such 
authorization may be increased or decreased by more than five percent 
by a transfer under such paragraph.
    (3) The authority provided by this subsection to transfer 
authorizations may only be used to provide funds for items relating to 
activities necessary for national security programs that have a higher 
priority than the items from which the funds are transferred.
    (c) Notice to Congress.--The Secretary of Energy shall promptly 
notify the Committee on Armed Services of the Senate and the Committee 
on National Security of the House of Representatives of any transfer of 
funds to or from authorizations under this title.

SEC. 3125. AUTHORITY FOR CONCEPTUAL AND CONSTRUCTION DESIGN.

    (a) Requirement of Conceptual Design.--(1) Subject to paragraph (2) 
and except as provided in paragraph (3), before submitting to Congress 
a request for funds for a construction project that is in support of a 
national security program of the Department of Energy, the Secretary of 
Energy shall complete a conceptual design report for that project.
    (2) If the estimated cost of completing a conceptual design for a 
construction project exceeds $3,000,000, the Secretary shall submit to 
Congress a request for funds for the conceptual design before 
submitting a request for funds for the construction project.
    (3) The requirement in paragraph (1) does not apply to a request 
for funds--
            (A) for a construction project the total estimated cost of 
        which is less than $2,000,000; or
            (B) for emergency planning, design, and construction 
        activities under section 3126.
    (b) Authority for Construction Design.--(1) Within the amounts 
authorized by the title, the Secretary of Energy may carry out 
construction design (including architectural and engineering services) 
in connection with any proposed construction project if the total 
estimated cost for such design does not exceed $600,000.
    (2) If the total estimated cost for construction design in 
connection with any construction project exceeds $600,000, funds for 
such design must be specifically authorized by law.

SEC. 3126. AUTHORITY FOR EMERGENCY PLANNING, DESIGN, AND CONSTRUCTION 
              ACTIVITIES.

    (a) Authority.--The Secretary of Energy may use any funds available 
to the Department of Energy, pursuant to an authorization in this 
title, including those funds authorized to be appropriated for advance 
planning and construction design under sections 3101, 3102, or 3103, to 
perform planning, design, and construction activities for any 
Department of Energy national security program construction project 
that, as determined by the Secretary, must proceed expeditiously in 
order to protect public health and safety, to meet the needs of 
national defense, or to protect property.
    (b) Limitation.--The Secretary may not exercise the authority under 
subsection (a) in the case of any construction project until the 
Secretary has submitted to the congressional defense committees a 
report on the activities that the Secretary intends to carry out under 
this section and the circumstances making such activities necessary.
    (c) Specific Authority.--The requirement of section 3125(b)(2) does 
not apply to emergency planning, design, and construction activities 
conducted under this section.

SEC. 3127. FUNDS AVAILABLE FOR ALL NATIONAL SECURITY PROGRAMS OF THE 
              DEPARTMENT OF ENERGY.

    Subject to the provisions of appropriation Acts and section 3121, 
amounts appropriated pursuant to this title for management and support 
activities and for general plant projects are available for use, when 
necessary, in connection with all national security programs of the 
Department of Energy.

SEC. 3128. AVAILABILITY OF FUNDS.

    When so specified in an appropriation Act, amounts appropriated for 
operation and maintenance or for plant projects may remain available 
until expended.

   Subtitle C--Program Authorizations, Restrictions, and Limitations

SEC. 3131. DEFENSE ENVIRONMENTAL MANAGEMENT PRIVATIZATION PROJECTS.

    (a) Limitation on Contracts.--Funds authorized to be appropriated 
by section 3104 for a project referred to in that section are available 
for a contract under the project only if the contract--
            (1) is awarded on a competitive basis;
            (2) requires the contractor to construct or acquire any 
        equipment or facilities required to carry out the contract 
        before the commencement of the provision of goods or services 
        under the contract;
            (3) requires the contractor to bear any of the costs of the 
        design, construction, acquisition, and operation of such 
        equipment or facilities that arise before the commencement of 
        the provision of goods or services under the contract; and
            (4) provides for payment to the contractor under the 
        contract only upon the meeting of performance objectives 
        specified in the contract.
    (b) Notice and Wait.--The Secretary of Energy may not enter into a 
contract or option to enter into a contract, or otherwise incur any 
contractual obligation, under a project authorized by section 3104 
until 30 days after the date which the Secretary submits to the 
congressional defense committees a report with respect to the contract. 
The report shall set forth--
            (1) the anticipated costs and fees of the Department under 
        the contract, including the anticipated maximum amount of such 
        costs and fees;
            (2) any performance objectives specified in the contract;
            (3) the anticipated dates of commencement and completion of 
        the provision of goods or services under the contract;
            (4) the allocation between the Department and the 
        contractor of any financial, regulatory, or environmental 
        obligations under the contract;
            (5) any activities planned or anticipated to be required 
        with respect to the project after completion of the contract;
            (6) the site services or other support to be provided the 
        contractor by the Department under the contract;
            (7) the goods or services to be provided by the Department 
        or contractor under the contract, including any additional 
        obligations to be borne by the Department or contractor with 
        respect to such goods or services;
            (8) the schedule for the contract;
            (9) the costs the Department would otherwise have incurred 
        in obtaining the goods or services covered by the contract if 
        the Department had not proposed to obtain the goods or services 
        under this section;
            (10) an estimate and justification of the cost savings, if 
        any, to be realized through the contract, including the 
        assumptions underlying the estimate;
            (11) the effect of the contract on any ancillary schedules 
        applicable to the facility concerned, including milestones in 
        site compliance agreements; and
            (12) the plans for maintaining financial and programmatic 
        accountability for activities under the contract.
    (c) Cost Variations.--(1) The Secretary may not enter into a 
contract under a project referred to in paragraph (2), or incur 
additional obligations attributable to the capital portion of the cost 
of such a contract, whenever the current estimated cost of the project 
exceeds the amount of the estimated cost of the project as shown in the 
most recent budget justification data submitted to Congress.
    (2) Paragraph (1) applies to an environmental management 
privatization project that is--
            (A) authorized by section 3104; or
            (B) carried out under section 3103 of the National Defense 
        Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110 
        Stat. 2824).
    (d) Use of Funds for Termination of Contract.--Not less than 15 
days before the Secretary obligates funds available for a project 
authorized by section 3104 to terminate the contract or contracts under 
the project, the Secretary shall notify the congressional defense 
committees of the Secretary's intent to obligate the funds for that 
purpose.
    (e) Annual Report on Contracts.--Not later than February 28 of each 
year, the Secretary shall submit to the congressional defense 
committees a report on the activities, if any, carried out under each 
contract under a project authorized by section 3104 during the 
preceding year. The report shall include an update with respect to each 
such contract of the matters specified under subsection (b)(1) as of 
the date of the report.
    (f) Report on Contracting Without Sufficient Appropriations.--Not 
later than 90 days after the date of enactment of this Act, the 
Secretary shall submit to the congressional defense committees a report 
assessing whether, and under what circumstances, the Secretary could 
enter into contracts under defense environmental management 
privatization projects in the absence of sufficient appropriations to 
meet obligations under such contracts without thereby violating the 
provisions of section 1341 of title 31, United States Code.

SEC. 3132. INTERNATIONAL COOPERATIVE STOCKPILE STEWARDSHIP PROGRAMS.

    (a) Funding Prohibition.--No funds authorized to be appropriated or 
otherwise available to the Department of Energy for fiscal year 1998 
may be obligated or expended to conduct any activities associated with 
international cooperative stockpile stewardship.
    (b) Exceptions.--Subsection (a) does not apply to the following:
            (1) Activities conducted between the United States and the 
        United Kingdom.
            (2) Activities conducted between the United States and 
        France.
            (3) Activities carried out under title III of this Act 
        relating to cooperative threat reduction with states of the 
        former Soviet Union.

SEC. 3133. MODERNIZATION OF ENDURING NUCLEAR WEAPONS COMPLEX.

    (a) Funding.--Subject to subsection (b), of the funds authorized to 
be appropriated to the Department of Energy pursuant to section 3101, 
$15,000,000 shall be available for carrying out the program described 
in section 3137(a) of the National Defense Authorization Act for Fiscal 
Year 1996 (42 U.S.C. 2121 note).
    (b) Limitation on Availability.--None of the funds available under 
subsection (a) for carrying out the program referred to in that 
subsection may be obligated or expended until 30 days after the date of 
the receipt by Congress of the report required under subsection (c).
    (c) Report on Allocation of Funds.--Not later than 30 days after 
the date of enactment of this Act, the Secretary of Energy shall submit 
to the congressional defense committees a report setting forth the 
proposed allocation among specific Department of Energy sites of the 
funds available under subsection (a).

SEC. 3134. TRITIUM PRODUCTION.

    (a) Funding.--Subject to subsection (c), of the funds authorized to 
be appropriated to the Department of Energy pursuant to section 3101, 
$262,000,000 shall be available for activities related to tritium 
production.
    (b) Acceleration of Tritium Production.--(1) Not later than June 
30, 1998, the Secretary of Energy shall make a final decision on the 
technologies to be utilized, and the accelerated schedule to be 
adopted, for tritium production in order to meet the requirements in 
the Nuclear Weapons Stockpile Memorandum relating to tritium 
production, including the tritium production date of 2005 specified in 
the Nuclear Weapons Stockpile Memorandum.
    (2) In making the final decision, the Secretary shall take into 
account the following:
            (A) The requirements for tritium production specified in 
        the Nuclear Weapons Stockpile Memorandum, including, in 
        particular, the requirements for the so-called ``upload hedge'' 
        component of the nuclear weapons stockpile.
            (B) The ongoing activities of the Department of Energy 
        relating to the evaluation and demonstration of technologies 
        under the accelerator program and the commercial light water 
        reactor program.
            (C) The potential liabilities and benefits of each 
        potential technology for tritium production, including--
                    (i) regulatory and other barriers that might 
                prevent the production of tritium using the technology 
                by the production date referred to in subsection (a);
                    (ii) potential difficulties, if any, in licensing 
                the technology;
                    (iii) the variability, if any, in tritium 
                production rates using the technology; and
                    (iv) any other benefits (including scientific or 
                research benefits or the generation of revenue) 
                associated with the technology.
    (c) Report.--If the Secretary determines that it is not possible to 
make the final decision by the date specified in subsection (b), the 
Secretary shall submit to the congressional defense committees on that 
date a report that explains in detail why the final decision cannot be 
made by that date.
    (d) Limitation on Availability of Funds.--The Secretary may not 
obligate or expend any funds authorized to be appropriated or otherwise 
made available for the Department of Energy by this Act for the purpose 
of evaluating or utilizing any technology for the production of tritium 
other than a commercial light water reactor or an accelerator until the 
later of--
            (1) July 30, 1998; or
            (2) the date that is 30 days after the date on which the 
        Secretary makes a final decision under subsection (b).

SEC. 3135. PROCESSING, TREATMENT, AND DISPOSITION OF SPENT NUCLEAR FUEL 
              RODS AND OTHER LEGACY NUCLEAR MATERIALS AT THE SAVANNAH 
              RIVER SITE.

    (a) Funding.--Of the funds authorized to be appropriated pursuant 
to section 3102(d), not more than $47,000,000 shall be available for 
the implementation of a program to accelerate the receipt, processing 
(including the H-canyon restart operations), reprocessing, separation, 
reduction, deactivation, stabilization, isolation, and interim storage 
of high level nuclear waste associated with Department of Energy spent 
fuel rods, foreign spent fuel rods, and other nuclear materials that 
are located at the Savannah River Site.
    (b) Requirement for Continuing Operations at Savannah River Site.--
The Secretary of Energy shall continue operations and maintain a high 
state of readiness at the F-canyon and H-canyon facilities at the 
Savannah River Site and shall provide technical staff necessary to 
operate and maintain such facilities at that state of readiness.

SEC. 3136. LIMITATIONS ON USE OF FUNDS FOR LABORATORY DIRECTED RESEARCH 
              AND DEVELOPMENT PURPOSES.

    (a) General Limitations.--(1) No funds authorized to be 
appropriated or otherwise made available to the Department of Energy in 
any fiscal year after fiscal year 1997 for weapons activities may be 
obligated or expended for activities under the Department of Energy 
Laboratory Directed Research and Development Program, or under any 
Department of Energy technology transfer program or cooperative 
research and development agreement, unless such activities under such 
program or agreement support the national security mission of the 
Department of Energy.
    (2) No funds authorized to be appropriated or otherwise made 
available to the Department of Energy in any fiscal year after fiscal 
year 1997 for environmental restoration, waste management, or nuclear 
materials and facilities stabilization may be obligated or expended for 
activities under the Department of Energy Laboratory Directed Research 
and Development Program, or under any Department of Energy technology 
transfer program or cooperative research and development agreement, 
unless such activities support the environmental restoration mission, 
waste management mission, or materials stabilization mission, as the 
case may be, of the Department of Energy.
    (b) Limitation in Fiscal Year 1998 Pending Submittal of Annual 
Report.--Not more than 30 percent of the funds authorized to be 
appropriated or otherwise made available to the Department of Energy in 
fiscal year 1998 for laboratory directed research and development may 
be obligated or expended for such research and development until the 
Secretary of Energy submits to the congressional defense committees the 
report required by section 3136(b) of the National Defense 
Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 
2831; 42 U.S.C. 7257b) in 1998.
    (c) Submittal Date for Annual Report on Laboratory Directed 
Research and Development Program.--Section 3136(b)(1) of the National 
Defense Authorization Act for Fiscal Year 1997 (42 U.S.C. 7257b(1)) is 
amended by striking out ``The Secretary of Energy shall annually 
submit'' and inserting in lieu thereof ``Not later than February 1 each 
year, the Secretary of Energy shall submit''.
    (d) Assessment of Funding Level for Laboratory Directed Research 
and Development.--The Secretary shall include in the report submitted 
under such section 3136(b)(1) in 1998 an assessment of the funding 
required to carry out laboratory directed research and development, 
including a recommendation for the percentage of the funds provided to 
Government-owned, contractor-operated laboratories for national 
security activities that should be made available for such research and 
development under section 3132(c) of the National Defense Authorization 
Act for Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1832; 42 U.S.C. 
7257a(c)).
    (e) Definition.--In this section, the term ``laboratory directed 
research and development'' has the meaning given that term in section 
3132(d) of the National Defense Authorization Act for Fiscal Year 1991 
(42 U.S.C. 7257a(d)).

SEC. 3137. PERMANENT AUTHORITY FOR TRANSFERS OF DEFENSE ENVIRONMENTAL 
              MANAGEMENT FUNDS.

    (a) Permanent Authority.--Section 3139 of the National Defense 
Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 
2832) is amended--
            (1) by striking out subsection (g); and
            (2) by redesignating subsection (h) as subsection (g).
    (b) Exemption from Reprogramming Requirements.--Subsection (c) of 
that section is amended by striking out ``The requirements of section 
3121'' and inserting in lieu thereof ``No recurring limitation on 
reprogramming of Department of Energy funds contained in an annual 
authorization Act for national defense''.
    (c) Definitions.--Subsection (f)(1) of that section is amended by 
striking out ``any of the following:'' and all that follows and 
inserting in lieu thereof ``any program or project of the Department of 
Energy relating to environmental restoration and waste management 
activities necessary for national security programs of the 
Department.''.
    (d) Report.--Subsection (g) of that section, as redesignated by 
subsection (a)(2), is amended--
            (1) by striking out ``September 1, 1997,'' and inserting in 
        lieu thereof ``November 1 each year'';
            (2) by inserting ``during the preceding fiscal year'' after 
        ``in subsection (b)''; and
            (3) by striking out the second sentence.
    (e) Conforming Amendment.--The section heading of that section is 
amended by striking out ``temporary authority relating to'' and 
inserting in lieu thereof ``authority for''.

SEC. 3138. PROHIBITION ON RECOVERY OF CERTAIN ADDITIONAL COSTS FOR 
              ENVIRONMENTAL RESPONSE ACTIONS ASSOCIATED WITH THE 
              FORMERLY UTILIZED SITE REMEDIAL ACTION PROJECT PROGRAM.

    (a) Prohibition.--The Department of Energy may not recover from a 
party described in subsection (b) any costs of response actions, for an 
actual or threatened release of hazardous substances that occurred 
before the date of enactment of this Act, at a site included in the 
Formerly Utilized Site Remedial Action Project program other than the 
costs stipulated in a written, legally binding agreement with the party 
with respect to the site as referred to in that subsection.
    (b) Covered Parties.--A party referred to in subsection (a) is any 
party that has entered into a written, legally binding agreement with 
the Department before August 28, 1996, which agreement stipulates a 
formula for the sharing by the party and the Department of the costs of 
response actions at a site referred to in that subsection.

                       Subtitle D--Other Matters

SEC. 3151. ADMINISTRATION OF CERTAIN DEPARTMENT OF ENERGY ACTIVITIES.

    (a) Procedures for Prescribing Regulations.--Section 501 of the 
Department of Energy Organization Act (42 U.S.C. 7191) is amended--
            (1) by striking out subsections (b) and (d);
            (2) by redesignating subsections (c), (e), (f), and (g) as 
        subsections (b), (c), (d), and (e), respectively; and
            (3) in subsection (c), as so redesignated, by striking out 
        ``subsections (b), (c), and (d)'' and inserting in lieu thereof 
        ``subsection (b)''.
    (b) Advisory Committees.--(1) Section 624 of the Department of 
Energy Organization Act (42 U.S.C. 7234) is amended--
            (A) by striking out ``(a)''; and
            (B) by striking out subsection (b).
    (2) Section 17 of the Federal Energy Administration Act of 1974 (15 
U.S.C. 776) is repealed.

SEC. 3152. MODIFICATION AND EXTENSION OF AUTHORITY RELATING TO 
              APPOINTMENT OF CERTAIN SCIENTIFIC, ENGINEERING, AND 
              TECHNICAL PERSONNEL.

    (a) Repeal of Requirement for EPA Study.--Section 3161 of the 
National Defense Authorization Act for Fiscal Year 1995 (Public Law 
103-337; 108 Stat. 3095; 42 U.S.C. 7231 note) is amended--
            (1) by striking out subsection (c); and
            (2) by redesignating subsection (d) as subsection (c).
    (b) Extension of Authority.--Paragraph (1) of subsection (c) of 
such section, as so redesignated, is amended by striking out 
``September 30, 1997'' and inserting in lieu thereof ``September 30, 
1999''.

SEC. 3153. ANNUAL REPORT ON PLAN AND PROGRAM FOR STEWARDSHIP, 
              MANAGEMENT, AND CERTIFICATION OF WARHEADS IN THE NUCLEAR 
              WEAPONS STOCKPILE.

    (a) In General.--(1) Not later than March 15, 1998, the Secretary 
of Energy shall submit to the congressional defense committees a plan 
and program for maintaining the warheads in the nuclear weapons 
stockpile (including stockpile stewardship, stockpile management, and 
program direction).
    (2) Not later than March 15 of each year after 1998, the Secretary 
shall submit to the congressional defense committees an update of the 
plan and program submitted under paragraph (1) current as of the date 
of submittal of the updated plan and program.
    (3) The plan and program, and each update of the plan and program, 
shall be consistent with the programmatic and technical requirements of 
the Nuclear Weapons Stockpile Memorandum current as of the date of 
submittal of the plan and program or update.
    (b) Elements.--The plan and program, and each update of the plan 
and program, shall set forth the following:
            (1) The numbers of warheads (including active and inactive 
        warheads) for each type of warhead in the nuclear stockpile.
            (2) The current age of each warhead type and any plans for 
        stockpile life extensions and modifications or replacement of 
        each warhead type.
            (3) The process by which the Secretary is assessing the 
        lifetime and requirements for life extension or replacement of 
        the nuclear and non-nuclear components of the warheads 
        (including active and inactive warheads) in the nuclear 
        stockpile.
            (4) The process used in recertifying the safety, 
        reliability, and performance of each warhead type (including 
        active and inactive warheads) in the nuclear weapons stockpile.
            (5) Any concerns which would affect the recertification of 
        the safety, security, or reliability of warheads (including 
        active and inactive warheads) in the nuclear stockpile.
    (c) Form.--The Secretary shall submit the plan and program, and 
each update of the plan and program, in unclassified form, but may 
include a classified annex.

SEC. 3154. SUBMITTAL OF BIENNIAL WASTE MANAGEMENT REPORTS.

    Section 3153(b)(2)(B) of the National Defense Authorization Act for 
Fiscal Year 1994 (42 U.S.C. 7274k(b)(2)(B)) is amended by striking out 
``odd-numbered year after 1995'' and inserting in lieu thereof ``odd-
numbered year after 1997''.

SEC. 3155. REPEAL OF OBSOLETE REPORTING REQUIREMENTS.

    (a) Annual Report on Activities of the Atomic Energy Commission.--
(1) Section 251 of the Atomic Energy Act of 1954 (42 U.S.C. 2016) is 
repealed.
    (2) The table of sections at the beginning of that Act is amended 
by striking out the item relating to section 251.
    (b) Annual Report on Weapons Activities Budgets.--Section 3156 of 
the National Defense Authorization Act for Fiscal Year 1997 (Public Law 
104-201; 110 Stat. 2841; 42 U.S.C. 7271c) is repealed.
    (c) Annual Update of Master Plan for Nuclear Weapons Stockpile.--
Section 3153 of the National Defense Authorization Act for Fiscal Year 
1996 (Public Law 104-106; 110 Stat. 624; 42 U.S.C. 2121 note) is 
repealed.
    (d) Annual Report on Weapons Activities Budgets.--Section 3159 of 
the National Defense Authorization Act for Fiscal Year 1996 (Public Law 
104-106; 110 Stat. 626; 42 U.S.C. 7271b note) is repealed.
    (e) Annual Report on Stockpile Stewardship Program.--Section 3138 
of the National Defense Authorization Act for Fiscal Year 1994 (Public 
Law 103-160; 107 Stat. 1946; 42 U.S.C. 2121 note) is amended--
            (1) by striking out subsections (d) and (e);
            (2) by redesignating subsections (f), (g), and (h) as 
        subsections (d), (e), and (f), respectively; and
            (3) in subsection (e), as so redesignated, by striking out 
        ``and the 60-day period referred to in subsection 
        (e)(2)(A)(ii)''.
    (f) Annual Report on Development of Tritium Production Capacity.--
Section 3134 of the National Defense Authorization Act for Fiscal Year 
1993 (Public Law 102-484; 106 Stat. 2639) is repealed.
    (g) Annual Report on Research Relating to Defense Waste Cleanup 
Technology Program.--Section 3141 of the National Defense Authorization 
Act for Fiscal Years 1990 and 1991 (Public Law 101-189; 103 Stat. 1679; 
42 U.S.C. 7274a) is amended--
            (1) by striking out subsection (c); and
            (2) by redesignating subsection (d) as subsection (c).
    (h) Quarterly Report on Major DoE National Security Programs.--
Section 3143 of the National Defense Authorization Act for Fiscal Years 
1990 and 1991 (Public Law 101-189; 103 Stat. 1681; 42 U.S.C. 7271a) is 
repealed.
    (i) Annual Report on Nuclear Test Ban Readiness Program.--Section 
1436 of the National Defense Authorization Act, Fiscal Year 1989 
(Public Law 100-456; 102 Stat. 2075; 42 U.S.C. 2121 note) is amended by 
striking out subsection (e).

SEC. 3156. COMMISSION ON SAFEGUARDING AND SECURITY OF NUCLEAR WEAPONS 
              AND MATERIALS AT DEPARTMENT OF ENERGY FACILITIES.

    (a) Establishment.--There is hereby established a commission to be 
known as the Commission on Safeguards and Security at Department of 
Energy Facilities (in this section referred to as the ``Commission'').
    (b) Organizational Matters.--(1)(A) The Commission shall be 
composed of eight members appointed from among individuals in the 
public and private sectors who have significant experience in matters 
relating to the safeguarding and security of nuclear weapons and 
materials, as follows:
            (i) Two shall be appointed by the chairman of the Committee 
        on Armed Services of the Senate, in consultation with the 
        ranking member of the committee.
            (ii) One shall be appointed by the ranking member of the 
        Committee on Armed Services of the Senate, in consultation with 
        the chairman of the committee.
            (iii) Two shall be appointed by the chairman of the 
        Committee on National Security of the House of Representatives, 
        in consultation with the ranking member of the committee.
            (iv) One shall be appointed by the ranking member of the 
        Committee on National Security of the House of Representatives, 
        in consultation with the chairman of the committee.
            (v) Two shall be appointed by the Secretary of Energy.
    (B) Members shall be appointed for the life of the Commission. Any 
vacancy in the Commission shall not affect its powers, but shall be 
filled in the same manner as the original appointment.
    (C) The chairman of the Commission shall be designated from among 
the members of the Commission by the chairman of the Committee on Armed 
Services of the Senate, in consultation with the chairman of the 
Committee on National Security of the House of Representatives, the 
ranking member of the committee on Armed Services of the Senate, and 
the ranking member of the Committee on National Security of the House 
of Representatives.
    (D) Members shall be appointed not later than 60 days after the 
date of enactment of this Act.
    (2) The members of the Commission shall establish procedures for 
the activities of the Commission, including procedures for calling 
meetings, requirements for quorums, and the manner of taking votes.
    (c) Duties.--(1) The Commission shall--
            (A) conduct a review of the specifications in the document 
        entitled ``Design Threat Basis'' relating to the safeguarding 
        and security of nuclear weapons and materials in order to 
        determine whether or not the specifications establish 
        procedures adequate for the safeguarding and security of such 
        weapons and materials at Department of Energy facilities; and
            (B) determine whether or not the document takes into 
        account all relevant guidelines for the safeguarding and 
        security of such weapons and materials at such facilities, 
        including Presidential Decision Directive 39, relating to 
        United States policy on counterterrorism.
    (2) In conducting the review, the Commission shall--
            (A) visit various Department facilities, including the 
        Rocky Flats Plant, Colorado, Los Alamos National Laboratory, 
        New Mexico, the Savannah River Site, South Carolina, the Pantex 
        Plant, Texas, Oak Ridge National Laboratory, Tennessee, and the 
        Hanford Reservation, Washington, in order to assess the 
        adequacy of safeguards and security with respect to nuclear 
        weapons and materials at such facilities;
            (B) evaluate the specific concerns with respect to the 
        safeguarding and security of nuclear weapons and materials 
        raised in the report of the Office of Safeguards and Security 
        of the Department of Energy entitled ``Status of Safeguards and 
        Security for 1996''; and
            (C) review applicable orders and other requirements 
        governing the safeguarding and security of nuclear weapons and 
        materials at Department facilities.
    (d) Report.--(1) Not later than February 15, 1998, the Commission 
shall submit to the Secretary and to the congressional defense 
committees a report on the review conducted under subsection (c).
    (2) The report may include--
            (A) recommendations regarding any modifications of policy 
        or procedures applicable to Department facilities that the 
        Commission considers appropriate to provide adequate safeguards 
        and security for nuclear weapons and materials at such 
        facilities without impairing the mission of such facilities;
            (B) recommendations for modifications in funding priorities 
        necessary to ensure basic funding for the safeguarding and 
        security of such weapons and materials at such facilities; and
            (C) such other recommendations for additional legislation 
        or administrative action as the Commission considers 
        appropriate.
    (e) Personnel Matters.--(1)(A) Each member of the Commission who is 
not an officer or employee of the Federal Government 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 53115 of title 5, United States Code, for each day (including 
travel time) during which such member is engaged in the performance of 
the duties of the Commission.
    (B) All members of the Commission who are officers or employees of 
the United States shall serve without compensation in addition to that 
received for their services as officers or employees of the United 
States.
    (2) The members of the Commission shall be allowed travel expenses, 
including per diem in lieu of subsistence, at rates authorized for 
employees of agencies under subchapter I of chapter 57 of title 5, 
United States Code, while away from their homes or regular places of 
business in the performance of services for the Commission.
    (3)(A) The Commission may, without regard to the civil service laws 
and regulations, appoint and terminate such personnel as may be 
necessary to enable the Commission to perform its duties.
    (B) The Commission may fix the compensation of the personnel of the 
Commission 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.
    (4) Any Federal Government employee may be detailed to the 
Commission without reimbursement, and such detail shall be without 
interruption or loss of civil status or privilege.
    (f) Applicability of FACA.--The provisions of the Federal Advisory 
Committee Act (5 U.S.C. App.) shall not apply to the activities of the 
Commission.
    (g) Termination.--The Commission shall terminate 30 days after the 
date on which the Commission submits its report under subsection (d).
    (h) Funding.--Of the amounts authorized to be appropriated pursuant 
to section 3101, not more that $500,000 shall be available for the 
activities of the Commission under this section. Funds made available 
to the Commission under this section shall remain available until 
expended.

SEC. 3157. MODIFICATION OF AUTHORITY ON COMMISSION ON MAINTAINING 
              UNITED STATES NUCLEAR WEAPONS EXPERTISE.

    (a) Commencement of Activities.--Subsection (b)(1) of section 3162 
of the National Defense Authorization Act for Fiscal Year 1997 (Public 
Law 104-201; 110 Stat. 2844; 42 U.S.C. 2121 note) is amended--
            (1) in subparagraph (C), by adding at the end the following 
        new sentence: ``The chairman may be designated once five 
        members of the Commission have been appointed under 
        subparagraph (A).''; and
            (2) by adding at the end the following:
    ``(E) The Commission may commence its activities under this section 
upon the designation of the chairman of the Commission under 
subparagraph (C).''.
    (b) Deadline for Report.--Subsection (d) of that section is amended 
by striking out ``March 15, 1998,'' and inserting in lieu thereof 
``March 15, 1999,''.

SEC. 3158. LAND TRANSFER, BANDELIER NATIONAL MONUMENT.

    (a) Transfer of Administrative Jurisdiction.--The Secretary of 
Energy shall transfer to the Secretary of the Interior administrative 
jurisdiction over a parcel of real property consisting of approximately 
4.47 acres as depicted on the map entitled ``Boundary Map, Bandelier 
National Monument'', No. 315/80,051, dated March 1995.
    (b) Boundary Modification.--The boundary of the Bandelier National 
Monument established by Proclamation No. 1322 (16 U.S.C. 431 note) is 
modified to include the real property transferred under subsection (a).
    (c) Public Availability of Map.--The map described in subsection 
(a) shall be on file and available for public inspection in the Lands 
Office at the Southwest System Support Office of the National Park 
Service, Santa Fe, New Mexico, and in the office of the Superintendent 
of Bandelier National Monument.
    (d) Administration.--The real property and interests in real 
property transferred under subsection (a) shall be--
            (1) administered as part of Bandelier National Monument; 
        and
            (2) subject to all laws applicable to the Bandelier 
        National Monument and all laws generally applicable to units of 
        the National Park System.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

SEC. 3201. AUTHORIZATION.

    There are authorized to be appropriated for fiscal year 1998, 
$17,500,000 for the operation of the Defense Nuclear Facilities Safety 
Board under chapter 21 of the Atomic Energy Act of 1954 (42 U.S.C. 2286 
et seq.).

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

SEC. 3301. DEFINITIONS.

    In this title:
            (1) The term ``National Defense Stockpile'' means the 
        stockpile provided for in section 4 of the Strategic and 
        Critical Materials Stock Piling Act (50 U.S.C. 98c).
            (2) The term ``National Defense Stockpile Transaction 
        Fund'' means the fund in the Treasury of the United States 
        established under section 9(a) of the Strategic and Critical 
        Materials Stock Piling Act (50 U.S.C. 98h(a)).

SEC. 3302. AUTHORIZED USES OF STOCKPILE FUNDS.

    (a) Obligations Authorized.--During fiscal year 1998, the National 
Defense Stockpile Manager may obligate up to $60,000,000 of the funds 
in the National Defense Stockpile Transaction Fund established under 
subsection (a) of section 9 of the Strategic and Critical Materials 
Stock Piling Act (50 U.S.C. 98h) for the authorized uses of such funds 
under subsection (b)(2) of such section.
    (b) Additional Obligations.--The National Defense Stockpile Manager 
may obligate amounts in excess of the amount specified in subsection 
(a) if the National Defense Stockpile Manager notifies Congress that 
extraordinary or emergency conditions necessitate the additional 
obligations. The National Defense Stockpile Manager may make the 
additional obligations described in the notification after the end of 
the 45-day period beginning on the date Congress receives the 
notification.
    (c) Limitations.--The authorities provided by this section shall be 
subject to such limitations as may be provided in appropriations Acts.

SEC. 3303. AUTHORITY TO DISPOSE OF CERTAIN MATERIALS IN NATIONAL 
              DEFENSE STOCKPILE.

    (a) Disposal Required.--Subject to subsection (c), the President 
shall dispose of materials contained in the National Defense Stockpile 
and specified in the table in subsection (b) so as to result in 
receipts to the United States in amounts equal to--
            (1) $9,222,000 by the end of fiscal year 1998;
            (2) $134,840,000 by the end of fiscal year 2002; and
            (3) $295,886,000 by the end of fiscal year 2007.
    (b) Limitation on Disposal Quantity.--The total quantities of 
materials authorized for disposal by the President under subsection (a) 
may not exceed the amounts set forth in the following table:



                     Authorized Stockpile Disposals                     
------------------------------------------------------------------------
   Material for disposal                              Quantity          
------------------------------------------------------------------------
Berylium Copper Master Alloy..............  7,387 short tons            
Chromium Metal............................  8,511 short tons            
Cobalt....................................  14,058,014 pounds           
Columbium Carbide.........................  21,372 pounds               
Columbium Ferro...........................  249,395 pounds              
Diamond, Bort.............................  61,543 carats               
Diamond, Dies.............................  25,473 pieces               
Diamond, Stone............................  3,047,900 carats            
Germanium.................................  28,200 kilograms            
Indium....................................  14,248 troy ounces          
Palladium.................................  1,249,485 troy ounces       
Platinum..................................  442,641 troy ounces         
Tantalum, Carbide Powder..................  22,688 pounds contained     
Tantalum, Minerals........................  1,751,364 pounds contained  
Tantalum, Oxide...........................  123,691 pounds contained    
Titanium Sponge...........................  34,831 short tons           
Tungsten, Ores & Concentrate..............  76,358,235 pounds           
Tungsten, Carbide.........................  2,032,954 pounds            
Tungsten, Metal Powder....................  1,899,283 pounds            
Tungsten, Ferro...........................  2,024,143 pounds            
------------------------------------------------------------------------

    (c) Minimization of Disruption and Loss.--The President may not 
dispose of materials under subsection (a) to the extent that the 
disposal will result in--
            (1) undue disruption of the usual markets of producers, 
        processors, and consumers of the materials proposed for 
        disposal; or
            (2) avoidable loss to the United States.
    (d) Relationship to Other Disposal Authority.--The disposal 
authority provided in subsection (a) is new disposal authority and is 
in addition to, and shall not affect, any other disposal authority 
provided by law regarding the materials specified in such subsection.

SEC. 3304. RETURN OF SURPLUS PLATINUM FROM THE DEPARTMENT OF THE 
              TREASURY.

    (a) Return of Platinum to Stockpile.--Subject to subsection (b), 
the Secretary of the Treasury, upon the request of the Secretary of 
Defense, shall return to the Secretary of Defense for sale or other 
disposition platinum of the National Defense Stockpile that has been 
loaned to the Department of the Treasury by the Secretary of Defense, 
acting as the stockpile manager. The quantity requested and transferred 
shall be any quantity that the Secretary of Defense determines 
appropriate for sale or other disposition.
    (b) Alternative Transfer of Funds.--The Secretary of the Treasury, 
with the concurrence of the Secretary of Defense, may transfer to the 
Secretary of Defense funds in a total amount that is equal to the fair 
market value of any platinum requested under subsection (a) and not 
returned. A transfer of funds under this subsection shall be a 
substitute for a return of platinum under subsection (a). Upon a 
transfer of funds as a substitute for a return of platinum, the 
platinum shall cease to be part of the National Defense Stockpile. A 
transfer of funds under this subsection shall be charged to any 
appropriation for the Department of the Treasury and shall be credited 
to the National Defense Stockpile Transaction Fund.

                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

SEC. 3401. AUTHORIZATION OF APPROPRIATIONS.

    There is hereby authorized to be appropriated to the Secretary of 
Energy $117,000,000 for fiscal year 1998 for the purpose of carrying 
out activities under chapter 641 of title 10, United States Code, 
relating to the naval petroleum reserves (as defined in section 7420(2) 
of such title). Funds appropriated pursuant to such authorization shall 
remain available until expended.

SEC. 3402. LEASING OF CERTAIN OIL SHALE RESERVES.

    (a) Requirement To Lease.--The Secretary of Energy may lease, 
subject to valid existing rights, the United States interest in Oil 
Shale Reserves Numbered 1, 2, and 3 to one or more private entities for 
the purpose of providing for the exploration of such reserves for, and 
the development and production of, petroleum.
    (b) Maximization of Financial Return to the United States.--A lease 
under this section shall be made under terms that result in the maximum 
practicable financial return to the United States, without regard to 
production limitations provided under chapter 641 of title 10, United 
States Code.
    (c) Disposition of Wells, Gathering Lines, and Equipment.--A lease 
of a reserve under subsection (a) may include the sale or other 
disposition, at fair market value, of any well, gathering line, or 
related equipment owned by the United States that is located at the 
reserve and is suitable for use in the exploration, development, or 
production of petroleum on the reserve.
    (d) Disposition of Royalties and Other Proceeds.--All royalties and 
other proceeds accruing to the United States from a lease under this 
section shall be disposed of in accordance with section 7433 of title 
10, United States Code.
    (e) Inapplicability of Certain Sections of Title 10, United States 
Code.--The following provisions of chapter 641 of title 10, United 
States Code, do not apply to the leasing of a reserve under this 
section nor to a reserve while under a lease entered into under this 
section: section 7422(b), subsections (d), (e), (g), and (k) of section 
7430, section 7431, and section 7438(c)(1).
    (f) Definitions.--In this section:
            (1) The term ``Oil Shale Reserves Numbered 1, 2, and 3'' 
        means the oil shale reserves identified in section 7420(2) of 
        title 10, United States Code, as Oil Shale Reserve Numbered 1, 
        Oil Shale Reserve Numbered 2, and Oil Shale Reserve Numbered 3.
            (2) The term ``petroleum'' has the meaning given such term 
        in section 7420(3) of such title.

SEC. 3403. REPEAL OF REQUIREMENT TO ASSIGN NAVY OFFICERS TO OFFICE OF 
              NAVAL PETROLEUM AND OIL SHALE RESERVES.

    Section 2 of Public Law 96-137 (42 U.S.C. 7156a) is repealed.

                  TITLE XXXV--PANAMA CANAL COMMISSION

     Subtitle A--Authorization of Expenditures From Revolving Fund

SEC. 3501. SHORT TITLE.

    This subtitle may be cited as the ``Panama Canal Commission 
Authorization Act for Fiscal Year 1998''.

SEC. 3502. AUTHORIZATION OF EXPENDITURES.

    (a) In General.--Subject to subsection (b), the Panama Canal 
Commission is authorized to use amounts in the Panama Canal Revolving 
Fund to make such expenditures within the limits of funds and borrowing 
authority available to it in accordance with law, and to make such 
contracts and commitments, as may be necessary under the Panama Canal 
Act of 1979 (22 U.S.C. 3601 et seq.) for the operation, maintenance, 
improvement, and administration of the Panama Canal for fiscal year 
1998.
    (b) Limitations.--For fiscal year 1998, the Panama Canal Commission 
may expend from funds in the Panama Canal Revolving Fund not more than 
$85,000 for official reception and representation expenses, of which--
            (1) not more than $23,000 may be used for official 
        reception and representation expenses of the Supervisory Board 
        of the Commission;
            (2) not more than $12,000 may be used for official 
        reception and representation expenses of the Secretary of the 
        Commission; and
            (3) not more than $50,000 may be used for official 
        reception and representation expenses of the Administrator of 
        the Commission.

SEC. 3503. PURCHASE OF VEHICLES.

    Notwithstanding any other provision of law, the funds available to 
the Commission shall be available for the purchase and transportation 
to the Republic of Panama of passenger motor vehicles, the purchase 
price of which shall not exceed $22,000 per vehicle.

SEC. 3504. EXPENDITURES ONLY IN ACCORDANCE WITH TREATIES.

    Expenditures authorized under this subtitle may be made only in 
accordance with the Panama Canal Treaties of 1977 and any law of the 
United States implementing those treaties.

          Subtitle B--Facilitation of Panama Canal Transition

SEC. 3511. SHORT TITLE; REFERENCES.

    (a) Short Title.--This subtitle may be cited as the ``Panama Canal 
Transition Facilitation Act of 1997''.
    (b) References.--Except as otherwise expressly provided, whenever 
in this subtitle an amendment or repeal is expressed in terms of an 
amendment to, or repeal of, a section or other provision, the reference 
shall be considered to be made to a section or other provision of the 
Panama Canal Act of 1979 (22 U.S.C. 3601 et seq.).

SEC. 3512. DEFINITIONS RELATING TO CANAL TRANSITION.

    Section 3 (22 U.S.C. 3602) is amended by adding at the end the 
following new subsection:
    ``(d) For purposes of this Act:
            ``(1) The term `Canal Transfer Date' means December 31, 
        1999, such date being the date specified in the Panama Canal 
        Treaty of 1977 for the transfer of the Panama Canal from the 
        United States of America to the Republic of Panama.
            ``(2) The term `Panama Canal Authority' means the entity 
        created by the Republic of Panama to succeed the Panama Canal 
        Commission as of the Canal Transfer Date.''.

    PART I--TRANSITION MATTERS RELATING TO COMMISSION OFFICERS AND 
                               EMPLOYEES

SEC. 3521. AUTHORITY FOR THE ADMINISTRATOR OF THE COMMISSION TO ACCEPT 
              APPOINTMENT AS THE ADMINISTRATOR OF THE PANAMA CANAL 
              AUTHORITY.

    (a) Authority for Dual Role.--Section 1103 (22 U.S.C. 3613) is 
amended by adding at the end the following new subsection:
    ``(c) The Congress consents, for purposes of the 8th clause of 
article I, section 9 of the Constitution of the United States, to the 
acceptance by the individual serving as Administrator of the Commission 
of appointment by the Republic of Panama to the position of 
Administrator of the Panama Canal Authority. Such consent is effective 
only if that individual, while serving in both such positions, serves 
as Administrator of the Panama Canal Authority without compensation, 
except for payments by the Republic of Panama of travel and 
entertainment expenses, including per diem payments.''.
    (b) Waiver of Certain Conflict-of-Interest Statutes.--Such section 
is further amended by adding at the end the following new subsections:
    ``(d) The Administrator, with respect to participation in any 
matter as Administrator of the Panama Canal Commission (whether such 
participation is before, on, or after the date of the enactment of the 
Panama Canal Transition Facilitation Act of 1997), shall not be subject 
to section 208 of title 18, United States Code, insofar as the matter 
relates to prospective employment as Administrator of the Panama Canal 
Authority.
    ``(e) If the Republic of Panama appoints as the Administrator of 
the Panama Canal Authority the individual serving as the Administrator 
of the Commission and if that individual accepts the appointment--
            ``(1) the Foreign Agents Registration Act of 1938, as 
        amended (22 U.S.C. 611 et seq.), shall not apply to that 
        individual with respect to service as the Administrator of the 
        Panama Canal Authority;
            ``(2) that individual, with respect to participation in any 
        matter as the Administrator of the Panama Canal Commission, is 
        not subject to section 208 of title 18, United States Code, 
        insofar as the matter relates to service as, or performance of 
        the duties of, the Administrator of the Panama Canal Authority; 
        and
            ``(3) that individual, with respect to official acts 
        performed as the Administrator of the Panama Canal Authority, 
        is not subject to the following:
                    ``(A) Sections 203 and 205 of title 18, United 
                States Code.
                    ``(B) Effective upon termination of the 
                individual's appointment as Administrator of the Panama 
                Canal Commission at noon on the Canal Transfer Date, 
                section 207 of title 18, United States Code.
                    ``(C) Sections 501(a) and 502(a)(4) of the Ethics 
                in Government Act of 1978 (5 U.S.C. App.), with respect 
                to compensation received for, and service in, the 
                position of Administrator of the Panama Canal 
                Authority.''.

SEC. 3522. POST-CANAL TRANSFER PERSONNEL AUTHORITIES.

    (a) Waiver of Certain Post-employment Restrictions for Commission 
Personnel Becoming Employees of the Panama Canal Authority.--Section 
1112 (22 U.S.C. 3622) is amended by adding at the end the following new 
subsection:
    ``(e) Effective as of the Canal Transfer Date, section 207 of title 
18, United States Code, shall not apply to an individual who is an 
officer or employee of the Panama Canal Authority, but only with 
respect to official acts of that individual as an officer or employee 
of the Authority and only in the case of an individual who was an 
officer or employee of the Commission and whose employment with the 
Commission was terminated at noon on the Canal Transfer Date.''.
    (b) Consent of Congress for Acceptance by Reserve and Retired 
Members of the Armed Forces of Employment by Panama Canal Authority.--
Such section is further amended by adding after subsection (e), as 
added by subsection (a), the following new subsection:
    ``(f)(1) The Congress consents to the following persons accepting 
civil employment (and compensation for that employment) with the Panama 
Canal Authority for which the consent of the Congress is required by 
the last paragraph of section 9 of article I of the Constitution of the 
United States, relating to acceptance of emoluments, offices, or titles 
from a foreign government:
            ``(A) Retired members of the uniformed services.
            ``(B) Members of a reserve component of the armed forces.
            ``(C) Members of the Commissioned Reserve Corps of the 
        Public Health Service.
    ``(2) The consent of the Congress under paragraph (1) is effective 
without regard to subsection (b) of section 908 of title 37, United 
States Code (relating to approval required for employment of Reserve 
and retired members by foreign governments).''.

SEC. 3523. ENHANCED AUTHORITY OF COMMISSION TO ESTABLISH COMPENSATION 
              OF COMMISSION OFFICERS AND EMPLOYEES.

    (a) Repeal of Limitations on Commission Authority.--The following 
provisions are repealed:
            (1) Section 1215 (22 U.S.C. 3655), relating to basic pay.
            (2) Section 1219 (22 U.S.C. 3659), relating to salary 
        protection upon conversion of pay rate.
            (3) Section 1225 (22 U.S.C. 3665), relating to minimum 
        level of pay and minimum annual increases.
    (b) Savings Provision.--Section 1202 (22 U.S.C. 3642) is amended by 
adding at the end the following new subsection:
    ``(c) In the case of an individual who is an officer or employee of 
the Commission on the day before the date of the enactment of the 
Panama Canal Transition Facilitation Act of 1997 and who has not had a 
break in service with the Commission since that date, the rate of basic 
pay for that officer or employee on or after that date may not be less 
than the rate in effect for that officer or employee on the day before 
that date of enactment except--
            ``(1) as provided in a collective bargaining agreement;
            ``(2) as a result of an adverse action against the officer 
        or employee; or
            ``(3) pursuant to a voluntary demotion.''.
    (c) Cross-Reference Amendments.--(1) Section 1216 (22 U.S.C. 3656) 
is amended by striking out ``1215'' and inserting in lieu thereof 
``1202''.
    (2) Section 1218 (22 U.S.C. 3658) is amended by striking out 
``1215'' and ``1217'' and inserting in lieu thereof ``1202'' and 
``1217(a)'', respectively.

SEC. 3524. TRAVEL, TRANSPORTATION, AND SUBSISTENCE EXPENSES FOR 
              COMMISSION PERSONNEL NO LONGER SUBJECT TO FEDERAL TRAVEL 
              REGULATION.

    (a) Repeal of Applicability of Title 5 Provisions.--(1) Section 
1210 (22 U.S.C. 3650) is amended by striking out subsections (a), (b), 
and (c).
    (2) Section 1224 (22 U.S.C. 3664) is amended--
            (A) by striking out paragraph (10); and
            (B) by redesignating paragraphs (11) through (20) as 
        paragraphs (10) through (19), respectively.
    (b) Conforming Amendments.--(1) Section 1210 is further amended--
            (A) by redesignating subsection (d)(1) as subsection (a) 
        and in that subsection striking out ``paragraph (2)'' and 
        inserting in lieu thereof ``subsection (b)''; and
            (B) by redesignating subsection (d)(2) as subsection (b) 
        and in that subsection--
                    (i) striking out ``Notwithstanding paragraph (1), 
                an'' and inserting in lieu thereof ``An''; and
                    (ii) striking out ``referred to in paragraph (1)'' 
                and inserting in lieu thereof ``who is a citizen of the 
                Republic of Panama''.
    (2) The heading of such section is amended to read as follows:

                        ``air transportation''.

    (c) Effective Date.--The amendments made by this section shall take 
effect on January 1, 1999.

SEC. 3525. ENHANCED RECRUITMENT AND RETENTION AUTHORITIES.

    (a) Recruitment, Relocation, and Retention Bonuses.--Section 1217 
(22 U.S.C. 3657) is amended--
            (1) by redesignating subsection (c) as subsection (e);
            (2) in subsection (e) (as so redesignated), by striking out 
        ``for the same or similar work performed in the United States 
        by individuals employed by the Government of the United 
        States'' and inserting in lieu thereof ``of the individual to 
        whom the compensation is paid''; and
            (3) by inserting after subsection (b) the following new 
        subsections:
    ``(c)(1) The Commission may pay a recruitment bonus to an 
individual who is newly appointed to a position with the Commission, or 
a relocation bonus to an employee of the Commission who must relocate 
to accept a position, if the Commission determines that the Commission 
would be likely, in the absence of such a bonus, to have difficulty in 
filling the position.
    ``(2) A recruitment or relocation bonus may be paid to an employee 
under this subsection only if the employee enters into an agreement 
with the Commission to complete a period of employment with the 
Commission established by the Commission. If the employee voluntarily 
fails to complete such period of employment or is separated from 
service in such employment as a result of an adverse action before the 
completion of such period, the employee shall repay the entire amount 
of the bonus received by the employee.
    ``(3) A relocation bonus under this subsection may be paid as a 
lump sum. A recruitment bonus under this subsection shall be paid on a 
pro rata basis over the period of employment covered by the agreement 
under paragraph (2). A bonus under this subsection may not be 
considered to be part of the basic pay of an employee.
    ``(d)(1) The Commission may pay a retention bonus to an employee of 
the Commission if the Commission determines that--
            ``(A) the employee has unusually high or unique 
        qualifications and those qualifications make it essential for 
        the Commission to retain the employee for a period specified by 
        the Commission ending not later than the Canal Transfer Date, 
or the Commission otherwise has a special need for the services of the 
employee making it essential for the Commission to retain the employee 
for a period specified by the Commission ending not later than the 
Canal Transfer Date; and
            ``(B) the employee would be likely to leave employment with 
        the Commission before the end of that period if the retention 
        bonus is not paid.
    ``(2) A retention bonus under this subsection--
            ``(A) shall be in a fixed amount;
            ``(B) shall be paid on a pro rata basis (over the period 
        specified by the Commission as essential for the retention of 
        the employee), with such payments to be made at the same time 
        and in the same manner as basic pay; and
            ``(C) may not be considered to be part of the basic pay of 
        an employee.
    ``(3) A decision by the Commission to exercise or to not exercise 
the authority to pay a bonus under this subsection shall not be subject 
to review under any statutory procedure or any agency or negotiated 
grievance procedure except under any of the laws referred to in section 
2302(d) of title 5, United States Code.''.
    (b) Educational Services.--Section 1321(e)(2) (22 U.S.C. 
3731(e)(2)) is amended by striking out ``and persons'' and inserting in 
lieu thereof ``, to other Commission employees when determined by the 
Commission to be necessary for their recruitment or retention, and to 
other persons''.

SEC. 3526. TRANSITION SEPARATION INCENTIVE PAYMENTS.

    Chapter 2 of title I (22 U.S.C. 3641 et seq.) is amended by adding 
at the end of subchapter III the following new section:

               ``transition separation incentive payments

    ``Sec. 1233. (a) In applying to the Commission and employees of the 
Commission the provisions of section 663 of the Treasury, Postal 
Service, and General Government Appropriations Act, 1997 (as contained 
in section 101(f) of division A of Public Law 104-208; 110 Stat. 3009-
383), relating to voluntary separation incentives for employees of 
certain Federal agencies (in this section referred to as `section 
663')--
            ``(1) the term `employee' shall mean an employee of the 
        Commission who has served in the Republic of Panama in a 
        position with the Commission for a continuous period of at 
        least three years immediately before the employee's separation 
        under an appointment without time limitation and who is covered 
        under the Civil Service Retirement System or the Federal 
        Employees' Retirement System under subchapter III of chapter 83 
        or chapter 84, respectively, of title 5, United States Code, 
        other than--
                    ``(A) an employee described in any of subparagraphs 
                (A) through (F) of subsection (a)(2) of section 663; or
                    ``(B) an employee of the Commission who, during the 
                24-month period preceding the date of separation, has 
                received a recruitment or relocation bonus under 
                section 1217(c) of this Act or who, within the 12-month 
                period preceding the date of separation, received a 
                retention bonus under section 1217(d) of this Act;
            ``(2) the strategic plan under subsection (b) of section 
        663 shall include (in lieu of the matter specified in 
        subsection (b)(2) of that section)--
                    ``(A) the positions to be affected, identified by 
                occupational category and grade level;
                    ``(B) the number and amounts of separation 
                incentive payments to be offered; and
                    ``(C) a description of how such incentive payments 
                will facilitate the successful transfer of the Panama 
                Canal to the Republic of Panama;
            ``(3) a separation incentive payment under section 663 may 
        be paid to a Commission employee only to the extent necessary 
        to facilitate the successful transfer of the Panama Canal by 
        the United States of America to the Republic of Panama as 
        required by the Panama Canal Treaty of 1977;
            ``(4) such a payment--
                    ``(A) may be in an amount determined by the 
                Commission not to exceed $25,000; and
                    ``(B) may be made (notwithstanding the limitation 
                specified in subsection (c)(2)(D) of section 663) in 
                the case of an eligible employee who voluntarily 
                separates (whether by retirement or resignation) during 
                the 90-day period beginning on the date of the 
                enactment of this section or during the period 
                beginning on October 1, 1998, and ending on December 
                31, 1998;
            ``(5) in the case of not more than 15 employees who (as 
        determined by the Commission) are unwilling to work for the 
        Panama Canal Authority after the Canal Transfer Date and who 
        occupy critical positions for which (as determined by the 
        Commission) at least two years of experience is necessary to 
        ensure that seasoned managers are in place on and after the 
        Canal Transfer Date, such a payment (notwithstanding paragraph 
        (4))--
                    ``(A) may be in an amount determined by the 
                Commission not to exceed 50 percent of the basic pay of 
                the employee; and
                    ``(B) may be made (notwithstanding the limitation 
                specified in subsection (c)(2)(D) of section 663) in 
                the case of such an employee who voluntarily separates 
                (whether by retirement or resignation) during the 90-
                day period beginning on the date of the enactment of 
                this section; and
            ``(6) the provisions of subsection (f) of section 663 shall 
        not apply.
    ``(b) A decision by the Commission to exercise or to not exercise 
the authority to pay a transition separation incentive under this 
section shall not be subject to review under any statutory procedure or 
any agency or negotiated grievance procedure except under any of the 
laws referred to in section 2302(d) of title 5, United States Code.''.

SEC. 3527. LABOR-MANAGEMENT RELATIONS.

    Section 1271 (22 U.S.C. 3701) is amended by adding at the end the 
following new subsection:
    ``(c)(1) This subsection applies to any matter that becomes the 
subject of collective bargaining between the Commission and the 
exclusive representative for any bargaining unit of employees of the 
Commission during the period beginning on the date of the enactment of 
this subsection and ending on the Canal Transfer Date.
    ``(2)(A) The resolution of impasses resulting from collective 
bargaining between the Commission and any such exclusive representative 
during that period shall be conducted in accordance with such 
procedures as may be mutually agreed upon between the Commission and 
the exclusive representative (without regard to any otherwise 
applicable provisions of chapter 71 of title 5, United States Code). 
Such mutually agreed upon procedures shall become effective upon 
transmittal by the Chairman of the Commission to the Congress of notice 
of the agreement to use those procedures and a description of those 
procedures.
    ``(B) The Federal Services Impasses Panel shall not have 
jurisdiction to resolve any impasse between the Commission and any such 
exclusive representative in negotiations over a procedure for resolving 
impasses.
    ``(3) If the Commission and such an exclusive representative do not 
reach an agreement concerning a procedure for resolving impasses with 
respect to a bargaining unit and transmit notice of the agreement under 
paragraph (2) on or before July 1, 1998, the following shall be the 
procedure by which collective bargaining impasses between the 
Commission and the exclusive representative for that bargaining unit 
shall be resolved:
            ``(A) If bargaining efforts do not result in an agreement, 
        the parties shall request the Federal Mediation and 
        Conciliation Service to assist in achieving an agreement.
            ``(B) If an agreement is not reached within 45 days after 
        the date on which either party requests the assistance of the 
        Federal Mediation and Conciliation Service in writing (or 
        within such shorter period as may be mutually agreed upon by 
        the parties), the parties shall be considered to be at an 
        impasse and shall request the Federal Services Impasses Panel 
        of the Federal Labor Relations Authority to decide the impasse.
            ``(C) If the Federal Services Impasses Panel fails to issue 
        a decision within 90 days after the date on which its services 
        are requested (or within such shorter period as may be mutually 
        agreed upon by the parties), the efforts of the Panel shall be 
        terminated.
            ``(D) In such a case, the Chairman of the Panel (or another 
        member in the absence of the Chairman) shall immediately 
        determine the matter by a drawing (conducted in such manner as 
        the Chairman (or, in the absence of the Chairman, such other 
        member) determines appropriate) between the last offer of the 
        Commission and the last offer of the exclusive representative, 
        with the offer chosen through such drawing becoming the binding 
        resolution of the matter.
    ``(4) In the case of a notice of agreement described in paragraph 
(2)(A) that is transmitted to the Congress as described in the second 
sentence of that paragraph after July 1, 1998, the impasse resolution 
procedures covered by that notice shall apply to any impasse between 
the Commission and the other party to the agreement that is unresolved 
on the date on which that notice is transmitted to the Congress.''.

SEC. 3528. AVAILABILITY OF PANAMA CANAL REVOLVING FUND FOR SEVERANCE 
              PAY FOR CERTAIN EMPLOYEES SEPARATED BY PANAMA CANAL 
              AUTHORITY AFTER CANAL TRANSFER DATE.

    (a) Availability of Revolving Fund.--Section 1302(a) (22 U.S.C. 
3712(a)) is amended by adding at the end the following new paragraph:
            ``(10) Payment to the Panama Canal Authority, not later 
        than the Canal Transfer Date, of such amount as is computed by 
        the Commission to be the future amount of severance pay to be 
        paid by the Panama Canal Authority to employees whose 
        employment with the Authority is terminated, to the extent that 
        such severance pay is attributable to periods of service 
        performed with the Commission before the Canal Transfer Date 
        (and assuming for purposes of such computation that the Panama 
        Canal Authority, in paying severance pay to terminated 
        employees, will provide for crediting of periods of service 
        with the Commission).''.
    (b) Stylistic Amendments.--Such section is further amended--
            (1) by striking out ``for--'' in the matter preceding 
        paragraph (1) and inserting in lieu thereof ``for the following 
        purposes:'';
            (2) by capitalizing the initial letter of the first word in 
        each of paragraphs (1) through (9);
            (3) by striking out the semicolon at the end of each of 
        paragraphs (1) through (7) and inserting in lieu thereof a 
        period; and
            (4) by striking out ``; and'' at the end of paragraph (8) 
        and inserting in lieu thereof a period.

PART II--TRANSITION MATTERS RELATING TO OPERATION AND ADMINISTRATION OF 
                                 CANAL

SEC. 3541. ESTABLISHMENT OF PROCUREMENT SYSTEM AND BOARD OF CONTRACT 
              APPEALS.

    Title III of the Panama Canal Act of 1979 (22 U.S.C. 3601 et seq.) 
is amended by inserting after the title heading the following new 
chapter:

                        ``Chapter 1--Procurement

                          ``procurement system

    ``Sec. 3101. (a) Panama Canal Acquisition Regulation.--(1) The 
Commission shall establish by regulation a comprehensive procurement 
system. The regulation shall be known as the `Panama Canal Acquisition 
Regulation' (in this section referred to as the `Regulation') and shall 
provide for the procurement of goods and services by the Commission in 
a manner that--
            ``(A) applies the fundamental operating principles and 
        procedures in the Federal Acquisition Regulation;
            ``(B) uses efficient commercial standards of practice; and
            ``(C) is suitable for adoption and uninterrupted use by the 
        Republic of Panama after the Canal Transfer Date.
    ``(2) The Regulation shall contain provisions regarding the 
establishment of the Panama Canal Board of Contract Appeals described 
in section 3102.
    ``(b) Supplement to Regulation.--The Commission shall develop a 
Supplement to the Regulation (in this section referred to as the 
`Supplement') that identifies both the provisions of Federal law 
applicable to procurement of goods and services by the Commission and 
the provisions of Federal law waived by the Commission under subsection 
(c).
    ``(c) Waiver Authority.--(1) Subject to paragraph (2), the 
Commission shall determine which provisions of Federal law should not 
apply to procurement by the Commission and may waive those laws for 
purposes of the Regulation and Supplement.
    ``(2) For purposes of paragraph (1), the Commission may not waive--
            ``(A) section 27 of the Office of Federal Procurement 
        Policy Act (41 U.S.C. 423);
            ``(B) the Contract Disputes Act of 1978 (41 U.S.C. 601 et 
        seq.), other than section 10(a) of such Act (41 U.S.C 609(a)); 
        or
            ``(C) civil rights, environmental, or labor laws.
    ``(d) Consultation With Administrator for Federal Procurement 
Policy.--In establishing the Regulation and developing the Supplement, 
the Commission shall consult with the Administrator for Federal 
Procurement Policy.
    ``(e) Effective Date.--The Regulation and the Supplement shall take 
effect on the date of publication in the Federal Register, or January 
1, 1999, whichever is earlier.

                ``panama canal board of contract appeals

    ``Sec. 3102. (a) Establishment.--(1) The Secretary of Defense, in 
consultation with the Commission, shall establish a board of contract 
appeals, to be known as the Panama Canal Board of Contract Appeals, in 
accordance with section 8 of the Contract Disputes Act of 1978 (41 
U.S.C. 607). Except as otherwise provided by this section, the Panama 
Canal Board of Contract Appeals (in this section referred to as the 
`Board') shall be subject to the Contract Disputes Act of 1978 (41 
U.S.C. 601 et seq.) in the same manner as any other agency board of 
contract appeals established under that Act.
    ``(2) The Board shall consist of three members. At least one member 
of the Board shall be licensed to practice law in the Republic of 
Panama. Individuals appointed to the Board shall take an oath of 
office, the form of which shall be prescribed by the Secretary of 
Defense.
    ``(b) Exclusive Jurisdiction To Decide Appeals.--Notwithstanding 
section 10(a)(1) of the Contract Disputes Act of 1978 (41 U.S.C. 
609(a)(1)) or any other provision of law, the Board shall have 
exclusive jurisdiction to decide an appeal from a decision of a 
contracting officer under section 8(d) of such Act (41 U.S.C. 607(d)).
    ``(c) Exclusive Jurisdiction To Decide Protests.--The Board shall 
decide protests submitted to it under this subsection by interested 
parties in accordance with subchapter V of title 31, United States 
Code. Notwithstanding section 3556 of that title, section 1491(b) of 
title 28, United States Code, and any other provision of law, the Board 
shall have exclusive jurisdiction to decide such protests. For purposes 
of this subsection--
            ``(1) except as provided in paragraph (2), each reference 
        to the Comptroller General in sections 3551 through 3555 of 
        title 31, United States Code, is deemed to be a reference to 
        the Board;
            ``(2) the reference to the Comptroller General in section 
        3553(d)(3)(C)(ii) of such title is deemed to be a reference to 
        both the Board and the Comptroller General;
            ``(3) the report required by paragraph (1) of section 
        3554(e) of such title shall be submitted to the Comptroller 
        General as well as the committees listed in such paragraph;
            ``(4) the report required by paragraph (2) of such section 
        shall be submitted to the Comptroller General as well as 
        Congress; and
            ``(5) section 3556 of such title shall not apply to the 
        Board, but nothing in this subsection shall affect the right of 
        an interested party to file a protest with the appropriate 
        contracting officer.
    ``(d) Procedures.--The Board shall prescribe such procedures as may 
be necessary for the expeditious decision of appeals and protests under 
subsections (b) and (c).
    ``(e) Commencement.--The Board shall begin to function as soon as 
it has been established and has prescribed procedures under subsection 
(d), but not later than January 1, 1999.
    ``(f) Transition.--The Board shall have jurisdiction under 
subsection (b) and (c) over any appeals and protests filed on or after 
the date on which the Board begins to function. Any appeals and 
protests filed before such date shall remain before the forum in which 
they were filed.
    ``(g) Other Functions.--The Board may perform functions similar to 
those described in this section for such other matters or activities of 
the Commission as the Commission may determine and in accordance with 
regulations prescribed by the Commission.''.

SEC. 3542. TRANSACTIONS WITH THE PANAMA CANAL AUTHORITY.

    Section 1342 (22 U.S.C. 3752) is amended--
            (1) by designating the text of the section as subsection 
        (a); and
            (2) by adding at the end the following new subsections:
    ``(b) The Commission may provide office space, equipment, supplies, 
personnel, and other in-kind services to the Panama Canal Authority on 
a nonreimbursable basis.
    ``(c) Any executive department or agency of the United States may, 
on a reimbursable basis, provide to the Panama Canal Authority 
materials, supplies, equipment, work, or services requested by the 
Panama Canal Authority, at such rates as may be agreed upon by that 
department or agency and the Panama Canal Authority.''.

SEC. 3543. TIME LIMITATIONS ON FILING OF CLAIMS FOR DAMAGES.

    (a) Filing of Administrative Claims With Commission.--Sections 
1411(a) (22 U.S.C. 3771(a)) and 1412 (22 U.S.C. 3772) are each amended 
in the last sentence by striking out ``within 2 years after'' and all 
that follows through ``of 1985,'' and inserting in lieu thereof 
``within one year after the date of the injury or the date of the 
enactment of the Panama Canal Transition Facilitation Act of 1997,''.
    (b) Filing of Judicial Actions.--The penultimate sentence of 
section 1416 (22 U.S.C. 3776) is amended--
            (1) by striking out ``one year'' the first place it appears 
        and inserting in lieu thereof ``180 days''; and
            (2) by striking out ``claim, or'' and all that follows 
        through ``of 1985,'' and inserting in lieu thereof ``claim or 
        the date of the enactment of the Panama Canal Transition 
        Facilitation Act of 1997,''.

SEC. 3544. TOLLS FOR SMALL VESSELS.

    Section 1602(a) (22 U.S.C. 3792(a)) is amended--
            (1) in the first sentence, by striking out ``supply ships, 
        and yachts'' and inserting in lieu thereof ``and supply 
        ships''; and
            (2) by adding at the end the following new sentence: 
        ``Tolls for small vessels (including yachts), as defined by the 
        Commission, may be set at rates determined by the Commission 
        without regard to the preceding provisions of this 
        subsection.''.

SEC. 3545. DATE OF ACTUARIAL EVALUATION OF FECA LIABILITY.

    Section 5(a) of the Panama Canal Commission Compensation Fund Act 
of 1988 (22 U.S.C. 3715c(a)) is amended by striking out ``Upon the 
termination of the Panama Canal Commission'' and inserting in lieu 
thereof ``By March 31, 1998''.

SEC. 3546. APPOINTMENT OF NOTARIES PUBLIC.

    Section 1102a (22 U.S.C. 3612a) is amended--
            (1) by redesignating subsection (g) as subsection (h); and
            (2) by inserting after subsection (f) the following new 
        subsection:
    ``(g)(1) The Commission may appoint any United States citizen to 
have the general powers of a notary public to perform, on behalf of 
Commission employees and their dependents outside the United States, 
any notarial act that a notary public is required or authorized to 
perform within the United States. Unless an earlier expiration is 
provided by the terms of the appointment, any such appointment shall 
expire three months after the Canal Transfer Date.
    ``(2) Every notarial act performed by a person acting as a notary 
under paragraph (1) shall be as valid, and of like force and effect 
within the United States, as if executed by or before a duly authorized 
and competent notary public in the United States.
    ``(3) The signature of any person acting as a notary under 
paragraph (1), when it appears with the title of that person's office, 
is prima facie evidence that the signature is genuine, that the person 
holds the designated title, and that the person is authorized to 
perform a notarial act.''.

SEC. 3547. COMMERCIAL SERVICES.

    Section 1102b (22 U.S.C. 3612b) is amended by adding at the end the 
following new subsection:
    ``(e) The Commission may conduct and promote commercial activities 
related to the management, operation, or maintenance of the Panama 
Canal. Any such commercial activity shall be carried out consistent 
with the Panama Canal Treaty of 1977 and related agreements.''.

SEC. 3548. TRANSFER FROM PRESIDENT TO COMMISSION OF CERTAIN REGULATORY 
              FUNCTIONS RELATING TO EMPLOYMENT CLASSIFICATION APPEALS.

    Sections 1221(a) and 1222(a) (22 U.S.C. 3661(a), 3662(a)) are 
amended by striking out ``President'' and inserting in lieu thereof 
``Commission''.

SEC. 3549. ENHANCED PRINTING AUTHORITY.

    Section 1306 (22 U.S.C. 3714b) is amended by striking out ``Section 
501'' and inserting in lieu thereof ``Sections 501 through 517 and 1101 
through 1123''.

SEC. 3550. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Clerical Amendments.--The table of contents in section 1 is 
amended--
            (1) by striking out the item relating to section 1210 and 
        inserting in lieu thereof the following:

``Sec. 1210. Air transportation.'';
            (2) by striking out the items relating to sections 1215, 
        1219, and 1225;
            (3) by inserting after the item relating to section 1232 
        the following new item:

``Sec. 1233. Transition separation incentive payments.'';
        and
            (4) by inserting after the item relating to the heading of 
        title III the following:

                        ``Chapter 1--Procurement

``Sec. 3101. Procurement system.
``Sec. 3102. Panama Canal Board of Contract Appeals.''.
    (b) Amendment To Reflect Prior Change in Compensation of 
Administrator.--Section 5315 of title 5, United States Code, is amended 
by striking out the following:
            ``Administrator of the Panama Canal Commission.''.
    (c) Amendments To Reflect Change in Travel and Transportation 
Expenses Authority.--(1) Section 5724(a)(3) of title 5, United States 
Code, is amended by striking out ``, the Commonwealth of Puerto Rico,'' 
and all that follows through ``Panama Canal Act of 1979'' and inserting 
in lieu thereof ``or the Commonwealth of Puerto Rico''.
    (2) Section 5724a(j) of such title is amended--
            (A) by inserting ``and'' after ``Northern Mariana 
        Islands,''; and
            (B) by striking out ``United States, and'' and all that 
        follows through the period at the end and inserting in lieu 
        thereof ``United States.''.
    (3) The amendments made by this subsection shall take effect on 
January 1, 1999.
    (d) Miscellaneous Technical Amendments.--
            (1) Section 3(b) (22 U.S.C. 3602(b)) is amended by striking 
        out ``the Canal Zone Code'' and all that follows through 
        ``other laws'' and inserting in lieu thereof ``laws of the 
        United States and regulations issued pursuant to such laws''.
            (2)(A) The following provisions are each amended by 
        striking out ``the effective date of this Act'' and inserting 
        in lieu thereof ``October 1, 1979'': sections 3(b), 3(c), 
        1112(b), and 1321(c)(1).
            (B) Section 1321(c)(2) is amended by striking out ``such 
        effective date'' and inserting in lieu thereof ``October 1, 
        1979''.
            (C) Section 1231(c)(3)(A) (22 U.S.C. 3671(c)(3)(A)) is 
        amended by striking out ``the day before the effective date of 
        this Act'' and inserting in lieu thereof ``September 30, 
        1979''.
            (3) Section 1102a(h), as redesignated by section 
        3546(a)(1), is amended by striking out ``section 1102B'' and 
        inserting in lieu thereof ``section 1102b''.
            (4) Section 1110(b)(2) (22 U.S.C. 3620(b)(2)) is amended by 
        striking out ``section 16 of the Act of August 1, 1956 (22 
        U.S.C. 2680a),'' and inserting in lieu thereof ``section 207 of 
        the Foreign Service Act of 1980 (22 U.S.C. 3927)''.
            (5) Section 1212(b)(3) (22 U.S.C. 3652(b)(3)) is amended by 
        striking out ``as last in effect before the effective date of 
        section 3530 of the Panama Canal Act Amendments of 1996'' and 
        inserting in lieu thereof ``as in effect on September 22, 
        1996''.
            (6) Section 1243(c)(2) (22 U.S.C. 3681(c)(2)) is amended by 
        striking out ``retroactivity'' and inserting in lieu thereof 
        ``retroactively''.
            (7) Section 1341(f) (22 U.S.C. 3751(f)) is amended by 
        striking out ``sections 1302(c)'' and inserting in lieu thereof 
        ``sections 1302(b)''.