[Congressional Record Volume 142, Number 114 (Tuesday, July 30, 1996)]
[House]
[Pages H8985-H9368]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

[[Page H8985]]

CONFERENCE REPORT ON H.R. 3230, NATIONAL DEFENSE AUTHORIZATION ACT FOR 
                            FISCAL YEAR 1997

  Mr. KASICH submitted the following conference report and statement on 
the bill (H.R. 3230) to authorize appropriations for fiscal year 1997 
for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe military personnel strengths for such fiscal year for the 
Armed Forces, and for other purposes:

                  Conference Report (H. Rept. 104-724)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendments of the Senate to the bill (H.R. 
     3230) to authorize appropriations for fiscal year 1997 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, having met, after full and free conference, have 
     agreed to recommend and do recommend to their respective 
     Houses as follows:
       That the House recede from its disagreement to the 
     amendment of the Senate to the text of the bill and agree to 
     the same with an amendment as follows:
       In lieu of the matter proposed to be inserted by the Senate 
     amendment, insert the following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``National Defense 
     Authorization Act for Fiscal Year 1997''.

     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.

                       Subtitle B--Army Programs

Sec. 111. Repeal of limitation on procurement of Armed Kiowa Warrior 
              helicopters.
Sec. 112. Multiyear procurement authority for Army programs.
Sec. 113. Bradley TOW 2 Test Program sets.

                       Subtitle C--Navy Programs

Sec. 121. Nuclear attack submarine programs.
Sec. 122. Arleigh Burke class destroyer program.
Sec. 123. EA-6B aircraft reactive jammer program.
Sec. 124. T-39N trainer aircraft for the Navy.
Sec. 125. Penguin missile program.

                     Subtitle D--Air Force Programs

Sec. 131. Repeal of limitation on procurement of F-15E aircraft.
Sec. 132. Modification to multiyear procurement authority for C-17 
              aircraft program.

                       Subtitle E--Other Matters

Sec. 141. Assessments of modernization priorities of the reserve 
              components.
Sec. 142. Destruction of existing stockpile of lethal chemical agents 
              and munitions.
Sec. 143. Extension of authority to carry out Armament Retooling and 
              Manufacturing Support Initiative.

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

              Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for basic and applied research.
Sec. 203. Dual-use technology programs.
Sec. 204. Defense Special Weapons Agency.

    Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Space launch modernization.
Sec. 212. Space-Based Infrared System program.
Sec. 213. Clementine 2 micro-satellite development program.
Sec. 214. Live-fire survivability testing of V-22 Osprey aircraft.
Sec. 215. Live-fire survivability testing of F-22 aircraft.
Sec. 216. Limitation on funding for F-16 tactical manned reconnaissance 
              aircraft.
Sec. 217. Cost analysis of F-22 aircraft program.
Sec. 218. F-22 aircraft program reports.
Sec. 219. Cost-benefit analysis of F/A-18E/F aircraft program.
Sec. 220. Joint Advanced Strike Technology (JAST) program.
Sec. 221. Unmanned aerial vehicles.
Sec. 222. High altitude endurance unmanned aerial reconnaissance 
              system.
Sec. 223. Cyclone class patrol craft self-defense.
Sec. 224. One-year extension of deadline for delivery of Enhanced Fiber 
              Optic Guided Missile (EFOG-M) system.
Sec. 225. Hydra-70 rocket product improvement program.
Sec. 226. Federally funded research and development centers.
Sec. 227. Demilitarization of conventional munitions, rockets, and 
              explosives.
Sec. 228. Research activities of the Defense Advanced Research Projects 
              Agency relating to chemical and biological warfare 
              defense technology.
Sec. 229. Certification of capability of United States to prevent 
              illegal importation of nuclear, biological, or chemical 
              weapons.
Sec. 230. Nonlethal weapons and technologies programs.
Sec. 231. Counterproliferation support program.

             Subtitle C--Ballistic Missile Defense Programs

Sec. 241. Funding for ballistic missile defense programs for fiscal 
              year 1997.

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Sec. 242. Certification of capability of United States to defend 
              against single ballistic missile.
Sec. 243. Report on ballistic missile defense and proliferation.
Sec. 244. Revision to annual report on ballistic missile defense 
              program.
Sec. 245. Report on Air Force National Missile Defense Plan.
Sec. 246. Capability of National Missile Defense system.
Sec. 247. Actions to limit adverse effects on private sector employment 
              of establishment of National Missile Defense Joint 
              Program Office.
Sec. 248. ABM Treaty defined.

                       Subtitle D--Other Matters

Sec. 261. Maintenance and repair at Air Force installations.
Sec. 262. Report relating to Small Business Innovation Research 
              Program.
Sec. 263. Amendment to University Research Initiative Support program.
Sec. 264. Amendments to Defense Experimental Program To Stimulate 
              Competitive Research.
Sec. 265. Elimination of report on the use of competitive procedures 
              for the award of certain contracts to colleges and 
              universities.
Sec. 266. Pilot program for transfer of defense technology information 
              to private industry.
Sec. 267. Research under transactions other than contracts and grants.
Sec. 268. Desalting technologies.
Sec. 269. Evaluation of digital video network equipment used in Olympic 
              games.
Sec. 270. Annual joint warfighting science and technology plan.

         Subtitle E--National Oceanographic Partnership Program

Sec. 281. Findings.
Sec. 282. National Oceanographic Partnership Program.

                  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. Civil Air Patrol Corporation.
Sec. 306. Availability of additional funds for antiterrorism 
              activities.
Sec. 307. Nonlethal weapons capabilities.
Sec. 308. SR-71 contingency reconnaissance force.

                   Subtitle B--Depot-Level Activities

Sec. 311. Extension of authority for aviation depots and naval 
              shipyards to engage in defense-related production and 
              services.
Sec. 312. Test programs for modernization-through-spares.

                  Subtitle C--Environmental Provisions

Sec. 321. Defense contractors covered by requirement for reports on 
              contractor reimbursement costs for response actions.
Sec. 322.Establishment of separate environmental restoration accounts 
              for each military department.
Sec. 323. Payment of stipulated penalties assessed under CERCLA.
Sec. 324. Shipboard solid waste control.
Sec. 325. Authority to develop and implement land use plans for defense 
              environmental restoration program.
Sec. 326. Pilot program to test alternative technology for limiting air 
              emissions during shipyard blasting and coating 
              operations.
Sec. 327. Agreements for services of other agencies in support of 
              environmental technology certification.
Sec. 328. Repeal of redundant notification and consultation 
              requirements regarding remedial investigations and 
              feasibility studies at certain installations to be closed 
              under the base closure laws.
Sec. 329. Authority for agreements with Indian tribes for services 
              under environmental restoration program.
Sec. 330. Authority to withhold listing of Federal facilities on 
              National Priorities List.
Sec. 331. Clarification of meaning of uncontaminated property for 
              purposes of transfer by the United States.
Sec. 332. Conservation and cultural activities.
Sec. 333. Navy program to monitor ecological effects of organotin.
Sec. 334. Authority to transfer contaminated Federal property before 
              completion of required response actions.

  Subtitle D--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 341. Contracts with other agencies to provide or obtain goods and 
              services to promote efficient operation and management of 
              exchanges and morale, welfare, and recreation activities.
Sec. 342. Noncompetitive procurement of brand-name commercial items for 
              resale in commissary stores.
Sec. 343. Prohibition of sale or rental of sexually explicit material.

     Subtitle E--Performance of Functions by Private-Sector Sources

Sec. 351. Extension of requirement for competitive procurement of 
              printing and duplication services.
Sec. 352. Reporting requirements under demonstration project for 
              purchase of fire, security, police, public works, and 
              utility services from local government agencies.

                       Subtitle F--Other Matters

Sec. 361. Authority for use of appropriated funds for recruiting 
              functions.
Sec. 362. Training of members of the uniformed services at non-
              government facilities.
Sec. 363. Requirement for preparation of plan for improved operation of 
              working-capital funds and effect of failure to produce an 
              approved plan.
Sec. 364. Increase in capital asset threshold under Defense Business 
              Operations Fund.
Sec. 365. Expansion of authority to donate unusable food.
Sec. 366. Assistance to committees involved in inauguration of the 
              President.
Sec. 367. Department of Defense support for sporting events.
Sec. 368. Storage of motor vehicle in lieu of transportation.
Sec. 369. Security protections at Department of Defense facilities in 
              National Capital Region.
Sec. 370. Administration of midshipmen's store and other naval academy 
              support activities as nonappropriated fund 
              instrumentality.
Sec. 371. Reimbursement under agreement for instruction of civilian 
              students at Foreign Language Institute of the Defense 
              Language Institute.
Sec. 372. Assistance to local educational agencies that benefit 
              dependents of members of the Armed Forces and Department 
              of Defense civilian employees.
Sec. 373. Renovation of building for Defense Finance and Accounting 
              Service Center, Fort Benjamin Harrison, Indiana.
Sec. 374. Food donation pilot program at service academies.
Sec. 375. Authority of Air National Guard to provide certain services 
              at Lincoln Municipal Airport, Lincoln, Nebraska.
Sec. 376. Technical amendment regarding Impact Aid program.

              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.
Sec. 403. Authorized strengths for commissioned officers on active duty 
              in grades of major, lieutenant colonel, and colonel and 
              navy grades of lieutenant commander, commander, and 
              captain.
Sec. 404. Extension of requirement for recommendations regarding 
              appointments to joint 4-star officer positions.
Sec. 405. Increase in authorized number of general officers on active 
              duty in the Marine Corps.

                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for reserves on active duty in support of the 
              Reserves.
Sec. 413. End strengths for military technicians.
Sec. 414. Assurance of continued assignment of military personnel to 
              serve in Selective Service System.

              Subtitle C--Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Grade of Chief of Naval Research.
Sec. 502. Chief and assistant chief of Army Nurse Corps and Air Force 
              Nurse Corps.
Sec. 503. Navy spot promotion authority for certain lieutenants with 
              critical skills.
Sec. 504. Time for award of degrees by unaccredited educational 
              institutions for graduates to be considered educationally 
              qualified for appointment as Reserve officers in grade O-
              3.
Sec. 505. Exception to baccalaureate degree requirement for appointment 
              in the Naval Reserve in grades above O-2.
Sec. 506. Chief warrant officer promotions.
Sec. 507. Service credit for senior ROTC cadets and midshipmen in 
              simultaneous membership program.
Sec. 508. Continuation on active status for certain Reserve officers of 
              the Air Force.
Sec. 509. Reports on response to recommendations concerning 
              improvements to Department of Defense joint manpower 
              process.

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Sec. 510. Frequency of reports to Congress on joint officer management 
              policies.

                 Subtitle B--Enlisted Personnel Policy

Sec. 511. Career service reenlistments for members with at least 10 
              years of service.
Sec. 512. Authority to extend period for entry on active duty under the 
              delayed entry program.

                   Subtitle C--Activation and Recall

Sec. 521. Limitations on recall of retired members to active duty.
Sec. 522. Clarification of definition of active status.
Sec. 523. Limitation of requirement for physical examinations of 
              members of National Guard called into Federal service.

                Subtitle D--Reserve Component Retirement

Sec. 531. Increase in annual limit on days of inactive duty training 
              creditable toward reserve retirement.
Sec. 532. Retirement of reserve enlisted members who qualify for active 
              duty retirement after administrative reduction in 
              enlisted grade.
Sec. 533. Authority for a Reserve on active duty to waive retirement 
              sanctuary.
Sec. 534. Eligibility of Reserves for disability retirement.

              Subtitle E--Other Reserve Component Matters

Sec. 541. Training for Reserves on active duty in support of the 
              Reserves.
Sec. 542. Eligibility for enrollment in Ready Reserve mobilization 
              income insurance program.
Sec. 543. Reserve credit for participation in Health Professions 
              Scholarship and Financial Assistance Program.
Sec. 544. Amendments to Reserve Officer Personnel Management Act 
              provisions.
Sec. 545. Report on number of advisers in active component support of 
              Reserves pilot program.
Sec. 546. Sense of Congress and report regarding reemployment rights 
              for mobilized reservists employed in foreign countries.
Sec. 547. Payment of premiums under Mobilization Income Insurance 
              Program.

                 Subtitle F--Officer Education Programs

Sec. 551. Oversight and management of Senior Reserve Officers' Training 
              Corps program.
Sec. 552. Prohibition on reorganization of Army ROTC cadet command or 
              termination of senior ROTC units pending report on ROTC.
Sec. 553. Pilot program to test expansion of ROTC program to include 
              graduate students.
Sec. 554. Demonstration project for instruction and support of Army 
              ROTC units by members of the Army Reserve and National 
              Guard.
Sec. 555. Extension of maximum age for appointment as a cadet or 
              midshipman in the Senior Reserve Officers' Training Corps 
              and the service academies.
Sec. 556. Expansion of eligibility for education benefits to include 
              certain Reserve Officers' Training Corps (ROTC) 
              participants.
Sec. 557. Comptroller General report on cost and policy implications of 
              permitting up to five percent of service academy 
              graduates to be assigned directly to Reserve duty upon 
              graduation.

                   Subtitle G--Decorations and Awards

Sec. 561. Authority for award of Medal of Honor to certain African 
              American soldiers who served during World War II.
Sec. 562. Waiver of time limitations for award of certain decorations 
              to specified persons.
Sec. 563. Replacement of certain American Theater Campaign Ribbons.

                       Subtitle H--Other Matters

Sec. 571. Hate crimes in the military.
Sec. 572. Disability coverage for members granted excess leave for 
              educational or emergency purposes.
Sec. 573. Clarification of authority of a reserve judge advocate to act 
              as a military notary public when not in a duty status.
Sec. 574. Panel on jurisdiction of courts-martial for the National 
              Guard when not in Federal service.
Sec. 575. Authority to expand law enforcement placement program to 
              include firefighters.
Sec. 576. Improvements to program to assist separated military and 
              civilian personnel to obtain employment as teachers or 
              teachers' aides.
Sec. 577. Retirement at grade to which selected for promotion when a 
              physical disability is found at any physical examination.
Sec. 578. Revisions to missing persons authorities.

      Subtitle I--Commissioned Corps of the Public Health Service

Sec. 581. Applicability to Public Health Service of prohibition on 
              crediting cadet or midshipmen service at the service 
              academies.
Sec. 582. Exception to strength limitations for Public Health Service 
              officers assigned to the Department of Defense.
Sec. 583. Authority to provide legal assistance to Public Health 
              Service officers.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Military pay raise for fiscal year 1997.
Sec. 602. Adjustment of rate of cadet and midshipman pay.
Sec. 603. Pay of senior noncommissioned officers while hospitalized.
Sec. 604. Availability of basic allowance for quarters for certain 
              members without dependents who serve on sea duty.
Sec. 605. Uniform applicability of discretion to deny an election not 
              to occupy Government quarters.
Sec. 606. Establishment of minimum monthly amount of variable housing 
              allowance for high housing cost areas.
Sec. 607. Family separation allowance for members separated by military 
              orders from spouses who are members.
Sec. 608. Waiver of time limitations for claim for pay and allowances.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of certain bonuses and special pay 
              authorities for reserve forces.
Sec. 612. One-year extension of certain bonuses and special pay 
              authorities for nurse officer candidates, registered 
              nurses, and nurse anesthetists.
Sec. 613. One-year extension of authorities relating to payment of 
              other bonuses and special pays.
Sec. 614. Special pay for certain Public Health Service officers.
Sec. 615. Special incentives to recruit and retain dental officers.
Sec. 616. Foreign language proficiency pay for Public Health Service 
              and National Oceanic and Atmospheric Administration 
              officers.

            Subtitle C--Travel and Transportation Allowances

Sec. 621. Allowance in connection with shipping motor vehicle at 
              Government expense.
Sec. 622. Dislocation allowance at a rate equal to two and one-half 
              months basic allowance for quarters.
Sec. 623. Allowance for travel performed in connection with leave 
              between consecutive overseas tours.
Sec. 624. Funding for transportation of household effects of Public 
              Health Service officers.

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

Sec. 631. Effective date for military retiree cost-of-living adjustment 
              for fiscal year 1998.
Sec. 632. Clarification of initial computation of retiree COLAs after 
              retirement.
Sec. 633. Suspension of payment of retired pay of members who are 
              absent from the United States to avoid prosecution.
Sec. 634. Nonsubstantive restatement of Survivor Benefit Plan statute.
Sec. 635. Increases in Survivor Benefit Plan contributions to be 
              effective concurrently with payment of retired pay cost-
              of-living increases.
Sec. 636. Amendments to the Uniformed Services Former Spouses' 
              Protection Act.
Sec. 637. Prevention of circumvention of court order by waiver of 
              retired pay to enhance civil service retirement annuity.
Sec. 638. Administration of benefits for so-called minimum income 
              widows.

                       Subtitle E--Other Matters

Sec. 651. Discretionary allotment of pay, including retired or retainer 
              pay.
Sec. 652. Reimbursement for adoption expenses incurred in adoptions 
              through private placements.
Sec. 653. Waiver of recoupment of amounts withheld for tax purposes 
              from certain separation pay.
Sec. 654. Technical correction clarifying limitation on furnishing 
              clothing or allowances for enlisted National Guard 
              technicians.
Sec. 655. Technical correction to prior authority for payment of back 
              pay to certain persons.
Sec. 656. Compensation for persons awarded prisoner of war medal who 
              did not previously receive compensation as a prisoner of 
              war.
Sec. 657. Payments to certain persons captured and interned by North 
              Vietnam.

                   TITLE VII--HEALTH CARE PROVISIONS

                    Subtitle A--Health Care Services

Sec. 701. Preventive health care screening for colon and prostate 
              cancer.

[[Page H8988]]

Sec. 702. Implementation of requirement for Selected Reserve dental 
              insurance plan.
Sec. 703. Dental insurance plan for military retirees and unremarried 
              surviving spouses and certain other dependents of 
              military retirees.
Sec. 704. Plan for health care coverage for children with medical 
              conditions caused by parental exposure to chemical 
              munitions while serving as members of the Armed Forces.

                      Subtitle B--TRICARE Program

Sec. 711. CHAMPUS payment limits for TRICARE prime enrollees.
Sec. 712. Improved information exchange between military treatment 
              facilities and TRICARE program contractors.
Sec. 713. Plans for medicare subvention demonstration programs.

          Subtitle C--Uniformed Services Treatment Facilities

Sec. 721. Definitions.
Sec. 722. Inclusion of designated providers in uniformed services 
              health care delivery system.
Sec. 723. Provision of uniform benefit by designated providers.
Sec. 724. Enrollment of covered beneficiaries.
Sec. 725. Application of CHAMPUS payment rules.
Sec. 726. Payments for services.
Sec. 727. Repeal of superseded authorities.

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

Sec. 731. Authority to waive CHAMPUS exclusion regarding nonmedically 
              necessary treatment in connection with certain clinical 
              trials.
Sec. 732. Exception to maximum allowable payments to individual health-
              care providers under CHAMPUS.
Sec. 733. Codification of annual authority to credit CHAMPUS refunds to 
              current year appropriation.
Sec. 734. Exceptions to requirements regarding obtaining 
              nonavailability-of-health-care statements.
Sec. 735. Enhancement of third-party collection and secondary payer 
              authorities under CHAMPUS.

                       Subtitle E--Other Matters

Sec. 741. Alternatives to active duty service obligation under Armed 
              Forces Health Professions Scholarship and Financial 
              Assistance program and Uniformed Services University of 
              the Health Sciences.
Sec. 742. External peer review for defense health program extramural 
              medical research involving human subjects.
Sec. 743. Independent research regarding Gulf War syndrome.
Sec. 744. Comptroller General review of health care activities of 
              Department of Defense relating to Gulf War illnesses.
Sec. 745. Report regarding specialized treatment facility program.
Sec. 746. Study of means of ensuring uniformity in provision of medical 
              and dental care for members of reserve components.
Sec. 747. Sense of Congress regarding tax treatment of Armed Forces 
              Health Professions Scholarship and Financial Assistance 
              program.

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

                   Subtitle A--Acquisition Management

Sec. 801. Procurement technical assistance programs.
Sec. 802. Extension of pilot mentor-protege program.
Sec. 803. Authority to waive certain requirements for defense 
              acquisition pilot programs.
Sec. 804. Modification of authority to carry out certain prototype 
              projects.
Sec. 805. Increase in threshold amounts for major systems.
Sec. 806. Revisions in information required to be included in selected 
              acquisition reports.
Sec. 807. Increase in simplified acquisition threshold for humanitarian 
              or peacekeeping operations.
Sec. 808. Expansion of audit reciprocity among Federal agencies to 
              include post-award audits.
Sec. 809. Excessive compensation of certain contractor personnel.
Sec. 810. Exception to prohibition on procurement of foreign goods.

                       Subtitle B--Other Matters

Sec. 821. Prohibition on release of contractor proposals under Freedom 
              of Information Act.
Sec. 822. Amendments relating to reports on procurement regulatory 
              activity.
Sec. 823. Amendment of multiyear limitation on contracts for 
              inspection, maintenance, and repair.
Sec. 824. Streamlined notice requirements to contractors and employees 
              regarding termination or substantial reduction in 
              contracts under major defense programs.
Sec. 825. Repeal of notice requirements for substantially or seriously 
              affected parties in downsizing efforts.
Sec. 826. Study of effectiveness of defense mergers.
Sec. 827. Annual report relating to Buy American Act.
Sec. 828. Foreign environmental technology.
Sec. 829. Assessment of national defense technology and industrial base 
              and dependency of base on supplies available only from 
              foreign countries.
Sec. 830. Expansion of report on implementation of automated 
              information systems to include additional matters 
              regarding information resources management.
Sec. 831. Year 2000 software conversion.
Sec. 832. Procurement from firms in industrial base for production of 
              small arms.
Sec. 833. Cable television franchise agreements.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

                      Subtitle A--General Matters

Sec. 901. Repeal of previously enacted reduction in number of statutory 
              positions in Office of the Secretary of Defense.
Sec. 902. Additional required reduction in defense acquisition 
              workforce.
Sec. 903. Reduction of personnel assigned to Office of the Secretary of 
              Defense.
Sec. 904. Report on military department headquarters staffs.
Sec. 905. Matters to be considered in next assessment of current 
              missions, responsibilities, and force structure of the 
              unified combatant commands.
Sec. 906. Transfer of authority to control transportation systems in 
              time of war.
Sec. 907. Codification of requirements relating to continued operation 
              of the Uniformed Services University of the Health 
              Sciences.
Sec. 908. Joint Requirements Oversight Council.
Sec. 909. Membership of the Ammunition Storage Board.
Sec. 910. Removal of Secretary of the Army from membership on the 
              Foreign Trade Zone Board.
Sec. 911. Composition of aircraft accident investigation boards.
Sec. 912. Mission of the White House Communications Agency.

                   Subtitle B--Force Structure Review

Sec. 921. Short title.
Sec. 922. Findings.
Sec. 923. Quadrennial Defense Review.
Sec. 924. National Defense Panel.
Sec. 925. Postponement of deadlines.
Sec. 926. Definitions.

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Incorporation of classified annex.
Sec. 1003. Authority for obligation of certain unauthorized fiscal year 
              1996 defense appropriations.
Sec. 1004. Authorization of prior emergency supplemental appropriations 
              for fiscal year 1996.
Sec. 1005. Format for budget requests for Navy/Marine Corps and Air 
              Force ammunition accounts.
Sec. 1006. Format for annual budget requests for Defense Airborne 
              Reconnaissance Program.
Sec. 1007. Limitation on use of Department of Defense funds transferred 
              to the Coast Guard.
Sec. 1008. Fisher House Trust Fund for the Department of the Navy.
Sec. 1009. Designation and liability of disbursing and certifying 
              officials for the Coast Guard.
Sec. 1010. Authority to suspend or terminate collection actions against 
              deceased members of the Coast Guard.
Sec. 1011. Department of Defense disbursing official check cashing and 
              exchange transactions.

                Subtitle B--Naval Vessels and Shipyards

Sec. 1021. Repeal of requirement for continuous applicability of 
              contracts for phased maintenance of AE class ships.
Sec. 1022. Funding for second and third maritime prepositioning ships 
              out of National Defense Sealift Fund.
Sec. 1023. Transfer of certain obsolete tugboats of the Navy.
Sec. 1024. Transfer of U.S.S. Drum to city of Vallejo, California.
Sec. 1025. Sense of Congress concerning USS LCS 102 (LSSL 102).

                  Subtitle C--Counter-Drug Activities

Sec. 1031. Authority to provide additional support for counter-drug 
              activities of Mexico.
Sec. 1032. Availability of funds for certain drug interdiction and 
              counter-drug activities.
Sec. 1033. Transfer of excess personal property to support law 
              enforcement activities.
Sec. 1034. Sale by Federal departments or agencies of chemicals used to 
              manufacture controlled substances.

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                    Subtitle D--Reports and Studies

Sec. 1041. Annual report on Operation Provide Comfort and Operation 
              Enhanced Southern Watch.
Sec. 1042. Annual report on emerging operational concepts.
Sec. 1043. Report on Department of Defense military child care 
              programs.
Sec. 1044. Report on Department of Defense military youth programs.
Sec. 1045.  Quarterly reports regarding coproduction agreements.
Sec. 1046.  Report on witness interview procedures for Department of 
              Defense criminal investigations.
Sec. 1047.  Report on military readiness requirements of the Armed 
              Forces.
Sec. 1048.  Report on NATO enlargement.

         Subtitle E--Management of Armed Forces Retirement Home

Sec. 1051. Retirement Home Boards of Directors.
Sec. 1052. Acceptance of uncompensated services.
Sec. 1053. Disposal of tract of real property in the District of 
              Columbia.

                       Subtitle F--Other Matters

Sec. 1061. Policy on protection of national information infrastructure 
              against strategic attack.
Sec. 1062. Information systems security program.
Sec. 1063. Authority to accept services from foreign governments and 
              international organizations for defense purposes.
Sec. 1064. Prohibition on collection and release of detailed satellite 
              imagery relating to Israel.
Sec. 1065. George C. Marshall European Center for Strategic Security 
              Studies.
Sec. 1066. Authority to award to civilian participants in the defense 
              of Pearl Harbor the Congressional Medal previously 
              authorized only for military participants in the defense 
              of Pearl Harbor.
Sec. 1067. Assimilative crimes authority for traffic offenses on 
              military installations.
Sec. 1068. Uniform Code of Military Justice amendments.
Sec. 1069. Punishment of interstate stalking.
Sec. 1070. Participation of members, dependents, and other persons in 
              crime prevention efforts at installations.
Sec. 1071. Display of State flags at installations and facilities of 
              the Department of Defense.
Sec. 1072. Treatment of excess operational support airlift aircraft.
Sec. 1073. Correction to statutory references to certain Department of 
              Defense organizations.
Sec. 1074. Technical and clerical amendments.
Sec. 1075. Modification to third-party liability to United States for 
              tortious infliction of injury or disease on members of 
              the uniformed services.
Sec. 1076. Chemical Stockpile Emergency Preparedness Program.
Sec. 1077. Exemption from requirements applicable to savings 
              associations for certain savings institutions serving 
              military personnel.
Sec. 1078. Improvements to National Security Education Program.
Sec. 1079. Aviation and vessel war risk insurance.
Sec. 1080. Designation of memorial as National D-Day Memorial.
Sec. 1081. Sense of Congress regarding semiconductor trade agreement 
              between United States and Japan.
Sec. 1082. Agreements for exchange of defense personnel between the 
              United States and foreign countries.
Sec. 1083. Sense of Senate regarding Bosnia and Herzegovina.
Sec. 1084. Defense burdensharing.

             TITLE XI--NATIONAL IMAGERY AND MAPPING AGENCY

Sec. 1101. Short title.
Sec. 1102. Findings.
Sec. 1103. Role of Director of Central Intelligence in appointment and 
              evaluation of certain intelligence officials.

                  Subtitle A--Establishment of Agency

Sec. 1111. Establishment.
Sec. 1112. Missions and authority.
Sec. 1113. Transfers of personnel and assets.
Sec. 1114. Compatibility with authority under the National Security Act 
              of 1947.
Sec. 1115. Creditable civilian service for career conditional employees 
              of the Defense Mapping Agency.
Sec. 1116. Saving provisions.
Sec. 1117. Definitions.
Sec. 1118. Authorization of appropriations.

         Subtitle B--Conforming Amendments and Effective Dates

Sec. 1121. Redesignation and repeals.
Sec. 1122. Reference amendments.
Sec. 1123. Headings and clerical amendments.
Sec. 1124. Effective date.

                TITLE XII--RESERVE FORCES REVITALIZATION

Sec. 1201. Short title.
Sec. 1202. Purpose.

                Subtitle A--Reserve Component Structure

Sec. 1211. Reserve component commands.
Sec. 1212. Reserve component chiefs.
Sec. 1213. Review of active duty and reserve general and flag officer 
              authorizations.
Sec. 1214. Guard and reserve technicians.

              Subtitle B--Reserve Component Accessibility

Sec. 1231. Report to Congress on measures to improve National Guard and 
              reserve ability to respond to emergencies.
Sec. 1232. Report to Congress concerning tax incentives for employers 
              of members of reserve components.
Sec. 1233. Report to Congress concerning income insurance program for 
              activated reservists.
Sec. 1234. Report to Congress concerning small business loans for 
              members released from reserve service during contingency 
              operations.

                 Subtitle C--Reserve Forces Sustainment

Sec. 1251. Report concerning tax deductibility of nonreimbursable 
              expenses.
Sec. 1252. Authority to pay transient housing charges for members 
              performing active duty for training.
Sec. 1253. Sense of Congress concerning quarters allowance during 
              service on active duty for training.
Sec. 1254. Sense of Congress concerning military leave policy.
Sec. 1255. Reserve Forces Policy Board.
Sec. 1256. Report on parity of benefits for active duty service and 
              reserve service.
Sec. 1257. Information on proposed funding for the Guard and Reserve 
              components in future-years defense programs.

              TITLE XIII--ARMS CONTROL AND RELATED MATTERS

Subtitle A--Arms Control, Counterproliferation Activities, and Related 
                                Matters

Sec. 1301. Extension of counterproliferation authorities.
Sec. 1302. Limitation on retirement or dismantlement of strategic 
              nuclear delivery systems.
Sec. 1303. Strengthening certain sanctions against nuclear 
              proliferation activities.
Sec. 1304. Authority to pay certain expenses relating to humanitarian 
              and civic assistance for clearance of landmines.
Sec. 1305. Report on military capabilities of People's Republic of 
              China.
Sec. 1306. Presidential report regarding weapons proliferation and 
              policies of the People's Republic of China.
Sec. 1307. United States-People's Republic of China Joint Defense 
              Conversion Commission.
Sec. 1308. Sense of Congress concerning export controls.
Sec. 1309. Counterproliferation Program Review Committee.
Sec. 1310. Sense of Congress concerning assisting other countries to 
              improve security of fissile material.
Sec. 1311. Review by Director of Central Intelligence of National 
              Intelligence Estimate 95-19.

 Subtitle B--Commission to Assess the Ballistic Missile Threat to the 
                             United States

Sec. 1321. Establishment of Commission.
Sec. 1322. Duties of Commission.
Sec. 1323. Report.
Sec. 1324. Powers.
Sec. 1325. Commission procedures.
Sec. 1326. Personnel matters.
Sec. 1327. Miscellaneous administrative provisions.
Sec. 1328. Funding.
Sec. 1329. Termination of the Commission.

         TITLE XIV--DEFENSE AGAINST WEAPONS OF MASS DESTRUCTION

Sec. 1401. Short title.
Sec. 1402. Findings.
Sec. 1403. Definitions.

                   Subtitle A--Domestic Preparedness

Sec. 1411. Response to threats of terrorist use of weapons of mass 
              destruction.
Sec. 1412. Emergency response assistance program.
Sec. 1413. Nuclear, chemical, and biological emergency response.
Sec. 1414. Chemical-biological emergency response team.
Sec. 1415. Testing of preparedness for emergencies involving nuclear, 
              radiological, chemical, and biological weapons.
Sec. 1416. Military assistance to civilian law enforcement officials in 
              emergency situations involving biological or chemical 
              weapons.
Sec. 1417. Rapid response information system.

  Subtitle B--Interdiction of Weapons of Mass Destruction and Related 
                               Materials

Sec. 1421. Procurement of detection equipment United States border 
              security.
Sec. 1422. Extension of coverage of International Emergency Economic 
              Powers Act.
Sec. 1423. Sense of Congress concerning criminal penalties.
Sec. 1424. International border security.

[[Page H8990]]

Subtitle C--Control and Disposition of Weapons of Mass Destruction and 
            Related Materials Threatening the United States

Sec. 1431. Coverage of weapons-usable fissile materials in Cooperative 
              Threat Reduction programs on elimination or 
              transportation of nuclear weapons.
Sec. 1432. Elimination of plutonium production.

    Subtitle D--Coordination of Policy and Countermeasures Against 
              Proliferation of Weapons of Mass Destruction

Sec. 1441. National Coordinator on Nonproliferation.
Sec. 1442. National Security Council Committee on Nonproliferation.
Sec. 1443. Comprehensive preparedness program.
Sec. 1444. Termination.

                       Subtitle E--Miscellaneous

Sec. 1451. Sense of Congress concerning contracting policy.
Sec. 1452. Transfers of allocations among Cooperative Threat Reduction 
              programs.
Sec. 1453. Sense of Congress concerning assistance to states of former 
              Soviet Union.
Sec. 1454. Purchase of low-enriched uranium derived from Russian highly 
              enriched uranium.
Sec. 1455. Sense of Congress concerning purchase, packaging, and 
              transportation of fissile materials at risk of theft.

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

Sec. 1501. Specification of Cooperative Threat Reduction programs.
Sec. 1502. Fiscal year 1997 funding allocations.
Sec. 1503. Prohibition on use of funds for specified purposes.
Sec. 1504. Limitation on use of funds until specified reports are 
              submitted.
Sec. 1505. Availability of funds.

          TITLE XVI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

  Subtitle A--Miscellaneous Matters Relating to Personnel Management, 
                          Pay, and Allowances

Sec. 1601. Modification of requirement for conversion of military 
              positions to civilian positions.
Sec. 1602. Retention of civilian employee positions at military 
              training bases transferred to National Guard.
Sec. 1603. Clarification of applicability of certain management 
              constraints on major range and test facility base 
              structure.
Sec. 1604. Travel expenses and health care for civilian employees of 
              the Department of Defense abroad.
Sec. 1605. Travel, transportation, and relocation allowances for 
              certain former nonappropriated fund employees.
Sec. 1606. Employment and salary practices applicable to Department of 
              Defense overseas teachers.
Sec. 1607. Employment and compensation of civilian faculty members at 
              certain Department of Defense schools.
Sec. 1608. Reimbursement of Department of Defense domestic dependent 
              school board members for certain expenses.
Sec. 1609. Modification of authority for civilian employees of 
              Department of Defense to participate voluntarily in 
              reductions in force.
Sec. 1610. Wage-board compensatory time off.
Sec. 1611. Liquidation of restored annual leave that remains unused 
              upon transfer of employee from installation being closed 
              or realigned.
Sec. 1612. Waiver of requirement for repayment of Voluntary Separation 
              Incentive pay by former Department of Defense employees 
              reemployed by the Government without pay.
Sec. 1613. Simplification of rules relating to the observance of 
              certain holidays.
Sec. 1614. Revision of certain travel management authorities.
Sec. 1615. Failure to comply with veterans' preference requirements to 
              be treated as a prohibited personnel practice.
Sec. 1616. Pilot programs for defense employees converted to contractor 
              employees due to privatization at closed military 
              installations.

    Subtitle B--Department of Defense Intelligence Personnel Policy

Sec. 1631. Short title.
Sec. 1632. Management of civilian intelligence personnel.
Sec. 1633. Repeal of superseded sections and clerical and conforming 
              amendments.
Sec. 1634. Other personnel management authorities.
Sec. 1635. Effective date.

               TITLE XVII--FEDERAL EMPLOYEE TRAVEL REFORM

Sec. 1701. Short title.

                    Subtitle A--Relocation Benefits

Sec. 1711. Allowance for seeking permanent residence quarters.
Sec. 1712. Temporary quarters subsistence expenses allowance.
Sec. 1713. Modification of residence transaction expenses allowance.
Sec. 1714. Authority to pay for property management services.
Sec. 1715. Authority to transport a privately owned motor vehicle 
              within the continental United States.
Sec. 1716. Authority to pay limited relocation allowances to an 
              employee who is performing an extended assignment.
Sec. 1717. Authority to pay a home marketing incentive.
Sec. 1718. Revision and reenactment of additional provisions relating 
              to relocation expenses.

                  Subtitle B--Miscellaneous Provisions

Sec. 1721. Repeal of the long-distance telephone call certification 
              requirement.
Sec. 1722. Transfer of authority to prescribe regulations.
Sec. 1723. Conforming and clerical amendments.
Sec. 1724. Assessment of cost savings.
Sec. 1725. Effective date and issuance of regulations.

     TITLE XVIII--FEDERAL CHARTER FOR THE FLEET RESERVE ASSOCIATION

Sec. 1801. Recognition and grant of Federal charter.
Sec. 1802. Powers.
Sec. 1803. Purposes.
Sec. 1804. Service of process.
Sec. 1805. Membership.
Sec. 1806. Board of directors.
Sec. 1807. Officers.
Sec. 1808. Restrictions.
Sec. 1809. Liability.
Sec. 1810. Maintenance and inspection of books and records.
Sec. 1811. Audit of financial transactions.
Sec. 1812. Annual report.
Sec. 1813. Reservation of right to alter, amend, or repeal charter.
Sec. 1814. Tax-exempt status required as condition of charter.
Sec. 1815. Termination.
Sec. 1816. Definition of State.

            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. Land acquisition, National Ground Intelligence Center, 
              Charlottesville, Virginia.

                            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. Beach replenishment, Naval Air Station, North Island, 
              California.

                         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. Elimination of authority to carry out fiscal year 1995 
              project, Spangdahlem Air Force Base, Germany.

                      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. Military housing improvement program.
Sec. 2405. Energy conservation projects.
Sec. 2406. Authorization of appropriations, Defense Agencies.
Sec. 2407. Reduction in amounts authorized to be appropriated for 
              fiscal year 1996 Defense Agencies military construction, 
              land acquisition, and military family housing functions.

   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 and funding for construction and improvement 
              of Naval Reserve Centers.
Sec. 2603. Upgrade Air National Guard facilities, Bangor International 
              Airport, Maine.

        TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

Sec. 2701. Expiration of authorizations and amounts required to be 
              specified by law.

[[Page H8991]]

Sec. 2702. Extension of authorizations of certain fiscal year 1994 
              projects.
Sec. 2703. Extension of authorizations of certain fiscal year 1993 
              projects.
Sec. 2704. Extension of authorizations of certain fiscal year 1992 
              projects.
Sec. 2705. Effective date.

                    TITLE XXVIII--GENERAL PROVISIONS

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

Sec. 2801. Increase in certain thresholds for unspecified minor 
              construction projects.
Sec. 2802. Redesignation of North Atlantic Treaty Organization 
              Infrastructure program.
Sec. 2803. Improvements to family housing units.
Sec. 2804. Availability of funds for planning, execution, and 
              administration of contracts for family housing and 
              unaccompanied housing.

            Subtitle B--Defense Base Closure and Realignment

Sec. 2811. Restoration of authority for certain intragovernment 
              transfers under 1988 base closure law.
Sec. 2812. Contracting for certain services at facilities remaining on 
              closed installations.
Sec. 2813. Authority to compensate owners of manufactured housing.
Sec. 2814. Additional purpose for which adjustment and diversification 
              assistance is authorized.
Sec. 2815. Payment of stipulated penalties assessed under CERCLA in 
              connection with Loring Air Force Base, Maine.
Sec. 2816. Plan for utilization, reutilization, or disposal of 
              Mississippi Army Ammunition Plant.

                      Subtitle C--Land Conveyances

                        Part I--Army Conveyances

Sec. 2821. Transfer of lands, Arlington National Cemetery, Arlington, 
              Virginia.
Sec. 2822. Land transfer, Fort Sill, Oklahoma.
Sec. 2823. Land conveyance, Army Reserve Center, Rushville, Indiana.
Sec. 2824. Land conveyance, Army Reserve Center, Anderson, South 
              Carolina.
Sec. 2825. Land conveyance, Army Reserve Center, Montpelier, Vermont.
Sec. 2826. Land conveyance, Crafts Brothers Reserve Training Center, 
              Manchester, New Hampshire.
Sec. 2827. Land conveyance, Pine Bluff Arsenal, Arkansas.
Sec. 2828. Reaffirmation of land conveyances, Fort Sheridan, Illinois.

                       Part II--Navy Conveyances

Sec. 2831. Land transfer, Potomac Annex, District of Columbia.
Sec. 2832. Land exchange, St. Helena Annex, Norfolk Naval Shipyard, 
              Virginia.
Sec. 2833. Land conveyance, Calverton Pine Barrens, Naval Weapons 
              Industrial Reserve Plant, Calverton, New York.
Sec. 2834. Land conveyance, former naval reserve facility, Lewes, 
              Delaware.
Sec. 2835. Modification of land conveyance authority, Naval Reserve 
              Center, Seattle, Washington.
Sec. 2836. Release of condition on reconveyance of transferred land, 
              Guam.
Sec. 2837. Lease to facilitate construction of reserve center, Naval 
              Air Station, Meridian, Mississippi.

                    Part III--Air Force Conveyances

Sec. 2841. Land conveyance, Radar Bomb Scoring Site, Belle Fourche, 
              South Dakota.
Sec. 2842. Conveyance of primate research complex and Air Force-owned 
              chimpanzees, Holloman Air Force Base, New Mexico.

                       Part IV--Other Conveyances

Sec. 2851. Land conveyance, Tatum Salt Dome Test Site, Mississippi.
Sec. 2852. Land conveyance, William Langer Jewel Bearing Plant, Rolla, 
              North Dakota.
Sec. 2853. Land conveyance, Air Force Plant No. 85, Columbus, Ohio.
Sec. 2854. Modification of boundaries of White Sands National Monument 
              and White Sands Missile Range.

                       Subtitle D--Other Matters

Sec. 2861. Authority to grant easements for rights-of-way.
Sec. 2862. Authority to enter into cooperative agreements for the 
              management of cultural resources on military 
              installations.
Sec. 2863. Demonstration project for installation and operation of 
              electric power distribution system at Youngstown Air 
              Reserve Station, Ohio.
Sec. 2864. Renovation of the Pentagon reservation.
Sec. 2865. Plan for repairs and stabilization of the historic district 
              at the Forest Glen Annex of Walter Reed Medical Center, 
              Maryland.
Sec. 2866. Naming of range at Camp Shelby, Mississippi.
Sec. 2867. Designation of Michael O'Callaghan military hospital.
Sec. 2868. Naming of building at the Uniformed Services University of 
              the Health Sciences.

                 TITLE XXIX--MILITARY LAND WITHDRAWALS

     Subtitle A--Fort Carson-Pinon Canyon Military Lands Withdrawal

Sec. 2901. Short title.
Sec. 2902. Withdrawal and reservation of lands at Fort Carson Military 
              Reservation.
Sec. 2903. Withdrawal and reservation of lands at Pinon Canyon Maneuver 
              Site.
Sec. 2904. Maps and legal descriptions.
Sec. 2905. Management of withdrawn lands.
Sec. 2906. Management of withdrawn and acquired mineral resources.
Sec. 2907. Hunting, fishing, and trapping.
Sec. 2908. Termination of withdrawal and reservation.
Sec. 2909. Determination of presence of contamination and effect of 
              contamination.
Sec. 2910. Delegation.
Sec. 2911. Hold harmless.
Sec. 2912. Amendment to Military Lands Withdrawal Act of 1986.
Sec. 2913. Authorization of appropriations.

       Subtitle B--El Centro Naval Air Facility Ranges Withdrawal

Sec. 2921. Short title and definitions.
Sec. 2922. Withdrawal and reservation of lands for El Centro.
Sec. 2923. Maps and legal descriptions.
Sec. 2924. Management of withdrawn lands.
Sec. 2925. Duration of withdrawal and reservation.
Sec. 2926. Continuation of ongoing decontamination activities.
Sec. 2927. Requirements for extension.
Sec. 2928. Early relinquishment of withdrawal.
Sec. 2929. Delegation of authority.
Sec. 2930. Hunting, fishing, and trapping.
Sec. 2931. Hold harmless.

 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. Defense fixed asset acquisition/privatization.
Sec. 3104. Other defense activities.
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. Stockpile stewardship program.
Sec. 3132. Manufacturing infrastructure for nuclear weapons stockpile.
Sec. 3133. Tritium production.
Sec. 3134. Modernization and consolidation of tritium recycling 
              facilities.
Sec. 3135. Production of high explosives.
Sec. 3136. Limitation on use of funds for certain research and 
              development purposes.
Sec. 3137. Prohibition on funding nuclear weapons activities with 
              People's Republic of China.
Sec. 3138. International cooperative stockpile stewardship programs.
Sec. 3139. Temporary authority relating to transfers of defense 
              environmental management funds.
Sec. 3140. Management structure for nuclear weapons production 
              facilities and nuclear weapons laboratories.
Sec. 3141. Accelerated schedule for isolating high-level nuclear waste 
              at the defense waste processing facility, Savannah River 
              Site.
Sec. 3142. Processing and treatment of high-level nuclear waste and 
              spent nuclear fuel rods.
Sec. 3143. Projects to accelerate closure activities at defense nuclear 
              facilities.
Sec. 3144. Payment of costs of operation and maintenance of 
              infrastructure at Nevada Test Site.

                       Subtitle D--Other Matters

Sec. 3151. Report on plutonium pit production and remanufacturing 
              plans.
Sec. 3152. Amendments relating to baseline environmental management 
              reports.
Sec. 3153. Requirement to develop future use plans for environmental 
              management program.
Sec. 3154. Report on Department of Energy liability at Department 
              superfund sites.
Sec. 3155. Requirement for annual five-year budget for the national 
              security programs of the Department of Energy.
Sec. 3156. Requirements for Department of Energy weapons activities 
              budgets for fiscal years after fiscal year 1997.

[[Page H8992]]

Sec. 3157. Repeal of requirement relating to accounting procedures for 
              Department of Energy funds.
Sec. 3158. Update of report on nuclear test readiness postures.
Sec. 3159. Reports on critical difficulties at nuclear weapons 
              laboratories and nuclear weapons production plants.
Sec. 3160. Extension of applicability of notice-and-wait requirement 
              regarding proposed cooperation agreements.
Sec. 3161. Sense of Senate relating to redesignation of defense 
              environmental restoration and waste management program.
Sec. 3162. Commission on maintaining United States nuclear weapons 
              expertise.
Sec. 3163. Sense of Congress regarding reliability and safety of 
              remaining nuclear forces.
Sec. 3164. Study on worker protection at the Mound facility.
Sec. 3165. Fiscal year 1998 funding for Greenville Road Improvement 
              Project, Livermore, California.
Sec. 3166. Fellowship program for development of skills critical to 
              Department of Energy nuclear weapons complex.

    Subtitle E--Defense Nuclear Environmental Cleanup and Management

Sec. 3171. Purpose.
Sec. 3172. Applicability.
Sec. 3173. Site manager.
Sec. 3174. Department of Energy orders.
Sec. 3175. Deployment of technology for remediation of defense nuclear 
              waste.
Sec. 3176. Performance-based contracting.
Sec. 3177. Designation of covered facilities as environmental cleanup 
              demonstration areas.
Sec. 3178. Definitions.
Sec. 3179. Termination.
Sec. 3180. Report.

 Subtitle F--Waste Isolation Pilot Plant Land Withdrawal Act Amendments

Sec. 3181. Short title.
Sec. 3182. Definitions.
Sec. 3183. Management plan.
Sec. 3184. Repeal of test phase and retrieval plans.
Sec. 3185. Test phase activities.
Sec. 3186. Disposal operations.
Sec. 3187. Environmental Protection Agency disposal regulations.
Sec. 3188. Compliance with environmental laws and regulations.
Sec. 3189. Sense of Congress on commencement of emplacement of 
              transuranic waste.
Sec. 3190. Decommissioning of WIPP.
Sec. 3191. Authorizations for economic assistance and miscellaneous 
              payments.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

        Subtitle A--Authorization of Disposals and Use of Funds

Sec. 3301. Definitions.
Sec. 3302. Authorized uses of stockpile funds.
Sec. 3303. Disposal of certain materials in National Defense Stockpile.

                    Subtitle B--Programmatic Change

Sec. 3311. Biennial report on stockpile requirements.
Sec. 3312. Notification requirements.
Sec. 3313. Importation of strategic and critical materials.

                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.
Sec. 3402. Price requirement on sale of certain petroleum during fiscal 
              year 1997.

                  TITLE XXXV--PANAMA CANAL COMMISSION

              Subtitle A--Authorization of Appropriations

Sec. 3501. Short title.
Sec. 3502. Authorization of expenditures.
Sec. 3503. Purchase of vehicles.
Sec. 3504. Expenditures only in accordance with treaties.

           Subtitle B--Amendments to Panama Canal Act of 1979

Sec. 3521. Short title; references.
Sec. 3522. Definitions and recommendation for legislation.
Sec. 3523. Administrator.
Sec. 3524. Deputy Administrator and Chief Engineer.
Sec. 3525. Office of Ombudsman.
Sec. 3526. Appointment and compensation; duties.
Sec. 3527. Applicability of certain benefits.
Sec. 3528. Travel and transportation.
Sec. 3529. Clarification of definition of agency.
Sec. 3530. Panama Canal Employment System; merit and other employment 
              requirements.
Sec. 3531. Employment standards.
Sec. 3532. Repeal of obsolete provision regarding interim application 
              of Canal Zone Merit System.
Sec. 3533. Repeal of provision relating to recruitment and retention 
              remuneration.
Sec. 3534. Benefits based on basic pay.
Sec. 3535. Vesting of general administrative authority of commission.
Sec. 3536. Applicability of certain laws.
Sec. 3537. Repeal of provision relating to transferred or reemployed 
              employees.
Sec. 3538. Administration of special disability benefits.
Sec. 3539. Panama Canal Revolving Fund.
Sec. 3540. Printing.
Sec. 3541. Accounting policies.
Sec. 3542. Interagency services; reimbursements.
Sec. 3543. Postal service.
Sec. 3544. Investigation of accidents or injury giving rise to claim.
Sec. 3545. Operations regulations.
Sec. 3546. Miscellaneous repeals.
Sec. 3547. Exemption from Metric Conversion Act of 1975.
Sec. 3548. Conforming and clerical amendments.
Sec. 3549. Repeal of Panama Canal Code.

     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

                          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.

                       Subtitle B--Army Programs

Sec. 111. Repeal of limitation on procurement of Armed Kiowa Warrior 
              helicopters.
Sec. 112. Multiyear procurement authority for Army programs.
Sec. 113. Bradley TOW 2 Test Program sets.

                       Subtitle C--Navy Programs

Sec. 121. Nuclear attack submarine programs.
Sec. 122. Arleigh Burke class destroyer program.
Sec. 123. EA-6B aircraft reactive jammer program.
Sec. 124. T-39N trainer aircraft for the Navy.
Sec. 125. Penguin missile program.

                     Subtitle D--Air Force Programs

Sec. 131. Repeal of limitation on procurement of F-15E aircraft.
Sec. 132. Modification to multiyear procurement authority for C-17 
              aircraft program.

                       Subtitle E--Other Matters

Sec. 141. Assessments of modernization priorities of the reserve 
              components.
Sec. 142. Destruction of existing stockpile of lethal chemical agents 
              and munitions.
Sec. 143. Extension of authority to carry out Armament Retooling and 
              Manufacturing Support Initiative.
              Subtitle A--Authorization of Appropriations

     SEC. 101. ARMY.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1997 for procurement for the Army as follows:
       (1) For aircraft, $1,314,015,000.
       (2) For missiles, $1,031,829,000.
       (3) For weapons and tracked combat vehicles, 
     $1,409,514,000.
       (4) For ammunition, $1,003,028,000.
       (5) For other procurement, $2,990,240,000.

     SEC. 102. NAVY AND MARINE CORPS.

       (a) Navy.--Funds are hereby authorized to be appropriated 
     for fiscal year 1997 for procurement for the Navy as follows:
       (1) For aircraft, $7,034,926,000.
       (2) For weapons, including missiles and torpedoes, 
     $1,345,408,000.
       (3) For shipbuilding and conversion, $6,193,330,000.
       (4) For other procurement, $2,893,840,000.
       (b) Marine Corps.--Funds are hereby authorized to be 
     appropriated for fiscal year 1997 for procurement for the 
     Marine Corps in the amount of $560,148,000.
       (c) Navy and Marine Corps Ammunition.--Funds are hereby 
     authorized to be appropriated for procurement of ammunition 
     for the Navy and the Marine Corps in the amount of 
     $293,239,000.

     SEC. 103. AIR FORCE.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1997 for procurement for the Air Force as follows:
       (1) For aircraft, $6,764,420,000.
       (2) For missiles, $2,525,875,000.
       (3) For ammunition, $278,302,000.
       (4) For other procurement, $5,814,419,000.

     SEC. 104. DEFENSE-WIDE ACTIVITIES.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1997 for Defense-wide procurement in the amount of 
     $2,008,261,000.

     SEC. 105. RESERVE COMPONENTS.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1997 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, $171,000,000.
       (2) For the Air National Guard, $234,000,000.
       (3) For the Army Reserve, $98,000,000.

[[Page H8993]]

       (4) For the Naval Reserve, $116,000,000.
       (5) For the Air Force Reserve, $94,000,000.
       (6) For the Marine Corps Reserve, $67,000,000.

     SEC. 106. DEFENSE INSPECTOR GENERAL.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1997 for procurement for the Inspector General of the 
     Department of Defense in the amount of $2,000,000.

     SEC. 107. CHEMICAL DEMILITARIZATION PROGRAM.

       There is hereby authorized to be appropriated for fiscal 
     year 1997 the amount of $759,847,000 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 1997 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 
     $269,470,000.
                       Subtitle B--Army Programs

     SEC. 111. REPEAL OF LIMITATION ON PROCUREMENT OF ARMED KIOWA 
                   WARRIOR HELICOPTERS.

       Section 133 the National Defense Authorization Act for 
     Fiscal Years 1990 and 1991 (Public Law 101-189; 103 Stat. 
     1383) is repealed.

     SEC. 112. MULTIYEAR PROCUREMENT AUTHORITY FOR ARMY PROGRAMS.

       (a) Avenger Air Defense Missile System.--Notwithstanding 
     the limitation in subsection (k) of section 2306b of title 
     10, United States Code, relating to the maximum duration of a 
     multiyear contract under the authority of that section, the 
     Secretary of the Army may extend the multiyear contract in 
     effect during fiscal year 1996 for the Avenger Air Defense 
     Missile system through fiscal year 1997 and may award such an 
     extension.
       (b) Army Tactical Missile System.--The Secretary of the 
     Army may, in accordance with section 2306b of title 10, 
     United States Code, enter into a multiyear procurement 
     contract, beginning with the fiscal year 1997 program year, 
     for procurement of the Army Tactical Missile System (Army 
     TACMS).
       (c) Javelin Missile System.--The Secretary of the Army may, 
     in accordance with section 2306b of title 10, United States 
     Code, enter into multiyear procurement contracts for the 
     procurement of the Javelin missile system.

     SEC. 113. BRADLEY TOW 2 TEST PROGRAM SETS.

       Of the funds authorized to be appropriated under section 
     101(3) of the National Defense Authorization Act for Fiscal 
     Year 1996 (Public Law 104-106; 110 Stat. 204), $6,000,000 is 
     available for the procurement of Bradley TOW 2 Test Program 
     sets.
                       Subtitle C--Navy Programs

     SEC. 121. NUCLEAR ATTACK SUBMARINE PROGRAMS.

       (a) Amounts Authorized From SCN Account.--(1) Of the amount 
     authorized to be appropriated by section 102(a)(3) for fiscal 
     year 1997--
       (A) $699,071,000 is available for continued construction of 
     the third vessel (designated SSN-23) in the Seawolf attack 
     submarine class, which shall be the final vessel in that 
     class;
       (B) $296,186,000 is available for long-lead and advance 
     construction and procurement of components for construction 
     of a submarine (previously designated by the Navy as the New 
     Attack Submarine) beginning in fiscal year 1998 to be built 
     by Electric Boat Division; and
       (C) $701,000,000 is available for long-lead and advance 
     construction and procurement of components for construction 
     of a second submarine (previously designated by the Navy as 
     the New Attack Submarine) beginning in fiscal year 1999 to be 
     built by Newport News Shipbuilding.
       (2) In addition to the purposes for which the amounts under 
     subparagraphs (B) and (C) of paragraph (1) are available, 
     such amounts are also available for contracts with Electric 
     Boat Division and Newport News Shipbuilding to carry out the 
     provisions of the ``Memorandum of Agreement Among the 
     Department of the Navy, Electric Boat Corporation (EB) and 
     Newport News Shipbuilding and Drydock Company (NNS) 
     Concerning the New Attack Submarine'', dated April 5, 1996, 
     relating to design data transfer, design improvements, 
     integrated process teams, and updated design base.
       (b) Amounts Authorized From Navy RDT&E Account.--(1) Of the 
     amount authorized to be appropriated by section 201(2), 
     $487,611,000 is available for the design of the submarine 
     previously designated by the Navy as the New Attack 
     Submarine.
       (2)(A) Of the amount authorized to be appropriated by 
     section 201(2), $60,000,000 is available for obligation under 
     contracts with Electric Boat Division and Newport News 
     Shipbuilding and other entities to address the inclusion on 
     future nuclear attack submarines of the core advanced 
     technologies that are identified by the Secretary of Defense 
     (in the report of the Secretary entitled ``Report on Nuclear 
     Attack Submarine Procurement and Submarine Technology'', 
     submitted to Congress on March 26, 1996) as those 
     technologies the maturation of which the Submarine Technology 
     Assessment Panel recommended be addressed in its March 15, 
     1996, final report to the Assistant Secretary of the Navy for 
     Research, Development, and Acquisition, as follows: 
     hydrodynamics, alternative sail designs, advanced arrays, 
     electric drive, external weapons, and active controls and 
     mounts.
       (B) Of the amount available under subparagraph (A), 
     $20,000,000 shall be equally divided between Electric Boat 
     Division and Newport News Shipbuilding for the purpose of 
     ensuring that those shipbuilders are principal participants 
     in the process of addressing the inclusion of technologies 
     referred to in subparagraph (A) on future nuclear attack 
     submarines. Contracts with the shipbuilders under this 
     subparagraph shall provide the shipbuilders with wide 
     latitude to pursue submarine-wide, integrated systems 
     approaches to the inclusion of such technologies. The 
     Secretary of the Navy shall ensure that those shipbuilders 
     have access for such purpose (under procedures prescribed by 
     the Secretary) to the Navy laboratories and the Office of 
     Naval Intelligence and (in accordance with arrangements to be 
     made by the Secretary) to the Defense Advanced Research 
     Projects Agency.
       (3) Of the amount authorized to be appropriated by section 
     201(2), $38,000,000 is available to begin funding those 
     Category I and Category II advanced technologies described in 
     Appendix C of the report of the Secretary of Defense referred 
     to in paragraph (2)(A). The Secretary of the Navy shall 
     ensure that Electric Boat Division and Newport News 
     Shipbuilding are also principal participants in the 
     technology initiatives pursued with such funds to ensure 
     submarine-wide, integrated systems approaches to the 
     inclusion of such technologies on future nuclear attack 
     submarines.
       (4) In addition to the purposes for which the amounts under 
     paragraphs (1), (2), and (3) are available, such amounts are 
     also available for contracts with Electric Boat Division and 
     Newport News Shipbuilding to carry out the provisions of the 
     memorandum of agreement referred to in subsection (a)(2) for 
     research and development activities under that memorandum of 
     agreement.
       (c) Amount From Fiscal Year 1996 Funds for National Defense 
     Sealift Fund.--(1) Section 132 of the National Defense 
     Authorization Act for Fiscal Year 1996 (Public Law 104-106; 
     110 Stat. 210) is repealed.
       (2) The amount referred to in section 132 of the National 
     Defense Authorization Act for Fiscal Year 1996 (as in effect 
     immediately before the repeal by paragraph (1)) shall be 
     available to the Secretary of the Navy for activities 
     relating only to advanced submarine technology that involve 
     the construction of large scale vehicles for purposes of 
     hydrodynamic and hydroacoustic research on developmental 
     designs for hulls and propulsion systems.
       (d) Contracts Authorized.--(1) The Secretary of the Navy is 
     authorized, using funds available pursuant to subparagraphs 
     (B) and (C) of subsection (a)(1), to enter into contracts 
     with Electric Boat Division and Newport News Shipbuilding, 
     and suppliers of components, during fiscal year 1997 for--
       (A) the procurement of long-lead components for the fiscal 
     year 1998 submarine and the fiscal year 1999 submarine under 
     this section; and
       (B) advance construction of such components and other 
     components for such submarines.
       (2) The Secretary may enter into a contract or contracts 
     under this section with the shipbuilder of the fiscal year 
     1998 submarine only if the Secretary enters into a contract 
     or contracts under this section with the shipbuilder of the 
     fiscal year 1999 submarine.
       (e) Limitations.--(1)(A) Of the amounts specified in 
     subsection (a)(1), not more than $100,000,000 may be 
     obligated until the Secretary of Defense certifies in writing 
     to the Committee on Armed Services of the Senate and the 
     Committee on National Security of the House of 
     Representatives that procurement of nuclear attack submarines 
     described in subparagraph (B) will be under one or more 
     contracts that are entered into after competition between 
     Electric Boat Division and Newport News Shipbuilding in which 
     the Secretary of the Navy solicits competitive proposals and 
     awards the contract or contracts on the basis of price.
       (B) The submarines referred to in subparagraph (A) are 
     nuclear attack submarines that are to be constructed 
     beginning--
       (i) after fiscal year 1999; or
       (ii) if four submarines are to be procured as provided for 
     in the plan required under section 131(c) of the National 
     Defense Authorization Act for Fiscal Year 1996 (Public Law 
     104-106; 110 Stat. 208), after fiscal year 2001.
       (2) Of the amounts specified in subsection (a)(1), not more 
     than $675,000,000 may be obligated until the Under Secretary 
     of Defense for Acquisition and Technology submits to the 
     congressional committees specified in paragraph (1) a report 
     in writing detailing the following:
       (A) The Under Secretary's oversight activities to date, and 
     plans for the future, for the development and improvement of 
     the nuclear attack submarine program of the Navy as required 
     by section 131(b)(2)(C) of the National Defense Authorization 
     Act for Fiscal Year 1996 (110 Stat. 207).
       (B) The implementation of, and activities conducted under, 
     the program required to be established by the Director of the 
     Defense Advanced Research Projects Agency by section 131(i) 
     of the National Defense Authorization Act for Fiscal Year 
     1996 (110 Stat. 210) for the development and demonstration of

[[Page H8994]]

     advanced submarine technologies and a rapid prototype 
     acquisition strategy for both land-based and at-sea subsystem 
     and system demonstrations of such technologies.
       (C) A description of all research, development, test, and 
     evaluation programs, projects, or activities within the 
     Department of Defense which, in the opinion of the Under 
     Secretary, are designed to contribute to the development and 
     demonstration of advanced submarine technologies leading to a 
     more capable, more affordable nuclear attack submarine, 
     specifically identifying ongoing involvement, and plans for 
     future involvement, in any such program, project, or activity 
     by either Electric Boat Division or Newport News 
     Shipbuilding, or by both.
       (3) Of the amount specified in subsection (b)(1), not more 
     than $100,000,000 may be obligated or expended until the 
     Under Secretary of Defense (Comptroller) certifies in writing 
     to the congressional committees specified in paragraph (1) 
     that--
       (A) funds specified in subsection (c)(2) have been made 
     available for obligation; and
       (B) to the extent that funds specified in paragraphs (2) 
     and (3) of subsection (b) have been appropriated for the 
     purposes specified in such paragraphs, such funds have been 
     made available for obligation.
       (f) Acquisition Simplification.--In furtherance of the 
     direction provided by subsection (d) of section 131 of the 
     National Defense Authorization Act for Fiscal Year 1996 (110 
     Stat. 209) to the Secretary of Defense regarding the 
     application of acquisition reform policies and procedures to 
     the submarine program under that section, the Secretary shall 
     direct the Secretary of the Navy to implement for the 
     submarine programs of the Navy acquisition reform initiatives 
     similar in intent and approach to the initiatives begun by 
     the Secretary of the Air Force in May 1995 and referred to as 
     the ``Lightning Bolt'' initiatives. The Secretary of the Navy 
     shall, not later than March 31, 1997, submit to the 
     congressional committees specified in subsection (e)(1) a 
     report on the results of the implementation of such 
     initiatives.
       (g) Design Responsibility.--(1) The Secretary of the Navy 
     shall carry out the submarine program described in section 
     131 of the National Defense Authorization Act for Fiscal Year 
     1996 in a manner that ensures that each of the two 
     shipbuilders involved in the design and construction of the 
     four submarines described in that section be allowed to 
     propose to the Secretary any design improvement that the 
     shipbuilder considers appropriate for the submarines to be 
     built by that shipbuilder as part of those four submarines. 
     The Secretary shall ensure that both shipbuilders have full 
     and open access to all design data concerning the design of 
     the submarine previously designated by the Navy as the New 
     Attack Submarine.
       (2) The designs proposed by the shipbuilders should proceed 
     from, but not be limited to, the specific advanced 
     technologies referred to in subsection (b)(2)(A), especially 
     technologies involving hydrodynamics and hydroacoustics 
     concepts.
       (3) The Secretary shall require both shipbuilders to submit 
     to the Secretary an annual report on the progress of the 
     design work on the submarines referred to in paragraph (1) 
     and shall transmit each such report to the committees 
     specified in subsection (e)(1).
       (4) The Secretary shall also submit an annual report to the 
     committees specified in subsection (e)(1) on the design 
     improvements proposed by the two shipbuilders under paragraph 
     (1) for incorporation on any of the four submarines and on 
     the degree to which design information on the base design and 
     design improvements has been shared between the shipbuilders. 
     Each annual report shall set forth each design improvement 
     proposed and whether that proposal was--
       (A) reviewed, approved, and funded by the Navy;
       (B) reviewed and approved, but not funded; or
       (C) not approved, in which case the report shall include 
     the reasons therefor and any views of the shipyard making the 
     proposal.
       (5) The reports referred to in paragraphs (3) and (4) shall 
     be submitted concurrently with the annual revisions to the 
     Secretary of Defense's nuclear attack submarine plan required 
     by section 131(e) of the National Defense Authorization Act 
     for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 209).
       (h) Serial Production.--The Secretary of Defense shall 
     modify the plan relating to development of a program leading 
     to production of a more capable and less expensive submarine 
     than the New Attack Submarine that was submitted to Congress 
     pursuant to section 131(c) of the National Defense 
     Authorization Act for Fiscal Year 1996 in order to provide in 
     such plan the option for selection of a design for a next 
     submarine for serial production not earlier than fiscal year 
     2002 (rather than fiscal year 2003, as provided in paragraph 
     (3)(B) of such section 131(c)).
       (i) References to Shipbuilders.--For purposes of this 
     section--
       (1) the shipbuilder referred to as ``Electric Boat 
     Division'' is the Electric Boat Division of the General 
     Dynamics Corporation; and
       (2) the shipbuilder referred to as ``Newport News 
     Shipbuilding'' is the Newport News Shipbuilding and Drydock 
     Company.
       (j) Submarines Defined by Reference to Fiscal Year.--For 
     purposes of this section--
       (1) the term ``fiscal year 1998 submarine'' means the 
     submarine referred to in subsection (a)(1)(B); and
       (2) the term ``fiscal year 1999 submarine'' means the 
     submarine referred to in subsection (a)(1)(C).

     SEC. 122. ARLEIGH BURKE CLASS DESTROYER PROGRAM.

       (a) Funding.--(1) Subject to paragraph (3), funds 
     authorized to be appropriated by section 102(a)(3) may be 
     made available for contracts entered into during fiscal year 
     1996 under subsection (b)(1) of section 135 of the National 
     Defense Authorization Act for Fiscal Year 1996 (Public Law 
     104-106; 110 Stat. 211) for construction for the third of the 
     three Arleigh Burke class destroyers covered by that 
     subsection. Such funds are in addition to amounts made 
     available for such contracts by the second sentence of 
     subsection (a) of that section.
       (2) Subject to paragraph (3), funds authorized to be 
     appropriated by section 102(a)(3) may be made available for 
     contracts entered into during fiscal year 1997 under 
     subsection (b)(2) of such section 135 for construction 
     (including advance procurement) for the Arleigh Burke class 
     destroyers covered by such subsection (b)(2).
       (3) The aggregate amount of funds available under 
     paragraphs (1) and (2) for contracts referred to in such 
     paragraphs may not exceed $3,483,030,000.
       (4) Within the amount authorized to be appropriated by 
     section 102(a)(3), $525,000,000 is authorized to be 
     appropriated for advance procurement for construction for the 
     Arleigh Burke class destroyers authorized by subsection (b).
       (b) Authority for Multiyear Procurement of Twelve 
     Vessels.--The Secretary of the Navy is authorized, pursuant 
     to section 2306b of title 10, United States Code, to enter 
     into multiyear contracts for the procurement of a total of 12 
     Arleigh Burke class destroyers at a procurement rate of three 
     ships in each of fiscal years, 1998, 1999, 2000, and 2001 in 
     accordance with this subsection and subsection (a)(4), 
     subject to the availability of appropriations for such 
     destroyers. A contract for construction of one or more 
     vessels that is entered into in accordance with this 
     subsection shall include a clause that limits the liability 
     of the Government to the contractor for any termination of 
     the contract.

     SEC. 123. EA-6B AIRCRAFT REACTIVE JAMMER PROGRAM.

       (a) Limitation.--None of the funds appropriated pursuant to 
     section 102(a)(1) for modifications or upgrades of EA-6B 
     aircraft may be obligated, other than for a reactive jammer 
     program for such aircraft, until 30 days after the date on 
     which the Secretary of the Navy submits to the congressional 
     defense committees in writing--
       (1) a certification that some or all of such funds have 
     been obligated for a reactive jammer program for EA-6B 
     aircraft; and
       (2) a report that sets forth a detailed, well-defined 
     program for--
       (A) developing a reactive jamming capability for EA-6B 
     aircraft; and
       (B) upgrading the EA-6B aircraft of the Navy to incorporate 
     the reactive jamming capability.
       (b) Contingent Transfer of Funds to Air Force.--(1) If the 
     Secretary of the Navy has not submitted the certification and 
     report described in subsection (a) to the congressional 
     defense committees before June 1, 1997, then, on that date, 
     the Secretary of Defense shall transfer to Air Force, out of 
     appropriations available to the Navy for fiscal year 1997 for 
     procurement of aircraft, the amount equal to the amount 
     appropriated to the Navy for fiscal year 1997 for 
     modifications and upgrades of EA-6B aircraft.
       (2) Funds transferred to the Air Force pursuant to 
     paragraph (1) shall be available for maintaining and 
     upgrading the jamming capability of EF-111 aircraft.

     SEC. 124. T-39N TRAINER AIRCRAFT FOR THE NAVY.

       The Secretary of the Navy may, using funds appropriated for 
     fiscal year 1996 for procurement of T-39N trainer aircraft 
     for the Navy that remain available for obligation for such 
     purpose, enter into a contract for the acquisition of T-39N 
     aircraft for naval flight officer training that are suitable 
     for low-level training flights. Such a contract may be 
     entered into only after the Secretary complies with section 
     137 of the National Defense Authorization Act for Fiscal Year 
     1996 (Public Law 104-106; 110 Stat. 212).

     SEC. 125. PENGUIN MISSILE PROGRAM.

       (a) Multiyear Procurement Authority.--The Secretary of the 
     Navy may, in accordance with section 2306b of title 10, 
     United States Code, enter into multiyear procurement 
     contracts for the procurement of not more than 106 Penguin 
     missile systems.
       (b) Limitation on Total Cost.--The total amount obligated 
     or expended for procurement of Penguin missile systems under 
     contracts under subsection (a) may not exceed $84,800,000.
                     Subtitle D--Air Force Programs

     SEC. 131. REPEAL OF LIMITATION ON PROCUREMENT OF F-15E 
                   AIRCRAFT.

       Section 134 of the National Defense Authorization Act for 
     Fiscal Years 1990 and 1991 (Public Law 101-189; 103 Stat. 
     1383) is repealed.

     SEC. 132. MODIFICATION TO MULTIYEAR PROCUREMENT AUTHORITY FOR 
                   C-17 AIRCRAFT PROGRAM.

       (a) Multiyear Contracts Authorized.--The Secretary of the 
     Air Force may enter into one or more multiyear contracts for 
     the procurement of C-17 aircraft (including the section 2703 
     contract entered into before the date of the enactment of 
     this Act under the authority of section 2703 of the 
     Supplemental Appropriations Act of 1996 (title II of Public 
     Law 104-134)). The total number of aircraft

[[Page H8995]]

     contracted to be procured under such multiyear contracts may 
     not exceed 80. Any such contract shall be entered into in 
     accordance with section 2306b of title 10, United States Code 
     (and subject to such modifications as may be authorized by 
     law in the maximum period for such contracts specified in 
     subsection (k) of such section).
       (b) Requirement to Negotiate Option to Convert Existing 
     Contract to Six Program Years.--The Secretary of the Air 
     Force shall negotiate with the prime contractor for the C-17 
     aircraft program so as to achieve a contract option for the 
     United States under the section 2703 contract to convert the 
     multiyear procurement period under that contract to a period 
     of six program years based upon the level of funding for that 
     program for fiscal year 1997.
       (c) Contract Period.--A contract entered into after the 
     date of the enactment of this Act on a multiyear basis under 
     the authority of subsection (a) may (notwithstanding section 
     2306b(k) of title 10, United States Code) be for a period of 
     six program years.
       (d) Section 2703 Contract Defined.--For purposes of this 
     section, the term ``section 2703 contract'' means the 
     contract entered into by the Secretary of the Air Force on 
     May 31, 1996, with the prime contractor for the C-17 aircraft 
     program under the authority of section 2703 of the 
     Supplemental Appropriations Act of 1996 (title II of Public 
     Law 104-134) providing for a multiyear procurement of C-17 
     aircraft over seven program years with an option for the 
     Secretary to convert that period to six program years.
                       Subtitle E--Other Matters

     SEC. 141. ASSESSMENTS OF MODERNIZATION PRIORITIES OF THE 
                   RESERVE COMPONENTS.

       (a) Assessments Required.--Not later than December 1, 1996, 
     each officer referred to in subsection (b) shall submit to 
     the congressional defense committees an assessment of the 
     modernization priorities established for the reserve 
     component or reserve components for which that officer is 
     responsible.
       (b) Responsible Officers.--The officers required to submit 
     a report under subsection (a) are as follows:
       (1) The Chief of the National Guard Bureau.
       (2) The Chief of Army Reserve.
       (3) The Chief of Air Force Reserve.
       (4) The Director of Naval Reserve.
       (5) The Commanding General, Marine Forces Reserve.

     SEC. 142. DESTRUCTION OF EXISTING STOCKPILE OF LETHAL 
                   CHEMICAL AGENTS AND MUNITIONS.

       Section 152 of the National Defense Authorization Act for 
     Fiscal Year 1996 (Public Law 104-106; 110 Stat. 214; 50 
     U.S.C. 1521 note) is amended by adding at the end the 
     following new subsections:
       ``(e) Assessment of Alternative Technologies for 
     Demilitarization of Assembled Chemical Munitions.--(1) In 
     addition to the assessment required by subsection (c), the 
     Secretary of Defense shall conduct an assessment of the 
     chemical demilitarization program for destruction of 
     assembled chemical munitions and of the alternative 
     demilitarization technologies and processes (other than 
     incineration) that could be used for the destruction of the 
     lethal chemical agents that are associated with these 
     munitions, while ensuring maximum protection for the general 
     public, the personnel involved in the demilitarization 
     program, and the environment. The measures considered shall 
     be limited to those that would minimize the risk to the 
     public and reduce the total cost of the chemical agents and 
     munitions destruction program. The assessment shall be 
     conducted without regard to any limitation that would 
     otherwise apply to the conduct of such assessment under any 
     provision of law.
       ``(2) The assessment shall be conducted in coordination 
     with the National Research Council.
       ``(3) Among the alternatives, the assessment shall include 
     a determination of the cost of incineration of the current 
     chemical munitions stockpile by building incinerators at each 
     existing facility compared to the proposed cost of 
     dismantling those same munitions, neutralizing them at each 
     storage site (other than Tooele Army Depot or Johnston 
     Atoll), and transporting the neutralized remains and all 
     munitions parts to a treatment, storage, and disposal 
     facility within the United States that has the necessary 
     environmental permits to undertake incineration of the 
     material.
       ``(4) Based on the results of the assessment, the Secretary 
     shall develop appropriate recommendations for revision of the 
     chemical demilitarization program.
       ``(5) Not later than December 31, 1997, the Secretary of 
     Defense shall submit to Congress a report on the assessment 
     conducted in accordance with paragraph (1) and any 
     recommendations for revision of the chemical demilitarization 
     program, including the continued development of alternative 
     demilitarization technologies and processes other than 
     incineration that could be used for the destruction of the 
     lethal chemical agents that are associated with these 
     assembled chemical munitions and the chemical munitions 
     demilitarization sites for which the selected technologies 
     should be developed.
       ``(f) Pilot Program for Demilitarization of Chemical Agents 
     for Assembled Munitions.--(1) If the Secretary of Defense 
     makes a decision to continue the development of an 
     alternative demilitarization technology or process (other 
     than incineration) that could be used for the destruction of 
     the lethal chemical agents that are associated with assembled 
     chemical munitions, $25,000,000 shall be available from the 
     funds authorized to be appropriated in section 107 of the 
     National Defense Authorization Act for Fiscal Year 1997 for 
     the chemical agents and munitions destruction program, in 
     order to initiate a pilot program using the selected 
     alternative technology or process for the destruction of 
     chemical agents that are stored at these sites.
       ``(2) Not less than 30 days before using funds to initiate 
     the pilot program under paragraph (1), the Secretary shall 
     submit notice in writing to Congress of the Secretary's 
     intent to do so.
       ``(3) The pilot program shall be conducted at the selected 
     chemical agent and munitions stockpile storage site for which 
     the alternative technology or process is recommended.''.

     SEC. 143. EXTENSION OF AUTHORITY TO CARRY OUT ARMAMENT 
                   RETOOLING AND MANUFACTURING SUPPORT INITIATIVE.

       Section 193(a) of the Armament Retooling and Manufacturing 
     Support Act of 1992 (subtitle H of title I of Public Law 102-
     484; 10 U.S.C. 2501 note) is amended by striking out ``During 
     fiscal years 1993 through 1996'', and inserting in lieu 
     thereof ``During fiscal years 1993 through 1998''.
         TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

              Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for basic and applied research.
Sec. 203. Dual-use technology programs.
Sec. 204. Defense Special Weapons Agency.

    Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Space launch modernization.
Sec. 212. Space-Based Infrared System program.
Sec. 213. Clementine 2 micro-satellite development program.
Sec. 214. Live-fire survivability testing of V-22 Osprey aircraft.
Sec. 215. Live-fire survivability testing of F-22 aircraft.
Sec. 216. Limitation on funding for F-16 tactical manned reconnaissance 
              aircraft.
Sec. 217. Cost analysis of F-22 aircraft program.
Sec. 218. F-22 aircraft program reports.
Sec. 219. Cost-benefit analysis of F/A-18E/F aircraft program.
Sec. 220. Joint Advanced Strike Technology (JAST) program.
Sec. 221. Unmanned aerial vehicles.
Sec. 222. High altitude endurance unmanned aerial reconnaissance 
              system.
Sec. 223. Cyclone class patrol craft self-defense.
Sec. 224. One-year extension of deadline for delivery of Enhanced Fiber 
              Optic Guided Missile (EFOG-M) system.
Sec. 225. Hydra-70 rocket product improvement program.
Sec. 226. Federally funded research and development centers.
Sec. 227. Demilitarization of conventional munitions, rockets, and 
              explosives.
Sec. 228. Research activities of the Defense Advanced Research Projects 
              Agency relating to chemical and biological warfare 
              defense technology.
Sec. 229. Certification of capability of United States to prevent 
              illegal importation of nuclear, biological, or chemical 
              weapons.
Sec. 230. Nonlethal weapons and technologies programs.
Sec. 231. Counterproliferation support program.

             Subtitle C--Ballistic Missile Defense Programs

Sec. 241. Funding for ballistic missile defense programs for fiscal 
              year 1997.
Sec. 242. Certification of capability of United States to defend 
              against single ballistic missile.
Sec. 243. Report on ballistic missile defense and proliferation.
Sec. 244. Revision to annual report on ballistic missile defense 
              program.
Sec. 245. Report on Air Force National Missile Defense Plan.
Sec. 246. Capability of National Missile Defense system.
Sec. 247. Actions to limit adverse effects on private sector employment 
              of establishment of National Missile Defense Joint 
              Program Office.
Sec. 248. ABM Treaty defined.

                       Subtitle D--Other Matters

Sec. 261. Maintenance and repair at Air Force installations.
Sec. 262. Report relating to Small Business Innovation Research 
              Program.
Sec. 263. Amendment to University Research Initiative Support program.
Sec. 264. Amendments to Defense Experimental Program To Stimulate 
              Competitive Research.
Sec. 265. Elimination of report on the use of competitive procedures 
              for the award of certain contracts to colleges and 
              universities.
Sec. 266. Pilot program for transfer of defense technology information 
              to private industry.
Sec. 267. Research under transactions other than contracts and grants.

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Sec. 268. Desalting technologies.
Sec. 269. Evaluation of digital video network equipment used in Olympic 
              games.
Sec. 270. Annual joint warfighting science and technology plan.

         Subtitle E--National Oceanographic Partnership Program

Sec. 281. Findings.
Sec. 282. National Oceanographic Partnership Program.
              Subtitle A--Authorization of Appropriations

     SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1997 for the use of the Department of Defense for 
     research, development, test, and evaluation as follows:
       (1) For the Army, $4,780,615,000.
       (2) For the Navy, $8,068,299,000.
       (3) For the Air Force, $14,756,366,000.
       (4) For Defense-wide activities, $9,691,293,000, of which--
       (A) $269,038,000 is authorized for the activities of the 
     Director, Test and Evaluation; and
       (B) $21,968,000 is authorized for the Director of 
     Operational Test and Evaluation.

     SEC. 202. AMOUNT FOR BASIC AND APPLIED RESEARCH.

       (a) Fiscal Year 1997.--Of the amounts authorized to be 
     appropriated by section 201, $4,031,343,000 shall be 
     available for basic research and applied research projects.
       (b) Basic Research and Applied Research Defined.--For 
     purposes of this section, the term ``basic research and 
     applied research'' means work funded in program elements for 
     defense research and development under Department of Defense 
     category 6.1 or 6.2.

     SEC. 203. DUAL-USE TECHNOLOGY PROGRAM.

       (a) Allocation of Funds.--Of the amount appropriated 
     pursuant to the authorization in section 201(4), $85,000,000 
     shall be available for the dual-use technology program under 
     this section.
       (b) Designation of Official for Dual-Use Program.--(1) The 
     Secretary of Defense shall designate a senior official in the 
     Office of the Secretary of Defense to have as that official's 
     sole responsibilities developing policy relating to, and 
     ensuring effective implementation of, the dual-use technology 
     program of the Department of Defense. In carrying out such 
     responsibilities, the official shall ensure--
       (A) that commercial technologies are integrated into 
     current and future military systems to the maximum extent 
     practicable;
       (B) that dual-use projects are coordinated with the joint 
     warfighting science and technology plan referred to in 
     section 270; and
       (C) that dual-use projects of the military departments and 
     the defense agencies are coordinated and avoid unnecessary 
     duplication.
       (2) The senior official designated under paragraph (1) 
     shall carry out such responsibilities during the period 
     beginning on October 1, 1996, and ending on September 30, 
     2000. Such official shall report directly to the Under 
     Secretary of Defense for Acquisition and Technology.
       (c) Funding Requirement.--Of the amounts appropriated 
     pursuant to the authorizations in section 201 for the 
     Department of Defense for science and technology programs for 
     fiscal year 1997, at least 5 percent of such amounts shall be 
     available only for dual-use projects of the Department of 
     Defense. The funds made available under the preceding 
     sentence are in addition to the funds made available under 
     subsection (a).
       (d) Limitation on Obligations.--Funds made available 
     pursuant to subsections (a) and (c) may be used for a dual-
     use project only if the contract, cooperative agreement, or 
     other transaction by which the project is carried out is 
     entered into through the use of competitive procedures.
       (e) Transfer Authority.--In addition to the transfer 
     authority provided in section 1001, the Secretary of Defense 
     may transfer funds made available pursuant to subsections (a) 
     and (c) for a dual-use project from a military department or 
     defense agency to another military department or defense 
     agency to ensure efficient implementation of the dual-use 
     technology program. The Secretary may delegate the authority 
     provided in the preceding sentence to the senior official 
     designated under subsection (b).
       (f) Federal Cost Share.--The share contributed by the 
     Secretary of a military department or the head of a defense 
     agency for the cost of a dual-use project during fiscal year 
     1997 may not be greater than 50 percent of the cost of the 
     project for that fiscal year.
       (g) Report.--At the same time the President submits to 
     Congress the budget for fiscal year 1998 pursuant to section 
     1105(a) of title 31, United States Code, the Secretary of 
     Defense shall submit to Congress a report that specifies the 
     investment strategy for the dual-use technology program to be 
     conducted during fiscal years 1998, 1999, and 2000.
       (h) Definitions.--In this section:
       (1) The term ``dual-use technology program'' means the 
     program of the Department of Defense under which research or 
     development of a dual-use technology (as defined in section 
     2491 of title 10, United States Code) is carried out and the 
     costs of which are shared between the Department of Defense 
     and non-Government entities. The term includes the dual-use 
     critical technology program established pursuant to section 
     2511 of title 10, United States Code.
       (2) The term ``dual-use project'' means a project under the 
     dual-use technology program.
       (3) The term ``science and technology program'' means a 
     program of a military department under which basic research, 
     applied research, or advanced technology development is 
     carried out.

     SEC. 204. DEFENSE SPECIAL WEAPONS AGENCY.

       There is hereby authorized to be appropriated for fiscal 
     year 1997 the amount of $314,313,000 for the Defense Special 
     Weapons Agency, of which--
       (1) $7,900,000 is for procurement;
       (2) $218,330,000 is for research, development, test, and 
     evaluation; and
       (3) $88,083,000 is for operations and maintenance.
    Subtitle B--Program Requirements, Restrictions, and Limitations

     SEC. 211. SPACE LAUNCH MODERNIZATION.

       (a) Funding.--Funds appropriated pursuant to the 
     authorization of appropriations in section 201(3) are 
     authorized to be made available for space launch 
     modernization for purposes and in amounts as follows:
       (1) For the Evolved Expendable Launch Vehicle program, 
     $44,457,000.
       (2) For a competitive reusable launch vehicle program 
     (program element 63401F), $25,000,000.
       (b) Limitations.--(1) Of the funds made available for the 
     reusable launch vehicle program pursuant to subsection 
     (a)(2), the total amount obligated for such purpose may not 
     exceed the total amount allocated in the fiscal year 1997 
     current operating plan of the National Aeronautics and Space 
     Administration for the Reusable Space Launch program of the 
     National Aeronautics and Space Administration.
       (2) Of the funds made available for the Evolved Expendable 
     Launch Vehicle program pursuant to subsection (a)(1), the 
     total amount obligated for such purpose may not exceed 
     $20,000,000 until the Secretary of Defense certifies to 
     Congress that the Secretary has made available for obligation 
     the funds, if any, that are made available for the reusable 
     launch vehicle program pursuant to subsection (a)(2).
       (c) Coordination of Engine Testing.--Not later than 90 days 
     after the date of the enactment of this Act, the Secretary of 
     Defense and the Administrator of the National Aeronautics and 
     Space Administration shall submit to Congress a joint plan 
     for coordinating and eliminating unnecessary duplication in 
     the operations and planned improvements of rocket engine and 
     rocket engine component test facilities managed by the 
     Department of the Air Force and the National Aeronautics and 
     Space Administration. The plan shall provide, to the extent 
     practical, for the development of commonly funded and 
     commonly operated facilities.

     SEC. 212. SPACE-BASED INFRARED SYSTEM PROGRAM.

       (a) Funding.--Funds appropriated pursuant to the 
     authorization of appropriations in section 201(3) are 
     authorized to be made available for the Space-Based Infrared 
     System program for purposes and in amounts as follows:
       (1) For Space Segment High, $173,290,000.
       (2) For Space Segment Low (the Space and Missile Tracking 
     System), $247,221,000.
       (3) For Cobra Brass, $6,930,000.
       (b) Limitation.--Not more than $100,000,000 of the funds 
     authorized to be made available under subsection (a)(1) may 
     be obligated or expended until the Secretary of Defense 
     certifies to Congress that the Secretary has made available 
     the funds authorized to be made available under subsection 
     (a)(2) for the purpose of accelerating the deployment of the 
     Space Segment Low (the Space and Missile Tracking System).
       (c) Program Management.--Before the submission of the 
     President's budget for fiscal year 1998, the Secretary of 
     Defense shall conduct a review of the appropriate management 
     responsibilities for the Space and Missile Tracking System, 
     including whether transferring such management responsibility 
     from the Air Force to the Ballistic Missile Defense 
     Organization would result in improved program efficiencies 
     and support.

     SEC. 213. CLEMENTINE 2 MICRO-SATELLITE DEVELOPMENT PROGRAM.

       (a) Amount for Program.--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 for the global positioning system (GPS) 
     Block II F Satellite system, not more than $25,000,000 may be 
     obligated until the Secretary of Defense certifies to 
     Congress that--
       (1) funds appropriated for fiscal year 1996 for the 
     Clementine 2 Micro-Satellite development program have been 
     obligated in accordance with Public Law 104-106 and the Joint 
     Explanatory Statement of the Committee of Conference 
     accompanying S. 1124 (House Report 104-450 (104th Congress, 
     second session)); and
       (2) the Secretary has made available for obligation the 
     funds appropriated for fiscal year 1997 for the purpose 
     specified in subsection (a).

     SEC. 214. LIVE-FIRE SURVIVABILITY TESTING OF V-22 OSPREY 
                   AIRCRAFT.

       (a) Authority for Retroactive Waiver.--The Secretary of 
     Defense may, in accordance with section 2366(c) of title 10, 
     United States Code, waive for the V-22 Osprey aircraft 
     program the survivability tests required by that section, 
     notwithstanding that such program has entered engineering and 
     manufacturing development.
       (b) Report to Congress.--In exercising the waiver authority 
     in section 2366(c) of title 10,

[[Page H8997]]

     United States Code, the Secretary shall submit to Congress a 
     report explaining how the Secretary plans to evaluate the 
     survivability of the V-22 Osprey aircraft system and 
     assessing possible alternatives to realistic survivability 
     testing of the system.
       (c) Alternative Survivability Test Requirements.--If the 
     Secretary of Defense submits in accordance with section 
     2366(c)(1) of title 10, United States Code, a certification 
     that live-fire testing of the V-22 Osprey aircraft would be 
     unreasonably expensive and impractical, the Secretary shall 
     require that components critical to the survivability of the 
     V-22 Osprey aircraft be subjected to live-fire testing under 
     an alternative live-fire testing program that, by reason of 
     the number of such components tested and the realism of the 
     threat environments under which the components are tested, 
     will yield test results that provide a sufficient basis for 
     drawing meaningful conclusions about the survivability of V-
     22 Osprey aircraft.
       (d) Funding.--The funds required to carry out any 
     alternative live-fire testing of the V-22 Osprey aircraft 
     system shall be made available from amounts appropriated for 
     the V-22 Osprey program.

     SEC. 215. LIVE-FIRE SURVIVABILITY TESTING OF F-22 AIRCRAFT.

       (a) Authority for Retroactive Waiver.--The Secretary of 
     Defense may, in accordance with section 2366(c) of title 10, 
     United States Code, waive for the F-22 aircraft program the 
     survivability tests required by that section, notwithstanding 
     that such program has entered engineering and manufacturing 
     development.
       (b) Alternative Survivability Test Requirements.--If the 
     Secretary of Defense submits in accordance with section 
     2366(c)(1) of title 10, United States Code, a certification 
     that live-fire testing of the F-22 aircraft would be 
     unreasonably expensive and impractical, the Secretary shall 
     require that components and subsystems critical to the 
     survivability of the F-22 aircraft be subjected to live-fire 
     testing under an alternative live-fire testing program that, 
     by reason of the number of such components and subsystems 
     tested and the realism of the threat environments under which 
     the components and subsystems are tested, will yield test 
     results that provide a sufficient basis for drawing 
     meaningful conclusions about the survivability of F-22 
     aircraft.
       (c) Funding.--The funds required to carry out any 
     alternative live-fire testing of the F-22 aircraft system 
     shall be made available from amounts appropriated for the F-
     22 program.

     SEC. 216. LIMITATION ON FUNDING FOR F-16 TACTICAL MANNED 
                   RECONNAISSANCE AIRCRAFT.

       (a) Limitation.--Effective on the date of the enactment of 
     this Act, not more than $50,000,000 (in fiscal year 1997 
     constant dollars) may be obligated or expended for--
       (1) research, development, test, and evaluation for, and 
     acquisition and modification of, the F-16 tactical manned 
     reconnaissance aircraft program; and
       (2) costs associated with the termination of such program.
       (b) Exception.--The limitation in subsection (a) shall not 
     apply to obligations required for improvements planned before 
     the date of the enactment of this Act to incorporate the 
     common data link into the F-16 tactical manned reconnaissance 
     aircraft.

     SEC. 217. COST ANALYSIS OF F-22 AIRCRAFT PROGRAM.

       (a) Review and Report.--The Secretary of Defense shall 
     direct the Cost Analysis Improvement Group in the Office of 
     the Secretary of Defense to review the F-22 aircraft program, 
     analyze and estimate the production costs of the program, and 
     submit to the Secretary a report on the results of the 
     review.
       (b) Content of Report.--The report shall include--
       (1) a comparison of--
       (A) the results of the review, with
       (B) the results of the last independent estimate of 
     production costs of the program that was prepared by the Cost 
     Analysis Improvement Group in July 1991; and
       (2) a description of any major changes in programmatic 
     assumptions that have occurred since the estimate referred to 
     in paragraph (1)(B) was made, including any major change in 
     assumptions regarding the program schedule, the quantity of 
     aircraft to be developed and acquired, and the annual rates 
     of production, together with an assessment of the effects of 
     such changes on the program.
       (c) Submission of Report.--Not later than March 30, 1997, 
     the Secretary shall submit the report to the congressional 
     defense committees, together with the Secretary's views on 
     the matters covered by the report.
       (d) Limitation on Use of Funds Pending Submission of 
     Report.--Not more than 92 percent of the funds appropriated 
     for the F-22 aircraft program pursuant to the authorization 
     of appropriations in section 103(1) may be expended until the 
     Secretary of Defense submits the report required under this 
     section.

     SEC. 218. F-22 AIRCRAFT PROGRAM REPORTS.

       (a) Annual Report.--(1) At the same time that the President 
     submits the budget for a fiscal year to Congress pursuant to 
     section 1105(a) of title 31, United States Code, the 
     Secretary of Defense shall submit to Congress a report on 
     event-based decisionmaking for the F-22 aircraft program for 
     that fiscal year. The Secretary shall submit the report for 
     fiscal year 1997 not later than October 1, 1996.
       (2) The report for a fiscal year shall include the 
     following:
       (A) A discussion of each decision known within the 
     Department of Defense as an ``event-based decision'' that is 
     expected to be made during that fiscal year regarding whether 
     the F-22 program is to proceed into a new phase or into a new 
     administrative subdivision of a phase.
       (B) The criteria known within the Department of Defense as 
     ``exit criteria'' to be applied, for purposes of making the 
     event-based decision, in determining whether the F-22 
     aircraft program has demonstrated the specific progress 
     necessary for proceeding into the new phase or administrative 
     subdivision of a phase.
       (b) Report on Event-Based Decisions.--Not later than 30 
     days after an event-based decision has been made for the F-22 
     aircraft program, the Secretary of Defense shall submit to 
     Congress a report on the decision. The report shall include 
     the following:
       (1) A discussion of the commitments made, and the 
     commitments to be made, under the program as a result of the 
     decision.
       (2) The exit criteria applied for purposes of the decision.
       (3) How, in terms of the exit criteria, the program 
     demonstrated the specific progress justifying the decision.

     SEC. 219. COST-BENEFIT ANALYSIS OF F/A-18E/F AIRCRAFT 
                   PROGRAM.

       (a) Report on Program.--Not later than March 30, 1997, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a report on the F/A-18E/F aircraft 
     program.
       (b) Content of Report.--The report shall contain the 
     following:
       (1) A review of the F/A-18E/F aircraft program.
       (2) An analysis and estimate of the production costs of the 
     program for the total number of aircraft realistically 
     expected to be procured at each of three annual production 
     rates as follows:
       (A) 18 aircraft.
       (B) 24 aircraft.
       (C) 36 aircraft.
       (3) A comparison of the costs and benefits of the program 
     with the costs and benefits of the F/A-18C/D aircraft program 
     taking into account the operational combat effectiveness of 
     the aircraft.
       (c) Limitation on Use of Funds Pending Submission of 
     Report.--Not more than 90 percent of the funds authorized to 
     be appropriated by this Act for the procurement of F/A-18E/F 
     aircraft may be obligated or expended for procurement of such 
     aircraft before the date that is 30 days after the date on 
     which the congressional defense committees receive the report 
     required under subsection (a).

     SEC. 220. JOINT ADVANCED STRIKE TECHNOLOGY (JAST) PROGRAM.

       (a) Allocation of Funds.--Of the amounts authorized to be 
     appropriated pursuant to the authorizations in section 201, 
     $602,069,000 shall be available only for advanced technology 
     development for the Joint Advanced Strike Technology (JAST) 
     program. Of that amount--
       (1) $259,833,000 shall be available only for program 
     element 63800N in the budget of the Department of Defense for 
     fiscal year 1997;
       (2) $263,836,000 shall be available only for program 
     element 63800F in the budget of the Department of Defense for 
     fiscal year 1997; and
       (3) $78,400,000 shall be available only for program element 
     63800E in the budget of the Department of Defense for fiscal 
     year 1997.
       (b) Analysis of Force Structure.--Of the amounts authorized 
     to be appropriated by section 201 for the Joint Advanced 
     Strike Technology program, up to $10,000,000 shall be 
     available for the conduct of an analysis by the Institute for 
     Defense Analyses of the following:
       (1) The weapon systems force structure required to meet the 
     anticipated range of threats projected by the intelligence 
     community for the period 2000 through 2025.
       (2) Alternative force mixes, including, at a minimum, the 
     following force mixes:
       (A) Joint Strike Fighter derivative aircraft; 
     remanufactured AV-8 aircraft; F-18C/D, F-18E/F, AH-64, AH-1W, 
     RAH-66, F-14, F-16, F-15, F-117, F-22, B-1, B-2, and B-52 
     aircraft; and air-to-surface and surface-to-surface weapons 
     systems.
       (B) Joint Strike Fighter derivative aircraft; 
     remanufactured AV-8 aircraft; F-18C/D, F-18E/F, F-14, F-16, 
     F-15, F-117, and F-22 aircraft; and air-to-surface and 
     surface-to-surface weapons systems.
       (3) Cost and operational effectiveness of the alternative 
     force mixes analyzed under paragraph (2), including 
     sensitivity analyses related to system performance, costs, 
     threats, and force employment scenarios.
       (4) Required operational capability dates of systems not 
     yet in production for the force mixes analyzed under 
     paragraph (2).
       (5) Affordability, commonality, and roles and missions 
     considerations related to the alternative force mixes 
     analyzed under paragraph (2).
       (c) Cost Review of Force Structure Analysis.--The Secretary 
     of Defense shall direct the Cost Analysis Improvement Group 
     in the Office of the Secretary of Defense to review cost 
     estimates made under the analysis conducted under subsection 
     (b) and submit to the Secretary a report on the results of 
     the review. The report may include comments and additional 
     cost sensitivity analyses.

[[Page H8998]]

       (d) Briefing and Report.--(1) Not later than November 15, 
     1996, the Secretary of Defense shall make available to the 
     congressional defense committees a briefing on the plan and 
     assumptions for the analysis to be conducted under subsection 
     (b).
       (2) Not later than May 15, 1997, the Secretary of Defense 
     shall submit to the congressional defense committees a report 
     containing a copy of the analysis conducted under subsection 
     (b) and of the cost review conducted under subsection (c), 
     together with the views of the Secretary on such analysis and 
     cost review.

     SEC. 221. UNMANNED AERIAL VEHICLES.

       (a) Procurement Funding Request.--The funding request for 
     procurement for unmanned aerial vehicles for any fiscal year 
     shall be set forth under the funding requests for the 
     military departments in the budget of the Department of 
     Defense.
       (b) Transfer of Program Management.--Program management for 
     the Predator Unmanned Aerial Vehicle, and programmed funding 
     for such vehicle for fiscal years 1998, 1999, 2000, 2001, and 
     2002 (as set forth in the future-years defense program), 
     shall be transferred to the Department of the Air Force, 
     effective October 1, 1996, or the date of the enactment of 
     this Act, whichever is later.
       (c) Prohibition on Providing Operating Capability from 
     Naval Vessels.--No funds authorized to be appropriated by 
     this Act may be obligated for purposes of providing the 
     capability of the Predator Unmanned Aerial Vehicle to operate 
     from naval vessels.

     SEC. 222. HIGH ALTITUDE ENDURANCE UNMANNED AERIAL 
                   RECONNAISSANCE SYSTEM.

       Any concepts for an improved Tier III Minus (High Altitude 
     Endurance Unmanned Aerial Reconnaissance) system, developed 
     using funds authorized to be appropriated under this title, 
     that would increase the unit flyaway cost for such system to 
     an amount greater than the unit flyaway cost established in 
     either of the original contracts for such system, may not be 
     carried out under the original contracts, but must instead be 
     carried out under another contract that is awarded using 
     competitive procedures.

     SEC. 223. CYCLONE CLASS PATROL CRAFT SELF-DEFENSE.

       (a) Study Required.--The Secretary of Defense shall perform 
     a study of the operational requirements for vessel self-
     defense for the Cyclone class patrol craft and a comparative 
     evaluation of the potential means for meeting the operational 
     requirements for self-defense of the craft. The study shall 
     consider the range of operational scenarios in which the 
     craft is expected to be employed.
       (b) Systems To Be Evaluated.--The study under subsection 
     (a) shall consider those self-defense systems that could be 
     employed aboard the Cyclone class patrol craft, including the 
     Barak ship self-defense missile system.
       (c) Report.--Not later than March 31, 1997, the Secretary 
     shall submit to Congress a report containing the results of 
     the study under subsection (a).

     SEC. 224. ONE-YEAR EXTENSION OF DEADLINE FOR DELIVERY OF 
                   ENHANCED FIBER OPTIC GUIDED MISSILE (EFOG-M) 
                   SYSTEM.

       Section 272(a)(2) of the National Defense Authorization Act 
     for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 239) is 
     amended by striking out ``September 30, 1998,'' and inserting 
     in lieu thereof ``September 30, 1999,''.

     SEC. 225. HYDRA-70 ROCKET PRODUCT IMPROVEMENT PROGRAM.

       (a) Funding Authorization.--Of the amount authorized to be 
     appropriated under section 201(1) for the Army for Other 
     Missile Product Improvement Programs, $9,000,000 is 
     authorized as specified in subsection (b) for completion of 
     the Hydra-70 product improvement program authorized for 
     fiscal year 1996.
       (b) Authorized Actions.--Funding is authorized to be 
     appropriated for the following:
       (1) Procurement for test and flight qualification of at 
     least one nondevelopmental item 2.75-inch composite rocket 
     motor propellant type, along with other nondevelopmental item 
     candidate motors that use composite propellant as the 
     propulsion component.
       (2) Platform integration, including additional quantities 
     of the motor chosen for operational certification on the 
     Apache attack helicopter.
       (c) Definition.--In this section, the term 
     ``nondevelopmental item'' has the meaning provided in section 
     4 of the Office of Federal Procurement Policy Act (41 U.S.C. 
     403).

     SEC. 226. FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTERS.

       (a) Centers Covered.--Funds authorized to be appropriated 
     for the Department of Defense for fiscal year 1997 under 
     section 201 may be obligated to procure work from a federally 
     funded research and development center (in this section 
     referred to as an ``FFRDC'') only in the case of a center 
     named in the report required by subsection (b) and, in the 
     case of such a center, only in an amount not in excess of the 
     amount of the proposed funding level set forth for that 
     center in such report.
       (b) Report on Allocations for Centers.--(1) Not later than 
     30 days after the date of the enactment of this Act, the 
     Secretary of Defense shall submit to the Committee on Armed 
     Services of the Senate and the Committee on National Security 
     of the House of Representatives a report containing--
       (A) the name of each FFRDC from which work is proposed to 
     be procured for the Department of Defense for fiscal year 
     1997;
       (B) for each such center, the proposed funding level and 
     the estimated personnel level for fiscal year 1997; and
       (C) for each such center, an unambiguous definition of the 
     unique core competencies required to be maintained for fiscal 
     year 1997.
       (2) The total of the proposed funding levels set forth in 
     the report for all FFRDCs may not exceed the amount set forth 
     in subsection (d).
       (c) Limitation Pending Submission of Report.--Not more than 
     15 percent of the funds authorized to be appropriated for the 
     Department of Defense for fiscal year 1997 for FFRDCs under 
     section 201 may be obligated to procure work from an FFRDC 
     until the Secretary of Defense submits the report required by 
     subsection (b).
       (d) Funding.--(1) Subject to paragraph (2), of the amounts 
     authorized to be appropriated by section 201, not more than a 
     total of $1,214,650,000 may be obligated to procure services 
     from the FFRDCs named in the report required by subsection 
     (b).
       (2) The limitation in paragraph (1) does not apply to funds 
     obligated for the procurement of equipment for FFRDCs.
       (e) Authority To Waive Funding Limitation.--The Secretary 
     of Defense may waive the limitation regarding the maximum 
     funding amount that applies under subsection (a) to an FFRDC. 
     Whenever the Secretary proposes to make such a waiver, the 
     Secretary shall submit to the Committee on Armed Services of 
     the Senate and the Committee on National Security of the 
     House of Representatives notice of the proposed waiver and 
     the reasons for the waiver. The waiver may then be made only 
     after the end of the 60-day period that begins on the date on 
     which the notice is submitted to those committees, unless the 
     Secretary determines that it is essential to the national 
     security that funds be obligated for work at that center in 
     excess of that limitation before the end of such period and 
     notifies those committees of that determination and the 
     reasons for the determination.

     SEC. 227. DEMILITARIZATION OF CONVENTIONAL MUNITIONS, 
                   ROCKETS, AND EXPLOSIVES.

       (a) Establishment of Conventional Munitions, Rockets, and 
     Explosives Demilitarization Program.--The Secretary of 
     Defense shall establish an integrated program for the 
     development and demonstration of technologies for the 
     demilitarization and disposal of conventional munitions, 
     rockets, and explosives in a manner that complies with 
     applicable environmental laws.
       (b) Duration of Program.--The program established pursuant 
     to subsection (a) shall be in effect for a period of at least 
     five years, beginning with fiscal year 1997.
       (c) Funding.--Of the amount authorized to be appropriated 
     in section 201, $15,000,000 is authorized to be appropriated 
     for the program established pursuant to subsection (a). The 
     funding request for the program shall be set forth separately 
     in the budget justification documents for the budget of the 
     Department of Defense for each fiscal year during which the 
     program is in effect.
       (d) Reports.--The Secretary of Defense shall submit to 
     Congress a report on the plan for the program established 
     pursuant to subsection (a) at the same time the President 
     submits to Congress the budget for fiscal year 1998. The 
     Secretary shall submit an updated version of such report, 
     setting forth in detail the progress of the program, at the 
     same time the President submits the budget for each fiscal 
     year after fiscal year 1998 during which the program is in 
     effect.

     SEC. 228. RESEARCH ACTIVITIES OF THE DEFENSE ADVANCED 
                   RESEARCH PROJECTS AGENCY RELATING TO CHEMICAL 
                   AND BIOLOGICAL WARFARE DEFENSE TECHNOLOGY.

       (a) Authority.--Section 1701(c) of the National Defense 
     Authorization Act for Fiscal Year 1994 (Public Law 103-160; 
     107 Stat. 1853; 50 U.S.C. 1522) is amended--
       (1) by inserting ``(1)'' before ``The Secretary''; and
       (2) by adding at the end the following new paragraph:
       ``(2) The Director of the Defense Advanced Research 
     Projects Agency may conduct a program of basic and applied 
     research and advanced technology development on chemical and 
     biological warfare defense technologies and systems. In 
     conducting such program, the Director shall seek to avoid 
     unnecessary duplication of the activities under the program 
     with chemical and biological warfare defense activities of 
     the military departments and defense agencies and shall 
     coordinate the activities under the program with those of the 
     military departments and defense agencies.''.
       (b) Funding.--Section 1701(d) of such Act is amended--
       (1) in paragraph (1), by striking out ``military 
     departments'' and inserting in lieu thereof ``Department of 
     Defense'';
       (2) in paragraph (2), by inserting after ``requests for the 
     program'' in the first sentence the following: ``(other than 
     for activities under the program conducted by the Defense 
     Advanced Research Projects Agency under subsection (c)(2))'';
       (3) by redesignating paragraph (3) as paragraph (4); and
       (4) by inserting after paragraph (2) the following new 
     paragraph (3):
       ``(3) The program conducted by the Defense Advanced 
     Research Projects Agency under subsection (c)(2) shall be set 
     forth as a separate program element in the budget of that 
     agency.''.

[[Page H8999]]

     SEC. 229. CERTIFICATION OF CAPABILITY OF UNITED STATES TO 
                   PREVENT ILLEGAL IMPORTATION OF NUCLEAR, 
                   BIOLOGICAL, AND CHEMICAL WEAPONS.

       Not later than 15 days after the date of the enactment of 
     this Act, the President shall submit to Congress a 
     certification in writing stating specifically whether or not 
     the United States has the capability (as of the date of the 
     certification) to prevent the illegal importation of nuclear, 
     biological, and chemical weapons into the United States and 
     its possessions.

     SEC. 230. NONLETHAL WEAPONS AND TECHNOLOGIES PROGRAMS.

       (a) Funding.--Of the amount authorized to be appropriated 
     under section 201(2), $15,000,000 shall be available for 
     joint service research, development, test, and evaluation of 
     nonlethal weapons and nonlethal technologies under the 
     program element established pursuant to subsection (b).
       (b) New Program Element Required.--The Secretary of Defense 
     shall establish a new program element for the funds 
     authorized to be appropriated under subsection (a). The funds 
     within that program element shall be administered by the 
     executive agent designated for joint service research, 
     development, test, and evaluation of nonlethal weapons and 
     nonlethal technologies.

     SEC. 231. COUNTERPROLIFERATION SUPPORT PROGRAM.

       (a) Funding.--Of the funds authorized to be appropriated to 
     the Department of Defense under section 201(4), $186,200,000 
     shall be available for the Counterproliferation Support 
     Program, of which $75,000,000 shall be available for a 
     tactical antisatellite technologies program.
       (b) Additional Authority To Transfer Authorizations.--(1) 
     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 1997 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.
       (2) The total amount of authorizations transferred under 
     the authority of this subsection may not exceed $50,000,000.
       (3) The authority provided by this subsection 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.
       (4) A transfer made from one account to another under the 
     authority of this subsection 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.
       (5) The Secretary of Defense shall promptly notify Congress 
     of transfers made under the authority of this subsection.
       (c) Limitation on Use of Funds for Technical Studies and 
     Analyses Pending Release of Funds.--(1) None of the funds 
     authorized to be appropriated to the Department of Defense 
     for fiscal year 1997 for program element 605104D, relating to 
     technical studies and analyses, may be obligated or expended 
     until the funds referred to in paragraph (2) have been 
     released to the program manager of the tactical anti-
     satellite technology program for implementation of that 
     program.
       (2) The funds for release referred to in paragraph (1) are 
     as follows:
       (A) Funds authorized to be appropriated by section 218(a) 
     of the National Defense Authorization Act for Fiscal Year 
     1996 (Public Law 104-106; 110 Stat. 222) that are available 
     for the program referred to in paragraph (1).
       (B) Funds authorized to be appropriated to the Department 
     for fiscal year 1997 by this Act for the Counterproliferation 
     Support Program that are to be made available for that 
     program.
             Subtitle C--Ballistic Missile Defense Programs

     SEC. 241. FUNDING FOR BALLISTIC MISSILE DEFENSE PROGRAMS FOR 
                   FISCAL YEAR 1997.

       (a) Program Amounts.--Of the amount appropriated pursuant 
     to section 201(4), the following amounts may be obligated for 
     the following systems managed by the Ballistic Missile 
     Defense Organization:
       (1) For the Theater High Altitude Area Defense (THAAD) 
     System, $621,798,000.
       (2) For the Navy Upper Tier (Theater Wide) system, 
     $304,171,000.
       (3) For the National Missile Defense System, $858,437,000.
       (4) For the Corps Surface-to-Air Missile (SAM)/Medium 
     Extended Air Defense System (MEADS) sytem, $56,200,000.
       (b) Limitation.--None of the funds appropriated or 
     otherwise made available for the Department of Defense 
     pursuant to this or any other Act may be obligated or 
     expended by the Office of the Under Secretary of Defense for 
     Acquisition and Technology for official representation 
     activities, or related activities, until the Secretary of 
     Defense certifies to Congress that--
       (1) the Secretary has made available for obligation the 
     funds provided under subsection (a) for the purposes 
     specified in that subsection and in the amounts appropriated 
     pursuant to that subsection; and
       (2) the Secretary has included the Navy Upper Tier theater 
     missile defense system in the theater missile defense core 
     program.
       (c) Limitations.--Not more than $15,000,000 of the amount 
     available for the Corps SAM/MEADS program under subsection 
     (a) may be obligated until the Secretary of Defense submits 
     to the congressional defense committees the following:
       (1) An initial program estimate for the Corps SAM/MEADS 
     program, including a tentative schedule of major milestones 
     and an estimate of the total program cost through initial 
     operational capability.
       (2) A report on the options associated with the use of 
     existing systems, technologies, and program management 
     mechanisms to satisfy the requirement for the Corps surface-
     to-air missile, including an assessment of cost and schedule 
     implications in relation to the program estimate submitted 
     under paragraph (1).
       (3) A certification that there will be no increase in 
     overall United States funding commitment to the project 
     definition and validation phase of the Corps SAM/MEADS 
     program as a result of the withdrawal of France from 
     participation in the program.

     SEC. 242. CERTIFICATION OF CAPABILITY OF UNITED STATES TO 
                   DEFEND AGAINST SINGLE BALLISTIC MISSILE.

       Not later than 15 days after the date of the enactment of 
     this Act, the President shall submit to Congress a 
     certification in writing stating specifically whether or not 
     the United States has the military capability (as of the time 
     of the certification) to intercept and destroy a single 
     ballistic missile launched at the territory of the United 
     States.

     SEC. 243. REPORT ON BALLISTIC MISSILE DEFENSE AND 
                   PROLIFERATION.

       The Secretary of Defense shall submit to Congress a report 
     on ballistic missile defense and the proliferation of weapons 
     of mass destruction, including nuclear, chemical, and 
     biological weapons, and the missiles that can be used to 
     deliver them. The report shall be submitted not later than 
     December 31, 1996, and shall include the following:
       (1) An assessment of how United States theater missile 
     defenses contribute to United States efforts to prevent 
     proliferation, including an evaluation of the specific effect 
     United States theater missile defense systems can have on 
     dissuading other states from acquiring ballistic missiles.
       (2) An assessment of how United States national missile 
     defenses contribute to United States efforts to prevent 
     proliferation.
       (3) An assessment of the effect of the lack of national 
     missile defenses on the desire of other states to acquire 
     ballistic missiles and an evaluation of the types of missiles 
     other states might seek to acquire as a result.
       (4) A detailed review of the linkages between missile 
     defenses (both theater and national) and each of the 
     categories of counterproliferation activities identified by 
     the Secretary of Defense as part of the Defense 
     Counterproliferation Initiative announced by the Secretary in 
     December 1993.
       (5) A description of how theater and national ballistic 
     missile defenses can augment the effectiveness of other 
     counterproliferation tools.

     SEC. 244. REVISION TO ANNUAL REPORT ON BALLISTIC MISSILE 
                   DEFENSE PROGRAM.

       Section 224(b) of the National Defense Authorization Act 
     for Fiscal Years 1990 and 1991 (10 U.S.C. 2431 note) is 
     amended--
       (1) by striking out paragraphs (3), (4), and (10);
       (2) by redesignating paragraphs (5) and (6) as paragraphs 
     (3) and (4), respectively;
       (3) by redesignating paragraph (7) as paragraph (5) and in 
     that paragraph by striking out ``of the Soviet Union'' and 
     ``for the Soviet Union'';
       (4) by redesignating paragraph (8) as paragraph (6); and
       (5) by redesignating paragraph (9) as paragraph (7) and in 
     that paragraph--
       (A) by striking out ``of the Soviet Union'' in subparagraph 
     (A);
       (B) by striking out subparagraphs (C) through (F); and
       (C) by redesignating subparagraph (G) as subparagraph (C).

     SEC. 245. REPORT ON AIR FORCE NATIONAL MISSILE DEFENSE PLAN.

       Not later than 120 days after the date of the enactment of 
     this Act, the Secretary of Defense shall submit to the 
     Committee on Armed Services of the Senate and the Committee 
     on National Security of the House of Representatives a report 
     on the following matters regarding the National Missile 
     Defense Plan of the Air Force:
       (1) The cost and operational effectiveness of a system that 
     could be developed pursuant to that plan.
       (2) The arms control implications of such a system.
       (3) The growth potential of such a system to meet future 
     threats.
       (4) The recommendations of the Secretary for improvements 
     to that plan.

[[Page H9000]]

     SEC. 246. CAPABILITY OF NATIONAL MISSILE DEFENSE SYSTEM.

       The Secretary of Defense shall ensure that any National 
     Missile Defense system deployed by the United States is 
     capable of defeating the threat posed by the Taepo Dong II 
     missile of North Korea.

     SEC. 247. ACTIONS TO LIMIT ADVERSE EFFECTS ON PRIVATE SECTOR 
                   EMPLOYMENT OF ESTABLISHMENT OF NATIONAL MISSILE 
                   DEFENSE JOINT PROGRAM OFFICE.

       The Secretary of Defense shall take such actions as are 
     necessary in connection with the establishment of the 
     National Missile Defense Joint Program Office within the 
     Ballistic Missile Defense Organization to ensure that the 
     establishment of that office does not make it necessary for a 
     Federal Government contractor to reduce significantly the 
     number of persons employed by that contractor for supporting 
     the national missile defense development program at any 
     particular location outside the National Capital Region (as 
     defined in section 2674(f)(2) of title 10, United States 
     Code).

     SEC. 248. ABM TREATY DEFINED.

       For purposes of this subtitle, 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, and signed at Moscow on May 
     26, 1972, and includes the Protocols to that Treaty, signed 
     at Moscow on July 3, 1974.
                       Subtitle D--Other Matters

     SEC. 261. MAINTENANCE AND REPAIR AT AIR FORCE INSTALLATIONS.

       (a) Allocation of Funds.--The Secretary of the Air Force 
     shall allocate funds authorized to be appropriated by this 
     title and title III of this Act for maintenance and repair of 
     real property at military installations of the Department of 
     the Air Force without regard to whether the installation is 
     supported with funds authorized by this title or title III of 
     this Act.
       (b) Mixing of Funds Prohibited on Individual Projects.--The 
     Secretary of the Air Force may not combine funds authorized 
     to be appropriated by this title and funds authorized to be 
     appropriated by title III for an individual project for 
     maintenance and repair of real property at a military 
     installation of the Department of the Air Force.

     SEC. 262. REPORT RELATING TO SMALL BUSINESS INNOVATION 
                   RESEARCH PROGRAM.

       Not later than March 30, 1997, the Comptroller General 
     shall submit to Congress and to the Secretary of Defense a 
     report setting forth the following with respect to the Small 
     Business Innovation Research Program (as defined by section 
     2491(11) of title 10, United States Code):
       (1) An assessment of whether there has been a demonstrable 
     reduction in the quality of research performed under funding 
     agreements awarded by the Department of Defense under the 
     program since fiscal year 1995.
       (2) An assessment of the degree to which competitive 
     procedures are being followed throughout the military 
     departments and defense agencies in awarding funding 
     agreements under the program.
       (3) An assessment of the degree to which technologies 
     developed through the program are or are likely to be used in 
     military projects and programs.

     SEC. 263. AMENDMENT TO UNIVERSITY RESEARCH INITIATIVE SUPPORT 
                   PROGRAM.

       Section 802(c) of the National Defense Authorization Act 
     for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1701; 10 
     U.S.C. 2358 note) is amended by striking out ``fiscal years 
     before the fiscal year in which the institution submits a 
     proposal'' and inserting in lieu thereof ``most recent fiscal 
     years for which complete statistics are available when 
     proposals are requested''.

     SEC. 264. AMENDMENTS TO DEFENSE EXPERIMENTAL PROGRAM TO 
                   STIMULATE COMPETITIVE RESEARCH.

       Section 257(d) of the National Defense Authorization Act 
     for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2705; 10 
     U.S.C. 2358 note) is amended--
       (1) in paragraph (1)--
       (A) by striking out ``Director of the National Science 
     Foundation'' and inserting in lieu thereof ``Under Secretary 
     of Defense for Acquisition and Technology''; and
       (B) by striking out ``and shall notify the Director of 
     Defense Research and Engineering of the States so 
     designated''; and
       (2) in paragraph (2)--
       (A) in the matter preceding subparagraph (A)--
       (i) by striking out ``Director of the National Science 
     Foundation'' and inserting in lieu thereof ``Under Secretary 
     of Defense for Acquisition and Technology''; and
       (ii) by striking out ``as determined by the Director'' and 
     inserting in lieu thereof ``as determined by the Under 
     Secretary'';
       (B) in subparagraph (A), by striking out ``(to be 
     determined in consultation with the Secretary of Defense);'' 
     and inserting in lieu thereof ``; and'';
       (C) by striking out ``; and'' at the end of subparagraph 
     (B) and inserting in lieu thereof a period; and
       (D) by striking out subparagraph (C).

     SEC. 265. ELIMINATION OF REPORT ON THE USE OF COMPETITIVE 
                   PROCEDURES FOR THE AWARD OF CERTAIN CONTRACTS 
                   TO COLLEGES AND UNIVERSITIES.

       Section 2361 of title 10, United States Code, is amended by 
     striking out subsection (c).

     SEC. 266. PILOT PROGRAM FOR TRANSFER OF DEFENSE TECHNOLOGY 
                   INFORMATION TO PRIVATE INDUSTRY.

       (a) Program Required.--The Secretary of Defense shall carry 
     out a pilot program to demonstrate online transfers of 
     information on defense technologies to businesses in the 
     private sector through an interactive data network involving 
     Small Business Development Centers of institutions of higher 
     education.
       (b) Computerized Data Base of Defense Technologies.--(1) 
     Under the pilot program, the Secretary shall enter into an 
     agreement with the head of an eligible institution of higher 
     education that provides for such institution--
       (A) to develop and maintain a computerized data base of 
     information on defense technologies;
       (B) to make such information available online to--
       (i) businesses; and
       (ii) other institutions of higher education entering into 
     partnerships with the Secretary under subsection (c).
       (2) The online accessibility may be established by means of 
     any of, or any combination of, the following:
       (A) Digital teleconferencing.
       (B) International Signal Digital Network lines.
       (C) Direct modem hookup.
       (c) Partnership Network.--Under the pilot program, the 
     Secretary shall seek to enter into agreements with the heads 
     of several eligible institutions of higher education having 
     strong business education programs to provide for the 
     institutions of higher education entering into such 
     agreements--
       (1) to establish interactive computer links with the data 
     base developed and maintained under subsection (b); and
       (2) to assist the Secretary in making information on 
     defense technologies available online to the broadest 
     practicable number, types, and sizes of businesses.
       (d) Eligible Institutions.--For the purposes of this 
     section, an institution of higher education is eligible to 
     enter into an agreement under subsection (b) or (c) if the 
     institution has a Small Business Development Center.
       (e) Defense Technologies Covered.--(1) The Secretary shall 
     designate the technologies to be covered by the pilot program 
     from among the existing and experimental technologies that 
     the Secretary determines--
       (A) are useful in meeting Department of Defense needs; and
       (B) should be made available under the pilot program to 
     facilitate the satisfaction of such needs by private sector 
     sources.
       (2) Technologies covered by the program should include 
     technologies useful for defense purposes that can also be 
     used for nondefense purposes (without or without 
     modification).
       (f) Definitions.--In this section:
       (1) The term ``Small Business Development Center'' means a 
     small business development center established pursuant to 
     section 21 of the Small Business Act (15 U.S.C. 648).
       (2) The term ``defense technology'' means a technology 
     designated by the Secretary of Defense under subsection (d).
       (3) The term ``partnership'' means an agreement entered 
     into under subsection (c).
       (g) Termination of Pilot Program.--The pilot program shall 
     terminate one year after the Secretary enters into an 
     agreement under subsection (b).
       (h) Authorization of Appropriations.--Of the amount 
     authorized to be appropriated under section 201(4) for 
     university research initiatives, $3,000,000 is available for 
     the pilot program.

     SEC. 267. RESEARCH UNDER TRANSACTIONS OTHER THAN CONTRACTS 
                   AND GRANTS.

       (a) Conditions for Use of Authority.--Subsection (e) of 
     section 2371 of title 10, United States Code, is amended--
       (1) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B);
       (2) by inserting ``and'' after the semicolon at the end of 
     subparagraph (A), as so redesignated;
       (3) by striking out ``; and'' at the end of subparagraph 
     (B), as so redesignated, and inserting in lieu thereof a 
     period;
       (4) by inserting ``(1)'' after ``(e) Conditions.--''; and
       (5) by striking out paragraph (3) and inserting in lieu 
     thereof the following:
       ``(2) A cooperative agreement containing a clause under 
     subsection (d) or a transaction authorized by subsection (a) 
     may be used for a research project when the use of a standard 
     contract, grant, or cooperative agreement for such project is 
     not feasible or appropriate.''.
       (b) Revised Requirement for Annual Report.--Section 2371 of 
     such title is amended by striking out subsection (h) and 
     inserting in lieu thereof the following:
       ``(h) Annual Report.--(1) Not later than 90 days after the 
     end of each fiscal year, 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 use by the Department of 
     Defense during such fiscal year of--
       ``(A) cooperative agreements authorized under section 2358 
     of this title that contain a clause under subsection (d); and
       ``(B) transactions authorized by subsection (a).
       ``(2) The report shall include, with respect to the 
     cooperative agreements and other

[[Page H9001]]

     transactions covered by the report, the following:
       ``(A) The technology areas in which research projects were 
     conducted under such agreements or other transactions.
       ``(B) The extent of the cost-sharing among Federal 
     Government and non-Federal sources.
       ``(C) The extent to which the use of the cooperative 
     agreements and other transactions--
       ``(i) has contributed to a broadening of the technology and 
     industrial base available for meeting Department of Defense 
     needs; and
       ``(ii) has fostered within the technology and industrial 
     base new relationships and practices that support the 
     national security of the United States.
       ``(D) The total amount of payments, if any, that were 
     received by the Federal Government during the fiscal year 
     covered by the report pursuant to a clause described in 
     subsection (d) that was included in the cooperative 
     agreements and other transactions, and the amount of such 
     payments, if any, that were credited to each account 
     established under subsection (f).''.
       (c) Division of Section Into Distinct Provisions by Subject 
     Matter.--(1) Chapter 139 of title 10, United States Code, is 
     amended--
       (A) by inserting before the last subsection of section 2371 
     (relating to cooperative research and development agreements 
     under the Stevenson-Wydler Technology Innovation Act of 1980) 
     the following:

     ``Sec. 2371a. Cooperative research and development agreements 
       under Stevenson-Wydler Technology Innovation Act of 1980'';

       (B) in section 2371a (as designated by the amendment made 
     by subparagraph (A)), by striking out ``(i) Cooperative 
     Research and Development Agreements Under Stevenson-Wydler 
     Technology Innovation Act of 1980.--''; and
       (C) in the table of sections at the beginning of such 
     chapter, by inserting after the item relating to section 2371 
     the following:
``2371a. Cooperative research and development agreements under 
              Stevenson-Wydler Technology Innovation Act of 1980.''.
       (2) Section 2358(d) of such title is amended by striking 
     out ``section 2371'' and inserting in lieu thereof ``sections 
     2371 and 2371a''.

     SEC. 268. DESALTING TECHNOLOGIES.

       (a) Findings.--Congress makes the following findings:
       (1) Access to scarce fresh water is likely to be a cause of 
     future military conflicts in the Middle East and has a direct 
     impact on stability and security in the region.
       (2) The Middle East is an area of vital and strategic 
     importance to the United States.
       (3) The United States has played a military role in the 
     Middle East, most recently in the Persian Gulf War, and may 
     likely be called upon again to deter aggression in the 
     region.
       (4) United States troops have used desalting technologies 
     to guarantee the availability of fresh water in past 
     deployments in the Middle East.
       (5) Adequate, efficient, and cheap access to high-quality 
     fresh water will be vital to maintaining the readiness and 
     sustainability of troops of both the United States and its 
     allies.
       (b) Sense of Congress.--It is the sense of Congress that, 
     as improved access to fresh water will be an important factor 
     in helping prevent future conflicts in the Middle East, the 
     United States should, in cooperation with its allies, promote 
     and invest in technologies to reduce the costs of converting 
     saline water into fresh water.
       (c) Funding for Research and Development.--Of the amounts 
     authorized to be appropriated by this title, the Secretary 
     shall place greater emphasis on making funds available for 
     research and development into efficient and economical 
     processes and methods for converting saline water into fresh 
     water.

     SEC. 269. EVALUATION OF DIGITAL VIDEO NETWORK EQUIPMENT USED 
                   IN OLYMPIC GAMES.

       (a) Evaluation.--The Secretary of Defense shall evaluate 
     the digital video network equipment used in the 1996 Olympic 
     games to determine whether such equipment would be the most 
     appropriate equipment for use as a test bed for the military 
     application of commercial off-the-shelf advanced technology 
     linking multiple continents, multiple satellites, and 
     multiple theaters of operations by compressed digital audio 
     and visual broadcasting technology.
       (b) Report.--Not later than April 1, 1997, the Secretary of 
     Defense shall submit to Congress a report on the results of 
     the evaluation conducted under subsection (a).

     SEC. 270. ANNUAL JOINT WARFIGHTING SCIENCE AND TECHNOLOGY 
                   PLAN.

       (a) Annual Plan Required.--On March 1 of each year, the 
     Secretary of Defense shall submit to the Committee on Armed 
     Services of the Senate and the Committee on National Security 
     of the House of Representatives a plan for ensuring that the 
     science and technology program of the Department of Defense 
     supports the development of the future joint warfighting 
     capabilities identified as priority requirements for the 
     Armed Forces.
       (b) First Plan.--The first plan under subsection (a) shall 
     be submitted not later than March 1, 1997.
         Subtitle E--National Oceanographic Partnership Program

     SEC. 281. FINDINGS.

       Congress finds the following:
       (1) The oceans and coastal areas of the United States are 
     among the Nation's most valuable natural resources, making 
     substantial contributions to economic growth, quality of 
     life, and national security.
       (2) Oceans drive global and regional climate. Hence, they 
     contain information affecting agriculture, fishing, and the 
     prediction of severe weather.
       (3) Understanding of the oceans through basic and applied 
     research is essential for using the oceans wisely and 
     protecting their limited resources. Therefore, the United 
     States should maintain its world leadership in oceanography 
     as one key to its competitive future.
       (4) Ocean research and education activities take place 
     within Federal agencies, academic institutions, and industry. 
     These entities often have similar requirements for research 
     facilities, data, and other resources (such as oceanographic 
     research vessels).
       (5) The need exists for a formal mechanism to coordinate 
     existing partnerships and establish new partnerships for the 
     sharing of resources, intellectual talent, and facilities in 
     the ocean sciences and education, so that optimal use can be 
     made of this most important natural resource for the well-
     being of all Americans.

     SEC. 282. NATIONAL OCEANOGRAPHIC PARTNERSHIP PROGRAM.

       (a) Program Required.--(1) Subtitle C of title 10, United 
     States Code, is amended by adding after chapter 663 the 
     following new chapter:

       ``CHAPTER 665--NATIONAL OCEANOGRAPHIC PARTNERSHIP PROGRAM

``Sec.
``7901. National Oceanographic Partnership Program.
``7902. National Ocean Research Leadership Council.
``7903. Ocean Research Advisory Panel.

     ``Sec. 7901. National Oceanographic Partnership Program

       ``(a) Establishment.--The Secretary of the Navy shall 
     establish a program to be known as the `National 
     Oceanographic Partnership Program'.
       ``(b) Purposes.--The purposes of the program are as 
     follows:
       ``(1) To promote the national goals of assuring national 
     security, advancing economic development, protecting quality 
     of life, and strengthening science education and 
     communication through improved knowledge of the ocean.
       ``(2) To coordinate and strengthen oceanographic efforts in 
     support of those goals by--
       ``(A) identifying and carrying out partnerships among 
     Federal agencies, academia, industry, and other members of 
     the oceanographic scientific community in the areas of data, 
     resources, education, and communication; and
       ``(B) reporting annually to Congress on the program.

     ``Sec. 7902. National Ocean Research Leadership Council

       ``(a) Council.--There is a National Ocean Research 
     Leadership Council (hereinafter in this chapter referred to 
     as the `Council').
       ``(b) Membership.--The Council is composed of the following 
     members:
       ``(1) The Secretary of the Navy.
       ``(2) The Administrator of the National Oceanic and 
     Atmospheric Administration.
       ``(3) The Director of the National Science Foundation.
       ``(4) The Administrator of the National Aeronautics and 
     Space Administration.
       ``(5) The Deputy Secretary of Energy.
       ``(6) The Administrator of the Environmental Protection 
     Agency.
       ``(7) The Commandant of the Coast Guard.
       ``(8) The Director of the Geological Survey of the 
     Department of the Interior.
       ``(9) The Director of the Defense Advanced Research 
     Projects Agency.
       ``(10) The Director of the Minerals Management Service of 
     the Department of the Interior.
       ``(11) The President of the National Academy of Sciences, 
     the President of the National Academy of Engineering, and the 
     President of the Institute of Medicine.
       ``(12) The Director of the Office of Science and 
     Technology.
       ``(13) The Director of the Office of Management and Budget.
       ``(14) One member appointed by the chairman from among 
     individuals who will represent the views of ocean industries.
       ``(15) One member appointed by the chairman from among 
     individuals who will represent the views of State 
     governments.
       ``(16) One member appointed by the chairman from among 
     individuals who will represent the views of academia.
       ``(17) One member appointed by the chairman from among 
     individuals who will represent such other views as the 
     chairman considers appropriate.
       ``(c) Chairman and Vice Chairman.--(1) Except as provided 
     in paragraph (2), the chairman and vice chairman of the 
     Council shall be appointed every two years by a selection 
     committee of the Council composed of, at a minimum, the 
     Secretary of the Navy, the Administrator of the National 
     Oceanic and Atmospheric Administration, and the Director of 
     the National Science Foundation. The term of office of the 
     chairman and vice chairman shall be two years. A person who 
     has previously served as chairman or vice chairman may be 
     reappointed.
       ``(2) The first chairman of the Council shall be the 
     Secretary of the Navy. The first vice chairman of the Council 
     shall be the Administrator of the National Oceanic and 
     Atmospheric Administration.

[[Page H9002]]

       ``(d) Term of Office.--The term of office of a member of 
     the Council appointed under paragraph (14), (15), (16), or 
     (17) of subsection (b) shall be two years, except that any 
     person appointed to fill a vacancy occurring before the 
     expiration of the term for which his predecessor was 
     appointed shall be appointed for the remainder of such term.
       ``(e) Responsibilities.--The Council shall have the 
     following responsibilities:
       ``(1) To prescribe policies and procedures to implement the 
     National Oceanographic Partnership Program.
       ``(2) To review, select, and identify and allocate funds 
     for partnership projects for implementation under the 
     program, based on the following criteria:
       ``(A) Whether the project addresses critical research 
     objectives or operational goals, such as data accessibility 
     and quality assurance, sharing of resources, education, or 
     communication.
       ``(B) Whether the project has, or is designed to have, 
     broad participation within the oceanographic community.
       ``(C) Whether the partners have a long-term commitment to 
     the objectives of the project.
       ``(D) Whether the resources supporting the project are 
     shared among the partners.
       ``(E) Whether the project has been subjected to adequate 
     peer review.
       ``(3) To assess whether there is a need for a facility (or 
     facilities) to provide national centralization of 
     oceanographic data, and to establish such a facility or 
     facilities if determined necessary. In conducting the 
     assessment, the Council shall review, at a minimum, the 
     following:
       ``(A) The need for a national oceanographic data center.
       ``(B) The need for a national coastal data center.
       ``(C) Accessibility by potential users of such centers.
       ``(D) Preexisting facilities and expertise.
       ``(f) Annual Report.--Not later than March 1 of each year, 
     the Council shall submit to Congress a report on the National 
     Oceanographic Partnership Program. The report shall contain 
     the following:
       ``(1) A description of activities of the program carried 
     out during the fiscal year before the fiscal year in which 
     the report is prepared, together with a list of the members 
     of the Ocean Research Advisory Panel and any working groups 
     in existence during the fiscal year covered.
       ``(2) A general outline of the activities planned for the 
     program during the fiscal year in which the report is 
     prepared.
       ``(3) A summary of projects continued from the fiscal year 
     before the fiscal year in which the report is prepared and 
     projects expected to be started during the fiscal year in 
     which the report is prepared and during the following fiscal 
     year.
       ``(4) A description of the involvement of the program with 
     Federal interagency coordinating entities.
       ``(5) The amounts requested, in the budget submitted to 
     Congress pursuant to section 1105(a) of title 31, for the 
     fiscal year following the fiscal year in which the report is 
     prepared, for the programs, projects, and activities of the 
     program and the estimated expenditures under such programs, 
     projects, and activities during such following fiscal year.
       ``(g) Partnership Program Office.--(1) The Council shall 
     establish a partnership program office for the National 
     Oceanographic Partnership Program. The Council shall use 
     competitive procedures in selecting an operator for the 
     partnership program office.
       ``(2) The Council shall assign the following duties to the 
     partnership program office:
       ``(A) To establish and oversee working groups to propose 
     partnership projects to the Council and advise the Council on 
     such projects.
       ``(B) To manage the process for proposing partnership 
     projects to the Council, including managing peer review of 
     such projects.
       ``(C) To submit to the Council an annual report on the 
     status of all partnership projects and activities of the 
     office.
       ``(D) Any additional duties for the administration of the 
     National Oceanographic Partnership Program that the Council 
     considers appropriate.
       ``(3) The Council shall supervise the performance of duties 
     by the partnership program office.
       ``(h) Contract and Grant Authority.--The Council may 
     authorize one or more of the departments or agencies 
     represented on the Council to enter into contracts and make 
     grants, using funds appropriated pursuant to an authorization 
     of appropriations for the National Oceanographic Partnership 
     Program, for the purpose of implementing the program and 
     carrying out the responsibilities of the Council.
       ``(i) Establishment and Forms of Partnership Projects.--(1) 
     A partnership project under the National Oceanographic 
     Partnership Program may be established by any instrument that 
     the Council considers appropriate, including a memorandum of 
     understanding, a cooperative research and development 
     agreement, and any similar instrument.
       ``(2) Projects under the program may include demonstration 
     projects.

     ``Sec. 7903. Ocean Research Advisory Panel

       ``(a) Establishment.--The Council shall establish an Ocean 
     Research Advisory Panel consisting of not less than 10 and 
     not more than 18 members appointed by the Council from among 
     persons eminent in the fields of marine science or marine 
     policy, or related fields, and who are representative, at a 
     minimum, of the interests of government, academia, and 
     industry.
       ``(b) Responsibilities.--The Council shall assign to the 
     Advisory Panel responsibilities that the Council considers 
     appropriate.''.
       (2) The table of chapters at the beginning of subtitle C of 
     title 10, United States Code, and the table of chapters at 
     the beginning of part IV of such subtitle, are each amended 
     by inserting after the item relating to chapter 663 the 
     following:
``665. National Oceanographic Partnership Program...........7901''.....

       (b) Initial Appointments of Council Members.--The Secretary 
     of the Navy shall make the appointments required by section 
     7902(b) of title 10, United States Code, as added by 
     subsection (a)(1), not later than December 1, 1996.
       (c) Initial Appointments of Advisory Panel Members.--The 
     National Ocean Research Leadership Council established by 
     section 7902 of title 10, United States Code, as added by 
     subsection (a)(1), shall make the appointments required by 
     section 7903 of such title not later than January 1, 1997.
       (d) First Annual Report of National Ocean Research 
     Leadership Council.--The first annual report required by 
     section 7902(f) of title 10, United States Code, as added by 
     subsection (a)(1), shall be submitted to Congress not later 
     than March 1, 1997. The first report shall include, in 
     addition to the information required by such section, 
     information about the terms of office, procedures, and 
     responsibilities of the Ocean Research Advisory Panel 
     established by the Council.
       (e) Authorization.--(1) Of the amount authorized to be 
     appropriated to the Department of the Navy by section 201(2), 
     $13,000,000 shall be available for the National Oceanographic 
     Partnership Program established pursuant to section 7901 of 
     title 10, United States Code, as added by subsection (a)(1).
       (2) Of the amount authorized to be appropriated to the 
     Department of the Navy by section 301(2), $7,500,000 shall be 
     available for such program.
       (f) Funding for Program Office.--Of the amount appropriated 
     for the National Oceanographic Partnership Program for fiscal 
     year 1997, at least $500,000, or 3 percent of the amount 
     appropriated, whichever is greater, shall be available for 
     operations of the partnership program office established 
     pursuant to section 7902(g) of title 10, United States Code, 
     as added by subsection (a)(1), for such fiscal year.
                  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. Civil Air Patrol Corporation.
Sec. 306. Availability of additional funds for antiterrorism 
              activities.
Sec. 307. Nonlethal weapons capabilities.
Sec. 308. SR-71 contingency reconnaissance force.

                   Subtitle B--Depot-Level Activities

Sec. 311. Extension of authority for aviation depots and naval 
              shipyards to engage in defense-related production and 
              services.
Sec. 312. Test programs for modernization-through-spares.

                  Subtitle C--Environmental Provisions

Sec. 321. Defense contractors covered by requirement for reports on 
              contractor reimbursement costs for response actions.
Sec. 322. Establishment of separate environmental restoration accounts 
              for each military department.
Sec. 323. Payment of stipulated penalties assessed under CERCLA.
Sec. 324. Shipboard solid waste control.
Sec. 325. Authority to develop and implement land use plans for defense 
              environmental restoration program.
Sec. 326. Pilot program to test alternative technology for limiting air 
              emissions during shipyard blasting and coating 
              operations.
Sec. 327. Agreements for services of other agencies in support of 
              environmental technology certification.
Sec. 328. Repeal of redundant notification and consultation 
              requirements regarding remedial investigations and 
              feasibility studies at certain installations to be closed 
              under the base closure laws.
Sec. 329. Authority for agreements with Indian tribes for services 
              under environmental restoration program.
Sec. 330. Authority to withhold listing of Federal facilities on 
              National Priorities List.
Sec. 331. Clarification of meaning of uncontaminated property for 
              purposes of transfer by the United States.
Sec. 332. Conservation and cultural activities.
Sec. 333. Navy program to monitor ecological effects of organotin.

[[Page H9003]]

Sec. 334. Authority to transfer contaminated Federal property before 
              completion of required response actions.

  Subtitle D--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 341. Contracts with other agencies to provide or obtain goods and 
              services to promote efficient operation and management of 
              exchanges and morale, welfare, and recreation activities.
Sec. 342. Noncompetitive procurement of brand-name commercial items for 
              resale in commissary stores.
Sec. 343. Prohibition of sale or rental of sexually explicit material.

     Subtitle E--Performance of Functions by Private-Sector Sources

Sec. 351. Extension of requirement for competitive procurement of 
              printing and duplication services.
Sec. 352. Reporting requirements under demonstration project for 
              purchase of fire, security, police, public works, and 
              utility services from local government agencies.

                       Subtitle F--Other Matters

Sec. 361. Authority for use of appropriated funds for recruiting 
              functions.
Sec. 362. Training of members of the uniformed services at non-
              government facilities.
Sec. 363. Requirement for preparation of plan for improved operation of 
              working-capital funds and effect of failure to produce an 
              approved plan.
Sec. 364. Increase in capital asset threshold under Defense Business 
              Operations Fund.
Sec. 365. Expansion of authority to donate unusable food.
Sec. 366. Assistance to committees involved in inauguration of the 
              President.
Sec. 367. Department of Defense support for sporting events.
Sec. 368. Storage of motor vehicle in lieu of transportation.
Sec. 369. Security protections at Department of Defense facilities in 
              National Capital Region.
Sec. 370. Administration of midshipmen's store and other naval academy 
              support activities as nonappropriated fund 
              instrumentality.
Sec. 371. Reimbursement under agreement for instruction of civilian 
              students at Foreign Language Institute of the Defense 
              Language Institute.
Sec. 372. Assistance to local educational agencies that benefit 
              dependents of members of the Armed Forces and Department 
              of Defense civilian employees.
Sec. 373. Renovation of building for Defense Finance and Accounting 
              Service Center, Fort Benjamin Harrison, Indiana.
Sec. 374. Food donation pilot program at service academies.
Sec. 375. Authority of Air National Guard to provide certain services 
              at Lincoln Municipal Airport, Lincoln, Nebraska.
Sec. 376. Technical amendment regarding Impact Aid program.
              Subtitle A--Authorization of Appropriations

     SEC. 301. OPERATION AND MAINTENANCE FUNDING.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1997 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, $18,264,406,000.
       (2) For the Navy, $20,387,737,000.
       (3) For the Marine Corps, $2,421,007,000.
       (4) For the Air Force, $17,635,335,000.
       (5) For Defense-wide activities, $9,912,962,000.
       (6) For the Army Reserve, $1,136,436,000.
       (7) For the Naval Reserve, $858,927,000.
       (8) For the Marine Corps Reserve, $113,367,000.
       (9) For the Air Force Reserve, $1,499,553,000.
       (10) For the Army National Guard, $2,277,477,000.
       (11) For the Air National Guard, $2,711,173,000.
       (12) For the Defense Inspector General, $136,501,000.
       (13) For the United States Court of Appeals for the Armed 
     Forces, $6,797,000.
       (14) For Environmental Restoration, Army, $356,916,000.
       (15) For Environmental Restoration, Navy, $302,900,000.
       (16) For Environmental Restoration, Air Force, 
     $414,700,000.
       (17) For Environmental Restoration, Defense-wide, 
     $258,500,000.
       (18) For Overseas Humanitarian, Disaster, and Civic Aid 
     programs, $54,544,000.
       (19) For Drug Interdiction and Counter-drug Activities, 
     Defense-wide, $796,524,000.
       (20) For the Kaho'olawe Island Conveyance, Remediation, and 
     Environmental Restoration Trust Fund, $10,000,000.
       (21) For Medical Programs, Defense, $9,833,288,000.
       (22) For Cooperative Threat Reduction programs, 
     $364,900,000.
       (23) For Domestic Emergency Assistance programs, 
     $97,000,000.
       (24) For OPLAN 34A-35 P.O.W. payments, $20,000,000.

     SEC. 302. WORKING CAPITAL FUNDS.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1997 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 Business Operations Fund, $947,900,000.
       (2) For the National Defense Sealift Fund, $1,118,002,000.

     SEC. 303. ARMED FORCES RETIREMENT HOME.

       There is hereby authorized to be appropriated for fiscal 
     year 1997 from the Armed Forces Retirement Home Trust Fund 
     the sum of $57,300,000 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 1997 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. CIVIL AIR PATROL CORPORATION.

       (a) Funding.--Of the amount authorized to be appropriated 
     pursuant to section 301 for operation and maintenance, 
     $14,526,000 shall be available for the Civil Air Patrol 
     Corporation.
       (b) Amount for Certain Operations.--Of the amount made 
     available to the Civil Air Patrol Corporation pursuant to 
     subsection (a), not less than 25 percent of such amount shall 
     be reserved to cover the costs of search and rescue missions 
     and disaster relief missions.

     SEC. 306. AVAILABILITY OF ADDITIONAL FUNDS FOR ANTITERRORISM 
                   ACTIVITIES.

       Of the amount authorized to be appropriated pursuant to 
     section 301 for operation and maintenance, $14,000,000 shall 
     be available to the Secretary of Defense for activities 
     designed to meet the antiterrorism responsibilities of the 
     Department of Defense, including activities related to 
     intelligence support, physical security measures, and 
     education and training regarding antiterrorism. The amount 
     made available by this section is in addition to amounts 
     otherwise made available by this Act for antiterrorism 
     activities.

     SEC. 307. NONLETHAL WEAPONS CAPABILITIES.

       Of the amount authorized to be appropriated pursuant to 
     section 301, $5,000,000 shall be available for the immediate 
     procurement of nonlethal weapons capabilities to meet 
     existing deficiencies in inventories of such capabilities, of 
     which--
       (1) $2,000,000 shall be available for the Army; and
       (2) $3,000,000 shall be available for the Marine Corps.

     SEC. 308. SR-71 CONTINGENCY RECONNAISSANCE FORCE.

       Of the funds authorized to be appropriated by section 
     301(4), $30,000,000 is authorized to be made available for 
     the SR-71 contingency reconnaissance force.
                   Subtitle B--Depot-Level Activities

     SEC. 311. EXTENSION OF AUTHORITY FOR AVIATION DEPOTS AND 
                   NAVAL SHIPYARDS 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, 1996'' and inserting 
     in lieu thereof ``September 30, 1997''.

     SEC. 312. TEST PROGRAMS FOR MODERNIZATION-THROUGH-SPARES.

       Not later than 60 days after the date of the enactment of 
     this Act, the Secretary of the Army 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 steps that the Secretary has taken to ensure that each 
     program included in the modernization-through-spares program 
     of the Army is conducted in accordance with--
       (1) the competition requirements in section 2304 of title 
     10, United States, Code;
       (2) the core logistics requirements in section 2464 of such 
     title;
       (3) the public-private competition requirements in section 
     2469 of such title; and
       (4) requirements relating to contract bundling and spare 
     parts breakout in subsections (a) and (l) of section 15 of 
     the Small Business Act (15 U.S.C. 644) and regulations 
     implementing such subsections in the Defense Federal 
     Acquisition Regulation Supplement.

[[Page H9004]]

                  Subtitle C--Environmental Provisions

     SEC. 321. DEFENSE CONTRACTORS COVERED BY REQUIREMENT FOR 
                   REPORTS ON CONTRACTOR REIMBURSEMENT COSTS FOR 
                   RESPONSE ACTIONS.

       Section 2706(d)(1)(A) of title 10, United States Code, is 
     amended by striking out ``100'' and inserting in lieu thereof 
     ``20''.

     SEC. 322. ESTABLISHMENT OF SEPARATE ENVIRONMENTAL RESTORATION 
                   ACCOUNTS FOR EACH MILITARY DEPARTMENT.

       (a) Establishment.--(1) Section 2703 of title 10, United 
     States Code, is amended to read as follows:

     ``Sec. 2703. Environmental restoration accounts

       ``(a) Establishment of Accounts.--There are hereby 
     established in the Department of Defense the following 
     accounts:
       ``(1) An account to be known as the `Environmental 
     Restoration Account, Defense'.
       ``(2) An account to be known as the `Environmental 
     Restoration Account, Army'.
       ``(3) An account to be known as the `Environmental 
     Restoration Account, Navy'.
       ``(4) An account to be known as the `Environmental 
     Restoration Account, Air Force'.
       ``(b) Obligation of Authorized Amounts.--Funds authorized 
     for deposit in an account under subsection (a) may be 
     obligated or expended from the account only in order to carry 
     out the environmental restoration functions of the Secretary 
     of Defense and the Secretaries of the military departments 
     under this chapter and under any other provision of law. 
     Funds so authorized shall remain available until expended.
       ``(c) Budget Reports.--In proposing the budget for any 
     fiscal year pursuant to section 1105 of title 31, the 
     President shall set forth separately the amounts requested 
     for environmental restoration programs of the Department of 
     Defense and of each of the military departments under this 
     chapter and under any other Act.
       ``(d) Credit of Amounts Recovered.--The following amounts 
     shall be credited to the appropriate environmental 
     restoration account:
       ``(1) Amounts recovered under CERCLA for response actions.
       ``(2) Any other amounts recovered from a contractor, 
     insurer, surety, or other person to reimburse the Department 
     of Defense or a military department for any expenditure for 
     environmental response activities.
       ``(e) Payments of Fines and Penalties.--None of the funds 
     appropriated to the Environmental Restoration Account, 
     Defense, for fiscal years 1995 through 1999, or to any 
     environmental restoration account of a military department 
     for fiscal years 1997 through 1999, may be used for the 
     payment of a fine or penalty (including any supplemental 
     environmental project carried out as part of such penalty) 
     imposed against the Department of Defense or a military 
     department unless the act or omission for which the fine or 
     penalty is imposed arises out of an activity funded by the 
     environmental restoration account concerned and the payment 
     of the fine or penalty has been specifically authorized by 
     law.''.
       (2) The table of sections at the beginning of chapter 160 
     of title 10, United States Code, is amended by striking out 
     the item relating to section 2703 and inserting in lieu 
     thereof the following new item:
``2703. Environmental restoration accounts.''.
       (b) References.--Any reference to the Defense Environmental 
     Restoration Account in any Federal law, Executive Order, 
     regulation, delegation of authority, or document shall be 
     deemed to refer to the appropriate environmental restoration 
     account established under section 2703(a)(1) of title 10, 
     United States Code (as amended by subsection (a)(1)).
       (c) Conforming Amendment.--Section 2705(g)(1) of title 10, 
     United States Code, is amended by striking out ``the Defense 
     Environmental Restoration Account established'' and inserting 
     in lieu thereof ``the environmental restoration account 
     concerned''.
       (d) Treatment of Unobligated Balances.--Any unobligated 
     balances that remain in the Defense Environmental Restoration 
     Account under section 2703(a) of title 10, United States 
     Code, as of the effective date specified in subsection (e) 
     shall be transferred on such date to the Environmental 
     Restoration Account, Defense, established under section 
     2703(a)(1) of title 10, United States Code (as amended by 
     subsection (a)(1)).
       (e) Effective Date.--The amendments made by this section 
     shall take effect on the later of--
       (1) October 1, 1996; or
       (2) the date of the enactment of this Act.

     SEC. 323. PAYMENTS OF STIPULATED PENALTIES ASSESSED UNDER 
                   CERCLA.

       (a) Authority.--The Secretary of Defense may pay the 
     following:
       (1) Stipulated civil penalties, to the Hazardous Substance 
     Superfund established under section 9507 of the Internal 
     Revenue Code of 1986, in amounts, and using funds, as 
     follows:
       (A) Using funds authorized to be appropriated to the 
     Environmental Restoration Account, Army, established under 
     section 2703(a)(2) of title 10, United States Code (as 
     amended by section 322 of this Act)--
       (i) not more than $34,000 assessed against Fort Riley, 
     Kansas, under CERCLA; and
       (ii) not more than $37,500 assessed against Lake City Army 
     Ammunition Plant, Missouri, under CERCLA.
       (B) Using funds authorized to be appropriated to the 
     Environmental Restoration Account, Navy, established under 
     section 2703(a)(3) of that title, as so amended, not more 
     than $30,000 assessed against the Naval Education and 
     Training Center, Newport, Rhode Island, under CERCLA.
       (C) Using funds authorized to be appropriated to the 
     Environmental Restoration Account, Air Force, established 
     under section 2703(a)(4) of that title, as so amended--
       (i) not more than $55,000 assessed against the 
     Massachusetts Military Reservation, Massachusetts, under 
     CERCLA; and
       (ii) not more than $10,000 assessed against F.E. Warren Air 
     Force Base, Wyoming, under CERCLA.
       (2) Using funds authorized to be appropriated to the 
     Environmental Restoration Account, Air Force, established 
     under section 2703(a)(4) of that title, as so amended, not 
     more than $500,000 to carry out one environmental restoration 
     project, as part of a negotiated agreement in lieu of 
     stipulated penalties assessed under CERCLA against the 
     Massachusetts Military Reservation, Massachusetts.
       (b) CERCLA Defined.--In this section, the term ``CERCLA'' 
     means the Comprehensive Environmental Response, Compensation, 
     and Liability Act of 1980 (42 U.S.C. 9601 et seq.).

     SEC. 324. SHIPBOARD SOLID WASTE CONTROL.

       (a) In General.--Section 3(c) of the Act to Prevent 
     Pollution from Ships (33 U.S.C. 1902(c)) is amended--
       (1) in paragraph (1), by striking out ``Not later than'' 
     and inserting in lieu thereof ``Except as provided in 
     paragraphs (2) and (3), not later than''; and
       (2) by striking out paragraphs (2), (3), and (4) and 
     inserting in lieu thereof the following:
       ``(2)(A) Subject to subparagraph (B), any ship described in 
     subparagraph (C) may discharge, without regard to the special 
     area requirements of Regulation 5 of Annex V to the 
     Convention, the following non-plastic, non-floating garbage:
       ``(i) A slurry of seawater, paper, cardboard, or food waste 
     that is capable of passing through a screen with openings no 
     larger than 12 millimeters in diameter.
       ``(ii) Metal and glass that have been shredded and bagged 
     so as to ensure negative buoyancy.
       ``(B)(i) Garbage described in subparagraph (A)(i) may not 
     be discharged within 3 nautical miles of land.
       ``(ii) Garbage described in subparagraph (A)(ii) may not be 
     discharged within 12 nautical miles of land.
       ``(C) This paragraph applies to any ship that is owned or 
     operated by the Department of the Navy that, as determined by 
     the Secretary of the Navy--
       ``(i) has unique military design, construction, manning, or 
     operating requirements; and
       ``(ii) cannot fully comply with the special area 
     requirements of Regulation 5 of Annex V to the Convention 
     because compliance is not technologically feasible or would 
     impair the operations or operational capability of the ship.
       ``(3)(A) Not later than December 31, 2000, the Secretary of 
     the Navy shall prescribe and publish in the Federal Register 
     standards to ensure that each ship described in subparagraph 
     (B) is, to the maximum extent practicable without impairing 
     the operations or operational capabilities of the ship, 
     operated in a manner that is consistent with the special area 
     requirements of Regulation 5 of Annex V to the Convention.
       ``(B) Subparagraph (A) applies to surface ships that are 
     owned or operated by the Department of the Navy that the 
     Secretary plans to decommission during the period beginning 
     on January 1, 2001, and ending on December 31, 2005.
       ``(C) At the same time that the Secretary publishes 
     standards under subparagraph (A), the Secretary shall publish 
     in the Federal Register a list of the ships covered by 
     subparagraph (B).''.
       (b) Sense of Congress.--(1) It is the sense of Congress 
     that it should be an objective of the Navy to achieve full 
     compliance with Annex V to the Convention as part of the 
     Navy's development of ships that are environmentally sound.
       (2) In this subsection, the terms ``Convention'' and 
     ``ship'' have the meanings given such terms in section 2(a) 
     of the Act to Prevent Pollution from Ships (33 U.S.C. 
     1901(a)).
       (c) Report on Compliance with Annex V to the Convention.--
     The Secretary of Defense shall include in each report on 
     environmental compliance activities submitted to Congress 
     under section 2706(b) of title 10, United States Code, the 
     following information:
       (1) A list of the ship types, if any, for which the 
     Secretary of the Navy has made the determination referred to 
     in paragraph (2)(C) of section 3(c) of the Act to Prevent 
     Pollution from Ships, as amended by subsection (a)(2) of this 
     section.
       (2) A list of ship types which the Secretary of the Navy 
     has determined can comply with Regulation 5 of Annex V to the 
     Convention.
       (3) A summary of the progress made by the Navy in 
     implementing the requirements of paragraphs (2) and (3) of 
     such section 3(c), as so amended.
       (4) A description of any emerging technologies offering the 
     potential to achieve full compliance with Regulation 5 of 
     Annex V to the Convention.
       (5) The amount and nature of the discharges in special 
     areas, not otherwise authorized under the Act to Prevent 
     Pollution from Ships (33 U.S.C. 1901 et seq.), during the

[[Page H9005]]

     preceding year from ships referred to in section 3(b)(1)(A) 
     of such Act owned or operated by the Department of the Navy.
       (d) Publication Regarding Special Area Discharges.--
     Subparagraph (A) of section 3(e)(4) of the Act to Prevent 
     Pollution from Ships (33 U.S.C. 1902(e)(4)) is amended to 
     read as follows:
       ``(A) Each year, the amount and nature of the discharges in 
     special areas, not otherwise authorized under this Act, 
     during the preceding year from ships referred to in 
     subsection (b)(1)(A) of this section owned or operated by the 
     Department of the Navy.''.

     SEC. 325. AUTHORITY TO DEVELOP AND IMPLEMENT LAND USE PLANS 
                   FOR DEFENSE ENVIRONMENTAL RESTORATION PROGRAM.

       (a) Authority.--The Secretary of Defense may, to the extent 
     possible and practical, develop and implement, as part of the 
     Defense Environmental Restoration Program provided for in 
     chapter 160 of title 10, United States Code, a land use plan 
     for any defense site selected by the Secretary under 
     subsection (b).
       (b) Selection of Sites.--The Secretary may select up to 10 
     defense sites, from among sites where the Secretary is 
     planning or implementing environmental restoration 
     activities, for which land use plans may be developed under 
     this section.
       (c) Requirement to Consult with Review Committee or 
     Advisory Board.--In developing a land use plan under this 
     section, the Secretary shall consult with a technical review 
     committee established pursuant to section 2705(c) of title 
     10, United States Code, a restoration advisory board 
     established pursuant to section 2705(d) of such title, a 
     local land use redevelopment authority, or another 
     appropriate State agency.
       (d) 50-Year Planning Period.--A land use plan developed 
     under this section shall cover a period of at least 50 years.
       (e) Implementation.--For each defense site for which the 
     Secretary develops a land use plan under this section, the 
     Secretary shall take into account the land use plan in 
     selecting and implementing, in accordance with applicable 
     law, environmental restoration activities at the site.
       (f) Deadlines.--For each defense site for which the 
     Secretary intends to develop a land use plan under this 
     section, the Secretary shall develop a draft land use plan by 
     October 1, 1997, and a final land use plan by March 15, 1998.
       (g) Definition of Defense Site.--For purposes of this 
     section, the term ``defense site'' means (A) any building, 
     structure, installation, equipment, pipe or pipeline 
     (including any pipe into a sewer or publicly owned treatment 
     works), well, pit, pond, lagoon, impoundment, ditch, 
     landfill, storage container, motor vehicle, rolling stock, or 
     aircraft under the jurisdiction of the Department of Defense, 
     or (B) any site or area under the jurisdiction of the 
     Department of Defense where a hazardous substance has been 
     deposited, stored, disposed of, or placed, or otherwise come 
     to be located; but does not include any consumer product in 
     consumer use or any vessel.
       (h) Report.--In the annual report required under section 
     2706(a) of title 10, United States Code, the Secretary shall 
     include information on the land use plans developed under 
     this section and the effect such plans have had on 
     environmental restoration activities at the defense sites 
     where they have been implemented. The annual report submitted 
     in 1999 shall include recommendations on whether such land 
     use plans should be developed and implemented throughout the 
     Department of Defense.
       (i)  Savings Provisions.--(1) Nothing in this section, or 
     in a land use plan developed under this section with respect 
     to a defense site, shall be construed as requiring any 
     modification to a land use plan that was developed before the 
     date of the enactment of this Act.
       (2) Nothing in this section may be construed to affect 
     statutory requirements for an environmental restoration or 
     waste management activity or project or to modify or 
     otherwise affect applicable statutory or regulatory 
     environmental restoration and waste management requirements, 
     including substantive standards intended to protect public 
     health and the environment, nor shall anything in this 
     section be construed to preempt or impair any local land use 
     planning or zoning authority or State authority.

     SEC. 326. PILOT PROGRAM TO TEST ALTERNATIVE TECHNOLOGY FOR 
                   LIMITING AIR EMISSIONS DURING SHIPYARD BLASTING 
                   AND COATING OPERATIONS.

       (a) Determination by Secretary of the Navy.--(1) The 
     Secretary of the Navy shall make a determination whether the 
     alternative technology described in paragraph (2) has the 
     clear potential for significant benefit to the Navy. The 
     Secretary shall submit to Congress a notification in writing 
     of the determination not later than 60 days after the date of 
     the enactment of this Act.
       (2) The technology referred to in paragraph (1) is an 
     alternative technology designed to capture and destroy or 
     remove particulate emissions and volatile air pollutants that 
     occur during abrasive blasting and coating operations at 
     naval shipyards.
       (b) Pilot Program.--If the determination made under 
     subsection (a)(1) is in the affirmative, the Secretary shall 
     establish a pilot program to test the alternative technology. 
     In conducting the test, the Secretary shall seek to 
     demonstrate whether the technology is valid, cost effective, 
     and in compliance with environmental laws and regulations.
       (c) Report.--Upon completion of the test conducted under 
     the pilot program, the Secretary shall submit to the 
     Committee on Armed Services of the Senate and the Committee 
     on National Security of the House of Representatives a report 
     setting forth in detail the results of the test. The report 
     shall include recommendations on whether the alternative 
     technology merits implementation at naval shipyards and such 
     other recommendations as the Secretary considers appropriate.

     SEC. 327. AGREEMENTS FOR SERVICES OF OTHER AGENCIES IN 
                   SUPPORT OF ENVIRONMENTAL TECHNOLOGY 
                   CERTIFICATION.

       (a) Authority.--Subject to subsection (b), the Secretary of 
     Defense may enter into a cooperative agreement with an agency 
     of a State or local government to obtain assistance in 
     certifying environmental technologies.
       (b) Limitations.--The Secretary of Defense may enter into a 
     cooperative agreement with respect to an environmental 
     technology under subsection (a) only if the Secretary 
     determines--
       (1) that the technology has clear potential to be of 
     significant value to the Department of Defense in carrying 
     out its environmental restoration activities; and
       (2) that there is no reasonably available market in the 
     private sector for the technology without a certification by 
     the Department of Defense, the Environmental Protection 
     Agency, or a State environmental agency.
       (c) Types of Assistance.-- The types of assistance that may 
     be obtained under subsection (a) include the following:
       (1) Data collection and analysis.
       (2) Technical assistance in conducting a demonstration of 
     an environmental technology, including the implementation of 
     quality assurance and quality control programs.
       (d) Report.--In the annual report required under section 
     2706(a) of title 10, United States Code, the Secretary of 
     Defense shall include the following information with respect 
     to cooperative agreements entered into under this section:
       (1) The number of such agreements.
       (2) The number of States in which such agreements have been 
     entered into.
       (3) A description of the nature of the technology involved 
     in each such agreement.
       (4) The amount of funds obligated or expended by the 
     Department of Defense for each such agreement during the year 
     covered by the report.
       (e) Termination of Authority.--The authority provided under 
     subsection (a) shall terminate five years after the date of 
     the enactment of this Act.

     SEC. 328. REPEAL OF REDUNDANT NOTIFICATION AND CONSULTATION 
                   REQUIREMENTS REGARDING REMEDIAL INVESTIGATIONS 
                   AND FEASIBILITY STUDIES AT CERTAIN 
                   INSTALLATIONS TO BE CLOSED UNDER THE BASE 
                   CLOSURE LAWS.

       Section 334 of the National Defense Authorization Act for 
     Fiscal Years 1992 and 1993 (Public Law 102-190; 105 Stat. 
     1340; 10 U.S.C. 2687 note) is repealed.

     SEC. 329. AUTHORITY FOR AGREEMENTS WITH INDIAN TRIBES FOR 
                   SERVICES UNDER ENVIRONMENTAL RESTORATION 
                   PROGRAM.

       Section 2701(d) of title 10, United States Code, is 
     amended--
       (1) in the first sentence of paragraph (1), by striking out 
     ``, or with any State or local government agency,'' and 
     inserting in lieu thereof ``, with any State or local 
     government agency, or with any Indian tribe,''; and
       (2) by adding at the end the following:
       ``(3) Definition.--In this subsection, the term `Indian 
     tribe' has the meaning given such term in section 101(36) of 
     the Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9601(36)).''.

     SEC. 330. AUTHORITY TO WITHHOLD LISTING OF FEDERAL FACILITIES 
                   ON NATIONAL PRIORITIES LIST.

       Section 120(d) of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9620(d)) 
     is amended--
       (1) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively;
       (2) by striking out ``Not later than 18 months after the 
     enactment of the Superfund Amendments and Reauthorization Act 
     of 1986, the Administrator'' and inserting in lieu thereof 
     the following:
       ``(1) In general.--The Administrator'';
       (3) by moving the remainder of the text of paragraph (1), 
     as designated by paragraph (2) of this section (including 
     subparagraphs (A) and (B), as redesignated by paragraph (1) 
     of this section) 2 ems to the right; and
       (4) by striking out ``Such criteria'' and all that follows 
     through the end of the subsection and inserting in lieu 
     thereof the following:
       ``(2) Application of criteria.--
       ``(A) In general.--Subject to subparagraph (B), the 
     criteria referred to in paragraph (1) shall be applied in the 
     same manner as the criteria are applied to facilities that 
     are owned or operated by persons other than the United 
     States.
       ``(B) Response under other law.--It shall be an appropriate 
     factor to be taken into consideration for the purposes of 
     section 105(a)(8)(A) that the head of the department, agency, 
     or instrumentality that owns or operates a facility has 
     arranged with the Administrator or appropriate State 
     authorities

[[Page H9006]]

     to respond appropriately, under authority of a law other than 
     this Act, to a release or threatened release of a hazardous 
     substance.
       ``(3) Completion.--Evaluation and listing under this 
     subsection shall be completed in accordance with a reasonable 
     schedule established by the Administrator.''.

     SEC. 331. CLARIFICATION OF MEANING OF UNCONTAMINATED PROPERTY 
                   FOR PURPOSES OF TRANSFER BY THE UNITED STATES.

       Section 120(h)(4)(A) of the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
     9620(h)(4)(A)) is amended in the first sentence by striking 
     out ``stored for one year or more, known to have been 
     released,'' and inserting in lieu thereof ``known to have 
     been released''.

     SEC. 332. CONSERVATION AND CULTURAL ACTIVITIES.

       (a) In General.--(1) Chapter 159 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 2694. Conservation and cultural activities

       ``(a) Establishment.--The Secretary of Defense may 
     establish and carry out a program to conduct and manage in a 
     coordinated manner the conservation and cultural activities 
     described in subsection (b).
       ``(b) Activities.--(1) A conservation or cultural activity 
     eligible for the program that the Secretary establishes under 
     subsection (a) is any activity--
       ``(A) that has regional or Department of Defense-wide 
     significance and that involves more than one military 
     department;
       ``(B) that is necessary to meet legal requirements or to 
     support military operations;
       ``(C) that can be more effectively managed at the 
     Department of Defense level; and
       ``(D) for which no executive ageny has been designated 
     responsible by the Secretary.
       ``(2) Such activities include the following:
       ``(A) The development of ecosystem-wide land management 
     plans.
       ``(B) The conduct of wildlife studies to ensure the safety 
     of military operations.
       ``(C) The identification and return of Native American 
     human remains and cultural items in the possession or control 
     of the Department of Defense, or discovered on land under the 
     jurisdiction of the Department, to the appropriate Native 
     American tribes.
       ``(D) The control of invasive species that may hinder 
     military activities or degrade military training ranges.
       ``(E) The establishment of a regional curation system for 
     artifacts found on military installations.
       ``(c) Cooperative Agreements.--The Secretary may negotiate 
     and enter into cooperative agreements with public and private 
     agencies, organizations, institutions, individuals, or other 
     entities to carry out the program established under 
     subsection (a).
       ``(d) Effect on Other Laws.--Nothing in this section shall 
     be construed or interpreted as preempting any otherwise 
     applicable Federal, State, or local law or regulation 
     relating to the management of natural and cultural resources 
     on military installations.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:
``2694. Conservation and cultural activities.''.
       (b) Effective Date.--Section 2694 of title 10, United 
     States Code, as added by subsection (a), shall take effect on 
     October 1, 1996.

     SEC. 333. NAVY PROGRAM TO MONITOR ECOLOGICAL EFFECTS OF 
                   ORGANOTIN.

       (a) Monitoring Requirement.--The Secretary of the Navy 
     shall, in consultation with the Administrator of the 
     Environmental Protection Agency, develop and implement a 
     program to monitor the concentrations of organotin in the 
     water column, sediments, and aquatic organisms of 
     representative estuaries and near-coastal waters in the 
     United States, as described in section 7(a) of the Organotin 
     Antifouling Paint Control Act of 1988 (33 U.S.C. 2406(a)). 
     The program shall be designed to produce high-quality data to 
     enable the Environmental Protection Agency to develop water 
     quality criteria concerning organotin compounds.
       (b) Funding.--The Administrator of the Environmental 
     Protection Agency shall provide, in advance, such sums as are 
     necessary to the Secretary of the Navy for the costs of 
     developing and implementing the program under subsection (a).
       (c) Written Agreement.--The Secretary of the Navy and the 
     Administrator of the Environmental Protection Agency shall 
     enter into a written agreement setting forth the actions that 
     the Secretary plans to take under subsection (a) and the 
     funding that the Administrator agrees to provide under 
     subsection (b). If the Secretary determines that the 
     Administrator will not enter into such an agreement, the 
     Secretary shall notify the Committee on National Security of 
     the House of Representatives and the Committee on Armed 
     Services of the Senate not later than 30 days after such 
     determination.
       (d) Nonimpairment of Mission.--Compliance with subsection 
     (a) shall be conducted in such a manner so as not to impair 
     the ability of the Department of the Navy to meet its 
     operational requirements.
       (e) Report.--Not later than June 1, 1997, the Secretary of 
     the Navy shall submit to Congress a report containing the 
     following:
       (1) A description of the monitoring program developed 
     pursuant to subsection (a).
       (2) An analysis of the results of the monitoring program as 
     of the date of the submission of the report.
       (3) Information about the progress of Navy programs, 
     referred to in section 7(c) of the Organotin Antifouling 
     Paint Control Act of 1988 (33 U.S.C. 2406(c)), for evaluating 
     the laboratory toxicity and environmental risks associated 
     with the use of antifouling paints containing organotin.
       (4) An assessment, developed in consultation with the 
     Administrator of the Environmental Protection Agency, of the 
     effectiveness of existing laws and rules concerning organotin 
     compounds in ensuring protection of human health and the 
     environment.
       (f) Sense of Congress.--(1) It is the sense of Congress 
     that the Administrator of the Environmental Protection 
     Agency, in consultation with the Secretary of the Navy, 
     should develop, for purposes of the national pollutant 
     discharge elimination system, a model permit for the 
     discharge of organotin compounds at shipbuilding and ship 
     repair facilities.
       (2) For purposes of this subsection, the term ``organotin'' 
     has the meaning provided in section 3 of the Organotin 
     Antifouling Paint Control Act of 1988 (33 U.S.C. 2402).
       (g) Termination.--The program required by subsection (a) 
     shall terminate five years after the date of the enactment of 
     this Act.

     SEC. 334. AUTHORITY TO TRANSFER CONTAMINATED FEDERAL PROPERTY 
                   BEFORE COMPLETION OF REQUIRED RESPONSE ACTIONS.

       (a) In General.--Section 120(h)(3) of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9620(h)(3)) is amended--
       (1) by redesignating subparagraph (A) as clause (i) and 
     clauses (i), (ii), and (iii) of that subparagraph as 
     subclauses (I), (II), and (III), respectively;
       (2) by striking out ``After the last day'' and inserting in 
     lieu thereof the following:
       ``(A) In general.--After the last day'';
       (3) by redesignating subparagraph (B) as clause (ii) and 
     clauses (i) and (ii) of that subparagraph as subclauses (I) 
     and (II), respectively;
       (4) by redesignating subparagraph (C) as clause (iii);
       (5) by moving the remainder of the text of subparagraph 
     (A), as designated by paragraph (2) of this subsection 
     (including the clauses and subclauses redesignated by 
     paragraphs (1), (3), and (4) of this subsection) 2 ems to the 
     right;
       (6) by striking ``For purposes of subparagraph (B)(i)'' and 
     inserting the following:
       ``(B) Covenant requirements.--For purposes of subparagraphs 
     (A)(ii)(I) and (C)(iii)'';
       (7) in subparagraph (B), as designated by paragraph (5), by 
     striking ``subparagraph (B)'' each place it appears and 
     inserting ``subparagraph (A)(ii)''; and
       (8) by adding at the end the following:
       ``(C) Deferral.--
       ``(i) In general.--The Administrator, with the concurrence 
     of the Governor of the State in which the facility is located 
     (in the case of real property at a Federal facility that is 
     listed on the National Priorities List), or the Governor of 
     the State in which the facility is located (in the case of 
     real property at a Federal facility not listed on the 
     National Priorities List) may defer the requirement of 
     subparagraph (A)(ii)(I) with respect to the property if the 
     Administrator or the Governor, as the case may be, determines 
     that the property is suitable for transfer, based on a 
     finding that--

       ``(I) the property is suitable for transfer for the use 
     intended by the transferee, and the intended use is 
     consistent with protection of human health and the 
     environment;
       ``(II) the deed or other agreement proposed to govern the 
     transfer between the United States and the transferee of the 
     property contains the assurances set forth in clause (ii);
       ``(III) the Federal agency requesting deferral has provided 
     notice, by publication in a newspaper of general circulation 
     in the vicinity of the property, of the proposed transfer and 
     of the opportunity for the public to submit, within a period 
     of not less than 30 days after the date of the notice, 
     written comments on the suitability of the property for 
     transfer; and
       ``(IV) the deferral and the transfer of the property will 
     not substantially delay any necessary response action at the 
     property. 

       ``(ii) Response action assurances.--With regard to a 
     release or threatened release of a hazardous substance for 
     which a Federal agency is potentially responsible under this 
     section, the deed or other agreement proposed to govern the 
     transfer shall contain assurances that--

       ``(I) provide for any necessary restrictions on the use of 
     the property to ensure the protection of human health and the 
     environment;
       ``(II) provide that there will be restrictions on use 
     necessary to ensure that required remedial investigations, 
     response action, and oversight activities will not be 
     disrupted;
       ``(III) provide that all necessary response action will be 
     taken and identify the schedules for investigation and 
     completion of all necessary response action as approved by 
     the appropriate regulatory agency; and
       ``(IV) provide that the Federal agency responsible for the 
     property subject to transfer will submit a budget request to 
     the Director of the Office of Management and Budget that 
     adequately addresses schedules for investigation and 
     completion of all necessary response action, subject to 
     congressional authorizations and appropriations.

       ``(iii) Warranty.--When all response action necessary to 
     protect human health and

[[Page H9007]]

     the environment with respect to any substance remaining on 
     the property on the date of transfer has been taken, the 
     United States shall execute and deliver to the transferee an 
     appropriate document containing a warranty that all such 
     response action has been taken, and the making of the 
     warranty shall be considered to satisfy the requirement of 
     subparagraph (A)(ii)(I).
       ``(iv) Federal responsibility.--A deferral under this 
     subparagraph shall not increase, diminish, or affect in any 
     manner any rights or obligations of a Federal agency 
     (including any rights or obligations under sections 106, 107, 
     and 120 existing prior to transfer) with respect to a 
     property transferred under this subparagraph.''.
       (b) Continued Application of State Law.--The first sentence 
     of section 120(a)(4) of the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
     9620(a)(4)) is amended by inserting ``or facilities that are 
     the subject of a deferral under subsection (h)(3)(C)'' after 
     ``United States''.
  Subtitle D--Commissaries and Nonappropriated Fund Instrumentalities

     SEC. 341. CONTRACTS WITH OTHER AGENCIES TO PROVIDE OR OBTAIN 
                   GOODS AND SERVICES TO PROMOTE EFFICIENT 
                   OPERATION AND MANAGEMENT OF EXCHANGES AND 
                   MORALE, WELFARE, AND RECREATION ACTIVITIES.

       (a) Contracts to Promote Efficient Operation and 
     Management.--(1) Chapter 147 of title 10, United States Code, 
     is amended by inserting after section 2482 the following new 
     section:

     ``Sec. 2482a. Nonappropriated fund instrumentalities: 
       contracts with other agencies and instrumentalities to 
       provide and obtain goods and services

       ``An agency or instrumentality of the Department of Defense 
     that supports the operation of the exchange system, or the 
     operation of a morale, welfare, and recreation system, of the 
     Department of Defense may enter into a contract or other 
     agreement with another element of the Department of Defense 
     or with another Federal department, agency, or 
     instrumentality to provide or obtain goods and services 
     beneficial to the efficient management and operation of the 
     exchange system or that morale, welfare, and recreation 
     system.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     2482 the following new item:
``2482a. Nonappropriated fund instrumentalities: contracts with other 
              agencies and instrumentalities to provide and obtain 
              goods and services.''.
       (b) Conforming Amendment Regarding Commissary System.--
     Section 2482(b)(1) of such title is amended by striking out 
     ``another department'' and all that follows through ``provide 
     services'' and inserting in lieu thereof ``another element of 
     the Department of Defense or with another Federal department, 
     agency, or instrumentality to provide or obtain services''.

     SEC. 342. NONCOMPETITIVE PROCUREMENT OF BRAND-NAME COMMERCIAL 
                   ITEMS FOR RESALE IN COMMISSARY STORES.

       (a) Clarification of Exception to Competitive 
     Procurement.--Section 2486 of title 10, United States Code, 
     is amended by adding at the end the following new subsection:
       ``(e) The Secretary of Defense may not use the exception 
     provided in section 2304(c)(5) of this title regarding the 
     procurement of a brand-name commercial item for resale in 
     commissary stores unless the commercial item is regularly 
     sold outside of commissary stores under the same brand name 
     as the name by which the commercial item will be sold in 
     commissary stores.''.
       (b) Effect on Existing Contracts or Other Agreements.--
     Section 2486(e) of title 10, United States Code, as added by 
     subsection (a), shall not affect the terms, conditions, or 
     duration of any contract or other agreement entered into by 
     the Secretary of Defense before the date of the enactment of 
     this Act for the procurement of commercial items for resale 
     in commissary stores.

     SEC. 343. PROHIBITION OF SALE OR RENTAL OF SEXUALLY EXPLICIT 
                   MATERIAL.

       (a) In General--(1) Chapter 147 of title 10, United States 
     Code, is amended by inserting after section 2489 the 
     following new section:

     ``Sec. 2489a. Sale or rental of sexually explicit material 
       prohibited

       ``(a) Prohibition of Sale or Rental.--The Secretary of 
     Defense may not permit the sale or rental of sexually 
     explicit material on property under the jurisdiction of the 
     Department of Defense.
       ``(b) Prohibition of Officially Provided Sexually Explicit 
     Material.--A member of the armed forces or a civilian officer 
     or employee of the Department of Defense acting in an 
     official capacity may not provide for sale, remuneration, or 
     rental sexually explicit material to another person.
       ``(c) Regulations.--The Secretary of Defense shall 
     prescribe regulations to implement this section.
       ``(d) Definitions.--In this section:
       ``(1) The term `sexually explicit material' means an audio 
     recording, a film or video recording, or a periodical with 
     visual depictions, produced in any medium, the dominant theme 
     of which depicts or describes nudity, including sexual or 
     excretory activities or organs, in a lascivious way.
       ``(2) The term `property under the jurisdiction of the 
     Department of Defense' includes commissaries, all facilities 
     operated by the Army and Air Force Exchange Service, the Navy 
     Exchange Service Command, the Navy Resale and Services 
     Support Office, Marine Corps exchanges, and ships' stores.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     2489 the following new item:
``2489a. Sale or rental of sexually explicit material prohibited.''.
       (b) Effective Date.--Subsection (a) of section 2489a of 
     title 10, United States Code, as added by subsection (a) of 
     this section, shall take effect 90 days after the date of the 
     enactment of this Act.
     Subtitle E--Performance of Functions by Private-Sector Sources

     SEC. 351. EXTENSION OF REQUIREMENT FOR COMPETITIVE 
                   PROCUREMENT OF PRINTING AND DUPLICATION 
                   SERVICES.

       (a) Extension.--Section 351(a) of the National Defense 
     Authorization Act for Fiscal Year 1996 (Public Law 104-106; 
     110 Stat. 266) is amended by striking out ``fiscal year 
     1996'' and inserting in lieu thereof ``fiscal years 1996 and 
     1997''.
       (b) Reporting Requirements.--Such section is further 
     amended by adding at the end the following new subsection:
       ``(c) Reporting Requirements.--(1) Not later than 90 days 
     after the end of each fiscal year in which the requirement of 
     subsection (a) applies, the Secretary of Defense shall submit 
     to Congress a report--
       ``(A) describing the extent of the compliance of the 
     Secretary with the requirement during that fiscal year;
       ``(B) specifying the total volume of printing and 
     duplication services procured by Department of Defense during 
     that fiscal year--
       ``(i) from sources within the Department of Defense;
       ``(ii) from private-sector sources; and
       ``(iii) from other sources in the Federal Government; and
       ``(C) specifying the total volume of printed and duplicated 
     material during that fiscal year covered by the exception in 
     subsection (b).
       ``(2) The report required for fiscal year 1996 shall also 
     include the plans of the Secretary for further implementation 
     of the requirement of subsection (a) during fiscal year 
     1997.''.

     SEC. 352. REPORTING REQUIREMENTS UNDER DEMONSTRATION PROJECT 
                   FOR PURCHASE OF FIRE, SECURITY, POLICE, PUBLIC 
                   WORKS, AND UTILITY SERVICES FROM LOCAL 
                   GOVERNMENT AGENCIES.

       Section 816(b) of the National Defense Authorization Act 
     for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2820) is 
     amended by striking out ``, 1996'' and inserting in lieu 
     thereof ``of each of the years 1997 and 1998''.
                       Subtitle F--Other Matters

     SEC. 361. AUTHORITY FOR USE OF APPROPRIATED FUNDS FOR 
                   RECRUITING FUNCTIONS.

       (a) Authority.--Chapter 31 of title 10, United States Code, 
     is amended by adding at the end the following new section:

     ``Sec. 520c. Recruiting functions: use of funds

       ``(a) Provision of Meals and Refreshments.--Under 
     regulations prescribed by the Secretary concerned, funds 
     appropriated to the Department of Defense for recruitment of 
     military personnel may be expended for small meals and 
     refreshments during recruiting functions for the following 
     persons:
       ``(1) Persons who have enlisted under the Delayed Entry 
     Program authorized by section 513 of this title.
       ``(2) Persons who are objects of armed forces recruiting 
     efforts.
       ``(3) Persons whose assistance in recruiting efforts of the 
     military departments is determined to be influential by the 
     Secretary concerned.
       ``(4) Members of the armed forces and Federal employees 
     when attending recruiting events in accordance with a 
     requirement to do so.
       ``(5) Other persons whose presence at recruiting efforts 
     will contribute to recruiting efforts.
       ``(b) Annual Report.--Not later than February 1 of each of 
     the years 1998 through 2002, the Secretary of Defense shall 
     submit to Congress a report on the extent to which the 
     authority under subsection (a) was exercised during the 
     fiscal year ending in the preceding year.
       ``(c) Termination of Authority.--The authority in 
     subsection (a) may not be exercised after September 30, 
     2001.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:
``520c. Recruiting functions: use of funds.''.

     SEC. 362. TRAINING OF MEMBERS OF THE UNIFORMED SERVICES AT 
                   NON-GOVERNMENT FACILITIES.

       (a) Authority to Enter Into Agreements for Training at Non-
     Government Facilities.--(1) Chapter 101 of title 10, United 
     States Code, is amended by adding at the end the following 
     new section:

     ``Sec. 2013. Training at non-Government facilities

       ``(a) Authority to Enter Into Agreements.--(1) The 
     Secretary concerned, without regard to section 3709 of the 
     Revised Statutes (41 U.S.C. 5), may make agreements or other 
     arrangements for the training of members of the uniformed 
     services under the jurisdiction of that Secretary by, in, or 
     through non-Government facilities.

[[Page H9008]]

       ``(2) In this section, the term `non-Government facility' 
     means any of the following:
       ``(A) The government of a State or of a territory or 
     possession of the United States, including the Commonwealth 
     of Puerto Rico, an interstate governmental organization, and 
     a unit, subdivision, or instrumentality of any of the 
     foregoing.
       ``(B) A foreign government or international organization, 
     or instrumentality of either, which is designated by the 
     President as eligible to provide training under this section.
       ``(C) A medical, scientific, technical, educational, 
     research, or professional institution, foundation, or 
     organization.
       ``(D) A business, commercial, or industrial firm, 
     corporation, partnership, proprietorship, or other 
     organization.
       ``(E) Individuals other than civilian or military personnel 
     of the Government.
       ``(F) The services and property of any of the foregoing 
     providing the training.
       ``(b) Expenses.--The Secretary concerned, from 
     appropriations or other funds available to the Secretary, 
     may--
       ``(1) pay all or a part of the pay of a member of a 
     uniformed service who is selected and assigned for training 
     under this section, for the period of training; and
       ``(2) pay, or reimburse the member of a uniformed service 
     for, all or a part of the necessary expenses of the training 
     (without regard to subsections (a) and (b) of section 3324 of 
     title 31), including among those expenses the necessary costs 
     of the following:
       ``(A) Travel and per diem instead of subsistence under 
     sections 404 and 405 of title 37 and the Joint Travel 
     Regulations for the Uniformed Services.
       ``(B) Transportation of immediate family, household goods 
     and personal effects, packing, crating, temporarily storing, 
     draying, and unpacking under sections 406 and 409 of title 37 
     and the Joint Travel Regulations for the Uniformed Services 
     when the estimated costs of transportation and related 
     services are less than the estimated aggregate per diem 
     payments for the period of training.
       ``(C) Tuition and matriculation fees.
       ``(D) Library and laboratory services.
       ``(E) Purchase or rental of books, materials, and supplies.
       ``(F) Other services or facilities directly related to the 
     training of the member.
       ``(c) Certain Expenses Excluded.--The expenses of training 
     do not include membership fees except to the extent that the 
     fee is a necessary cost directly related to the training 
     itself or that payment of the fee is a condition precedent to 
     undergoing the training.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:
``2013. Training at non-Government facilities.''.
       (b) Effective Date.--Section 2013 of title 10, United 
     States Code, as added by subsection (a), shall take effect on 
     October 1, 1996.

     SEC. 363. REQUIREMENT FOR PREPARATION OF PLAN FOR IMPROVED 
                   OPERATION OF WORKING-CAPITAL FUNDS AND EFFECT 
                   OF FAILURE TO PRODUCE AN APPROVED PLAN.

       (a) Plan for Improved Operation of Working-Capital Funds.--
     Not later than September 30, 1997, the Secretary of Defense 
     shall submit to Congress a plan to improve the management and 
     performance of the industrial, commercial, and support type 
     activities of the military departments or the Defense 
     Agencies that are currently managed through the Defense 
     Business Operations Fund.
       (b) Elements of Plan.--The plan required by subsection (a) 
     shall address the following issues:
       (1) The ability of each military department or Defense 
     Agency to set working capital requirements and set charges at 
     its own industrial and supply activities.
       (2) The desirability of separate business accounts for the 
     management of both industrial and supply activities for each 
     military department or Defense Agency.
       (3) Liability for operation losses at industrial and supply 
     activities.
       (4) Reimbursement to the Department of Defense by each 
     military department or Defense Agency of its fair share of 
     the costs of legitimate common business support services 
     (such as accounting and financial services and central 
     logistics services) provided by the Department of Defense.
       (5) The role of the Department of Defense in setting 
     charges or imposing surcharges for activities managed by the 
     business accounts of a military department or Defense Agency 
     (except for the common business support cost described in 
     paragraph (4)), and what such charges should properly 
     reflect.
       (6) The appropriate use of operating profits arising from 
     the operations of the industrial and supply activities of a 
     military department or Defense Agency.
       (7) The ability of a military department or Defense Agency 
     to purchase industrial and supply services from, and provide 
     such services to, other military departments or Defense 
     Agencies.
       (8) Standardization of financial management and accounting 
     practices employed by the business accounts of a military 
     department or Defense Agency.
       (9) Reporting requirements related to actual and projected 
     performance of business management account activities of a 
     military department or Defense Agency.
       (c) Effect of Failure to Submit or Approve of Plan.--(1) 
     Unless, before October 1, 1999, the Secretary of Defense 
     submits the plan required by subsection (a) and Congress 
     enacts a provision of law described in paragraph (2) that 
     approves of the plan as submitted or in an amended form, then 
     section 2216a of title 10, United States Code, regarding the 
     Defense Business Operations Fund (as redesignated by section 
     1074(a)(10) of this Act), shall be repealed effective as of 
     that date.
       (2) The provision of law referred to in paragraph (1) is a 
     provision of law that--
       (A) is enacted after the submission of the plan required by 
     subsection (a);
       (B) specifically refers to the plan and this section; and
       (C) specifically states that the plan required by 
     subsection (a) is approved as submitted or with such 
     amendments as may be contained in such law.
       (d) Basis for Charges for Goods And Services; Comptroller 
     General Review.--(1) In the development of the proposed 
     budget for the Defense Business Operations Fund for a fiscal 
     year, the Secretary of Defense shall ensure that accurate and 
     realistic pricing and quantity estimates are used regarding 
     the goods and services to be provided by working-capital 
     funds and industrial, commercial, and support type activities 
     managed through the Fund.
       (2) The Secretary of Defense shall make available to the 
     Comptroller General information used to establish the charges 
     for goods and services to be provided by working-capital 
     funds and industrial, commercial, and support type activities 
     managed through the Fund. The Comptroller General shall 
     conduct an annual review of the adequacy of the basis for the 
     charges. Not later than 30 days after the date on which the 
     Secretary submits the annual report and proposed budget for 
     the Fund under subsection (h) of section 2216a of title 10, 
     United States Code, as redesignated by section 1074(a)(10) of 
     this Act, the Comptroller General shall submit to Congress a 
     report containing the results of the review.

     SEC. 364. INCREASE IN CAPITAL ASSET THRESHOLD UNDER DEFENSE 
                   BUSINESS OPERATIONS FUND.

       Section 2216a of title 10, United States Code, as 
     redesignated by section 1074(a)(10) of this Act, is amended 
     in subsection (i)(1) by striking out ``$50,000'' and 
     inserting in lieu thereof ``$100,000''.

     SEC. 365. EXPANSION OF AUTHORITY TO DONATE UNUSABLE FOOD.

       (a) Authority for Donations From Defense Agencies.--Section 
     2485 of title 10, United States Code, is amended by striking 
     out ``Secretary of a military department'' in subsections (a) 
     and (b) and inserting in lieu thereof ``Secretary of 
     Defense''.
       (b) Expansion of Eligible Recipients.--Such section is 
     further amended--
       (1) in subsection (a), by striking out ``authorized 
     charitable nonprofit food banks'' and inserting in lieu 
     thereof ``entities specified under subsection (d)''; and
       (2) in subsection (d), by striking out ``may only be made'' 
     and all that follows and inserting in lieu thereof the 
     following: ``may only be made to an entity that is one of the 
     following:
       ``(1) A charitable nonprofit food bank that is designated 
     by the Secretary of Defense or the Secretary of Health and 
     Human Services as authorized to receive such donations.
       ``(2) A State or local agency that is designated by the 
     Secretary of Defense or the Secretary of Health and Human 
     Services as authorized to receive such donations.
       ``(3) A chapter or other local unit of a recognized 
     national veterans organization that provides services to 
     persons without adequate shelter and is designated by the 
     Secretary of Veterans Affairs as authorized to receive such 
     donations.
       ``(4) A not-for-profit organization that provides care for 
     homeless veterans and is designated by the Secretary of 
     Veterans Affairs as authorized to receive such donations.''.
       (c) Clarification of Food That May Be Donated.--Subsection 
     (b) of such section is further amended by inserting ``rations 
     known as humanitarian daily rations (HDRs),'' after 
     ``(MREs),''.

     SEC. 366. ASSISTANCE TO COMMITTEES INVOLVED IN INAUGURATION 
                   OF THE PRESIDENT.

       (a) In General.--Section 2543 of title 10, United States 
     Code, is amended to read to read as follows:

     ``Sec. 2543. Equipment and services: Presidential inaugural 
       ceremonies

       ``(a) Assistance Authorized.--The Secretary of Defense may, 
     with respect to the ceremonies relating to the inauguration 
     of a President, provide the assistance referred to in 
     subsection (b) to--
       (1) the Presidential Inaugural Committee; and
       (2) the congressional Joint Inaugural Committee.
       ``(b) Assistance.--Assistance that may be provided under 
     subsection (a) is the following:
       ``(1) Planning and carrying out activities relating to 
     security and safety.
       ``(2) Planning and carrying out ceremonial activities.
       ``(3) Loan of property.
       ``(4) Any other assistance that the Secretary considers 
     appropriate.
       ``(c) Reimbursement.--(1) The Presidential Inaugural 
     Committee shall reimburse the Secretary for any costs 
     incurred in connection with the provision to the committee of 
     assistance referred to in subsection (b)(4).
       ``(2) Costs reimbursed under paragraph (1) shall be 
     credited to the appropriations from

[[Page H9009]]

     which the costs were paid. The amount credited to an 
     appropriation shall be proportionate to the amount of the 
     costs charged to that appropriation.
       ``(d) Loaned Property.--With respect to property loaned for 
     a presidential inauguration under subsection (b)(3), the 
     Presidential Inaugural Committee shall--
       ``(1) return that property within nine days after the date 
     of the ceremony inaugurating the President;
       ``(2) give good and sufficient bond for the return in good 
     order and condition of that property;
       ``(3) indemnify the United States for any loss of, or 
     damage to, that property; and
       ``(4) defray any expense incurred for the delivery, return, 
     rehabilitation, replacement, or operation of that property.
       ``(e) Definitions.--In this section:
       ``(1) The term `Presidential Inaugural Committee' means the 
     committee referred to in subsection (b)(2) of the first 
     section of the Presidential Inaugural Ceremonies Act (36 
     U.S.C. 721) that is appointed with respect to the 
     inauguration of a President-elect and Vice President-elect.
       ``(2) The term `congressional Joint Inaugural Committee' 
     means the joint committee of the Senate and House of 
     Representatives referred to in the proviso in section 9 of 
     the Presidential Inaugural Ceremonies Act (36 U.S.C. 729) 
     that is appointed with respect to the inauguration of a 
     President-elect and Vice President-elect.''.
       (b) Clerical Amendment.--The item relating to section 2543 
     in the table of sections at the beginning of chapter 152 of 
     such title is amended to read as follows:
``2543. Equipment and services: Presidential inaugural ceremonies.''.

     SEC. 367. DEPARTMENT OF DEFENSE SUPPORT FOR SPORTING EVENTS.

       (a) Authority to Provide Support.--Subchapter II of chapter 
     152 of title 10, United States Code, is amended by adding at 
     the end the following new section:

     ``Sec. 2554. Provision of support for certain sporting events

       ``(a) Security and Safety Assistance.--At the request of a 
     Federal, State, or local government agency responsible for 
     providing law enforcement services, security services, or 
     safety services, the Secretary of Defense may authorize the 
     commander of a military installation or other facility of the 
     Department of Defense or the commander of a specified or 
     unified combatant command to provide assistance for the World 
     Cup Soccer Games, the Goodwill Games, the Olympics, and any 
     other civilian sporting event in support of essential 
     security and safety at such event, but only if the Attorney 
     General certifies that such assistance is necessary to meet 
     essential security and safety needs.
       ``(b) Other Assistance.--The Secretary of Defense may 
     authorize a commander referred to in subsection (a) to 
     provide assistance for a sporting event referred to in that 
     subsection in support of other needs relating to such event, 
     but only--
       ``(1) to the extent that such needs cannot reasonably be 
     met by a source other than the Department;
       ``(2) to the extent that the provision of such assistance 
     does not adversely affect the military preparedness of the 
     armed forces; and
       ``(3) if the organization requesting such assistance agrees 
     to reimburse the Department for amounts expended by the 
     Department in providing the assistance in accordance with the 
     provisions of section 377 of this title and other applicable 
     provisions of law.
       ``(c) Inapplicability to Certain Events.--Subsections (a) 
     and (b) do not apply to the following sporting events:
       ``(1) Sporting events for which funds have been 
     appropriated before the date of the enactment of this Act.
       ``(2) The Special Olympics.
       ``(3) The Paralympics.
       ``(d) Terms and Conditions.--The Secretary of Defense may 
     require such terms and conditions in connection with the 
     provision of assistance under this section as the Secretary 
     considers necessary and appropriate to protect the interests 
     of the United States.
       ``(e) Report on Assistance.--Not later than January 30 of 
     each year following a year in which the Secretary of Defense 
     provides assistance under this section, the Secretary shall 
     submit to Congress a report on the assistance provided. The 
     report shall set forth--
       ``(1) a description of the assistance provided;
       ``(2) the amount expended by the Department in providing 
     the assistance;
       ``(3) if the assistance was provided under subsection (a), 
     the certification of the Attorney General with respect to the 
     assistance under that subsection; and
       ``(4) if the assistance was provided under subsection (b)--
       ``(A) an explanation why the assistance could not 
     reasonably be met by a source other than the Department; and
       ``(B) the amount the Department was reimbursed under that 
     subsection.
       ``(f) Relationship to Other Laws.--Assistance provided 
     under this section shall be subject to the provisions of 
     sections 375 and 376 of this title.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such subchapter is amended by adding at the end 
     the following new item:
``2554. Provision of support for certain sporting events.''.

     SEC. 368. STORAGE OF MOTOR VEHICLE IN LIEU OF TRANSPORTATION.

       (a) Storage Authorized.--(1) Section 2634 of title 10, 
     United States Code, is amended--
       (A) by redesignating subsection (b) as subsection (g);
       (B) by transferring subsection (g), as so redesignated, to 
     the end of such section; and
       (C) by inserting after subsection (a) the following new 
     subsection:
       ``(b)(1) In lieu of transportation authorized by this 
     section, if a member is ordered to make a change of permanent 
     station to a foreign country and the laws, regulations, or 
     other restrictions imposed by the foreign country or the 
     United States preclude entry of a motor vehicle described in 
     subsection (a) into that country, or would require extensive 
     modification of the vehicle as a condition to entry, the 
     member may elect to have the vehicle stored at the expense of 
     the United States at a location approved by the Secretary 
     concerned.
       ``(2) If a member is transferred or assigned in connection 
     with a contingency operation to duty at a location other than 
     the permanent station of the member for a period of more than 
     30 consecutive days, but the transfer or assignment is not 
     considered a change of permanent station, the member may 
     elect to have a motor vehicle described in subsection (a) 
     stored at the expense of the United States at a location 
     approved by the Secretary concerned.
       ``(3) Authorized expenses under this subsection include 
     costs associated with the delivery of the motor vehicle for 
     storage and removal of the vehicle for delivery to a 
     destination approved by the Secretary concerned.''.
       (2)(A) The heading of such section is amended to read as 
     follows:

     ``Sec. 2634. Motor vehicles: transportation or storage for 
       members on change of permanent station or extended 
       deployment''.

       (B) The item relating to such section in the table of 
     sections at the beginning of chapter 157 of title 10, United 
     States Code, is amended to read as follows:
``2634. Motor vehicles: transportation or storage for members on change 
              of permanent station or extended deployment.''.
       (b) Conforming Amendment.--Subparagraph (B) of section 
     406(h)(1) of title 37, United States Code, is amended to read 
     as follows:
       ``(B) in the case of a member described in paragraph 
     (2)(A), authorize the transportation of one motor vehicle, 
     which is owned or leased by the member (or a dependent of the 
     member) and is for the personal use of a dependent of the 
     member, to that location by means of transportation 
     authorized under section 2634 of title 10 or authorize the 
     storage of the motor vehicle pursuant to subsection (b) of 
     such section.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on April 1, 1997.

     SEC. 369. SECURITY PROTECTIONS AT DEPARTMENT OF DEFENSE 
                   FACILITIES IN NATIONAL CAPITAL REGION.

       (a) Expansion of Authority.--Subsection (b) of section 2674 
     of title 10, United States Code, is amended by striking out 
     ``at the Pentagon Reservation'' and inserting in lieu thereof 
     ``in the National Capital Region''.
       (b) Clerical Amendments.--(1) The heading of such section 
     is amended to read as follows:

     ``Sec. 2674. Operation and control of Pentagon Reservation 
       and defense facilities in National Capital Region''.

       (2) The item relating to such section in the table of 
     sections at the beginning of chapter 159 of such title is 
     amended to read as follows:
``2674. Operation and control of Pentagon Reservation and defense 
              facilities in National Capital Region.''.

     SEC. 370. ADMINISTRATION OF MIDSHIPMEN'S STORE AND OTHER 
                   NAVAL ACADEMY SUPPORT ACTIVITIES AS 
                   NONAPPROPRIATED FUND INSTRUMENTALITY.

       (a) In General.--Section 6971 of title 10, United States 
     Code, is amended to read as follows:

     ``Sec. 6971. Midshipmen's store trade shops, dairy, and 
       laundry: nonappropriated fund instrumentality and accounts

       ``(a) Operation as Nonappropriated Fund Instrumentality.--
     The Superintendent of the Naval Academy shall operate the 
     Naval Academy activities referred to in subsection (b) as a 
     nonappropriated fund instrumentality under the jurisdiction 
     of the Navy.
       ``(b) Covered Activities.--The nonappropriated fund 
     instrumentality required under subsection (a) shall consist 
     of the following Naval Academy activities:
       ``(1) The midshipmen's store.
       ``(2) The barber shop.
       ``(3) The cobbler shop.
       ``(4) The tailor shop.
       ``(5) The dairy.
       ``(6) The laundry.
       ``(c) Nonappropriated Fund Accounts.--The Superintendent of 
     the Naval Academy shall administer a separate nonappropriated 
     fund account for each of the Naval Academy activities 
     included in the nonappropriated fund instrumentality required 
     under subsection (a).
       ``(d) Crediting of Revenue.--The Superintendent shall 
     credit all revenue received from a Naval Academy activity 
     referred to in

[[Page H9010]]

     subsection (b) to the account administered with respect to 
     that activity under subsection (c), and amounts so credited 
     shall be available for operating expenses of that activity.
       ``(e) Regulations.--This section shall be carried out under 
     regulations prescribed by the Secretary of the Navy.''.
       (b) Civil Service Employment Status of Employees of Covered 
     Activities.--Section 2105(b) of title 5, United States Code, 
     is amended--
       (1) by inserting ``who is'' after ``An individual''; and
       (2) by inserting ``and whose employment in such a position 
     began before October 1, 1996, and has been uninterrupted in 
     such a position since that date'' after ``Academy dairy,''.
       (c) Conforming Repeal.--Section 6970 of title 10, United 
     States Code, is repealed.
       (d) Clerical Amendments.--The table of sections at the 
     beginning of chapter 603 of title 10, United States Code, is 
     amended by striking out the items relating to sections 6970 
     and 6971 and inserting in lieu thereof the following new 
     item:
``6971. Midshipmen's store, trade shops, dairy, and laundry: 
              nonappropriated fund instrumentality and accounts.''.
       (e) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 1996.

     SEC. 371. REIMBURSEMENT UNDER AGREEMENT FOR INSTRUCTION OF 
                   CIVILIAN STUDENTS AT FOREIGN LANGUAGE INSTITUTE 
                   OF THE DEFENSE LANGUAGE INSTITUTE.

       (a) Authority to Accept Reimbursement In Kind.--Section 
     559(a)(1) of the National Defense Authorization Act for 
     Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2776; 10 
     U.S.C. 4411 note) is amended--
       (1) by redesignating subsections (c), (d), and (e) as 
     subsections (d), (e), and (f), respectively; and
       (2) by inserting after subsection (b) the following new 
     subsection:
       ``(c) Reimbursement Options for Certain Instruction.--In 
     the case of instruction provided to students described in 
     subsection (a)(1), the Secretary may provide the instruction 
     on a cost-reimbursable basis, a reimbursement-in-kind basis, 
     or a combination of both options. Regardless of the 
     reimbursement option, the value of the reimbursement received 
     under this subsection may not be less than the amount charged 
     for providing language instruction to Federal employees who 
     are not Department of Defense employees. The Secretary may 
     not delegate the authority to accept an offer for in-kind 
     reimbursement below the level of the Assistant Secretary of 
     the Army.''.
       (b) Conforming Amendments.--Such section is further 
     amended--
       (1) in subsection (a)(1), by striking out ``cost-
     reimbursable,''; and
       (2) in subsection (d), as redesignated by subsection (a)(1) 
     of this section, by striking out ``subsection (a)'' the first 
     place it appears and inserting in lieu thereof ``subsection 
     (a) or (c)''.

     SEC. 372. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES THAT 
                   BENEFIT DEPENDENTS OF MEMBERS OF THE ARMED 
                   FORCES AND DEPARTMENT OF DEFENSE CIVILIAN 
                   EMPLOYEES.

       (a) Continuation of Department of Defense Program for 
     Fiscal Year 1997.--Of the amounts authorized to be 
     appropriated in section 301(5)--
       (1) $30,000,000 shall be available for providing 
     educational agencies assistance (as defined in subsection 
     (d)(1)) to local educational agencies; and
       (2) $5,000,000 shall be available for making educational 
     agencies payments (as defined in subsection (d)(2)) to local 
     educational agencies.
       (b) Notification.--Not later than June 30, 1997, the 
     Secretary of Defense shall--
       (1) notify each local educational agency that is eligible 
     for educational agencies assistance for fiscal year 1997 of 
     that agency's eligibility for such assistance and the amount 
     of such assistance for which that agency is eligible; and
       (2) notify each local educational agency that is eligible 
     for an educational agencies payment for fiscal year 1997 of 
     that agency's eligibility for such payment and the amount of 
     the payment for which that agency is eligible.
       (c) Disbursement of Funds.--The Secretary of Defense shall 
     disburse funds made available under paragraphs (1) and (2) of 
     subsection (a) not later than 30 days after the date on which 
     notification to the eligible local educational agencies is 
     provided pursuant to subsection (b).
       (d) Definitions.--In this section:
       (1) The term ``educational agencies assistance'' means 
     assistance authorized under section 386(b) of the National 
     Defense Authorization Act for Fiscal Year 1993 (Public Law 
     102-484; 20 U.S.C. 7703 note).
       (2) The term ``educational agencies payments'' means 
     payments authorized under section 386(d) of the National 
     Defense Authorization Act for Fiscal Year 1993 (Public Law 
     102-484; 20 U.S.C. 7703 note).
       (3) The term ``local educational agency'' has the meaning 
     given that term in section 8013(9) of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 7713(9)).

     SEC. 373. RENOVATION OF BUILDING FOR DEFENSE FINANCE AND 
                   ACCOUNTING SERVICE CENTER, FORT BENJAMIN 
                   HARRISON, INDIANA.

       (a) Transfer Authority.--To pay the costs of planning, 
     design, and renovation of Building One, Fort Benjamin 
     Harrison, Indiana, for use as a Defense Finance and 
     Accounting Service Center, the Secretary of Defense may 
     transfer to the Administrator of General Services in the 
     manner provided in subsection (b) funds available to the 
     Department of Defense for the Defense Finance and Accounting 
     Service for a fiscal year for operation and maintenance.
       (b) Authority Subject to Authorizations and 
     Appropriations.--To the extent provided in appropriations 
     Acts--
       (1) of funds described in subsection (a) and appropriated 
     for fiscal year 1997, $9,000,000 may be transferred under 
     such subsection; and
       (2) of funds described in subsection (a) and appropriated 
     for fiscal years 1998, 1999, 2000, and 2001, funds may be 
     transferred under such subsection in such amounts as are 
     authorized to be transferred in an Act enacted after the date 
     of the enactment of this Act.
       (c) Authority Subject To Agreement Between Department of 
     Defense and General Services Administration.--The transfer 
     authority provided in subsection (a) shall not take effect 
     until the date on which the Secretary of Defense and the 
     Administrator of General Services enter into an agreement 
     that provides for the Department of Defense to receive a full 
     reimbursement for the funds transferred under such 
     subsection. Such reimbursement may include reimbursement in 
     the form of reduced or static rental rates for Building One.

     SEC. 374. FOOD DONATION PILOT PROGRAM AT SERVICE ACADEMIES.

       (a) Program Authorized.--The Secretaries of the military 
     departments and the Secretary of Transportation may each 
     carry out a food donation pilot program at the service 
     academy under the jurisdiction of such Secretary.
       (b) Donations and Collections of Food and Grocery 
     Products.--Under the pilot program, the Secretary concerned 
     may donate to, and permit others to collect for, a nonprofit 
     organization any food or grocery product that--
       (1) is--
       (A) an apparently wholesome food;
       (B) an apparently fit grocery product; or
       (C) a food or grocery product that is donated in accordance 
     with section 402(e) of the National and Community Service Act 
     of 1990 (42 U.S.C. 12672(e));
       (2) is owned by the United States;
       (3) is located at a service academy under the jurisdiction 
     of such Secretary; and
       (4) is excess to the requirements of the academy.
       (c) Program Commencement.--The Secretary concerned shall 
     commence carrying out the pilot program, if at all, during 
     fiscal year 1997.
       (d) Applicability of Good Samaritan Food Donation Act.--
     Section 402 of the National and Community Service Act of 1990 
     (42 U.S.C. 12672) shall apply to donations and collections of 
     food and grocery products under the pilot program without 
     regard to section 403 of such Act (42 U.S.C. 12673).
       (e) Reports.--(1) Each Secretary that carries out a pilot 
     program at a service academy under this section shall submit 
     to Congress an interim report and a final report on the pilot 
     program.
       (2) The Secretary concerned shall submit the interim report 
     not later than one year after the date on which the Secretary 
     commences the pilot program at a service academy.
       (3) The Secretary concerned shall submit the final report 
     not later than 90 days after the Secretary completes the 
     pilot program at a service academy.
       (4) Each report shall include the following:
       (A) A description of the conduct of the pilot program.
       (B) A discussion of the experience under the pilot program.
       (C) An evaluation of the extent to which section 402 of the 
     National and Community Service Act of 1990 (42 U.S.C. 12672) 
     has been effective in protecting the United States and others 
     from liabilities associated with actions taken under the 
     pilot program.
       (D) Any recommendations for legislation to facilitate 
     donations or collections of excess food and grocery products 
     of the United States or others for nonprofit organizations.
       (f) Definitions.--For purposes of this section:
       (1) The term ``service academy'' means each of the 
     following:
       (A) The United States Military Academy.
       (B) The United States Naval Academy.
       (C) The United States Air Force Academy.
       (D) The United States Coast Guard Academy.
       (2) The term ``Secretary concerned'' means the following:
       (A) The Secretary of the Army, with respect to the United 
     States Military Academy.
       (B) The Secretary of the Navy, with respect to the United 
     States Naval Academy.
       (C) The Secretary of the Air Force, with respect to the 
     United States Air Force Academy.
       (D) The Secretary of Transportation, with respect to the 
     United States Coast Guard Academy.
       (3) The terms ``apparently fit grocery product'', 
     ``apparently wholesome food'', ``donate'', ``food'', and 
     ``grocery product'' have the meanings given those terms in 
     section 402(b) of the National and Community Service Act of 
     1990 (42 U.S.C. 12672(b)).

[[Page H9011]]

     SEC. 375. AUTHORITY OF AIR NATIONAL GUARD TO PROVIDE CERTAIN 
                   SERVICES AT LINCOLN MUNICIPAL AIRPORT, LINCOLN, 
                   NEBRASKA.

       (a) Authority.--The Nebraska Air National Guard may provide 
     fire protection services and rescue services relating to 
     aircraft at Lincoln Municipal Airport, Lincoln, Nebraska, on 
     behalf of the Lincoln Municipal Airport Authority, Lincoln, 
     Nebraska.
       (b) Agreement.--The Nebraska Air National Guard may not 
     provide services under subsection (a) until the Nebraska Air 
     National Guard and the authority enter into an agreement 
     under which the authority agrees--
       (1) to reimburse the Nebraska Air National Guard for the 
     cost of the services provided; and
       (2) to hold harmless and indemnify the United States, 
     except in cases of willful misconduct or gross negligence, 
     from any claim for damages or injury to any person or 
     property arising out of the provision of, or the failure to 
     provide, such services.
       (c) Effect on Military Preparedness.--Services may only be 
     provided under subsection (a) to the extent that the 
     provision of such services does not adversely affect the 
     military preparedness of the Armed Forces.

     SEC. 376. TECHNICAL AMENDMENT REGARDING IMPACT AID PROGRAM.

       Paragraph (3) of section 8003(a) of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 7703(a)) is 
     amended by striking out ``2,000 and such number equals or 
     exceeds 15'' and inserting in lieu thereof ``1,000 or such 
     number equals or exceeds 10''
              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.
Sec. 403. Authorized strengths for commissioned officers on active duty 
              in grades of major, lieutenant colonel, and colonel and 
              navy grades of lieutenant commander, commander, and 
              captain.
Sec. 404. Extension of requirement for recommendations regarding 
              appointments to joint 4-star officer positions.
Sec. 405. Increase in authorized number of general officers on active 
              duty in the Marine Corps.

                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for reserves on active duty in support of the 
              Reserves.
Sec. 413. End strengths for military technicians.
Sec. 414. Assurance of continued assignment of military personnel to 
              serve in Selective Service System.

              Subtitle C--Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.
                       Subtitle A--Active Forces

     SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

       The Armed Forces are authorized strengths for active duty 
     personnel as of September 30, 1997, as follows:
       (1) The Army, 495,000.
       (2) The Navy, 407,318.
       (3) The Marine Corps, 174,000.
       (4) The Air Force, 381,100.

     SEC. 402. PERMANENT END STRENGTH LEVELS TO SUPPORT TWO MAJOR 
                   REGIONAL CONTINGENCIES.

       (a) Requirement To Budget for and Maintain Statutory End 
     Strength Levels.--Section 691 of title 10, United States 
     Code, is amended--
       (1) by redesignating subsections (d) and (e) as subsections 
     (e) and (f), respectively; and
       (2) by striking out subsection (c) and inserting in lieu 
     thereof the following:
       ``(c) The budget for the Department of Defense for any 
     fiscal year as submitted to Congress shall include amounts 
     for funding for each of the armed forces (other than the 
     Coast Guard) at least in the amounts necessary to maintain 
     the active duty end strengths prescribed in subsection (b), 
     as in effect at the time that such budget is submitted.
       ``(d) No funds appropriated to the Department of Defense 
     may be used to implement a reduction of the active duty end 
     strength for any of the armed forces (other than the Coast 
     Guard) for any fiscal year below the level specified in 
     subsection (b) unless the reduction in end strength for that 
     armed force for that fiscal year is specifically authorized 
     by law.''.
       (b) Temporary Flexibility Relating to Permanent End 
     Strength Levels.--Subsection (e) of such section, as 
     redesignated by subsection (a)(1), is amended by striking out 
     ``not more than 0.5 percent'' and inserting in lieu thereof 
     ``not more than 1 percent''.

     SEC. 403. AUTHORIZED STRENGTHS FOR COMMISSIONED OFFICERS ON 
                   ACTIVE DUTY IN GRADES OF MAJOR, LIEUTENANT 
                   COLONEL, AND COLONEL AND NAVY GRADES OF 
                   LIEUTENANT COMMANDER, COMMANDER, AND CAPTAIN.

       (a) Revision in Army, Air Force, and Marine Corps 
     Limitations.--The table in paragraph (1) of section 523(a) of 
     title 10, United States Code, is amended to read as follows:
       

----------------------------------------------------------------------------------------------------------------
                                                                     Number of officers who may be serving on   
                                                                           active duty in the grade of:         
 ``Total number of commissioned officers (excluding officers in  -----------------------------------------------
     categories specified in subsection (b)) on active duty:                        Lieutenant                  
                                                                       Major          Colonel         Colonel   
----------------------------------------------------------------------------------------------------------------
Army:                                                                                                           
  20,000........................................................           6,848           5,253        1,613   
  25,000........................................................           7,539           5,642        1,796   
  30,000........................................................           8,231           6,030        1,980   
  35,000........................................................           8,922           6,419        2,163   
  40,000........................................................           9,614           6,807        2,347   
  45,000........................................................          10,305           7,196        2,530   
  50,000........................................................          10,997           7,584        2,713   
  55,000........................................................          11,688           7,973        2,897   
  60,000........................................................          12,380           8,361        3,080   
  65,000........................................................          13,071           8,750        3,264   
  70,000........................................................          13,763           9,138        3,447   
  75,000........................................................          14,454           9,527        3,631   
  80,000........................................................          15,146           9,915        3,814   
  85,000........................................................          15,837          10,304        3,997   
  90,000........................................................          16,529          10,692        4,181   
  95,000........................................................          17,220          11,081        4,364   
  100,000.......................................................          17,912          11,469        4,548   
  110,000.......................................................          19,295          12,246        4,915   
  120,000.......................................................          20,678          13,023        5,281   
  130,000.......................................................          22,061          13,800        5,648   
  170,000.......................................................          27,593          16,908        7,116   
Air Force:                                                                                                      
  35,000........................................................           9,216           7,090        2,125   
  40,000........................................................          10,025           7,478        2,306   
  45,000........................................................          10,835           7,866        2,487   
  50,000........................................................          11,645           8,253        2,668   
  55,000........................................................          12,454           8,641        2,849   
  60,000........................................................          13,264           9,029        3,030   
  65,000........................................................          14,073           9,417        3,211   
  70,000........................................................          14,883           9,805        3,392   
  75,000........................................................          15,693          10,193        3,573   
  80,000........................................................          16,502          10,582        3,754   
  85,000........................................................          17,312          10,971        3,935   
  90,000........................................................          18,121          11,360        4,115   
  95,000........................................................          18,931          11,749        4,296   
  100,000.......................................................          19,741          12,138        4,477   
  105,000.......................................................          20,550          12,527        4,658   

[[Page H9012]]

                                                                                                                
  110,000.......................................................          21,360          12,915        4,838   
  115,000.......................................................          22,169          13,304        5,019   
  120,000.......................................................          22,979          13,692        5,200   
  125,000.......................................................          23,789          14,081        5,381   
Marine Corps:                                                                                                   
  10,000........................................................           2,525           1,480          571   
  12,500........................................................           2,900           1,600          592   
  15,000........................................................           3,275           1,720          613   
  17,500........................................................           3,650           1,840          633   
  20,000........................................................           4,025           1,960          654   
  22,500........................................................           4,400           2,080          675   
  25,000........................................................           4,775           2,200          695.''
----------------------------------------------------------------------------------------------------------------



       (b) Revision in Navy Limitations.--The table in paragraph 
     (2) of such section is amended to read as follows:
       

----------------------------------------------------------------------------------------------------------------
                                                                     Number of officers who may be serving on   
                                                                             active duty in grade of:           
 ``Total number of commissioned officers (excluding officers in  -----------------------------------------------
     categories specified in subsection (b)) on active duty:        Lieutenant                                  
                                                                     commander       Commander        Captain   
----------------------------------------------------------------------------------------------------------------
Navy:                                                                                                           
  30,000........................................................           7,331           5,018        2,116   
  33,000........................................................           7,799           5,239        2,223   
  36,000........................................................           8,267           5,460        2,330   
  39,000........................................................           8,735           5,681        2,437   
  42,000........................................................           9,203           5,902        2,544   
  45,000........................................................           9,671           6,123        2,651   
  48,000........................................................          10,139           6,343        2,758   
  51,000........................................................          10,606           6,561        2,864   
  54,000........................................................          11,074           6,782        2,971   
  57,000........................................................          11,541           7,002        3,078   
  60,000........................................................          12,009           7,222        3,185   
  63,000........................................................          12,476           7,441        3,292   
  66,000........................................................          12,944           7,661        3,398   
  70,000........................................................          13,567           7,954        3,541   
  90,000........................................................          16,683           9,419        4,254.''
----------------------------------------------------------------------------------------------------------------


       (c) Repeal of Temporary Authority for Variations in End 
     Strengths.--The following provisions of law are repealed:
       (1) Section 402 of the National Defense Authorization Act 
     for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1639; 10 
     U.S.C. 523 note).
       (2) Section 402 of the National Defense Authorization Act 
     for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2743; 10 
     U.S.C. 523 note).
       (3) Section 402 of the National Defense Authorization Act 
     for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 286; 10 
     U.S.C. 523 note).
       (d) Effective Date.--The amendments made by subsections 
     (a), (b), and (c) shall take effect on September 1, 1997.

     SEC. 404. EXTENSION OF REQUIREMENT FOR RECOMMENDATIONS 
                   REGARDING APPOINTMENTS TO JOINT 4-STAR OFFICER 
                   POSITIONS.

       (a) Service Secretary Recommendation Required.--Section 
     604(c) of title 10, United States Code, is amended by 
     striking out ``September 30, 1997'' and inserting in lieu 
     thereof ``September 30, 2000''.
       (b) Grade Relief When Recommendation Made.--Section 
     525(b)(5)(C) of such title is amended by striking out 
     ``September 30, 1997'' and inserting in lieu thereof 
     ``September 30, 2000''.

     SEC. 405. INCREASE IN AUTHORIZED NUMBER OF GENERAL OFFICERS 
                   ON ACTIVE DUTY IN THE MARINE CORPS.

       Section 526(a)(4) of title 10, United States Code, is 
     amended by striking out ``68'' and inserting in lieu thereof 
     ``80''.
                       Subtitle B--Reserve Forces

     SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

       (a) In General.--The Armed Forces are authorized strengths 
     for Selected Reserve personnel of the reserve components as 
     of September 30, 1997, as follows:
       (1) The Army National Guard of the United States, 366,758.
       (2) The Army Reserve, 215,179.
       (3) The Naval Reserve, 96,304.
       (4) The Marine Corps Reserve, 42,000.
       (5) The Air National Guard of the United States, 109,178.
       (6) The Air Force Reserve, 73,311.
       (7) The Coast Guard Reserve, 8,000.
       (b) Waiver Authority.--The Secretary of Defense may vary 
     the end strength authorized by subsection (a) by not more 
     than 2 percent.
       (c) Adjustments.--The end strengths prescribed by 
     subsection (a) for the Selected Reserve of any reserve 
     component 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, 1997, 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, 22,798.
       (2) The Army Reserve, 11,729.
       (3) The Naval Reserve, 16,603.
       (4) The Marine Corps Reserve, 2,559.
       (5) The Air National Guard of the United States, 10,403.
       (6) The Air Force Reserve, 655.

     SEC. 413. END STRENGTHS FOR MILITARY TECHNICIANS.

       (a) Authorization for Fiscal Year 1997.--The minimum number 
     of military technicians as of the last day of fiscal year 
     1997 for the reserve components of the Army and the Air Force 
     (notwithstanding section 129 of title 10, United States Code) 
     shall be the following:
       (1) For the Army Reserve, 6,799.
       (2) For the Army National Guard of the United States, 
     25,500.
       (3) For the Air Force Reserve, 9,802.
       (4) For the Air National Guard of the United States, 
     23,299.
       (b) Information To Be Provided With Future Authorization 
     Requests.--Section

[[Page H9013]]

     10216 of title 10, United States Code, is amended--
       (1) by redesignating subsection (b) as subsection (c); and
       (2) by inserting after subsection (a) the following new 
     subsection (b):
       ``(b) Information Required To Be Submitted With Annual End 
     Strength Authorization Request.--(1) The Secretary of Defense 
     shall include as part of the budget justification documents 
     submitted to Congress with the budget of the Department of 
     Defense for any fiscal year the following information with 
     respect to the end strengths for military technicians 
     requested in that budget pursuant to section 115(g) of this 
     title, shown separately for each of the Army and Air Force 
     reserve components:
       ``(A) The number of dual-status technicians in the high 
     priority units and organizations specified in subsection 
     (a)(1).
       ``(B) The number of technicians other than dual-status 
     technicians in the high priority units and organizations 
     specified in subsection (a)(1).
       ``(C) The number of dual-status technicians in other than 
     high priority units and organizations specified in subsection 
     (a)(1).
       ``(D) The number of technicians other than dual-status 
     technicians in other than high priority units and 
     organizations specified in subsection (a)(1).
       ``(2)(A) If the budget submitted to Congress for any fiscal 
     year requests authorization for that fiscal year under 
     section 115(g) of this title of a military technician end 
     strength for a reserve component of the Army or Air Force in 
     a number that constitutes a reduction from the end strength 
     minimum established by law for that reserve component for the 
     fiscal year during which the budget is submitted, the 
     Secretary of Defense shall submit to the congressional 
     defense committees with that budget a justification providing 
     the basis for that requested reduction in technician end 
     strength.
       ``(B) Any justification submitted under subparagraph (A) 
     shall clearly delineate--
       ``(i) in the case of a reduction that includes a reduction 
     in technicians described in subparagraph (A) or (C) of 
     paragraph (1), the specific force structure reductions 
     forming the basis for such requested technician reduction 
     (and the numbers related to those force structure 
     reductions); and
       ``(ii) in the case of a reduction that includes reductions 
     in technicians described in subparagraphs (B) or (D) of 
     paragraph (1), the specific force structure reductions, 
     Department of Defense civilian personnel reductions, or other 
     reasons forming the basis for such requested technician 
     reduction (and the numbers related to those reductions).''.
       (c) Technical Amendments.--Such section is further 
     amended--
       (1) in subsection (a), by striking out ``section 115'' and 
     inserting in lieu thereof ``section 115(g)''; and
       (2) in subsection (c), as redesignated by subsection 
     (b)(1), by striking out ``after the date of the enactment of 
     this section'' both places it appears and inserting in lieu 
     thereof ``after February 10, 1996,''.

     SEC. 414. ASSURANCE OF CONTINUED ASSIGNMENT OF MILITARY 
                   PERSONNEL TO SERVE IN SELECTIVE SERVICE SYSTEM.

       (a) Number of Military Personnel To Be Assigned.--Section 
     10 of the Military Selective Service Act (50 U.S.C. App. 460) 
     is amended--
       (1) in subsection (b)(2), by inserting ``, subject to 
     subsection (e),'' after ``to employ such number of civilians, 
     and''; and
       (2) by inserting after subsection (d) the following new 
     subsection:
       ``(e) The total number of armed forces personnel assigned 
     to the Selective Service System under subsection (b)(2) at 
     any time may not be less than the number of such personnel 
     determined by the Director of Selective Service to be 
     necessary, but not to exceed 745 persons, except that the 
     President may assign additional armed forces personnel to the 
     Selective Service System during a time of war or a national 
     emergency declared by Congress or the President.''.
       (b) Stylistic Amendments.--Subsection (b) of such section 
     is amended--
       (1) by striking out ``authorized--'' in the matter 
     preceding paragraph (1) and inserting in lieu thereof 
     ``authorized to undertake the following:'';
       (2) by striking out ``to'' at the beginning of paragraphs 
     (1) through (7) and inserting in lieu thereof ``To'';
       (3) by striking out ``subject'' at the beginning of 
     paragraphs (8), (9), and (10) and inserting in lieu thereof 
     ``Subject''; and
       (4) by striking out the semicolon at the end of paragraphs 
     (1) through (9) and inserting in lieu thereof a period.
              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 
     1997 a total of $70,056,130,000. The authorization in the 
     preceding sentence supersedes any other authorization of 
     appropriations (definite or indefinite) for such purpose for 
     fiscal year 1997.
                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Grade of Chief of Naval Research.
Sec. 502. Chief and assistant chief of Army Nurse Corps and Air Force 
              Nurse Corps.
Sec. 503. Navy spot promotion authority for certain lieutenants with 
              critical skills.
Sec. 504. Time for award of degrees by unaccredited educational 
              institutions for graduates to be considered educationally 
              qualified for appointment as Reserve officers in grade O-
              3.
Sec. 505. Exception to baccalaureate degree requirement for appointment 
              in the Naval Reserve in grades above O-2.
Sec. 506. Chief warrant officer promotions.
Sec. 507. Service credit for senior ROTC cadets and midshipmen in 
              simultaneous membership program.
Sec. 508. Continuation on active status for certain Reserve officers of 
              the Air Force.
Sec. 509. Reports on response to recommendations concerning 
              improvements to Department of Defense joint manpower 
              process.
Sec. 510. Frequency of reports to Congress on joint officer management 
              policies.

                 Subtitle B--Enlisted Personnel Policy

Sec. 511. Career service reenlistments for members with at least 10 
              years of service.
Sec. 512. Authority to extend period for entry on active duty under the 
              delayed entry program.

                   Subtitle C--Activation and Recall

Sec. 521. Limitations on recall of retired members to active duty.
Sec. 522. Clarification of definition of active status.
Sec. 523. Limitation of requirement for physical examinations of 
              members of National Guard called into Federal service.

                Subtitle D--Reserve Component Retirement

Sec. 531. Increase in annual limit on days of inactive duty training 
              creditable toward reserve retirement.
Sec. 532. Retirement of reserve enlisted members who qualify for active 
              duty retirement after administrative reduction in 
              enlisted grade.
Sec. 533. Authority for a Reserve on active duty to waive retirement 
              sanctuary.
Sec. 534. Eligibility of Reserves for disability retirement.

              Subtitle E--Other Reserve Component Matters

Sec. 541. Training for Reserves on active duty in support of the 
              Reserves.
Sec. 542. Eligibility for enrollment in Ready Reserve mobilization 
              income insurance program.
Sec. 543. Reserve credit for participation in Health Professions 
              Scholarship and Financial Assistance Program.
Sec. 544. Amendments to Reserve Officer Personnel Management Act 
              provisions.
Sec. 545. Report on number of advisers in active component support of 
              Reserves pilot program.
Sec. 546. Sense of Congress and report regarding reemployment rights 
              for mobilized reservists employed in foreign countries.
Sec. 547. Payment of premiums under Mobilization Income Insurance 
              Program.

                 Subtitle F--Officer Education Programs

Sec. 551. Oversight and management of Senior Reserve Officers' Training 
              Corps program.
Sec. 552. Prohibition on reorganization of Army ROTC cadet command or 
              termination of senior ROTC units pending report on ROTC.
Sec. 553. Pilot program to test expansion of ROTC program to include 
              graduate students.
Sec. 554. Demonstration project for instruction and support of Army 
              ROTC units by members of the Army Reserve and National 
              Guard.
Sec. 555. Extension of maximum age for appointment as a cadet or 
              midshipman in the Senior Reserve Officers' Training Corps 
              and the service academies.
Sec. 556. Expansion of eligibility for education benefits to include 
              certain Reserve Officers' Training Corps (ROTC) 
              participants.
Sec. 557. Comptroller General report on cost and policy implications of 
              permitting up to five percent of service academy 
              graduates to be assigned directly to Reserve duty upon 
              graduation.

                   Subtitle G--Decorations and Awards

Sec. 561. Authority for award of Medal of Honor to certain African 
              American soldiers who served during World War II.
Sec. 562. Waiver of time limitations for award of certain decorations 
              to specified persons.
Sec. 563. Replacement of certain American Theater Campaign Ribbons.

                       Subtitle H--Other Matters

Sec. 571. Hate crimes in the military.
Sec. 572. Disability coverage for members granted excess leave for 
              educational or emergency purposes.

[[Page H9014]]

Sec. 573. Clarification of authority of a reserve judge advocate to act 
              as a military notary public when not in a duty status.
Sec. 574. [H531-539 SR w/am] Panel on jurisdiction of courts-martial 
              for the National Guard when not in Federal service.
Sec. 575. Authority to expand law enforcement placement program to 
              include firefighters.
Sec. 576. Improvements to program to assist separated military and 
              civilian personnel to obtain employment as teachers or 
              teachers' aides.
Sec. 577. Retirement at grade to which selected for promotion when a 
              physical disability is found at any physical examination.
Sec. 578. [S537 HR w/am] Revisions to missing persons authorities.

      Subtitle I--Commissioned Corps of the Public Health Service

Sec. 581. Applicability to Public Health Service of prohibition on 
              crediting cadet or midshipmen service at the service 
              academies.
Sec. 582. Exception to strength limitations for Public Health Service 
              officers assigned to the Department of Defense.
Sec. 583. Authority to provide legal assistance to Public Health 
              Service officers.
                  Subtitle A--Officer Personnel Policy

     SEC. 501. GRADE OF CHIEF OF NAVAL RESEARCH.

       (a) Rear Admiral (Upper Half).--Section 5022(a) of title 
     10, United States Code, is amended--
       (1) by inserting ``(1)'' after ``(a)''; and
       (2) by adding at the end the following:
       ``(2) Unless appointed to higher grade under another 
     provision of law, an officer, while serving in the Office of 
     Naval Research as Chief of Naval Research, has the rank of 
     rear admiral (upper half).''.
       (b) Effective Date.--Paragraph (2) of section 5022(a) of 
     title 10, United States Code, as added by subsection (a), 
     shall take effect upon the occurrence of the first vacancy in 
     the position of Chief of Naval Research after the date of the 
     enactment of this Act.

     SEC. 502. CHIEF AND ASSISTANT CHIEF OF ARMY NURSE CORPS AND 
                   AIR FORCE NURSE CORPS.

       (a) Army Nurse Corps.--(1) Subsection (b) of section 3069 
     of title 10, United States Code, is amended--
       (A) in the first sentence, by striking out ``major'' and 
     inserting in lieu thereof ``lieutenant colonel'';
       (B) by inserting after the first sentence the following: 
     ``An appointee who holds a lower regular grade shall be 
     appointed in the regular grade of brigadier general.''; and
       (C) in the last sentence, by inserting ``to the same 
     position'' before the period at the end.
       (2) Subsection (c) of such section is amended by striking 
     out ``major'' in the first sentence and inserting in lieu 
     thereof ``lieutenant colonel''.
       (3) The heading of such section is amended to read as 
     follows:

     ``Sec. 3069. Army Nurse Corps: composition; Chief and 
       assistant chief; appointment; grade

       (b) Air Force Nurse Corps.--Chapter 807 of such title is 
     amended by inserting after section 8067 the following new 
     section:

     ``Sec. 8069. Air Force nurses: Chief and assistant chief; 
       appointment; grade

       ``(a) Positions of Chief and Assistant Chief.--There are a 
     Chief and assistant chief of the Air Force Nurse Corps.
       ``(b) Chief.--The Secretary of the Air Force shall appoint 
     the Chief from the officers of the Regular Air Force 
     designated as Air Force nurses whose regular grade is above 
     lieutenant colonel and who are recommended by the Surgeon 
     General. An appointee who holds a lower regular grade shall 
     be appointed in the regular grade of brigadier general. The 
     Chief serves during the pleasure of the Secretary, but not 
     for more than three years, and may not be reappointed to the 
     same position.
       ``(c) Assistant Chief.--The Surgeon General shall appoint 
     the assistant chief from the officers of the Regular Air 
     Force designated as Air Force nurses whose regular grade is 
     above lieutenant colonel.''.
       (c) Clerical Amendments.--(1) The item relating to section 
     3069 in the table of sections at the beginning of chapter 307 
     of such title is amended to read as follows:
``3069. Army Nurse Corps: composition; Chief and assistant chief; 
              appointment; grade.''.
       (2) The table of sections at the beginning of chapter 807 
     of such title is amended by inserting after the item relating 
     to section 8067 the following new item:
``8069. Air Force Nurse Corps: Chief and assistant chief; appointment; 
              grade.''.

     SEC. 503. NAVY SPOT PROMOTION AUTHORITY FOR CERTAIN 
                   LIEUTENANTS WITH CRITICAL SKILLS.

       (a) Advice-and-Consent Appointments.--Subsection (a) of 
     section 5721 of title 10, United States Code, is amended by 
     striking out ``the President alone'' and inserting in lieu 
     thereof ``the President, by and with the advice and consent 
     of the Senate''.
       (b) Repeal of Termination of Authority.--Such section is 
     further amended by striking out subsection (g).
       (c) Clerical Amendment.--The caption for subsection (a) is 
     amended to read as follows: ``Promotion Authority for Certain 
     Officers With Critical Skills.--''.

     SEC. 504. TIME FOR AWARD OF DEGREES BY UNACCREDITED 
                   EDUCATIONAL INSTITUTIONS FOR GRADUATES TO BE 
                   CONSIDERED EDUCATIONALLY QUALIFIED FOR 
                   APPOINTMENT AS RESERVE OFFICERS IN GRADE O-3.

       Section 12205(c)(2)(C) of title 10, United States Code, is 
     amended by striking out ``three years'' and inserting in lieu 
     thereof ``eight years''.

     SEC. 505. EXCEPTION TO BACCALAUREATE DEGREE REQUIREMENT FOR 
                   APPOINTMENT IN THE NAVAL RESERVE IN GRADES 
                   ABOVE O-2.

       Section 12205(b)(3) of title 10, United States Code, is 
     amended by inserting ``or the Seaman to Admiral program'' 
     after ``(NAVCAD) program''.

     SEC. 506. CHIEF WARRANT OFFICER PROMOTIONS.

       (a) Reduction of Minimum Time in Grade Required for 
     Consideration for Promotion.--Section 574(e) of title 10, 
     United States Code, is amended by striking out ``three years 
     of service'' and inserting in lieu thereof ``two years of 
     service''.
       (b) Below-Zone Selection.--Section 575(b)(1) of such title 
     is amended by inserting ``chief warrant officer, W-3,'' in 
     the first sentence after ``to consider warrant officers for 
     selection for promotion to the grade of''.

     SEC. 507. SERVICE CREDIT FOR SENIOR ROTC CADETS AND 
                   MIDSHIPMEN IN SIMULTANEOUS MEMBERSHIP PROGRAM.

       (a) Amendments to Title 10.--(1) Section 2106(c) of title 
     10, United States Code, is amended by striking out ``while 
     serving on active duty other than for training after July 31, 
     1990, while a member of the Selected Reserve'' and inserting 
     in lieu thereof ``performed on or after August 1, 1979, as a 
     member of the Selected Reserve''.
       (2) Section 2107(g) of such title is amended by striking 
     out ``while serving on active duty other than for training 
     after July 31, 1990, while a member of the Selected Reserve'' 
     and inserting in lieu thereof ``performed on or after August 
     1, 1979, as a member of the Selected Reserve''.
       (3) Section 2107a(g) of such title is amended by inserting 
     ``, other than enlisted service performed after August 1, 
     1979, as a member of Selected Reserve'' after ``service as a 
     cadet or with concurrent enlisted service''.
       (b) Amendment to Title 37.--Section 205(d) of title 37, 
     United States Code, is amended by striking out ``that service 
     after July 31, 1990, that the officer performed while serving 
     on active duty'' and inserting in lieu thereof ``for service 
     that the officer performed on or after August 1, 1979.''.
       (c) Benefits Not To Accrue for Prior Periods.--No increase 
     in pay or retired or retainer pay shall accrue for periods 
     before the date of the enactment of this Act by reason of the 
     amendments made by this section.

     SEC. 508. CONTINUATION ON ACTIVE STATUS FOR CERTAIN RESERVE 
                   OFFICERS OF THE AIR FORCE.

       (a) Authority.--Section 14507 of title 10, United States 
     Code, is amended by adding at the end the following new 
     subsection:
       ``(c) Temporary Authority To Retain Certain Officers 
     Designated as Judge Advocates.--(1) Notwithstanding the 
     provisions of subsections (a) and (b), the Secretary of the 
     Air Force may retain on the reserve active-status list any 
     reserve officer of the Air Force who is designated as a judge 
     advocate and who obtained the first professional degree in 
     law while on an educational delay program subsequent to being 
     commissioned through the Reserve Officers' Training Corps.
       ``(2) No more than 50 officers may be retained on the 
     reserve active-status list under the authority of paragraph 
     (1) at any time.
       ``(3) No officer may be retained on the reserve active-
     status list under the authority of paragraph (1) for a period 
     exceeding three years from the date on which, but for that 
     authority, that officer would have been removed from the 
     reserve active-status list under subsection (a) or (b).
       ``(4) The authority of the Secretary of the Air Force under 
     paragraph (1) expires on September 30, 2003.''.
       (b) Effective Date.--Subsection (c) of section 14507 of 
     title 10, United States Code, as added by subsection (a), 
     shall take effect on October 1, 1996.

     SEC. 509. REPORTS ON RESPONSE TO RECOMMENDATIONS CONCERNING 
                   IMPROVEMENTS TO DEPARTMENT OF DEFENSE JOINT 
                   MANPOWER PROCESS.

       (a) Semiannual Report.--The Secretary of Defense shall 
     submit to Congress a semiannual report on the status of 
     actions taken by the Secretary to implement the 
     recommendations made by the Department of Defense Inspector 
     General in the report of November 29, 1995, entitled 
     ``Inspection of the Department of Defense Joint Manpower 
     Process'' (Report No. 96-029). The first such report shall be 
     submitted not later than February 1, 1997. The requirement to 
     submit such reports terminates after the fourth such report 
     is submitted.
       (b) Additional Matter for First Report.--As part of the 
     first report under subsection (a), the Secretary shall 
     include the following:
       (1) The Secretary's assessment as to the need to establish 
     a joint, centralized permanent organization in the Department 
     of Defense to determine, validate, approve, and manage 
     military and civilian manpower requirements resources at 
     joint organizations.

[[Page H9015]]

       (2) The Secretary's assessment of the Department of Defense 
     timeline and plan to increase the capability of the joint 
     professional military education system (including the Armed 
     Forces Staff College) to overcome the capacity limitations 
     cited in the report referred to in subsection (a).
       (3) The Secretary's plan and timeline to provide the 
     necessary training and education of reserve component 
     officers.
       (c) GAO Assessment.--The Comptroller General of the United 
     States shall assess the completeness and adequacy of the 
     corrective actions taken by the Secretary with respect to the 
     matters covered in the Inspector General report referred to 
     in subsection (a). Not later than one year after the date of 
     the enactment of this Act, the Comptroller General shall 
     submit to Congress a report, based on the assessment under 
     this subsection, providing the Comptroller General's findings 
     and recommendations.

     SEC. 510. FREQUENCY OF REPORTS TO CONGRESS ON JOINT OFFICER 
                   MANAGEMENT POLICIES.

       (a) Change from Semiannual to Annual Report.--Section 
     662(b) of title 10, United States Code, is amended by 
     striking out ``Report.--The Secretary of Defense shall 
     periodically (and not less often than every six months) 
     report to Congress on the promotion rates'' and inserting in 
     lieu thereof ``Annual Report.--Not later than January 1 of 
     each year, the Secretary of Defense shall submit to Congress 
     a report on the promotion rates during the preceding fiscal 
     year''.
       (b) Technical and Conforming Amendments.--Such section is 
     further amended--
       (1) in the first sentence, by striking out ``clauses'' and 
     inserting in lieu thereof ``paragraphs''; and
       (2) in the second sentence--
       (A) by inserting ``for any fiscal year'' after ``such 
     objectives''; and
       (B) by striking out ``periodic report required by this 
     subsection'' and inserting in lieu thereof ``report for that 
     fiscal year''.
                 Subtitle B--Enlisted Personnel Policy

     SEC. 511. CAREER SERVICE REENLISTMENTS FOR MEMBERS WITH AT 
                   LEAST 10 YEARS OF SERVICE.

       Subsection (d) of section 505 of title 10, United States 
     Code, is amended to read as follows:
       ``(d)(1) The Secretary concerned may accept a reenlistment 
     in the Regular Army, Regular Navy, Regular Air Force, Regular 
     Marine Corps, or Regular Coast Guard, as the case may be, for 
     a period determined under this subsection.
       ``(2) In the case of a member who has less than 10 years of 
     service in the armed forces as of the day before the first 
     day of the period for which reenlisted, the period for which 
     the member reenlists shall be at least two years but not more 
     than six years.
       ``(3) In the case of a member who has at least 10 years of 
     service in the armed forces as of the day before the first 
     day of the period for which reenlisted, the Secretary 
     concerned may accept a reenlistment for either--
       ``(A) a specified period of at least two years but not more 
     than six years; or
       ``(B) an unspecified period.
       ``(4) No enlisted member is entitled to be reenlisted for a 
     period that would expire before the end of the member's 
     current enlistment.''.

     SEC. 512. AUTHORITY TO EXTEND PERIOD FOR ENTRY ON ACTIVE DUTY 
                   UNDER THE DELAYED ENTRY PROGRAM.

       (a) Authority.--Section 513(b) of title 10, United States 
     Code, is amended by inserting after the first sentence the 
     following: ``The Secretary concerned may extend the 365-day 
     period for any person for up to an additional 180 days if the 
     Secretary determines that it is in the best interests of the 
     armed force of which that person is a member to do so.''.
       (b) Technical Amendments.--Section 513(b) of such title, as 
     amended by subsection (a), is further amended--
       (1) by inserting ``(1)'' after ``(b)'';
       (2) by designating the third sentence as paragraph (2); and
       (3) in paragraph (2), as so designated, by striking out 
     ``the preceding sentence'' and inserting in lieu thereof 
     ``paragraph (1)''.
                   Subtitle C--Activation and Recall

     SEC. 521. LIMITATIONS ON RECALL OF RETIRED MEMBERS TO ACTIVE 
                   DUTY.

       (a) Revision and Recodification of Authorities Relating to 
     Retired Members Ordered to Active Duty.--Chapter 39 of title 
     10, United States Code, is amended by striking out section 
     688 and inserting in lieu thereof the following:

     ``Sec. 688. Retired members: authority to order to active 
       duty; duties

       ``(a) Authority.--Under regulations prescribed by the 
     Secretary of Defense, a member described in subsection (b) 
     may be ordered to active duty by the Secretary of the 
     military department concerned at any time.
       ``(b) Covered Members.--Except as provided in subsection 
     (d), subsection (a) applies to the following members of the 
     armed forces:
       ``(1) A retired member of the Regular Army, Regular Navy, 
     Regular Air Force, or Regular Marine Corps.
       ``(2) A member of the Retired Reserve who was retired under 
     section 1293, 3911, 3914, 6323, 8911, or 8914 of this title.
       ``(3) A member of the Fleet Reserve or Fleet Marine Corps 
     Reserve.
       ``(c) Duties of Member Ordered to Active Duty.--The 
     Secretary concerned may, to the extent consistent with other 
     provisions of law, assign a member ordered to active duty 
     under this section to such duties as the Secretary considers 
     necessary in the interests of national defense.
       ``(d) Exclusion of Officers Retired on Selective Early 
     Retirement Basis.--The following officers may not be ordered 
     to active duty under this section:
       ``(1) An officer who retired under section 638 of this 
     title.
       ``(2) An officer who--
       ``(A) after having been notified that the officer was to be 
     considered for early retirement under section 638 of this 
     title by a board convened under section 611(b) of this title 
     and before being considered by that board, requested 
     retirement under section 3911, 6323, or 8911 of this title; 
     and
       ``(B) was retired pursuant to that request.
       ``(e) Limitation of Period of Recall Service.--A member 
     ordered to active duty under subsection (a) may not serve on 
     active duty pursuant to orders under that subsection for more 
     than 12 months within the 24 months following the first day 
     of the active duty to which ordered under that subsection.
       ``(f) Waiver for Periods of War or National Emergency.--
     Subsections (d) and (e) do not apply in time of war or of 
     national emergency declared by Congress or the President.

     ``Sec. 689. Retired members: grade in which ordered to active 
       duty and upon release from active duty

       ``(a) General Rule for Grade in Which Ordered to Active 
     Duty.--Except as provided in subsections (b) and (c), a 
     retired member ordered to active duty under section 688 of 
     this title shall be ordered to active duty in the member's 
     retired grade.
       ``(b) Members Retired in O-9 and O-10 Grades.--A retired 
     member ordered to active duty under section 688 of this title 
     whose retired grade is above the grade of major general or 
     rear admiral shall be ordered to active duty in the highest 
     permanent grade held by such member while serving on active 
     duty.
       ``(c) Members Who Previously Served in Grade Higher Than 
     Retired Grade.--(1) A retired member ordered to active duty 
     under section 688 of this title who has previously served on 
     active duty satisfactorily, as determined by the Secretary of 
     the military department concerned, in a grade higher than 
     that member's retired grade may be ordered to active duty in 
     the highest grade in which the member had so served 
     satisfactorily, except that such a member may not be so 
     ordered to active duty in a grade above major general or rear 
     admiral.
       ``(2) A retired member ordered to active duty in a grade 
     that is higher than the member's retired grade pursuant to 
     subsection (a) shall be treated for purposes of section 690 
     of this title as if the member was promoted to that higher 
     grade while on that tour of active duty.
       ``(3) If, upon being released from that tour of active 
     duty, such a retired member has served on active duty 
     satisfactorily, as determined by the Secretary concerned, for 
     not less than a total of 36 months in a grade that is a 
     higher grade than the member's retired grade, the member is 
     entitled to placement on the retired list in that grade.
       ``(d) Grade Upon Release From Active Duty.--A member 
     ordered to active duty under section 688 of this title who, 
     while on active duty, is promoted to a grade that is higher 
     than that member's retired grade is entitled, upon that 
     member's release from that tour of active duty, to placement 
     on the retired list in the highest grade in which the member 
     served on active duty satisfactorily, as determined by the 
     Secretary of the military department concerned, for not less 
     than six months.

     ``Sec. 690. Retired members ordered to active duty: 
       limitation on number

       ``(a) General and Flag Officers.--Not more than 15 retired 
     general officers of the Army, Air Force, or Marine Corps, and 
     not more than 15 retired flag officers of the Navy, may be on 
     active duty at any one time. For the purposes of this 
     subsection a retired officer ordered to active duty for a 
     period of 60 days or less is not counted.
       ``(b) Limitation by Service.--(1) Not more than 25 officers 
     of any one armed force may be serving on active duty 
     concurrently pursuant to orders to active duty issued under 
     section 688 of this title.
       ``(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.
       ``(c) Waiver for Periods of War or National Emergency.--
     Subsection (a) does not apply in time of war or of national 
     emergency declared by Congress or the President after 
     November 30, 1980. Subsection (b) does not apply in time of 
     war or of national emergency declared by Congress or the 
     President.''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on September 30, 1997.
       (c) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is

[[Page H9016]]

     amended by striking out the item relating to section 688 and 
     inserting in lieu thereof the following:
``688. Retired members: authority to order to active duty; duties.
``689. Retired members: grade in which ordered to active duty and upon 
              release from active duty.
``690. Retired members ordered to active duty: limitation on number.''.
       (d) Cross Reference Amendment.--Section 6151(a) of title 
     10, United States Code, is amended by striking out ``688'' 
     and inserting in lieu thereof ``689''.

     SEC. 522. CLARIFICATION OF DEFINITION OF ACTIVE STATUS.

       Section 101(d)(4) of title 10, United States Code, is 
     amended by striking out ``a reserve commissioned officer, 
     other than a commissioned warrant officer,'' and inserting in 
     lieu thereof the following: ``a member of a reserve 
     component''.

     SEC. 523. LIMITATION OF REQUIREMENT FOR PHYSICAL EXAMINATIONS 
                   OF MEMBERS OF NATIONAL GUARD CALLED INTO 
                   FEDERAL SERVICE.

       Section 12408(a) of title 10, United States Code, is 
     amended by inserting ``under section 12301(a), 12302, or 
     12304 of this title'' after ``called into Federal service''.
                Subtitle D--Reserve Component Retirement

     SEC. 531. INCREASE IN ANNUAL LIMIT ON DAYS OF INACTIVE DUTY 
                   TRAINING CREDITABLE TOWARD RESERVE RETIREMENT.

       (a) Increase in Limit.--Section 12733(3) is amended by 
     inserting before the period at the end the following: ``of 
     service before the year of service in which the date of the 
     enactment of the National Defense Authorization Act for 
     Fiscal Year 1997 occurs and not more than 75 days in any 
     subsequent year of service''.
       (b) Tracking System for Award of Retirement Points.--To 
     better enable the Secretary of Defense and Congress to assess 
     the cost and the effect on readiness of the amendment made by 
     subsection (a) and of other potential changes to the Reserve 
     retirement system under chapter 1223 of title 10, United 
     States Code, the Secretary of Defense shall require the 
     Secretary of each military department to implement a system 
     to monitor the award of retirement points for purposes of 
     that chapter by categories in accordance with the 
     recommendation set forth in the August 1988 report of the 
     Sixth Quadrennial Review of Military Compensation.
       (c) Recommendations to Congress.--The Secretary shall 
     submit to Congress, not later than one year after the date of 
     the enactment of this Act, the recommendations of the 
     Secretary with regard to the adoption of the following 
     Reserve retirement initiatives recommended in the August 1988 
     report of the Sixth Quadrennial Review of Military 
     Compensation:
       (1) Elimination of membership points under subparagraph (C) 
     of section 12732(a)(2) of title 10, United States Code, in 
     conjunction with a decrease from 50 to 35 in the number of 
     points required for a satisfactory year under that section.
       (2) Limitation to 60 in any year on the number of points 
     that may be credited under subparagraph (B) of section 
     12732(a)(2) of such title at two points per day.
       (3) Limitation to 360 in any year on the total number of 
     retirement points countable for purposes of section 12733 of 
     such title.

     SEC. 532. RETIREMENT OF RESERVE ENLISTED MEMBERS WHO QUALIFY 
                   FOR ACTIVE DUTY RETIREMENT AFTER ADMINISTRATIVE 
                   REDUCTION IN ENLISTED GRADE.

       (a) Army.--(1) Chapter 369 of title 10, United States Code, 
     is amended by inserting after section 3962 the following new 
     section:

     ``Sec. 3963. Highest grade held satisfactorily: Reserve 
       enlisted members reduced in grade not as a result of the 
       member's misconduct

       ``(a) A Reserve enlisted member of the Army described in 
     subsection (b) who is retired under section 3914 of this 
     title shall be retired in the highest enlisted grade in which 
     the member served on active duty satisfactorily (or, in the 
     case of a member of the National Guard, in which the member 
     served on full-time National Guard duty satisfactorily), as 
     determined by the Secretary of the Army.
       ``(b) This section applies to a Reserve enlisted member 
     who--
       ``(1) at the time of retirement is serving on active duty 
     (or, in the case of a member of the National Guard, on full-
     time National Guard duty) in a grade lower than the highest 
     enlisted grade held by the member while on active duty (or 
     full-time National Guard duty); and
       ``(2) was previously administratively reduced in grade not 
     as a result of the member's own misconduct, as determined by 
     the Secretary of the Army.
       ``(c) This section applies with respect to Reserve enlisted 
     members who are retired under section 3914 of this title 
     after September 30, 1996.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     3962 the following new item:
``3963. Highest grade held satisfactorily: Reserve enlisted members 
              reduced in grade not as a result of the member's 
              misconduct.''.
       (b) Navy and Marine Corps.--(1) Chapter 571 of title 10, 
     United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 6336. Highest grade held satisfactorily: Reserve 
       enlisted members reduced in grade not as a result of the 
       member's misconduct

       ``(a) A member of the Naval Reserve or Marine Corps Reserve 
     described in subsection (b) who is transferred to the Fleet 
     Reserve or the Fleet Marine Corps Reserve under section 6330 
     of this title shall be transferred in the highest enlisted 
     grade in which the member served on active duty 
     satisfactorily, as determined by the Secretary of the Navy.
       ``(b) This section applies to a Reserve enlisted member 
     who--
       ``(1) at the time of transfer to the Fleet Reserve or Fleet 
     Marine Corps Reserve is serving on active duty in a grade 
     lower than the highest enlisted grade held by the member 
     while on active duty; and
       ``(2) was previously administratively reduced in grade not 
     as a result of the member's own misconduct, as determined by 
     the Secretary of the Navy.
       ``(c) This section applies with respect to enlisted members 
     of the Naval Reserve and Marine Corps Reserve who are 
     transferred to the Fleet Reserve or the Fleet Marine Corps 
     Reserve after September 30, 1996.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:
``6336. Highest grade held satisfactorily: Reserve enlisted members 
              reduced in grade not as a result of the member's 
              misconduct.''.
       (c) Air Force.--(1) Chapter 869 of title 10, United States 
     Code, is amended by inserting after section 8962 the 
     following new section:

     ``Sec. 8963. Highest grade held satisfactorily: Reserve 
       enlisted members reduced in grade not as a result of the 
       member's misconduct

       ``(a) A Reserve enlisted member of the Air Force described 
     in subsection (b) who is retired under section 8914 of this 
     title shall be retired in the highest enlisted grade in which 
     the member served on active duty satisfactorily (or, in the 
     case of a member of the National Guard, in which the member 
     served on full-time National Guard duty satisfactorily), as 
     determined by the Secretary of the Air Force.
       ``(b) This section applies to a Reserve enlisted member 
     who--
       ``(1) at the time of retirement is serving on active duty 
     (or, in the case of a member of the National Guard, on full-
     time National Guard duty) in a grade lower than the highest 
     enlisted grade held by the member while on active duty (or 
     full-time National Guard duty); and
       ``(2) was previously administratively reduced in grade not 
     as a result of the member's own misconduct, as determined by 
     the Secretary of the Air Force.
       ``(c) This section applies with respect to Reserve enlisted 
     members who are retired under section 8914 of this title 
     after September 30, 1996.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     8962 the following new item:
``8963. Highest grade held satisfactorily: Reserve enlisted members 
              reduced in grade not as a result of the member's 
              misconduct.''.
       (d) Computation of Retired and Retainer Pay Based Upon 
     Retired Grade.--(1) Section 3991 of such title is amended by 
     adding at the end the following new subsection:
       ``(c) Special Rule for Retired Reserve Enlisted Members 
     Covered by Section 3963.--In the case of a Reserve enlisted 
     member retired under section 3914 of this title whose retired 
     grade is determined under section 3963 of this title and who 
     first became a member of a uniformed service before September 
     8, 1980, the retired pay base of the member (notwithstanding 
     section 1406(a)(1) of this title) is the amount of the 
     monthly basic pay of the member's retired grade (determined 
     based upon the rates of basic pay applicable on the date of 
     the member's retirement), and that amount shall be used for 
     the purposes of subsection (a)(1)(A) rather than the amount 
     computed under section 1406(c) of this title.''.
       (2) Section 6333 of such title is amended by adding at the 
     end the following new subsection:
       ``(c) In the case of a Reserve enlisted member whose grade 
     upon transfer to the Fleet Reserve or Fleet Marine Corps 
     Reserve is determined under section 6336 of this title and 
     who first became a member of a uniformed service before 
     September 8, 1980, the retainer pay base of the member 
     (notwithstanding section 1406(a)(1) of this title) is the 
     amount of the monthly basic pay of the grade in which the 
     member is so transferred (determined based upon the rates of 
     basic pay applicable on the date of the member's transfer), 
     and that amount shall be used for the purposes of the table 
     in subsection (a) rather than the amount computed under 
     section 1406(d) of this title.''.
       (3) Section 8991 of such title is amended by adding at the 
     end the following new subsection:
       ``(c) Special Rule for Retired Reserve Enlisted Members 
     Covered by Section 8963.--In the case of a Reserve enlisted 
     member retired under section 8914 of this title whose retired 
     grade is determined under section 8963 of this title and who 
     first became a member of a uniformed service before September 
     8, 1980, the retired pay base of the member (notwithstanding 
     section 1406(a)(1) of this title) is the amount of the 
     monthly basic pay of the member's retired grade (determined 
     based upon the rates of basic pay applicable on the date of 
     the member's retirement), and that amount shall be used for

[[Page H9017]]

     the purposes of subsection (a)(1)(A) rather than the amount 
     computed under section 1406(e) of this title.''.

     SEC. 533. AUTHORITY FOR A RESERVE ON ACTIVE DUTY TO WAIVE 
                   RETIREMENT SANCTUARY.

       Section 12686 of title 10, United States Code, is amended--
       (1) by inserting ``(a) Limitation.--'' before ``Under 
     regulations''; and
       (2) by adding at the end the following:
       ``(b) Waiver.--With respect to a member of a reserve 
     component who is to be ordered to active duty (other than for 
     training) under section 12301 of this title pursuant to an 
     order to active duty that specifies a period of less than 180 
     days and who (but for this subsection) would be covered by 
     subsection (a), the Secretary concerned may require, as a 
     condition of such order to active duty, that the member waive 
     the applicability of subsection (a) to the member for the 
     period of active duty covered by that order. In carrying out 
     this subsection, the Secretary concerned may require that a 
     waiver under the preceding sentence be executed before the 
     period of active duty begins.''.

     SEC. 534. ELIGIBILITY OF RESERVES FOR DISABILITY RETIREMENT.

       Paragraph (2) of section 1204 of title 10, United States 
     Code, is amended to read as follows:
       ``(2) the disability is the proximate result of, or was 
     incurred in line of duty after the date of the enactment of 
     this Act as a result of--
       ``(A) performing active duty or inactive-duty training;
       ``(B) traveling directly to or from the place at which such 
     duty is performed; or
       ``(C) an injury, illness, or disease incurred or aggravated 
     while remaining overnight, between successive periods of 
     inactive-duty training, at or in the vicinity of the site of 
     the inactive duty training, if the site is outside reasonable 
     commuting distance of the member's residence;''.
              Subtitle E--Other Reserve Component Matters

     SEC. 541. TRAINING FOR RESERVES ON ACTIVE DUTY IN SUPPORT OF 
                   THE RESERVES.

       Subsection (b) of section 12310 of title 10, United States 
     Code, is amended to read as follows:
       ``(b) A Reserve on active duty as described in subsection 
     (a) may be provided training consistent with training 
     provided to other members on active duty, as the Secretary 
     concerned sees fit.''.

     SEC. 542. ELIGIBILITY FOR ENROLLMENT IN READY RESERVE 
                   MOBILIZATION INCOME INSURANCE PROGRAM.

       Section 12524 of title 10, United States Code, is amended 
     by adding at the end the following new subsection:
       ``(g) Members of Individual Ready Reserve.--Notwithstanding 
     any other provision of this section, and pursuant to 
     regulations issued by the Secretary, a member of the 
     Individual Ready Reserve who becomes a member of the Selected 
     Reserve shall not be denied eligibility to purchase insurance 
     under this chapter upon becoming a member of the Selected 
     Reserve unless the member previously declined to enroll in 
     the program of insurance under this chapter while a member of 
     the Selected Reserve.''.

     SEC. 543. RESERVE CREDIT FOR PARTICIPATION IN HEALTH 
                   PROFESSIONS SCHOLARSHIP AND FINANCIAL 
                   ASSISTANCE PROGRAM.

       (a) Credit Authorized.--Section 2126 of title 10, United 
     States Code, is amended--
       (1) by striking out ``Service performed'' and inserting in 
     lieu thereof ``(a) Service Not Creditable.--Except as 
     provided in subsection (b), service performed''; and
       (2) by adding at the end the following:
       ``(b) Service Creditable for Certain Purposes.--(1) The 
     Secretary concerned may authorize service performed by a 
     member of the program in pursuit of a course of study under 
     this subchapter to be counted in accordance with this 
     subsection if the member--
       ``(A) completes the course of study;
       ``(B) completes the active duty obligation imposed under 
     section 2123(a) of this title; and
       ``(C) possesses a specialty designated by the Secretary 
     concerned as critically needed in wartime.
       ``(2) Service credited under paragraph (1) counts only for 
     the following purposes:
       ``(A) Award of retirement points for computation of years 
     of service under section 12732 of this title and for 
     computation of retired pay under section 12733 of this title.
       ``(B) Computation of years of service creditable under 
     section 205 of title 37.
       ``(3) For purposes of paragraph (2)(A), a member may be 
     credited in accordance with paragraph (1) with not more than 
     50 points for each year of participation in a course of study 
     that the member satisfactorily completes as a member of the 
     program.
       ``(4) Service may not be counted under paragraph (1) for 
     more than four years of participation in a course of study as 
     a member of the program.
       ``(5) A member is not entitled to any retroactive award of, 
     or increase in, pay or allowances under title 37 by reason of 
     an award of service credit under paragraph (1).''.
       (b) Award of Retirement Points.--(1) Section 12732(a)(2) of 
     such title is amended--
       (A) by inserting after clause (C) the following:
       ``(D) Points credited for the year under section 2126(b) of 
     this title.''; and
       (B) in the matter following clause (D), as inserted by 
     paragraph (1), by striking out ``and (C)'' and inserting in 
     lieu thereof ``(C), and (D)''.
       (2) Section 12733(3) of such title is amended by striking 
     out ``or (C)'' and inserting in lieu thereof ``(C), or (D)''.

     SEC. 544. AMENDMENTS TO RESERVE OFFICER PERSONNEL MANAGEMENT 
                   ACT PROVISIONS.

       (a) Service Requirement for Retirement in Highest Grade 
     Held.--Section 1370(d) of title 10, United States Code, is 
     amended--
       (1) by redesignating paragraph (3) as paragraph (4);
       (2) in paragraph (2)(A), by striking out ``(A)'';
       (3) by redesignating paragraph (2)(B) as paragraph (3); and
       (4) in paragraph (3), as so redesignated--
       (A) by designating the first sentence as subparagraph (A);
       (B) by designating the second sentence as subparagraph (B);
       (C) in subparagraph (B), as so redesignated, by striking 
     out ``the preceding sentence'' and inserting in lieu thereof 
     ``subparagraph (A)''; and
       (D) by adding at the end the following:
       ``(C) If a person covered by subparagraph (A) has completed 
     at least six months of satisfactory service in grade, the 
     person was serving in that grade while serving in a position 
     of adjutant general required under section 314 of title 32 or 
     while serving in a position of assistant adjutant general 
     subordinate to such a position of adjutant general, and the 
     person has failed to complete three years of service in that 
     grade solely because the person's appointment to such 
     position has been terminated or vacated as described in 
     section 324(b) of such title, then such person may be 
     credited with satisfactory service in that grade, 
     notwithstanding the failure to complete three years of 
     service in that grade.
       ``(D) To the extent authorized by the Secretary of the 
     military department concerned, a person who, after having 
     been recommended for promotion in a report of a promotion 
     board but before being promoted to the recommended grade, 
     served in a position for which that grade is the minimum 
     authorized grade may be credited for purposes of subparagraph 
     (A) as having served in that grade for the period for which 
     the person served in that position while in the next lower 
     grade. The period credited may not include any period before 
     the date on which the Senate provides advice and consent for 
     the appointment of that person in the recommended grade.
       ``(E) To the extent authorized by the Secretary of the 
     military department concerned, a person who, after having 
     been extended temporary Federal recognition as a reserve 
     officer of the Army National Guard in a particular grade 
     under section 308 of title 32 or temporary Federal 
     recognition as a reserve officer of the Air National Guard in 
     a particular grade under such section, served in a position 
     for which that grade is the minimum authorized grade may be 
     credited for purposes of subparagraph (A) as having served in 
     that grade for the period for which the person served in that 
     position while extended the temporary Federal recognition, 
     but only if the person was subsequently extended permanent 
     Federal recognition as a reserve officer in that grade and 
     also served in that position after being extended the 
     permanent Federal recognition.''.
       (b) Exception to Requirement for Retention of Reserve 
     Officers Until Completion of Required Service.--Section 
     12645(b)(2) of such title is amended by inserting ``or a 
     reserve active-status list'' after ``active-duty list''.
       (c) Technical Correction.--Section 14314(b)(2)(B) of such 
     title is amended by striking out ``of the Air Force''.

     SEC. 545. REPORT ON NUMBER OF ADVISERS IN ACTIVE COMPONENT 
                   SUPPORT OF RESERVES PILOT PROGRAM.

       (a) Report on Number of Active Component Advisers.--Not 
     later than six months after the date of the enactment of this 
     Act, the Secretary of Defense shall submit to the Committee 
     on Armed Services of the Senate and the Committee on National 
     Security of the House of Representatives a report setting 
     forth the Secretary's determination as to the appropriate 
     number of active component personnel to be assigned to serve 
     as advisers to reserve components under section 414 of the 
     National Defense Authorization Act for Fiscal Years 1992 and 
     1993 (10 U.S.C. 12001 note). If the Secretary's determination 
     is that such number should be a number other than the 
     required minimum number in effect under subsection (c) of 
     such section, the Secretary shall include in the report an 
     explanation providing the Secretary's justification for the 
     number recommended.
       (b) Technical Amendment.--Section 414(a) of the National 
     Defense Authorization Act for Fiscal Years 1992 and 1993 (10 
     U.S.C. 12001 note) is amended by striking out ``During fiscal 
     years 1992 and 1993, the Secretary of the Army shall 
     institute'' and inserting in lieu thereof ``The Secretary of 
     the Army shall carry out''.

     SEC. 546. SENSE OF CONGRESS AND REPORT REGARDING REEMPLOYMENT 
                   RIGHTS FOR MOBILIZED RESERVISTS EMPLOYED IN 
                   FOREIGN COUNTRIES.

       (a) Sense of Congress.--Congress is concerned about the 
     lack of reemployment rights afforded Reserve component 
     members who reside in foreign countries and either work for 
     United States companies that maintain offices or operations 
     in foreign countries or work for foreign employers. Being 
     outside the jurisdiction of the United

[[Page H9018]]

     States, these employers are not subject to the provisions of 
     chapter 43 of title 38, United States Code, known as the 
     Uniformed Services Employment and Reemployment Rights Act 
     (USERRA). The purpose of that Act is to provide statutory 
     employment protections that include reinstatement, seniority, 
     status, and rate of pay coverage for Reservists who are 
     ordered to active duty for a specified period of time, 
     including involuntary active duty in support of an 
     operational contingency. While most Reserve members are 
     afforded the protections of that Act (which covers 
     reemployment rights in their civilian jobs upon completion of 
     military service), approximately 2,000 members of the 
     Selected Reserve reside outside the United States and its 
     territories and, not being guaranteed the job protection 
     envisioned by the USERRA, are potentially subject to 
     reemployment problems after release from active duty. This 
     situation poses a continuing personnel management challenge 
     for the reserve components.
       (b) Recognition of Problem.--Congress, while recognizing 
     that foreign governments and companies located abroad, not 
     being within the jurisdiction of the United States, cannot be 
     required to comply with the provisions of the Uniformed 
     Services Employment and Reemployment Rights Act, also 
     recognizes that there is a need to provide assistance to 
     Reservists in the situation described in subsection (a), both 
     in the near term and the long term.
       (c) Report Requirement.--Not later than April 1, 1997, 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 that sets forth 
     recommended actions to help alleviate reemployment problems 
     for Reservists who are employed outside the United States and 
     its territories by United States companies that maintain 
     offices or operations in foreign countries or by foreign 
     employers. The report shall include recommendations on the 
     assistance and support that may be required by other 
     organizations of the Government, including the Defense 
     Attache Offices, the Department of Labor, and the Department 
     of State. The report shall be prepared in consultation with 
     the Secretary of State and the Secretary of Labor.

     SEC. 547. PAYMENT OF PREMIUMS UNDER MOBILIZATION INCOME 
                   INSURANCE PROGRAM.

       Section 12527(a) of title 10, United States Code, is 
     amended--
       (1) in paragraph (1), by inserting ``of the Selected 
     Reserve'' after ``a member''; and
       (2) by striking out paragraph (2) and inserting in lieu 
     thereof the following:
       ``(2) The Secretary of Defense, in consultation with the 
     Secretary of Transportation, shall prescribe regulations 
     which specify the procedures for payment of premiums by 
     members of the Individual Ready Reserve and other members who 
     do not receive pay on a monthly basis.''.
                 Subtitle F--Officer Education Programs

     SEC. 551. OVERSIGHT AND MANAGEMENT OF SENIOR RESERVE 
                   OFFICERS' TRAINING CORPS PROGRAM.

       (a) Enrollment Priority To Be Consistent With Purpose of 
     Program.--(1) Section 2103 of title 10, United States Code, 
     is amended by adding at the end the following new subsection:
       ``(e) An educational institution at which a unit of the 
     program has been established shall give priority for 
     enrollment in the program to students who are eligible for 
     advanced training under section 2104 of this title.''.
       (2) Section 2109 of such title is amended by adding at the 
     end the following new subsection:
       ``(c)(1) A person who is not qualified for, and (as 
     determined by the Secretary concerned) will not be able to 
     become qualified for, advanced training by reason of one or 
     more of the requirements prescribed in paragraphs (1) through 
     (3) of section 2104(b) of this title shall not be permitted 
     to participate in--
       ``(A) field training or a practice cruise under section 
     2106(b)(6) of this title; or
       ``(B) practical military training under subsection (a).
       ``(2) The Secretary of the military department concerned 
     may waive the limitation in paragraph (1) under procedures 
     prescribed by the Secretary. Such procedures shall ensure 
     uniform application of limitations and restrictions without 
     regard to the reason for disqualification for advanced 
     training.''.
       (b) Wear of the Military Uniform.--Section 772(h) of such 
     title is amended by inserting before the period at the end 
     the following: ``if the wear of such uniform is specifically 
     authorized under regulations prescribed by the Secretary of 
     the military department concerned''.

     SEC. 552. PROHIBITION ON REORGANIZATION OF ARMY ROTC CADET 
                   COMMAND OR TERMINATION OF SENIOR ROTC UNITS 
                   PENDING REPORT ON ROTC.

       (a) Prohibition.--(1) The Secretary of the Army may not 
     reorganize or restructure the Reserve Officers Training Corps 
     Cadet Command, and may not terminate any Senior Reserve 
     Officer Training Corps unit identified in the document 
     referred to in paragraph (2), until 180 days after the date 
     on which the Secretary submits to the Committee on Armed 
     Services of the Senate and the Committee on National Security 
     of the House of Representatives the report described in 
     subsection (b).
       (2) The document referred to in paragraph (1) is the 
     Department of Defense document dated May 20, 1996, entitled 
     ``Information for Members of Congress concerning Senior 
     Reserve Officer Training Corps (ROTC) Unit Closures''.
       (b) Report Contents.--The report referred to in subsection 
     (a) is a report by the Secretary of the Army in which the 
     Secretary--
       (1) describes the selection process used to identify the 
     Reserve Officer Training Corps units of the Army to be 
     terminated;
       (2) lists the criteria used by the Army to select Reserve 
     Officer Training Corps units for termination;
       (3) sets forth the specific ranking of each unit of the 
     Reserve Officer Training Corps of the Army to be terminated 
     as against all other such units;
       (4) sets forth the authorized and actual cadre staffing of 
     each such unit for each fiscal year of the 10-fiscal year 
     period ending with fiscal year 1996;
       (5) sets forth the production goals and performance 
     evaluations of each such unit for each fiscal year of the 10-
     fiscal year period ending with fiscal year 1996;
       (6) describes how cadets currently enrolled in the units 
     referred to in paragraph (5) will be accommodated after the 
     closure of such units;
       (7) describes the incentives to enhance the Reserve Officer 
     Training Corps program that are provided by each of the 
     colleges on the closure list;
       (8) includes the projected officer accession plan by source 
     of commission for the active-duty Army, the Army Reserve, and 
     the Army National Guard; and
       (9) describes whether the closure of any ROTC unit will 
     adversely affect the recruitment of minority officer 
     candidates.

     SEC. 553. PILOT PROGRAM TO TEST EXPANSION OF ROTC PROGRAM TO 
                   INCLUDE GRADUATE STUDENTS.

       (a) Test Program.--Section 2107(c) of title 10, United 
     States Code, is amended--
       (1) by inserting ``(1)'' after ``(c)''; and
       (2) by adding at the end the following:
       ``(2) The Secretary of Defense shall authorize the 
     Secretaries of the military departments to carry out a test 
     program to determine the desirability of enabling graduate 
     students to participate in the financial assistance program 
     under this section. As part of such test program, the 
     Secretary of a military department may provide financial 
     assistance, as described in paragraph (1), to a student 
     enrolled in an advanced education program beyond the 
     baccalaureate degree level if the student also is a cadet or 
     midshipman in an advanced training program. Not more than 15 
     percent of the total number of scholarships awarded under 
     this section in any year may be awarded under the test 
     program. No scholarship may be awarded under the test program 
     after September 30, 1999.''.
       (b) Authority To Enroll in Advanced Training Program.--
     Paragraph (3) of section 2101 of title 10, United States 
     Code, is amended by inserting ``students enrolled in an 
     advanced education program beyond the baccalaureate degree 
     level or to'' after `instruction offered in the Senior 
     Reserve Officers' Training Corps to''.
       (c) Report to Congress.--Not later than December 31, 1998, 
     the Secretary of Defense shall submit to Congress a report on 
     the experience to that date under the test program authorized 
     under the amendment made by subsection (a)(2). The report 
     shall include the Secretary's assessment of the effect of the 
     test program on the Senior ROTC program and the Secretary's 
     recommendation as to whether the authority under the test 
     program should be made permanent.

     SEC. 554. DEMONSTRATION PROJECT FOR INSTRUCTION AND SUPPORT 
                   OF ARMY ROTC UNITS BY MEMBERS OF THE ARMY 
                   RESERVE AND NATIONAL GUARD.

       (a) Demonstration Project Required.--The Secretary of the 
     Army shall carry out a demonstration project in order to 
     assess the feasibility and advisability of providing 
     instruction and similar support to units of the Senior 
     Reserve Officers Training Corps of the Army through members 
     of the Army Reserve (including members of the Individual 
     Ready Reserve) and members of the Army National Guard.
       (b) Project Requirements.--(1) The Secretary shall carry 
     out the demonstration project at at least one institution of 
     higher education.
       (2) In order to enhance the value of the project, the 
     Secretary may take actions to ensure that members of the Army 
     Reserve and the Army National Guard provide instruction and 
     support under the project in a variety of innovative ways.
       (c) Inapplicability of Limitation on Reserves in Support of 
     ROTC.--The assignment of a member of the Army Reserve or the 
     Army National Guard to provide instruction or support under 
     the demonstration project shall not be treated as an 
     assignment of the member to duty with a unit of a Reserve 
     Officer Training Corps program for purposes of section 12321 
     of title 10, United States Code.
       (d) Reports to Congress.--Not later than February 1 in each 
     of 1998 and 1999, the Secretary shall submit to Congress a 
     report assessing the activities under the demonstration 
     project during the preceding year. The report submitted in 
     1999 shall include the Secretary's recommendation as to the 
     advisability of continuing or expanding the authority for the 
     project.
       (e) Termination.--The authority of the Secretary to carry 
     out the demonstration project shall expire three years after 
     the date of the enactment of this Act.

[[Page H9019]]

     SEC. 555. EXTENSION OF MAXIMUM AGE FOR APPOINTMENT AS A CADET 
                   OR MIDSHIPMAN IN THE SENIOR RESERVE OFFICERS' 
                   TRAINING CORPS AND THE SERVICE ACADEMIES.

       (a) Senior Reserve Officers' Training Corps.--Sections 
     2107(a) and 2107a(a) of title 10, United States Code, are 
     amended--
       (1) by striking out ``25 years of age'' and inserting in 
     lieu thereof ``27 years of age''; and
       (2) by striking out ``29 years of age'' and inserting in 
     lieu thereof ``30 years of age''.
       (b) United States Military Academy.--Section 4346(a) of 
     such title is amended by striking out ``twenty-second 
     birthday'' and inserting in lieu thereof ``twenty-third 
     birthday''.
       (c) United States Naval Academy.--Section 6958(a)(1) of 
     such title is amended by striking out ``twenty-second 
     birthday'' and inserting in lieu thereof ``twenty-third 
     birthday''.
       (d) United States Air Force Academy.--Section 9346(a) of 
     such title is amended by striking out ``twenty-second 
     birthday'' and inserting in lieu thereof ``twenty-third 
     birthday''.

     SEC. 556. EXPANSION OF ELIGIBILITY FOR EDUCATION BENEFITS TO 
                   INCLUDE CERTAIN RESERVE OFFICERS' TRAINING 
                   CORPS (ROTC) PARTICIPANTS.

       (a) Active Duty Service.--Section 3011(c) of title 38, 
     United States Code, is amended--
       (1) by striking out ``or upon completion of a program of 
     educational assistance under section 2107 of title 10'' in 
     paragraph (2); and
       (2) by adding at the end the following:
       ``(3) An individual who after December 31, 1976, receives a 
     commission as an officer in the Armed Forces upon completion 
     of a program of educational assistance under section 2107 of 
     title 10 is not eligible for educational assistance under 
     this section if the individual enters on active duty--
       ``(A) before October 1, 1996; or
       ``(B) after September 30, 1996, and while participating in 
     such program received more than $2,000 for each year of such 
     participation.''.
       (b) Selected Reserve.--Section 3012(d) of title 38, United 
     States Code, is amended--
       (1) by striking out ``or upon completion of a program of 
     educational assistance under section 2107 of title 10'' in 
     paragraph (2); and
       (2) by adding at the end the following:
       ``(3) An individual who after December 31, 1976, receives a 
     commission as an officer in the Armed Forces upon completion 
     of a program of educational assistance under section 2107 of 
     title 10 is not eligible for educational assistance under 
     this section if the individual enters on active duty--
       ``(A) before October 1, 1996; or
       ``(B) after September 30, 1996, and while participating in 
     such program received more than $2,000 for each year of such 
     participation.''.

     SEC. 557. COMPTROLLER GENERAL REPORT ON COST AND POLICY 
                   IMPLICATIONS OF PERMITTING UP TO FIVE PERCENT 
                   OF SERVICE ACADEMY GRADUATES TO BE ASSIGNED 
                   DIRECTLY TO RESERVE DUTY UPON GRADUATION.

       (a) Report Required.--The Comptroller General of the United 
     States shall submit to the Committee on Armed Services of the 
     Senate and the Committee on National Security of the House of 
     Representatives a report providing an analysis of the cost 
     implications, and the policy implications, of permitting up 
     to 5 percent of each graduating class of each of the service 
     academies to be placed, upon graduation and commissioning, in 
     an active status in the appropriate reserve component 
     (without a minimum period of obligated active duty service), 
     with a corresponding increase in the number of ROTC graduates 
     each year who are permitted to serve on active duty upon 
     commissioning.
       (b) Information on Current Academy Graduates in Reserve 
     Components.--The Comptroller General shall include in the 
     report information (shown in the aggregate and separately for 
     each of the Armed Forces and for graduates of each service 
     academy) on--
       (1) the number of academy graduates who at the time of the 
     report are serving in an active status in a reserve 
     component; and
       (2) within the number under paragraph (1), the number for 
     each reserve component and, of those, the number within each 
     reserve component who are on active duty under section 
     12301(d) of title 10, United States Code, for the purpose of 
     organizing, administering, recruiting, instructing, or 
     training the reserve components.
       (c) Submission of Report.--The report shall be submitted 
     not later than six months after the date of the enactment of 
     this Act.
       (d) Service Academies.--For purposes of this section, the 
     term ``service academies'' means--
       (1) the United States Military Academy;
       (2) the United States Naval Academy; and
       (3) the United States Air Force Academy.
                   Subtitle G--Decorations and Awards

     SEC. 561. AUTHORITY FOR AWARD OF MEDAL OF HONOR TO CERTAIN 
                   AFRICAN AMERICAN SOLDIERS WHO SERVED DURING 
                   WORLD WAR II.

       (a) Inapplicability of Time Limitations.--Notwithstanding 
     the time limitations in section 3744(b) of title 10, United 
     States Code, or any other time limitation, the President may 
     award the Medal of Honor to the persons specified in 
     subsection (b), each of whom has been found by the Secretary 
     of the Army to have distinguished himself conspicuously by 
     gallantry and intrepidity at the risk of his life above and 
     beyond the call of duty while serving in the United States 
     Army during World War II.
       (b) Persons Eligible To Receive the Medal of Honor.--The 
     persons referred to in subsection (a) are the following:
       (1) Vernon J. Baker, who served as a first lieutenant in 
     the 370th Infantry Regiment, 92nd Infantry Division.
       (2) Edward A. Carter, who served as a staff sergeant in the 
     56th Armored Infantry Battalion, Twelfth Armored Division.
       (3) John R. Fox, who served as a first lieutenant in the 
     366th Infantry Regiment, 92nd Infantry Division.
       (4) Willy F. James, Jr., who served as a private first 
     class in 413th Infantry Regiment, 104th Infantry Division.
       (5) Ruben Rivers, who served as a staff sergeant in the 
     761st Tank Battalion.
       (6) Charles L. Thomas, who served as a first lieutenant in 
     the 614th Tank Destroyer Battalion.
       (7) George Watson, who served as a private in the 29th 
     Quartermaster Regiment.
       (c) Posthumous Award.--The Medal of Honor may be awarded 
     under this section posthumously, as provided in section 3752 
     of title 10, United States Code.
       (d) Prior Award.--The Medal of Honor may be awarded under 
     this section for service for which a Distinguished-Service 
     Cross, or other award, has been awarded.

     SEC. 562. 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 as described in subsection (b), the award of each 
     such decoration having been determined by the Secretary of 
     the Navy to be warranted in accordance with section 1130 of 
     title 10, United States Code.
       (b) Distinguished Flying Cross.--Subsection (a) applies to 
     awards of the Distinguished Flying Cross for service during 
     World War II as follows:
       (1) First award.--First award, for completion of at least 
     20 qualifying combat missions, to the following members and 
     former members of the Armed Forces:
       Vernard V. Aiken of Wilmington, Vermont.
       Ira V. Babcock of Dothan, Georgia.
       George S. Barlow of Grafton, Virginia.
       Earl A. Bratton of Bodega Bay, California.
       Travis C. Cork of Leesburg, Florida.
       Herman C. Edwards of Johns Island, South Carolina.
       Norman J. Ehr of Kiel, Wisconsin.
       James M. Fitzgerald of Anchorage, Alaska.
       Raymond C. Gordon of Sherborn, Massachusetts.
       Paul L. Hitchcock of Raleigh, North Carolina.
       Harold H. Hottle of Hillsboro, Ohio.
       Samuel M. Keith of Anderson, South Carolina.
       Stanley J. Ksiadz of Cheektowaga, New York.
       Otis Lancaster of Wyoming, Michigan.
       Robert W. Lorette of Wilton, New Hampshire.
       John B. McCabe of Biglerville, Pennsylvania.
       James P. Merriman of Midland, Texas.
       The late Michael L. Michalak, formerly of Akron, New York.
       The late Edward J. Naparkowsky, formerly of Hartford, 
     Connecticut.
       Pete G. Nicora of Warren, Ohio.
       Stanley J. Orlowski of Jackson, Michigan.
       Raymond A. Peischl of Allentown, Pennsylvania.
       A. Jerome Pfeiffer of Racine, Wisconsin.
       Duane L. Rhodes of Earp, California.
       Frank V. Roach of Bloomfield, New Jersey.
       Arnold V. Rosekrans of Horseheads, New York.
       Joseph E. Seaman, Jr. of Bordentown, New Jersey.
       Richard F. Shumaker of Hilliard, Ohio.
       Luther E. Thomas of Panama City, Florida.
       Merton S. Ward of South Hamilton, Massachusetts.
       Simon L. Webb of Magnolia, Mississippi.
       Jerry W. Webster of Leander, Texas.
       (2) Second award.--Second award, for completion of at least 
     40 qualifying combat missions, to the following members and 
     former members of the Armed Forces:
       Arthur C. Adair of Grants Pass, Oregon.
       Robert B. Carnes of West Yarmouth, Massachusetts.
       Daniel K. Connors of Hampton, New Hampshire.
       Glen E. Danielson of Whittier, California.
       Ralph J. Deceuster of Dover, Ohio.
       Albert P. Emsley of Bothell, Washington.
       Urbain J. Fournier of Houma, Louisiana.
       Prescott C. Jernegan of Hemet, California.
       Stephen K. Johnson of Englewood, Florida.
       Warren E. Johnson of Vista, California.
       Elbert J. Kimble of San Francisco, California.
       George W. Knauff of Monument, Colorado.
       John W. Lincoln of Rockland, Massachusetts.
       Alan D. Marker of Sonoma, California.
       Joseph J. Oliver of White Haven, Pennsylvania.
       Shefield Phelps of Seattle, Washington.
       John B. Tagliapiri of St. Helena, California.
       Dewilles A.H.W. Schwartz of Watertown, South Dakota.
       Ray B. Stiltner of Centralia, Washington.
       (3) Third award.--Third award, for completion of at least 
     60 qualifying combat missions, to the following members and 
     former members of the Armed Forces:

[[Page H9020]]

       Glenn Bowers of Dillsburg, Pennsylvania.
       Arthur C. Casey of Irving, California.
       Robert J. Larsen of Gulf Breeze, Florida.
       David Mendoza of McAllen, Texas.
       William A. Nickerson of Portland, Oregon.
       Maurice F. Smith of Sequim, Washington.
       (4) Fourth award.--Fourth award, for completion of at least 
     80 qualifying combat missions, to the following members and 
     former members of the Armed Forces:
       Robert Bair of Ontario, California.
       Arvid L. Kretz of Santa Rosa, California.
       George E. McClane of Cocoa Beach, Florida.
       Orville R. Swick of Issaquah, Washington.
       (5) Fifth award.--Fifth award, for completion of at least 
     100 qualifying combat missions, to the following members and 
     former members of the Armed Forces:
       William A. Baldwin of San Clemente, California.
       George Bobb of Blackwood, New Jersey.
       John R. Conrad of Hot Springs, Arkansas.
       Herbert R. Hetrick of Roaring Springs, Pennsylvania.
       William L. Wells of Cordele, Georgia.
       (6) Sixth award.--Sixth award, for completion of at least 
     120 qualifying combat missions, to Richard L. Murray of 
     Dallas, Texas.

     SEC. 563. REPLACEMENT OF CERTAIN AMERICAN THEATER CAMPAIGN 
                   RIBBONS.

       (a) Replacement Ribbons.--The Secretary of the Army, 
     pursuant to section 3751 of title 10, United States Code, may 
     replace any World War II decoration known as the American 
     Theater Campaign Ribbon that was awarded to a person listed 
     in the order described in subsection (b).
        (b) Ribbons Properly Awarded.--Any person listed in the 
     document titled ``General Order Number 1'', issued by the 
     Third Auxiliary Surgical Group, APO 647, United States Army, 
     dated February 1, 1943, shall be considered to have been 
     properly awarded the American Theater Campaign Ribbon for 
     service during World War II.
                       Subtitle H--Other Matters

     SEC. 571. HATE CRIMES IN THE MILITARY.

       (a) Human Relations Training.--(1) The Secretary of Defense 
     shall ensure that the Secretary of each military department 
     conducts ongoing programs for human relations training for 
     all members of the Armed Forces under the jurisdiction of the 
     Secretary. Matters to be covered by such training include 
     race relations, equal opportunity, opposition to gender 
     discrimination, and sensitivity to ``hate group'' activity. 
     Such training shall be provided during basic training (or 
     other initial military training) and on a regular basis 
     thereafter.
       (2) The Secretary of Defense shall also ensure that unit 
     commanders are aware of their responsibilities in ensuring 
     that impermissible activity based upon discriminatory motives 
     does not occur in units under their command.
       (b) Information To Be Provided to Prospective Recruits.--
     The Secretary of Defense shall ensure that each individual 
     preparing to enter an officer accession program or to execute 
     an original enlistment agreement is provided information 
     concerning the meaning of the oath of office or oath of 
     enlistment for service in the Armed Forces in terms of the 
     equal protection and civil liberties guarantees of the 
     Constitution, and each such individual shall be informed that 
     if supporting those guarantees is not possible personally for 
     that individual, then that individual should decline to enter 
     the Armed Forces.
       (c) Annual Survey.--(1) Section 451 of title 10, United 
     States Code, is amended to read as follows:

     ``Sec. 451. Race relations, gender discrimination, and hate 
       group activity: annual survey and report

       ``(a) Annual Survey.--The Secretary of Defense shall carry 
     out an annual survey to measure the state of racial, ethnic, 
     and gender issues and discrimination among members of the 
     armed forces serving on active duty and the extent (if any) 
     of activity among such members that may be seen as so-called 
     `hate group' activity. The survey shall solicit information 
     on the race relations and gender relations climate in the 
     armed forces, including--
       ``(1) indicators of positive and negative trends of 
     relations among all racial and ethnic groups and between the 
     sexes;
       ``(2) the effectiveness of Department of Defense policies 
     designed to improve race, ethnic, and gender relations; and
       ``(3) the effectiveness of current processes for complaints 
     on and investigations into racial, ethnic, and gender 
     discrimination.
       ``(b) Implementing Entity.--The Secretary shall carry out 
     each annual survey through the entity in the Department of 
     Defense known as the Armed Forces Survey on Race/Ethnic 
     Issues.
       ``(c) Reports to Congress.--Upon completion of each annual 
     survey under subsection (a), the Secretary shall submit to 
     Congress a report containing the results of the survey.''.
       (2) The item relating to such section in the table of 
     sections at the beginning of chapter 22 of such title is 
     amended to read as follows:
``451. Race relations, gender discrimination, and hate group activity: 
              annual survey and report.''.

     SEC. 572. DISABILITY COVERAGE FOR MEMBERS GRANTED EXCESS 
                   LEAVE FOR EDUCATIONAL OR EMERGENCY PURPOSES.

       (a) Eligibility for Retirement.--Section 1201 of title 10, 
     United States Code, is amended--
       (1) by striking out the matter preceding paragraph (1) and 
     inserting in lieu thereof the following:
       ``(a) Retirement.--Upon a determination by the Secretary 
     concerned that a member described in subsection (c) is unfit 
     to perform the duties of the member's office, grade, rank, or 
     rating because of physical disability incurred while entitled 
     to basic pay or while absent as described in subsection 
     (c)(3), the Secretary may retire the member, with retired pay 
     computed under section 1401 of this title, if the Secretary 
     also makes the determinations with respect to the member and 
     that disability specified in subsection (b).
       ``(b) Required Determinations of Disability.--
     Determinations referred to in subsection (a) are 
     determinations by the Secretary that--''; and
       (2) by adding at the end the following:
       ``(c) Eligible Members.--This section and sections 1202 and 
     1203 of this title apply to the following members:
       ``(1) A member of a regular component of the armed forces 
     entitled to basic pay.
       ``(2) Any other member of the armed forces entitled to 
     basic pay who has been called or ordered to active duty 
     (other than for training under section 10148(a) of this 
     title) for a period of more than 30 days.
       ``(3) Any other member of the armed forces who is on active 
     duty but is not entitled to basic pay by reason of section 
     502(b) of title 37 due to authorized absence (A) to 
     participate in an educational program, or (B) for an 
     emergency purpose, as determined by the Secretary 
     concerned.''.
       (b) Eligibility for Placement on Temporary Disability 
     Retirement List.--Section 1202 of title 10, United States 
     Code, is amended by striking out ``a member of a regular 
     component'' and all that follows through ``more than 30 
     days,'' and inserting in lieu thereof ``a member described in 
     section 1201(c) of this title''.
       (c) Eligibility for Separation.--Section 1203 of title 10, 
     United States Code, is amended by striking out the matter 
     preceding paragraph (1) and inserting in lieu thereof the 
     following:
       ``(a) Separation.--Upon a determination by the Secretary 
     concerned that a member described in section 1201(c) of this 
     title is unfit to perform the duties of the member's office, 
     grade, rank, or rating because of physical disability 
     incurred while entitled to basic pay or while absent as 
     described in section 1201(c)(3) of this title, the member may 
     be separated from the member's armed force, with severance 
     pay computed under section 1212 of this title, if the 
     Secretary also makes the determinations with respect to the 
     member and that disability specified in subsection (b).
       ``(b) Required Determinations of Disability.--
     Determinations referred to in subsection (a) are 
     determinations by the Secretary that--''.
       (d) 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 physical disabilities 
     incurred on or after such date.

     SEC. 573. CLARIFICATION OF AUTHORITY OF A RESERVE JUDGE 
                   ADVOCATE TO ACT AS A MILITARY NOTARY PUBLIC 
                   WHEN NOT IN A DUTY STATUS.

       Section 1044a(b) of title 10, United States Code, is 
     amended--
       (1) in paragraph (1), by striking out ``on active duty or 
     performing inactive-duty training'' and inserting in lieu 
     thereof ``, including reserve judge advocates when not in a 
     duty status'';
       (2) in paragraph (3), by striking out ``adjutants on active 
     duty or performing inactive-duty training'' and inserting in 
     lieu thereof ``adjutants, including reserve members when not 
     in a duty status''; and
       (3) in paragraph (4), by striking out ``persons on active 
     duty or performing inactive-duty training'' and inserting in 
     lieu thereof ``members of the armed forces, including reserve 
     members when not in a duty status,''.

     SEC. 574. PANEL ON JURISDICTION OF COURTS-MARTIAL FOR THE 
                   NATIONAL GUARD WHEN NOT IN FEDERAL SERVICE.

       (a) Establishment.--The Secretary of Defense shall 
     establish a panel to review the various authorities for 
     court-martial and nonjudicial punishment jurisdiction for the 
     National Guard not in Federal service and the use of those 
     authorities.
       (b) Membership.--The Secretary shall appoint the members of 
     the panel so as to ensure representation of the following:
       (1) The State Adjutants General of the National Guard.
       (2) The State Attorneys General.
       (3) The Joint Service Committee on Military Justice of the 
     Department of Defense.
       (c) Duties.--Matters reviewed by the panel shall include 
     the following:
       (1) The extent of the use of court-martial and nonjudicial 
     punishment authority for the National Guard not in Federal 
     service.
       (2) The extent to which the authority used is--
       (A) authority under title 32, United States Code; or
       (B) authority under State law.
       (d) Report.--(1) Not later than February 1, 1997, the panel 
     shall submit a report on the panel's findings and conclusions 
     to the Secretary of Defense.
       (2) The report shall include recommended legislation for 
     amending title 32, United States Code--

[[Page H9021]]

       (A) to increase the uniformity in State use of courts-
     martial and nonjudicial punishment for the National Guard 
     when not in Federal service; and
       (B) to achieve increased comparability between the court-
     martial and nonjudicial punishment procedures that are 
     applicable to the National Guard not in Federal service and 
     the court-martial and nonjudicial punishment procedures that 
     are applicable under the Uniform Code of Military Justice to 
     the National Guard in Federal service.
       (e) Submission of Report to Congress.--Not later than March 
     1, 1997, the Secretary of Defense shall submit to Congress 
     the report of the panel under subsection (d) together with 
     the views of the Secretary regarding the report and the 
     matters covered in the report.

     SEC. 575. AUTHORITY TO EXPAND LAW ENFORCEMENT PLACEMENT 
                   PROGRAM TO INCLUDE FIREFIGHTERS.

       Section 1152(g) of title 10, United States Code, is 
     amended--
       (1) by striking out ``(g) Conditional Expansion of 
     Placement to Include Firefighters.--(1) Subject to paragraph 
     (2), the'' and inserting in lieu thereof ``(g) Authority To 
     Expand Placement To Include Firefighters.--The''; and
       (2) in paragraph (2)--
       (A) by striking out the first sentence; and
       (B) in the second sentence, by inserting ``authorized by 
     this subsection'' after ``expansion''.

     SEC. 576. IMPROVEMENTS TO PROGRAM TO ASSIST SEPARATED 
                   MILITARY AND CIVILIAN PERSONNEL TO OBTAIN 
                   EMPLOYMENT AS TEACHERS OR TEACHERS' AIDES.

       (a) Program for Separated Members.--(1) Section 1151 of 
     title 10, United States Code, is amended--
       (A) in subsection (f)(2), by striking out ``five school 
     years'' in subparagraphs (A) and (B) and inserting in lieu 
     thereof ``two school years''; and
       (B) in subsection (h)(3)(A), by striking out ``five 
     consecutive school years'' and inserting in lieu thereof 
     ``two consecutive school years''.
       (2) Subsection (g)(2) of such section is amended--
       (A) by striking out the comma after ``section 1174a of this 
     title'' and inserting in lieu thereof ``or''; and
       (B) by striking out ``, or retires pursuant to the 
     authority provided in section 4403 of the National Defense 
     Authorization Act for fiscal year 1993 (Public Law 102-484; 
     10 U.S.C. 1293 note)''.
       (3) Subsection (h)(3)(B) of such section is amended--
       (A) in clause (i), by striking out ``$25,000'' and 
     inserting in lieu thereof ``$17,000'';
       (B) in clause (ii)--
       (i) by striking out ``40 percent'' and inserting in lieu 
     thereof ``25 percent''; and
       (ii) by striking out ``$10,000'' and inserting in lieu 
     thereof ``$8,000''; and
       (C) by striking out clauses (iii), (iv), and (v).
       (b) Separated Civilian Employees of the Department of 
     Defense.--Section 1598(d)(2) of such title is amended by 
     striking out ``five school years'' in subparagraphs (A) and 
     (B) and inserting in lieu thereof ``two school years''.
       (c) Displaced Department of Defense Contractor Employees.--
     Section 2410j(f)(2) of such title is amended by striking out 
     ``five school years'' in subparagraphs (A) and (B) and 
     inserting in lieu thereof ``two school years''.
       (d) Savings Provision.--The amendments made by this section 
     do not affect obligations under agreements entered into in 
     accordance with section 1151, 1598, or 2410j of title 10, 
     United States Code, before the date of the enactment of this 
     Act.

     SEC. 577. RETIREMENT AT GRADE TO WHICH SELECTED FOR PROMOTION 
                   WHEN A PHYSICAL DISABILITY IS FOUND AT ANY 
                   PHYSICAL EXAMINATION.

       Section 1372 of title 10, United States Code, is amended by 
     striking out ``his physical examination for promotion'' in 
     paragraphs (3) and (4) and inserting in lieu thereof ``a 
     physical examination''.

     SEC. 578. REVISIONS TO MISSING PERSONS AUTHORITIES.

       (a) Repeal of Applicability of Authorities to Department of 
     Defense Civilian Employees and Contractor Employees.--(1) 
     Section 1501 of title 10, United States Code, is amended--
       (A) in subsection (c)--
       (i) by striking out ``applies in the case of'' and all that 
     follows through ``(1) Any member'' and inserting in lieu 
     thereof ``applies in the case of any member''; and
       (ii) by striking out paragraph (2); and
       (B) by striking out subsection (f).
       (2) Section 1503(c) of such title is amended--
       (A) in paragraph (1), by striking out ``one individual 
     described in paragraph (2)'' and inserting in lieu thereof 
     ``one military officer'';
       (B) by striking out paragraph (2); and
       (C) by redesignating paragraphs (3) and (4) as paragraphs 
     (2) and (3), respectively.
       (3) Section 1504(d) of such title is amended--
       (A) by striking out the text of paragraph (1) and inserting 
     in lieu thereof the following new text: ``A board appointed 
     under this section shall be composed of at least three 
     members who are officers having the grade of major or 
     lieutenant commander or above.''; and
       (B) in paragraph (4), by striking out ``section 
     1503(c)(4)'' and inserting in lieu thereof ``section 
     1503(c)(3)''.
       (4) Paragraph (1) of section 1513 of such title is amended 
     to read as follows:
       ``(1) The term `missing person' means a member of the armed 
     forces on active duty who is in a missing status.''.
       (b) Report on Preliminary Assessment of Status.--(1) 
     Section 1502 of such title is amended--
       (A) in subsection (a)(2)--
       (i) by striking out ``48 hours'' and inserting in lieu 
     thereof ``10 days''; and
       (ii) by striking out ``theater component commander with 
     jurisdiction over the missing person'' and inserting in lieu 
     thereof ``Secretary concerned'';
       (B) by striking out subsection (b);
       (C) by redesignating subsection (c) as subsection (b); and
       (D) in subsection (b), as so redesignated, by striking out 
     the second sentence.
       (2) Section 1503(a) of such title is amended by striking 
     out ``section 1502(b)'' and inserting in lieu thereof 
     ``section 1502(a)''.
       (3) Section 1513 of such title is amended by striking out 
     paragraph (8).
       (c) Frequency of Subsequent Reviews.--Subsection (b) of 
     section 1505 of such title is amended to read as follows:
       ``(b) Frequency of Subsequent Reviews.--The Secretary 
     concerned shall conduct inquiries into the whereabouts and 
     status of a person under subsection (a) upon receipt of 
     information that may result in a change of status of the 
     person. The Secretary concerned shall appoint a board to 
     conduct such inquiries.''.
       (d) Repeal of Statutory Penalties for Wrongful Withholding 
     of Information.--Section 1506 of such title is amended--
       (1) by striking out subsection (e); and
       (2) by redesignating subsection (f) as subsection (e).
       (e) Information To Accompany Recommendation of Status of 
     Death.--Section 1507(b) of such title is amended by striking 
     out paragraphs (3) and (4).
       (f) Scope of Preenactment Review.--(1) Section 1509 of such 
     title is amended--
       (A) by striking out subsection (c); and
       (B) by redesignating subsection (d) as subsection (c).
       (2)(A) The heading of such section is amended by striking 
     out ``, special interest''.
       (B) The item relating to such section in the table of 
     sections at the beginning of chapter 76 of such title is 
     amended by striking out ``, special interest''.
      Subtitle I--Commissioned Corps of the Public Health Service

     SEC. 581. APPLICABILITY TO PUBLIC HEALTH SERVICE OF 
                   PROHIBITION ON CREDITING CADET OR MIDSHIPMEN 
                   SERVICE AT THE SERVICE ACADEMIES.

       (a) Prohibition on Counting Enlisted Service Performed 
     While at Service Academy.--Subsection (a) of section 971 of 
     title 10, United States Code, is amended by inserting before 
     the period at the end the following: ``or an officer in the 
     Commissioned Corps of the Public Health Service''.
       (b) Prohibition on Counting Service as a Cadet or 
     Midshipman.--Subsection (b) of such section is amended to 
     read as follows:
       ``(b) Prohibition on Counting Service as a Cadet or 
     Midshipman.--In computing length of service for any purpose, 
     service as a cadet or midshipman may not be credited to any 
     of the following officers:
       ``(1) An officer of the Navy or Marine Corps.
       ``(2) A commissioned officer of the Army or Air Force.
       ``(3) An officer of the Coast Guard.
       ``(4) An officer in the commissioned corps of the Public 
     Health Service.''.
       (c) Technical Amendments.--(1) Such section is further 
     amended by adding at the end the following new subsection:
       ``(c) Service as a Cadet or Midshipman Defined.--In this 
     section, the term `service as a cadet or midshipman' means--
       ``(1) service as a cadet at the United States Military 
     Academy, United States Air Force Academy, or United States 
     Coast Guard Academy; or
       ``(2) service as a midshipman at the United States Naval 
     Academy.''.
       (2) Subsection (a) of such section is further amended--
       (A) by inserting ``Prohibition on Counting Enlisted Service 
     Performed While at Service Academy or in Naval Reserve.--'' 
     after ``(a)''; and
       (B) by striking out ``while also serving'' and all that 
     follows through ``Naval Academy or'' and inserting in lieu 
     thereof ``while also performing service as a cadet or 
     midshipman or serving as a midshipman''.
       (3) The heading of such section, and the item relating to 
     such section in the table of sections at the beginning of 
     chapter 49 of such title, are amended by striking out the 
     seventh word.

     SEC. 582. EXCEPTION TO STRENGTH LIMITATIONS FOR PUBLIC HEALTH 
                   SERVICE OFFICERS ASSIGNED TO THE DEPARTMENT OF 
                   DEFENSE.

       Section 206 of the Public Health Service Act (42 U.S.C. 
     207) is amended by adding at the end the following new 
     subsection:
       ``(f) In computing the maximum number of commissioned 
     officers of the Public Health Service authorized by law or 
     administrative determination to serve on active duty, there 
     may be excluded from such computation officers who are 
     assigned to duty in the Department of Defense.''.

     SEC. 583. AUTHORITY TO PROVIDE LEGAL ASSISTANCE TO PUBLIC 
                   HEALTH SERVICE OFFICERS.

       (a) Legal Assistance Available.--Subsection (a) of section 
     1044 of title 10, United

[[Page H9022]]

     States Code, is amended by striking out paragraph (3) and 
     inserting in lieu thereof the following:
       ``(3) Officers of the commissioned corps of the Public 
     Health Service who are on active duty or entitled to retired 
     or equivalent pay.
       ``(4) Dependents of members and former members described in 
     paragraphs (1), (2), and (3).''.
       (b) Limitation on Assistance.--Subsection (c) of such 
     section is amended--
       (1) by striking out ``armed forces'' and inserting in lieu 
     thereof ``uniformed services described in subsection (a)''; 
     and
       (2) by inserting ``such'' after ``dependent of''.
       (c) Clarifying Amendments.--Subsection (a) of such section 
     is further amended by striking out ``under his jurisdiction'' 
     in paragraphs (1) and (2).
       (d) Stylistic Amendments.--Subsection (a) of such section 
     is further amended--
       (1) in the matter preceding paragraph (1), by striking out 
     ``to--'' and inserting in lieu thereof ``to the following 
     persons:'';
       (2) by capitalizing the first letter of the first word of 
     paragraphs (1) and (2);
       (3) by striking out the semicolon at the end of paragraph 
     (1) and inserting in lieu thereof a period; and
       (4) by striking out ``; and'' at the end of paragraph (2) 
     and inserting in lieu thereof a period.
          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Military pay raise for fiscal year 1997.
Sec. 602. Adjustment of rate of cadet and midshipman pay.
Sec. 603. Pay of senior noncommissioned officers while hospitalized.
Sec. 604. Availability of basic allowance for quarters for certain 
              members without dependents who serve on sea duty.
Sec. 605. Uniform applicability of discretion to deny an election not 
              to occupy Government quarters.
Sec. 606. Establishment of minimum monthly amount of variable housing 
              allowance for high housing cost areas.
Sec. 607. Family separation allowance for members separated by military 
              orders from spouses who are members.
Sec. 608. Waiver of time limitations for claim for pay and allowances.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of certain bonuses and special pay 
              authorities for reserve forces.
Sec. 612. One-year extension of certain bonuses and special pay 
              authorities for nurse officer candidates, registered 
              nurses, and nurse anesthetists.
Sec. 613. One-year extension of authorities relating to payment of 
              other bonuses and special pays.
Sec. 614. Special pay for certain Public Health Service officers.
Sec. 615. Special incentives to recruit and retain dental officers.
Sec. 616. Foreign language proficiency pay for Public Health Service 
              and National Oceanic and Atmospheric Administration 
              officers.

            Subtitle C--Travel and Transportation Allowances

Sec. 621. Allowance in connection with shipping motor vehicle at 
              Government expense.
Sec. 622. Dislocation allowance at a rate equal to two and one-half 
              months basic allowance for quarters.
Sec. 623. Allowance for travel performed in connection with leave 
              between consecutive overseas tours.
Sec. 624. Funding for transportation of household effects of Public 
              Health Service officers.

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

Sec. 631. Effective date for military retiree cost-of-living adjustment 
              for fiscal year 1998.
Sec. 632. Clarification of initial computation of retiree COLAs after 
              retirement.
Sec. 633. Suspension of payment of retired pay of members who are 
              absent from the United States to avoid prosecution.
Sec. 634. Nonsubstantive restatement of Survivor Benefit Plan statute.
Sec. 635. Increases in Survivor Benefit Plan contributions to be 
              effective concurrently with payment of retired pay cost-
              of-living increases.
Sec. 636. Amendments to the Uniformed Services Former Spouses' 
              Protection Act.
Sec. 637. Prevention of circumvention of court order by waiver of 
              retired pay to enhance civil service retirement annuity.
Sec. 638. Administration of benefits for so-called minimum income 
              widows.

                       Subtitle E--Other Matters

Sec. 651. Discretionary allotment of pay, including retired or retainer 
              pay.
Sec. 652. Reimbursement for adoption expenses incurred in adoptions 
              through private placements.
Sec. 653. Waiver of recoupment of amounts withheld for tax purposes 
              from certain separation pay.
Sec. 654. Technical correction clarifying limitation on furnishing 
              clothing or allowances for enlisted National Guard 
              technicians.
Sec. 655. Technical correction to prior authority for payment of back 
              pay to certain persons.
Sec. 656. Compensation for persons awarded prisoner of war medal who 
              did not previously receive compensation as a prisoner of 
              war.
Sec. 657. Payments to certain persons captured and interned by North 
              Vietnam.
                     Subtitle A--Pay and Allowances

     SEC. 601. MILITARY PAY RAISE FOR FISCAL YEAR 1997.

       (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 1997 shall not be 
     made.
       (b) Increase in Basic Pay and BAS.--Effective on January 1, 
     1997, the rates of basic pay and basic allowance for 
     subsistence of members of the uniformed services are 
     increased by 3.0 percent.
       (c) Increase in BAQ.--Effective on January 1, 1997, the 
     rates of basic allowance for quarters of members of the 
     uniformed services are increased by 4.6 percent.

     SEC. 602. ADJUSTMENT OF RATE OF CADET AND MIDSHIPMAN PAY.

       Section 203(c) of title 37, United States Code, is 
     amended--
       (1) by striking out paragraph (2); and
       (2) in paragraph (1), by striking out ``(1)''.

     SEC. 603. PAY OF SENIOR NONCOMMISSIONED OFFICERS WHILE 
                   HOSPITALIZED.

       (a) Pay During Hospitalization.--Section 210 of title 37, 
     United States Code, is amended--
       (1) by redesignating subsection (b) as subsection (c); and
       (2) by inserting after subsection (a) the following new 
     subsection (b):
       ``(b) A noncommissioned officer of an armed force who is 
     hospitalized and who, during or immediately before such 
     hospitalization, completed service as the senior enlisted 
     member of that armed force, shall continue to be entitled, 
     for not more than 180 days while so hospitalized, to the rate 
     of basic pay authorized for the senior enlisted member of 
     that armed force.''.
       (b) Clerical Amendments.--(1) The heading of such section 
     is amended to read as follows:

     ``Sec. 210. Pay of senior enlisted members during terminal 
       leave and while hospitalized''.

       (2) The item relating to such section in the table of 
     sections at the beginning of chapter 3 of title 37, United 
     States Code, is amended to read as follows:
``210. Pay of senior enlisted members during terminal leave and while 
              hospitalized.''.

     SEC. 604. AVAILABILITY OF BASIC ALLOWANCE FOR QUARTERS FOR 
                   CERTAIN MEMBERS WITHOUT DEPENDENTS WHO SERVE ON 
                   SEA DUTY.

       (a) Entitlement of Single Members Above Grade E-5.--Section 
     403(c)(2) of title 37, United States Code, is amended--
       (1) by striking out ``A member'' in the first sentence and 
     inserting in lieu thereof ``(A) Except as provided in 
     subparagraphs (B) and (C), a member''; and
       (2) by striking out the second sentence.
       (b) Entitlement of Certain Single Members in Grade E-5.--
     Such section is further amended by adding at the end the 
     following new subparagraph:
       ``(B) Under regulations prescribed by the Secretary 
     concerned, the Secretary may authorize the payment of a basic 
     allowance for quarters to a member of a uniformed service 
     without dependents who is serving in pay grade E-5 and is 
     assigned to sea duty. In prescribing regulations under this 
     subparagraph, the Secretary concerned shall consider the 
     availability of quarters for members serving in pay grade E-
     5.''.
       (c) Entitlement When Both Spouses in Grades Below Grade E-6 
     Are Assigned to Sea Duty.--Such section is further amended by 
     inserting after subparagraph (B), as added by subsection (b), 
     the following new subparagraph:
       ``(C) Notwithstanding section 421 of this title, two 
     members of the uniformed services in a pay grade below pay 
     grade E-6 who are married to each other, have no other 
     dependents, and are simultaneously assigned to sea duty are 
     jointly entitled to one basic allowance for quarters during 
     the period of such simultaneous sea duty. The amount of the 
     allowance shall be based on the without dependents rate for 
     the pay grade of the senior member of the couple. However, 
     this subparagraph shall not apply to a couple if one or both 
     of the members are entitled to a basic allowance for quarters 
     under subparagraph (B).''.
       (d) Conforming Amendment Regarding Variable Housing 
     Allowance.--Section 403a(b)(2)(C) of title 37, United States 
     Code, is amended by striking out ``E-6'' and inserting in 
     lieu thereof ``E-4''.
       (e) Effective Date.--The amendments made by this section 
     shall take effect on July 1, 1997.

[[Page H9023]]

     SEC. 605. UNIFORM APPLICABILITY OF DISCRETION TO DENY AN 
                   ELECTION NOT TO OCCUPY GOVERNMENT QUARTERS.

       Section 403(b)(3) of title 37, United States Code, is 
     amended by striking out ``A member'' and inserting in lieu 
     thereof ``Subject to the provisions of subsection (j), a 
     member''.

     SEC. 606. ESTABLISHMENT OF MINIMUM MONTHLY AMOUNT OF VARIABLE 
                   HOUSING ALLOWANCE FOR HIGH HOUSING COST AREAS.

       (a) Minimum Monthly Amount of Allowance.--Subsection (c) of 
     section 403a of title 37, United States Code, is amended by 
     striking out paragraph (1) and inserting in lieu thereof the 
     following new paragraph:
       ``(1) The monthly amount of a variable housing allowance 
     under this section for a member of a uniformed service with 
     respect to an area is equal to the greater of the following 
     amounts:
       ``(A) An amount equal to the difference between--
       ``(i) the median monthly cost of housing in that area for 
     members of the uniformed services serving in the same pay 
     grade and with the same dependency status as that member; and
       ``(ii) 80 percent of the median monthly cost of housing in 
     the United States for members of the uniformed services 
     serving in the same pay grade and with the same dependency 
     status as that member.
       ``(B) An amount equal to the difference between--
       ``(i) the adequate housing allowance floor determined by 
     the Secretary of Defense for all members of the uniformed 
     services in that area entitled to a variable housing 
     allowance under this section; and
       ``(ii) the monthly basic allowance for quarters for members 
     of the uniformed services serving in the same pay grade and 
     with the same dependency status as that member.''.
       (b) Adequate Housing Allowance Floor.--Such subsection is 
     further amended by adding at the end the following new 
     paragraph:
       ``(7)(A) For purposes of paragraph (1)(B)(i), the Secretary 
     of Defense shall establish an adequate housing allowance 
     floor for members of the uniformed services in an area as a 
     selected percentage, not to exceed 85 percent, of the cost of 
     adequate housing in that area based on an index of housing 
     costs selected by the Secretary of Defense from among the 
     following:
       ``(i) The fair market rentals established annually by the 
     Secretary of Housing and Urban Development under section 
     8(c)(1) of the United States Housing Act of 1937 (42 U.S.C. 
     1437f(c)(1)).
       ``(ii) An index developed in the private sector that the 
     Secretary of Defense determines is comparable to the fair 
     market rentals referred to in clause (i) and is appropriate 
     for use to determine the adequate housing allowance floor.
       ``(B) The Secretary of Defense shall carry out this 
     paragraph in consultation with the Secretary of 
     Transportation, the Secretary of Commerce, and the Secretary 
     of Health and Human Services.''.
       (c) Effect on Total Amount Available for Allowance.--
     Subsection (d)(3) of such section is amended in the second 
     sentence by striking out ``the second sentence of subsection 
     (c)(3)'' and inserting in lieu thereof ``paragraph (1)(B) of 
     subsection (c) and the second sentence of paragraph (3) of 
     that subsection''.
       (d) Conforming Amendments.--Subsection (c) of such section 
     is further amended--
       (1) in paragraph (3), by striking out ``this subsection'' 
     in the first sentence and inserting lieu thereof ``paragraph 
     (1)(A) or the minimum amount of a variable housing allowance 
     under paragraph (1)(B)''; and
       (2) in paragraph (5), by inserting ``or minimum amount of a 
     variable housing allowance'' after ``costs of housing''.
       (e) Effective Date.--The amendments made by this section 
     shall take effect on January 1, 1997, except that the 
     Secretary of Defense may delay implementation of the 
     requirements imposed by the amendments to such later date as 
     the Secretary considers appropriate upon publication of 
     notice to that effect in the Federal Register.

     SEC. 607. FAMILY SEPARATION ALLOWANCE FOR MEMBERS SEPARATED 
                   BY MILITARY ORDERS FROM SPOUSES WHO ARE 
                   MEMBERS.

       (a) Additional Basis for Allowance.--Paragraph (1) of 
     section 427(b) of title 37, United States Code, is amended--
       (1) by striking out ``or'' at the end of subparagraph (B);
       (2) by striking out the period at the end of subparagraph 
     (C) and inserting in lieu thereof ``; or''; and
       (3) by adding at the end the following new subparagraph:
       ``(D) the member is married to a member of a uniformed 
     service, the member has no dependent other than the spouse, 
     the two members are separated by reason of the execution of 
     military orders, and the two members were residing together 
     immediately before being separated by reason of execution of 
     military orders.''.
       (b) Conforming Amendment.--Such section is further amended 
     by adding at the end the following new paragraph:
       ``(5) Section 421 of this title does not apply to bar an 
     entitlement to an allowance under paragraph (1)(D). However, 
     not more than one monthly allowance may be paid with respect 
     to a married couple under paragraph (1)(D) for any month.''.

     SEC. 608. WAIVER OF TIME LIMITATIONS FOR CLAIM FOR PAY AND 
                   ALLOWANCES.

       Section 3702 of title 31, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(e)(1) Upon the request of the Secretary concerned (as 
     defined in section 101 of title 37), the Comptroller General 
     may waive the time limitations set forth in subsection (b) or 
     (c) in the case of a claim for pay or allowances provided 
     under title 37 and, subject to paragraph (2), settle the 
     claim.
       ``(2) Payment of a claim settled under paragraph (1) shall 
     be subject to the availability of appropriations for payment 
     of that particular claim.
       ``(3) This subsection does not apply to a claim in excess 
     of $25,000.''.
           Subtitle B--Bonuses and Special and Incentive Pays

     SEC. 611. ONE-YEAR EXTENSION OF CERTAIN BONUSES AND SPECIAL 
                   PAY AUTHORITIES FOR RESERVE FORCES.

       (a) Special Pay for Critically Short Wartime Health 
     Specialists.--Section 302g(f) of title 37, United States 
     Code, is amended by striking out ``September 30, 1997'' and 
     inserting in lieu thereof ``September 30, 1998''.
       (b) Selected Reserve Reenlistment Bonus.--Section 308b(f) 
     of title 37, United States Code, is amended by striking out 
     ``September 30, 1997'' and inserting in lieu thereof 
     ``September 30, 1998''.
       (c) Selected Reserve Enlistment Bonus.--Section 308c(e) of 
     title 37, United States Code, is amended by striking out 
     ``September 30, 1997'' and inserting in lieu thereof 
     ``September 30, 1998''.
       (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, 
     1997'' and inserting in lieu thereof ``September 30, 1998''.
       (e) Selected Reserve Affiliation Bonus.--Section 308e(e) of 
     title 37, United States Code, is amended by striking out 
     ``September 30, 1997'' and inserting in lieu thereof 
     ``September 30, 1998''.
       (f) Ready Reserve Enlistment and Reenlistment Bonus.--
     Section 308h(g) of title 37, United States Code, is amended 
     by striking out ``September 30, 1997'' and inserting in lieu 
     thereof ``September 30, 1998''.
       (g) Prior Service Enlistment Bonus.--Section 308i(i) of 
     title 37, United States Code, is amended by striking out 
     ``September 30, 1997'' and inserting in lieu thereof 
     ``September 30, 1998''.

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

       (a) Nurse Officer Candidate Accession Program.--Section 
     2130a(a)(1) of title 10, United States Code, is amended by 
     striking out ``September 30, 1997'' and inserting in lieu 
     thereof ``September 30, 1998''.
       (b) Accession Bonus for Registered Nurses.--Section 
     302d(a)(1) of title 37, United States Code, is amended by 
     striking out ``September 30, 1997'' and inserting in lieu 
     thereof ``September 30, 1998''.
       (c) Incentive Special Pay for Nurse Anesthetists.--Section 
     302e(a)(1) of title 37, United States Code, is amended by 
     striking out ``September 30, 1997'' and inserting in lieu 
     thereof ``September 30, 1998''.

     SEC. 613. ONE-YEAR EXTENSION OF AUTHORITIES RELATING TO 
                   PAYMENT OF OTHER BONUSES AND SPECIAL PAYS.

       (a) Aviation Officer Retention Bonus.--Section 301b(a) of 
     title 37, United States Code, is amended by striking out 
     ``September 30, 1997'' and inserting in lieu thereof 
     ``September 30, 1998,''.
       (b) Reenlistment Bonus for Active Members.--Section 308(g) 
     of title 37, United States Code, is amended by striking out 
     ``September 30, 1997'' and inserting in lieu thereof 
     ``September 30, 1998''.
       (c) 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, 1997'' and inserting 
     in lieu thereof ``September 30, 1998''.
       (d) Special Pay for Nuclear Qualified Officers Extending 
     Period of Active Service.--Section 312(e) of title 37, United 
     States Code, is amended by striking out ``September 30, 
     1997'' and inserting in lieu thereof ``September 30, 1998''.
       (e) Nuclear Career Accession Bonus.--Section 312b(c) of 
     title 37, United States Code, is amended by striking out 
     ``September 30, 1997'' and inserting in lieu thereof 
     ``September 30, 1998''.
       (f) Nuclear Career Annual Incentive Bonus.--Section 312c(d) 
     of title 37, United States Code, is amended by striking out 
     ``October 1, 1997'' and inserting in lieu thereof ``October 
     1, 1998''.
       (g) 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, 1997'' and inserting in lieu 
     thereof ``October 1, 1998''.

     SEC. 614. SPECIAL PAY FOR CERTAIN PUBLIC HEALTH SERVICE 
                   OFFICERS.

       (a) Optometrists.--Section 302a(b) of title 37, United 
     States Code, is amended--
       (1) in paragraph (2)--
       (A) by striking out ``an armed force'' in the matter 
     preceding subparagraph (A) and inserting in lieu thereof ``a 
     uniformed service''; and
       (B) by striking out ``of the military department'' in 
     subparagraph (C); and
       (2) in paragraph (4), by striking out ``of the military 
     department''.

[[Page H9024]]

       (b) Nonphysician Health Care Providers.--Section 302c(d) of 
     title 37, United States Code, is amended--
       (1) in the matter preceding paragraph (1), by striking out 
     ``Secretary of Defense'' and inserting in lieu thereof 
     ``Secretary concerned''; and
       (2) in paragraph (1)--
       (A) by striking out ``or'' the third place it appears; and
       (B) by inserting before the period at the end the 
     following: ``, or an officer in the Regular or Reserve Corps 
     of the Public Health Service''.

     SEC. 615. SPECIAL INCENTIVES TO RECRUIT AND RETAIN DENTAL 
                   OFFICERS.

       (a) Variable, Additional, and Board Certified Special Pays 
     for Active Duty Dental Officers.--Section 302b(a) of title 
     37, United States Code is amended--
       (1) in paragraph (2)--
       (A) in subparagraph (A), by striking out ``$1,200'' and 
     inserting in lieu thereof ``$3,000'';
       (B) in subparagraph (B), by striking out ``$2,000'' and 
     inserting in lieu thereof ``$7,000''; and
       (C) in subparagraph (C), by striking out ``$4,000'' and 
     inserting in lieu thereof ``$7,000'';
       (2) in paragraph (4), by striking out subparagraphs (A), 
     (B), and (C) and inserting in lieu thereof the following:
       ``(A) $4,000 per year, if the officer has less than three 
     years of creditable service.
       ``(B) $6,000 per year, if the officer has at least three 
     but less than 14 years of creditable service.
       ``(C) $8,000 per year, if the officer has at least 14 but 
     less than 18 years of creditable service.
       ``(D) $10,000 per year, if the officer has at least 18 or 
     more years of creditable service.''; and
       (3) in paragraph (5), by striking out subparagraphs (A), 
     (B), and (C) and inserting in lieu thereof the following:
       ``(A) $2,500 per year, if the officer has less than 10 
     years of creditable service.
       ``(B) $3,500 per year, if the officer has at least 10 but 
     less than 12 years of creditable service.
       ``(C) $4,000 per year, if the officer has at least 12 but 
     less than 14 years of creditable service.
       ``(D) $5,000 per year, if the officer has at least 14 but 
     less than 18 years of creditable service.
       ``(E) $6,000 per year, if the officer has 18 or more years 
     of creditable service.''.
       (b) Reserve Dental Officers Special Pay.--Section 302b of 
     title 37, United States Code, is amended by adding at the end 
     the following new subsection:
       ``(h) Reserve Dental Officers Special Pay.--(1) A reserve 
     dental officer described in paragraph (2) is entitled to 
     special pay at the rate of $350 a month for each month of 
     active duty, including active duty in the form of annual 
     training, active duty for training, and active duty for 
     special work.
       ``(2) A reserve dental officer referred to in paragraph (1) 
     is a reserve officer who--
       ``(A) is an officer of the Dental Corps of the Army or the 
     Navy or an officer of the Air Force designated as a dental 
     officer; and
       ``(B) is on active duty under a call or order to active 
     duty for a period of less than one year.''.
       (c) Accession Bonus for Dental School Graduates Who Enter 
     the Armed Forces.--(1) Chapter 5 of title 37, United States 
     Code, is amended by inserting after section 302g the 
     following new section:

     ``Sec. 302h. Special pay: accession bonus for dental officers

       ``(a) Accession Bonus Authorized.--(1) A person who is a 
     graduate of an accredited dental school and who, during the 
     period beginning on the date of the enactment of this 
     section, and ending on September 30, 2002, executes a written 
     agreement described in subsection (c) to accept a commission 
     as an officer of the armed forces and remain on active duty 
     for a period of not less than four years may, upon the 
     acceptance of the agreement by the Secretary concerned, be 
     paid an accession bonus in an amount determined by the 
     Secretary concerned.
       ``(2) The amount of an accession bonus under paragraph (1) 
     may not exceed $30,000.
       ``(b) Limitation on Eligibility for Bonus.--A person may 
     not be paid a bonus under subsection (a) if--
       ``(1) the person, in exchange for an agreement to accept an 
     appointment as an officer, received financial assistance from 
     the Department of Defense to pursue a course of study in 
     dentistry; or
       ``(2) the Secretary concerned determines that the person is 
     not qualified to become and remain certified and licensed as 
     a dentist.
       ``(c) Agreement.--The agreement referred to in subsection 
     (a) shall provide that, consistent with the needs of the 
     armed service concerned, the person executing the agreement 
     will be assigned to duty, for the period of obligated service 
     covered by the agreement, as an officer of the Dental Corps 
     of the Army or the Navy or an officer of the Air Force 
     designated as a dental officer.
       ``(d) Repayment.--(1) An officer who receives a payment 
     under subsection (a) and who fails to become and remain 
     certified or licensed as a dentist during the period for 
     which the payment is made shall refund to the United States 
     an amount equal to the full amount of such payment.
       ``(2) An officer who voluntarily terminates service on 
     active duty before the end of the period agreed to be served 
     under subsection (a) shall refund to the United States an 
     amount that bears the same ratio to the amount paid to the 
     officer as the unserved part of such period bears to the 
     total period agreed to be served.
       ``(3) An obligation to reimburse the United States imposed 
     under paragraph (1) or (2) is for all purposes a debt owed to 
     the United States.
       ``(4) A discharge in bankruptcy under title 11 that is 
     entered less than five years after the termination of an 
     agreement under this section does not discharge the person 
     signing such agreement from a debt arising under such 
     agreement or this subsection. This paragraph applies to any 
     case commenced under title 11 after the date of the enactment 
     of this section.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     302g the following new item:
``302h. Special pay: accession bonus for dental officers.''.
       (3) Section 303a of title 37, United States Code, is 
     amended by striking out ``302g'' each place it appears and 
     inserting in lieu thereof ``302h''.
       (d) Report on Additional Activities to Increase Recruitment 
     of Dentists.--Not later than April 1, 1997, the Secretary of 
     Defense shall submit to Congress a report describing the 
     feasibility of increasing the number of persons enrolled in 
     the Armed Forces Health Professions Scholarship and Financial 
     Assistance program who are pursuing a course of study in 
     dentistry in anticipation of service as an officer of the 
     Dental Corps of the Army or the Navy or an officer of the Air 
     Force designated as a dental officer.
       (e) Stylistic Amendments.--Section 302b of title 37, United 
     States Code, is amended--
       (1) in subsection (a), by inserting ``Variable, Additional, 
     and Board Certification Special Pay.--'' after ``(a)'';
       (2) in subsection (b), by inserting ``Active-Duty 
     Agreement.--'' after ``(b)'';
       (3) in subsection (c), by inserting ``Regulations.--'' 
     after ``(c)'';
       (4) in subsection (d), by inserting ``Frequency of 
     Payments.--'' after ``(d)'';
       (5) in subsection (e), by inserting ``Refund for Period of 
     Unserved Obligated Service.--'' after ``(e)'';
       (6) in subsection (f), by inserting ``Effect of Discharge 
     in Bankruptcy.--'' after ``(f)''; and
       (7) in subsection (g), by inserting ``Determination of 
     Creditable Service.--'' after ``(g)''.

     SEC. 616. FOREIGN LANGUAGE PROFICIENCY PAY FOR PUBLIC HEALTH 
                   SERVICE AND NATIONAL OCEANIC AND ATMOSPHERIC 
                   ADMINISTRATION OFFICERS.

       (a) Eligibility.--Subsection (a) of section 316 of title 
     37, United States Code, is amended--
       (1) in the matter preceding paragraph (1), by striking out 
     ``armed forces'' and inserting in lieu thereof ``uniformed 
     services'';
       (2) in paragraph (2)--
       (A) by striking out ``Secretary of Defense'' and inserting 
     in lieu thereof ``Secretary concerned''; and
       (B) by inserting ``or public health'' after ``national 
     defense''; and
       (3) in paragraph (3)--
       (A) in subparagraph (A), by striking out ``military'' and 
     inserting in lieu thereof ``uniformed services'';
       (B) in subparagraph (C), by striking out ``military''; and
       (C) in subparagraph (D)--
       (i) by striking out ``Department of Defense'' and inserting 
     in lieu thereof ``uniformed service''; and
       (ii) by striking out ``Secretary of Defense'' and inserting 
     in lieu thereof ``Secretary concerned''.
       (b) Administration.--Subsection (d) of such section is 
     amended--
       (1) by striking out ``his jurisdiction and'' and inserting 
     in lieu thereof ``the jurisdiction of the Secretary,''; and
       (2) by inserting before the period at the end the 
     following: ``, by the Secretary of Health and Human Services 
     for the Commissioned Corps of the Public Health Service, and 
     by the Secretary of Commerce for the National Oceanic and 
     Atmospheric Administration''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 1996, and apply with respect 
     to months beginning on or after such date.
            Subtitle C--Travel and Transportation Allowances

     SEC. 621. ALLOWANCE IN CONNECTION WITH SHIPPING MOTOR VEHICLE 
                   AT GOVERNMENT EXPENSE.

       (a) Allowance Authorized.--Section 406(b)(1)(B) of title 
     37, United States Code, is amended by adding at the end the 
     following: ``If clause (i)(I) applies to the transportation 
     by the member of a motor vehicle from the old duty station, 
     the monetary allowance under this subparagraph shall also 
     cover return travel to the old duty station by the member or 
     other person transporting the vehicle. In the case of 
     transportation described in clause (ii), the monetary 
     allowance shall also cover travel from the new duty station 
     to the port of debarkation to pick up the vehicle.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on January 1, 1997.

     SEC. 622. DISLOCATION ALLOWANCE AT A RATE EQUAL TO TWO AND 
                   ONE-HALF MONTHS BASIC ALLOWANCE FOR QUARTERS.

       (a) Allowance Authorized.--Section 407(a) of title 37, 
     United States Code, is

[[Page H9025]]

     amended in the matter preceding paragraph (1) by striking out 
     ``two months'' and inserting in lieu thereof ``two and one-
     half months''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on January 1, 1997.

     SEC. 623. ALLOWANCE FOR TRAVEL PERFORMED IN CONNECTION WITH 
                   LEAVE BETWEEN CONSECUTIVE OVERSEAS TOURS.

       (a) Authority for Additional Deferral of Travel.--Section 
     411b(a)(2) of title 37, United States Code, is amended by 
     adding at the end the following: ``If the member is unable to 
     undertake the travel before the end of such one-year period 
     as a result of duty in connection with a contingency 
     operation, the member may defer the travel for one additional 
     year beginning on the date the duty of the member in 
     connection with the contingency operation ends.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect as of November 1, 1995.

     SEC. 624. FUNDING FOR TRANSPORTATION OF HOUSEHOLD EFFECTS OF 
                   PUBLIC HEALTH SERVICE OFFICERS.

       Section 406(j) of title 37, United States Code, is 
     amended--
       (1) in the first sentence of paragraph (1)--
       (A) by striking out ``Appropriations available'' and all 
     that follows through ``to a member'' and inserting in lieu 
     thereof ``The Secretary concerned may pay a monetary 
     allowance to a member of the armed forces or a member of the 
     Commissioned Corps of the Public Health Service''; and
       (B) by striking out ``of the military department''; and
       (2) by adding at the end the following new paragraph:
       ``(3) Appropriations available to the Department of Defense 
     for providing transportation of household effects of members 
     of the armed forces under subsection (b) shall be available 
     to pay the monetary allowance authorized under paragraph (1) 
     to such members. Appropriations available to the Department 
     of Health and Human Services for providing transportation of 
     household effects of members of the Commissioned Corps of the 
     Public Health Service under subsection (b) shall be available 
     to pay the monetary allowance authorized under paragraph (1) 
     to such members.''.
    Subtitle D--Retired Pay, Survivor Benefits, and Related Matters

     SEC. 631. EFFECTIVE DATE FOR MILITARY RETIREE COST-OF-LIVING 
                   ADJUSTMENT FOR FISCAL YEAR 1998.

       (a) Repeal of Adjustment of Effective Date for Fiscal Year 
     1998.--Section 1401a(b)(2)(B) of title 10, United States 
     Code, is amended--
       (1) by striking out ``(B) Special rules'' and all that 
     follows through ``In the case of'' in clause (i) and 
     inserting in lieu thereof ``(B) Special rule for fiscal 
     year 1996.--In the case of''; and
       (2) by striking out clause (ii).
       (b) Repeal of Contingent Alternative Date for Fiscal Year 
     1998.--Section 631 of the National Defense Authorization Act 
     for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 364) is 
     amended by striking out subsection (b).

     SEC. 632. CLARIFICATION OF INITIAL COMPUTATION OF RETIREE 
                   COLAS AFTER RETIREMENT.

       (a) In General.--Section 1401a of title 10, United States 
     Code, is amended by striking out subsections (c) and (d) and 
     inserting in lieu thereof the following new subsections:
       ``(c) First COLA Adjustment for Members With Retired Pay 
     Computed Using Final Basic Pay.--
       ``(1) First adjustment with intervening increase in basic 
     pay.--Notwithstanding subsection (b), if a person described 
     in paragraph (3) becomes entitled to retired pay based on 
     rates of monthly basic pay that became effective after the 
     last day of the calendar quarter of the base index, the 
     retired pay of the member or former member shall be increased 
     on the effective date of the next adjustment of retired pay 
     under subsection (b) only by the percent (adjusted to the 
     nearest one-tenth of 1 percent) by which--
       ``(A) the price index for the base quarter of that year, 
     exceeds
       ``(B) the price index for the calendar quarter immediately 
     before the calendar quarter in which the rates of monthly 
     basic pay on which the retired pay is based became effective.
       ``(2) First adjustment with no intervening increase in 
     basic pay.--If a person described in paragraph (3) becomes 
     entitled to retired pay on or after the effective date of an 
     adjustment in retired pay under subsection (b) but before the 
     effective date of the next increase in the rates of monthly 
     basic pay, the retired pay of the member or former member 
     shall be increased, effective on the date the member becomes 
     entitled to that pay, by the percent (adjusted to the nearest 
     one-tenth of 1 percent) by which--
       ``(A) the base index, exceeds
       ``(B) the price index for the calendar quarter immediately 
     before the calendar quarter in which the rates of monthly 
     basic pay on which the retired pay is based became effective.
       ``(3) Members covered.--Paragraphs (1) and (2) apply to a 
     member or former member of an armed force who first became a 
     member of a uniformed service before August 1, 1986, and 
     whose retired pay base is determined under section 1406 of 
     this title.
       ``(d) First COLA Adjustment for Members With Retired Pay 
     Computed Using High-Three.--Notwithstanding subsection (b), 
     the retired pay of a member or former member of an armed 
     force who first became a member of a uniformed service before 
     August 1, 1986, and whose retired pay base is determined 
     under section 1407 of this title shall be increased on the 
     effective date of the first adjustment of retired pay under 
     subsection (b) after the member or former member becomes 
     entitled to retired pay by the percent (adjusted to the 
     nearest one-tenth of 1 percent) equal to the difference 
     between the percent by which--
       ``(1) the price index for the base quarter of that year, 
     exceeds
       ``(2) the price index for the calendar quarter immediately 
     before the calendar quarter during which the member became 
     entitled to retired pay.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply only to adjustments of retired and retainer pay 
     effective after the date of the enactment of this Act.

     SEC. 633. SUSPENSION OF PAYMENT OF RETIRED PAY OF MEMBERS WHO 
                   ARE ABSENT FROM THE UNITED STATES TO AVOID 
                   PROSECUTION.

       (a) Development of Procedures For Suspension.--The 
     Secretary of Defense shall develop uniform procedures under 
     which the Secretary of a military department may suspend the 
     payment of the retired pay of a member or former member of 
     the Armed Forces during periods in which the member willfully 
     remains outside the United States to avoid criminal 
     prosecution or civil liability. The procedures shall address 
     the types of criminal offenses and civil proceedings for 
     which the procedures may be used, including the offenses 
     specified in section 8312 of title 5, United States Code, and 
     the manner by which a member, upon the return of the member 
     to the United States, may obtain retired pay withheld during 
     the member's absence.
       (b) Report to Congress.--The Secretary of Defense shall 
     submit to Congress a report describing the procedures 
     developed under subsection (a). The report shall include 
     recommendations regarding changes to existing provisions of 
     law (including section 8313 of title 5, United States Code) 
     that the Secretary determines are necessary to fully 
     implement the procedures.
       (c) Retired Pay Defined.--For purposes of this section, the 
     term ``retired pay'' means retired pay, retirement pay, 
     retainer pay, or equivalent pay, payable under a statute to a 
     member or former member of a uniformed service.
       (d) Effective Date.--The uniform procedures required by 
     subsection (a) shall be developed not later than 30 days 
     after the date of the enactment of this Act.

     SEC. 634. NONSUBSTANTIVE RESTATEMENT OF SURVIVOR BENEFIT PLAN 
                   STATUTE.

       Subchapter II of chapter 73 of title 10, United States 
     Code, is amended to read as follows:

                 ``SUBCHAPTER II--SURVIVOR BENEFIT PLAN

``Sec.
``1447. Definitions.
``1448. Application of Plan.
``1449. Mental incompetency of member.
``1450. Payment of annuity: beneficiaries.
``1451. Amount of annuity.
``1452. Reduction in retired pay.
``1453. Recovery of amounts erroneously paid.
``1454. Correction of administrative errors.
``1455. Regulations.

     ``Sec. 1447. Definitions

       ``In this subchapter:
       ``(1) Plan.--The term `Plan' means the Survivor Benefit 
     Plan established by this subchapter.
       ``(2) Standard annuity.--The term `standard annuity' means 
     an annuity provided by virtue of eligibility under section 
     1448(a)(1)(A) of this title.
       ``(3) Reserve-component annuity.--The term `reserve-
     component annuity' means an annuity provided by virtue of 
     eligibility under section 1448(a)(1)(B) of this title.
       ``(4) Retired pay.--The term `retired pay' includes 
     retainer pay paid under section 6330 of this title.
       ``(5) Reserve-component retired pay.--The term `reserve-
     component retired pay' means retired pay under chapter 1223 
     of this title (or under chapter 67 of this title as in effect 
     before the effective date of the Reserve Officer Personnel 
     Management Act).
       ``(6) Base amount.--The term `base amount' means the 
     following:
       ``(A) Full amount under standard annuity.--In the case of a 
     person who dies after becoming entitled to retired pay, such 
     term means the amount of monthly retired pay (determined 
     without regard to any reduction under section 1409(b)(2) of 
     this title) to which the person--
       ``(i) was entitled when he became eligible for that pay; or
       ``(ii) later became entitled by being advanced on the 
     retired list, performing active duty, or being transferred 
     from the temporary disability retired list to the permanent 
     disability retired list.
       ``(B) Full amount under reserve-component annuity.--In the 
     case of a person who would have become eligible for reserve-
     component retired pay but for the fact that he died before 
     becoming 60 years of age, such term means the amount of 
     monthly retired pay for which the person would have been 
     eligible--
       ``(i) if he had been 60 years of age on the date of his 
     death, for purposes of an annuity

[[Page H9026]]

     to become effective on the day after his death in accordance 
     with a designation made under section 1448(e) of this title; 
     or
       ``(ii) upon becoming 60 years of age (if he had lived to 
     that age), for purposes of an annuity to become effective on 
     the 60th anniversary of his birth in accordance with a 
     designation made under section 1448(e) of this title.
       ``(C) Reduced amount.--Such term means any amount less than 
     the amount otherwise applicable under subparagraph (A) or (B) 
     with respect to an annuity provided under the Plan but which 
     is not less than $300 and which is designated by the person 
     (with the concurrence of the person's spouse, if required 
     under section 1448(a)(3) of this title) providing the annuity 
     on or before--
       ``(i) the first day for which he becomes eligible for 
     retired pay, in the case of a person providing a standard 
     annuity, or
       ``(ii) the end of the 90-day period beginning on the date 
     on which he receives the notification required by section 
     12731(d) of this title that he has completed the years of 
     service required for eligibility for reserve-component 
     retired pay, in the case of a person providing a reserve-
     component annuity.
       ``(7) Widow.--The term `widow' means the surviving wife of 
     a person who, if not married to the person at the time he 
     became eligible for retired pay--
       ``(A) was married to him for at least one year immediately 
     before his death; or
       ``(B) is the mother of issue by that marriage.
       ``(8) Widower.--The term `widower' means the surviving 
     husband of a person who, if not married to the person at the 
     time she became eligible for retired pay--
       ``(A) was married to her for at least one year immediately 
     before her death; or
       ``(B) is the father of issue by that marriage.
       ``(9) Surviving spouse.--The term `surviving spouse' means 
     a widow or widower.
       ``(10) Former spouse.--The term `former spouse' means the 
     surviving former husband or wife of a person who is eligible 
     to participate in the Plan.
       ``(11) Dependent child.--
       ``(A) In general.--The term `dependent child' means a 
     person who--
       ``(i) is unmarried;
       ``(ii) is (I) under 18 years of age, (II) at least 18, but 
     under 22, years of age and pursuing a full-time course of 
     study or training in a high school, trade school, technical 
     or vocational institute, junior college, college, university, 
     or comparable recognized educational institution, or (III) 
     incapable of self support because of a mental or physical 
     incapacity existing before the person's eighteenth birthday 
     or incurred on or after that birthday, but before the 
     person's twenty-second birthday, while pursuing such a full-
     time course of study or training; and
       ``(iii) is the child of a person to whom the Plan applies, 
     including (I) an adopted child, and (II) a stepchild, foster 
     child, or recognized natural child who lived with that person 
     in a regular parent-child relationship.
       ``(B) Special rules for college students.--For the purpose 
     of subparagraph (A), a child whose twenty-second birthday 
     occurs before July 1 or after August 31 of a calendar year, 
     and while regularly pursuing such a course of study or 
     training, is considered to have become 22 years of age on the 
     first day of July after that birthday. A child who is a 
     student is considered not to have ceased to be a student 
     during an interim between school years if the interim is not 
     more than 150 days and if the child shows to the satisfaction 
     of the Secretary of Defense that the child has a bona fide 
     intention of continuing to pursue a course of study or 
     training in the same or a different school during the school 
     semester (or other period into which the school year is 
     divided) immediately after the interim.
       ``(C) Foster children.--A foster child, to qualify under 
     this paragraph as the dependent child of a person to whom the 
     Plan applies, must, at the time of the death of that person, 
     also reside with, and receive over one-half of his support 
     from, that person, and not be cared for under a social agency 
     contract. The temporary absence of a foster child from the 
     residence of that person, while a student as described in 
     this paragraph, shall not be considered to affect the 
     residence of such a foster child.
       ``(12) Court.--The term `court' has the meaning given that 
     term by section 1408(a)(1) of this title.
       ``(13) Court order.--
       ``(A) In general.--The term `court order' means a court's 
     final decree of divorce, dissolution, or annulment or a court 
     ordered, ratified, or approved property settlement incident 
     to such a decree (including a final decree modifying the 
     terms of a previously issued decree of divorce, dissolution, 
     annulment, or legal separation, or of a court ordered, 
     ratified, or approved property settlement agreement incident 
     to such previously issued decree).
       ``(B) Final decree.--The term `final decree' means a decree 
     from which no appeal may be taken or from which no appeal has 
     been taken within the time allowed for the taking of such 
     appeals under the laws applicable to such appeals, or a 
     decree from which timely appeal has been taken and such 
     appeal has been finally decided under the laws applicable to 
     such appeals.
       ``(C) Regular on its face.--The term `regular on its face', 
     when used in connection with a court order, means a court 
     order that meets the conditions prescribed in section 
     1408(b)(2) of this title.

     ``Sec. 1448. Application of plan

       ``(a) General Rules for Participation in the Plan.--
       ``(1) Name of plan; eligible participants.--The program 
     established by this subchapter shall be known as the Survivor 
     Benefit Plan. The following persons are eligible to 
     participate in the Plan:
       ``(A) Persons entitled to retired pay.
       ``(B) Persons who would be eligible for reserve-component 
     retired pay but for the fact that they are under 60 years of 
     age.
       ``(2) Participants in the plan.--The Plan applies to the 
     following persons, who shall be participants in the Plan:
       ``(A) Standard annuity participants.--A person who is 
     eligible to participate in the Plan under paragraph (1)(A) 
     and who is married or has a dependent child when he becomes 
     entitled to retired pay, unless he elects (with his spouse's 
     concurrence, if required under paragraph (3)) not to 
     participate in the Plan before the first day for which he is 
     eligible for that pay.
       ``(B) Reserve-component annuity participants.--A person who 
     (i) is eligible to participate in the Plan under paragraph 
     (1)(B), (ii) is married or has a dependent child when he is 
     notified under section 12731(d) of this title that he has 
     completed the years of service required for eligibility for 
     reserve-component retired pay, and (iii) elects to 
     participate in the Plan (and makes a designation under 
     subsection (e)) before the end of the 90-day period beginning 
     on the date he receives such notification.
     A person described in clauses (i) and (ii) of subparagraph 
     (B) who does not elect to participate in the Plan before the 
     end of the 90-day period referred to in that clause remains 
     eligible, upon reaching 60 years of age and otherwise 
     becoming entitled to retired pay, to participate in the Plan 
     in accordance with eligibility under paragraph (1)(A).
       ``(3) Elections.--
       ``(A) Spousal consent for certain elections respecting 
     standard annuity.--A married person who is eligible to 
     provide a standard annuity may not without the concurrence of 
     the person's spouse elect--
       ``(i) not to participate in the Plan;
       ``(ii) to provide an annuity for the person's spouse at 
     less than the maximum level; or
       ``(iii) to provide an annuity for a dependent child but not 
     for the person's spouse.
       ``(B) Spousal consent for certain elections respecting 
     reserve-component annuity.--A married person who elects to 
     provide a reserve-component annuity may not without the 
     concurrence of the person's spouse elect--
       ``(i) to provide an annuity for the person's spouse at less 
     than the maximum level; or
       ``(ii) to provide an annuity for a dependent child but not 
     for the person's spouse.
       ``(C) Exception when spouse unavailable.--A person may make 
     an election described in subparagraph (A) or (B) without the 
     concurrence of the person's spouse if the person establishes 
     to the satisfaction of the Secretary concerned--
       ``(i) that the spouse's whereabouts cannot be determined; 
     or
       ``(ii) that, due to exceptional circumstances, requiring 
     the person to seek the spouse's consent would otherwise be 
     inappropriate.
       ``(D) Construction with former spouse election 
     provisions.--This paragraph does not affect any right or 
     obligation to elect to provide an annuity for a former spouse 
     (or for a former spouse and dependent child) under subsection 
     (b)(2).
       ``(E) Notice to spouse of election to provide former spouse 
     annuity.--If a married person who is eligible to provide a 
     standard annuity elects to provide an annuity for a former 
     spouse (or for a former spouse and dependent child) under 
     subsection (b)(2), that person's spouse shall be notified of 
     that election.
       ``(4) Irrevocability of elections.--
       ``(A) Standard annuity.--An election under paragraph (2)(A) 
     not to participate in the Plan is irrevocable if not revoked 
     before the date on which the person first becomes entitled to 
     retired pay.
       ``(B) Reserve-component annuity.--An election under 
     paragraph (2)(B) to participate in the Plan is irrevocable if 
     not revoked before the end of the 90-day period referred to 
     in that paragraph.
       ``(5) Participation by person marrying after retirement, 
     etc.--
       ``(A) Election to participate in plan.--A person who is not 
     married and has no dependent child upon becoming eligible to 
     participate in the Plan but who later marries or acquires a 
     dependent child may elect to participate in the Plan.
       ``(B) Manner and time of election.--Such an election must 
     be written, signed by the person making the election, and 
     received by the Secretary concerned within one year after the 
     date on which that person marries or acquires that dependent 
     child.
       ``(C) Limitation on revocation of election.--Such an 
     election may not be revoked except in accordance with 
     subsection (b)(3).
       ``(D) Effective date of election.--The election 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.
       ``(E) Designation if rcsbp election.--In the case of a 
     person providing a reserve-component annuity, such an 
     election shall include a designation under subsection (e).
       ``(6) Election out of plan by person with spouse coverage 
     who remarries.--
       ``(A) General rule.--A person--

[[Page H9027]]

       ``(i) who is a participant in the Plan and is providing 
     coverage under the Plan for a spouse (or a spouse and child);
       ``(ii) who does not have an eligible spouse beneficiary 
     under the Plan; and
       ``(iii) who remarries,
     may elect not to provide coverage under the Plan for the 
     person's spouse.
       ``(B) Effect of election on retired pay.--If such an 
     election is made, reductions in the retired pay of that 
     person under section 1452 of this title shall not be made.
       ``(C) Terms and conditions of election.--An election under 
     this paragraph--
       ``(i) is irrevocable;
       ``(ii) shall be made within one year after the person's 
     remarriage; and
       ``(iii) shall be made in such form and manner as may be 
     prescribed in regulations under section 1455 of this title.
       ``(D) Notice to spouse.--If a person makes an election 
     under this paragraph--
       ``(i) not to participate in the Plan;
       ``(ii) to provide an annuity for the person's spouse at 
     less than the maximum level; or
       ``(iii) to provide an annuity for a dependent child but not 
     for the person's spouse,
     the person's spouse shall be notified of that election.
       ``(E) Construction with former spouse election 
     provisions.--This paragraph does not affect any right or 
     obligation to elect to provide an annuity to a former spouse 
     under subsection (b).
       ``(b) Insurable Interest and Former Spouse Coverage.--
       ``(1) Coverage for person with insurable interest.--
       ``(A) General rule.--A person who is not married and does 
     not have a dependent child upon becoming eligible to 
     participate in the Plan may elect to provide an annuity under 
     the Plan to a natural person with an insurable interest in 
     that person. In the case of a person providing a reserve-
     component annuity, such an election shall include a 
     designation under subsection (e).
       ``(B) Termination of coverage.--An election under 
     subparagraph (A) for a beneficiary who is not the former 
     spouse of the person providing the annuity may be terminated. 
     Any such termination shall be made by a participant by the 
     submission to the Secretary concerned of a request to 
     discontinue participation in the Plan, and such participation 
     in the Plan shall be discontinued effective on the first day 
     of the first month following the month in which the request 
     is received by the Secretary concerned. Effective on such 
     date, the Secretary concerned shall discontinue the reduction 
     being made in such person's retired pay on account of 
     participation in the Plan or, in the case of a person who has 
     been required to make deposits in the Treasury on account of 
     participation in the Plan, such person may discontinue making 
     such deposits effective on such date.
       ``(C) Form for discontinuation.--A request under 
     subparagraph (B) to discontinue participation in the Plan 
     shall be in such form and shall contain such information as 
     may be required under regulations prescribed by the Secretary 
     of Defense.
       ``(D) Withdrawal of request for discontinuation.--The 
     Secretary concerned shall furnish promptly to each person who 
     submits a request under subparagraph (B) to discontinue 
     participation in the Plan a written statement of the 
     advantages and disadvantages of participating in the Plan and 
     the possible disadvantages of discontinuing participation. A 
     person may withdraw the request to discontinue participation 
     if withdrawn within 30 days after having been submitted to 
     the Secretary concerned.
       ``(E) Consequences of discontinuation.--Once participation 
     is discontinued, benefits may not be paid in conjunction with 
     the earlier participation in the Plan and premiums paid may 
     not be refunded. Participation in the Plan may not later be 
     resumed except through a qualified election under paragraph 
     (5) of subsection (a).
       ``(2) Former spouse coverage upon becoming a participant in 
     the plan.--
       ``(A) General rule.--A person who has a former spouse upon 
     becoming eligible to participate in the Plan may elect to 
     provide an annuity to that former spouse.
       ``(B) Effect of former spouse election on spouse or 
     dependent child.--In the case of a person with a spouse or a 
     dependent child, such an election prevents payment of an 
     annuity to that spouse or child (other than a child who is a 
     beneficiary under an election under paragraph (4)), including 
     payment under subsection (d).
       ``(C) Designation if more than one former spouse.--If there 
     is more than one former spouse, the person shall designate 
     which former spouse is to be provided the annuity.
       ``(D) Designation if rcsbp election.--In the case of a 
     person providing a reserve-component annuity, such an 
     election shall include a designation under subsection (e).
       ``(3) Former spouse coverage by persons already 
     participating in plan.--
       ``(A) Election of coverage.--
       ``(i) Authority for election.--A person--

       ``(I) who is a participant in the Plan and is providing 
     coverage for a spouse or a spouse and child (even though 
     there is no beneficiary currently eligible for such 
     coverage), and
       ``(II) who has a former spouse who was not that person's 
     former spouse when that person became eligible to participate 
     in the Plan,

     may (subject to subparagraph (B)) elect to provide an annuity 
     to that former spouse.
       ``(ii) Termination of previous coverage.--Any such election 
     terminates any previous coverage under the Plan.
       ``(iii) Manner and time of election.--Any such election 
     must be written, signed by the person making the election, 
     and received by the Secretary concerned within one year after 
     the date of the decree of divorce, dissolution, or annulment.
       ``(B) Limitation on election.--A person may not make an 
     election under subparagraph (A) to provide an annuity to a 
     former spouse who that person married after becoming eligible 
     for retired pay unless--
       ``(i) the person was married to that former spouse for at 
     least one year, or
       ``(ii) that former spouse is the parent of issue by that 
     marriage.
       ``(C) Irrevocability, effective date, etc.--An election 
     under this paragraph may not be revoked except in accordance 
     with section 1450(f) of this title. Such an election is 
     effective as of the first day of the first calendar month 
     following the month in which it is received by the Secretary 
     concerned. This paragraph does not provide the authority to 
     change a designation previously made under subsection (e).
       ``(D) Notice to spouse.--If a person who is married makes 
     an election to provide an annuity to a former spouse under 
     this paragraph, that person's spouse shall be notified of the 
     election.
       ``(4) Former spouse and child coverage.--A person who 
     elects to provide an annuity for a former spouse under 
     paragraph (2) or (3) may, at the time of the election, elect 
     to provide coverage under that annuity for both the former 
     spouse and a dependent child, if the child resulted from the 
     person's marriage to that former spouse.
       ``(5) Disclosure of whether election of former spouse 
     coverage is required.--A person who elects to provide an 
     annuity to a former spouse under paragraph (2) or (3) shall, 
     at the time of making the election, provide the Secretary 
     concerned with a written statement (in a form to be 
     prescribed by that Secretary and signed by such person and 
     the former spouse) setting forth--
       ``(A) whether the election is being made pursuant to the 
     requirements of a court order; or
       ``(B) whether the election is being made pursuant to a 
     written agreement previously entered into voluntarily by such 
     person as a part of, or incident to, a proceeding of divorce, 
     dissolution, or annulment and (if so) whether such voluntary 
     written agreement has been incorporated in, or ratified or 
     approved by, a court order.
       ``(c) Persons on Temporary Disability Retired List.--The 
     application of the Plan to a person whose name is on the 
     temporary disability retired list terminates when his name is 
     removed from that list and he is no longer entitled to 
     disability retired pay.
       ``(d) Coverage for Survivors of Retirement-Eligible Members 
     Who Die on Active Duty.--
       ``(1) Surviving spouse annuity.--The Secretary concerned 
     shall pay an annuity under this subchapter to the surviving 
     spouse of a member who dies on active duty after--
       ``(A) becoming eligible to receive retired pay;
       ``(B) qualifying for retired pay except that he has not 
     applied for or been granted that pay; or
       ``(C) completing 20 years of active service but before he 
     is eligible to retire as a commissioned officer because he 
     has not completed 10 years of active commissioned service.
       ``(2) Dependent child annuity.--The Secretary concerned 
     shall pay an annuity under this subchapter to the dependent 
     child of a member described in paragraph (1) if there is no 
     surviving spouse or if the member's surviving spouse 
     subsequently dies.
       ``(3) Mandatory former spouse annuity.--If a member 
     described in paragraph (1) is required under a court order or 
     spousal agreement to provide an annuity to a former spouse 
     upon becoming eligible to be a participant in the Plan or has 
     made an election under subsection (b) to provide an annuity 
     to a former spouse, the Secretary--
       ``(A) may not pay an annuity under paragraph (1) or (2); 
     but
       ``(B) shall pay an annuity to that former spouse as if the 
     member had been a participant in the Plan and had made an 
     election under subsection (b) to provide an annuity to the 
     former spouse, or in accordance with that election, as the 
     case may be, if the Secretary receives a written request from 
     the former spouse concerned that the election be deemed to 
     have been made in the same manner as provided in section 
     1450(f)(3) of this title.
       ``(4) Priority.--An annuity that may be provided under this 
     subsection shall be provided in preference to an annuity that 
     may be provided under any other provision of this subchapter 
     on account of service of the same member.
       ``(5) Computation.--The amount of an annuity under this 
     subsection is computed under section 1451(c) of this title.
       ``(e) Designation for Commencement of Reserve-Component 
     Annuity.--In any case in which a person electing to 
     participate in the Plan is required to make a designation 
     under this subsection, the person making such election shall 
     designate whether, in the event he dies before becoming 60 
     years of age, the annuity provided shall become effective 
     on--
       ``(1) the day after the date of his death; or
       ``(2) the 60th anniversary of his birth.

[[Page H9028]]

       ``(f) Coverage of Survivors of Persons Dying When Eligible 
     To Elect Reserve-Component Annuity.--
       ``(1) Surviving spouse annuity.--The Secretary concerned 
     shall pay an annuity under this subchapter to the surviving 
     spouse of a person who is eligible to provide a reserve-
     component annuity and who dies--
       ``(A) before being notified under section 12731(d) of this 
     title that he has completed the years of service required for 
     eligibility for reserve-component retired pay; or
       ``(B) during the 90-day period beginning on the date he 
     receives notification under section 12731(d) of this title 
     that he has completed the years of service required for 
     eligibility for reserve-component retired pay if he had not 
     made an election under subsection (a)(2)(B) to participate in 
     the Plan.
       ``(2) Dependent child annuity.--The Secretary concerned 
     shall pay an annuity under this subchapter to the dependent 
     child of a person described in paragraph (1) if there is no 
     surviving spouse or if the person's surviving spouse 
     subsequently dies.
       ``(3) Mandatory former spouse annuity.--If a person 
     described in paragraph (1) is required under a court order or 
     spousal agreement to provide an annuity to a former spouse 
     upon becoming eligible to be a participant in the Plan or has 
     made an election under subsection (b) to provide an annuity 
     to a former spouse, the Secretary--
       ``(A) may not pay an annuity under paragraph (1) or (2); 
     but
       ``(B) shall pay an annuity to that former spouse as if the 
     person had been a participant in the Plan and had made an 
     election under subsection (b) to provide an annuity to the 
     former spouse, or in accordance with that election, as the 
     case may be, if the Secretary receives a written request from 
     the former spouse concerned that the election be deemed to 
     have been made in the same manner as provided in section 
     1450(f)(3) of this title.
       ``(4) Computation.--The amount of an annuity under this 
     subsection is computed under section 1451(c) of this title.
       ``(g) Election To Increase Coverage Upon Remarriage.--
       ``(1) Election.--A person--
       ``(A) who is a participant in the Plan and is providing 
     coverage under subsection (a) for a spouse or a spouse and 
     child, but at less than the maximum level; and
       ``(B) who remarries,
     may elect, within one year of such remarriage, to increase 
     the level of coverage provided under the Plan to a level not 
     in excess of the current retired pay of that person.
       ``(2) Payment required.--Such an election shall be 
     contingent on the person paying to the United States the 
     amount determined under paragraph (3) plus interest on such 
     amount at a rate determined under regulations prescribed by 
     the Secretary of Defense.
       ``(3) Amount to be paid.--The amount referred to in 
     paragraph (2) is the amount equal to the difference between--
       ``(A) the amount that would have been withheld from such 
     person's retired pay under section 1452 of this title if the 
     higher level of coverage had been in effect from the time the 
     person became a participant in the Plan; and
       ``(B) the amount of such person's retired pay actually 
     withheld.
       ``(4) Manner of making election.--An election under 
     paragraph (1) shall be made in such manner as the Secretary 
     shall prescribe and shall become effective upon receipt of 
     the payment required by paragraph (2).
       ``(5) Disposition of payments.--A payment received under 
     this subsection by the Secretary of Defense shall be 
     deposited into the Department of Defense Military Retirement 
     Fund. Any other payment received under this subsection shall 
     be deposited in the Treasury as miscellaneous receipts.

     ``Sec. 1449. Mental incompetency of member

       ``(a) Election by Secretary Concerned on Behalf of Mentally 
     Incompetent Member.--If a person to whom section 1448 of this 
     title applies is determined to be mentally incompetent by 
     medical officers of the armed force concerned or of the 
     Department of Veterans Affairs, or by a court of competent 
     jurisdiction, an election described in subsection (a)(2) or 
     (b) of section 1448 of this title may be made on behalf of 
     that person by the Secretary concerned.
       ``(b) Revocation of Election by Member.--
       ``(1) Authority upon subsequent determination of mental 
     competence.--If a person for whom the Secretary has made an 
     election under subsection (a) is later determined to be 
     mentally competent by an authority named in that subsection, 
     that person may, within 180 days after that determination, 
     revoke that election.
       ``(2) Deductions from retired pay not to be refunded.--Any 
     deduction made from retired pay by reason of such an election 
     may not be refunded.

     ``Sec. 1450. Payment of annuity: beneficiaries

       ``(a) In General.--Effective as of the first day after the 
     death of a person to whom section 1448 of this title applies 
     (or on such other day as that person may provide under 
     subsection (j)), a monthly annuity under section 1451 of this 
     title shall be paid to the person's beneficiaries under the 
     Plan, as follows:
       ``(1) Surviving spouse or former spouse.--The eligible 
     surviving spouse or the eligible former spouse.
       ``(2) Surviving children.--The surviving dependent children 
     in equal shares, if the eligible surviving spouse or the 
     eligible former spouse is dead, dies, or otherwise becomes 
     ineligible under this section.
       ``(3) Dependent children.--The dependent children in equal 
     shares if the person to whom section 1448 of this title 
     applies (with the concurrence of the person's spouse, if 
     required under section 1448(a)(3) of this title) elected to 
     provide an annuity for dependent children but not for the 
     spouse or former spouse.
       ``(4) Natural person designated under `insurable interest' 
     coverage.--The natural person designated under section 
     1448(b)(1) of this title, unless the election to provide an 
     annuity to the natural person has been changed as provided in 
     subsection (f).
       ``(b) Termination of Annuity for Death, Remarriage Before 
     Age 55, Etc.--
       ``(1) General rule.--An annuity payable to the beneficiary 
     terminates effective as of the first day of the month in 
     which eligibility is lost.
       ``(2) Termination of spouse annuity upon death or 
     remarriage before age 55.--An annuity for a surviving spouse 
     or former spouse shall be paid to the surviving spouse or 
     former spouse while the surviving spouse or former spouse is 
     living or, if the surviving spouse or former spouse remarries 
     before reaching age 55, until the surviving spouse or former 
     spouse remarries.
       ``(3) Effect of termination of subsequent marriage before 
     age 55.--If the surviving spouse or former spouse remarries 
     before reaching age 55 and that marriage is terminated by 
     death, annulment, or divorce, payment of the annuity shall be 
     resumed effective as of the first day of the month in which 
     the marriage is so terminated. However, if the surviving 
     spouse or former spouse is also entitled to an annuity under 
     the Plan based upon the marriage so terminated, the surviving 
     spouse or former spouse may not receive both annuities but 
     must elect which to receive.
       ``(c) Offset for Amount of Dependency and Indemnity 
     Compensation.--
       ``(1) Required offset.--If, upon the death of a person to 
     whom section 1448 of this title applies, the surviving spouse 
     or former spouse of that person is also entitled to 
     dependency and indemnity compensation under section 1311(a) 
     of title 38, the surviving spouse or former spouse may be 
     paid an annuity under this section, but only in the amount 
     that the annuity otherwise payable under this section would 
     exceed that compensation.
       ``(2) Effective date of offset.--A reduction in an annuity 
     under this section required by paragraph (1) shall be 
     effective on the date of the commencement of the period of 
     payment of such dependency and indemnity compensation under 
     title 38.
       ``(d) Limitation on Payment of Annuities When Coverage 
     Under Civil Service Retirement Elected.--If, upon the death 
     of a person to whom section 1448 of this title applies, that 
     person had in effect a waiver of that person's retired pay 
     for the purposes of subchapter III of chapter 83 of title 5, 
     an annuity under this section shall not be payable unless, in 
     accordance with section 8339(j) of title 5, that person 
     notified the Office of Personnel Management that he did not 
     desire any spouse surviving him to receive an annuity under 
     section 8341(b) of that title.
       ``(e) Refund of Amounts Deducted From Retired Pay When DIC 
     Offset Is Applicable.--
       ``(1) Full refund when dic greater than sbp annuity.--If an 
     annuity under this section is not payable because of 
     subsection (c), any amount deducted from the retired pay of 
     the deceased under section 1452 of this title shall be 
     refunded to the surviving spouse or former spouse.
       ``(2) Partial refund when sbp annuity reduced by dic.--If, 
     because of subsection (c), the annuity payable is less than 
     the amount established under section 1451 of this title, the 
     annuity payable shall be recalculated under that section. The 
     amount of the reduction in the retired pay required to 
     provide that recalculated annuity shall be computed under 
     section 1452 of this title, and the difference between the 
     amount deducted before the computation of that recalculated 
     annuity and the amount that would have been deducted on the 
     basis of that recalculated annuity shall be refunded to the 
     surviving spouse or former spouse.
       ``(f) Change in Election of Insurable Interest or Former 
     Spouse Beneficiary.--
       ``(1) Authorized changes.--
       ``(A) Election in favor of spouse or child.--A person who 
     elects to provide an annuity to a person designated by him 
     under section 1448(b) of this title may, subject to paragraph 
     (2), change that election and provide an annuity to his 
     spouse or dependent child.
       ``(B) Notice.--The Secretary concerned shall notify the 
     former spouse or other natural person previously designated 
     under section 1448(b) of this title of any change of election 
     under subparagraph (A).
       ``(C) Procedures, effective date, etc.--Any such change of 
     election is subject to the same rules with respect to 
     execution, revocation, and effectiveness as are set forth in 
     section 1448(a)(5) of this title (without regard to the 
     eligibility of the person making the change of election to 
     make such an election under that section).
       ``(2) Limitation on change in beneficiary when former 
     spouse coverage in effect.--A person who, incident to a 
     proceeding of divorce, dissolution, or annulment, is required 
     by a court order to elect under section 1448(b) of this title 
     to provide an annuity to a former spouse (or to both a former 
     spouse and child), or who enters into a written

[[Page H9029]]

     agreement (whether voluntary or required by a court order) to 
     make such an election, and who makes an election pursuant to 
     such order or agreement, may not change that election under 
     paragraph (1) unless, of the following requirements, 
     whichever are applicable in a particular case are satisfied:
       ``(A) In a case in which the election is required by a 
     court order, or in which an agreement to make the election 
     has been incorporated in or ratified or approved by a court 
     order, the person--
       ``(i) furnishes to the Secretary concerned a certified copy 
     of a court order which is regular on its face and which 
     modifies the provisions of all previous court orders relating 
     to such election, or the agreement to make such election, so 
     as to permit the person to change the election; and
       ``(ii) certifies to the Secretary concerned that the court 
     order is valid and in effect.
       ``(B) In a case of a written agreement that has not been 
     incorporated in or ratified or approved by a court order, the 
     person--
       ``(i) furnishes to the Secretary concerned a statement, in 
     such form as the Secretary concerned may prescribe, signed by 
     the former spouse and evidencing the former spouse's 
     agreement to a change in the election under paragraph (1); 
     and
       ``(ii) certifies to the Secretary concerned that the 
     statement is current and in effect.
       ``(3) Required former spouse election to be deemed to have 
     been made.--
       ``(A) Deemed election upon request by former spouse.--If a 
     person described in paragraph (2) or (3) of section 1448(b) 
     of this title is required (as described in subparagraph (B)) 
     to elect under section 1448(b) of this title to provide an 
     annuity to a former spouse and such person then fails or 
     refuses to make such an election, such person shall be deemed 
     to have made such an election if the Secretary concerned 
     receives the following:
       ``(i) Request from former spouse.--A written request, in 
     such manner as the Secretary shall prescribe, from the former 
     spouse concerned requesting that such an election be deemed 
     to have been made.
       ``(ii) Copy of court order or other official statement.--
     Either--

       ``(I) a copy of the court order, regular on its face, which 
     requires such election or incorporates, ratifies, or approves 
     the written agreement of such person; or
       ``(II) a statement from the clerk of the court (or other 
     appropriate official) that such agreement has been filed with 
     the court in accordance with applicable State law.

       ``(B) Persons required to make election.--A person shall be 
     considered for purposes of subparagraph (A) to be required to 
     elect under section 1448(b) of this title to provide an 
     annuity to a former spouse if--
       ``(i) the person enters, incident to a proceeding of 
     divorce, dissolution, or annulment, into a written agreement 
     to make such an election and the agreement (I) has been 
     incorporated in or ratified or approved by a court order, or 
     (II) has been filed with the court of appropriate 
     jurisdiction in accordance with applicable State law; or
       ``(ii) the person is required by a court order to make such 
     an election.
       ``(C) Time limit for request by former spouse.--An election 
     may not be deemed to have been made under subparagraph (A) in 
     the case of any person unless the Secretary concerned 
     receives a request from the former spouse of the person 
     within one year of the date of the court order or filing 
     involved.
       ``(D) Effective date of deemed election.--An election 
     deemed to have been made under subparagraph (A) shall become 
     effective on the first day of the first month which begins 
     after the date of the court order or filing involved.
       ``(4) Former spouse coverage may be required by court 
     order.--A court order may require a person to elect (or to 
     enter into an agreement to elect) under section 1448(b) of 
     this title to provide an annuity to a former spouse (or to 
     both a former spouse and child).
       ``(g) Limitation on Changing or Revoking Elections.--
       ``(1) In general.--An election under this section may not 
     be changed or revoked.
       ``(2) Exceptions.--Paragraph (1) does not apply to--
       ``(A) a revocation of an election under section 1449(b) of 
     this title; or
       ``(B) a change in an election under subsection (f).
       ``(h) Treatment of Annuities Under Other Laws.--Except as 
     provided in section 1451 of this title, an annuity under this 
     section is in addition to any other payment to which a person 
     is entitled under any other provision of law. Such annuity 
     shall be considered as income under laws administered by the 
     Secretary of Veterans Affairs.
       ``(i) Annuities Exempt From Certain Legal Process.--Except 
     as provided in subsection (l)(3)(B), an annuity under this 
     section is not assignable or subject to execution, levy, 
     attachment, garnishment, or other legal process.
       ``(j) Effective Date of Reserve-Component Annuities.--
       ``(1) Persons making section 1448(e) designation.--An 
     annuity elected by a person providing a reserve-component 
     annuity shall be effective in accordance with the designation 
     made by such person under section 1448(e) of this title.
       ``(2) Persons dying before making section 1448(e) 
     designation.--An annuity payable under section 1448(f) of 
     this title shall be effective on the day after the date of 
     the death of the person upon whose service the right to the 
     annuity is based.
       ``(k) Adjustment of Spouse or Former Spouse Annuity Upon 
     Loss of Dependency and Indemnity Compensation.--
       ``(1) Readjustment if beneficiary 55 years of age or 
     more.--If a surviving spouse or former spouse whose annuity 
     has been adjusted under subsection (c) subsequently loses 
     entitlement to dependency and indemnity compensation under 
     section 1311(a) of title 38 because of the remarriage of the 
     surviving spouse, or former spouse, and if at the time of 
     such remarriage the surviving spouse or former spouse is 55 
     years of age or more, the amount of the annuity of the 
     surviving spouse or former spouse shall be readjusted, 
     effective on the effective date of such loss of dependency 
     and indemnity compensation, to the amount of the annuity 
     which would be in effect with respect to the surviving spouse 
     or former spouse if the adjustment under subsection (c) had 
     never been made.
       ``(2) Repayment of amounts previously refunded.--
       ``(A) General rule.--A surviving spouse or former spouse 
     whose annuity is readjusted under paragraph (1) shall repay 
     any amount refunded under subsection (e) by reason of the 
     adjustment under subsection (c).
       ``(B) Interest required if repayment not a lump sum.--If 
     the repayment is not made in a lump sum, the surviving spouse 
     or former spouse shall pay interest on the amount to be 
     repaid. Such interest shall commence on the date on which the 
     first such payment is due and shall be applied over the 
     period during which any part of the repayment remains to be 
     paid.
       ``(C) Manner of repayment; rate of interest.--The manner in 
     which such repayment shall be made, and the rate of any such 
     interest, shall be prescribed in regulations under section 
     1455 of this title.
       ``(D) Deposit of amounts repaid.--An amount repaid under 
     this paragraph (including any such interest) received by the 
     Secretary of Defense shall be deposited into the Department 
     of Defense Military Retirement Fund. Any other amount repaid 
     under this paragraph shall be deposited into the Treasury as 
     miscellaneous receipts.
       ``(l) Participants in the Plan Who Are Missing.--
       ``(1) Authority to presume death of missing participant.--
       ``(A) In general.--Upon application of the beneficiary of a 
     participant in the Plan who is missing, the Secretary 
     concerned may determine for purposes of this subchapter that 
     the participant is presumed dead.
       ``(B) Participant who is missing.--A participant in the 
     Plan is considered to be missing for purposes of this 
     subsection if--
       ``(i) the retired pay of the participant has been suspended 
     on the basis that the participant is missing; or
       ``(ii) in the case of a participant in the Plan who would 
     be eligible for reserve-component retired pay but for the 
     fact that he is under 60 years of age, his retired pay, if he 
     were entitled to retired pay, would be suspended on the basis 
     that he is missing.
       ``(C) Requirements applicable to presumption of death.--Any 
     such determination shall be made in accordance with 
     regulations prescribed under section 1455 of this title. The 
     Secretary concerned may not make a determination for purposes 
     of this subchapter that a participant who is missing is 
     presumed dead unless the Secretary finds that--
       ``(i) the participant has been missing for at least 30 
     days; and
       ``(ii) the circumstances under which the participant is 
     missing would lead a reasonably prudent person to conclude 
     that the participant is dead.
       ``(2) Commencement of annuity.--Upon a determination under 
     paragraph (1) with respect to a participant in the Plan, an 
     annuity otherwise payable under this subchapter shall be paid 
     as if the participant died on the date as of which the 
     retired pay of the participant was suspended.
       ``(3) Effect of person not being dead.--
       ``(A) Termination of annuity.--If, after a determination 
     under paragraph (1), the Secretary concerned determines that 
     the participant is alive--
       ``(i) any annuity being paid under this subchapter by 
     reason of this subsection shall be terminated; and
       ``(ii) the total amount of any annuity payments made by 
     reason of this subsection shall constitute a debt to the 
     United States.
       ``(B) Collection from participant of annuity amounts 
     erroneously paid.--A debt under subparagraph (A)(ii) may be 
     collected or offset--
       ``(i) from any retired pay otherwise payable to the 
     participant;
       ``(ii) if the participant is entitled to compensation under 
     chapter 11 of title 38, from that compensation; or
       ``(iii) if the participant is entitled to any other payment 
     from the United States, from that payment.
       ``(C) Collection from beneficiary.--If the participant dies 
     before the full recovery of the amount of annuity payments 
     described in subparagraph (A)(ii) has been made by the United 
     States, the remaining amount of such annuity payments may be 
     collected from the participant's beneficiary under the Plan 
     if that beneficiary was the recipient of the annuity payments 
     made by reason of this subsection.

     ``Sec. 1451. Amount of annuity

       ``(a) Computation of Annuity for a Spouse, Former Spouse, 
     or Child.--

[[Page H9030]]

       ``(1) Standard annuity.--In the case of a standard annuity 
     provided to a beneficiary under section 1450(a) of this title 
     (other than under section 1450(a)(4)), the monthly annuity 
     payable to the beneficiary shall be determined as follows:
       ``(A) Beneficiary under 62 years of age.--If the 
     beneficiary is under 62 years of age or is a dependent child 
     when becoming entitled to the annuity, the monthly annuity 
     shall be the amount equal to 55 percent of the base amount.
       ``(B) Beneficiary 62 years of age or older.--
       ``(i) General rule.--If the beneficiary (other than a 
     dependent child) is 62 years of age or older when becoming 
     entitled to the annuity, the monthly annuity shall be the 
     amount equal to 35 percent of the base amount.
       ``(ii) Rule if beneficiary eligible for social security 
     offset computation.--If the beneficiary is eligible to have 
     the annuity computed under subsection (e) and if, at the time 
     the beneficiary becomes entitled to the annuity, computation 
     of the annuity under that subsection is more favorable to the 
     beneficiary than computation under clause (i), the annuity 
     shall be computed under that subsection rather than under 
     clause (i).
       ``(2) Reserve-component annuity--In the case of a reserve-
     component annuity provided to a beneficiary under section 
     1450(a) of this title (other than under section 1450(a)(4)), 
     the monthly annuity payable to the beneficiary shall be 
     determined as follows:
       ``(A) Beneficiary under 62 years of age.--If the 
     beneficiary is under 62 years of age or is a dependent child 
     when becoming entitled to the annuity, the monthly annuity 
     shall be the amount equal to a percentage of the base amount 
     that--
       ``(i) is less than 55 percent; and
       ``(ii) is determined under subsection (f).
       ``(B) Beneficiary 62 years of age or older.--
       ``(i) General rule.--If the beneficiary (other than a 
     dependent child) is 62 years of age or older when becoming 
     entitled to the annuity, the monthly annuity shall be the 
     amount equal to a percentage of the base amount that--

       ``(I) is less than 35 percent; and
       ``(II) is determined under subsection (f).

       ``(ii) Rule if beneficiary eligible for social security 
     offset computation.--If the beneficiary is eligible to have 
     the annuity computed under subsection (e) and if, at the time 
     the beneficiary becomes entitled to the annuity, computation 
     of the annuity under that subsection is more favorable to the 
     beneficiary than computation under clause (i), the annuity 
     shall be computed under that subsection rather than under 
     clause (i).
       ``(b) Insurable Interest Beneficiary.--
       ``(1) Standard annuity.--In the case of a standard annuity 
     provided to a beneficiary under section 1450(a)(4) of this 
     title, the monthly annuity payable to the beneficiary shall 
     be the amount equal to 55 percent of the retired pay of the 
     person who elected to provide the annuity after the reduction 
     in that pay in accordance with section 1452(c) of this title.
       ``(2) Reserve-component annuity.--In the case of a reserve-
     component annuity provided to a beneficiary under section 
     1450(a)(4) of this title, the monthly annuity payable to the 
     beneficiary shall be the amount equal to a percentage of the 
     retired pay of the person who elected to provide the annuity 
     after the reduction in such pay in accordance with section 
     1452(c) of this title that--
       ``(A) is less than 55 percent; and
       ``(B) is determined under subsection (f).
       ``(3) Computation of reserve-component annuity when 
     participant dies before age 60.--For the purposes of 
     paragraph (2), a person--
       ``(A) who provides an annuity that is determined in 
     accordance with that paragraph;
       ``(B) who dies before becoming 60 years of age; and
       ``(C) who at the time of death is otherwise entitled to 
     retired pay,

     shall be considered to have been entitled to retired pay at 
     the time of death. The retired pay of such person for the 
     purposes of such paragraph shall be computed on the basis of 
     the rates of basic pay in effect on the date on which the 
     annuity provided by such person is to become effective in 
     accordance with the designation of such person under section 
     1448(e) of this title.
       ``(c) Annuities for Survivors of Certain Persons Dying 
     During a Period of Special Eligibility for SBP.--
       ``(1) In general.--In the case of an annuity provided under 
     section 1448(d) or 1448(f) of this title, the amount of the 
     annuity shall be determined as follows:
       ``(A) Beneficiary under 62 years of age.--If the person 
     receiving the annuity is under 62 years of age or is a 
     dependent child when the member or former member dies, the 
     monthly annuity shall be the amount equal to 55 percent of 
     the retired pay to which the member or former member would 
     have been entitled if the member or former member had been 
     entitled to that pay based upon his years of active service 
     when he died.
       ``(B) Beneficiary 62 years of age or older.--
       ``(i) General rule.--If the person receiving the annuity 
     (other than a dependent child) is 62 years of age or older 
     when the member or former member dies, the monthly annuity 
     shall be the amount equal to 35 percent of the retired pay to 
     which the member or former member would have been entitled if 
     the member or former member had been entitled to that pay 
     based upon his years of active service when he died.
       ``(ii) Rule if beneficiary eligible for social security 
     offset computation.--If the beneficiary is eligible to have 
     the annuity computed under subsection (e) and if, at the time 
     the beneficiary becomes entitled to the annuity, computation 
     of the annuity under that subsection is more favorable to the 
     beneficiary than computation under clause (i), the annuity 
     shall be computed under that subsection rather than under 
     clause (i).
       ``(2) DIC offset.--An annuity computed under paragraph (1) 
     that is paid to a surviving spouse shall be reduced by the 
     amount of dependency and indemnity compensation to which the 
     surviving spouse is entitled under section 1311(a) of title 
     38. Any such reduction shall be effective on the date of the 
     commencement of the period of payment of such compensation 
     under title 38.
       ``(3) Servicemembers not yet granted retired pay.--In the 
     case of an annuity provided by reason of the service of a 
     member described in section 1448(d)(1)(B) or 1448(d)(1)(C) of 
     this title who first became a member of a uniformed service 
     before September 8, 1980, the retired pay to which the member 
     would have been entitled when he died shall be determined for 
     purposes of paragraph (1) based upon the rate of basic pay in 
     effect at the time of death for the grade in which the member 
     was serving at the time of death, unless (as determined by 
     the Secretary concerned) the member would have been entitled 
     to be retired in a higher grade.
       ``(4) Rate of pay to be used in computing annuity.--In the 
     case of an annuity paid under section 1448(f) of this title 
     by reason of the service of a person who first became a 
     member of a uniformed service before September 8, 1980, the 
     retired pay of the person providing the annuity shall for the 
     purposes of paragraph (1) be computed on the basis of the 
     rates of basic pay in effect on the effective date of the 
     annuity.
       ``(d) Reduction of Annuities at Age 62.--
       ``(1) Reduction required.--The annuity of a person whose 
     annuity is computed under subparagraph (A) of subsection 
     (a)(1), (a)(2), or (c)(1) shall be reduced on the first day 
     of the month after the month in which the person becomes 62 
     years of age.
       ``(2) Amount of annuity as reduced.--
       ``(A) 35 percent annuity.--Except as provided in 
     subparagraph (B), the reduced amount of the annuity shall be 
     the amount of the annuity that the person would be receiving 
     on that date if the annuity had initially been computed under 
     subparagraph (B) of that subsection.
       ``(B) Savings provision for beneficiaries eligible for 
     social security offset computation.--In the case of a person 
     eligible to have an annuity computed under subsection (e) and 
     for whom, at the time the person becomes 62 years of age, the 
     annuity computed with a reduction under subsection (e)(3) is 
     more favorable than the annuity with a reduction described in 
     subparagraph (A), the reduction in the annuity shall be 
     computed in the same manner as a reduction under subsection 
     (e)(3).
       ``(e) Savings Provision for Certain Beneficiaries.--
       ``(1) Persons covered.--The following beneficiaries under 
     the Plan are eligible to have an annuity under the Plan 
     computed under this subsection:
       ``(A) A beneficiary receiving an annuity under the Plan on 
     October 1, 1985, as the surviving spouse or former spouse of 
     the person providing the annuity.
       ``(B) A spouse or former spouse beneficiary of a person who 
     on October 1, 1985--
       ``(i) was a participant in the Plan;
       ``(ii) was entitled to retired pay or was qualified for 
     that pay except that he had not applied for and been granted 
     that pay; or
       ``(iii) would have been eligible for reserve-component 
     retired pay but for the fact that he was under 60 years of 
     age.
       ``(2) Amount of annuity.--Subject to paragraph (3), an 
     annuity computed under this subsection is determined as 
     follows:
       ``(A) Standard annuity.--In the case of the beneficiary of 
     a standard annuity, the annuity shall be the amount equal to 
     55 percent of the base amount.
       ``(B) Reserve component annuity.--In the case of the 
     beneficiary of a reserve-component annuity, the annuity shall 
     be the percentage of the base amount that--
       ``(i) is less than 55 percent; and
       ``(ii) is determined under subsection (f).
       ``(C) Beneficiaries of persons dying during a period of 
     special eligibility for sbp.--In the case of the beneficiary 
     of an annuity under section 1448(d) or 1448(f) of this title, 
     the annuity shall be the amount equal to 55 percent of the 
     retired pay of the person providing the annuity (as that pay 
     is determined under subsection (c)).
       ``(3) Social security offset.--An annuity computed under 
     this subsection shall be reduced by the lesser of the 
     following:
       ``(A) Social security computation.--The amount of the 
     survivor benefit, if any, to which the surviving spouse (or 
     the former spouse, in the case of a former spouse beneficiary 
     who became a former spouse under a divorce that became final 
     after November 29, 1989) would be entitled under title II of 
     the Social Security Act (42 U.S.C. 401 et seq.) based solely 
     upon service by the person concerned as described in section 
     210(l)(1) of such Act (42 U.S.C. 410(l)(1)) and calculated 
     assuming that the person concerned lives to age 65.

[[Page H9031]]

       ``(B) Maximum amount of reduction.--40 percent of the 
     amount of the monthly annuity as determined under paragraph 
     (2).
       ``(4) Special rules for social security offset 
     computation.--
       ``(A) Treatment of deductions made on account of work.--For 
     the purpose of paragraph (3), a surviving spouse (or a former 
     spouse, in the case of a person who becomes a former spouse 
     under a divorce that becomes final after November 29, 1989) 
     shall not be considered as entitled to a benefit under title 
     II of the Social Security Act (42 U.S.C. 401 et seq.) to the 
     extent that such benefit has been offset by deductions under 
     section 203 of such Act (42 U.S.C. 403) on account of work.
       ``(B) Treatment of certain periods for which social 
     security refunds are made.--In the computation of any 
     reduction made under paragraph (3), there shall be excluded 
     any period of service described in section 210(l)(1) of the 
     Social Security Act (42 U.S.C. 410(l)(1))--
       ``(i) which was performed after December 1, 1980; and
       ``(ii) which involved periods of service of less than 30 
     continuous days for which the person concerned is entitled to 
     receive a refund under section 6413(c) of the Internal 
     Revenue Code of 1986 of the social security tax which the 
     person had paid.
       ``(f) Determination of Percentages Applicable to 
     Computation of Reserve-Component Annuities.--The percentage 
     to be applied in determining the amount of an annuity 
     computed under subsection (a)(2), (b)(2), or (e)(2)(B) shall 
     be determined under regulations prescribed by the Secretary 
     of Defense. Such regulations shall be prescribed taking into 
     consideration the following:
       ``(1) The age of the person electing to provide the annuity 
     at the time of such election.
       ``(2) The difference in age between such person and the 
     beneficiary of the annuity.
       ``(3) Whether such person provided for the annuity to 
     become effective (in the event he died before becoming 60 
     years of age) on the day after his death or on the 60th 
     anniversary of his birth.
       ``(4) Appropriate group annuity tables.
       ``(5) Such other factors as the Secretary considers 
     relevant.
       ``(g) Adjustments to Annuities.--
       ``(1) Periodic adjustments for cost-of-living.--
       ``(A) Increases in annuities when retired pay increased.--
     Whenever retired pay is increased under section 1401a of this 
     title (or any other provision of law), each annuity that is 
     payable under the Plan shall be increased at the same time.
       ``(B) Percentage of increase.--The increase shall, in the 
     case of any annuity, be by the same percent as the percent by 
     which the retired pay of the person providing the annuity 
     would have been increased at such time if the person were 
     alive (and otherwise entitled to such pay).
       ``(C) Certain reductions to be disregarded.--The amount of 
     the increase shall be based on the monthly annuity payable 
     before any reduction under section 1450(c) of this title or 
     under subsection (c)(2).
       ``(2) Rounding down.--The monthly amount of an annuity 
     payable under this subchapter, if not a multiple of $1, shall 
     be rounded to the next lower multiple of $1.
       ``(h) Adjustments to Base Amount.--
       ``(1) Periodic adjustments for cost-of-living.--
       ``(A) Increases in base amount when retired pay 
     increased.--Whenever retired pay is increased under section 
     1401a of this title (or any other provision of law), the base 
     amount applicable to each participant in the Plan shall be 
     increased at the same time.
       ``(B) Percentage of increase.--The increase shall be by the 
     same percent as the percent by which the retired pay of the 
     participant is so increased.
       ``(2) Recomputation at age 62.--When the retired pay of a 
     person who first became a member of a uniformed service on or 
     after August 1, 1986, and who is a participant in the Plan is 
     recomputed under section 1410 of this title upon the person's 
     becoming 62 years of age, the base amount applicable to that 
     person shall be recomputed (effective on the effective date 
     of the recomputation of such retired pay under section 1410 
     of this title) so as to be the amount equal to the amount of 
     the base amount that would be in effect on that date if 
     increases in such base amount under paragraph (1) had been 
     computed as provided in paragraph (2) of section 1401a(b) of 
     this title (rather than under paragraph (3) of that section).
       ``(3) Disregarding of retired pay reductions for retirement 
     before 30 years of service.--Computation of a member's 
     retired pay for purposes of this section shall be made 
     without regard to any reduction under section 1409(b)(2) of 
     this title.
       ``(i) Recomputation of Annuity for Certain Beneficiaries.--
     In the case of an annuity under the Plan which is computed on 
     the basis of the retired pay of a person who would have been 
     entitled to have that retired pay recomputed under section 
     1410 of this title upon attaining 62 years of age, but who 
     dies before attaining that age, the annuity shall be 
     recomputed, effective on the first day of the first month 
     beginning after the date on which the member or former member 
     would have attained 62 years of age, so as to be the amount 
     equal to the amount of the annuity that would be in effect on 
     that date if increases under subsection (h)(1) in the base 
     amount applicable to that annuity to the time of the death of 
     the member or former member, and increases in such annuity 
     under subsection (g)(1), had been computed as provided in 
     paragraph (2) of section 1401a(b) of this title (rather than 
     under paragraph (3) of that section).

     ``Sec. 1452. Reduction in retired pay

       ``(a) Spouse and Former Spouse Annuities.--
       ``(1) Required reduction in retired pay.--Except as 
     provided in subsection (b), the retired pay of a participant 
     in the Plan who is providing spouse coverage (as described in 
     paragraph (5)) shall be reduced as follows:
       ``(A) Standard annuity.--If the annuity coverage being 
     providing is a standard annuity, the reduction shall be as 
     follows:
       ``(i) Disability and nonregular service retirees.--In the 
     case of a person who is entitled to retired pay under chapter 
     61 or chapter 1223 of this title, the reduction shall be in 
     whichever of the alternative reduction amounts is more 
     favorable to that person.
       ``(ii) Members as of enactment of flat-rate reduction.--In 
     the case of a person who first became a member of a uniformed 
     service before March 1, 1990, the reduction shall be in 
     whichever of the alternative reduction amounts is more 
     favorable to that person.
       ``(iii) New entrants after enactment of flat-rate 
     reduction.--In the case of a person who first becomes a 
     member of a uniformed service on or after March 1, 1990, and 
     who is entitled to retired pay under a provision of law other 
     than chapter 61 or chapter 1223 of this title, the reduction 
     shall be in an amount equal to 6\1/2\ percent of the base 
     amount.
       ``(iv) Alternative reduction amounts.--For purposes of 
     clauses (i) and (ii), the alternative reduction amounts are 
     the following:

       ``(I) Flat-rate reduction.--An amount equal to 6\1/2\ 
     percent of the base amount.
       ``(II) Amount under pre-flat-rate reduction.--An amount 
     equal to 2\1/2\ percent of the first $337 (as adjusted after 
     November 1, 1989, under paragraph (4)) of the base amount 
     plus 10 percent of the remainder of the base amount.

       ``(B) Reserve-component annuity.--If the annuity coverage 
     being provided is a reserve-component annuity, the reduction 
     shall be in whichever of the following amounts is more 
     favorable to that person:
       ``(i) Flat-rate reduction.--An amount equal to 6\1/2\ 
     percent of the base amount plus an amount determined in 
     accordance with regulations prescribed by the Secretary of 
     Defense as a premium for the additional coverage provided 
     through reserve-component annuity coverage under the Plan.
       ``(ii) Amount under pre-flat-rate reduction.--An amount 
     equal to 2\1/2\ percent of the first $337 (as adjusted after 
     November 1, 1989, under paragraph (4)) of the base amount 
     plus 10 percent of the remainder of the base amount plus an 
     amount determined in accordance with regulations prescribed 
     by the Secretary of Defense as a premium for the additional 
     coverage provided through reserve-component annuity coverage 
     under the Plan.
       ``(2) Additional reduction for child coverage.--If there is 
     a dependent child as well as a spouse or former spouse, the 
     amount prescribed under paragraph (1) shall be increased by 
     an amount prescribed under regulations of the Secretary of 
     Defense.
       ``(3) No reduction when no beneficiary.--The reduction in 
     retired pay prescribed by paragraph (1) shall not be 
     applicable during any month in which there is no eligible 
     spouse or former spouse beneficiary.
       ``(4) Periodic adjustments.--
       ``(A) Adjustments for increases in rates of basic pay.--
     Whenever there is an increase in the rates of basic pay of 
     members of the uniformed services effective on or after 
     October 1, 1985, the amounts under paragraph (1) with respect 
     to which the percentage factor of 2\1/2\ is applied shall be 
     increased by the overall percentage of such increase in the 
     rates of basic pay. The increase under the preceding sentence 
     shall apply only with respect to persons whose retired pay is 
     computed based on the rates of basic pay in effect on or 
     after the date of such increase in rates of basic pay.
       ``(B) Adjustments for retired pay colas.--In addition to 
     the increase under subparagraph (A), the amounts under 
     paragraph (1) with respect to which the percentage factor of 
     2\1/2\ is applied shall be further increased at the same time 
     and by the same percentage as an increase in retired pay 
     under section 1401a of this title effective on or after 
     October 1, 1985. Such increase under the preceding sentence 
     shall apply only with respect to a person who initially 
     participates in the Plan on a date which is after both the 
     effective date of such increase under section 1401a and the 
     effective date of the rates of basic pay upon which that 
     person's retired pay is computed.
       ``(5) Spouse coverage described.--For the purposes of 
     paragraph (1), a participant in the Plan who is providing 
     spouse coverage is a participant who--
       ``(A) has (i) a spouse or former spouse, or (ii) a spouse 
     or former spouse and a dependent child; and
       ``(B) has not elected to provide an annuity to a person 
     designated by him under section 1448(b)(1) of this title or, 
     having made such an election, has changed his election in 
     favor of his spouse under section 1450(f) of this title.
       ``(b) Child-Only Annuities.--
       ``(1) Required reduction in retired pay.--The retired pay 
     of a participant in the Plan who is providing child-only 
     coverage (as described in paragraph (4)) shall be reduced by

[[Page H9032]]

     an amount prescribed under regulations by the Secretary of 
     Defense.
       ``(2) No reduction when no child.--There shall be no 
     reduction in retired pay under paragraph (1) for any month 
     during which the participant has no eligible dependent child.
       ``(3) Special rule for certain rcsbp participants.--In the 
     case of a participant in the Plan who is participating in the 
     Plan under an election under section 1448(a)(2)(B) of this 
     title and who provided child-only coverage during a period 
     before the participant becomes entitled to receive retired 
     pay, the retired pay of the participant shall be reduced by 
     an amount prescribed under regulations by the Secretary of 
     Defense to reflect the coverage provided under the Plan 
     during the period before the participant became entitled to 
     receive retired pay. A reduction under this paragraph is in 
     addition to any reduction under paragraph (1) and is made 
     without regard to whether there is an eligible dependent 
     child during a month for which the reduction is made.
       ``(4) Child-only coverage defined.--For the purposes of 
     this subsection, a participant in the Plan who is providing 
     child-only coverage is a participant who has a dependent 
     child and who--
       ``(A) does not have an eligible spouse or former spouse; or
       ``(B) has a spouse or former spouse but has elected to 
     provide an annuity for dependent children only.
       ``(c) Reduction for Insurable Interest Coverage.--
       ``(1) Required reduction in retired pay.--The retired pay 
     of a person who has elected to provide an annuity to a person 
     designated by him under section 1450(a)(4) of this title 
     shall be reduced as follows:
       ``(A) Standard annuity.--In the case of a person providing 
     a standard annuity, the reduction shall be by 10 percent plus 
     5 percent for each full five years the individual designated 
     is younger than that person.
       ``(B) Reserve component annuity.--In the case of a person 
     providing a reserve-component annuity, the reduction shall be 
     by an amount prescribed under regulations of the Secretary of 
     Defense.
       ``(2) Limitation on total reduction.--The total reduction 
     under paragraph (1) may not exceed 40 percent.
       ``(3) Duration of reduction.--The reduction in retired pay 
     prescribed by this subsection shall continue during the 
     lifetime of the person designated under section 1450(a)(4) of 
     this title or until the person receiving retired pay changes 
     his election under section 1450(f) of this title.
       ``(4) Rule for computation.--Computation of a member's 
     retired pay for purposes of this subsection shall be made 
     without regard to any reduction under section 1409(b)(2) of 
     this title.
       ``(d) Deposits To Cover Periods When Retired Pay Not 
     Paid.--
       ``(1) Required deposits.--If a person who has elected to 
     participate in the Plan has been awarded retired pay and is 
     not entitled to that pay for any period, that person must 
     deposit in the Treasury the amount that would otherwise have 
     been deducted from his pay for that period.
       ``(2) Deposits not required when participant on active 
     duty.--Paragraph (1) does not apply to a person with respect 
     to any period when that person is on active duty under a call 
     or order to active duty for a period of more than 30 days.
       ``(e) Deposits Not Required for Certain Participants in 
     CSRS.--When a person who has elected to participate in the 
     Plan waives that person's retired pay for the purposes of 
     subchapter III of chapter 83 of title 5, that person shall 
     not be required to make the deposit otherwise required by 
     subsection (d) as long as that waiver is in effect unless, in 
     accordance with section 8339(i) of title 5, that person has 
     notified the Office of Personnel Management that he does not 
     desire a spouse surviving him to receive an annuity under 
     section 8331(b) of title 5.
       ``(f) Refunds of Deductions Not Allowed.--
       ``(1) General rule.--A person is not entitled to refund of 
     any amount deducted from retired pay under this section.
       ``(2) Exceptions.--Paragraph (1) does not apply--
       ``(A) in the case of a refund authorized by section 1450(e) 
     of this title; or
       ``(B) in case of a deduction made through administrative 
     error.
       ``(g) Discontinuation of Participation by Participants 
     Whose Surviving Spouses Will Be Entitled to DIC.--
       ``(1) Discontinuation.--
       ``(A) Conditions.--Notwithstanding any other provision of 
     this subchapter but subject to paragraphs (2) and (3), a 
     person who has elected to participate in the Plan and who is 
     suffering from a service-connected disability rated by the 
     Secretary of Veterans Affairs as totally disabling and has 
     suffered from such disability while so rated for a continuous 
     period of 10 or more years (or, if so rated for a lesser 
     period, has suffered from such disability while so rated for 
     a continuous period of not less than 5 years from the date of 
     such person's last discharge or release from active duty) may 
     discontinue participation in the Plan by submitting to the 
     Secretary concerned a request to discontinue participation in 
     the Plan.
       ``(B) Effective date.--Participation in the Plan of a 
     person who submits a request under subparagraph (A) shall be 
     discontinued effective on the first day of the first month 
     following the month in which the request under subparagraph 
     (A) is received by the Secretary concerned. Effective on such 
     date, the Secretary concerned shall discontinue the reduction 
     being made in such person's retired pay on account of 
     participation in the Plan or, in the case of a person who has 
     been required to make deposits in the Treasury on account of 
     participation in the Plan, such person may discontinue making 
     such deposits effective on such date.
       ``(C) Form for request for discontinuation.--Any request 
     under this paragraph to discontinue participation in the Plan 
     shall be in such form and shall contain such information as 
     the Secretary concerned may require by regulation.
       ``(2) Consent of beneficiaries required.--A person 
     described in paragraph (1) may not discontinue participation 
     in the Plan under such paragraph without the written consent 
     of the beneficiary or beneficiaries of such person under the 
     Plan.
       ``(3) Information on plan to be provided by secretary 
     concerned.--
       ``(A) Information to be provided promptly to participant.--
     The Secretary concerned shall furnish promptly to each person 
     who files a request under paragraph (1) to discontinue 
     participation in the Plan a written statement of the 
     advantages of participating in the Plan and the possible 
     disadvantages of discontinuing participation.
       ``(B) Right to withdraw discontinuation request.--A person 
     may withdraw a request made under paragraph (1) if it is 
     withdrawn within 30 days after having been submitted to the 
     Secretary concerned.
       ``(4) Refund of deductions from retired pay.--Upon the 
     death of a person described in paragraph (1) who discontinued 
     participation in the Plan in accordance with this subsection, 
     any amount deducted from the retired pay of that person under 
     this section shall be refunded to the person's surviving 
     spouse.
       ``(5) Resumption of participation in plan.--
       ``(A) Conditions for resumption.--A person described in 
     paragraph (1) who discontinued participation in the Plan may 
     elect to participate again in the Plan if--
       ``(i) after having discontinued participation in the Plan 
     the Secretary of Veterans Affairs reduces that person's 
     service-connected disability rating to a rating of less than 
     total; and
       ``(ii) that person applies to the Secretary concerned, 
     within such period of time after the reduction in such 
     person's service-connected disability rating has been made as 
     the Secretary concerned may prescribe, to again participate 
     in the Plan and includes in such application such information 
     as the Secretary concerned may require.
       ``(B) Effective date of resumed coverage.--Such person's 
     participation in the Plan under this paragraph is effective 
     beginning on the first day of the month after the month in 
     which the Secretary concerned receives the application for 
     resumption of participation in the Plan.
       ``(C) Resumption of contributions.--When a person elects to 
     participate in the Plan under this paragraph, the Secretary 
     concerned shall begin making reductions in that person's 
     retired pay, or require such person to make deposits in the 
     Treasury under subsection (d), as appropriate, effective on 
     the effective date of such participation under subparagraph 
     (B).
       ``(h) Increases in Reduction With Increases in Retired 
     Pay.--
       ``(1) General rule.--Whenever retired pay is increased 
     under section 1401a of this title (or any other provision of 
     law), the amount of the reduction to be made under subsection 
     (a) or (b) in the retired pay of any person shall be 
     increased at the same time and by the same percentage as such 
     retired pay is so increased.
       ``(i) Recomputation of Reduction Upon Recomputation of 
     Retired Pay.--When the retired pay of a person who first 
     became a member of a uniformed service on or after August 1, 
     1986, and who is a participant in the Plan is recomputed 
     under section 1410 of this title upon the person's becoming 
     62 years of age, the amount of the reduction in such retired 
     pay under this section shall be recomputed (effective on the 
     effective date of the recomputation of such retired pay under 
     section 1410 of this title) so as to be the amount equal to 
     the amount of such reduction that would be in effect on that 
     date if increases in such retired pay under section 1401a(b) 
     of this title, and increases in reductions in such retired 
     pay under subsection (h), had been computed as provided in 
     paragraph (2) of section 1401a(b) of this title (rather than 
     under paragraph (3) of that section).

     ``Sec. 1453. Recovery of amounts erroneously paid

       ``(a) Recovery.--In addition to any other method of 
     recovery provided by law, the Secretary concerned may 
     authorize the recovery of any amount erroneously paid to a 
     person under this subchapter by deduction from later payments 
     to that person.
       ``(b) Authority To Waive Recovery.--Recovery of an amount 
     erroneously paid to a person under this subchapter is not 
     required if, in the judgment of the Secretary concerned and 
     the Comptroller General--
       ``(1) there has been no fault by the person to whom the 
     amount was erroneously paid; and
       ``(2) recovery of such amount would be contrary to the 
     purposes of this subchapter or against equity and good 
     conscience.

[[Page H9033]]

     ``Sec. 1454. Correction of administrative errors

       ``(a) Authority.--The Secretary concerned may, under 
     regulations prescribed under section 1455 of this title, 
     correct or revoke any election under this subchapter when the 
     Secretary considers it necessary to correct an administrative 
     error.
       ``(b) Finality.--Except when procured by fraud, a 
     correction or revocation under this section is final and 
     conclusive on all officers of the United States.

     ``Sec. 1455. Regulations

       ``(a) In General.--The President shall prescribe 
     regulations to carry out this subchapter. Those regulations 
     shall, so far as practicable, be uniform for the uniformed 
     services.
       ``(b) Notice of Elections.--Regulations prescribed under 
     this section shall provide that before the date on which a 
     member becomes entitled to retired pay--
       ``(1) if the member is married, the member and the member's 
     spouse shall be informed of the elections available under 
     section 1448(a) of this title and the effects of such 
     elections; and
       ``(2) if the notification referred to in section 
     1448(a)(3)(E) of this title is required, any former spouse of 
     the member shall be informed of the elections available and 
     the effects of such elections.
       ``(c) Procedure for Depositing Certain Receipts.--
     Regulations prescribed under this section shall establish 
     procedures for depositing the amounts referred to in sections 
     1448(g), 1450(k)(2), and 1452(d) of this title.
       ``(d) Payments to Guardians and Fiduciaries.--
       ``(1) In general.--Regulations prescribed under this 
     section shall provide procedures for the payment of an 
     annuity under this subchapter in the case of--
       ``(A) a person for whom a guardian or other fiduciary has 
     been appointed; and
       ``(B) a minor, mentally incompetent, or otherwise legally 
     disabled person for whom a guardian or other fiduciary has 
     not been appointed.
       ``(2) Authorized procedures.--The regulations under 
     paragraph (1) may include provisions for the following:
       ``(A) In the case of an annuitant referred to in paragraph 
     (1)(A), payment of the annuity to the appointed guardian or 
     other fiduciary.
       ``(B) In the case of an annuitant referred to in paragraph 
     (1)(B), payment of the annuity to any person who, in the 
     judgment of the Secretary concerned, is responsible for the 
     care of the annuitant.
       ``(C) Subject to subparagraphs (D) and (E), a requirement 
     for the payee of an annuity to spend or invest the amounts 
     paid on behalf of the annuitant solely for benefit of the 
     annuitant.
       ``(D) Authority for the Secretary concerned to permit the 
     payee to withhold from the annuity payment such amount, not 
     in excess of 4 percent of the annuity, as the Secretary 
     concerned considers a reasonable fee for the fiduciary 
     services of the payee when a court appointment order provides 
     for payment of such a fee to the payee for such services or 
     the Secretary concerned determines that payment of a fee to 
     such payee is necessary in order to obtain the fiduciary 
     services of the payee.
       ``(E) Authority for the Secretary concerned to require the 
     payee to provide a surety bond in an amount sufficient to 
     protect the interests of the annuitant and to pay for such 
     bond out of the annuity.
       ``(F) A requirement for the payee of an annuity to maintain 
     and, upon request, to provide to the Secretary concerned an 
     accounting of expenditures and investments of amounts paid to 
     the payee.
       ``(G) In the case of an annuitant referred to in paragraph 
     (1)(B)--
       ``(i) procedures for determining incompetency and for 
     selecting a payee to represent the annuitant for the purposes 
     of this section, including provisions for notifying the 
     annuitant of the actions being taken to make such a 
     determination and to select a representative payee, an 
     opportunity for the annuitant to review the evidence being 
     considered, and an opportunity for the annuitant to submit 
     additional evidence before the determination is made; and
       ``(ii) standards for determining incompetency, including 
     standards for determining the sufficiency of medical evidence 
     and other evidence.
       ``(H) Provisions for any other matter that the President 
     considers appropriate in connection with the payment of an 
     annuity in the case of a person referred to in paragraph (1).
       ``(3) Legal effect of payment to guardian or fiduciary.--An 
     annuity paid to a person on behalf of an annuitant in 
     accordance with the regulations prescribed pursuant to 
     paragraph (1) discharges the obligation of the United States 
     for payment to the annuitant of the amount of the annuity so 
     paid.''.

     SEC. 635. INCREASES IN SURVIVOR BENEFIT PLAN CONTRIBUTIONS TO 
                   BE EFFECTIVE CONCURRENTLY WITH PAYMENT OF 
                   RETIRED PAY COST-OF-LIVING INCREASES.

       (a) Survivor Benefit Plan.--Section 1452(h) of title 10, 
     United States Code, as amended by section 634, is amended by 
     adding at the end the following new paragraph:
       ``(2) Coordination when payment of increase in retired pay 
     is delayed by law.--
       ``(A) In general.--Notwithstanding paragraph (1), when the 
     initial payment of an increase in retired pay under section 
     1401a of this title (or any other provision of law) to a 
     person is for a month that begins later than the effective 
     date of that increase by reason of the application of 
     subsection (b)(2)(B) of such section (or section 631(b) of 
     Public Law 104-106 (110 Stat. 364)), then the amount of the 
     reduction in the person's retired pay shall be effective on 
     the date of that initial payment of the increase in retired 
     pay rather than the effective date of the increase in retired 
     pay.
       ``(B) Delay not to affect computation of annuity.--
     Subparagraph (A) may not be construed as delaying, for 
     purposes of determining the amount of a monthly annuity under 
     section 1451 of this title, the effective date of an increase 
     in a base amount under subsection (h) of such section from 
     the effective date of an increase in retired pay under 
     section 1401a of this title to the date on which the initial 
     payment of that increase in retired pay is made in accordance 
     with subsection (b)(2)(B) of such section.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply with respect to retired pay payable for months 
     beginning on or after the date of the enactment of this Act.

     SEC. 636. AMENDMENTS TO THE UNIFORMED SERVICES FORMER 
                   SPOUSES' PROTECTION ACT.

       (a) Manner of Service of Process.--Subsection (b)(1)(A) of 
     section 1408 of title 10, United States Code, is amended by 
     striking out ``certified or registered mail, return receipt 
     requested'' and inserting in lieu thereof ``facsimile or 
     electronic transmission or by mail''.
       (b) Subsequent Court Order From Another State.--Subsection 
     (d) of such section is amended by adding at the end the 
     following new paragraph:
       ``(6)(A) The Secretary concerned may not accept service of 
     a court order that is an out-of State modification, or comply 
     with the provisions of such a court order, unless the court 
     issuing that order has jurisdiction in the manner specified 
     in subsection (c)(4) over both the member and the spouse or 
     former spouse involved.
       ``(B) A court order shall be considered to be an out-of-
     State modification for purposes of this paragraph if the 
     order--
       ``(i) modifies a previous court order under this section 
     upon which payments under this subsection are based; and
       ``(ii) is issued by a court of a State other than the State 
     of the court that issued the previous court order.''.

     SEC. 637. PREVENTION OF CIRCUMVENTION OF COURT ORDER BY 
                   WAIVER OF RETIRED PAY TO ENHANCE CIVIL SERVICE 
                   RETIREMENT ANNUITY.

       (a) Civil Service Retirement and Disability System.--(1) 
     Subsection (c) of section 8332 of title 5, United States 
     Code, is amended by adding at the end the following new 
     paragraph:
       ``(4) If, after January 1, 1997, an employee or Member 
     waives retired pay that is subject to a court order for which 
     there has been effective service on the Secretary concerned 
     for purposes of section 1408 of title 10, the military 
     service on which the retired pay is based may be credited as 
     service for purposes of this subchapter only if the employee 
     or Member authorizes the Director to deduct and withhold from 
     the annuity payable to the employee or Member under this 
     subchapter an amount equal to the amount that, if the annuity 
     payment was instead a payment of the employee's or Member's 
     retired pay, would have been deducted and withheld and paid 
     to the former spouse covered by the court order under such 
     section 1408. The amount deducted and withheld under this 
     paragraph shall be paid to that former spouse. The period of 
     civil service employment by the employee or Member shall not 
     be taken into consideration in determining the amount of the 
     deductions and withholding or the amount of the payment to 
     the former spouse. The Director of the Office of Personnel 
     Management shall prescribe regulations to carry out this 
     paragraph.''.
       (2) Paragraph (1) of such subsection is amended by striking 
     out ``Except as provided in paragraph (2)'' and inserting in 
     lieu thereof ``Except as provided in paragraphs (2) and 
     (4)''.
       (b) Federal Employees' Retirement System.--(1) Subsection 
     (c) of section 8411 of title 5, United States Code, is 
     amended by adding at the end the following new paragraph:
       ``(5) If, after January 1, 1997, an employee or Member 
     waives retired pay that is subject to a court order for which 
     there has been effective service on the Secretary concerned 
     for purposes of section 1408 of title 10, the military 
     service on which the retired pay is based may be credited as 
     service for purposes of this chapter only if the employee or 
     Member authorizes the Director to deduct and withhold from 
     the annuity payable to the employee or Member under this 
     subchapter an amount equal to the amount that, if the annuity 
     payment was instead a payment of the employee's or Member's 
     retired pay, would have been deducted and withheld and paid 
     to the former spouse covered by the court order under such 
     section 1408. The amount deducted and withheld under this 
     paragraph shall be paid to that former spouse. The period of 
     civil service employment by the employee or Member shall not 
     be taken into consideration in determining the amount of the 
     deductions and withholding or the amount of the payment to 
     the former spouse. The Director of the Office of Personnel 
     Management shall prescribe regulations to carry out this 
     paragraph.''.
       (2) Paragraph (1) of such subsection is amended by striking 
     ``Except as provided in

[[Page H9034]]

     paragraph (2) or (3)'' and inserting ``Except as provided in 
     paragraphs (2), (3), and (5)''.
       (c) Effective Date.--The amendments made by subsections (a) 
     and (b) shall take effect on January 1, 1997.

     SEC. 638. ADMINISTRATION OF BENEFITS FOR SO-CALLED MINIMUM 
                   INCOME WIDOWS.

       (a) Adjusted Annual Income Limitation Appliable to 
     Eligibility for Income Supplement.--(1) Section 4 of Public 
     Law 92-425 (10 U.S.C. 1448 note) is amended--
       (A) in subsection (a)(3), by striking out ``$2,340'' and 
     inserting in lieu thereof ``the maximum annual rate of 
     pension in effect under section 1541(b) of title 38, United 
     States Code''; and
       (B) in in the first sentence of subsection (b), by striking 
     out ``$2,340 a year'' and and inserting in lieu thereof ``the 
     maximum annual rate of pension in effect under section 
     1541(b) of title 38, United States Code''.
       (2) Subsection (c) of such section is repealed.
       (b) Payments To Be Made by Secretary of Veterans Affairs.--
     Such section is further amended by adding at the end the 
     following new subsection:
       ``(e)(1) Payment of annuities under this section shall be 
     made by the Secretary of Veterans Affairs. If appropriate for 
     administrative convenience (or otherwise determined 
     appropriate by the Secretary of Veterans Affairs), that 
     Secretary may combine a payment to any person for any month 
     under this section with any other payment for that month 
     under laws administered by the Secretary so as to provide 
     that person with a single payment for that month.
       ``(2) The Secretary concerned shall annually transfer to 
     the Secretary of Veterans Affairs such amounts as may be 
     necessary for payments by the Secretary of Veterans Affairs 
     under this section and for costs of the Secretary of Veterans 
     Affairs in administering this section. Such transfers shall 
     be made from amounts that would otherwise be used for payment 
     of annuities by the Secretary concerned under this section. 
     The authority to make such a transfer is in addition to any 
     other authority of the Secretary concerned to transfer funds 
     for a purpose other than the purpose for which the funds were 
     originally made available. In the case of a transfer by the 
     Secretary of a military department, the provisions of section 
     2215 of title 10, United States Code, do not apply.
       ``(3) The Secretary concerned shall promptly notify the 
     Secretary of Veterans Affairs of any change in beneficiaries 
     under this section.''.
       (c) Clarification of Continuing Eligiblity for Department 
     of Veterans Affairs Pension.--Such section, as amended by 
     subsection (a)(2), is further amended by inserting after 
     subsection (b) the following new subsection (c):
       ``(c) The amount of an annuity payable under this section, 
     although counted as income in determining the amount of any 
     pension described in subsection (a)(2) of this section, shall 
     not be considered to affect the eligiblity of the recipient 
     of such annuity for such pension, even though, as a result of 
     including the amount of the annuity as income, no amount of 
     such pension is due.''.
       (d) Effective Date.--The amendments made by this section 
     take effect on July 1, 1997, and apply with respect to 
     payments of benefits for any month after June 1997.
                       Subtitle E--Other Matters

     SEC. 651. DISCRETIONARY ALLOTMENT OF PAY, INCLUDING RETIRED 
                   OR RETAINER PAY.

       (a) Allotments Authorized.--Section 701 of title 37, United 
     States Code, is amended by striking out subsection (d) and 
     inserting in lieu thereof the following new subsections:
       ``(d) Under regulations prescribed by the Secretary of 
     Defense, a member of the Army, Navy, Air Force, or Marine 
     Corps and a contract surgeon of the Army, Navy, or Air Force 
     may make allotments from the pay of the member or surgeon for 
     the purpose of supporting relatives or for any other purpose 
     that the Secretary considers proper. Such allotments may 
     include a maximum of six allotments considered to be 
     discretionary under such regulations. For a member or former 
     member entitled to retired or retainer pay, a maximum of six 
     discretionary allotments authorized during active military 
     service may be continued into retired status, and new 
     discretionary allotments may be authorized so long as the 
     total number of discretionary allotments does not exceed six.
       ``(e) If an allotment made under subsection (d) is paid to 
     the allottee before the disbursing officer receives a notice 
     of discontinuance from the officer required by regulation to 
     furnish the notice, the amount of the allotment shall be 
     credited to the disbursing officer. If an allotment is 
     erroneously paid because the officer required by regulation 
     to so report failed to report the death of the allotter or 
     any other fact that makes the allotment not payable, the 
     amount of the payment not recovered from the allottee shall, 
     if practicable, be collected by the Secretary concerned from 
     the officer who failed to make the report.''.
       (b) Issuance of Regulations.--The Secretaries of the 
     military departments shall prescribe regulations under 
     subsection (d) of section 701 of title 37, United States 
     Code, as added by subsection (a), not later than October 1, 
     1997.

     SEC. 652. REIMBURSEMENT FOR ADOPTION EXPENSES INCURRED IN 
                   ADOPTIONS THROUGH PRIVATE PLACEMENTS.

       (a) Department of Defense.--Section 1052(g) of title 10, 
     United States Code, is amended--
       (1) in paragraph (1), by striking out ``State or local 
     government'' and all that follows through the period at the 
     end of the first sentence and inserting in lieu thereof 
     ``qualified adoption agency.''; and
       (2) by adding at the end the following new paragraph:
       ``(3) The term `qualified adoption agency' means any of the 
     following:
       ``(A) A State or local government agency which has 
     responsibility under State or local law for child placement 
     through adoption.
       ``(B) A nonprofit, voluntary adoption agency which is 
     authorized by State or local law to place children for 
     adoption.
       ``(C) Any other source authorized by a State to provide 
     adoption placement if the adoption is supervised by a court 
     under State or local law.''.
       (b) Coast Guard.--Section 514(g) of title 14, United States 
     Code, is amended--
       (1) in paragraph (1), by striking out ``State or local 
     government'' and all that follows through the period at the 
     end of the first sentence and inserting in lieu thereof 
     ``qualified adoption agency.''; and
       (2) by adding at the end the following new paragraph:
       ``(3) The term `qualified adoption agency' means any of the 
     following:
       ``(A) A State or local government agency which has 
     responsibility under State or local law for child placement 
     through adoption.
       ``(B) A nonprofit, voluntary adoption agency which is 
     authorized by State or local law to place children for 
     adoption.
       ``(C) Any other source authorized by a State to provide 
     adoption placement if the adoption is supervised by a court 
     under State or local law.''.

     SEC. 653. WAIVER OF RECOUPMENT OF AMOUNTS WITHHELD FOR TAX 
                   PURPOSES FROM CERTAIN SEPARATION PAY.

       (a) In General.--Section 1174(h)(2) of title 10, United 
     States Code, is amended by inserting before the period at the 
     end of the first sentence the following: ``, less the amount 
     of Federal income tax withheld from such pay (such 
     withholding being at the flat withholding rate for Federal 
     income tax withholding, as in effect pursuant to regulations 
     prescribed under chapter 24 of the Internal Revenue Code of 
     1986)''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 1996, and shall apply to 
     payments of separation pay, severance pay, or readjustment 
     pay that are made after September 30, 1996.

     SEC. 654. TECHNICAL CORRECTION CLARIFYING LIMITATION ON 
                   FURNISHING CLOTHING OR ALLOWANCES FOR ENLISTED 
                   NATIONAL GUARD TECHNICIANS.

       Section 418(c) of title 37, United States Code, is amended 
     by striking out ``for which a uniform allowance is paid under 
     section 415 or 416 of this title'' and inserting in lieu 
     thereof ``for which clothing is furnished or a uniform 
     allowance is paid under this section''.

     SEC. 655. TECHNICAL CORRECTION TO PRIOR AUTHORITY FOR PAYMENT 
                   OF BACK PAY TO CERTAIN PERSONS.

       Section 634 of the National Defense Authorization Act for 
     Fiscal Year 1996 (Public Law 104-106; 110 Stat. 366) is 
     amended--
       (1) in subsection (b)(1), by striking out ``Island of 
     Bataan'' and inserting in lieu thereof ``peninsula of Bataan 
     or island of Corregidor''; and
       (2) in subsection (c), by inserting after the first 
     sentence the following: ``For the purposes of this 
     subsection, the Secretary of War shall be deemed to have 
     determined that conditions in the Philippines during the 
     specified period justified payment under applicable 
     regulations of quarters and subsistence allowances at the 
     maximum special rate for duty where emergency conditions 
     existed.''.

     SEC. 656. COMPENSATION FOR PERSONS AWARDED PRISONER OF WAR 
                   MEDAL WHO DID NOT PREVIOUSLY RECEIVE 
                   COMPENSATION AS A PRISONER OF WAR.

       (a) Authority To Make Payments.--The Secretary of the 
     military department concerned shall make payments in the 
     manner provided in section 6 of the War Claims Act of 1948 
     (50 U.S.C. App. 2005) to (or on behalf of) any person 
     described in subsection (b) who submits an application for 
     such payment in accordance with subsection (d).
       (b) Eligible Persons.--This section applies with respect to 
     a member or former member of the Armed Forces who--
       (1) has received the prisoner of war medal under section 
     1128 of title 10, United States Code; and
       (2) has not previously received a payment under section 6 
     of the War Claims Act of 1948 (50 U.S.C. App. 2005) with 
     respect to the period of internment for which the person 
     received the prisoner of war medal.
       (c) Amount of Payment.--The amount of the payment to any 
     person under this section shall be determined based upon the 
     provisions of section 6 of the War Claims Act of 1948 that 
     are applicable with respect to the period of time during 
     which the internment occurred for which the person received 
     the prisoner of war medal.
       (d) One-Year Period for Submission of Applications.--A 
     payment may be made by reason of this section only in the 
     case of a person who submits an application to the Secretary 
     concerned for such payment during the one-year period 
     beginning on the

[[Page H9035]]

     date of the enactment of this Act. Any such application shall 
     be submitted in such form and manner as the Secretary may 
     require.

     SEC. 657. PAYMENTS TO CERTAIN PERSONS CAPTURED AND INTERNED 
                   BY NORTH VIETNAM.

       (a) Payment Authorized to Eligible Persons.--(1) Using 
     amounts made available under subsection (g), the Secretary of 
     Defense shall make a payment under this section to a person 
     who demonstrates to the satisfaction of the Secretary of 
     Defense that the person was captured and incarcerated by the 
     Democratic Republic of Vietnam as a result of the 
     participation by the person in operations conducted under 
     OPLAN 34A or its predecessor.
       (2) Using amounts made available under subsection (g), the 
     Secretary of Defense shall also make a payment under this 
     section to a person who demonstrates to the satisfaction of 
     the Secretary of Defense that the person--
       (A) served as a Vietnamese operative pursuant to OPLAN 35;
       (B) was captured and incarcerated by North Vietnamese 
     forces as a result of the participation by the person in 
     operations in Laos or along the Lao-Vietnamese border 
     pursuant to OPLAN 35;
       (C) remained in captivity after 1973 (or died in 
     captivity); and
       (D) has not previously received payment from the United 
     States for the period spent in captivity.
       (3) A payment may not be made under this section to, or 
     with respect to, a person who the Secretary of Defense 
     determines, based on the available evidence, served in the 
     Peoples Army of Vietnam or provided active assistance to the 
     Government of the Democratic Republic of Vietnam during the 
     period from 1958 through 1975.
       (b) Effect of Death of Eligible Person.--In the case of a 
     decedent who would have been eligible for a payment under 
     this section if alive, the documentation required under 
     subsection (a) may be provided by survivors of the decedent, 
     and the payment under this section shall be made to survivors 
     of the decedent in the following order:
       (1) To the surviving spouse.
       (2) If there is no surviving spouse, to the surviving 
     children (including natural children and adopted children) of 
     the decedent, in equal shares.
       (c) Amount Payable.--The amount payable to, or with respect 
     to, a person under this section is $40,000. If a person can 
     demonstrate to the Secretary of Defense that confinement or 
     incarceration exceeded 20 years, the Secretary may pay an 
     additional $2,000 for each full year in excess of 20 (and a 
     proportionate amount for a partial year), but the total 
     amount paid to, or with respect to, a person under this 
     section may not exceed $50,000.
       (d) Time Limitations.--(1) To be eligible for a payment 
     under this section, a claimant must file a claim for such 
     payment with the Secretary of Defense within 18 months of the 
     effective date of the regulations implementing this section.
       (2) Not later than 18 months after receiving a claim for 
     payment under this section, the Secretary shall determine the 
     eligibility of the claimant for payment of the claim. Subject 
     to subsection (f), if the Secretary determines that the 
     claimant is eligible for the payment, the Secretary shall 
     promptly pay the claim.
       (e) Regulations.--(1) The Secretary of Defense shall 
     prescribe regulations to carry out this section. Such 
     regulations shall include procedures by which persons may 
     submit claims for payment under this section. Such 
     regulations shall be prescribed not later than six months 
     after the date of the enactment of this Act.
       (2) The Secretary of Defense may establish guidelines 
     regarding what constitutes adequate documentation for 
     determining whether a person satisfies the requirements 
     specified in subsection (a) regarding eligibility for a 
     payment under this section. Such guidelines shall be 
     established in consultation with the heads of other agencies 
     of the Government involved with OPLAN 34A or its predecessor 
     or OPLAN 35.
       (f) Limitation on Disbursement.--(1) The actual 
     disbursement of a payment under this section may be made only 
     to the person who is eligible for the payment under 
     subsection (a) or (b) and only--
       (A) upon the appearance of that person, in person, at any 
     designated disbursement office in the United States or its 
     territories; or
       (B) at such other location or in such other manner as that 
     person may request in writing.
       (2) In the case of a claim approved for payment but not 
     disbursed as a result of operation of paragraph (1), the 
     Secretary of Defense shall hold the funds in trust for the 
     person in an interest bearing account until such time as the 
     person makes an election under such paragraph.
       (g) Funding.--To the extent provided in advance for this 
     section in appropriations Acts, of amounts authorized to be 
     appropriated under section 301(24) for this purpose, 
     $20,000,000 shall be available until expended for payments 
     under this section.
       (h) Payment in Full Satisfaction of Claims Against the 
     United States.--The acceptance of payment by, or with respect 
     to, a person under this section shall be in full satisfaction 
     of all claims by or on behalf of that individual against the 
     United States arising from operations under OPLAN 34A or its 
     predecessor or OPLAN 35.
       (i) Attorney Fees.--Notwithstanding any contract, the 
     representative of a person may not receive, for services 
     rendered in connection with the claim of, or with respect to, 
     a person under this section, more than 10 percent of a 
     payment made under this section on that claim.
       (j) No Right to Judicial Review.--All determinations by the 
     Secretary of Defense pursuant to this section are final and 
     conclusive, notwithstanding any other provision of law. 
     Claimants under this section have no right to judicial 
     review, and such review is specifically precluded.
       (k) Reports to Congress.--(1) Not later than 24 months 
     after the date of the enactment of this Act, the Secretary of 
     Defense shall submit to Congress a report on the payment of 
     claims under this section.
       (2) After the submission of the report under paragraph (1), 
     the Secretary shall periodically submit to Congress a report 
     on the status of payment of claims under this section.
                   TITLE VII--HEALTH CARE PROVISIONS

                    Subtitle A--Health Care Services

Sec. 701. Preventive health care screening for colon and prostate 
              cancer.
Sec. 702. Implementation of requirement for Selected Reserve dental 
              insurance plan.
Sec. 703. Dental insurance plan for military retirees and unremarried 
              surviving spouses and certain other dependents of 
              military retirees.
Sec. 704. Plan for health care coverage for children with medical 
              conditions caused by parental exposure to chemical 
              munitions while serving as members of the Armed Forces.

                      Subtitle B--TRICARE Program

Sec. 711. CHAMPUS payment limits for TRICARE prime enrollees.
Sec. 712. Improved information exchange between military treatment 
              facilities and TRICARE program contractors.
Sec. 713. Plans for medicare subvention demonstration programs.

          Subtitle C--Uniformed Services Treatment Facilities

Sec. 721. Definitions.
Sec. 722. Inclusion of designated providers in uniformed services 
              health care delivery system.
Sec. 723. Provision of uniform benefit by designated providers.
Sec. 724. Enrollment of covered beneficiaries.
Sec. 725. Application of CHAMPUS payment rules.
Sec. 726. Payments for services.
Sec. 727. Repeal of superseded authorities.

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

Sec. 731. Authority to waive CHAMPUS exclusion regarding nonmedically 
              necessary treatment in connection with certain clinical 
              trials.
Sec. 732. Exception to maximum allowable payments to individual health-
              care providers under CHAMPUS.
Sec. 733. Codification of annual authority to credit CHAMPUS refunds to 
              current year appropriation.
Sec. 734. Exceptions to requirements regarding obtaining 
              nonavailability-of-health-care statements.
Sec. 735. Enhancement of third-party collection and secondary payer 
              authorities under CHAMPUS.

                       Subtitle E--Other Matters

Sec. 741. Alternatives to active duty service obligation under Armed 
              Forces Health Professions Scholarship and Financial 
              Assistance program and Uniformed Services University of 
              the Health Sciences.
Sec. 742. External peer review for defense health program extramural 
              medical research involving human subjects.
Sec. 743. Independent research regarding Gulf War syndrome.
Sec. 744. Comptroller General review of health care activities of 
              Department of Defense relating to Gulf War illnesses.
Sec. 745. Report regarding specialized treatment facility program.
Sec. 746. Study of means of ensuring uniformity in provision of medical 
              and dental care for members of reserve components.
Sec. 747. Sense of Congress regarding tax treatment of Armed Forces 
              Health Professions Scholarship and Financial Assistance 
              program.
                    Subtitle A--Health Care Services

     SEC. 701. SPREVENTIVE HEALTH CARE SCREENING FOR COLON AND 
                   PROSTATE CANCER.

       (a) Members and Former Members.--(1) Section 1074d of title 
     10, United States Code, is amended--
       (A) in subsection (a)--
       (i) by inserting ``(1)'' before ``Female''; and
       (ii) by adding at the end the following new paragraph:
       ``(2) Male members and former members of the uniformed 
     services entitled to medical care under section 1074 or 1074a 
     of this title shall also be entitled to preventive health 
     care screening for colon or prostate cancer at such intervals 
     and using such screening methods as the administering 
     Secretaries consider appropriate.''; and

[[Page H9036]]

       (B) in subsection (b), by adding at the end the following 
     new paragraph:
       ``(8) Colon cancer screening, at the intervals and using 
     the screening methods prescribed under subsection (a)(2).''.
       (2)(A) The heading of such section is amended to read as 
     follows:

     ``Sec. 1074d. Certain primary and preventive health care 
       services

       (B) The item relating to such section in the table of 
     sections at the beginning of chapter 55 of such title is 
     amended to read as follows:
``1074d. Certain primary and preventive health care services.''.
       (b) Dependents.--(1) Section 1077(a) of such title is 
     amended by adding at the end the following new paragraph:
       ``(14) Preventive health care screening for colon or 
     prostate cancer, at the intervals and using the screening 
     methods prescribed under section 1074d(a)(2) of this 
     title.''.
       (2) Section 1079(a)(2) of such title is amended--
       (A) in the matter preceding subparagraph (A), by inserting 
     ``the schedule and method of colon and prostate cancer 
     screenings,'' after ``pap smears and mammograms,''; and
       (B) in subparagraph (B), by inserting ``or colon and 
     prostate cancer screenings'' after ``pap smears and 
     mammograms''.

     SEC. 702. IMPLEMENTATION OF REQUIREMENT FOR SELECTED RESERVE 
                   DENTAL INSURANCE PLAN.

       (a) Implementation by Contract.--Subsection (a) of section 
     1076b of title 10, United States Code, is amended--
       (1) by inserting ``(1)'' after ``(a) Authority To Establish 
     Plan.--'';
       (2) by designating the third sentence as paragraph (3); and
       (3) by inserting after paragraph (1), as designated by 
     paragraph (1) of this subsection, the following new 
     paragraph:
       ``(2) The Secretary shall provide benefits under the plan 
     through one or more contracts awarded after full and open 
     competition.''.
       (b) Collection of Premiums of Members Not Receiving Basic 
     Pay.--Subsection (b)(3) of such section is amended by adding 
     at the end the following: ``In the case of a member who does 
     not receive basic pay, the Secretary of Defense shall 
     establish procedures for the collection of the member's share 
     of the premium for coverage.''.
       (c) Schedule for Implementation.--Section 705(b) of the 
     National Defense Authorization Act for Fiscal Year 1996 
     (Public Law 104-106; 110 Stat. 373; 10 U.S.C. 1076b note) is 
     amended--
       (1) in the first sentence, by striking out ``October 1, 
     1996'' and inserting in lieu thereof ``October 1, 1997''; and
       (2) by striking out ``fiscal year 1996'' both places it 
     appears and inserting in lieu thereof ``fiscal years 1996 and 
     1997''.

     SEC. 703. DENTAL INSURANCE PLAN FOR MILITARY RETIREES AND 
                   UNREMARRIED SURVIVING SPOUSES AND CERTAIN OTHER 
                   DEPENDENTS OF MILITARY RETIREES.

       (a) Establishment of Dental Plan.--(1) Chapter 55 of title 
     10, United States Code, is amended by inserting after section 
     1076b the following new section:

     ``Sec. 1076c. Dental insurance plan: certain retirees and 
       their surviving spouses and other dependents

       ``(a) Requirement for Plan.--The Secretary of Defense shall 
     establish a dental insurance plan for military retirees, 
     certain unremarried surviving spouses, and dependents in 
     accordance with this section.
       ``(b) Persons Eligible for Plan.--The following persons are 
     eligible to enroll in the dental insurance plan established 
     under subsection (a):
       ``(1) Members of the armed forces who are entitled to 
     retired pay.
       ``(2) Members of the Retired Reserve who would be entitled 
     to retired pay under chapter 1223 of this title but for being 
     under 60 years of age.
       ``(3) Eligible dependents of a member described in 
     paragraph (1) or (2) who are covered by the enrollment of the 
     member in the plan.
       ``(4) The unremarried surviving spouse and eligible child 
     dependents of a deceased member--
       ``(A) who dies while in a status described in paragraph (1) 
     or (2); or
       ``(B) who is described in section 1448(d)(1) of this title.
       ``(c) Premiums.--(1) A member enrolled in the dental 
     insurance plan established under subsection (a) shall pay the 
     premiums charged for the insurance coverage.
       ``(2) The amount of the premiums payable by a member 
     entitled to retired pay shall be deducted and withheld from 
     the retired pay and shall be disbursed to pay the premiums. 
     The regulations prescribed under subsection (h) shall specify 
     the procedures for payment of the premiums by other enrolled 
     members and by enrolled surviving spouses.
       ``(d) Benefits Available Under the Plan.--The dental 
     insurance plan established under subsection (a) shall provide 
     benefits for basic dental care and treatment, including 
     diagnostic services, preventative services, basic restorative 
     services (including endodontics), surgical services, and 
     emergency services.
       ``(e) Coverage.--(1) The Secretary shall prescribe a 
     minimum required period for enrollment by a member or 
     surviving spouse in the dental insurance plan established 
     under subsection (a).
       ``(2) The dental insurance plan shall provide for voluntary 
     enrollment of participants and shall authorize a member or 
     eligible unremarried surviving spouse to enroll for self only 
     or for self and eligible dependents.
       ``(f) Termination of Enrollment.--The Secretary shall 
     terminate the enrollment of any enrollee, and any eligible 
     dependents of the enrollee covered by the enrollment, in the 
     dental insurance plan established under subsection (a) upon 
     the occurrence of the following:
       ``(1) In the case of an enrollment under subsection (b)(1), 
     termination of the member's entitlement to retired pay.
       ``(2) In the case of an enrollment under subsection (b)(2), 
     termination of the member's status as a member of the Retired 
     Reserve.
       ``(3) In the case of an enrollment under subsection (b)(4), 
     remarriage of the surviving spouse.
       ``(g) Continuation of Dependents' Enrollment Upon Death of 
     Enrollee.--Coverage of a dependent in the dental insurance 
     plan established under subsection (a) under an enrollment of 
     a member or a surviving spouse who dies during the period of 
     enrollment shall continue until the end of that period and 
     may be renewed by (or for) the dependent, so long as the 
     premium paid is sufficient to cover continuation of the 
     dependent's enrollment. The Secretary may terminate coverage 
     of the dependent when the premiums paid are no longer 
     sufficient to cover continuation of the enrollment. The 
     Secretary shall prescribe in regulations under subsection (h) 
     the parties responsible for paying the remaining premiums due 
     on the enrollment and the manner for collection of the 
     premiums.
       ``(h) Regulations.--The dental insurance plan established 
     under subsection (a) shall be administered under regulations 
     prescribed by the Secretary of Defense, in consultation with 
     the Secretary of Transportation.
       ``(i) Definitions.--In this section:
       ``(1) The term `eligible dependent' means a dependent 
     described in subparagraph (A), (D), or (I) of section 1072(2) 
     of this title.
       ``(2) The term `eligible child dependent' means a dependent 
     described in subparagraph (D) or (I) of section 1072(2) of 
     this title.
       ``(3) The term `retired pay' includes retainer pay.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     1076b the following new item:
``1076c. Dental insurance plan: certain retirees and their surviving 
              spouses and other dependents.''.
       (b) Implementation.--Beginning not later than October 1, 
     1997, the Secretary of Defense shall--
       (1) offer members of the Armed Forces and other persons 
     described in subsection (b) of section 1076c of title 10, 
     United States Code (as added by subsection (a)(1) of this 
     section), the opportunity to enroll in the dental insurance 
     plan required under that section; and
       (2) begin to provide benefits under the plan.

     SEC. 704. PLAN FOR HEALTH CARE COVERAGE FOR CHILDREN WITH 
                   MEDICAL CONDITIONS CAUSED BY PARENTAL EXPOSURE 
                   TO CHEMICAL MUNITIONS WHILE SERVING AS MEMBERS 
                   OF THE ARMED FORCES.

       (a) Plan Required.--The Secretary of Defense, in 
     coordination with the Secretary of Veterans Affairs, shall 
     develop a plan for ensuring the provision of medical care to 
     any natural child of a member of the Armed Forces (including 
     former members and members discharged or otherwise separated 
     from active duty) who has a congenital defect or catastrophic 
     illness, proven to a reasonable degree of scientific 
     certainty on the basis of scientific research to have 
     resulted from exposure of the member to a chemical warfare 
     agent or other hazardous material to which the member was 
     exposed during active military service.
       (b) Submission to Congress.--Not later than 180 days after 
     the date of the enactment of this Act, the Secretary of 
     Defense shall submit the plan developed under subsection (a) 
     to Congress.
       (c) Definitions of Congenital Defect and Catastrophic 
     Illness.--The Secretary of Defense shall prescribe in 
     regulations a definition of the terms ``congenital defect'' 
     and ``catastrophic illness'' for the purposes of this 
     section.
                      Subtitle B--TRICARE Program

     SEC. 711. CHAMPUS PAYMENT LIMITS FOR TRICARE PRIME ENROLLEES.

       Section 1079(h)(4) of title 10, United States Code, is 
     amended in the second sentence by striking out ``emergency''.

     SEC. 712. IMPROVED INFORMATION EXCHANGE BETWEEN MILITARY 
                   TREATMENT FACILITIES AND TRICARE PROGRAM 
                   CONTRACTORS.

       (a) Uniform Interfaces.--The Secretary of Defense shall 
     ensure that the automated medical information system being 
     developed by the Department of Defense (known as the 
     Composite Health Care System) provides for uniform interfaces 
     between information systems of military treatment facilities 
     and private contractors under managed care programs of the 
     TRICARE program. The uniform interface shall provide for a 
     full electronic two-way exchange of health care information 
     between the military treatment facilities and contractor 
     information systems, including enrollment information, 
     information regarding eligibility determinations, provider 
     network information, appointment information, and information 
     regarding the existence of third-party payers.
       (b) Amendment of Existing Contracts.--To assure a single 
     consistent source of information throughout the health care 
     delivery

[[Page H9037]]

     system of the uniformed services, the Secretary of Defense 
     shall amend each TRICARE program contract, with the consent 
     of the TRICARE program contractor and notwithstanding any 
     requirement for competition, to require the contractor--
       (1) to use software furnished under the Composite Health 
     Care System to record military treatment facility provider 
     appointments; and
       (2) to record TRICARE program enrollment through direct use 
     of the Composite Health Care System software or through the 
     uniform two-way interface between the contractor and military 
     treatment facilities systems, where applicable.
       (c) Definition of TRICARE Program.--For purposes of this 
     section, the term ``TRICARE program'' means the managed 
     health care program that is established by the Secretary of 
     Defense under the authority of chapter 55 of title 10, United 
     States Code, principally section 1097 of such 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.

     SEC. 713. PLANS FOR MEDICARE SUBVENTION DEMONSTRATION 
                   PROGRAMS.

       (a) Program for Enrollment in TRICARE Managed Care 
     Option.--Not later than September 6, 1996, the Secretary of 
     Defense and the Secretary of Health and Human Services shall 
     jointly submit to Congress and the President a report 
     containing a specific plan (including the recommendations of 
     the Secretaries required under subsection (b)) regarding the 
     establishment of a demonstration program under which--
       (1) covered beneficiaries under chapter 55 of title 10, 
     United States Code, who are also entitled to benefits under 
     part A of the medicare program are permitted to enroll in the 
     managed care option of the TRICARE program; and
       (2) the Secretary of Health and Human Services reimburses 
     the Secretary of Defense from the medicare program on a 
     capitated basis for the costs of providing health care 
     services to military retirees who enroll.
       (b) Specific Elements of Report.--The report shall include 
     the following:
       (1) The number of covered beneficiaries described in 
     subsection (a) who are projected to participate in the 
     demonstration program and the minimum number of such 
     participants necessary to conduct the demonstration program 
     effectively.
       (2) A plan for notifying such covered beneficiaries of 
     their eligibility for enrollment in the demonstration program 
     and for any other matters connected with enrollment.
       (3) A recommendation for the duration of the demonstration 
     program.
       (4) A recommendation for the geographic regions in which 
     the demonstration program should be conducted.
       (5) The appropriate level of capitated reimbursement, and a 
     schedule for such reimbursement, from the medicare program to 
     the Department of Defense for health care services provided 
     enrollees in the demonstration program.
       (6) An estimate of the amounts that, in the absence of the 
     demonstration program, would be required to be allocated by 
     the Department of Defense for the provision of health care 
     services to covered beneficiaries described in subsection (a) 
     who reside in the regions in which the demonstration program 
     is proposed to be conducted.
       (7) An assessment of revisions to the allocation estimated 
     under paragraph (6) that would result from the conduct of the 
     demonstration program in such regions.
       (8) An estimate of the cost to the Department of Defense 
     and to the medicare program of providing health care services 
     to covered beneficiaries described in subsection (a) who 
     enroll in the demonstration program.
       (9) An assessment of the likelihood of cost shifting among 
     the Department of Defense and the medicare program under the 
     demonstration program.
       (10) A proposal for mechanisms for reconciling and 
     reimbursing any improper payments among the Department of 
     Defense and the medicare program under the demonstration 
     program.
       (11) A methodology for evaluating the demonstration 
     program, including cost analyses.
       (12) As assessment of the extent to which the TRICARE 
     program is prepared to meet requirements of the medicare 
     program for purposes of the demonstration program and the 
     provisions of law or regulation that would have to be waived 
     in order to facilitate the carrying out of the demonstration 
     program.
       (13) An assessment of the impact of the demonstration 
     program on military readiness.
       (14) Contingency plans for the provision of health care 
     services under the demonstration program in the event of the 
     mobilization of health care personnel.
       (15) A recommendation of the reports that the Department of 
     Defense and the Department of Health and Human Services 
     should submit to Congress describing the conduct of the 
     demonstration program.
       (c) Program for Enrollment in TRICARE Fee-For-Service 
     Option.--Not later than January 3, 1997, the Secretary of 
     Defense and the Secretary of Health and Human Services shall 
     jointly submit to Congress and the President a report on the 
     feasibility and advisability of expanding the demonstration 
     program referred to in subsection (a) so as to provide the 
     Department of Defense with reimbursement from the medicare 
     program on a fee-for-service basis for health care services 
     provided covered beneficiaries described in subsection (a) 
     who enroll in the demonstration program. The report shall 
     include a proposal for the expansion of the program if the 
     expansion is determined to be advisable.
          Subtitle C--Uniformed Services Treatment Facilities

     SEC. 721. DEFINITIONS.

       In this subtitle:
       (1) The term ``administering Secretaries'' means the 
     Secretary of Defense, the Secretary of Transportation, and 
     the Secretary of Health and Human Services.
       (2) The term ``agreement'' means the agreement required 
     under section 722(b) between the Secretary of Defense and a 
     designated provider.
       (3) The term ``capitation payment'' means an actuarially 
     sound payment for a defined set of health care services that 
     is established on a per enrollee per month basis.
       (4) The term ``covered beneficiary'' means a beneficiary 
     under chapter 55 of title 10, United States Code, other than 
     a beneficiary under section 1074(a) of such title.
       (5) The term ``designated provider'' means a public or 
     nonprofit private entity that was a transferee of a Public 
     Health Service hospital or other station under section 987 of 
     the Omnibus Budget Reconciliation Act of 1981 (Public Law 97-
     35; 42 U.S.C. 248b) and that, before the date of the 
     enactment of this Act, was deemed to be a facility of the 
     uniformed services for the purposes of chapter 55 of title 
     10, United States Code. The term includes any legal successor 
     in interest of the transferee.
       (6) The term ``enrollee'' means a covered beneficiary who 
     enrolls with a designated provider.
       (7) The term ``health care services'' means the health care 
     services provided under the health plan known as the 
     ``TRICARE PRIME'' option under the TRICARE program.
       (8) The term ``Secretary'' means the Secretary of Defense.
       (9) The term ``TRICARE program'' means the managed health 
     care program that is established by the Secretary of Defense 
     under the authority of chapter 55 of title 10, United States 
     Code, principally section 1097 of such 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.

     SEC. 722. INCLUSION OF DESIGNATED PROVIDERS IN UNIFORMED 
                   SERVICES HEALTH CARE DELIVERY SYSTEM.

       (a) Inclusion in System.--The health care delivery system 
     of the uniformed services shall include the designated 
     providers.
       (b) Agreements to Provide Managed Health Care Services.--
     (1) After consultation with the other administering 
     Secretaries, the Secretary of Defense shall negotiate and 
     enter into an agreement with each designated provider under 
     which the designated provider will provide health care 
     services in or through managed care plans to covered 
     beneficiaries who enroll with the designated provider.
       (2) The agreement shall be entered into on a sole source 
     basis. The Federal Acquisition Regulation, except for those 
     requirements regarding competition, issued pursuant to 
     section 25(c) of the Office of Federal Procurement Policy Act 
     (41 U.S.C. 421(c)) shall apply to the agreements as 
     acquisitions of commercial items.
       (3) The implementation of an agreement is subject to 
     availability of funds for such purpose.
       (c) Effective Date of Agreements.--(1) Unless an earlier 
     effective date is agreed upon by the Secretary and the 
     designated provider, the agreement shall take effect upon the 
     later of the following:
       (A) The date on which a managed care support contract under 
     the TRICARE program is implemented in the service area of the 
     designated provider.
       (B) October 1, 1997.
       (2) Notwithstanding paragraph (1), the designated provider 
     whose service area includes Seattle, Washington, shall 
     implement its agreement as soon as the agreement permits.
       (d) Temporary Continuation of Existing Participation 
     Agreements.--The Secretary shall extend the participation 
     agreement of a designated provider in effect immediately 
     before the date of the enactment of this Act under section 
     718(c) of the National Defense Authorization Act for Fiscal 
     Year 1991 (Public Law 101-510; 42 U.S.C. 248c) until the 
     agreement required by this section takes effect under 
     subsection (c).
       (e) Service Area.--The Secretary may not reduce the size of 
     the service area of a designated provider below the size of 
     the service area in effect as of September 30, 1996.
       (f) Compliance With Administrative Requirements.--(1) 
     Unless otherwise agreed upon by the Secretary and a 
     designated provider, the designated provider shall comply 
     with necessary and appropriate administrative requirements 
     established by the Secretary for other providers of health 
     care services and requirements established by the Secretary 
     of Health and Human Services for risk-sharing contractors 
     under section 1876 of the Social Security Act (42 U.S.C. 
     1395mm). The Secretary and the designated provider shall 
     determine and apply only such administrative requirements as 
     are minimally necessary and appropriate. A designated 
     provider shall not be required to comply with a law or 
     regulation of a State government requiring licensure as a 
     health insurer or health maintenance organization.

[[Page H9038]]

       (2) A designated provider may not contract out more than 
     five percent of its primary care enrollment without the 
     approval of the Secretary, except in the case of primary care 
     contracts between a designated provider and a primary care 
     contractor in force on the date of the enactment of this Act.

     SEC. 723. PROVISION OF UNIFORM BENEFIT BY DESIGNATED 
                   PROVIDERS.

       (a) Uniform Benefit Required.--A designated provider shall 
     offer to enrollees the health benefit option prescribed and 
     implemented by the Secretary under section 731 of the 
     National Defense Authorization Act for Fiscal Year 1994 
     (Public Law 103-160; 10 U.S.C. 1073 note), including 
     accompanying cost-sharing requirements.
       (b) Time for Implementation of Benefit.--A designated 
     provider shall offer the health benefit option described in 
     subsection (a) to enrollees upon the later of the following:
       (1) The date on which health care services within the 
     health care delivery system of the uniformed services are 
     rendered through the TRICARE program in the region in which 
     the designated provider operates.
       (2) October 1, 1997.
       (c) Adjustments.--The Secretary may establish a later date 
     under subsection (b)(2) or prescribe reduced cost-sharing 
     requirements for enrollees.

     SEC. 724. ENROLLMENT OF COVERED BENEFICIARIES.

       (a) Fiscal Year 1997 Limitation.--(1) During fiscal year 
     1997, the number of covered beneficiaries who are enrolled in 
     managed care plans offered by designated providers may not 
     exceed the number of such enrollees as of October 1, 1995.
       (2) The Secretary may waive the limitation under paragraph 
     (1) if the Secretary determines that additional enrollment 
     authority for a designated provider is required to 
     accommodate covered beneficiaries who are dependents of 
     members of the uniformed services entitled to health care 
     under section 1074(a) of title 10, United States Code.
       (b) Permanent Limitation.--For each fiscal year beginning 
     after September 30, 1997, the number of enrollees in managed 
     care plans offered by designated providers may not exceed 110 
     percent of the number of such enrollees as of the first day 
     of the immediately preceding fiscal year. The Secretary may 
     waive this limitation as provided in subsection (a)(2).
       (c) Retention of Current Enrollees.--An enrollee in the 
     managed care plan of a designated provider as of September 
     30, 1997, or such earlier date as the designated provider and 
     the Secretary may agree upon, shall continue receiving 
     services from the designated provider pursuant to the 
     agreement entered into under section 722 unless the enrollee 
     disenrolls from the designated provider. Except as provided 
     in subsection (e), the administering Secretaries may not 
     disenroll such an enrollee unless the disenrollment is agreed 
     to by the Secretary and the designated provider.
       (d) Additional Enrollment Authority.--Other covered 
     beneficiaries may also receive health care services from a 
     designated provider, except that the designated provider may 
     market such services to, and enroll, only those covered 
     beneficiaries who--
       (1) do not have other primary health insurance coverage 
     (other than medicare coverage) covering basic primary care 
     and inpatient and outpatient services; or
       (2) are enrolled in the direct care system under the 
     TRICARE program, regardless of whether the covered 
     beneficiaries were users of the health care delivery system 
     of the uniformed services in prior years.
       (e) Special Rule for Medicare-Eligible Beneficiaries.--If a 
     covered beneficiary who desires to enroll in the managed care 
     program of a designated provider is also entitled to hospital 
     insurance benefits under part A of title XVIII of the Social 
     Security Act (42 U.S.C. 1395c et seq.), the covered 
     beneficiary shall elect whether to receive health care 
     services as an enrollee or under part A of title XVIII of the 
     Social Security Act. The Secretary may disenroll an enrollee 
     who subsequently violates the election made under this 
     subsection and receives benefits under part A of title XVIII 
     of the Social Security Act.
       (f) Information Regarding Eligible Covered Beneficiaries.--
     The Secretary shall provide, in a timely manner, a designated 
     provider with an accurate list of covered beneficiaries 
     within the marketing area of the designated provider to whom 
     the designated provider may offer enrollment.

     SEC. 725. APPLICATION OF CHAMPUS PAYMENT RULES.

       (a) Application of Payment Rules.--Subject to subsection 
     (b), the Secretary shall require a private facility or health 
     care provider that is a health care provider under the 
     Civilian Health and Medical Program of the Uniformed Services 
     to apply the payment rules described in section 1074(c) of 
     title 10, United States Code, in imposing charges for health 
     care that the private facility or provider provides to 
     enrollees of a designated provider.
       (b) Authorized Adjustments.--The payment rules imposed 
     under subsection (a) shall be subject to such modifications 
     as the Secretary considers appropriate. The Secretary may 
     authorize a lower rate than the maximum rate that would 
     otherwise apply under subsection (a) if the lower rate is 
     agreed to by the designated provider and the private facility 
     or health care provider.
       (c) Regulations.--The Secretary shall prescribe regulations 
     to implement this section after consultation with the other 
     administering Secretaries.
       (d) Conforming Amendment.--Section 1074 of title 10, United 
     States Code, is amended by striking out subsection (d).

     SEC. 726. PAYMENTS FOR SERVICES.

       (a) Form of Payment.--Unless otherwise agreed to by the 
     Secretary and a designated provider, the form of payment for 
     health care services provided by a designated provider shall 
     be on a full risk capitation payment basis. The capitation 
     payments shall be negotiated and agreed upon by the Secretary 
     and the designated provider. In addition to such other 
     factors as the parties may agree to apply, the capitation 
     payments shall be based on the utilization experience of 
     enrollees and competitive market rates for equivalent health 
     care services for a comparable population to such enrollees 
     in the area in which the designated provider is located.
       (b) Limitation on Total Payments.--Total capitation 
     payments for health care services to a designated provider 
     shall not exceed an amount equal to the cost that would have 
     been incurred by the Government if the enrollees had received 
     such health care services through a military treatment 
     facility, the TRICARE program, or the medicare program, as 
     the case may be.
       (c) Establishment of Payment Rates on Annual Basis.--The 
     Secretary and a designated provider shall establish 
     capitation payments on an annual basis, subject to periodic 
     review for actuarial soundness and to adjustment for any 
     adverse or favorable selection reasonably anticipated to 
     result from the design of the program under this subtitle.
       (d) Alternative Basis for Calculating Payments.--After 
     September 30, 1999, the Secretary and a designated provider 
     may mutually agree upon a new basis for calculating 
     capitation payments.

     SEC. 727. REPEAL OF SUPERSEDED AUTHORITIES.

       (a) Repeals.--The following provisions of law are repealed:
       (1) Section 911 of the Military Construction Authorization 
     Act, 1982 (42 U.S.C. 248c).
       (2) Section 1252 of the Department of Defense Authorization 
     Act, 1984 (42 U.S.C. 248d).
       (3) Section 718(c) of the National Defense Authorization 
     Act for Fiscal year 1991 (Public Law 101-510; 42 U.S.C. 248c 
     note).
       (4) Section 726 of the National Defense Authorization Act 
     for Fiscal Year 1996 (Public Law 104-106; 42 U.S.C. 248c 
     note).
       (b) Effective Date.--The amendments made by paragraphs (1), 
     (2), and (3) of subsection (a) shall take effect on October 
     1, 1997.
   Subtitle D--Other Changes to Existing Laws Regarding Health Care 
                               Management

     SEC. 731. AUTHORITY TO WAIVE CHAMPUS EXCLUSION REGARDING 
                   NONMEDICALLY NECESSARY TREATMENT IN CONNECTION 
                   WITH CERTAIN CLINICAL TRIALS.

       (a) Waiver Authority.--Paragraph (13) of section 1079(a) of 
     title 10, United States Code, is amended--
       (1) by striking out ``any service'' and inserting in lieu 
     thereof ``Any service'';
       (2) by striking out the semicolon at the end and inserting 
     in lieu thereof a period; and
       (3) by adding at the end the following: ``Pursuant to an 
     agreement with the Secretary of Health and Human Services and 
     under such regulations as the Secretary of Defense may 
     prescribe, the Secretary of Defense may waive the operation 
     of this paragraph in connection with clinical trials 
     sponsored or approved by the National Institutes of Health if 
     the Secretary of Defense determines that such a waiver will 
     promote access by covered beneficiaries to promising new 
     treatments and contribute to the development of such 
     treatments.''.
       (b) Clerical Amendments.--Such section is further amended--
       (1) in the matter preceding paragraph (1), by striking out 
     ``except that--'' and inserting in lieu thereof ``except as 
     follows:'';
       (2) by capitalizing the first letter of the first word of 
     each of paragraphs (1) through (17);
       (3) by striking out the semicolon at the end of each of 
     paragraphs (1) through (12) and paragraphs (14) and (15) and 
     inserting in lieu thereof a period; and
       (4) in paragraph (16), by striking out ``; and'' and 
     inserting in lieu thereof a period.

     SEC. 732. EXCEPTION TO MAXIMUM ALLOWABLE PAYMENTS TO 
                   INDIVIDUAL HEALTH-CARE PROVIDERS UNDER CHAMPUS.

       Section 1079(h) of title 10, United States Code, is 
     amended--
       (1) by redesignating paragraph (5) as paragraph (6); and
       (2) by inserting after paragraph (4) the following new 
     paragraph:
       ``(5) In addition to the authority provided under paragraph 
     (4), the Secretary may authorize the commander of a facility 
     of the uniformed services, the lead agent (if other than the 
     commander), and the health care contractor to modify the 
     payment limitations under paragraph (1) for certain health 
     care providers when necessary to ensure both the availability 
     of certain services for covered beneficiaries and lower costs 
     than would otherwise be incurred to provide the services.''.

     SEC. 733. CODIFICATION OF ANNUAL AUTHORITY TO CREDIT CHAMPUS 
                   REFUNDS TO CURRENT YEAR APPROPRIATION.

       (a) Credits to CHAMPUS Accounts.--(1) Chapter 55 of title 
     10, United States Code, is

[[Page H9039]]

     amended by inserting after section 1079 the following new 
     section:

     ``Sec. 1079a. CHAMPUS: treatment of refunds and other amounts 
       collected

       ``All refunds and other amounts collected in the 
     administration of the Civilian Health and Medical Program of 
     the Uniformed Services shall be credited to the appropriation 
     available for that program for the fiscal year in which the 
     refund or amount is collected.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     1079 the following new item:
``1079a. CHAMPUS: treatment of refunds and other amounts collected.''.
       (b) Conforming Repeal.--Section 8094 of the Department of 
     Defense Appropriations Act, 1996 (Public Law 104-61; 109 
     Stat. 671), is repealed.

     SEC. 734. EXCEPTIONS TO REQUIREMENTS REGARDING OBTAINING 
                   NONAVAILABILITY-OF-HEALTH-CARE STATEMENTS.

       (a) Reference to Inpatient Medical Care.--(1) Section 
     1080(a) of title 10, United States Code, is amended by 
     inserting ``inpatient'' before ``medical care'' in the first 
     sentence.
       (2) Section 1086(e) of such title is amended in the first 
     sentence by striking out ``benefits'' and inserting in lieu 
     thereof ``inpatient medical care''.
       (b) Waivers and Exceptions to Requirements.--(1) Section 
     1080 of such title is amended by adding at the end the 
     following new subsection:
       ``(c) Waivers and Exceptions to Requirements.--(1) A 
     covered beneficiary enrolled in a managed care plan offered 
     pursuant to any contract or agreement under this chapter for 
     the provision of health care services shall not be required 
     to obtain a nonavailability-of-health-care statement as a 
     condition for the receipt of health care.
       ``(2) The Secretary of Defense may waive the requirement to 
     obtain nonavailability-of-health-care statements following an 
     evaluation of the effectiveness of such statements in 
     optimizing the use of facilities of the uniformed 
     services.''.
       (2) Section 1086(e) of such title is amended in the last 
     sentence by striking out ``section 1080(b)'' and inserting in 
     lieu thereof ``subsections (b) and (c) of section 1080''.
       (c) Conforming Amendments.--Section 1080(b) of such title 
     is amended--
       (1) by striking out ``Nonavailability of Health Care 
     Statements'' and inserting in lieu thereof ``Nonavailability-
     of-Health-Care Statements; and
       (2) by striking out ``nonavailability of health care 
     statement'' and inserting in lieu thereof ``nonavailability-
     of-health-care statement''.

     SEC. 735. ENHANCEMENT OF THIRD-PARTY COLLECTION AND SECONDARY 
                   PAYER AUTHORITIES UNDER CHAMPUS.

       (a) Retention and Use by Treatment Facilities of Amounts 
     Collected.--Subsection (g)(1) of section 1095 of title 10, 
     United States Code, is amended by inserting ``or through'' 
     after ``provided at''.
       (b) Expansion of Definition of Third-Party Payer.--
     Subsection (h) of such section is amended--
       (1) in the first sentence of paragraph (1), by inserting 
     ``and a workers' compensation program or plan'' before the 
     period; and
       (2) in paragraph (2)--
       (A) by striking out ``organization and'' and inserting in 
     lieu thereof a ``organization,''; and
       (B) by inserting before the period at the end the 
     following: ``, and a personal injury protection plan or 
     medical payments benefit plan for personal injuries resulting 
     from the operation of a motor vehicle''.
       (c) Applicability of Secondary Payer Requirement.--Section 
     1079(j)(1) of such title is amended by inserting after ``or 
     health plan'' the following: ``, including any plan offered 
     by a third-party payer (as defined in section 1095(h)(1) of 
     this title),''.
                       Subtitle E--Other Matters

     SEC. 741. ALTERNATIVES TO ACTIVE DUTY SERVICE OBLIGATION 
                   UNDER ARMED FORCES HEALTH PROFESSIONS 
                   SCHOLARSHIP AND FINANCIAL ASSISTANCE PROGRAM 
                   AND UNIFORMED SERVICES UNIVERSITY OF THE HEALTH 
                   SCIENCES.

       (a) Armed Forces Health Professions Scholarship and 
     Financial Assistance Program.--Subsection (e) of section 2123 
     of title 10, United States Code, is amended to read as 
     follows:
       ``(e)(1) A member of the program who is relieved of the 
     member's active duty obligation under this subchapter before 
     the completion of that active duty obligation may be given, 
     with or without the consent of the member, any of the 
     following alternative obligations, as determined by the 
     Secretary of the military department concerned:
       ``(A) A service obligation in another armed force for a 
     period of time not less than the member's remaining active 
     duty service obligation.
       ``(B) A service obligation in a component of the Selected 
     Reserve for a period not less than twice as long as the 
     member's remaining active duty service obligation.
       ``(C) Repayment to the Secretary of Defense of a percentage 
     of the total cost incurred by the Secretary under this 
     subchapter on behalf of the member equal to the percentage of 
     the member's total active duty service obligation being 
     relieved, plus interest.
       ``(2) In addition to the alternative obligations specified 
     in paragraph (1), if the member is relieved of an active duty 
     obligation by reason of the separation of the member because 
     of a physical disability, the Secretary of the military 
     department concerned may give the member a service obligation 
     as a civilian employee employed as a health care professional 
     in a facility of the uniformed services for a period of time 
     equal to the member's remaining active duty service 
     obligation.
       ``(3) The Secretary of Defense shall prescribe regulations 
     describing the manner in which an alternative obligation may 
     be given under this subsection.''.
       (b) Uniformed Services University of the Health Sciences.--
     Section 2114 of title 10, United States Code is amended by 
     adding at the end the following new subsection:
       ``(h) A graduate of the University who is relieved of the 
     graduate's active-duty service obligation under subsection 
     (b) before the completion of that active-duty service 
     obligation may be given, with or without the consent of the 
     graduate, an alternative obligation in the same manner as 
     provided in subparagraphs (A) and (B) of paragraph (1) of 
     section 2123(e)(1) of this title or paragraph (2) of such 
     section for members of the Armed Forces Health Professions 
     Scholarship and Financial Assistance program.''.
       (c) Application of Amendments.--The amendments made by this 
     section shall apply with respect to individuals who first 
     become members of the Armed Forces Health Professions 
     Scholarship and Financial Assistance program or students of 
     the Uniformed Services University of the Health Sciences on 
     or after October 1, 1996.
       (d) Transition Provision.--(1) In the case of any member of 
     the Armed Forces Health Professions Scholarship and Financial 
     Assistance program who, as of October 1, 1996, is serving an 
     active duty obligation under the program or is incurring an 
     active duty obligation as a participant in the program, and 
     who is subsequently relieved of the active duty obligation 
     before the completion of the obligation, the alternative 
     obligations authorized by the amendment made by subsection 
     (a) may be used by the Secretary of the military department 
     concerned with the agreement of the member.
       (2) In the case of any person who, as of October 1, 1996, 
     is serving an active-duty service obligation as a graduate of 
     the Uniformed Services University of the Health Sciences or 
     is incurring an active-duty service obligation as a student 
     of the University, and who is subsequently relieved of the 
     active-duty service obligation before the completion of the 
     obligation, the alternative obligations authorized by the 
     amendment made by subsection (b) may be implemented by the 
     Secretary of Defense with the agreement of the person.
       (e) Report on Utilization of Graduates of University.--Not 
     later than 120 days after the date of the enactment of this 
     Act, the Secretary of Defense shall submit to Congress a 
     report on the utilization by the Department of Defense of 
     graduates of the Uniformed Services University of the Health 
     Sciences. The report shall include a discussion of means of 
     ensuring that graduates of the University have received 
     training in medical specialties for which the Department has 
     particular need.

     SEC. 742. EXTERNAL PEER REVIEW FOR DEFENSE HEALTH PROGRAM 
                   EXTRAMURAL MEDICAL RESEARCH INVOLVING HUMAN 
                   SUBJECTS.

       (a) Establishment of External Peer Review Process.--The 
     Secretary of Defense shall establish a peer review process 
     that will use persons who are not officers or employees of 
     the Government to review the research protocols of medical 
     research projects.
       (b) Peer Review Requirements.--Funds of the Department of 
     Defense may not be obligated or expended for any medical 
     research project unless the research protocol for the project 
     has been approved by the external peer review process 
     established under subsection (a).
       (c) Medical Research Project Defined.--For purposes of this 
     section, the term ``medical research project'' means a 
     research project that--
       (1) involves the participation of human subjects;
       (2) is conducted solely by a non-Federal entity; and
       (3) is funded through the Defense Health Program account.
       (d) Effective Date.--The peer review requirements of 
     subsection (b) shall take effect on October 1, 1996, and, 
     except as provided in subsection (e), shall apply to all 
     medical research projects proposed funded on or after that 
     date, including medical research projects funded pursuant to 
     any requirement of law enacted before, on, or after that 
     date.
       (e) Exceptions.--Only the following medical research 
     projects shall be exempt from the peer review requirements of 
     subsection (b):
       (1) A medical research project that the Secretary 
     determines has been substantially completed by October 1, 
     1996.
       (2) A medical research project funded pursuant to any 
     provision of law enacted on or after that date if the 
     provision of law specifically refers to this section and 
     specifically states that the peer review requirements do not 
     apply.

     SEC. 743. INDEPENDENT RESEARCH REGARDING GULF WAR SYNDROME.

       (a) Definitions.--For purposes of this section:
       (1) The term ``Gulf War service'' means service on active 
     duty as a member of the

[[Page H9040]]

     Armed Forces in the Southwest Asia theater of operations 
     during the Persian Gulf War.
       (2) The term ``Gulf War syndrome'' means the complex of 
     illnesses and symptoms commonly known as Gulf War syndrome.
       (3) The term ``Persian Gulf War'' has the meaning given 
     that term in section 101(33) of title 38, United States Code.
       (b) Research.--The Secretary of Defense shall provide, by 
     contract, grant, or other transaction, for scientific 
     research to be carried out by entities independent of the 
     Federal Government on possible causal relationships between 
     Gulf War syndrome and--
       (1) the possible exposures of members of the Armed Forces 
     to chemical warfare agents or other hazardous materials 
     during Gulf War service; and
       (2) the use by the Department of Defense during the Persian 
     Gulf War of combinations of various inoculations and 
     investigational new drugs.
       (c) Procedures for Awarding Grants.--The Secretary shall 
     prescribe the procedures to be used to make research awards 
     under subsection (b). The procedures shall--
       (1) include a comprehensive, independent peer-review 
     process for the evaluation of proposals for scientific 
     research that are submitted to the Department of Defense; and
       (2) provide for the final selection of proposals for award 
     to be based on the scientific merit and program relevance of 
     the proposed research.
       (d) Availability of Funds.--Of the amount authorized to be 
     appropriated under section 301(21) for defense medical 
     programs, $10,000,000 is available for research under 
     subsection (b).

     SEC. 744. COMPTROLLER GENERAL REVIEW OF HEALTH CARE 
                   ACTIVITIES OF DEPARTMENT OF DEFENSE RELATING TO 
                   GULF WAR ILLNESSES.

       (a) Medical Research and Clinical Care Programs.--The 
     Comptroller General shall analyze the effectiveness of the 
     medical research programs and clinical care programs of the 
     Department of Defense that relate to illnesses that might 
     have been contracted by members of the Armed Forces as a 
     result of service in the Southwest Asia theater of operations 
     during the Persian Gulf War.
       (b) Policies Regarding Investigational New Drugs.--The 
     Comptroller General shall analyze the scope and effectiveness 
     of the policies of the Department of Defense with respect 
     to--
       (1) the use of investigational new drugs during the Persian 
     Gulf War to treat members of the Armed Forces who served in 
     the Southwest Asia theater of operations; and
       (2) the current use of investigational new drugs to treat 
     illnesses referred to in subsection (a).
       (c) Administration of Medical Records.--The Comptroller 
     General shall analyze the administration of medical records 
     by the military departments in order to assess the extent to 
     which such records accurately reflect the pre-deployment 
     medical assessments, immunization records, informed consent 
     releases, complaints during routine sick call, emergency room 
     visits, visits with unit medics during deployment, and other 
     relevant medical information relating to the members and 
     former members referred to in subsection (a) with respect to 
     the illnesses referred to in that subsection.
       (d) Reports.--Not later than March 1, 1997, the Comptroller 
     General shall submit to Congress a separate report on each of 
     the analyses required under subsections (a), (b), and (c).

     SEC. 745. REPORT REGARDING SPECIALIZED TREATMENT FACILITY 
                   PROGRAM.

       Not later than April 1, 1997, the Secretary of Defense 
     shall submit to Congress a report evaluating the impact on 
     the military health care system of limiting the service area 
     of a facility designated as part of the specialized treatment 
     facility program under section 1105 of title 10, United 
     States Code, to not more than 100 miles from the facility.

     SEC. 746. STUDY OF MEANS OF ENSURING UNIFORMITY IN PROVISION 
                   OF MEDICAL AND DENTAL CARE FOR MEMBERS OF 
                   RESERVE COMPONENTS.

       (a) Study.--(1) In consultation with the Secretary of 
     Transportation, the Secretary of Defense shall conduct a 
     study of means of improving the provision of medical and 
     dental care to members of the reserve components referred to 
     in paragraph (2) in order to ensure uniformity and 
     consistency in the provision of such care to such members.
       (2) The members of the reserve components referred to in 
     paragraph (1) are the following:
       (A) Members on active duty, including active duty for 
     training and annual training duty.
       (B) Members on full-time National Guard duty.
       (C) Members on inactive-duty training, regardless of 
     whether such members are in a pay or nonpay status.
       (b) Report.--Not later than 180 days after the date of the 
     enactment of this Act, the Secretary of Defense shall submit 
     to Congress a report on the study conducted under subsection 
     (a). The report shall include such recommendations (including 
     recommendations for legislation) as the Secretary considers 
     appropriate.

     SEC. 747. SENSE OF CONGRESS REGARDING TAX TREATMENT OF ARMED 
                   FORCES HEALTH PROFESSIONS SCHOLARSHIP AND 
                   FINANCIAL ASSISTANCE PROGRAM.

       It is the sense of Congress that the Secretary of Defense 
     should work with the Secretary of the Treasury to interpret 
     section 117 of the Internal Revenue Code of 1986 so that the 
     limitation on the amount of a qualified scholarship or 
     qualified tuition reduction excluded from gross income does 
     not apply to any portion of a scholarship or financial 
     assistance provided by the Secretary of Defense to a person 
     enrolled in the Armed Forces Health Professions Scholarship 
     and Financial Assistance program under subchapter I of 
     chapter 105 of title 10, United States Code.
  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
                                MATTERS

                   Subtitle A--Acquisition Management

Sec. 801. Procurement technical assistance programs.
Sec. 802. Extension of pilot mentor-protege program.
Sec. 803. Authority to waive certain requirements for defense 
              acquisition pilot programs.
Sec. 804. Modification of authority to carry out certain prototype 
              projects.
Sec. 805. Increase in threshold amounts for major systems.
Sec. 806. Revisions in information required to be included in selected 
              acquisition reports.
Sec. 807. Increase in simplified acquisition threshold for humanitarian 
              or peacekeeping operations.
Sec. 808. Expansion of audit reciprocity among Federal agencies to 
              include post-award audits.
Sec. 809. Excessive compensation of certain contractor personnel.
Sec. 810. Exception to prohibition on procurement of foreign goods.

                       Subtitle B--Other Matters

Sec. 821. Prohibition on release of contractor proposals under Freedom 
              of Information Act.
Sec. 822. Amendments relating to reports on procurement regulatory 
              activity.
Sec. 823. Amendment of multiyear limitation on contracts for 
              inspection, maintenance, and repair.
Sec. 824. Streamlined notice requirements to contractors and employees 
              regarding termination or substantial reduction in 
              contracts under major defense programs.
Sec. 825. Repeal of notice requirements for substantially or seriously 
              affected parties in downsizing efforts.
Sec. 826. Study of effectiveness of defense mergers.
Sec. 827. Annual report relating to Buy American Act.
Sec. 828. Foreign environmental technology.
Sec. 829. Assessment of national defense technology and industrial base 
              and dependency of base on supplies available only from 
              foreign countries.
Sec. 830. Expansion of report on implementation of automated 
              information systems to include additional matters 
              regarding information resources management.
Sec. 831. Year 2000 software conversion.
Sec. 832. Procurement from firms in industrial base for production of 
              small arms.
Sec. 833. Cable television franchise agreements.
                   Subtitle A--Acquisition Management

     SEC. 801. 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 1997 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. 802. 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 ``1995'' and 
     inserting in lieu thereof ``1998''; and
       (2) in paragraph (2), by striking out ``1996'' and 
     inserting in lieu thereof ``1999''.

     SEC. 803. AUTHORITY TO WAIVE CERTAIN REQUIREMENTS FOR DEFENSE 
                   ACQUISITION PILOT PROGRAMS.

       (a) Authority.--The Secretary of Defense may waive sections 
     2399, 2403, 2432, and 2433 of title 10, United States Code, 
     in accordance with this section for any defense acquisition 
     program designated by the Secretary of Defense for 
     participation in the defense acquisition pilot program 
     authorized by section 809 of the National Defense 
     Authorization Act for Fiscal Year 1991 (Public Law 101-510; 
     10 U.S.C. 2430 note).
       (b) Operational Test and Evaluation.--The Secretary of 
     Defense may waive the requirements for operational test and 
     evaluation for such a defense acquisition program as set 
     forth in section 2399 of title 10, United States Code, if the 
     Secretary--

[[Page H9041]]

       (1) determines (without delegation) that such test would be 
     unreasonably expensive or impractical;
       (2) develops a suitable alternate operational test program 
     for the system concerned;
       (3) describes in the test and evaluation master plan, as 
     approved by the Director of Operational Test and Evaluation, 
     the method of evaluation that will be used to evaluate 
     whether the system will be effective and suitable for combat; 
     and
       (4) submits to the congressional defense committees a 
     report containing the determination that was made under 
     paragraph (1), a justification for that determination, and a 
     copy of the plan required by paragraph (3).
       (c) Contractor Guarantees for Major Weapons Systems.--The 
     Secretary of Defense may waive the requirements of section 
     2403 of title 10, United States Code, for such a defense 
     acquisition program if an alternative guarantee is used that 
     ensures high quality weapons systems.
       (d) Selected Acquisition Reports.--The Secretary of Defense 
     may waive the requirements of sections 2432 and 2433 of title 
     10, United States Code, for such a defense acquisition 
     program if the Secretary provides a single annual report to 
     Congress at the end of each fiscal year that describes the 
     status of the program in relation to the baseline description 
     for the program established under section 2435 of such title.

     SEC. 804. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN 
                   PROTOTYPE PROJECTS.

       (a) Authorized Officials.--(1) Subsection (a) of section 
     845 of the National Defense Authorization Act for Fiscal Year 
     1994 (Public Law 103-160; 107 Stat. 1721; 10 U.S.C. 2371 
     note) is amended by inserting ``, the Secretary of a military 
     department, or any other official designated by the Secretary 
     of Defense'' after ``Agency''.
       (2) Subsection (b)(2) of such section is amended to read as 
     follows:
       ``(2) To the maximum extent practicable, competitive 
     procedures shall be used when entering into agreements to 
     carry out projects under subsection (a).''.
       (b) Extension of Authority.--Subsection (c) of such section 
     is amended by striking out ``terminate'' and all that follows 
     and inserting in lieu thereof ``terminate at the end of 
     September 30, 1999.''.
       (c) Conforming and Technical Amendments.--Section 845 of 
     such Act is further amended--
       (1) in subsection (b)--
       (A) in paragraph (1), by striking out ``(c)(2) and (c)(3) 
     of such section 2371, as redesignated by section 
     827(b)(1)(B),'' and inserting in lieu thereof ``(e)(2) and 
     (e)(3) of such section 2371''; and
       (B) in paragraph (2), by inserting after ``Director'' the 
     following: ``, Secretary, or other official''; and
       (2) in subsection (c), by striking out ``of the Director''.

     SEC. 805. INCREASE IN THRESHOLD AMOUNTS FOR MAJOR SYSTEMS.

       (a) Increase and Adjustment.--Chapter 137 of title 10, 
     United States Code, is amended--
       (1) in section 2302(5), by striking out the third sentence 
     and inserting in lieu thereof the following: ``A system shall 
     be considered a major system if (A) the conditions of section 
     2302d of this title are satisfied, or (B) the system is 
     designated a `major system' by the head of the agency 
     responsible for the system.''; and
       (2) by inserting after section 2302c the following:

     ``Sec. 2302d. Major system: definitional threshold amounts

       ``(a) Department of Defense Systems.--For purposes of 
     section 2302(5) of this title, a system for which the 
     Department of Defense is responsible shall be considered a 
     major system if--
       ``(1) the total expenditures for research, development, 
     test, and evaluation for the system are estimated to be more 
     than $115,000,000 (based on fiscal year 1990 constant 
     dollars); or
       ``(2) the eventual total expenditure for procurement of 
     more than $540,000,000 (based on fiscal year 1990 constant 
     dollars).
       ``(b) Civilian Agency Systems.--For purposes of section 
     2302(5) of this title, a system for which a civilian agency 
     is responsible shall be considered a major system if total 
     expenditures for the system are estimated to exceed the 
     greater of--
       ``(1) $750,000 (based on fiscal year 1980 constant 
     dollars); or
       ``(2) the dollar threshold for a `major system' established 
     by the agency pursuant to Office of Management and Budget 
     (OMB) Circular A-109, entitled `Major Systems Acquisitions'.
       ``(c) Adjustment Authority.--(1) The Secretary of Defense 
     may adjust the amounts and the base fiscal year provided in 
     subsection (a) on the basis of Department of Defense 
     escalation rates.
       ``(2) An amount, as adjusted under paragraph (1), that is 
     not evenly divisible by $5,000,000 shall be rounded to the 
     nearest multiple of $5,000,000. In the case of an amount that 
     is evenly divisible by $2,500,000 but not evenly divisible by 
     $5,000,000, the amount shall be rounded to the next higher 
     multiple of $5,000,000.
       ``(3) An adjustment under this subsection shall be 
     effective after the Secretary transmits to the Committee on 
     Armed Services of the Senate and the Committee on National 
     Security of the House of Representatives a written 
     notification of the adjustment.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 2302c the following:
``2302d. Major system: definitional threshold amounts.''.

     SEC. 806. REVISIONS IN INFORMATION REQUIRED TO BE INCLUDED IN 
                   SELECTED ACQUISITION REPORTS.

       Section 2432 of title 10, United States Code, is amended--
       (1) in subsection (c)(1)--
       (A) by striking out ``and'' at the end of subparagraph (B);
       (B) by redesignating subparagraph (C) as subparagraph (D); 
     and
       (C) by inserting after subparagraph (B) the following new 
     subparagraph (C):
       ``(C) the current procurement unit cost for each major 
     defense acquisition program included in the report and the 
     history of that cost from the date the program was first 
     included in a Selected Acquisition Report to the end of the 
     quarter for which the current report is submitted; and''; and
       (2) in subsection (e), by striking out paragraph (8) and 
     redesignating paragraph (9) as paragraph (8).

     SEC. 807. INCREASE IN SIMPLIFIED ACQUISITION THRESHOLD FOR 
                   HUMANITARIAN OR PEACEKEEPING OPERATIONS.

       (a) Armed Services Acquisitions.--Section 2302(7) of title 
     10, United States Code, is amended--
       (1) by inserting ``(A)'' after ``(7)'';
       (2) by inserting after ``contingency operation'' the 
     following: ``or a humanitarian or peacekeeping operation''; 
     and
       (3) by adding at the end the following:
       ``(B) In subparagraph (A), the term `humanitarian or 
     peacekeeping operation' means a military operation in support 
     of the provision of humanitarian or foreign disaster 
     assistance or in support of a peacekeeping operation under 
     chapter VI or VII of the Charter of the United Nations. The 
     term does not include routine training, force rotation, or 
     stationing.''.
       (b) Civilian Agency Acquisitions.--Section 309(d) of the 
     Federal Property and Administrative Services Act of 1949 (41 
     U.S.C. 259(d)) is amended--
       (1) by inserting ``(1)'' after ``(d)'';
       (2) by inserting after ``contingency operation'' the 
     following: ``or a humanitarian or peacekeeping operation''; 
     and
       (3) by adding at the end the following:
       ``(2) In paragraph (1):
       ``(A) The term `contingency operation' has the meaning 
     given such term in section 101(a) of title 10, United States 
     Code.
       ``(B) The term `humanitarian or peacekeeping operation' 
     means a military operation in support of the provision of 
     humanitarian or foreign disaster assistance or in support of 
     a peacekeeping operation under chapter VI or VII of the 
     Charter of the United Nations. The term does not include 
     routine training, force rotation, or stationing.''.

     SEC. 808. EXPANSION OF AUDIT RECIPROCITY AMONG FEDERAL 
                   AGENCIES TO INCLUDE POST-AWARD AUDITS.

       (a) Armed Services Acquisitions.--Subsection (d) of section 
     2313 of title 10, United States Code, is amended to read as 
     follows:
       ``(d) Limitation on Audits Relating to Indirect Costs.--The 
     head of an agency may not perform an audit of indirect costs 
     under a contract, subcontract, or modification before or 
     after entering into the contract, subcontract, or 
     modification in any case in which the contracting officer 
     determines that the objectives of the audit can reasonably be 
     met by accepting the results of an audit that was conducted 
     by any other department or agency of the Federal Government 
     within one year preceding the date of the contracting 
     officer's determination.''.
       (b) Civilian Agency Acquisitions.--Subsection (d) of 
     section 304C of the Federal Property and Administrative 
     Services Act of 1949 (41 U.S.C. 254d) is amended to read as 
     follows:
       ``(d) Limitation on Audits Relating to Indirect Costs.--An 
     executive agency may not perform an audit of indirect costs 
     under a contract, subcontract, or modification before or 
     after entering into the contract, subcontract, or 
     modification in any case in which the contracting officer 
     determines that the objectives of the audit can reasonably be 
     met by accepting the results of an audit that was conducted 
     by any other department or agency of the Federal Government 
     within one year preceding the date of the contracting 
     officer's determination.''.
       (c) Guidelines for Acceptance of Audits by State and Local 
     Governments Receiving Federal Assistance.--The Director of 
     the Office and Management and Budget shall issue guidelines 
     to ensure that an audit of indirect costs performed by the 
     Federal Government is accepted by State and local governments 
     that receive Federal funds under contracts, grants, or other 
     Federal assistance programs.

     SEC. 809. COMPENSATION OF CERTAIN CONTRACTOR PERSONNEL.

       (a) Armed Services Procurements.--(1) During fiscal year 
     1997, the head of an agency shall treat the costs described 
     in paragraph (2) as not allowable under a covered contract, 
     in the same manner as costs listed in section 2324(e)(1) of 
     title 10, United States Code.
       (2) The costs covered by paragraph (1) are costs of 
     compensation paid with respect to services of any one officer 
     to the extent that the total amount of the compensation paid 
     in a fiscal year exceeds $250,000.
       (b) Civilian Agency Procurements.--(1) During fiscal year 
     1997, an executive agency shall treat the costs described in 
     paragraph

[[Page H9042]]

     (2) as not allowable under a covered contract, in the same 
     manner as costs listed in section 306(e)(1) of the Federal 
     Property and Administrative Services Act of 1949 (41 U.S.C. 
     256(e)(1)).
       (2) The costs covered by paragraph (1) are costs of 
     compensation paid with respect to services of any one officer 
     to the extent that the total amount of the compensation paid 
     in a fiscal year exceeds $250,000.
       (c) Definitions.--In this section:
       (1) The term ``head of an agency'' has the meaning provided 
     in section 2302 of title 10, United States Code.
       (2) The term ``executive agency'' has the meaning provided 
     in section 3 of the Federal Property and Administrative 
     Services Act of 1949 (40 U.S.C. 472).
       (3) The term ``covered contract''--
       (A) with respect to procurements subject to chapter 137 of 
     title 10, United States Code, has the meaning provided by 
     section 2324(l) of such title; and
       (B) with respect to procurements subject to title III of 
     the Federal Property and Administrative Services Act of 1949 
     (41 U.S.C. 251 et seq.), has the meaning provided by section 
     306(l) of such Act (41 U.S.C. 256(l)).
       (4) The term ``compensation'' means--
       (A) the total amount of wages as defined in section 3401(a) 
     of the Internal Revenue Code of 1986 for the year concerned; 
     and
       (B) the total amount of elective deferrals (within the 
     meaning of section 402(g)(3) of such Code) for the year 
     concerned.
       (5) The term ``officer'' means a person who is determined 
     to be in a senior management position as established by 
     regulation.
       (d) Review.--The Administrator for Federal Procurement 
     Policy, in consultation with the Secretary of Defense, shall 
     conduct a comprehensive review of the levels of compensation 
     received by senior executives of corporations performing a 
     significant amount of business with the Federal Government in 
     order to determine the appropriate cost allowability policy 
     in this area. Such a review should include the following:
       (1) In consultation with the Secretary of the Treasury, an 
     examination of the appropriate definition and treatment of 
     compensation, including deferred compensation.
       (2) An examination of the appropriate definition of senior 
     executive positions and any other positions that should be 
     covered under the cost allowability policy.
       (3) An examination of how to apply the cost allowability 
     policy to individual contracts and aggregations of contracts 
     within a corporation.
       (4) Any other matter related to the cost allowability of 
     executive compensation that the Administrator considers 
     appropriate.
       (e) Legislative Proposal.--Not later than March 1, 1997, 
     the President shall submit to Congress a legislative proposal 
     incorporating the conclusions reached by the review conducted 
     under subsection (d) and establishing a statutory Government 
     standard on the cost allowability of executive compensation.

     SEC. 810. EXCEPTION TO PROHIBITION ON PROCUREMENT OF FOREIGN 
                   GOODS.

       Section 2534(d)(3) of title 10, United States Code, is 
     amended by inserting ``or would impede the reciprocal 
     procurement of defense items under a memorandum of 
     understanding providing for reciprocal procurement of defense 
     items that is entered into under section 2531 of this 
     title,'' after ``a foreign country,''.
                       Subtitle B--Other Matters

     SEC. 821. PROHIBITION ON RELEASE OF CONTRACTOR PROPOSALS 
                   UNDER FREEDOM OF INFORMATION ACT.

       (a) Armed Services Acquisitions.--Section 2305 of title 10, 
     United States Code, is amended by adding at the end the 
     following new subsection:
       ``(g) Prohibition on Release of Contractor Proposals.--(1) 
     Except as provided in paragraph (2), a proposal in the 
     possession or control of the Department of Defense may not be 
     made available to any person under section 552 of title 5.
       ``(2) Paragraph (1) does not apply to any proposal that is 
     set forth or incorporated by reference in a contract entered 
     into between the Department and the contractor that submitted 
     the proposal.
       ``(3) In this subsection, the term `proposal' means any 
     proposal, including a technical, management, or cost 
     proposal, submitted by a contractor in response to the 
     requirements of a solicitation for a competitive proposal.''.
       (b) Civilian Agency Acquisitions.--Section 303B of the 
     Federal Property and Administrative Services Act of 1949 (41 
     U.S.C. 253b) is amended by adding at the end the following 
     new subsection:
       ``(m) Prohibition on Release of Contractor Proposals.--(1) 
     Except as provided in paragraph (2), a proposal in the 
     possession or control of an executive agency may not be made 
     available to any person under section 552 of title 5, United 
     States Code.
       ``(2) Paragraph (1) does not apply to any proposal that is 
     set forth or incorporated by reference in a contract entered 
     into between the agency and the contractor that submitted the 
     proposal.
       ``(3) In this subsection, the term `proposal' means any 
     proposal, including a technical, management, or cost 
     proposal, submitted by a contractor in response to the 
     requirements of a solicitation for a competitive proposal.''.

     SEC. 822. AMENDMENTS RELATING TO REPORTS ON PROCUREMENT 
                   REGULATORY ACTIVITY.

       Subsection (g) of section 25 of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 421) is amended--
       (1) in paragraph (1)--
       (A) by striking out ``within 6 months after the date of 
     enactment of this section and every 6 months thereafter'' and 
     inserting in lieu thereof ``every 12 months''; and
       (B) by inserting ``and'' after the semicolon at the end;
       (2) in paragraph (2)(H), by striking out ``; and'' and 
     inserting in lieu thereof a period; and
       (3) by striking out paragraph (3).

     SEC. 823. AMENDMENT OF MULTIYEAR LIMITATION ON CONTRACTS FOR 
                   INSPECTION, MAINTENANCE, AND REPAIR.

       Paragraph (14) of section 210(a) of the Federal Property 
     and Administrative Services Act of 1949 (40 U.S.C. 490(a)) is 
     amended by striking out ``for periods not exceeding three 
     years'' and inserting in lieu thereof ``for periods not 
     exceeding five years''.

     SEC. 824. STREAMLINED NOTICE REQUIREMENTS TO CONTRACTORS AND 
                   EMPLOYEES REGARDING TERMINATION OR SUBSTANTIAL 
                   REDUCTION IN CONTRACTS UNDER MAJOR DEFENSE 
                   PROGRAMS.

       (a) Elimination of Unnecessary Requirements.--Section 4471 
     of the Defense Conversion, Reinvestment, and Transition 
     Assistance Act of 1992 (division D of Public Law 102-484; 10 
     U.S.C. 2501 note) is amended--
       (1) by striking out subsection (a);
       (2) by striking out subsection (f), except paragraph (4);
       (3) by redesignating subsections (b), (c), (d), (e), and 
     (g) as subsections (a), (b), (c), (d), and (f), respectively; 
     and
       (4) by redesignating such paragraph (4) as subsection (e).
       (b) Notice to Contractors.--Subsection (a) of such section, 
     as redesignated by subsection (a)(3), is amended by striking 
     out paragraphs (1) and (2) and inserting in lieu thereof the 
     following:
       ``(1) shall identify each contract (if any) under major 
     defense programs of the Department of Defense that will be 
     terminated or substantially reduced as a result of the 
     funding levels provided in that Act; and
       ``(2) shall ensure that notice of the termination of, or 
     substantial reduction in, the funding of the contract is 
     provided--
       ``(A) directly to the prime contractor under the contract; 
     and
       ``(B) directly to the Secretary of Labor.''.
       (c) Notice to Subcontractors.--Subsection (b) of such 
     section, as redesignated by subsection (a)(3), is amended--
       (1) by striking out ``As soon as'' and all that follows 
     through ``prime contractor shall--'' in the matter preceding 
     paragraph (1) and inserting in lieu thereof ``Not later than 
     60 days after the date on which the prime contractor for a 
     contract under a major defense program receives notice under 
     subsection (a), the prime contractor shall--'';
       (2) in paragraph (1)--
       (A) by striking out ``for that program under a contract'' 
     and inserting in lieu thereof ``under that prime contract for 
     subcontracts''; and
       (B) by striking out ``for the program''; and
       (3) in paragraph (2)(A), by striking out ``for the program 
     under a contract'' and inserting in lieu thereof ``for 
     subcontracts''.
       (d) Notice to Employees and State Dislocated Worker Unit.--
     Subsection (c) of such section, as redesignated by subsection 
     (a)(3), is amended by striking out ``under subsection 
     (a)(1)'' and all that follows through ``a defense program,'' 
     in the matter preceding paragraph (1) and inserting in lieu 
     thereof ``under subsection (a),''.
       (e) Cross References and Conforming Amendments.--(1) 
     Subsection (d) of such section, as redesignated by subsection 
     (a)(3), is amended--
       (A) by striking out ``a major defense program provided 
     under subsection (d)(1)'' and inserting in lieu thereof ``a 
     defense contract provided under subsection (c)(1)''; and
       (B) by striking out ``the program'' and inserting in lieu 
     thereof ``the contract''.
       (2) Subsection (e) of such section, as redesignated by 
     subsection (a)(4), is amended--
       (A) by striking out ``eligibility'' and inserting in lieu 
     thereof ``Eligibility''; and
       (B) by striking out ``under paragraph (3)'' and inserting 
     in lieu thereof ``or cancellation of the termination of, or 
     substantial reduction in, contract funding''.
       (3) Subsection (f) of such section, as redesignated by 
     subsection (a)(3), is amended in paragraph (2)--
       (A) by inserting ``a defense contract under'' before ``a 
     major defense program''; and
       (B) by striking out ``contracts under the program'' and 
     inserting in lieu thereof ``the funds obligated by the 
     contract''.

     SEC. 825. REPEAL OF NOTICE REQUIREMENTS FOR SUBSTANTIALLY OR 
                   SERIOUSLY AFFECTED PARTIES IN DOWNSIZING 
                   EFFORTS.

       Sections 4101 and 4201 of the National Defense 
     Authorization Act for Fiscal Year 1991 (Public Law 101-510; 
     104 Stat. 1850, 1851; 10 U.S.C. 2391 note) are repealed.

     SEC. 826. STUDY OF EFFECTIVENESS OF DEFENSE MERGERS.

       (a) Study.--The Secretary of Defense shall conduct a study 
     on mergers and acquisitions in the defense sector. The study 
     shall address the following:
       (1) The effectiveness of defense mergers and acquisitions 
     in eliminating excess capacity within the defense industry.
       (2) The degree of change in the dependence by defense 
     contractors on defense-related Federal contracts within their 
     overall business after mergers.

[[Page H9043]]

       (3) The effect on defense industry employment resulting 
     from defense mergers and acquisitions occurring during the 
     three years preceding the date of the enactment of this Act.
       (4) The effect on competition for defense contracts.
       (b) Report.--Not later than six months after the date of 
     the enactment of this Act, the Secretary of Defense shall 
     submit to Congress a report on the results of the study 
     conducted under subsection (a).

     SEC. 827. ANNUAL REPORT RELATING TO BUY AMERICAN ACT.

       The Secretary of Defense shall submit to Congress, not 
     later than 120 days after the end of each fiscal year, a 
     report on the amount of purchases by the Department of 
     Defense from foreign entities in that fiscal year. Such 
     report shall separately indicate the dollar value of items 
     for which the Buy American Act (41 U.S.C. 10a et seq.) was 
     waived pursuant to any of the following:
       (1) Any reciprocal defense procurement memorandum of 
     understanding described in section 849(c)(2) of Public Law 
     103-160 (41 U.S.C. 10b-2 note).
       (2) The Trade Agreements Act of 1979 (19 U.S.C. 2501 et 
     seq.)
       (3) Any international agreement to which the United States 
     is a party.

     SEC. 828. FOREIGN ENVIRONMENTAL TECHNOLOGY.

       Subsection (b) of section 2536 of title 10, United States 
     Code, is amended to read as follows:
       ``(b) Waiver Authority.--(1) The Secretary concerned may 
     waive the application of subsection (a) to a contract award 
     if--
       ``(A) the Secretary concerned determines that the waiver is 
     essential to the national security interests of the United 
     States; or
       ``(B) in the case of a contract awarded for environmental 
     restoration, remediation, or waste management at a Department 
     of Defense or Department of Energy facility--
       ``(i) the Secretary concerned determines that the waiver 
     will advance the environmental restoration, remediation, or 
     waste management objectives of the department concerned and 
     will not harm the national security interests of the United 
     States; and
       ``(ii) the entity to which the contract is awarded is 
     controlled by a foreign government with which the Secretary 
     concerned is authorized to exchange Restricted Data under 
     section 144 c. of the Atomic Energy Act of 1954 (42 U.S.C. 
     2164(c)).
       ``(2) The Secretary concerned shall notify Congress of any 
     decision to grant a waiver under paragraph (1)(B) with 
     respect to a contract. The contract may be awarded only after 
     the end of the 45-day period beginning on the date the 
     notification is received by the committees.''.

     SEC. 829. ASSESSMENT OF NATIONAL DEFENSE TECHNOLOGY AND 
                   INDUSTRIAL BASE AND DEPENDENCY OF BASE ON 
                   SUPPLIES AVAILABLE ONLY FROM FOREIGN COUNTRIES.

       (a) National Security Objectives for National Technology 
     and Industrial Base.--Section 2501(a) of title 10, United 
     States Code, is amended by adding at the end the following:
       ``(5) Providing for the development, manufacture, and 
     supply of items and technologies critical to the production 
     and sustainment of advanced military weapon systems within 
     the national technology and industrial base.''.
       (b) National Defense Program for Analysis of the Technology 
     and Industrial Base.--Section 2503 of title 10, United States 
     Code, is amended--
       (1) in subsection (a)--
       (A) by striking out ``(1) The Secretary of Defense, in 
     consultation with the National Defense Technology and 
     Industrial Base Council,'' in paragraph (1) and inserting in 
     lieu thereof ``The Secretary of Defense''; and
       (B) by striking out paragraphs (2), (3), and (4); and
       (2) in subsection (c)(3)(A)--
       (A) by striking out ``the National Defense Technology and 
     Industrial Base Council in'' and inserting in lieu thereof 
     ``the Secretary of Defense for''; and
       (B) by striking out ``and the periodic plans required by 
     section 2506 of this title''.
       (c) Periodic Defense Capability Assessments, Including 
     Foreign Dependency.--(1) Section 2505 of title 10, United 
     States Code, is amended to read as follows:

     ``Sec. 2505. National technology and industrial base: 
       periodic defense capability assessments

       ``(a) Periodic Assessment.--Each fiscal year, the Secretary 
     of Defense shall prepare selected assessments of the 
     capability of the national technology and industrial base to 
     attain the national security objectives set forth in section 
     2501(a) of this title. The Secretary of Defense shall prepare 
     such assessments in consultation with the Secretary of 
     Commerce and the Secretary of Energy.
       ``(b) Assessment Process.--The Secretary of Defense shall 
     ensure that technology and industrial capability 
     assessments--
       ``(1) describe sectors or capabilities, their underlying 
     infrastructure and processes;
       ``(2) analyze present and projected financial performance 
     of industries supporting the sectors or capabilities in the 
     assessment; and
       ``(3) identify technological and industrial capabilities 
     and processes for which there is potential for the national 
     industrial and technology base not to be able to support the 
     achievement of national security objectives.
       ``(c) Assessment of Extent of Dependency on Foreign Source 
     Items.--Each assessment under subsection (a) shall include a 
     separate discussion and presentation regarding the extent to 
     which the national technology and industrial base is 
     dependent on items for which the source of supply, 
     manufacture, or technology is outside of the United States 
     and Canada and for which there is no immediately available 
     source in the United States or Canada. The discussion and 
     presentation regarding foreign dependency shall--
       ``(1) identify cases that pose an unacceptable risk of 
     foreign dependency, as determined by the Secretary; and
       ``(2) present actions being taken or proposed to be taken 
     to remedy the risk posed by the cases identified under 
     paragraph (1), including efforts to develop a domestic source 
     for the item in question.
       ``(d) Integrated Process.--The Secretary of Defense shall 
     ensure that consideration of the technology and industrial 
     base assessments is integrated into the overall budget, 
     acquisition, and logistics support decision processes of the 
     Department of Defense.''.
       (2) Section 2502(b) of title 10, United States Code, is 
     amended--
       (A) by striking out ``the following responsibilities:'' and 
     all that follows through ``effective cooperation'' and 
     inserting in lieu thereof ``the responsibility to ensure 
     effective cooperation''; and
       (B) by striking out paragraph (2); and
       (3) by redesignating subparagraphs (A), (B), and (C) as 
     paragraphs (1), (2), and (3), respectively, and adjusting the 
     margin of such paragraphs two ems to the left.
       (d) Repeal of Requirement for Periodic Defense Capability 
     Plan; Development of Policy Guidance.--Section 2506 of title 
     10, United States Code, is amended to read as follows:

     ``Sec. 2506. Department of Defense technology and industrial 
       base policy guidance

       ``(a) Departmental Guidance.--The Secretary of Defense 
     shall prescribe departmental guidance for the attainment of 
     each of the national security objectives set forth in section 
     2501(a) of this title. Such guidance shall provide for 
     technological and industrial capability considerations to be 
     integrated into the budget allocation, weapons acquisition, 
     and logistics support decision processes.
       ``(b) Report to Congress.--The Secretary of Defense shall 
     report on the implementation of the departmental guidance in 
     the annual report to Congress submitted pursuant to section 
     2504 of this title.''.
       (e) Annual Report to Congress.--Subchapter II of chapter 
     148 of title 10, United States Code, is amended by inserting 
     after section 2503 the following new section:

     ``Sec. 2504. Annual report to Congress

       ``The Secretary of Defense shall transmit to the Committee 
     on Armed Services of the Senate and the Committee on National 
     Security of the House of Representatives by March 1 of each 
     year a report which shall include the following information:
       ``(1) A description of the departmental guidance prepared 
     pursuant to section 2506 of this title.
       ``(2) A description of the methods and analyses being 
     undertaken by the Department of Defense alone or in 
     cooperation with other Federal agencies, to identify and 
     address concerns regarding technological and industrial 
     capabilities of the national technology and industrial base.
       ``(3) A description of the assessments prepared pursuant to 
     section 2505 of this title and other analyses used in 
     developing the budget submission of the Department of Defense 
     for the next fiscal year.
       ``(4) Identification of each program designed to sustain 
     specific essential technological and industrial capabilities 
     and processes of the national technology and industrial 
     base.''.
       (f) Repeal of Requirement To Coordinate the Encouragement 
     of Technology Transfer With the Council.--Subsection 2514(c) 
     of title 10, United States Code, is amended by striking out 
     paragraph (5).
       (g) Clerical Amendments.--(1) The table of sections at the 
     beginning of subchapter II of chapter 148 of title 10, United 
     States Code, is amended by inserting after the item relating 
     to section 2503 the following new item:
``2504. Annual report to Congress.''.
       (2) Such table of sections is further amended by striking 
     out the item relating to section 2506 and inserting in lieu 
     thereof the following new item:
``2506. Department of Defense technology and industrial base policy 
              guidance.''.
       (h) Repeal of Superseded and Executed Law.--Sections 4218, 
     4219, and 4220 of the National Defense Authorization Act for 
     Fiscal Year 1993 (Public Law 102-484; 10 U.S.C. 2505 note and 
     2506 note) are repealed.

     SEC. 830. EXPANSION OF REPORT ON IMPLEMENTATION OF AUTOMATED 
                   INFORMATION SYSTEMS TO INCLUDE ADDITIONAL 
                   MATTERS REGARDING INFORMATION RESOURCES 
                   MANAGEMENT.

       (a) Expanded Report.--The Secretary of Defense shall 
     include in the report submitted in 1997 under section 381(f) 
     of the National Defense Authorization Act for Fiscal Year 
     1995 (Public Law 103-337; 10 U.S.C. 113 note) a discussion of 
     the following matters relating to information resources 
     management:
       (1) The progress made in implementing the Information 
     Technology Management Reform Act of 1996 (division E of 
     Public Law

[[Page H9044]]

     104-106; 110 Stat. 679; 40 U.S.C. 1401 et seq.) and the 
     amendments made by that Act.
       (2) The progress made in implementing the strategy for the 
     development or modernization of automated information systems 
     for the Department of Defense, as required by section 366 of 
     the National Defense Authorization Act for Fiscal Year 1996 
     (Public Law 104-106; 110 Stat. 275; 10 U.S.C. 113 note).
       (3) Plans of the Department of Defense for establishing an 
     integrated framework for management of information resources 
     within the department.
       (b) Specific Elements of Report.--The presentation of 
     matters under subsection (a) shall specifically include a 
     discussion of the following:
       (1) The status of the implementation of performance 
     measures.
       (2) The specific actions being taken to link the proposed 
     performance measures to the planning, programming, and 
     budgeting system of the Department of Defense and to the 
     life-cycle management processes of the department.
       (3) The results of pilot program testing of proposed 
     performance measures.
       (4) The additional training necessary for the 
     implementation of performance-based information management.
       (5) The department-wide actions that are necessary to 
     comply with the requirements of the following provisions of 
     law:
       (A) The amendments made by the Government Performance and 
     Results Act of 1993 (Public Law 103-62; 107 Stat. 285).
       (B) The Information Technology Management Reform Act of 
     1996 (division E of Public Law 104-106; 110 Stat. 679; 40 
     U.S.C. 1401 et seq.) and the amendments made by that Act.
       (C) Title V of the Federal Acquisition Streamlining Act of 
     1994 (Public Law 103-355; 108 Stat. 3349) and the amendments 
     made by that title.
       (D) The Chief Financial Officers Act of 1990 (Public Law 
     101-576; 104 Stat. 2838) and the amendments made by that Act.

     SEC. 831. YEAR 2000 SOFTWARE CONVERSION.

       (a) Year 2000 Software Conversion.--The Secretary of 
     Defense shall ensure that, as soon as practicable, all 
     information technology acquired by the Department of Defense 
     pursuant to contracts entered into after September 30, 1996, 
     has the capabilities to process date and date-related data in 
     2000.
       (b) Assessment.--The Secretary, acting through the chief 
     information officers within the department (as designated 
     pursuant to section 3506 of title 44, United States Code), 
     shall assess all information technology within the Department 
     of Defense to determine the extent to which such technology 
     has the capabilities to operate effectively.
       (c) Plan.--Not later than January 1, 1997, the Secretary 
     shall submit to Congress a detailed plan for eliminating any 
     deficiencies identified pursuant to subsection (b). The plan 
     shall include--
       (1) a list of affected major systems;
       (2) a description of how the deficiencies could affect the 
     national security of the United States; and
       (3) an estimate and prioritization of the resources that 
     are necessary to eliminate the deficiencies.

     SEC. 832. PROCUREMENT FROM FIRMS IN INDUSTRIAL BASE FOR 
                   PRODUCTION OF SMALL ARMS.

       (a) Requirement.--Chapter 146 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 2473. Procurements from the small arms production 
       industrial base

       ``(a) Authority To Limit Procurements To Certain Sources.--
     To the extent that the Secretary of Defense determines 
     necessary to preserve the small arms production industrial 
     base, the Secretary may require that any procurement of 
     property or services described in subsection (b) for the 
     Department of Defense be made only from a firm in the small 
     arms production industrial base.
       ``(b) Covered Property and Services.--Subsection (a) 
     applies to the following:
       ``(1) Repair parts for small arms.
       ``(2) Modifications of parts to improve small arms used by 
     the armed forces.
       ``(c) Small Arms Production Industrial Base.--In this 
     section, the term `small arms production industrial base' 
     means the firms comprising the small arms production 
     industrial base, as described in the plan entitled 
     `Preservation of Critical Elements of the Small Arms 
     Industrial Base', dated January 8, 1994, that was prepared by 
     an independent assessment panel of the Army Science Board.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:
``2473. Procurements from the small arms production industrial base.''.

     SEC. 833. CABLE TELEVISION FRANCHISE AGREEMENTS.

       Based on the advisory opinion from the United States Court 
     of Federal Claims, In the Matter of the Department of Defense 
     Cable Television Franchise Agreements, National Defense 
     Authorization Act for Fiscal Year 1996, Section 823, No. 96-
     133X (July 11, 1996)--
       (1) cable television franchise agreements for the 
     construction, installation, or capital improvement of cable 
     systems at military installations shall be considered 
     contracts for purposes of the Federal Acquisition Regulation;
       (2) cable television operators are entitled to recovery of 
     their investments at such installations to the extent 
     authorized in part 49 of the Federal Acquisition Regulation; 
     and
       (3) the appropriate official of the Department of Defense 
     shall promptly issue a written notice of the termination for 
     the convenience of the Government of the contracts described 
     in such advisory opinion and commence settlement negotiations 
     pursuant to the requirements of part 49 of the Federal 
     Acquisition Regulation.
      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

                      Subtitle A--General Matters

Sec. 901. Repeal of previously enacted reduction in number of statutory 
              positions in Office of the Secretary of Defense.
Sec. 902. Additional required reduction in defense acquisition 
              workforce.
Sec. 903. Reduction of personnel assigned to Office of the Secretary of 
              Defense.
Sec. 904. Report on military department headquarters staffs.
Sec. 905. Matters to be considered in next assessment of current 
              missions, responsibilities, and force structure of the 
              unified combatant commands.
Sec. 906. Transfer of authority to control transportation systems in 
              time of war.
Sec. 907. Codification of requirements relating to continued operation 
              of the Uniformed Services University of the Health 
              Sciences.
Sec. 908. Joint Requirements Oversight Council.
Sec. 909. Membership of the Ammunition Storage Board.
Sec. 910. Removal of Secretary of the Army from membership on the 
              Foreign Trade Zone Board.
Sec. 911. Composition of aircraft accident investigation boards.
Sec. 912. Mission of the White House Communications Agency.

                   Subtitle B--Force Structure Review

Sec. 921. Short title.
Sec. 922. Findings.
Sec. 923. Quadrennial Defense Review.
Sec. 924. National Defense Panel.
Sec. 925. Postponement of deadlines.
Sec. 926. Definitions.
                      Subtitle A--General Matters

     SEC. 901. REPEAL OF PREVIOUSLY ENACTED REDUCTION IN NUMBER OF 
                   STATUTORY POSITIONS IN OFFICE OF THE SECRETARY 
                   OF DEFENSE.

       Section 903 of the National Defense Authorization Act for 
     Fiscal Year 1996 (Public Law 104-106; 110 Stat. 401) is 
     repealed.

     SEC. 902. ADDITIONAL REQUIRED REDUCTION IN DEFENSE 
                   ACQUISITION WORKFORCE.

       (a) Additional Reductions for Fiscal Year 1997.--Section 
     906(d) of the National Defense Authorization Act for Fiscal 
     Year 1996 (Public Law 104-106; 110 Stat. 405) is amended in 
     paragraph (1) by striking out ``positions during fiscal year 
     1996'' and all that follows and inserting in lieu thereof 
     ``so that--
       ``(A) the total number of defense acquisition personnel as 
     of October 1, 1996, is less than the baseline number by at 
     least 15,000; and
       ``(B) the total number of defense acquisition personnel as 
     of October 1, 1997, is less than the baseline number by at 
     least 30,000.''.
       (b) Baseline Number.--Such section is further amended by 
     adding at the end the following new paragraph:
       ``(3) For purposes of this subsection, the term `baseline 
     number' means the total number of defense acquisition 
     personnel as of October 1, 1995.''.

     SEC. 903. REDUCTION OF PERSONNEL ASSIGNED TO OFFICE OF THE 
                   SECRETARY OF DEFENSE.

       (a) Permanent Limitation on OSD Personnel.--Effective 
     October 1, 1999, the number of OSD personnel may not exceed 
     75 percent of the baseline number.
       (b) Phased Reduction.--The number of OSD personnel--
       (1) as of October 1, 1997, may not exceed 85 percent of the 
     baseline number; and
       (2) as of October 1, 1998, may not exceed 80 percent of the 
     baseline number.
       (c) Baseline Number.--For purposes of this section, the 
     term ``baseline number'' means the number of OSD personnel as 
     of October 1, 1994.
       (d) OSD Personnel Defined.--For purposes of this section, 
     the term ``OSD personnel'' means military and civilian 
     personnel of the Department of Defense who are assigned to, 
     or employed in, functions in the Office of the Secretary of 
     Defense (including Direct Support Activities of that Office 
     and the Washington Headquarters Services of the Department of 
     Defense).
       (e) Limitation on Reassignment of Functions.--In carrying 
     out reductions in the number of personnel assigned to, or 
     employed in, the Office of the Secretary of Defense in order 
     to comply with this section, the Secretary of Defense may not 
     reassign functions solely in order to evade the requirements 
     contained in this section.
       (f) Flexibility.--If the Secretary of Defense determines, 
     and certifies to Congress, that the limitation in subsection 
     (b) with respect to any fiscal year would adversely affect 
     United States national security, the Secretary may waive the 
     limitation under that subsection with respect to that fiscal 
     year. If the Secretary of Defense determines, and certifies 
     to Congress, that the limitation in subsection (a) during 
     fiscal year 1999 would adversely affect United States 
     national security, the Secretary may waive the

[[Page H9045]]

     limitation under that subsection with respect to that fiscal 
     year. The authority under this subsection may be used only 
     once, with respect to a single fiscal year.
       (g) Repeal of Prior Requirement.--Section 901(d) of the 
     National Defense Authorization Act for Fiscal Year 1996 
     (Public Law 104-106; 110 Stat. 401) is repealed.

     SEC. 904. REPORT ON MILITARY DEPARTMENT HEADQUARTERS STAFFS.

       (a) Review by Secretary of Defense.--The Secretary of 
     Defense shall conduct a review of the size, mission, 
     organization, and functions of the military department 
     headquarters staffs. This review shall include the following:
       (1) An assessment on the adequacy of the present 
     organization structure to efficiently and effectively support 
     the mission of the military departments.
       (2) An assessment of options to reduce the number of 
     personnel assigned to the military department headquarters 
     staffs.
       (3) An assessment of the extent of unnecessary duplication 
     of functions between the Office of the Secretary of Defense 
     and the military department headquarters staffs.
       (4) An assessment of the possible benefits that could be 
     derived from further functional consolidation between the 
     civilian secretariat of the military departments and the 
     staffs of the military service chiefs.
       (5) An assessment of the possible benefits that could be 
     derived from reducing the number of civilian officers in the 
     military departments who are appointed by and with the advice 
     and consent of the Senate.
       (b) Report.--Not later than March 1, 1997, the Secretary of 
     Defense shall submit to the congressional defense committees 
     a report containing--
       (1) the findings and conclusions of the Secretary resulting 
     from the review under subsection (a); and
       (2) a plan for implementing resulting recommendations, 
     including proposals for legislation (with supporting 
     rationale) that would be required as a result of the review.
       (c) Reduction in Total Number of Personnel Assigned.--In 
     developing the plan under subsection (b)(2), the Secretary 
     shall make every effort to provide for significant reductions 
     in the overall number of military and civilian personnel 
     assigned to or serving in the military department 
     headquarters staffs.
       (d) Military Department Headquarters Staffs Defined.--For 
     the purposes of this section, the term ``military department 
     headquarters staffs'' means the offices, organizations, and 
     other elements of the Department of Defense comprising the 
     following:
       (1) The Office of the Secretary of the Army.
       (2) The Army Staff.
       (3) The Office of the Secretary of the Air Force.
       (4) The Air Staff.
       (5) The Office of the Secretary of the Navy.
       (6) The Office of the Chief of Naval Operations.
       (7) Headquarters, Marine Corps.

     SEC. 905. MATTERS TO BE CONSIDERED IN NEXT ASSESSMENT OF 
                   CURRENT MISSIONS, RESPONSIBILITIES, AND FORCE 
                   STRUCTURE OF THE UNIFIED COMBATANT COMMANDS.

       The Chairman of the Joint Chiefs of Staff shall consider, 
     as part of the next periodic review by the Chairman of the 
     missions, responsibilities, and force structure of the 
     unified combatant commands pursuant to section 161(b) of 
     title 10, United States Code, the following matters:
       (1) Whether there exists an adequate distribution of 
     threats, mission requirements, and responsibilities for 
     geographic areas among the regional unified combatant 
     commands.
       (2) Whether reductions in the overall force structure of 
     the Armed Forces permit the United States to better execute 
     its warfighting plans through fewer or differently configured 
     unified combatant commands, including--
       (A) a total of five or fewer commands, all of which are 
     regional;
       (B) a total of three commands consisting of an eastward-
     oriented command, a westward-oriented command, and a central 
     command;
       (C) a purely functional command structure, involving (for 
     example) a first theater command, a second theater command, a 
     logistics command, a special contingencies command, and a 
     strategic command; or
       (D) any other command structure or configuration the 
     Chairman finds appropriate.
       (3) Whether any missions, staff, facilities, equipment, 
     training programs, or other assets or activities of the 
     unified combatant commands are redundant.
       (4) Whether warfighting requirements are adequate to 
     justify the current functional commands.
       (5) Whether the exclusion of certain nations from the Areas 
     of Responsibility of the unified combatant commands presents 
     difficulties with respect to the achievement of United States 
     national security objectives in those areas.
       (6) Whether the current geographic boundary between the 
     United States Central Command and the United States European 
     Command through the Middle East could create command 
     conflicts in the context of a major regional conflict in the 
     Middle East region.

     SEC. 906. TRANSFER OF AUTHORITY TO CONTROL TRANSPORTATION 
                   SYSTEMS IN TIME OF WAR.

       (a) Authority of Secretary of Defense.--Section 4742 of 
     title 10, United States Code, is amended by striking out 
     ``Secretary of the Army'' and inserting in lieu thereof 
     ``Secretary of Defense''.
       (b) Transfer of Section.--Such section, as amended by 
     subsection (a), is transferred to the end of chapter 157 of 
     such title and is redesignated as section 2644.
       (c) Conforming Repeal.--Section 9742 of such title is 
     repealed.
       (d) Clerical Amendments.--(1) The table of sections at the 
     beginning of chapter 157 of such title is amended by adding 
     at the end the following new item:
``2644. Control of transportation systems in time of war.''.
       (2) The table of sections at the beginning of chapter 447 
     of such title is amended by striking out the item relating to 
     section 4742.
       (3) The table of sections at the beginning of chapter 947 
     of such title is amended by striking out the item relating to 
     section 9742.

     SEC. 907. CODIFICATION OF REQUIREMENTS RELATING TO CONTINUED 
                   OPERATION OF THE UNIFORMED SERVICES UNIVERSITY 
                   OF THE HEALTH SCIENCES.

       (a) Codification of Existing Law.--(1) Chapter 104 of title 
     10, United States Code, is amended by inserting after section 
     2112 the following new section:

     ``Sec. 2112a. Continued operation of University

       ``(a) Closure Prohibited.--The University may not be 
     closed.
       ``(b) Personnel Strength.--During the five-year period 
     beginning on October 1, 1996, the personnel staffing levels 
     for the University may not be reduced below the personnel 
     staffing levels for the University as of October 1, 1993.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     2112 the following new item:
``2112a. Continued operation of University.''.
       (b) Repeal of Superseded Law.--(1) Section 922 of the 
     National Defense Authorization Act for Fiscal Year 1995 
     (Public Law 103-337; 108 Stat. 2829; 10 U.S.C. 2112 note) is 
     amended by striking out subsection (a).
       (2) Section 1071 of the National Defense Authorization Act 
     for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 445; 10 
     U.S.C. 2112 note) is amended by striking out subsection (b).

     SEC. 908. JOINT REQUIREMENTS OVERSIGHT COUNCIL.

       Section 181 of title 10, United States Code, as added 
     effective January 31, 1997, is amended by adding at the end 
     the following new subsection:
       ``(d) Availability of Oversight Information to 
     Congressional Defense Committees.--(1) The Secretary of 
     Defense shall ensure that, in the case of a recommendation by 
     the Chairman to the Secretary that is approved by the 
     Secretary, oversight information with respect to such 
     recommendation that is produced as a result of the activities 
     of the Joint Requirements Oversight Council is made available 
     in a timely fashion to the congressional defense committees.
       ``(2) In this subsection:
       ``(A) The term `oversight information' means information 
     and materials comprising analysis and justification that are 
     prepared to support a recommendation that is made to, and 
     approved by, the Secretary of Defense.
       ``(B) The term `congressional defense committees' means--
       ``(i) the Committee on Armed Services and the Committee on 
     Appropriations of the Senate; and
       ``(ii) the Committee on National Security and the Committee 
     on Appropriations of the House of Representatives.''.

     SEC. 909. MEMBERSHIP OF THE AMMUNITION STORAGE BOARD.

       Section 172(a) of title 10, United States Code, is amended 
     by striking out ``a joint board of officers selected by 
     them'' and inserting in lieu thereof ``a joint board selected 
     by them composed of officers, civilian officers and employees 
     of the Department of Defense, or both''.

     SEC. 910. REMOVAL OF SECRETARY OF THE ARMY FROM MEMBERSHIP ON 
                   THE FOREIGN TRADE ZONE BOARD.

       The first section of the Act of June 18, 1934 (Public Law 
     Numbered 397, Seventy-third Congress; 48 Stat. 998) (19 
     U.S.C. 81a), popularly known as the ``Foreign Trade Zones 
     Act'', is amended--
       (1) in subsection (b), by striking out ``the Secretary of 
     the Treasury, and the Secretary of War'' and inserting in 
     lieu thereof ``and the Secretary of the Treasury''; and
       (2) in subsection (c), by striking out ``Alaska, Hawaii,''.

     SEC. 911. COMPOSITION OF AIRCRAFT ACCIDENT INVESTIGATION 
                   BOARDS.

       (a) Selection of Board Members.--(1) Chapter 134 of title 
     10, United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 2255. Aircraft accident investigation boards: 
       composition requirements

       ``(a) Required Membership of Boards.--Whenever the 
     Secretary of a military department convenes an aircraft 
     accident investigation board to conduct an accident 
     investigation (as described in section 2254(a)(2) of this 
     title) with respect to a Class A accident involving an 
     aircraft under the jurisdiction of the Secretary, the 
     Secretary shall select the membership of the board so that--
       ``(1) a majority of the members (or in the case of a board 
     consisting of a single member, the member) is selected from 
     units other than the mishap unit or a unit subordinate to the 
     mishap unit; and
       ``(2) in the case of a board consisting of more than one 
     member, at least one member of the board is a member of the 
     armed forces

[[Page H9046]]

     or an officer or an employee of the Department of Defense who 
     possesses knowledge and expertise relevant to aircraft 
     accident investigations.
       ``(b) Exception.--(1) The Secretary of the military 
     department concerned may waive the requirement of subsection 
     (a)(1) in the case of an aircraft accident if the Secretary 
     determines that--
       ``(A) it is not practicable to meet the requirement because 
     of--
       ``(i) the remote location of the aircraft accident;
       ``(ii) an urgent need to promptly begin the investigation; 
     or
       ``(iii) a lack of available persons outside of the mishap 
     unit who have adequate knowledge and expertise regarding the 
     type of aircraft involved in the accident; and
       ``(B) the objectivity and independence of the aircraft 
     accident investigation board will not be compromised.
       ``(2) The Secretary shall notify Congress of a waiver 
     exercised under this subsection and the reasons therefor.
       ``(c) Consultation Requirement.--In the case of an aircraft 
     accident investigation board consisting of a single member, 
     the member shall consult with a member of the armed forces or 
     an officer or an employee of the Department of Defense who 
     possesses knowledge and expertise relevant to aircraft 
     accident investigations.
       ``(d) Designation of Class A Accidents.--Not later than 60 
     days after an aircraft accident involving an aircraft under 
     the jurisdiction of the Secretary of a military department, 
     the Secretary shall determine whether the aircraft accident 
     should be designated as a Class A accident for purposes of 
     this section.
       ``(e) Definitions.--In this section:
       ``(1) The term `Class A accident' means an accident 
     involving an aircraft that results in--
       ``(A) the loss of life or permanent disability;
       ``(B) damages to the aircraft, other property, or a 
     combination of both, in an amount in excess of the amount 
     specified by the Secretary of Defense for purposes of 
     determining Class A accidents; or
       ``(C) the destruction of the aircraft.
       ``(2) The term `mishap unit', with respect to an aircraft 
     accident investigation, means the unit of the armed forces 
     (at the squadron or battalion level or equivalent) to which 
     was assigned the flight crew of the aircraft that sustained 
     the accident that is the subject of the investigation.''.
       (2) The table of sections at the beginning of subchapter II 
     of such chapter is amended by adding at the end the following 
     new item:
``2255. Aircraft accident investigation boards: composition 
              requirements.''.
       (b) Effective Date.--Section 2255 of title 10, United 
     States Code, as added by subsection (a), shall apply with 
     respect to any aircraft accident investigation board convened 
     by the Secretary of a military department after the end of 
     the six-month period beginning on the date of the enactment 
     of this Act.

     SEC. 912. MISSION OF THE WHITE HOUSE COMMUNICATIONS AGENCY.

       (a) Telecommunications Support.--The Secretary of Defense 
     shall ensure that the activities of the White House 
     Communications Agency in providing support services on a 
     nonreimbursable basis for the President from funds 
     appropriated for the Department of Defense for any fiscal 
     year are limited to the provision of telecommunications 
     support to the President and Vice President and to related 
     elements (as defined in regulations of that agency and 
     specified by the President with respect to particular 
     individuals within those related elements).
       (b) Other Support.--Support services other than 
     telecommunications support services described in subsection 
     (a) may be provided by the Department of Defense for the 
     President through the White House Communications Agency on a 
     reimbursable basis.
       (c) White House Communications Agency.--For purposes of 
     this section, the term ``White House Communications Agency'' 
     means the element of the Department of Defense within the 
     Defense Communications Agency that is known on the date of 
     the enactment of this Act as the White House Communications 
     Agency and includes any successor agency.
       (d) Report on Issues Raised by DOD Inspector General Review 
     of White House Communications Agency.--Not later than October 
     1, 1996, or 30 days after the date of the enactment of this 
     Act, whichever is later, the Secretary of Defense shall 
     submit to Congress a report setting forth the actions taken 
     by the Secretary to address the issues raised by the report 
     of the Department of Defense Inspector General reviewing the 
     mission of the White House Communications Agency.
       (e) Quarterly Reports During Fiscal Year 1997.--Not later 
     than 30 days after the end of each quarter of fiscal year 
     1997, the Secretary of Defense shall submit to Congress a 
     report describing the support services other than 
     telecommunications support services described in subsection 
     (a) that were provided during the preceding quarter by the 
     Department of Defense for the President through the White 
     House Communications Agency.
       (f) Effective Date.--This section takes effect on October 
     1, 1997, and applies to funds appropriated for the Department 
     of Defense for any fiscal year after fiscal year 1997.
                   Subtitle B--Force Structure Review

     SEC. 921. SHORT TITLE.

       This subtitle may be cited as the ``Military Force 
     Structure Review Act of 1996''.

     SEC. 922. FINDINGS.

       Congress makes the following findings:
       (1) Since the collapse of the Soviet Union in 1991, the 
     United States has conducted two substantial assessments of 
     the force structure of the Armed Forces necessary to meet 
     United States defense requirements.
       (2) The assessment by the Bush Administration (known as the 
     ``Base Force'' assessment) and the assessment by the Clinton 
     Administration (known as the ``Bottom-Up Review'') were 
     intended to reassess the force structure of the Armed Forces 
     in light of the changing realities of the post-Cold War 
     world.
       (3) Both assessments served an important purpose in 
     focusing attention on the need to reevaluate the military 
     posture of the United States, but the pace of global change 
     necessitates a new, comprehensive assessment of the defense 
     strategy of the United States and the force structure of the 
     Armed Forces required to meet the threats to the United 
     States in the twenty-first century.
       (4) The Bottom-Up Review has been criticized on several 
     points, including--
       (A) the assumptions underlying the strategy of planning to 
     fight and win two nearly simultaneous major regional 
     conflicts;
       (B) the force levels recommended to carry out that 
     strategy; and
       (C) the funding proposed for such recommended force levels.
       (5) In response to the recommendations of the Commission on 
     Roles and Missions of the Armed Forces, the Secretary of 
     Defense endorsed the concept of conducting a quadrennial 
     review of the defense program at the beginning of each newly 
     elected Presidential administration, and the Department 
     intends to complete the first such review in 1997.
       (6) The review is to involve a comprehensive examination of 
     defense strategy, the force structure of the active, guard, 
     and reserve components, force modernization plans, 
     infrastructure, and other elements of the defense program and 
     policies in order to determine and express the defense 
     strategy of the United States and to establish a revised 
     defense program through the year 2005.
       (7) In order to ensure that the force structure of the 
     Armed Forces is adequate to meet the challenges to the 
     national security interests of the United States in the 
     twenty-first century, to assist the Secretary of Defense in 
     conducting the review referred to in paragraph (5), and to 
     assess the appropriate force structure of the Armed Forces 
     through the year 2010 and beyond (if practicable), it is 
     important to provide for the conduct of an independent, 
     nonpartisan review of the force structure that is more 
     comprehensive than prior assessments of the force structure, 
     extends beyond the quadrennial defense review, and explores 
     innovative and forward-thinking ways of meeting such 
     challenges.

     SEC. 923. QUADRENNIAL DEFENSE REVIEW.

       (a) Requirement in 1997.--The Secretary of Defense, in 
     consultation with the Chairman of the Joint Chiefs of Staff, 
     shall complete in 1997 a review of the defense program of the 
     United States intended to satisfy the requirements for a 
     Quadrennial Defense Review as identified in the 
     recommendations of the Commission on Roles and Missions of 
     the Armed Forces. The review shall include a comprehensive 
     examination of the defense strategy, force structure, force 
     modernization plans, infrastructure, budget plan, and other 
     elements of the defense program and policies with a view 
     toward determining and expressing the defense strategy of the 
     United States and establishing a revised defense program 
     through the year 2005.
       (b) Involvement of National Defense Panel.--(1) The 
     Secretary shall apprise the National Defense Panel 
     established under section 924, on an ongoing basis, of the 
     work undertaken in the conduct of the review.
       (2) Not later than March 14, 1997, the Chairman of the 
     National Defense Panel shall submit to the Secretary the 
     Panel's assessment of work undertaken in the conduct of the 
     review as of that date and shall include in the assessment 
     the recommendations of the Panel for improvements to the 
     review, including recommendations for additional matters to 
     be covered in the review.
       (c) Assessments of Review.--Upon completion of the review, 
     the Chairman of the Joint Chiefs of Staff and the Chairman of 
     the National Defense Panel, on behalf of the Panel, shall 
     each prepare and submit to the Secretary such chairman's 
     assessment of the review in time for the inclusion of the 
     assessment in its entirety in the report under subsection 
     (d).
       (d) Report.--Not later than May 15, 1997, the Secretary 
     shall submit to the Committee on Armed Services of the Senate 
     and the Committee on National Security of the House of 
     Representatives a comprehensive report on the review. The 
     report shall include the following:
       (1) The results of the review, including a comprehensive 
     discussion of the defense strategy of the United States and 
     the force structure best suited to implement that strategy.
       (2) The threats examined for purposes of the review and the 
     scenarios developed in the examination of such threats.
       (3) The assumptions used in the review, including 
     assumptions relating to the cooperation of allies and 
     mission-sharing, levels of acceptable risk, warning times, 
     and intensity and duration of conflict.
       (4) The effect on the force structure of preparations for 
     and participation in peace

[[Page H9047]]

     operations and military operations other than war.
       (5) The effect on the force structure of the utilization by 
     the Armed Forces of technologies anticipated to be available 
     by the year 2005, including precision guided munitions, 
     stealth, night vision, digitization, and communications, and 
     the changes in doctrine and operational concepts that would 
     result from the utilization of such technologies.
       (6) The manpower and sustainment policies required under 
     the defense strategy to support engagement in conflicts 
     lasting more than 120 days.
       (7) The anticipated roles and missions of the reserve 
     components in the defense strategy and the strength, 
     capabilities, and equipment necessary to assure that the 
     reserve components can capably discharge those roles and 
     missions.
       (8) The appropriate ratio of combat forces to support 
     forces (commonly referred to as the ``tooth-to-tail'' ratio) 
     under the defense strategy, including, in particular, the 
     appropriate number and size of headquarter units and Defense 
     Agencies for that purpose.
       (9) The air-lift and sea-lift capabilities required to 
     support the defense strategy.
       (10) The forward presence, pre-positioning, and other 
     anticipatory deployments necessary under the defense strategy 
     for conflict deterrence and adequate military response to 
     anticipated conflicts.
       (11) The extent to which resources must be shifted among 
     two or more theaters under the defense strategy in the event 
     of conflict in such theaters.
       (12) The advisability of revisions to the Unified Command 
     Plan as a result of the defense strategy.
       (13) Any other matter the Secretary considers appropriate.

     SEC. 924. NATIONAL DEFENSE PANEL.

       (a) Establishment.--Not later than December 1, 1996, the 
     Secretary of Defense shall establish a nonpartisan, 
     independent panel to be known as the National Defense Panel 
     (in this section referred to as the ``Panel''). The Panel 
     shall have the duties set forth in this section.
       (b) Membership.--The Panel shall be composed of a chairman 
     and eight other individuals appointed by the Secretary, in 
     consultation with the chairman and ranking member of the 
     Committee on Armed Services of the Senate and the chairman 
     and ranking member of the Committee on National Security of 
     the House of Representatives, from among individuals in the 
     private sector who are recognized experts in matters relating 
     to the national security of the United States.
       (c) Duties.--The Panel shall--
       (1) conduct and submit to the Secretary the assessment of 
     the review under section 923 that is required by subsection 
     (b)(2) of that section;
       (2) conduct and submit to the Secretary the comprehensive 
     assessment of the review that is required by subsection (c) 
     of that section upon completion of the review; and
       (3) conduct the assessment of alternative force structures 
     for the Armed Forces required under subsection (d).
       (d) Alternative Force Structure Assessment.--(1) The Panel 
     shall submit to the Secretary an independent assessment of a 
     variety of possible force structures of the Armed Forces 
     through the year 2010 and beyond, including the force 
     structure identified in the report on the review under 
     section 923(d). The purpose of the assessment is to develop 
     proposals for an ``above the line'' force structure of the 
     Armed Forces and to provide the Secretary and Congress 
     recommendations regarding the optimal force structure to meet 
     anticipated threats to the national security of the United 
     States through the time covered by the assessment.
       (2) In conducting the assessment, the Panel shall examine a 
     variety of potential threats (including near-term threats and 
     long-term threats) to the national security interests of the 
     United States, including the following:
       (A) Conventional threats across a spectrum of conflicts.
       (B) The proliferation of weapons of mass destruction and 
     the means of delivering such weapons, and the illicit 
     transfer of technology relating to such weapons.
       (C) The vulnerability of United States technology to 
     nontraditional threats, including information warfare.
       (D) Domestic and international terrorism.
       (E) The emergence of a major potential adversary having 
     military capabilities similar to those of the United States.
       (F) Any other significant threat, or combination of 
     threats, identified by the Panel.
       (3) For purposes of the assessment, the Panel shall develop 
     a variety of scenarios requiring a military response by the 
     United States, including the following:
       (A) Scenarios developed in light of the threats examined 
     under paragraph (2).
       (B) Scenarios developed in light of a continuum of 
     conflicts ranging from a conflict of lesser magnitude than 
     the conflict described in the Bottom-Up Review to a conflict 
     of greater magnitude than the conflict so described.
       (4) As part of the assessment, the Panel shall also--
       (A) develop recommendations regarding a variety of force 
     structures for the Armed Forces that permit the forward 
     deployment of sufficient air, land, and sea-based forces to 
     provide an effective deterrent to conflict and to permit a 
     military response by the United States to the scenarios 
     developed under paragraph (3);
       (B) to the extent practicable, estimate the funding 
     required by fiscal year, in constant fiscal year 1997 
     dollars, to organize, equip, and support the forces 
     contemplated under the force structures assessed in the 
     assessment; and
       (C) comment on each of the matters also to be included by 
     the Secretary in the report required by section 923(d).
       (e) Report.--(1) Not later than December 1, 1997, the Panel 
     shall submit to the Secretary a report setting forth the 
     activities and the findings and recommendations of the Panel 
     under subsection (d), including any recommendations for 
     legislation that the Panel considers appropriate.
       (2) Not later than December 15, 1997, the Secretary shall, 
     after consultation with the Chairman of the Joint Chiefs of 
     Staff, submit to the committees referred to in subsection (b) 
     a copy of the report under paragraph (1), together with the 
     Secretary's comments on the report.
       (f) Information From Federal Agencies.--The Panel may 
     secure directly from the Department of Defense and any of its 
     components and from any other Federal department and agency 
     such information as the Panel considers necessary to carry 
     out its duties under this section. The head of the department 
     or agency concerned shall ensure that information requested 
     by the Panel under this subsection is promptly provided.
       (g) Personnel Matters.--(1) Each member of the Panel shall 
     be compensated at a rate equal to the daily equivalent of the 
     annual rate of basic pay prescribed for level IV of the 
     Executive Schedule under section 5315 of title 5, United 
     States Code, for each day (including travel time) during 
     which such member is engaged in the performance of the duties 
     of the Panel.
       (2) The members of the Panel shall be allowed travel 
     expenses, including per diem in lieu of subsistence, at rates 
     authorized for employees of agencies under subchapter I of 
     chapter 57 of title 5, United States Code, while away from 
     their homes or regular places of business in the performance 
     of services for the Panel.
       (3)(A) The chairman of the Panel may, without regard to the 
     civil service laws and regulations, appoint and terminate an 
     executive director, and a staff of not more than four 
     additional individuals, if the Panel determines that an 
     executive director and staff are necessary in order for the 
     Panel to perform its duties effectively. The employment of an 
     executive director shall be subject to confirmation by the 
     Panel.
       (B) The chairman may fix the compensation of the executive 
     director without regard to the provisions of chapter 51 and 
     subchapter III of chapter 53 of title 5, United States Code, 
     relating to classification of positions and General Schedule 
     pay rates, except that the rate of pay for the executive 
     director may not exceed the rate payable for level V of the 
     Executive Schedule under section 5316 of such title.
       (4) Any Federal Government employee may be detailed to the 
     Panel without reimbursement, and such detail shall be without 
     interruption or loss of civil service status or privilege. 
     The Secretary shall ensure that sufficient personnel are 
     detailed to the Panel to enable the Panel to carry out its 
     duties effectively.
       (5) To the maximum extent practicable, the members and 
     employees of the Panel shall travel on military aircraft, 
     military ships, military vehicles, or other military 
     conveyances when travel is necessary in the performance of a 
     duty of the Panel, except that no such aircraft, ship, 
     vehicle, or other conveyance may be scheduled primarily for 
     the transportation of any such member or employee when the 
     cost of commercial transportation is less expensive.
       (h) Administrative Provisions.--(1) The Panel may use the 
     United States mails and obtain printing and binding services 
     in the same manner and under the same conditions as other 
     departments and agencies of the Federal Government.
       (2) The Secretary shall furnish the Panel any 
     administrative and support services requested by the Panel.
       (3) The Panel may accept, use, and dispose of gifts or 
     donations of services or property.
       (i) Payment of Panel Expenses.--The compensation, travel 
     expenses, and per diem allowances of members and employees of 
     the Panel shall be paid out of funds available to the 
     Department of Defense for the payment of compensation, travel 
     allowances, and per diem allowances, respectively, of 
     civilian employees of the Department. The other expenses of 
     the Panel shall be paid out of funds available to the 
     Department for the payment of similar expenses incurred by 
     the Department.
       (j) Termination.--The Panel shall terminate 30 days after 
     the date on which the Panel submits its report to the 
     Secretary under subsection (e).

     SEC. 925. POSTPONEMENT OF DEADLINES.

       If the Presidential election in 1996 results in the 
     election of a new President, each deadline set forth in this 
     subtitle shall be postponed by three months.

     SEC. 926. DEFINITIONS.

       In this subtitle:
       (1) The term `` `above the line' force structure of the 
     Armed Forces'' means the force structure (including numbers, 
     strengths, and composition and major items of equipment) for 
     the Armed Forces at the following unit levels:
       (A) In the case of the Army, the division.
       (B) In the case of the Navy, the battle group.

[[Page H9048]]

       (C) In the case of the Air Force, the wing.
       (D) In the case of the Marine Corps, the expeditionary 
     force.
       (E) In the case of special operations forces of the Army, 
     Navy, or Air Force, the major operating unit.
       (F) In the case of the strategic forces, the ballistic 
     missile submarine fleet, the heavy bomber force, and the 
     intercontinental ballistic missile force.
       (2) The term ``Commission on Roles and Missions of the 
     Armed Forces'' means the Commission on Roles and Missions of 
     the Armed Forces established by subtitle E of title IX of the 
     National Defense Authorization Act for Fiscal Year 1994 
     (Public Law 103-160; 107 Stat. 1738; 10 U.S.C. 111 note).
       (3) The term ``military operation other than war'' means 
     any operation other than war that requires the utilization of 
     the military capabilities of the Armed Forces, including 
     peace operations, humanitarian assistance operations and 
     activities, counter-terrorism operations and activities, 
     disaster relief activities, and counter-drug operations and 
     activities.
       (4) The term ``peace operations'' means military operations 
     in support of diplomatic efforts to reach long-term political 
     settlements of conflicts and includes peacekeeping operations 
     and peace enforcement operations.
                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Incorporation of classified annex.
Sec. 1003. Authority for obligation of certain unauthorized fiscal year 
              1996 defense appropriations.
Sec. 1004. Authorization of prior emergency supplemental appropriations 
              for fiscal year 1996.
Sec. 1005. Format for budget requests for Navy/Marine Corps and Air 
              Force ammunition accounts.
Sec. 1006. Format for annual budget requests for Defense Airborne 
              Reconnaissance Program.
Sec. 1007. Limitation on use of Department of Defense funds transferred 
              to the Coast Guard.
Sec. 1008. Fisher House Trust Fund for the Department of the Navy.
Sec. 1009. Designation and liability of disbursing and certifying 
              officials for the Coast Guard.
Sec. 1010. Authority to suspend or terminate collection actions against 
              deceased members of the Coast Guard.
Sec. 1011. Department of Defense disbursing official check cashing and 
              exchange transactions.

                Subtitle B--Naval Vessels and Shipyards

Sec. 1021. Repeal of requirement for continuous applicability of 
              contracts for phased maintenance of AE class ships.
Sec. 1022. Funding for second and third maritime prepositioning ships 
              out of National Defense Sealift Fund.
Sec. 1023. Transfer of certain obsolete tugboats of the Navy.
Sec. 1024. Transfer of U.S.S. Drum to city of Vallejo, California.
Sec. 1025. Sense of Congress concerning USS LCS 102 (LSSL 102).

                  Subtitle C--Counter-Drug Activities

Sec. 1031. Authority to provide additional support for counter-drug 
              activities of Mexico.
Sec. 1032. Availability of funds for certain drug interdiction and 
              counter-drug activities.
Sec. 1033. Transfer of excess personal property to support law 
              enforcement activities.
Sec. 1034. Sale by Federal departments or agencies of chemicals used to 
              manufacture controlled substances.

                    Subtitle D--Reports and Studies

Sec. 1041. Annual report on Operation Provide Comfort and Operation 
              Enhanced Southern Watch.
Sec. 1042. Annual report on emerging operational concepts.
Sec. 1043. Report on Department of Defense military child care 
              programs.
Sec. 1044. Report on Department of Defense military youth programs.
Sec. 1045. Quarterly reports regarding coproduction agreements.
Sec. 1046. Report on witness interview procedures for Department of 
              Defense criminal investigations.
Sec. 1047. Report on military readiness requirements of the Armed 
              Forces.
Sec. 1048. Report on NATO enlargement.

         Subtitle E--Management of Armed Forces Retirement Home

Sec. 1051. Retirement Home Boards of Directors.
Sec. 1052. Acceptance of uncompensated services.
Sec. 1053. Disposal of tract of real property in the District of 
              Columbia.

                       Subtitle F--Other Matters

Sec. 1061. Policy on protection of national information infrastructure 
              against strategic attack.
Sec. 1062. Information systems security program.
Sec. 1063. Authority to accept services from foreign governments and 
              international organizations for defense purposes.
Sec. 1064. Prohibition on collection and release of detailed satellite 
              imagery relating to Israel.
Sec. 1065. George C. Marshall European Center for Strategic Security 
              Studies.
Sec. 1066. Authority to award to civilian participants in the defense 
              of Pearl Harbor the Congressional Medal previously 
              authorized only for military participants in the defense 
              of Pearl Harbor.
Sec. 1067. Assimilative crimes authority for traffic offenses on 
              military installations.
Sec. 1068. Uniform Code of Military Justice amendments.
Sec. 1069. Punishment of interstate stalking.
Sec. 1070. Participation of members, dependents, and other persons in 
              crime prevention efforts at installations.
Sec. 1071. Display of State flags at installations and facilities of 
              the Department of Defense.
Sec. 1072. Treatment of excess operational support airlift aircraft.
Sec. 1073. Correction to statutory references to certain Department of 
              Defense organizations.
Sec. 1074. Technical and clerical amendments.
Sec. 1075. Modification to third-party liability to United States for 
              tortious infliction of injury or disease on members of 
              the uniformed services.
Sec. 1076. Chemical Stockpile Emergency Preparedness Program.
Sec. 1077. Exemption from requirements applicable to savings 
              associations for certain savings institutions serving 
              military personnel.
Sec. 1078. Improvements to National Security Education Program.
Sec. 1079. Aviation and vessel war risk insurance.
Sec. 1080. Designation of memorial as National D-Day Memorial.
Sec. 1081. Sense of Congress regarding semiconductor trade agreement 
              between United States and Japan.
Sec. 1082. Agreements for exchange of defense personnel between the 
              United States and foreign countries.
Sec. 1083. Sense of Senate regarding Bosnia and Herzegovina.
Sec. 1084. Defense burdensharing.
                     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 1997 
     between any such authorizations for that fiscal year (or any 
     subdivisions thereof). Amounts of authorizations so 
     transferred shall be merged with and be available for the 
     same purposes as the authorization to which transferred.
       (2) The total amount of authorizations that the Secretary 
     of Defense may transfer under the authority of this section 
     may not exceed $2,000,000,000.
       (b) Limitations.--The authority provided by this section to 
     transfer authorizations--
       (1) may only be used to provide authority for items that 
     have a higher priority than the items from which authority is 
     transferred; and
       (2) may not be used to provide authority for an item that 
     has been denied authorization by Congress.
       (c) Effect on Authorization Amounts.--A transfer made from 
     one account to another under the authority of this section 
     shall be deemed to increase the amount authorized for the 
     account to which the amount is transferred by an amount equal 
     to the amount transferred.
       (d) Notice to Congress.--The Secretary shall promptly 
     notify Congress of each transfer made under subsection (a).

     SEC. 1002. INCORPORATION OF CLASSIFIED ANNEX.

       (a) Status of Classified Annex.--The Classified Annex 
     prepared by the committee of conference to accompany the 
     conference report on the bill H.R. 3230 of the One Hundred 
     Fourth Congress and transmitted to the President is hereby 
     incorporated into this Act.
       (b) Construction With Other Provisions of Act.--The amounts 
     specified in the Classified Annex are not in addition to 
     amounts authorized to be appropriated by other provisions of 
     this Act.
       (c) Limitation on Use of Funds.--Funds appropriated 
     pursuant to an authorization contained in this Act that are 
     made available for a program, project, or activity referred 
     to in the Classified Annex may only be expended for such 
     program, project, or activity in accordance with such terms, 
     conditions, limitations, restrictions, and requirements as 
     are set out for that program, project, or activity in the 
     Classified Annex.
       (d) Distribution of Classified Annex.--The President shall 
     provide for appropriate distribution of the Classified Annex, 
     or of appropriate portions of the annex, within the executive 
     branch of the Government.

     SEC. 1003. AUTHORITY FOR OBLIGATION OF CERTAIN UNAUTHORIZED 
                   FISCAL YEAR 1996 DEFENSE APPROPRIATIONS.

       (a) Authority.--The amounts described in subsection (b) may 
     be obligated and expended for programs, projects, and 
     activities

[[Page H9049]]

     of the Department of Defense in accordance with fiscal year 
     1996 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 1996 
     defense appropriations that are in excess of the amounts 
     provided for such programs, projects, and activities in 
     fiscal year 1996 defense authorizations.
       (c) Definitions.--For the purposes of this section:
       (1) Fiscal year 1996 defense appropriations.--The term 
     ``fiscal year 1996 defense appropriations'' means amounts 
     appropriated or otherwise made available to the Department of 
     Defense for fiscal year 1996 in the Department of Defense 
     Appropriations Act, 1996 (Public Law 104-61).
       (2) Fiscal year 1996 defense authorizations.--The term 
     ``fiscal year 1996 defense authorizations'' means amounts 
     authorized to be appropriated for the Department of Defense 
     for fiscal year 1996 in the National Defense Authorization 
     Act for Fiscal Year 1996 (Public Law 104-106).

     SEC. 1004. AUTHORIZATION OF PRIOR EMERGENCY SUPPLEMENTAL 
                   APPROPRIATIONS FOR FISCAL YEAR 1996.

       Amounts authorized to be appropriated to the Department of 
     Defense for fiscal year 1996 in the National Defense 
     Authorization Act for Fiscal Year 1996 (Public Law 104-106) 
     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 Omnibus Consolidated Rescissions and Appropriations Act 
     of 1996 (Public Law 104-134).

     SEC. 1005. FORMAT FOR BUDGET REQUESTS FOR NAVY/MARINE CORPS 
                   AND AIR FORCE AMMUNITION ACCOUNTS.

       Section 114 of title 10, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(f) In each budget submitted by the President to Congress 
     under section 1105 of title 31, amounts requested for 
     procurement of ammunition for the Navy and Marine Corps, and 
     for procurement of ammunition for the Air Force, shall be set 
     forth separately from other amounts requested for 
     procurement.''.

     SEC. 1006. FORMAT FOR ANNUAL BUDGET REQUESTS FOR DEFENSE 
                   AIRBORNE RECONNAISSANCE PROGRAM.

       (a) Separate Display Required.--The Secretary of Defense 
     shall ensure that in the budget justification documents for 
     any fiscal year there are set forth separately the amount 
     requested for research, development, test, and evaluation, 
     and the amount requested for procurement, for each program 
     area within the Defense Airborne Reconnaissance Program.
       (b) Program Areas Within Defense Airborne Reconnaissance 
     Program.--For purposes of subsection (a), the programs of the 
     Defense Airborne Reconnaissance Program shall be categorized 
     as being within one of the following areas:
       (1) Tactical unmanned aerial vehicles.
       (2) Endurance unmanned aerial vehicles.
       (3) Airborne reconnaissance systems.
       (4) Manned reconnaissance systems.
       (5) Distributed common ground systems.
       (6) Any additional program area established by the 
     Secretary of Defense.
       (c) Budget Justification Documents.--For purposes of 
     subsection (a), the term ``budget justification documents'' 
     means the supporting budget documentation submitted to the 
     congressional defense committees in support of the budget of 
     the Department of Defense for a fiscal year as included in 
     the budget of the President submitted under section 1105 of 
     title 31, United States Code, for that fiscal year.

     SEC. 1007. LIMITATION ON USE OF DEPARTMENT OF DEFENSE FUNDS 
                   TRANSFERRED TO THE COAST GUARD.

       (a) Limitation to National Security Functions.--Funds 
     appropriated to the Department of Defense for fiscal year 
     1997 that are transferred pursuant to law to the Coast Guard 
     may be used only for the performance of national security 
     functions of the Coast Guard in support of the Department of 
     Defense.
       (b) Certification Required.--Funds appropriated to the 
     Department of Defense for fiscal year 1997 may not be 
     transferred to the Coast Guard until the Secretary of Defense 
     and the Secretary of Transportation jointly certify to 
     Congress that the funds so transferred will be used only in 
     accordance with the limitation in subsection (a).
       (c) Periodic GAO Audits.--The Comptroller General of the 
     United States shall--
       (1) audit, from time to time, the use of funds transferred 
     to the Coast Guard from appropriations for the Department of 
     Defense for fiscal year 1997 in order to verify that those 
     funds are being used in accordance with the limitation in 
     subsection (a); and
       (2) notify the congressional defense committees of any use 
     of those funds that, in the judgment of the Comptroller 
     General, is a violation of that limitation.

     SEC. 1008. FISHER HOUSE TRUST FUND FOR THE DEPARTMENT OF THE 
                   NAVY.

       (a) Authority.--Section 2221 of title 10, United States 
     Code, is amended--
       (1) by adding at the end of subsection (a) the following:
       ``(3) The Fisher House Trust Fund, Department of the 
     Navy.'';
       (2) in subsection (c)--
       (A) by redesignating paragraph (3) as paragraph (4); and
       (B) by inserting after paragraph (2) the following new 
     paragraph (3):
       ``(3) Amounts in the Fisher House Trust Fund, Department of 
     the Navy, that are attributable to earnings or gains realized 
     from investments shall be available for the operation and 
     maintenance of Fisher houses that are located in proximity to 
     medical treatment facilities of the Navy.''; and
       (3) in subsection (d)(1), by striking out ``or the Air 
     Force'' and inserting in lieu thereof ``, the Air Force, or 
     the Navy''.
       (b) Corpus of Trust Funds.--The Secretary of the Navy shall 
     transfer to the Fisher House Trust Fund, Department of the 
     Navy, established by section 2221(a)(3) of title 10, United 
     States Code (as added by subsection (a)(1)), all amounts in 
     the accounts for Navy installations and other facilities 
     that, as of the date of the enactment of this Act, are 
     available for operation and maintenance of Fisher houses, as 
     defined in section 2221(d) of such title.
       (c) Conforming Amendments.--Section 1321 of title 31, 
     United States Code, is amended--
       (1) by adding at the end of subsection (a) the following:
       ``(94) Fisher House Trust Fund, Department of the Navy.''; 
     and
       (2) by adding at the end of subsection (b)(2) the 
     following:
       ``(D) Fisher House Trust Fund, Department of the Navy.''.

     SEC. 1009. DESIGNATION AND LIABILITY OF DISBURSING AND 
                   CERTIFYING OFFICIALS FOR THE COAST GUARD.

       (a) Disbursing Officials.--(1) Section 3321(c) of title 31, 
     United States Code, is amended by adding at the end the 
     following:
       ``(3) The Department of Transportation (with respect to 
     public money available for expenditure by the Coast Guard 
     when it is not operating as a service in the Navy).''.
       (2)(A) Chapter 17 of title 14, United States Code, is 
     amended by adding at the end the following new section:

     ``Sec. 673. Designation, powers, and accountability of deputy 
       disbursing officials

       ``(a)(1) Subject to paragraph (3), a disbursing official of 
     the Coast Guard may designate a deputy disbursing official--
       ``(A) to make payments as the agent of the disbursing 
     official;
       ``(B) to sign checks drawn on disbursing accounts of the 
     Secretary of the Treasury; and
       ``(C) to carry out other duties required under law.
       ``(2) The penalties for misconduct that apply to a 
     disbursing official apply to a deputy disbursing official 
     designated under this subsection.
       ``(3) A disbursing official may make a designation under 
     paragraph (1) only with the approval of the Secretary of 
     Transportation (when the Coast Guard is not operating as a 
     service in the Navy).
       ``(b)(1) If a disbursing official of the Coast Guard dies, 
     becomes disabled, or is separated from office, a deputy 
     disbursing official may continue the accounts and payments in 
     the name of the former disbursing official until the last day 
     of the second month after the month in which the death, 
     disability, or separation occurs. The accounts and payments 
     shall be allowed, audited, and settled as provided by law. 
     The Secretary of the Treasury shall honor checks signed in 
     the name of the former disbursing official in the same way as 
     if the former disbursing official had continued in office.
       ``(2) The deputy disbursing official, and not the former 
     disbursing official or the estate of the former disbursing 
     official, is liable for the actions of the deputy disbursing 
     official under this subsection.
       ``(c)(1) Except as provided in paragraph (2), this section 
     does not apply to the Coast Guard when section 2773 of title 
     10 applies to the Coast Guard by reason of the operation of 
     the Coast Guard as a service in the Navy.
       ``(2) A designation of a deputy disbursing official under 
     subsection (a) that is made while the Coast Guard is not 
     operating as a service in the Navy continues in effect for 
     purposes of section 2773 of title 10 while the Coast Guard 
     operates as a service in the Navy unless and until the 
     designation is terminated by the disbursing official who made 
     the designation or an official authorized to approve such a 
     designation under subsection (a)(3) of such section.''.
       (B) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:
``673. Designation, powers, and accountability of deputy disbursing 
              officials.''.
       (b) Designation of Members of the Armed Forces To Have 
     Authority To Certify Vouchers.--Section 3325(b) of title 31, 
     United States Code, is amended by striking out ``members of 
     the armed forces under the jurisdiction of the Secretary of 
     Defense may certify vouchers when authorized, in writing, by 
     the Secretary to do so'' and inserting in lieu thereof 
     ``members of the armed forces may certify vouchers when 
     authorized, in writing, by the Secretary of Defense or, in 
     the case of the Coast Guard when it is not operating as a 
     service in the Navy, by the Secretary of Transportation''.
       (c) Conforming Amendments.--(1) Section 1007(a) of title 
     37, United States Code, is amended by inserting after 
     ``Secretary of Defense'' the following: ``(or the Secretary 
     of Transportation, in the case of an officer of the Coast 
     Guard when the Coast Guard is not operating as a service in 
     the Navy)''.
       (2) Section 3527(b)(1) of title 31, United States Code, is 
     amended--

[[Page H9050]]

       (A) in subparagraph (A)(i), by inserting after ``Department 
     of Defense'' the following: ``(or the Secretary of 
     Transportation, in the case of a disbursing official of the 
     Coast Guard when the Coast Guard is not operating as a 
     service in the Navy)''; and
       (B) in subparagraph (B), by inserting after ``or the 
     Secretary of the appropriate military department'' the 
     following: ``(or the Secretary of Transportation, in the case 
     of a disbursing official of the Coast Guard when the Coast 
     Guard is not operating as a service in the Navy)''.

     SEC. 1010. AUTHORITY TO SUSPEND OR TERMINATE COLLECTION 
                   ACTIONS AGAINST DECEASED MEMBERS OF THE COAST 
                   GUARD.

       Section 3711(g) of title 31, United States Code, is 
     amended--
       (1) in paragraph (1), by striking out ``or Marine Corps'' 
     and inserting in lieu thereof ``Marine Corps, or Coast Guard 
     during a period when the Coast Guard is operating as a 
     service in the Navy'';
       (2) by redesignating paragraph (2) as paragraph (3); and
       (3) by inserting after paragraph (1) the following new 
     paragraph (2):
       ``(2) The Secretary of Transportation may suspend or 
     terminate an action by the Secretary under subsection (a) to 
     collect a claim against the estate of a person who died while 
     serving on active duty as a member of the Coast Guard if the 
     Secretary determines that, under the circumstances applicable 
     with respect to the deceased person, it is appropriate to do 
     so.''.

     SEC. 1011. DEPARTMENT OF DEFENSE DISBURSING OFFICIAL CHECK 
                   CASHING AND EXCHANGE TRANSACTIONS.

       Section 3342(b) of title 31, United States Code, is 
     amended--
       (1) by striking out the period at the end of paragraph (3) 
     and inserting in lieu thereof a semicolon;
       (2) by striking out ``and'' at the end of paragraph (5);
       (3) by striking out the period at the end of paragraph (6) 
     and inserting in lieu thereof ``; or''; and
       (4) by adding at the end the following new paragraph:
       ``(7) a Federal credit union (as defined in section 101(1) 
     of the Federal Credit Union Act (12 U.S.C. 1752(1)) that at 
     the request of the Secretary of Defense is operating on a 
     United States military installation in a foreign country, but 
     only if that country does not permit contractor-operated 
     military banking facilities to operate on such 
     installations.''.
                Subtitle B--Naval Vessels and Shipyards

     SEC. 1021. REPEAL OF REQUIREMENT FOR CONTINUOUS APPLICABILITY 
                   OF CONTRACTS FOR PHASED MAINTENANCE OF AE CLASS 
                   SHIPS.

       Section 1016 of the National Defense Authorization Act for 
     Fiscal Year 1996 (Public Law 104-106; 110 Stat. 425) is 
     repealed.

     SEC. 1022. FUNDING FOR SECOND AND THIRD MARITIME 
                   PREPOSITIONING SHIPS OUT OF NATIONAL DEFENSE 
                   SEALIFT FUND.

       (a) National Defense Sealift Fund.--To the extent provided 
     in appropriations Acts, funds in the National Defense Sealift 
     Fund may be obligated and expended for the purchase and 
     conversion, or construction, of a total of three ships for 
     the purpose of enhancing Marine Corps prepositioning ship 
     squadrons.
       (b) Authorization of Appropriations.--Of the amount 
     authorized to be appropriated under section 302(2), 
     $240,000,000 is authorized to be appropriated for the purpose 
     stated in subsection (a).

     SEC. 1023. TRANSFER OF CERTAIN OBSOLETE TUGBOATS OF THE NAVY.

       (a) Requirement To Transfer Vessels.--The Secretary of the 
     Navy shall transfer the six obsolete tugboats of the Navy 
     specified in subsection (b) to the Northeast Wisconsin 
     Railroad Transportation Commission, an instrumentality of the 
     State of Wisconsin, if the Secretary determines that the 
     tugboats are not needed for transfer, donation, or other 
     disposal under title II of the Federal Property and 
     Administrative Services Act of 1949 (40 U.S.C. 481 et seq.).
       (b) Vessels Covered.--The requirement in subsection (a) 
     applies to the six decommissioned Cherokee class tugboats, 
     listed as of the date of the enactment of this Act as being 
     surplus to the Navy, that are designated as ATF-105, ATF-110, 
     ATF-149, ATF-158, ATF-159, and ATF-160.
       (c) Condition Relating to Environmental Compliance.--The 
     Secretary shall require as a condition of the transfer of a 
     vessel under subsection (a) that use of the vessel by the 
     Commission not commence until the terms of any necessary 
     environmental compliance letter or agreement with respect to 
     that vessel have been complied with.
       (d) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions (including a 
     requirement that the transfer be at no cost to the 
     Government) in connection with the transfers required by 
     subsection (a) as the Secretary considers appropriate.

     SEC. 1024. TRANSFER OF U.S.S. DRUM TO CITY OF VALLEJO, 
                   CALIFORNIA.

       (a) Transfer.--The Secretary of the Navy shall transfer the 
     U.S.S. Drum (SSN-677) to the city of Vallejo, California, in 
     accordance with this section and upon satisfactory completion 
     of a ship donation application. Before making such transfer, 
     the Secretary of the Navy shall remove from the vessel the 
     reactor compartment and other classified and sensitive 
     military equipment.
       (b) Funding.--As provided in section 7306(c) of title 10, 
     United States Code, the transfer of the vessel authorized by 
     this section shall be made at no cost to the United States 
     (beyond the cost which the United States would otherwise 
     incur for dismantling and recycling of the vessel).
       (c) Applicable Law.--The transfer under this section shall 
     be subject to subsection (b) of section 7306 of title 10, 
     United States Code, but the provisions of subsection (d) of 
     such section shall not be applicable to such transfer.

     SEC. 1025. SENSE OF CONGRESS CONCERNING USS LCS 102 (LSSL 
                   102).

       It is the sense of Congress that the Secretary of Defense 
     should use existing authorities in law to seek the 
     expeditious return, upon completion of service, of the former 
     USS LCS 102 (LSSL 102) from the Government of Thailand in 
     order for the ship to be transferred to the United States 
     Shipbuilding Museum in Quincy, Massachusetts.
                  Subtitle C--Counter-Drug Activities

     SEC. 1031. AUTHORITY TO PROVIDE ADDITIONAL SUPPORT FOR 
                   COUNTER-DRUG ACTIVITIES OF MEXICO.

       (a) Authority To Provide Additional Support.--Subject to 
     subsection (e), during fiscal year 1997, the Secretary of 
     Defense may provide the Government of Mexico with the support 
     described in subsection (b) for the counter-drug activities 
     of the Government of Mexico. The support provided under the 
     authority of this subsection shall be in addition to support 
     provided to the Government of Mexico under any other 
     provision of law.
       (b) Types of Support.--The authority under subsection (a) 
     is limited to the provision of the following types of 
     support:
       (1) The transfer of non-lethal 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 maintenance and repair of equipment of the 
     Government of Mexico that is used for counter-drug 
     activities.
       (c) 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 under this section.
       (d) Funding.--Of the amount authorized to be appropriated 
     under section 301(19) for drug interdiction and counter-drug 
     activities, not more than $8,000,000 shall be available for 
     the provision of support under this section.
       (e) Limitations.--(1) The Secretary may not obligate or 
     expend funds to provide support under this section until 15 
     days after the date on which the Secretary submits to the 
     committees referred to in paragraph (3) the certification 
     described in paragraph (2).
       (2) The certification referred to in paragraph (1) is a 
     written certification of the following:
       (A) That the provision of support 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 the 
     Government of Mexico who have undergone a background check by 
     that government.
       (C) That the Government of Mexico 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 of Mexico 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 the Government of Mexico 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 of Mexico 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.

[[Page H9051]]

       (G) That the Government of Mexico 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)).
       (3) 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.

     SEC. 1032. AVAILABILITY OF FUNDS FOR CERTAIN DRUG 
                   INTERDICTION AND COUNTER-DRUG ACTIVITIES.

       (a) P-3B Aircraft.--Of the funds authorized to be 
     appropriated under section 301(19) for drug interdiction and 
     counter-drug activities, not more than $98,000,000 may be 
     used for the purpose of procuring or modifying two P-3B 
     aircraft for use by departments and agencies of the United 
     States outside the Department of Defense for drug 
     interdiction and counter-drug activities. However, funds may 
     not be obligated for such purpose until the Secretary of 
     Defense submits to the congressional defense committees a 
     certification that the procurement or modification of such 
     aircraft and the use of such aircraft by other departments or 
     agencies of the United States will significantly reduce the 
     level of support that would otherwise be required of E-3 
     AWACS aircraft as part of the drug interdiction and counter-
     drug mission of the Department of Defense.
       (b) Nonintrusive Inspection Devices.--Of the funds 
     authorized to be appropriated under section 301(19) for drug 
     interdiction and counter-drug activities, not more than 
     $10,000,000 may be used to procure three nonintrusive 
     inspection devices for use by departments and agencies of the 
     United States outside the Department of Defense for drug 
     interdiction and counter-drug activities.
       (c) Authority To Transfer Equipment.--The Secretary of 
     Defense may transfer to the head of any department or agency 
     of the United States outside the Department of Defense any 
     equipment procured or modified under this section with funds 
     referred to in this section.

     SEC. 1033. TRANSFER OF EXCESS PERSONAL PROPERTY TO SUPPORT 
                   LAW ENFORCEMENT ACTIVITIES.

       (a) Transfer Authority.--(1) Chapter 153 of title 10, 
     United States Code, is amended by inserting after section 
     2576 the following new section:

     ``Sec. 2576a. Excess personal property: sale or donation for 
       law enforcement activities

       ``(a) Transfer Authorized.--(1) Notwithstanding any other 
     provision of law and subject to subsection (b), the Secretary 
     of Defense may transfer to Federal and State agencies 
     personal property of the Department of Defense, including 
     small arms and ammunition, that the Secretary determines is--
       ``(A) suitable for use by the agencies in law enforcement 
     activities, including counter-drug and counter-terrorism 
     activities; and
       ``(B) excess to the needs of the Department of Defense.
       ``(2) The Secretary shall carry out this section in 
     consultation with the Attorney General and the Director of 
     National Drug Control Policy.
       ``(b) Conditions for Transfer.--The Secretary of Defense 
     may transfer personal property under this section only if--
       ``(1) the property is drawn from existing stocks of the 
     Department of Defense;
       ``(2) the recipient accepts the property on an as-is, 
     where-is basis;
       ``(3) the transfer is made without the expenditure of any 
     funds available to the Department of Defense for the 
     procurement of defense equipment; and
       ``(4) all costs incurred subsequent to the transfer of the 
     property are borne or reimbursed by the recipient.
       ``(c) Consideration.--Subject to subsection (b)(4), the 
     Secretary may transfer personal property under this section 
     without charge to the recipient agency.
       ``(d) Preference for Certain Transfers.--In considering 
     applications for the transfer of personal property under this 
     section, the Secretary shall give a preference to those 
     applications indicating that the transferred property will be 
     used in the counter-drug or counter-terrorism activities of 
     the recipient agency.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     2576 the following new item:
``2576a. Excess personal property: sale or donation for law enforcement 
              activities.''.
       (b) Conforming Amendments.--(1) Section 1208 of the 
     National Defense Authorization Act for Fiscal Years 1990 and 
     1991 (Public Law 101-189; 10 U.S.C. 372 note) is repealed.
       (2) Section 1005 of the National Defense Authorization Act 
     for Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1630) is 
     amended by striking out ``section 1208 of the National 
     Defense Authorization Act for Fiscal Years 1990 and 1991 (10 
     U.S.C. 372 note) and section 372'' and inserting in lieu 
     thereof ``sections 372 and 2576a''.

     SEC. 1034. SALE BY FEDERAL DEPARTMENTS OR AGENCIES OF 
                   CHEMICALS USED TO MANUFACTURE CONTROLLED 
                   SUBSTANCES.

       (a) DEA Certification.--The Controlled Substances Act is 
     amended by inserting after section 519 (21 U.S.C. 889) the 
     following new section:

     ``SEC. 520. REVIEW OF FEDERAL SALES OF CHEMICALS USABLE TO 
                   MANUFACTURE CONTROLLED SUBSTANCES.

       ``A Federal department or agency may not sell from the 
     stocks of the department or agency any chemical which, as 
     determined by the Administrator of the Drug Enforcement 
     Administration, could be used in the manufacture of a 
     controlled substance unless the Administrator certifies in 
     writing to the head of the department or agency that there is 
     no reasonable cause to believe that the sale of the chemical 
     would result in the illegal manufacture of a controlled 
     substance.''.
       (b) Clerical Amendment.--The table of contents of the 
     Comprehensive Drug Abuse Prevention and Control Act of 1970 
     (84 Stat. 1236) is amended by inserting after the item 
     relating to section 519 the following new item:
``Sec. 520. Review of Federal sales of chemicals usable to manufacture 
              controlled substances.''.
                    Subtitle D--Reports and Studies

     SEC. 1041. ANNUAL REPORT ON OPERATION PROVIDE COMFORT AND 
                   OPERATION ENHANCED SOUTHERN WATCH.

       (a) Annual Report.--Not later than March 1 of each year, 
     the Secretary of Defense shall submit to Congress a report on 
     Operation Provide Comfort and Operation Enhanced Southern 
     Watch.
       (b) Matters Relating to Operation Provide Comfort.--Each 
     report under subsection (a) shall include, with respect to 
     Operation Provide Comfort, the following:
       (1) A detailed presentation of the projected costs to be 
     incurred by the Department of Defense for that operation 
     during the fiscal year in which the report is submitted and 
     projected for the following fiscal year, together with a 
     discussion of missions and functions expected to be performed 
     by the Department as part of that operation during each of 
     those fiscal years.
       (2) A detailed presentation of the projected costs to be 
     incurred by other departments and agencies of the Federal 
     Government participating in or providing support to that 
     operation during each of those fiscal years.
       (3) A discussion of options being pursued to reduce the 
     involvement of the Department of Defense in those aspects of 
     that operation that are not directly related to the military 
     mission of the Department of Defense.
       (4) A discussion of the exit strategy for United States 
     involvement in, and support for, that operation.
       (5) A description of alternative approaches to 
     accomplishing the mission of that operation that are designed 
     to limit the scope and cost to the Department of Defense of 
     accomplishing that mission while maintaining mission success.
       (6) The contributions (both in-kind and actual) by other 
     nations to the costs of conducting that operation.
       (7) A detailed presentation of significant Iraqi military 
     activity (including specific violations of the no-fly zone) 
     determined to jeopardize the security of the Kurdish 
     population in northern Iraq.
       (c) Matters Relating to Operation Enhanced Southern 
     Watch.--Each report under subsection (a) shall include, with 
     respect to Operation Enhanced Southern Watch, the following:
       (1) The expected duration and annual costs of the various 
     elements of that operation.
       (2) The political and military objectives associated with 
     that operation.
       (3) The contributions (both in-kind and actual) by other 
     nations to the costs of conducting that operation.
       (4) A description of alternative approaches to 
     accomplishing the mission of that operation that are designed 
     to limit the scope and cost of accomplishing that mission 
     while maintaining mission success.
       (5) A comprehensive discussion of the political and 
     military objectives and initiatives that the Department of 
     Defense has pursued, and intends to pursue, in order to 
     reduce United States involvement in that operation.
       (6) A detailed presentation of significant Iraqi military 
     activity (including specific violations of the no-fly zone) 
     determined to jeopardize the security of the Shiite 
     population by air attack in southern Iraq or to jeopardize 
     the security of Kuwait.
       (d) Termination of Report Requirement.--The requirement 
     under subsection (a) shall cease to apply with respect to an 
     operation named in that subsection upon the termination of 
     United States involvement in that operation.
       (e) Definitions.--For purposes of this section:
       (1) Operation enhanced southern watch.--The term 
     ``Operation Enhanced Southern Watch'' means the operation of 
     the Department of Defense that as of October 30, 1995, is 
     designated as Operation Enhanced Southern Watch.
       (2) Operation provide comfort.--The term ``Operation 
     Provide Comfort'' means the operation of the Department of 
     Defense that as of October 30, 1995, is designated as 
     Operation Provide Comfort.

     SEC. 1042. ANNUAL REPORT ON EMERGING OPERATIONAL CONCEPTS.

       (a) Report Required.--Not later than March 1 of each year 
     through 2000, the Secretary of Defense shall submit to the 
     Committee on Armed Services of the Senate and the Committee 
     on National Security of the

[[Page H9052]]

     House of Representatives a report on emerging operational 
     concepts. Each such report shall be prepared by the Secretary 
     in consultation with the Chairman of the Joint Chiefs of 
     Staff.
       (b) Matters To Be Included.--Each such report shall contain 
     a description, for the year preceding the year in which the 
     report is submitted, of the following:
       (1) The process undertaken in the Department of Defense, 
     and in each of the Army, Navy, Air Force, and Marine Corps, 
     to define and develop doctrine, operational concepts, 
     organizational concepts, and acquisition strategies to 
     address--
       (A) the potential of emerging technologies for 
     significantly improving the operational effectiveness of the 
     Armed Forces;
       (B) changes in the international order that may necessitate 
     changes in the operational capabilities of the Armed Forces;
       (C) emerging capabilities of potential adversary states; 
     and
       (D) changes in defense budget projections.
       (2) The manner in which the processes described in 
     paragraph (1) are harmonized to ensure that there is a 
     sufficient consideration of the development of joint 
     doctrine, operational concepts, and acquisition strategies.
       (3) The manner in which the processes described in 
     paragraph (1) are coordinated through the Joint Requirements 
     Oversight Council and reflected in the planning, programming, 
     and budgeting process of the Department of Defense.

     SEC. 1043. REPORT ON DEPARTMENT OF DEFENSE MILITARY CHILD 
                   CARE PROGRAMS.

       (a) Findings.--Congress makes the following findings:
       (1) The Department of Defense should be congratulated on 
     the successful implementation of the Military Child Care Act 
     of 1989 (originally enacted as title XV of Public Law 101-189 
     and subsequently codified as subchapter II of chapter 88 of 
     title 10, United States Code).
       (2) The actions taken by the Department as a result of that 
     Act have dramatically improved the availability, 
     affordability, quality, and consistency of the child-care 
     services provided to members of the Armed Forces.
       (3) Child care is important to the readiness of members of 
     the Armed Forces since single parents and couples in military 
     service must have access to affordable child care of good 
     quality if they are to perform their jobs and respond 
     effectively to long work hours or deployments.
       (4) Child care is important to the retention of members of 
     the Armed Forces in military service because the 
     dissatisfaction of the families of such members with military 
     life is a primary reason for the departure of such members 
     from military service.
       (b) Sense of Congress Related to Military-Civilian Child-
     Care Partnership Programs.--It is the sense of Congress 
     that--
       (1) the civilian and military child-care communities, 
     Federal, State, and local agencies, and businesses and 
     communities involved in the provision of child-care services 
     could benefit from the development of partnerships to foster 
     an exchange of ideas, information, and materials relating to 
     their experiences with the provision of such services and to 
     encourage closer relationships between military installations 
     and the communities that support them;
       (2) such partnerships would be beneficial to all families 
     by helping providers of child-care services exchange ideas 
     about innovative ways to address barriers to the effective 
     provision of such services; and
       (3) there are many ways that such partnerships could be 
     developed, including--
       (A) cooperation between the directors and curriculum 
     specialists of military child development centers and 
     civilian child development centers in assisting such centers 
     in the accreditation process;
       (B) use of family support staff to conduct parent and 
     family workshops for new parents and parents with young 
     children in family housing on military installations and in 
     communities in the vicinity of such installations;
       (C) internships in Department of Defense child-care 
     programs for civilian child-care providers to broaden the 
     base of good-quality child-care services in communities in 
     the vicinity of military installations; and
       (D) attendance by civilian child-care providers at 
     Department child-care training classes on a space-available 
     basis.
       (c) Report.--Not later than June 30, 1997, the Secretary of 
     Defense shall submit to Congress a report on the status of 
     any partnerships and other initiatives undertaken by the 
     Department of Defense as described in subsection (b), 
     including recommendations for additional ways to improve the 
     child-care programs of the Department of Defense and to 
     improve such programs so as to benefit civilian child-care 
     providers in communities in the vicinity of military 
     installations.

     SEC. 1044. REPORT ON DEPARTMENT OF DEFENSE MILITARY YOUTH 
                   PROGRAMS.

       (a) Findings.--Congress makes the following findings:
       (1) Programs of the Department of Defense for youth who are 
     dependents of members of the Armed Forces have not received 
     the same level of attention and resources as have child care 
     programs of the Department since the passage of the Military 
     Child Care Act of 1989 (originally enacted as title XV of 
     Public Law 101-189 and subsequently codified as subchapter II 
     of chapter 88 of title 10, United States Code).
       (2) Older children deserve as much attention to their 
     developmental needs as do younger children.
       (3) The Department has started to direct more attention to 
     programs for youths who are dependents of members of the 
     Armed Forces by providing funds for the implementation of 20 
     model community programs to address the needs of such youths.
       (4) The lessons learned from such programs could apply to 
     civilian youth programs as well.
       (b) Sense of Congress Related to Military-Civilian Youth 
     Partnership Programs.--It is the sense of Congress that--
       (1) the Department of Defense, Federal, State, and local 
     agencies, and businesses and communities involved in 
     conducting youth programs could benefit from the development 
     of partnerships to foster an exchange of ideas, information, 
     and materials relating to such programs and to encourage 
     closer relationships between military installations and the 
     communities that support them;
       (2) such partnerships could be beneficial to all families 
     by helping the providers of services for youths exchange 
     ideas about innovative ways to address barriers to the 
     effective provision of such services; and
       (3) there are many ways that such partnerships could be 
     developed, including--
       (A) cooperation between the Department and Federal and 
     State educational agencies in exploring the use of public 
     school facilities for child care programs and youth programs 
     that are mutually beneficial to the Department and civilian 
     communities and complement programs of the Department carried 
     out at its facilities; and
       (B) improving youth programs that enable adolescents to 
     relate to new peer groups when families of members of the 
     Armed Forces are relocated.
       (c) Report.--Not later than June 30, 1997, the Secretary of 
     Defense shall submit to Congress a report on the status of 
     any partnerships and other initiatives undertaken by the 
     Department as described in subsection (b), including 
     recommendations for additional ways to improve the youth 
     programs of the Department of Defense and to improve such 
     programs so as to benefit communities in the vicinity of 
     military installations.

     SEC. 1045. QUARTERLY REPORTS REGARDING COPRODUCTION 
                   AGREEMENTS.

       (a) Quarterly Reports on Coproduction Agreements.--Section 
     36(a) of the Arms Export Control Act (22 U.S.C. 2776(a)) is 
     amended--
       (1) by striking out ``and'' at the end of paragraph (10);
       (2) by striking out the period at the end of paragraph (11) 
     and inserting in lieu thereof ``; and''; and
       (3) by inserting after paragraph (11) the following new 
     paragraph:
       ``(12) a report on all concluded government-to-government 
     agreements regarding foreign coproduction of defense articles 
     of United States origin and all other concluded agreements 
     involving coproduction or licensed production outside of the 
     United States of defense articles of United States origin 
     (including coproduction memoranda of understanding or 
     agreement) that have not been previously reported under this 
     subsection, which shall include--
       ``(A) the identity of the foreign countries, international 
     organizations, or foreign firms involved;
       ``(B) a description and the estimated value of the articles 
     authorized to be produced, and an estimate of the quantity of 
     the articles authorized to be produced;
       ``(C) a description of any restrictions on third party 
     transfers of the foreign-manufactured articles; and
       ``(D) if any such agreement does not provide for United 
     States access to and verification of quantities of articles 
     produced overseas and their disposition in the foreign 
     country, a description of alternative measures and controls 
     incorporated in the coproduction or licensing program to 
     ensure compliance with restrictions in the agreement on 
     production quantities and third party transfers.''.
       (b) Effective Date.--Paragraph (12) of section 36(a) of the 
     Arms Export Control Act, as added by subsection (a)(3), does 
     not apply with respect to an agreement described in such 
     paragraph entered into before the date of the enactment of 
     this Act.

     SEC. 1046. REPORT ON WITNESS INTERVIEW PROCEDURES FOR 
                   DEPARTMENT OF DEFENSE CRIMINAL INVESTIGATIONS.

       (a) Survey of Military Department Policies and Practices.--
     The Comptroller General of the United States shall conduct a 
     survey of the policies and practices of the Naval Criminal 
     Investigative Service with respect to the manner in which 
     interviews of suspects and witnesses are conducted in 
     connection with criminal investigations of allegations of 
     contractor fraud. The purpose of the survey shall be to 
     ascertain whether or not investigators and agents of the 
     Naval Criminal Investigative Service conduct investigations 
     of contractor fraud in accordance with generally accepted 
     Federal law enforcement standards and applicable law.
       (b) Report.--Not later than 180 days after the date of the 
     enactment of this Act, the Comptroller General shall submit 
     to the Committee on National Security of the House of 
     Representatives and the Committee on Armed Services of the 
     Senate a report concerning the survey under subsection (a). 
     The report shall specifically address the following:

[[Page H9053]]

       (1) The extent to which investigators of the Naval Criminal 
     Investigative Service investigators and agents of the Naval 
     Criminal Investigative Service conduct investigations of 
     contractor fraud in accordance with generally accepted 
     federal law enforcement standards and applicable law.
       (2) The extent to which the interview policies established 
     by Department of Defense directives or Navy regulations are 
     adequate to instruct and guide investigators in the proper 
     conduct of subject and witness interviews.
       (3) The desirability and feasibility of providing for video 
     and audio recording of interviews and, if recording is 
     desirable, the circumstances under which recordings should be 
     made.
       (4) The desirability and feasibility of making such 
     recordings or written transcriptions of interviews, or both, 
     available on demand to the subject or witness interviewed.
       (5) The extent to which existing Department of Defense 
     directives and Navy regulations address the carrying and 
     display of weapons by agents, together with an assessment of 
     whether any change in any such directive or regulation is 
     necessary.
       (6) The extent to which existing Department of Defense 
     directives and Navy regulations provide guidance to agents to 
     ensure that the agents' conduct and demeanor is in accordance 
     with generally accepted federal law enforcement standards and 
     applicable law.
       (7) Any recommendation for legislation to ensure that 
     investigators and agents of the Naval Criminal Investigative 
     Service use legal and proper tactics during interviews in 
     connection with criminal investigations of allegations of 
     contractor fraud.

     SEC. 1047. REPORT ON MILITARY READINESS REQUIREMENTS OF THE 
                   ARMED FORCES.

       (a) Report Required.--Not later than January 31, 1997, 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 military 
     readiness requirements of the active and reserve components 
     of the Armed Forces, including specific combat units, combat 
     support units, and combat service support units. Based on the 
     assessment scenario described in subsection (c), the report 
     shall assess such readiness requirements under a tiered 
     readiness and response system that categorizes a given unit 
     of the Armed Forces according to the likelihood that the unit 
     will be required to respond to a military conflict and the 
     time in which the unit will be required to respond.
       (b) Preparation of Report.--The Chairman of the Joint 
     Chiefs of Staff, together with the other members of the Joint 
     Chiefs of Staff specified in section 151(a) of title 10, 
     United States Code, shall prepare the report required by 
     subsection (a). The Chairman of the Joint Chiefs of Staff 
     shall consult with the Commander of the Special Operations 
     Command in the preparation of the report.
       (c) Assessment Scenario.--The report shall assess readiness 
     requirements in a scenario based on the following 
     assumptions:
       (1) The conflict is in a generic theater of operations 
     located anywhere in the world and does not exceed the 
     notional limits for a major regional conflict.
       (2) The forces available for deployment include the forces 
     described in the Bottom Up Review force structure, including 
     all planned force enhancements.
       (3) Assistance is not available from allies.
       (d) Assessment Elements.--The report shall identify by unit 
     type and component, and assess the readiness requirements of, 
     all active and reserve component units. Each such unit shall 
     be categorized within one of the following classifications:
       (1) 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:
       (A) Force units that are routinely deployed forward at sea 
     or on land outside the United States.
       (B) Combat-ready crises response forces that are capable of 
     mobilizing and deploying within 10 days after receipt of 
     orders.
       (C) 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.
       (2) 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.
       (3) 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.
       (4) All other active and reserve component force units 
     which are not categorized within a classification described 
     in paragraph (1), (2), or (3).
       (e) Additional Information Regarding Certain Units.--With 
     regard to each unit that is not categorized within a 
     classification described in paragraph (1), (2), or (3) of 
     subsection (d), the report shall include--
       (1) a description of the mission and mobilization or 
     deployment schedule (or both) of the unit in connection with 
     the requirements of the assessment scenario and the combat 
     readiness requirements of the Armed Forces; or
       (2) an identification of the unit as excess to the needs of 
     the national military strategy and the reasons therefor.
       (f) Form of Report.--The report under this section shall be 
     submitted in unclassified form but may contain a classified 
     annex.

     SEC. 1048. REPORT ON NATO ENLARGEMENT.

       (a) Report.--Not later than February 1, 1997, the President 
     shall transmit to the Committee on Armed Services and the 
     Committee on Foreign Relations of the Senate and the 
     Committee on National Security and the Committee on 
     International Relations of the House of Representatives a 
     report on the enlargement of the North Atlantic Treaty 
     Organization. The report shall contain a comprehensive 
     discussion of the following:
       (1) Geopolitical and financial costs and benefits, 
     including financial savings, associated with--
       (A) enlargement of the North Atlantic Treaty Organization;
       (B) further delays in the process of enlargement of the 
     North Atlantic Treaty Organization; and
       (C) a failure to enlarge the North Atlantic Treaty 
     Organization.
       (2) Additional North Atlantic Treaty Organization and 
     United States military expenditures requested by prospective 
     members of the North Atlantic Treaty Organization to 
     facilitate their admission into the North Atlantic Treaty 
     Organization.
       (3) Modifications necessary in the military strategy of the 
     North Atlantic Treaty Organization and force structure 
     required by the inclusion of new members and steps necessary 
     to integrate new members, including the role of nuclear and 
     conventional capabilities, reinforcement, force deployments, 
     prepositioning of equipment, mobility, and headquarter 
     locations.
       (4) The relationship between enlargement of the North 
     Atlantic Treaty Organization and transatlantic stability and 
     security.
       (5) The state of military preparedness and interoperability 
     of Central and Eastern European nations as it relates to the 
     responsibilities of membership of the North Atlantic Treaty 
     Organization and additional security costs or benefits that 
     may accrue to the United States from enlargement of the North 
     Atlantic Treaty Organization.
       (6) The state of democracy and free market development as 
     it affects the preparedness of Central and Eastern European 
     nations for the responsibilities of membership of the North 
     Atlantic Treaty Organization, including civilian control of 
     the military, the rule of law, human rights, and 
     parliamentary oversight.
       (7) The state of relations between prospective members of 
     the North Atlantic Treaty Organization and their neighbors, 
     steps taken by prospective members to reduce tensions, and 
     mechanisms for the peaceful resolution of border disputes.
       (8) The commitment of prospective members of the North 
     Atlantic Treaty Organization to the principles of the North 
     Atlantic Treaty and the security of the North Atlantic area.
       (9) The effect of enlargement of the North Atlantic Treaty 
     Organization on the political, economic, and security 
     conditions of European Partnership for Peace nations not 
     among the first new members of the North Atlantic Treaty 
     Organization.
       (10) The relationship between enlargement of the North 
     Atlantic Treaty Organization and EU enlargement and the costs 
     and benefits of both.
       (11) The relationship between enlargement of the North 
     Atlantic Treaty Organization and treaties relevant to United 
     States and European security, such as the Conventional Armed 
     Forces in Europe Treaty.
       (12) The anticipated impact both of enlargement of the 
     North Atlantic Treaty Organization and further delays of 
     enlargement on Russian foreign and defense policies and the 
     costs and benefits of a security relationship between the 
     North Atlantic Treaty Organization and Russia.
       (b) Interpretation.--Nothing in this section shall be 
     interpreted or construed to affect the implementation of the 
     NATO Participation Act of 1994 (title II of Public Law 103-
     447; 22 U.S.C. 1928 note), or any other program or activity 
     which facilitates or assists prospective members of the North 
     Atlantic Treaty Organization.
         Subtitle E--Management of Armed Forces Retirement Home

     SEC. 1051. RETIREMENT HOME BOARDS OF DIRECTORS.

       (a) Additional Term of Office.--Subsection (e) of section 
     1515 of the Armed Forces Retirement Home Act of 1991 (24 
     U.S.C. 415) is amended by adding at the end the following new 
     paragraph:
       ``(3) The chairman of the Retirement Home Board may appoint 
     a member of the Retirement Home Board for a second 
     consecutive term. The chairman of a Local Board may appoint a 
     member of that Local Board for a second consecutive term.''.
       (b) Early Expiration of Term.--(1) Subsection (f) of such 
     section is amended to read as follows:
       ``(f) Early Expiration of Term.--A member of the Armed 
     Forces or Federal civilian employee who is appointed as a 
     member of the Retirement Home Board or a Local Board may 
     serve as a board member only so long as the member of the 
     Armed Forces or Federal civilian employee is assigned to or 
     serving in the duty position that gave rise to the 
     appointment as a board member.''.
       (2) The amendment made by this subsection shall not affect 
     the staggered terms of members of the Armed Forces Retirement 
     Home Board or a Local Board of the Retirement Home under 
     section 1515(f) of such Act,

[[Page H9054]]

     as such section is in effect before the date of the enactment 
     of this Act.
       (c) Annual Evaluation of Directors.--Section 1517 of such 
     Act (24 U.S.C. 417) is amended by striking out subsection (f) 
     and inserting in lieu thereof the following:
       ``(f) Annual Evaluation of Directors.--The chairman of the 
     Retirement Home Board shall annually evaluate the performance 
     of the Directors and shall make such recommendations to the 
     Secretary of Defense as the chairman considers appropriate in 
     light of the evaluation.''.

     SEC. 1052. [S582 HR] ACCEPTANCE OF UNCOMPENSATED SERVICES.

       (a) Authority.--Part A of the Armed Forces Retirement Home 
     Act of 1991 (title XV of Public Law 101-510; 24 U.S.C. 401 et 
     seq.) is amended by adding at the end the following new 
     section:

     ``SEC. 1522. AUTHORITY TO ACCEPT CERTAIN UNCOMPENSATED 
                   SERVICES.

       ``(a) Authority To Accept Services.--Subject to subsection 
     (b) and notwithstanding section 1342 of title 31, United 
     States Code, the Chairman of the Retirement Home Board or the 
     Director of each establishment of the Retirement Home may 
     accept from any person voluntary personal services or 
     gratuitous services unless the acceptance of the voluntary 
     services is disapproved by the Retirement Home Board.
       ``(b) Requirements and Limitations.--(1) The Chairman of 
     the Retirement Home Board or the Director of the 
     establishment accepting the services shall notify the person 
     of the scope of the services accepted.
       ``(2) The Chairman or Director shall--
       ``(A) supervise the person providing the services to the 
     same extent as that official would supervise a compensated 
     employee providing similar services; and
       ``(B) ensure that the person is licensed, privileged, has 
     appropriate credentials, or is otherwise qualified under 
     applicable laws or regulations to provide such services.
       ``(3) A person providing services accepted under subsection 
     (a) may not--
       ``(A) serve in a policymaking position of the Retirement 
     Home; or
       ``(B) be compensated for the services by the Retirement 
     Home.
       ``(c) Authority To Recruit and Train Persons Providing 
     Services.--The Chairman of the Retirement Home Board or the 
     Director of an establishment of the Retirement Home may 
     recruit and train persons to provide services authorized to 
     be accepted under subsection (a).
       ``(d) Status of Persons Providing Services.--(1) Subject to 
     paragraph (3), while providing services accepted under 
     subsection (a) or receiving training under subsection (c), a 
     person shall be considered to be an employee of the Federal 
     Government only for purposes of the following provisions of 
     law:
       ``(A) Subchapter I of chapter 81 of title 5, United States 
     Code (relating to compensation for work-related injuries).
       ``(B) Chapter 171 of title 28, United States Code (relating 
     to claims for damages or loss).
       ``(2) A person providing services accepted under subsection 
     (a) shall be considered to be an employee of the Federal 
     Government under paragraph (1) only with respect to services 
     that are within the scope of the services accepted.
       ``(3) For purposes of determining the compensation for 
     work-related injuries payable under chapter 81 of title 5, 
     United States Code (pursuant to this subsection) to a person 
     providing services accepted under subsection (a), the monthly 
     pay of the person for such services shall be deemed to be the 
     amount determined by multiplying--
       ``(A) the average monthly number of hours that the person 
     provided the services, by
       ``(B) the minimum wage determined in accordance with 
     section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 
     U.S.C. 206(a)(1)).
       ``(e) Reimbursement of Incidental Expenses.--The Chairman 
     of the Retirement Board or the Director of the establishment 
     accepting services under subsection (a) may provide for 
     reimbursement of a person for incidental expenses incurred by 
     the person in providing the services accepted under 
     subsection (a). The Chairman or Director shall determine 
     which expenses qualify for reimbursement under this 
     subsection.''.
       (b) Federal Status of Residents Paid for Part-Time or 
     Intermittent Services.--Paragraph (2) of section 1521(b) of 
     the Armed Forces Retirement Home Act of 1991 (24 U.S.C. 
     421(b)) is amended to read as follows:
       ``(2) being an employee of the United States for any 
     purpose other than--
       ``(A) subchapter I of chapter 81 of title 5, United States 
     Code (relating to compensation for work-related injuries); 
     and
       ``(B) chapter 171 of title 28, United States Code (relating 
     to claims for damages or loss).''.

     SEC. 1053. DISPOSAL OF TRACT OF REAL PROPERTY IN THE DISTRICT 
                   OF COLUMBIA.

       (a) Disposal Authorized.--Notwithstanding title II the 
     Federal Property and Administrative Services Act of 1949 (40 
     U.S.C. 481 et seq.), title VIII of such Act (40 U.S.C. 531 et 
     seq.), section 501 of the Stewart B. McKinney Homeless 
     Assistance Act (42 U.S.C. 11411), or any other provision of 
     law relating to the management and disposal of real property 
     by the United States, the Armed Forces Retirement Home Board 
     may convey, by sale or otherwise, all right, title, and 
     interest of the United States in a parcel of real property, 
     including improvements thereon, consisting of approximately 
     49 acres located in Washington, District of Columbia, east of 
     North Capitol Street, and recorded as District Parcel 121/19.
       (b) Manner, Terms, and Conditions of Disposal.--The Armed 
     Forces Retirement Home Board may determine--
       (1) the manner for the disposal of the real property under 
     subsection (a); and
       (2) the terms and conditions for the conveyance of that 
     property, including any terms and conditions that the Board 
     considers necessary to protect the interests of the United 
     States.
       (c) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Armed Forces Retirement Home Board. The cost of the 
     survey shall be borne by the party or parties to which the 
     property is to be conveyed.
       (d) Congressional Notification.--(1) Before disposing of 
     real property under subsection (a), the Armed Forces 
     Retirement Home Board shall notify the Committee on Armed 
     Services of the Senate and the Committee on National Security 
     of the House of Representatives of the proposed disposal. The 
     Board may not dispose of the real property until the later 
     of--
       (A) the date that is 60 days after the date on which the 
     notification is received by the committees; or
       (B) the date of the next day following the expiration of 
     the first period of 30 days of continuous session of Congress 
     that follows the date on which the notification is received 
     by the committees.
       (2) For the purposes of paragraph (1)--
       (A) continuity of session is broken only by an adjournment 
     of Congress sine die; and
       (B) the days on which either House is not in session 
     because of an adjournment of more than three days to a day 
     certain are excluded in the computation of any period of time 
     in which Congress is in continuous session.
                       Subtitle F--Other Matters

     SEC. 1061. POLICY ON PROTECTION OF NATIONAL INFORMATION 
                   INFRASTRUCTURE AGAINST STRATEGIC ATTACK.

       (a) Report Requirement.--Not later than 180 days after the 
     date of the enactment of this Act, the President shall submit 
     to Congress a report setting forth a national policy on 
     protecting the national information infrastructure against 
     strategic attack.
       (b) Matters To Be Included.--The policy described in the 
     report shall include the following:
       (1) Plans to meet essential Government and civilian needs 
     during a national security emergency associated with a 
     strategic attack on elements of the national information 
     infrastructure the functioning of which depend on networked 
     computer systems.
       (2) The identification of information infrastructure 
     functions that must be performed during such an emergency.
       (3) The assignment of responsibilities to Federal 
     departments and agencies, and a description of the roles of 
     Government and industry, relating to indications and warning 
     of, assessment of, response to, and reconstitution after, 
     potential strategic attacks on the elements of the national 
     information infrastructure described under paragraph (1).
       (c) Unresolved Issues.--The report shall also identify--
       (1) matters relating to the national policy described in 
     the report that, as of the submission of the report, are in 
     need of further study and resolution, such as technology and 
     funding shortfalls; and
       (2) legal and regulatory considerations relating to the 
     national policy.
       (d) Update of Earlier Report.--The report shall include an 
     update of the report required to be submitted to Congress 
     pursuant to section 1053 of the National Defense 
     Authorization Act for Fiscal Year 1996 (Public Law 104-106; 
     110 Stat. 440).

     SEC. 1062. INFORMATION SYSTEMS SECURITY PROGRAM.

       (a) Allocation.--Of the amounts appropriated for the 
     Department of Defense for the Defense Information 
     Infrastructure for each of fiscal years 1999 through 2002, 
     the Secretary of Defense shall allocate to the information 
     systems security program (program element 0303140K) amounts 
     as follows:
       (1) For fiscal year 1999, 2.5 percent.
       (2) For fiscal year 2000, 3.0 percent.
       (3) For fiscal year 2001, 3.5 percent.
       (4) For fiscal year 2002, 4.0 percent.
       (b) Relationship to Other Amounts.--Amounts allocated under 
     subsection (a) are in addition to amounts appropriated to the 
     National Security Agency and the Defense Advanced Research 
     Projects Agency for development of information security 
     systems, acquisition of information security systems, and 
     operation of information security systems.
       (c) Report.--Not later than November 15, 1997, the 
     Secretary of Defense shall submit to the congressional 
     defense committees and the congressional intelligence 
     committees a report on information security activities of the 
     Department of Defense. The report shall describe--
       (1) the objectives of the Secretary with respect to 
     information security and the strategy of the Secretary 
     (including the strategy with respect to funding) during 
     fiscal years 1999 through 2002 to achieve those objectives;
       (2) how the Secretary intends to manage and allocate the 
     funds required by subsection (a) to be allocated to the 
     information systems security program; and
       (3) if the Secretary determines that a funding plan for the 
     information systems security program for fiscal years 1999 
     through

[[Page H9055]]

     2002 other than that specified in subsection (a) is 
     appropriate, the alternative funding plan proposed by the 
     Secretary.
       (d) Defense Information Infrastructure.--For purposes of 
     this section, the Defense Information Infrastructure is the 
     web of communications networks, computers, software, 
     databases, applications, data security services, and other 
     capabilities that meets the information processing and 
     transport needs of Department of Defense users.

     SEC. 1063. AUTHORITY TO ACCEPT SERVICES FROM FOREIGN 
                   GOVERNMENTS AND INTERNATIONAL ORGANIZATIONS FOR 
                   DEFENSE PURPOSES.

       Section 2608(a) of title 10, United States Code, is amended 
     by inserting before the period at the end the following: 
     ``and may accept from any foreign government or international 
     organization any contribution of services made by such 
     foreign government or international organization for use by 
     the Department of Defense''.

     SEC. 1064. PROHIBITION ON COLLECTION AND RELEASE OF DETAILED 
                   SATELLITE IMAGERY RELATING TO ISRAEL.

       (a) Collection and Dissemination.--A department or agency 
     of the United States may issue a license for the collection 
     or dissemination by a non-Federal entity of satellite imagery 
     with respect to Israel only if such imagery is no more 
     detailed or precise than satellite imagery of Israel that is 
     available from commercial sources.
       (b) Declassification and Release.--A department or agency 
     of the United States may declassify or otherwise release 
     satellite imagery with respect to Israel only if such imagery 
     is no more detailed or precise than satellite imagery of 
     Israel that is available from commercial sources.

     SEC. 1065. GEORGE C. MARSHALL EUROPEAN CENTER FOR STRATEGIC 
                   SECURITY STUDIES.

       (a) Authority To Accept Foreign Gifts and Donations.--(1) 
     The Secretary of Defense may, on behalf of the George C. 
     Marshall European Center for Strategic Security Studies (in 
     this section referred to as the ``Marshall Center''), accept 
     foreign gifts or donations in order to defray the costs of, 
     or enhance the operation of, the Marshall Center.
       (2) Funds received by the Secretary under paragraph (1) 
     shall be credited to appropriations available for the 
     Department of Defense for the Marshall Center. Funds so 
     credited shall be merged with the appropriations to which 
     credited and shall be available for the Marshall Center for 
     the same purposes and same period as the appropriations with 
     which merged.
       (3) The Secretary of Defense shall notify Congress if the 
     total amount of money accepted under paragraph (1) exceeds 
     $2,000,000 in any fiscal year. Any such notice shall list 
     each of the contributors of such amounts and the amount of 
     each contribution in such fiscal year.
       (4) For purposes of this subsection, a foreign gift or 
     donation is a gift or donation of funds, materials (including 
     research materials), property, or services (including lecture 
     services and faculty services) from a foreign government, a 
     foundation or other charitable organization in a foreign 
     country, or an individual in a foreign country.
       (b) Marshall Center Participation By Foreign Nations.--(1) 
     Notwithstanding any other provision of law, the Secretary of 
     Defense may authorize participation by a European or Eurasian 
     nation in Marshall Center programs if the Secretary 
     determines, after consultation with the Secretary of State, 
     that such participation is in the national interest of the 
     United States.
       (2) Not later than January 31 of each year, the Secretary 
     of Defense shall submit to Congress a report setting forth 
     the names of the foreign nations permitted to participate in 
     programs of the Marshall Center during the preceding year 
     under paragraph (1). Each such report shall be prepared by 
     the Secretary with the assistance of the Director of the 
     Marshall Center.
       (c) Exemptions for Members of Marshall Center Board of 
     Visitors From Certain Requirements.--(1) In the case of any 
     person invited to serve without compensation on the Marshall 
     Center Board of Visitors, the Secretary of Defense may waive 
     any requirement for financial disclosure that would otherwise 
     apply to that person solely by reason of service on such 
     Board.
       (2) Notwithstanding any other provision of law, a member of 
     the Marshall Center Board of Visitors may not be required to 
     register as an agent of a foreign government solely by reason 
     of service as a member of the Board.
       (3) Notwithstanding section 219 of title 18, United States 
     Code, a non-United States citizen may serve on the Marshall 
     Center Board of Visitors even though registered as a foreign 
     agent.

     SEC. 1066. AUTHORITY TO AWARD TO CIVILIAN PARTICIPANTS IN THE 
                   DEFENSE OF PEARL HARBOR THE CONGRESSIONAL MEDAL 
                   PREVIOUSLY AUTHORIZED ONLY FOR MILITARY 
                   PARTICIPANTS IN THE DEFENSE OF PEARL HARBOR.

       (a) Authority.--The Speaker of the House of Representatives 
     and the President pro tempore of the Senate are authorized 
     jointly to present, on behalf of Congress, a bronze medal 
     provided for under section 1492 of the National Defense 
     Authorization Act for Fiscal Year 1991 (Public Law 101-510; 
     104 Stat. 1721) to any person who meets the eligibility 
     requirements set forth in subsection (d) of that section 
     other than the requirement for membership in the Armed 
     Forces, as certified under subsection (e) of that section or 
     under subsection (b) of this section.
       (b) Certification.--The Secretary of Defense shall, not 
     later than 12 months after the date of the enactment of this 
     Act, certify to the Speaker of the House of Representatives 
     and the President pro tempore of the Senate the names of 
     persons who are eligible for award of the medal under this 
     Act and have not previously been certified under section 
     1492(e) of the National Defense Authorization Act for Fiscal 
     Year 1991.
       (c) Applications.--Subsections (d)(2) and (f) of section 
     1492 of the National Defense Authorization Act for Fiscal 
     Year 1991 shall apply in the administration of this section.
       (d) Additional Striking Authority.--The Secretary of the 
     Treasury shall strike such additional medals as may be 
     necessary for presentation under the authority of subsection 
     (a).
       (e) Authorization of Appropriations.--There is authorized 
     to be appropriated such sum as may be necessary to carry out 
     this section.
       (f) Retroactive Effective Date.--The authority under 
     subsection (a) shall be effective as of November 5, 1990.

     SEC. 1067. ASSIMILATIVE CRIMES AUTHORITY FOR TRAFFIC OFFENSES 
                   ON MILITARY INSTALLATIONS.

       Section 4 of the Act of June 1, 1948 (40 U.S.C. 318c), is 
     amended--
       (1) by striking out ``Whoever shall violate'' and inserting 
     in lieu thereof ``(a) Except as provided in subsection (b), 
     whoever violates'';
       (2) by inserting ``than'' after ``not more''; and
       (3) by adding at the end the following:
       ``(b)(1) Whoever violates any military traffic regulation 
     shall be fined an amount not to exceed the amount of the 
     maximum fine for a like or similar offense under the criminal 
     or civil law of the State, territory, possession, or district 
     where the military installation in which the violation 
     occurred is located, or imprisoned for not more than 30 days, 
     or both.
       ``(2) For purposes of this subsection, the term `military 
     traffic regulation' means a rule or regulation for the 
     control of vehicular or pedestrian traffic on military 
     installations that is promulgated by the Secretary of 
     Defense, or the designee of the Secretary, under the 
     authority delegated pursuant to section 2.''.

     SEC. 1068. UNIFORM CODE OF MILITARY JUSTICE AMENDMENTS.

       (a) Technical Amendment Regarding Forfeitures During 
     Confinement Adjudged by a Court-martial.--(1) Section 
     858b(a)(1) of title 10, United States Code (article 58b(a)(1) 
     of the Uniform Code of Military Justice), is amended--
       (A) in the first sentence, by inserting ``(if adjudged by a 
     general court-martial)'' after ``all pay and''; and
       (B) in the third sentence, by striking out ``two-thirds of 
     all pay and allowances'' and inserting in lieu thereof ``two-
     thirds of all pay''.
       (2) The amendments made by paragraph (1) shall take effect 
     as of April 1, 1996, and shall apply to any case in which a 
     sentence is adjudged by a court-martial on or after that 
     date.
       (b)  Excepted Service Appointments to Certain Nonattorney 
     Positions of the United States Court of Appeals for the Armed 
     Forces.--(1) Subsection (c) of section 943 of title 10, 
     United States Code (article 143(c) of the Uniform Code of 
     Military Justice) is amended in paragraph (1) by inserting 
     after the first sentence the following: ``A position of 
     employment under the Court that is provided primarily for the 
     service of one judge of the court, reports directly to the 
     judge, and is a position of a confidential character is 
     excepted from the competitive service.''.
       (2) The caption for such subsection is amended by striking 
     out ``attorney'' and inserting in lieu thereof ``certain''.
       (c) Repeal of 13-Year Special Limit on Term of Transitional 
     Judge of United States Court of Appeals for the Armed 
     Forces.--(1) Subsection (d)(2) of section 1301 of the 
     National Defense Authorization Act for Fiscal Years 1990 and 
     1991 (Public Law 101-189; 103 Stat. 1575; 10 U.S.C. 942 note) 
     is amended by striking out ``to the judges who are first 
     appointed to the two new positions of the court created as of 
     October 1, 1990--'' and all that follows and inserting in 
     lieu thereof ``to the judge who is first appointed to one of 
     the two new positions of the court created as of October 1, 
     1990, as designated by the President at the time of 
     appointment, the anniversary referred to in subparagraph (A) 
     of that paragraph shall be treated as being the seventh 
     anniversary and the number of years referred to in 
     subparagraph (B) of that paragraph shall be treated as being 
     seven.''.
       (2) Subsection (e)(1) of such section is amended by 
     striking out ``each judge'' and inserting in lieu thereof ``a 
     judge''.

     SEC. 1069. PUNISHMENT OF INTERSTATE STALKING.

       (a) In General.--Chapter 110A of title 18, United States 
     Code, is amended by inserting after section 2261 the 
     following new section:

     ``Sec. 2261A. Interstate stalking

       ``Whoever travels across a State line or within the special 
     maritime and territorial jurisdiction of the United States 
     with the intent to injure or harass another person, and in 
     the course of, or as a result of, such travel places that 
     person in reasonable fear of the death of, or serious bodily 
     injury (as defined

[[Page H9056]]

     in section 1365(g)(3) of this title) to, that person or a 
     member of that person's immediate family (as defined in 
     section 115 of this title) shall be punished as provided in 
     section 2261 of this title.''.
       (b) Conforming Amendments.--Title 18, United States Code, 
     is amended as follows:
       (1) Section 2261(b) is amended by inserting ``or section 
     2261A'' after ``this section''.
       (2) Sections 2261(b) and 2262(b) are each amended by 
     striking ``offender's spouse or intimate partner'' each place 
     it appears and inserting ``victim''.
       (3) The chapter heading for chapter 110A is amended by 
     inserting ``AND STALKING'' after ``VIOLENCE''.
       (4) The item relating to chapter 110A in the table of 
     chapters at the beginning of part I is amended to read as 
     follows:
``110A.  Domestic violence and stalking.....................2261''.....

       (c) Clerical Amendment.--The table of sections at the 
     beginning of chapter 110A of such title is amended by 
     inserting after the item relating to section 2261 the 
     following new item:
``2261A. Interstate stalking.''.

     SEC. 1070. PARTICIPATION OF MEMBERS, DEPENDENTS, AND OTHER 
                   PERSONS IN CRIME PREVENTION EFFORTS AT 
                   INSTALLATIONS.

       (a) Crime Prevention Plan.--The Secretary of Defense shall 
     prepare and implement an incentive-based plan to encourage 
     members of the Armed Forces, dependents of members, civilian 
     employees of the Department of Defense, and employees of 
     defense contractors performing work at military installations 
     to report to an appropriate military law enforcement agency 
     any crime or criminal activity that the person reasonably 
     believes occurred on a military installation or involves a 
     member of the Armed Forces.
       (b) Incentives to Report Criminal Activity.--The Secretary 
     of Defense shall include in the plan developed under 
     subsection (a) incentives for members and other persons 
     described in such subsection to provide information to 
     appropriate military law enforcement agencies regarding any 
     crime or criminal activity occurring on a military 
     installation or involving a member of the Armed Forces.
       (c) Report Regarding Implementation.--Not later than 
     February 1, 1997, the Secretary shall submit to Congress a 
     report describing the plan being developed under subsection 
     (a).

     SEC. 1071. DISPLAY OF STATE FLAGS AT INSTALLATIONS AND 
                   FACILITIES OF THE DEPARTMENT OF DEFENSE.

       (a) In General.--Subchapter I of chapter 134 of title 10, 
     United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 2249b. Display of State flags: prohibition on use of 
       funds to arbitrarily exclude flag; position and manner of 
       display

       ``(a) Prohibition on Use of Funds.--Funds available to the 
     Department of Defense may not be used to prescribe or enforce 
     any rule that arbitrarily excludes the official flag of any 
     State, territory, or possession of the United States from any 
     display of the flags of the States, territories, and 
     possessions of the United States at an official ceremony of 
     the Department of Defense.
       ``(b) Position and Manner of Display.--The display of an 
     official flag of a State, territory, or possession of the 
     United States at an installation or other facility of the 
     Department shall be governed by the provisions of section 3 
     of the Joint Resolution of June 22, 1942 (56 Stat. 378, 
     chapter 435; 36 U.S.C. 175), and any modification of such 
     provisions under section 8 of that Joint Resolution (36 
     U.S.C. 178).''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter I of such chapter is amended by adding 
     at the end the following new item:
``2249b. Display of State flags: prohibition on use of funds to 
              arbitrarily exclude flag; position and manner of 
              display.''.

     SEC. 1072. TREATMENT OF EXCESS OPERATIONAL SUPPORT AIRLIFT 
                   AIRCRAFT.

       (a) Reutilization or Sale Before Transfer.--An operational 
     support airlift aircraft that is excess to the requirements 
     of the United States shall be placed in an inactive status 
     and stored at Davis-Monthan Air Force Base, Arizona, only 
     upon the determination of the Secretary of Defense that all 
     reasonable efforts for the reutilization of the aircraft by, 
     or sale of the aircraft to, Federal agencies or other persons 
     have been completed. The Secretary shall ensure that attempts 
     to reutilize or sell the entire aircraft are given precedence 
     over any reutilization or sale of individual parts or 
     components of the aircraft.
       (b) Operational Support Airlift Aircraft Defined.--In this 
     section, the term ``operational support airlift aircraft'' 
     has the meaning given such term in section 1086(f) of the 
     National Defense Authorization Act for Fiscal Year 1996 
     (Public Law 104-106; 110 Stat. 458).

     SEC. 1073. CORRECTION TO STATUTORY REFERENCES TO CERTAIN 
                   DEPARTMENT OF DEFENSE ORGANIZATIONS.

       (a) North American Aerospace Defense Command.--Section 
     162(a) of title 10, United States Code, is amended by 
     striking out ``North American Air Defense Command'' in 
     paragraphs (1), (2), and (3) and inserting in lieu thereof 
     ``North American Aerospace Defense Command''.
       (b) Former Naval Records and History Office and Fund.--(1) 
     Section 7222 of title 10, United States Code, is amended by 
     striking out ``Office of Naval Records and History'' each 
     place it appears in subsections (a) and (c) and inserting in 
     lieu thereof ``Naval Historical Center''.
       (2)(A) The heading of such section is amended to read as 
     follows:

     ``Sec. 7222. Naval Historical Center Fund''.

       (B) The item relating to such section in the table of 
     sections at the beginning of chapter 631 of title 10, United 
     States Code, is amended to read as follows:
``7222. Naval Historical Center Fund.''.
       (3) Section 2055(g) of the Internal Revenue Code of 1986 is 
     amended by striking out paragraph (4) and inserting in lieu 
     thereof the following:
  ``(4) For treatment of gifts and bequests for the benefit of the 
Naval Historical Center as gifts or bequests to or for the use of the 
United States, see section 7222 of title 10, United States Code.''.
       (c) Defense Distribution Center, Anniston.--The Corporation 
     for the Promotion of Rifle Practice and Firearms Safety Act 
     (title XVI of Public Law 104-106; 110 Stat. 515; 36 U.S.C. 
     5501 et seq.) is amended by striking out ``Anniston Army 
     Depot'' each place it appears in the following provisions and 
     inserting in lieu thereof ``Defense Distribution Depot, 
     Anniston'':
       (1) Section 1615(a)(3) (36 U.S.C. 5505(a)(3)).
       (2) Section 1616(b) (36 U.S.C. 5506(b)).
       (3) Section 1619(a)(1) (36 U.S.C. 5509(a)(1)).
       (d) Chemical Demilitarization Citizens Advisory 
     Commissions.--Section 172 of the National Defense 
     Authorization Act for Fiscal Year 1993 (Public Law 102-484; 
     106 Stat. 2341; 50 U.S.C. 1521 note) is amended by striking 
     out ``Assistant Secretary of the Army (Installations, 
     Logistics, and Environment)'' in subsections (b) and (f) and 
     inserting in lieu thereof ``Assistant Secretary of the Army 
     (Research, Development and Acquisition)''.
       (e) Defense Advanced Research Projects Agency.--(1) Each of 
     the following provisions of law is amended by inserting 
     ``Defense'' before ``Advanced Research Projects Agency'' each 
     place it appears:
       (A) Section 5316 of title 5, United States Code.
       (B) Subsections (b), (f), and (i) of section 2371 of title 
     10, United States Code.
       (C) Section 822(c)(1)(D) of Public Law 101-510 (42 U.S.C. 
     6686).
       (D) Section 845(a) of Public Law 103-160 (10 U.S.C. 2371 
     note).
       (E) Section 243(a) of Public Law 103-160 (10 U.S.C. 2431 
     note).
       (F) Sections 1352(c)(2), 1353, and 1354(a) of Public Law 
     103-160 (10 U.S.C. 2501 note).
       (2) The section headings of each of the following sections 
     are amended by inserting ``defense'' before ``advanced'':
       (A) Section 845 of Public Law 103-160 (10 U.S.C. 2371 
     note).
       (B) Sections 1353 and 1354 of Public Law 103-160 (10 U.S.C. 
     2501 note).
       (3) The heading for subsection (a) of section 1354 of 
     Public Law 103-160 (10 U.S.C. 2501 note) is amended by 
     striking out ``ARPA'' and inserting in lieu thereof ``DARPA'.

     SEC. 1074. TECHNICAL AND CLERICAL AMENDMENTS.

       (a) Miscellaneous Amendments to Title 10, United States 
     Code.--Title 10, United States Code, is amended as follows:
       (1) Section 129(a) is amended by striking out ``the date of 
     the enactment of the National Defense Authorization Act for 
     Fiscal Year 1996'' and inserting in lieu thereof ``February 
     10, 1996,''.
       (2) Section 401 is amended--
       (A) in subsection (a)(4), by striking out ``Armed Forces'' 
     both places it appears and inserting in lieu thereof ``armed 
     forces''; and
       (B) in subsection (e), by inserting ``any of the 
     following'' after ``means''.
       (3) Section 528(b) is amended by striking out ``(1)'' after 
     ``(b)'' and inserting ``(1)'' before ``The limitation''.
       (4) Section 1078a(a) is amended by striking out ``Beginning 
     on October 1, 1994, the'' and inserting in lieu thereof 
     ``The''.
       (5) Section 1161(b)(2) is amended by striking out ``section 
     1178'' and inserting in lieu thereof ``section 1167''.
       (6) Section 1167 is amended by striking out ``person'' and 
     inserting in lieu thereof ``member''.
       (7) The table of sections at the beginning of chapter 81 is 
     amended by striking out ``Sec.'' in the item relating to 
     section 1599a.
       (8) Section 1588(d)(1)(C) is amended by striking out 
     ``Section 522a'' and inserting in lieu thereof ``Section 
     552a''.
       (9) Chapter 87 is amended--
       (A) in section 1723(a), by striking out the second 
     sentence;
       (B) in section 1724--
       (i) in subsection (a), by striking out ``small purchase 
     threshold'' and inserting in lieu thereof ``simplified 
     acquisition threshold''; and
       (ii) in subsections (a) and (b), by striking out ``, 
     beginning on October 1, 1993,'';
       (C) in section 1733(a), by striking out ``On and after 
     October 1, 1993, a'' and inserting in lieu thereof ``A''; and
       (D) in section 1734--
       (i) in subsection (a)(1), by striking out ``, on and after 
     October 1, 1993,''; and
       (ii) in subsection (b)(1)(A), by striking out ``, on and 
     after October 1, 1991,''.
       (10) Section 2216, as added by section 371 of the National 
     Defense Authorization Act for Fiscal Year 1996 (Public Law 
     104-106; 107 Stat. 277), is redesignated as section 2216a, 
     and the item relating to that section in the table of 
     sections at the beginning of chapter

[[Page H9057]]

     131 is revised so as to reflect such redesignation.
       (11) Section 2305(b)(6) is amended--
       (A) in subparagraph (B), by striking out ``of this 
     section'' and ``of this paragraph'';
       (B) in subparagraph (C), by striking out ``this 
     subsection'' and inserting in lieu thereof ``subparagraph 
     (A)''; and
       (C) in subparagraph (D), by striking out ``pursuant to this 
     subsection'' and inserting in lieu thereof ``under 
     subparagraph (A)''.
       (12) Section 2306a(h)(3) is amended by inserting ``(41 
     U.S.C. 403(12))'' before the period at the end.
       (13) Section 2323a(a) is amended by striking out ``section 
     1207 of the National Defense Authorization Act for Fiscal 
     Year 1987 (10 U.S.C. 2301 note)'' and inserting in lieu 
     thereof ``section 2323 of this title''.
       (14) Section 2534(c)(4) is amended by striking out ``the 
     date occurring two years after the date of the enactment of 
     the National Defense Authorization Act for Fiscal Year 1996'' 
     and inserting in lieu thereof ``February 10, 1998''.
       (15) The table of sections at the beginning of chapter 155 
     is amended by striking out the item relating to section 2609.
       (16) Section 2610(e) is amended by striking out ``two years 
     after the date of the enactment of the National Defense 
     Authorization Act for Fiscal Year 1996'' and inserting in 
     lieu thereof ``on February 10, 1998''.
       (17) Sections 2824(c) and 2826(i)(1) are amended by 
     striking out ``the date of the enactment of the National 
     Defense Authorization Act for Fiscal Year 1996'' and 
     inserting in lieu thereof ``February 10, 1996''.
       (18) Section 3036(d)(3) is amended by striking out ``For 
     purposes of this subsection,'' and inserting in lieu thereof 
     ``In this subsection,''.
       (19) The table of sections at the beginning of chapter 641 
     is amended by striking out the item relating to section 7434.
       (20) Section 7863 is amended by inserting ``were'' in the 
     first sentence after ``the stores''.
       (21) Section 10542(b)(21) is amended by striking out 
     ``261'' and inserting in lieu thereof ``12001''.
       (22) Section 12205(a) is amended by striking out ``After 
     September 30, 1995, no person'' and inserting in lieu thereof 
     ``No person''.
       (b) Amendments to Public Law 104-106.--The National Defense 
     Authorization Act for Fiscal Year 1996 (Public Law 104-106; 
     110 Stat. 186 et seq.) is amended as follows:
       (1) Section 561(d)(1) (110 Stat. 322) is amended by 
     inserting ``of such title'' after ``Section 1405(c)''.
       (2) Section 1092(b)(2) (110 Stat. 460) is amended by 
     striking out the period at the end and inserting in lieu 
     thereof ``; and''.
       (3) Section 4301(a)(1) (110 Stat. 656) is amended by 
     inserting ``of subsection (a)'' after ``in paragraph (2)''.
       (4) Section 5601 (110 Stat. 699) is amended--
       (A) in subsection (a), by inserting ``of title 10, United 
     States Code,'' before ``is amended''; and
       (B) in subsection (c), by striking out ``use of equipment 
     or services if,'' in the second quoted matter therein and 
     inserting in lieu thereof ``use of the equipment or 
     services''.
       (5) Section 3403 (110 Stat. 631) is amended by striking out 
     ``Act of Fiscal'' and inserting in lieu thereof ``Act for 
     Fiscal''.
       (6) Section 4202(c)(1) (110 Stat. 653) is amended, 
     effective as of February 10, 1996, by striking out 
     ``purchases of' '' in the first quoted matter therein and 
     inserting in lieu thereof ``contracts for' ''.
       (7) Section 5607(c) (110 Stat. 701) is amended, effective 
     as of February 10, 1996--
       (A) by striking out ``303B(h)'' and by inserting in lieu 
     thereof ``303B(k)''; and
       (B) by striking out ``253b(h)'' and by inserting in lieu 
     thereof ``253b(k)''.
       (c) Provisions Executed Before Enactment of Public Law 104-
     106.--
       (1) Section 533(b) of the National Defense Authorization 
     Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 315) 
     shall apply as if enacted as of December 31, 1995.
       (2) The authority provided under section 942(f) of title 
     10, United States Code, shall be effective as if section 1142 
     of the National Defense Authorization Act for Fiscal Year 
     1996 (Public Law 104-106; 110 Stat. 467) had been enacted on 
     September 29, 1995.
       (d) Amendments to Other Acts.--
       (1) The last section of the Office of Federal Procurement 
     Policy Act (41 U.S.C. 434), as added by section 5202 of 
     Public Law 104-106 (110 Stat. 690), is redesignated as 
     section 38, and the item appearing after section 34 in the 
     table of contents in the first section of that Act is 
     transferred to the end of such table of contents and revised 
     so as to reflect such redesignation.
       (2) Section 1412(g)(2) of the Department of Defense 
     Authorization Act, 1986 (50 U.S.C. 1521(g)(2)), is amended--
       (A) in the matter preceding subparagraph (A), by striking 
     out ``shall contain--'' and inserting in lieu thereof ``shall 
     include the following:'';
       (B) in subparagraph (A)--
       (i) by striking out ``a'' before ``site-by-site'' and 
     inserting in lieu thereof ``A''; and
       (ii) by striking out the semicolon at the end and inserting 
     in lieu thereof a period; and
       (C) in subparagraphs (B) and (C), by striking out ``an'' at 
     the beginning of the subparagraph and inserting in lieu 
     thereof ``An''.
       (3) Section 3131 of Public Law 99-570 (19 U.S.C. 2081; 100 
     Stat. 3207-91) is amended in clause (v) of subsection 
     (a)(1)(A) by striking out ``and (c)'' both places it appears.
       (e) Coordination With Other Amendments.--For purposes of 
     applying amendments made by provisions of this Act other than 
     provisions of this section, this section shall be treated as 
     having been enacted immediately before the other provisions 
     of this Act.
       (f) Amendments to the Office of Federal Procurement Policy 
     Act.--The Office of Federal Procurement Policy Act (41 U.S.C. 
     403 et seq.) is amended as follows:
       (1) Section 6(f) (41 U.S.C. 405(f)) is amended by striking 
     out ``the policies set forth in section 2 or''.
       (2) Section 15(a) (41 U.S.C. 413(a)) is amended by striking 
     out the second sentence.
       (3) Section 25 (41 U.S.C. 421) is amended--
       (A) in subsection (c)--
       (i) in paragraph (3), by striking out ``the policies set 
     forth in section 2 of this Act or''; and
       (ii) in paragraph (5), by striking out ``or the policies 
     set forth in section 2 of this Act''; and
       (B) in subsection (e), by striking out ``the policies of 
     section 2 and''.

     SEC. 1075. MODIFICATION TO THIRD-PARTY LIABILITY TO UNITED 
                   STATES FOR TORTIOUS INFLICTION OF INJURY OR 
                   DISEASE ON MEMBERS OF THE UNIFORMED SERVICES.

       (a) Recovery of Pay and Allowances.--The first section of 
     Public Law 87-693 (42 U.S.C. 2651) is amended--
       (1) in the first sentence of subsection (a)--
       (A) by inserting ``or pay for'' after ``required by law to 
     furnish''; and
       (B) by striking out ``or to be furnished'' both places it 
     appears and inserting in lieu thereof ``, to be furnished, 
     paid for, or to be paid for'';
       (2) by redesignating subsections (b) and (c) as subsections 
     (d) and (e), respectively;
       (3) by inserting after subsection (a), the following new 
     subsections:
       ``(b) If a member of the uniformed services is injured, or 
     contracts a disease, under circumstances creating a tort 
     liability upon a third person (other than or in addition to 
     the United States and except employers of seamen referred to 
     in subsection (a)) for damages for such injury or disease and 
     the member is unable to perform the member's regular military 
     duties as a result of the injury or disease, the United 
     States shall have a right (independent of the rights of the 
     member) to recover from the third person or an insurer of the 
     third person, or both, the amount equal to the total amount 
     of the pay that accrues and is to accrue to the member for 
     the period for which the member is unable to perform such 
     duties as a result of the injury or disease and is not 
     assigned to perform other military duties.
       ``(c)(1) If, pursuant to the laws of a State that are 
     applicable in a case of a member of the uniformed services 
     who is injured or contracts a disease as a result of tortious 
     conduct of a third person, there is in effect for such a case 
     (as a substitute or alternative for compensation for damages 
     through tort liability) a system of compensation or 
     reimbursement for expenses of hospital, medical, surgical, or 
     dental care and treatment or for lost pay pursuant to a 
     policy of insurance, contract, medical or hospital service 
     agreement, or similar arrangement, the United States shall be 
     deemed to be a third-party beneficiary of such a policy, 
     contract, agreement, or arrangement.
       ``(2) For the purposes of paragraph (1)--
       ``(A) the expenses incurred or to be incurred by the United 
     States for care and treatment for an injured or diseased 
     member as described in subsection (a) shall be deemed to have 
     been incurred by the member;
       ``(B) the cost to the United States of the pay of the 
     member as described in subsection (b) shall be deemed to have 
     been pay lost by the member as a result of the injury or 
     disease; and
       ``(C) the United States shall be subrogated to any right or 
     claim that the injured or diseased member or the member's 
     guardian, personal representative, estate, dependents, or 
     survivors have under a policy, contract, agreement, or 
     arrangement referred to in paragraph (1) to the extent of the 
     reasonable value of the care and treatment and the total 
     amount of the pay deemed lost under subparagraph (B).'';
       (4) in subsection (d), as redesignated by paragraph (2), by 
     inserting ``or paid for'' after ``treatment is furnished''; 
     and
       (5) by adding at the end the following:
       ``(f)(1) Any amount recovered under this section for 
     medical care and related services furnished by a military 
     medical treatment facility or similar military activity shall 
     be credited to the appropriation or appropriations supporting 
     the operation of that facility or activity, as determined 
     under regulations prescribed by the Secretary of Defense.
       ``(2) Any amount recovered under this section for the cost 
     to the United States of pay of an injured or diseased member 
     of the uniformed services shall be credited to the 
     appropriation that supports the operation of the command, 
     activity, or other unit to which the member was assigned at 
     the time of the injury or illness, as determined under 
     regulations prescribed by the Secretary concerned.
       ``(g) For the purposes of this section:
       ``(1) The term `uniformed services' has the meaning given 
     such term in section 101 of title 10, United States Code.
       ``(2) The term `tortious conduct' includes any tortious 
     omission.
       ``(3) The term `pay', with respect to a member of the 
     uniformed services, means basic pay, special pay, and 
     incentive pay that the

[[Page H9058]]

     member is authorized to receive under title 37, United States 
     Code, or any other law providing pay for service in the 
     uniformed services.
       ``(4) The term `Secretary concerned' means--
       ``(A) the Secretary of Defense, with respect to the Army, 
     the Navy, the Air Force, the Marine Corps, and the Coast 
     Guard (when it is operating as a service in the Navy);
       ``(B) the Secretary of Transportation, with respect to the 
     Coast Guard when it is not operating as a service in the 
     Navy;
       ``(C) the Secretary of Health and Human Services, with 
     respect to the commissioned corps of the Public Health 
     Service; and
       ``(D) the Secretary of Commerce, with respect to the 
     commissioned corps of the National Oceanic and Atmospheric 
     Administration.''.
       (b) Conforming Amendments.--The first section of Public Law 
     87-693 (42 U.S.C. 2651) is amended--
       (1) in the first sentence of subsection (a)--
       (A) by inserting ``(independent of the rights of the 
     injured or diseased person)'' after ``a right to recover''; 
     and
       (B) by inserting ``, or that person's insurer,'' after 
     ``from said third person'';
       (2) in subsection (d), as redesignated by subsection 
     (a)(2)--
       (A) by striking out ``such right,'' and inserting in lieu 
     thereof ``a right under subsections (a), (b), and (c)''; and
       (B) by inserting ``or the insurance carrier or other entity 
     responsible for the payment or reimbursement of medical 
     expenses or lost pay'' after ``the third person who is liable 
     for the injury or disease'' each place it appears.
       (c) Effective Date.--The authority to collect pursuant to 
     the amendments made by this section shall apply to expenses 
     described in the first section of Public Law 87-693 (as 
     amended by this section) that are incurred, or are to be 
     incurred, by the United States on or after the date of the 
     enactment of this Act, whether the event from which the claim 
     arises occurs before, on, or after that date.

     SEC. 1076. CHEMICAL STOCKPILE EMERGENCY PREPAREDNESS PROGRAM.

       (a) Report.--Not later than 120 days after the date of the 
     enactment of this Act, the Secretary of the Army shall submit 
     to the Committee on Armed Services of the Senate and the 
     Committee on National Security of the House of 
     Representatives a report assessing the implementation and 
     success of the establishment of site-specific Integrated 
     Product and Process Teams as a management tool for the 
     Chemical Stockpile Emergency Preparedness Program.
       (b) Contingent Mandated Reforms.--If at the end of the 120-
     day period beginning on the date of the enactment of this Act 
     the Secretary of the Army and the Director of the Federal 
     Emergency Management Agency have been unsuccessful in 
     implementing a site-specific Integrated Product and Process 
     Team with each of the affected States, the Secretary of the 
     Army shall--
       (1) assume full control and responsibility for the Chemical 
     Stockpile Emergency Preparedness Program (eliminating the 
     role of the Director of the Federal Emergency Management 
     Agency as joint manager of the program);
       (2) establish programmatic agreement with each of the 
     affected States regarding program requirements, 
     implementation schedules, training and exercise requirements, 
     and funding (to include direct grants for program support);
       (3) clearly define the goals of the program; and
       (4) establish fiscal constraints for the program.

     SEC. 1077. EXEMPTION FROM REQUIREMENTS APPLICABLE TO SAVINGS 
                   ASSOCIATIONS FOR CERTAIN SAVINGS INSTITUTIONS 
                   SERVING MILITARY PERSONNEL.

       Section 10(m)(3)(F) of the Home Owners' Loan Act (12 U.S.C. 
     1467a(m)(3)(F)) is amended--
       (1) in the subparagraph caption, by striking out 
     ``association serving transient'' and inserting in lieu 
     thereof ``associations serving certain'';
       (2) by striking out ``company if--'' and all that follows 
     through ``90 percent'' and inserting in lieu thereof 
     ``company if at least 90 percent''; and
       (3) by striking out ``officers'' both places it appears and 
     inserting in lieu thereof ``members''.

     SEC. 1078. IMPROVEMENTS TO NATIONAL SECURITY EDUCATION 
                   PROGRAM.

       (a) Temporary Requirement Relating to Employment.--Title 
     VII of the Department of Defense Appropriations Act, 1996 
     (Public Law 104-61; 109 Stat. 650), is amended in the 
     paragraph under the heading ``National Security Education 
     Trust Fund'' by striking out the proviso.
       (b) General Program Requirements.--(1) Subparagraph (A) of 
     subsection (a)(1) of section 802 of the David L. Boren 
     National Security Education Act of 1991 (50 U.S.C. 1902) is 
     amended to read as follows:
       ``(A) awarding scholarships to undergraduate students who--
       ``(i) are United States citizens in order to enable such 
     students to study, for at least one academic semester or 
     equivalent term, in foreign countries that are critical 
     countries (as determined under section 803(d)(4)(A)) in those 
     languages and study areas where deficiencies exist (as 
     identified in the assessments undertaken pursuant to section 
     806(d)); and
       ``(ii) pursuant to subsection (b)(2)(A), enter into an 
     agreement to work in a national security position or work in 
     the field of higher education in the area of study for which 
     the scholarship was awarded;''; and
       (2) Subparagraph (B) of that subsection is amended--
       (A) in clause (i), by inserting ``relating to the national 
     security interests of the United States'' after 
     ``international fields''; and
       (B) in clause (ii)--
       (i) by striking out ``subsection (b)(2)'' and inserting in 
     lieu thereof ``subsection (b)(2)(B)''; and
       (ii) by striking out ``work for an agency or office of the 
     Federal Government or in'' and inserting in lieu thereof 
     ``work in a national security position or work in''.
       (c) Service Agreement.--(1) Subsection (b) of that section 
     is amended in the matter preceding paragraph (1) by striking 
     out ``, or of scholarships'' and all that follows through 
     ``12 months or more,'' and inserting in lieu thereof ``or any 
     scholarship''.
       (2) Paragraph (2) of that subsection is amended to read as 
     follows:
       ``(2) will--
       ``(A) not later than eight years after such recipient's 
     completion of the study for which scholarship assistance was 
     provided under the program, and in accordance with 
     regulations issued by the Secretary--
       ``(i) work in a national security position for a period 
     specified by the Secretary, which period shall be no longer 
     than the period for which scholarship assistance was 
     provided; or
       ``(ii) if the recipient demonstrates to the Secretary (in 
     accordance with such regulations) that no national security 
     position is available, work in the field of higher education 
     in a discipline relating to the foreign country, foreign 
     language, area study, or international field of study for 
     which the scholarship was awarded, for a period specified by 
     the Secretary, which period shall be determined in accordance 
     with clause (i); or
       ``(B) upon completion of such recipient's education under 
     the program, and in accordance with such regulations--
       ``(i) work in a national security position for a period 
     specified by the Secretary, which period shall be not less 
     than one and not more than three times the period for which 
     the fellowship assistance was provided; or
       ``(ii) if the recipient demonstrates to the Secretary (in 
     accordance with such regulations) that no national security 
     position is available upon the completion of the degree, work 
     in the field of higher education in a discipline relating to 
     the foreign country, foreign language, area study, or 
     international field of study for which the fellowship was 
     awarded, for a period specified by the Secretary, which 
     period shall be established in accordance with clause (i); 
     and''.
       (d) Evaluation of Progress in Language Skills.--Such 
     section is further amended--
       (1) by redesignating subsections (c), (d), and (e) as 
     subsections (d), (e), and (f), respectively; and
       (2) by inserting after subsection (b) the following new 
     subsection (c):
       ``(c) Evaluation of Progress in Language Skills.--The 
     Secretary shall, through the National Security Education 
     Program office, administer a test of the foreign language 
     skills of each recipient of a scholarship or fellowship under 
     this title before the commencement of the study or education 
     for which the scholarship or fellowship is awarded and after 
     the completion of such study or education. The purpose of 
     these tests is to evaluate the progress made by recipients of 
     scholarships and fellowships in developing foreign language 
     skills as a result of assistance under this title.''.
       (e) Functions of the National Security Education Board.--
     Section 803(d) of that Act (50 U.S.C. 1903(d)) is amended--
       (1) in paragraph (1), by inserting ``, including an order 
     of priority in such awards that favors individuals expressing 
     an interest in national security issues or pursuing a career 
     in a national security position'' before the period;
       (2) in paragraph (4)--
       (A) in the matter preceding subparagraph (A), by striking 
     out ``Make recommendations'' and inserting in lieu thereof 
     ``After taking into account the annual analyses of trends in 
     language, international, and area studies under section 
     806(b)(1), make recommendations'';
       (B) in subparagraph (A), by inserting ``and countries which 
     are of importance to the national security interests of the 
     United States'' after ``are studying''; and
       (C) in subparagraph (B), by inserting ``relating to the 
     national security interests of the United States'' after 
     ``section 802(a)(1)(B)'';
       (3) by redesignating paragraph (5) as paragraph (8); and
       (4) by inserting after paragraph (4) the following new 
     paragraphs:
       ``(5) Encourage applications for fellowships under this 
     title from graduate students having an educational background 
     in any academic discipline, particularly in the areas of 
     science or technology.
       ``(6) Provide the Secretary biennially with a list of 
     scholarship recipients and fellowship recipients, including 
     an assessment of their foreign area and language skills, who 
     are available to work in a national security position.
       ``(7) Not later than 30 days after a scholarship or 
     fellowship recipient completes the study or education for 
     which assistance was

[[Page H9059]]

     provided under the program, provide the Secretary with a 
     report fully describing the foreign area and language skills 
     obtained by the recipient as a result of the assistance.''.
       (f) National Security Position Defined.--(1) Section 808 of 
     that Act (50 U.S.C. 1908) is amended by adding at the end the 
     following new paragraph:
       ``(4) The term `national security position' means a 
     position--
       ``(A) having national security responsibilities in a agency 
     or office of the Federal Government that has national 
     security responsibilities, as determined under section 
     802(g); and
       ``(B) in which the individual in such position makes their 
     foreign language skills available to such agency or 
     office.''.
       (2) Section 802 of that Act (50 U.S.C. 1902), as amended by 
     subsection (d)(1) of this section, is further amended by 
     adding at the end the following new subsection:
       ``(g) Determination of Agencies and Offices of the Federal 
     Government Having National Security Responsibilities.--(1) 
     The Secretary, in consultation with the Board, shall annually 
     determine and develop a list identifying each agency or 
     office of the Federal Government having national security 
     responsibilities at which a recipient of a fellowship or 
     scholarship under this title will be able to make the 
     recipient's foreign area and language skills available to 
     such agency or office. The Secretary shall submit the first 
     such list to the Congress and include each subsequent list in 
     the annual report to the Congress, as required by section 
     806(b)(6).
       ``(2) Notwithstanding section 804, funds may not be made 
     available from the Fund to carry out this title for fiscal 
     year 1997 until 30 days after the date on which the Secretary 
     of Defense submits to the Congress the first such list 
     required by paragraph (1).''.
       (3) Section 806(b) of that Act (50 U.S.C. 1906(b)) is 
     amended by striking out ``and'' at the end of paragraph (5), 
     redesignating paragraph (6) as paragraph (7), and inserting 
     after paragraph (5) the following new paragraph (6):
       ``(6) the current list of agencies and offices of the 
     Federal Government required to be developed by section 
     802(g); and''.
       (g) Report on Program.--(1) Not later than six months after 
     the date of the enactment of this Act, the Secretary of 
     Defense shall submit to Congress a report assessing the 
     improvements to the program established under the David L. 
     Boren National Security Education Act of 1991 (50 U.S.C. 1901 
     et seq.) that result from the amendments made by this 
     section.
       (2) The report shall include an assessment of the 
     contribution of the program, as so improved, in meeting the 
     national security objectives of the United States.

     SEC. 1079. AVIATION AND VESSEL WAR RISK INSURANCE.

       (a) Aviation Risk Insurance.--(1) Chapter 931 of title 10, 
     United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 9514. Indemnification of Department of Transportation 
       for losses covered by defense-related aviation insurance

       ``(a) Prompt Indemnification Required.--(1) In the event of 
     a loss that is covered by defense-related aviation insurance, 
     the Secretary of Defense shall promptly indemnify the 
     Secretary of Transportation for the amount of the loss 
     consistent with the indemnification agreement between the two 
     Secretaries that underlies such insurance. The Secretary of 
     Defense shall make such indemnification--
       ``(A) in the case of a claim for the loss of an aircraft 
     hull, not later than 30 days after the date on which the 
     Secretary of Transportation determines the claim to be 
     payable or that amounts are due under the policy that 
     provided the defense-related aviation insurance; and
       ``(B) in the case of any other claim, not later than 180 
     days after the date on which the Secretary of Transportation 
     determines the claim to be payable.
       ``(2) When there is a loss of an aircraft hull that is (or 
     may be) covered by defense-related aviation insurance, the 
     Secretary of Transportation may make, during the period when 
     a claim for such loss is pending with the Secretary of 
     Transportation, any required periodic payments owed by the 
     insured party to a lessor or mortgagee of such aircraft. Such 
     payments shall commence not later than 30 days following the 
     date of the presentment of the claim for the loss of the 
     aircraft hull to the Secretary of Transportation. If the 
     Secretary of Transportation determines that the claim is 
     payable, any amount paid under this paragraph arising from 
     such claim shall be credited against the amount payable under 
     the aviation insurance. If the Secretary of Transportation 
     determines that the claim is not payable, any amount paid 
     under this paragraph arising from such claim shall constitute 
     a debt to the United States, payable to the insurance fund. 
     Any such amounts so returned to the United States shall be 
     promptly credited to the fund or account from which the 
     payments were made under this paragraph.
       ``(b) Source of Funds for Payment of Indemnity.--The 
     Secretary of Defense may pay an indemnity described in 
     subsection (a) from any funds available to the Department of 
     Defense for operation and maintenance, and such sums as may 
     be necessary for payment of such indemnity are hereby 
     authorized to be transferred to the Secretary of 
     Transportation for such purpose.
       ``(c) Notice to Congress.--In the event of a loss that is 
     covered by defense-related aviation insurance in the case of 
     an incident in which the covered loss is (or is expected to 
     be) in an amount in excess of $1,000,000, the Secretary of 
     Defense shall submit to Congress--
       ``(1) notification of the loss as soon after the occurrence 
     of the loss as possible and in no event more than 30 days 
     after the date of the loss; and
       ``(2) semiannual reports thereafter updating the 
     information submitted under paragraph (1) and showing with 
     respect to losses arising from such incident the total amount 
     expended to cover such losses, the source of those funds, 
     pending litigation, and estimated total cost to the 
     Government.
       ``(d) Implementing Matters.--(1) Payment of indemnification 
     under this section is not subject to section 2214 or 2215 of 
     this title or any other provision of law requiring 
     notification to Congress before funds may be transferred.
       ``(2) Consolidation of claims arising from the same 
     incident is not required before indemnification of the 
     Secretary of Transportation for payment of a claim may be 
     made under this section.
       ``(e) Construction With Other Transfer Authority.--
     Authority to transfer funds under this section is in addition 
     to any other authority provided by law to transfer funds 
     (whether enacted before, on, or after the date of the 
     enactment of this section) and is not subject to any dollar 
     limitation or notification requirement contained in any other 
     such authority to transfer funds.
       ``(f) Annual Report on Contingent Liabilities.--Not later 
     than March 1 of each year, the Secretary of Defense shall 
     submit to Congress a report setting forth the current amount 
     of the contingent outstanding liability of the United States 
     under the insurance program under chapter 443 of title 49.
       ``(g) Definitions.--In this section:
       ``(1) Defense-related aviation insurance.--The term 
     `defense-related aviation insurance' means aviation insurance 
     and reinsurance provided through policies issued by the 
     Secretary of Transportation under chapter 443 of title 49 
     that pursuant to section 44305(b) of that title is provided 
     by that Secretary without premium at the request of the 
     Secretary of Defense and is covered by an indemnity agreement 
     between the Secretary of Transportation and the Secretary of 
     Defense.
       ``(2) Loss.--The term `loss' includes damage to or 
     destruction of property, personal injury or death, and other 
     liabilities and expenses covered by the defense-related 
     aviation insurance.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:
``9514. Indemnification of Department of Transportation for losses 
              covered by defense-related aviation insurance.''.
       (b) Vessel War Risk Insurance.--(1) Chapter 157 of title 
     10, United States Code, is amended by adding after section 
     2644, as redesignated by section 906, the following new 
     section:

     ``Sec. 2645. Indemnification of Department of Transportation 
       for losses covered by vessel war risk insurance

       ``(a) Prompt Indemnification Required.--(1) In the event of 
     a loss that is covered by vessel war risk insurance, the 
     Secretary of Defense shall promptly indemnify the Secretary 
     of Transportation for the amount of the loss consistent with 
     the indemnification agreement between the two Secretaries 
     that underlies such insurance. The Secretary of Defense shall 
     make such indemnification--
       ``(A) in the case of a claim for the loss of a vessel, not 
     later than 90 days after the date on which the Secretary of 
     Transportation determines the claim to be payable or that 
     amounts are due under the policy that provided the vessel war 
     risk insurance; and
       ``(B) in the case of any other claim, not later than 180 
     days after the date on which on which the Secretary of 
     Transportation determines the claim to be payable.
       ``(2) When there is a loss of a vessel that is (or may be) 
     covered by vessel war risk insurance, the Secretary of 
     Transportation may make, during the period when a claim for 
     such loss is pending with the Secretary of Transportation, 
     any required periodic payments owed by the insured party to a 
     lessor or mortgagee of such vessel. Such payments shall 
     commence not later than 30 days following the date of the 
     presentment of the claim for the loss of the vessel to the 
     Secretary of Transportation. If the Secretary of 
     Transportation determines that the claim is payable, any 
     amount paid under this paragraph arising from such claim 
     shall be credited against the amount payable under the vessel 
     war risk insurance. If the Secretary of Transportation 
     determines that the claim is not payable, any amount paid 
     under this paragraph arising from such claim shall constitute 
     a debt to the United States, payable to the insurance fund. 
     Any such amounts so returned to the United States shall be 
     promptly credited to the fund or account from which the 
     payments were made under this paragraph.
       ``(b) Source of Funds for Payment of Indemnity.--The 
     Secretary of Defense may pay an indemnity described in 
     subsection (a) from any funds available to the Department of 
     Defense for operation and maintenance, and such sums as may 
     be necessary for payment of such indemnity are hereby 
     authorized to be transferred to the Secretary of 
     Transportation for such purpose.

[[Page H9060]]

       ``(c) Deposit of Funds.--Any amount transferred to the 
     Secretary of Transportation under this section shall be 
     deposited in, and merged with amounts in, the Vessel War Risk 
     Insurance Fund as provided in the second sentence of section 
     1208(a) of the Merchant Marine Act, 1936 (46 U.S.C. App. 
     1288(a)).
       ``(d) Notice to Congress.--In the event of a loss that is 
     covered by vessel war risk insurance in the case of an 
     incident in which the covered loss is (or is expected to be) 
     in an amount in excess of $1,000,000, the Secretary of 
     Defense shall submit to Congress--
       ``(1) notification of the loss as soon after the occurrence 
     of the loss as possible and in no event more than 30 days 
     after the date of the loss; and
       ``(2) semiannual reports thereafter updating the 
     information submitted under paragraph (1) and showing with 
     respect to losses arising from such incident the total amount 
     expended to cover such losses, the source of such funds, 
     pending litigation, and estimated total cost to the 
     Government.
       ``(e) Implementing Matters.--(1) Payment of indemnification 
     under this section is not subject to section 2214 or 2215 of 
     this title or any other provision of law requiring 
     notification to Congress before funds may be transferred.
       ``(2) Consolidation of claims arising from the same 
     incident is not required before indemnification of the 
     Secretary of Transportation for payment of a claim may be 
     made under this section.
       ``(f) Construction With Other Transfer Authority.--
     Authority to transfer funds under this section is in addition 
     to any other authority provided by law to transfer funds 
     (whether enacted before, on, or after the date of the 
     enactment of this section) and is not subject to any dollar 
     limitation or notification requirement contained in any other 
     such authority to transfer funds.
       ``(f) Annual Report on Contingent Liabilities.--Not later 
     than March 1 of each year, the Secretary of Defense shall 
     submit to Congress a report setting forth the current amount 
     of the contingent outstanding liability of the United States 
     under the vessel war risk insurance program under title XII 
     of the Merchant Marine Act, 1936 (46 U.S.C. App. 1281 et 
     seq.).
       ``(h) Definitions.--In this section:
       ``(1) Vessel war risk insurance.--The term `vessel war risk 
     insurance' means insurance and reinsurance provided through 
     policies issued by the Secretary of Transportation under 
     title XII of the Merchant Marine Act, 1936 (46 U.S.C. App. 
     1281 et seq.), that is provided by that Secretary without 
     premium at the request of the Secretary of Defense and is 
     covered by an indemnity agreement between the Secretary of 
     Transportation and the Secretary of Defense.
       ``(2) Vessel war risk insurance fund.--The term `Vessel War 
     Risk Insurance Fund' means the insurance fund referred to in 
     the first sentence of section 1208(a) of the Merchant Marine 
     Act, 1936 (46 U.S.C. App. 1288(a)).
       ``(3) Loss.--The term `loss' includes damage to or 
     destruction of property, personal injury or death, and other 
     liabilities and expenses covered by the vessel war risk 
     insurance.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding after the item relating to section 2644, 
     as added by section 906, the following new item:
``2645. Indemnification of Department of Transportation for losses 
              covered by vessel war risk insurance.''.

     SEC. 1080. DESIGNATION OF MEMORIAL AS NATIONAL D-DAY 
                   MEMORIAL.

       (a) Designation.--The memorial to be constructed by the 
     National D-Day Memorial Foundation in Bedford, Virginia, is 
     hereby designated as a national memorial to be known as the 
     ``National D-Day Memorial''. The memorial shall serve to 
     honor the members of the Armed Forces of the United States 
     who served in the liberation of Normandy, France, in June 
     1944.
       (b) Public Proclamation.--The President is requested and 
     urged to issue a public proclamation acknowledging the 
     designation of the memorial to be constructed by the National 
     D-Day Memorial Foundation in Bedford, Virginia, as the 
     National D-Day Memorial.
       (c) Maintenance of Memorial.--All expenses for maintenance 
     and care of the memorial shall be paid for with non-Federal 
     funds, including funds provided by the National D-Day 
     Memorial Foundation. The United States shall not be liable 
     for any expense incurred for the maintenance and care of the 
     memorial.

     SEC. 1081. SENSE OF CONGRESS REGARDING SEMICONDUCTOR TRADE 
                   AGREEMENT BETWEEN UNITED STATES AND JAPAN.

       (a) Findings.--Congress makes the following findings:
       (1) The United States and Japan share a long and important 
     bilateral relationship which serves as an anchor of peace and 
     stability in the Asia Pacific region, an alliance which was 
     reaffirmed at the recent summit meeting between President 
     Clinton and Prime Minister Hashimoto in Tokyo.
       (2) The Japanese economy has experienced difficulty over 
     the past few years, demonstrating that it is no longer 
     possible for Japan, the world's second largest economy, to 
     use exports as the sole engine of economic growth, but that 
     the Government of Japan must promote deregulation of its 
     domestic economy in order to increase economic growth.
       (3) Deregulation of the Japanese economy requires 
     government attention to the removal of barriers to imports of 
     manufactured goods.
       (4) The United States-Japan Semiconductor Trade Agreement 
     has begun the process of deregulation in the semiconductor 
     sector and is opening the Japanese market to competitive 
     foreign products.
       (5) The United States-Japan Semiconductor Trade Agreement 
     has put in place both government-to-government and industry-
     to-industry mechanisms which have played a vital role in 
     allowing cooperation to replace conflict in this important 
     high technology sector.
       (6) The mechanisms include joint calculation of foreign 
     market share, deterrence of dumping, and promotion of 
     industrial cooperation in the design of foreign semiconductor 
     devices.
       (7) Because of these actions under the United States-Japan 
     Semiconductor Trade Agreement, the United States and Japan 
     today enjoy trade in semiconductors which is mutually 
     beneficial, harmonious, and free from the friction that once 
     characterized the semiconductor industry.
       (8) Because of structural barriers in Japan, a gap still 
     remains between the share of the world market for 
     semiconductor products outside Japan that the United States 
     and other foreign semiconductor sources are able to capture 
     through competitiveness and the share of the Japanese 
     semiconductor market that the United States and those other 
     sources are able to capture through competitiveness, and that 
     gap is consistent across the full range of semiconductor 
     products as well as a full range of end-use applications.
       (9) The competitiveness and health of the United States 
     semiconductor industry is of critical importance to the 
     overall economic well-being and high technology defense 
     capabilities of the United States.
       (10) The economic interests of both the United States and 
     Japan are best served by well functioning, open markets, 
     deterrence of dumping, and continuing good cooperative 
     relationships in all sectors, including semiconductors.
       (11) A strong and healthy and military and political 
     alliance between the United States and Japan requires 
     continuation of the industrial and economic cooperation 
     promoted by the United States-Japan Semiconductor Trade 
     Agreement.
       (12) President Clinton has called on the Government of 
     Japan to agree to a continuation of the United States-Japan 
     Semiconductor Trade Agreement beyond the current agreement's 
     expiration on July 31, 1996.
       (13) The Government of Japan has opposed any continuation 
     of the United States-Japan Semiconductor Trade Agreement to 
     promote cooperation in United States-Japan semiconductor 
     trade.
       (b) Sense of Congress.--On the basis of the findings 
     contained in subsection (a), it is the sense of Congress 
     that--
       (1) it is regrettable that the Government of Japan has 
     refused to consider continuation of the United States-Japan 
     Semiconductor Trade Agreement to ensure that cooperation 
     continues in the semiconductor sector beyond the expiration 
     of the agreement on July 31, 1996; and
       (2) the President should take all necessary and appropriate 
     actions to ensure the resumption and extension of the United 
     States-Japan Semiconductor Trade Agreement beyond July 31, 
     1996.
       (c) Definition.--For purposes of this section, the term 
     ``United States-Japan Semiconductor Trade Agreement'' refers 
     to the agreement between the United States and Japan 
     concerning trade in semiconductor products, with arrangement, 
     done by exchange of letters at Washington on June 11, 1991.

     SEC. 1082. AGREEMENTS FOR EXCHANGE OF DEFENSE PERSONNEL 
                   BETWEEN THE UNITED STATES AND FOREIGN 
                   COUNTRIES.

       (a) Authority to Enter into International Exchange 
     Agreements.--(1) The Secretary of Defense may enter into 
     international defense personnel exchange agreements.
       (2) For purposes of this section, an international defense 
     personnel exchange agreement is an agreement with the 
     government of an ally of the United States or another 
     friendly foreign country for the exchange of--
       (A) military and civilian personnel of the Department of 
     Defense; and
       (B) military and civilian personnel of the defense ministry 
     of that foreign government.
       (b) Assignment of Personnel.--(1) Pursuant to an 
     international defense personnel exchange agreement, personnel 
     of the defense ministry of a foreign government may be 
     assigned to positions in the Department of Defense and 
     personnel of the Department of Defense may be assigned to 
     positions in the defense ministry of such foreign government. 
     Positions to which exchanged personnel are assigned may 
     include positions of instructors.
       (2) An agreement for the exchange of personnel engaged in 
     research and development activities may provide for 
     assignment of Department of Defense personnel to positions in 
     private industry that support the defense ministry of the 
     host foreign government.
       (3) An individual may not be assigned to a position 
     pursuant to an international defense personnel exchange 
     agreement unless the assignment is acceptable to both 
     governments.
       (c) Reciprocity of Personnel Qualifications Required.--Each 
     government shall be

[[Page H9061]]

     required under an international defense personnel exchange 
     agreement to provide personnel with qualifications, training, 
     and skills that are essentially equal to those of the 
     personnel provided by the other government.
       (d) Payment of Personnel Costs.--(1) Each government shall 
     pay the salary, per diem, cost of living, travel costs, cost 
     of language or other training, and other costs for its own 
     personnel in accordance with the applicable laws and 
     regulations of such government.
       (2) Paragraph (1) does not apply to the following costs:
       (A) The cost of temporary duty directed by the host 
     government.
       (B) The cost of training programs conducted to familiarize, 
     orient, or certify exchanged personnel regarding unique 
     aspects of the assignments of the exchanged personnel.
       (C) Costs incident to the use of the facilities of the host 
     government in the performance of assigned duties.
       (e) Prohibited Conditions.--No personnel exchanged pursuant 
     to an agreement under this section may take or be required to 
     take an oath of allegiance to the host country or to hold an 
     official capacity in the government of such country.
       (f) Relationship to Other Authority.--The requirements in 
     subsections (c) and (d) shall apply in the exercise of any 
     authority of the Secretaries of the military departments to 
     enter into an agreement with the government of a foreign 
     country to provide for the exchange of members of the armed 
     forces and military personnel of the foreign country. The 
     Secretary of Defense may prescribe regulations for the 
     application of such subsections in the exercise of such 
     authority.

     SEC. 1083. SENSE OF SENATE REGARDING BOSNIA AND HERZEGOVINA.

       It is the sense of the Senate that, notwithstanding any 
     other provision of law, in order to maximize the amount of 
     equipment provided to the Government of Bosnia and 
     Herzegovina under the authority contained in section 540 of 
     the Foreign Operations, Export Financing, and Related 
     Programs Appropriations Act, 1996 (Public Law 104-107; 110 
     Stat. 737), the price of the transferred equipment shall not 
     exceed the lowest level at which the same or similar 
     equipment has been transferred to any other country under any 
     other United States Government program.

     SEC. 1084. DEFENSE BURDENSHARING.

       (a) Efforts To Increase Allied Burdensharing.--The 
     President shall seek to have each nation that has cooperative 
     military relations with the United States (including security 
     agreements, basing arrangements, or mutual participation in 
     multinational military organizations or operations) take one 
     or more of the following actions:
       (1) Increase its financial contributions to the payment of 
     the nonpersonnel costs incurred by the United States 
     Government for stationing United States military personnel in 
     that nation, with a goal of achieving by September 30, 2000, 
     75 percent of such costs. An increase in financial 
     contributions by any nation under this paragraph may include 
     the elimination of taxes, fees, or other charges levied on 
     United States military personnel, equipment, or facilities 
     stationed in that nation.
       (2) Increase its annual budgetary outlays for national 
     defense as a percentage of its gross domestic product by 10 
     percent or at least to a level commensurate to that of the 
     United States by September 30, 1997.
       (3) Increase its annual budgetary outlays for foreign 
     assistance (to promote democratization, economic 
     stabilization, transparency arrangements, defense economic 
     conversion, respect for the rule of law, and internationally 
     recognized human rights) by 10 percent or at least to a level 
     commensurate to that of the United States by September 30, 
     1997.
       (4) Increase the amount of military assets (including 
     personnel, equipment, logistics, support and other resources) 
     that it contributes, or would be prepared to contribute, to 
     multinational military activities worldwide.
       (b) Authorities to Encourage Actions by United States 
     Allies.--In seeking the actions described in subsection (a) 
     with respect to any nation, or in response to a failure by 
     any nation to undertake one or more of such actions, the 
     President may take any of the following measures to the 
     extent otherwise authorized by law:
       (1) Reduce the end strength level of members of the Armed 
     Forces assigned to permanent duty ashore in that nation.
       (2) Impose on that nation fees or other charges similar to 
     those that such nation imposes on United States forces 
     stationed in that nation.
       (3) Reduce (through rescission, impoundment, or other 
     appropriate procedures as authorized by law) the amount the 
     United States contributes to the NATO Civil Budget, Military 
     Budget, or Security Investment Program.
       (4) Suspend, modify, or terminate any bilateral security 
     agreement the United States has with that nation, consistent 
     with the terms of such agreement.
       (5) Reduce (through rescission, impoundment or other 
     appropriate procedures as authorized by law) any United 
     States bilateral assistance appropriated for that nation.
       (6) Take any other action the President determines to be 
     appropriate as authorized by law.
       (c) Report on Progress in Increasing Allied 
     Burdensharing.--Not later than March 1, 1997, the Secretary 
     of Defense shall submit to Congress a report on--
       (1) steps taken by other nations to complete the actions 
     described in subsection (a);
       (2) all measures taken by the President, including those 
     authorized in subsection (b), to achieve the actions 
     described in subsection (a); and
       (3) the budgetary savings to the United States that are 
     expected to accrue as a result of the steps described under 
     paragraph (1).
       (d) Report on National Security Bases for Forward 
     Deployment and Burdensharing Relationships.--(1) In order to 
     ensure the best allocation of budgetary resources, the 
     President shall undertake a review of the status of elements 
     of the United States Armed Forces that are permanently 
     stationed outside the United States. The review shall include 
     an assessment of the following:
       (A) The alliance requirements that are to be found in 
     agreements between the United States and other countries.
       (B) The national security interests that support 
     permanently stationing elements of the United States Armed 
     Forces outside the United States.
       (C) The stationing costs associated with the forward 
     deployment of elements of the United States Armed Forces.
       (D) The alternatives available to forward deployment (such 
     as material prepositioning, enhanced airlift and sealift, or 
     joint training operations) to meet such alliance requirements 
     or national security interests, with such alternatives 
     identified and described in detail.
       (E) The costs and force structure configurations associated 
     with such alternatives to forward deployment.
       (F) The financial contributions that allies of the United 
     States make to common defense efforts (to promote 
     democratization, economic stabilization, transparency 
     arrangements, defense economic conversion, respect for the 
     rule of law, and internationally recognized human rights).
       (G) The contributions that allies of the United States make 
     to meeting the stationing costs associated with the forward 
     deployment of elements of the United States Armed Forces.
       (H) The annual expenditures of the United States and its 
     allies on national defense, and the relative percentages of 
     each nation's gross domestic product constituted by those 
     expenditures.
       (2) The President shall submit to Congress a report on the 
     review under paragraph (1). The report shall be submitted not 
     later than March 1, 1997, in classified and unclassified 
     form.
       (e) Report Date.--Section 1003(c) of Public Law 98-515 is 
     amended by striking out ``each year'' and inserting ``by 
     March 1, 1998, and every other year thereafter''.
             TITLE XI--NATIONAL IMAGERY AND MAPPING AGENCY
Sec. 1101. Short title.
Sec. 1102. Findings.
Sec. 1103. Role of Director of Central Intelligence in appointment and 
              evaluation of certain intelligence officials.

                  Subtitle A--Establishment of Agency

Sec. 1111. Establishment.
Sec. 1112. Missions and authority.
Sec. 1113. Transfers of personnel and assets.
Sec. 1114. Compatibility with authority under the National Security Act 
              of 1947.
Sec. 1115. Creditable civilian service for career conditional employees 
              of the Defense Mapping Agency.
Sec. 1116. Saving provisions.
Sec. 1117. Definitions.
Sec. 1118. Authorization of appropriations.

         Subtitle B--Conforming Amendments and Effective Dates

Sec. 1121. Redesignation and repeals.
Sec. 1122. Reference amendments.
Sec. 1123. Headings and clerical amendments.
Sec. 1124. Effective date.

     SEC. 1101. SHORT TITLE.

       This title may be cited as the ``National Imagery and 
     Mapping Agency Act of 1996''.

     SEC. 1102. FINDINGS.

       Congress makes the following findings:
       (1) There is a need within the Department of Defense and 
     the Intelligence Community of the United States to provide a 
     single agency focus for the growing number and diverse types 
     of customers for imagery and geospatial information resources 
     within the Government, to ensure visibility and 
     accountability for those resources, and to harness, leverage, 
     and focus rapid technological developments to serve the 
     imagery, imagery intelligence, and geospatial information 
     customers.
       (2) There is a need for a single Government agency to 
     solicit and advocate the needs of that growing and diverse 
     pool of customers.
       (3) A single combat support agency dedicated to imagery, 
     imagery intelligence, and geospatial information could act as 
     a focal point for support of all imagery intelligence and 
     geospatial information customers, including customers in the 
     Department of Defense, the Intelligence Community, and 
     related agencies outside of the Department of Defense.
       (4) Such an agency would best serve the needs of the 
     imagery, imagery intelligence, and geospatial information 
     customers if it were organized--

[[Page H9062]]

       (A) to carry out its mission responsibilities under the 
     authority, direction, and control of the Secretary of 
     Defense, with the advice of the Chairman of the Joint Chiefs 
     of Staff; and
       (B) to carry out its responsibilities to national 
     intelligence customers in accordance with policies and 
     priorities established by the Director of Central 
     Intelligence.

     SEC. 1103. ROLE OF DIRECTOR OF CENTRAL INTELLIGENCE IN 
                   APPOINTMENT AND EVALUATION OF CERTAIN 
                   INTELLIGENCE OFFICIALS.

       (a) In General.--Section 201 of title 10, United States 
     Code, is amended to read as follows:

     ``Sec. 201. Certain intelligence officials: consultation and 
       concurrence regarding appointments; evaluation of 
       performance

       ``(a) Consultation Regarding Appointment.--Before 
     submitting a recommendation to the President regarding the 
     appointment of an individual to the position of Director of 
     the Defense Intelligence Agency, the Secretary of Defense 
     shall consult with the Director of Central Intelligence 
     regarding the recommendation.
       ``(b) Concurrence in Appointment.--(1) Before submitting a 
     recommendation to the President regarding the appointment of 
     an individual to a position referred to in paragraph (2), the 
     Secretary of Defense shall seek the concurrence of the 
     Director of Central Intelligence in the recommendation. If 
     the Director does not concur in the recommendation, the 
     Secretary may make the recommendation to the President 
     without the Director's concurrence, but shall include in the 
     recommendation a statement that the Director does not concur 
     in the recommendation.
       ``(2) Paragraph (1) applies to the following positions:
       ``(A) The Director of the National Security Agency.
       ``(B) The Director of the National Reconnaissance Office.
       ``(C) The Director of the National Imagery and Mapping 
     Agency.''.
       ``(c) Performance Evaluations.--(1) The Director of Central 
     Intelligence shall provide annually to the Secretary of 
     Defense, for the Secretary's consideration, an evaluation of 
     the performance of the individuals holding the positions 
     referred to in paragraph (2) in fulfilling their respective 
     responsibilities with regard to the National Foreign 
     Intelligence Program.
       ``(2) The positions referred to in paragraph (1) are the 
     following:
       ``(A) The Director of the National Security Agency.
       ``(B) The Director of the National Reconnaissance Office.
       ``(C) The Director of the National Imagery and Mapping 
     Agency.''.
       (b) Clerical Amendment.--The item relating to section 201 
     in the table of sections at the beginning of subchapter II of 
     chapter 8 of such title is amended to read as follows:
``201. Certain intelligence officials: consultation and concurrence 
              regarding appointments; evaluation of performance.''.
                  Subtitle A--Establishment of Agency

     SEC. 1111. ESTABLISHMENT.

       (a) Establishment.--There is hereby established in the 
     Department of Defense a Defense Agency to be known as the 
     National Imagery and Mapping Agency.
       (b) Transfer of Functions From Department of Defense 
     Entities.--The missions and functions of the following 
     elements of the Department of Defense are transferred to the 
     National Imagery and Mapping Agency:
       (1) The Defense Mapping Agency.
       (2) The Central Imagery Office.
       (3) Other elements of the Department of Defense as 
     specified in the classified annex to this Act.
       (c) Transfer of Functions From Central Intelligence 
     Agency.--The missions and functions of the following elements 
     of the Central Intelligence Agency are transferred to the 
     National Imagery and Mapping Agency:
       (1) The National Photographic Interpretation Center.
       (2) Other elements of the Central Intelligence Agency as 
     specified in the classified annex to this Act.
       (d) Preservation of Level and Quality of Imagery 
     Intelligence Support to All-Source Analysis and Production.--
     In managing the establishment of the National Imagery and 
     Mapping Agency, the Secretary of Defense, in consultation 
     with the Director of Central Intelligence, shall ensure that 
     imagery intelligence support provided to all-source analysis 
     and production is in no way degraded or compromised.

     SEC. 1112. MISSIONS AND AUTHORITY.

       (a) Agency Charter.--Part I of subtitle A of title 10, 
     United States Code, is amended--
       (1) by redesignating chapter 22 as chapter 23; and
       (2) by inserting after chapter 21 the following new chapter 
     22:

           ``CHAPTER 22--NATIONAL IMAGERY AND MAPPING AGENCY

``Subchapter                                                       Sec.
``I. Missions and Authority.....................................441....

``II. Maps, Charts, and Geodetic Products.......................451....

``III. Personnel Management.....................................461....

``IV. Definitions...............................................467....

                 ``SUBCHAPTER I--MISSIONS AND AUTHORITY

``Sec.
``441. Establishment.
``442. Missions.
``443. Imagery intelligence and geospatial information: support for 
              foreign countries
``444. Support from Central Intelligence Agency.
``445. Protection of agency identifications and organizational 
              information.

     ``Sec. 441. Establishment

       ``(a) Establishment.--The National Imagery and Mapping 
     Agency is a combat support agency of the Department of 
     Defense and has significant national missions.
       ``(b) Director.--(1) The Director of the National Imagery 
     and Mapping Agency is the head of the agency.
       ``(2) Upon a vacancy in the position of Director, the 
     Secretary of Defense shall recommend to the President an 
     individual for appointment to the position.
       ``(3) If an officer of the armed forces on active duty is 
     appointed to the position of Director, the position shall be 
     treated as having been designated by the President as a 
     position of importance and responsibility for purposes of 
     section 601 of this title and shall carry the grade of 
     lieutenant general, or, in the case of an officer of the 
     Navy, vice admiral.
       ``(c) Director of Central Intelligence Collection Tasking 
     Authority.--Unless otherwise directed by the President, the 
     Director of Central Intelligence shall have authority (except 
     as otherwise agreed by the Director and the Secretary of 
     Defense) to--
       ``(1) approve collection requirements levied on national 
     imagery collection assets;
       ``(2) determine priorities for such requirements; and
       ``(3) resolve conflicts in such priorities.
       ``(d) Availability and Continued Improvement of Imagery 
     Intelligence Support to All-Source Analysis and Production 
     Function.--The Secretary of Defense, in consultation with the 
     Director of Central Intelligence, shall take all necessary 
     steps to ensure the full availability and continued 
     improvement of imagery intelligence support for all-source 
     analysis and production.

     ``Sec. 442. Missions

       ``(a) National Security Missions.--(1) The National Imagery 
     and Mapping Agency shall, in support of the national security 
     objectives of the United States, provide the following:
       ``(A) Imagery.
       ``(B) Imagery intelligence.
       ``(C) Geospatial information.
       ``(2) Imagery, intelligence, and information provided in 
     carrying out paragraph (1) shall be timely, relevant, and 
     accurate.
       ``(b) Navigation Information.--The National Imagery and 
     Mapping Agency shall improve means of navigating vessels of 
     the Navy and the merchant marine by providing, under the 
     authority of the Secretary of Defense, accurate and 
     inexpensive nautical charts, sailing directions, books on 
     navigation, and manuals of instructions for the use of all 
     vessels of the United States and of navigators generally.
       ``(c) Maps, Charts, Etc.--The National Imagery and Mapping 
     Agency shall prepare and distribute maps, charts, books, and 
     geodetic products as authorized under subchapter II of this 
     chapter.
       ``(d) National Missions.--The National Imagery and Mapping 
     Agency also has national missions as specified in section 
     120(a) of the National Security Act of 1947.
       ``(e) Systems.--The National Imagery and Mapping Agency 
     may, in furtherance of a mission of the Agency, design, 
     develop, deploy, operate, and maintain systems related to the 
     processing and dissemination of imagery intelligence and 
     geospatial information that may be transferred to, accepted 
     or used by, or used on behalf of--
       ``(1) the armed forces, including any combatant command, 
     component of a combatant command, joint task force, or 
     tactical unit; or
       ``(2) any other department or agency of the United States.

     ``Sec. 443. Imagery intelligence and geospatial information: 
       support for foreign countries

       ``(a) Use of Appropriated Funds.--The Director of the 
     National Imagery and Mapping Agency may use appropriated 
     funds available to the National Imagery and Mapping Agency to 
     provide foreign countries with imagery intelligence and 
     geospatial information support.
       ``(b) Use of Funds Other Than Appropriated Funds.--The 
     Director may use funds other than appropriated funds to 
     provide foreign countries with imagery intelligence and 
     geospatial information support, notwithstanding provisions of 
     law relating to the expenditure of funds of the United 
     States, except that--
       ``(1) no such funds may be expended, in whole or in part, 
     by or for the benefit of the National Imagery and Mapping 
     Agency for a purpose for which Congress had previously denied 
     funds.
       ``(2) proceeds from the sale of imagery intelligence or 
     geospatial information items may be used only to purchase 
     replacement items similar to the items that are sold; and
       ``(3) the authority provided by this subsection may not be 
     used to acquire items or services for the principal benefit 
     of the United States.
       ``(c) Accommodation Procurements.--The authority under this 
     section may be exercised to conduct accommodation 
     procurements on behalf of foreign countries.
       ``(d) Coordination With Director of Central Intelligence.--
     The Director of the Agency shall coordinate with the Director 
     of

[[Page H9063]]

     Central Intelligence any action under this section that 
     involves imagery intelligence or intelligence products or 
     involves providing support to an intelligence or security 
     service of a foreign country.

     ``Sec. 444. Support from Central Intelligence Agency

       ``(a) Support Authorized.--The Director of Central 
     Intelligence may provide support in accordance with this 
     section to the Director of the National Imagery and Mapping 
     Agency. The Director of the National Imagery and Mapping 
     Agency may accept support provided under this section.
       ``(b) Administrative and Contract Services.--(1) In 
     furtherance of the national intelligence effort, the Director 
     of Central Intelligence may provide administrative and 
     contract services to the National Imagery and Mapping Agency 
     as if that agency were an organizational element of the 
     Central Intelligence Agency.
       ``(2) Services provided under paragraph (1) may include the 
     services of security police. For purposes of section 15 of 
     the Central Intelligence Agency Act of 1949 (50 U.S.C. 403o), 
     an installation of the National Imagery and Mapping Agency 
     that is provided security police services under this section 
     shall be considered an installation of the Central 
     Intelligence Agency.
       ``(3) Support provided under this subsection shall be 
     provided under terms and conditions agreed upon by the 
     Secretary of Defense and the Director of Central 
     Intelligence.
       ``(c) Detail of Personnel.--The Director of Central 
     Intelligence may detail personnel of the Central Intelligence 
     Agency indefinitely to the National Imagery and Mapping 
     Agency without regard to any limitation on the duration of 
     interagency details of Federal Government personnel.
       ``(d) Reimbursable or Nonreimbursable Support.--Support 
     under this section may be provided and accepted on either a 
     reimbursable basis or a nonreimbursable basis.
       ``(e) Authority To Transfer Funds.--(1) The Director of the 
     National Imagery and Mapping Agency may transfer funds 
     available for that agency to the Director of Central 
     Intelligence for the Central Intelligence Agency.
       ``(2) The Director of Central Intelligence--
       ``(A) may accept funds transferred under paragraph (1); and
       ``(B) shall expend such funds, in accordance with the 
     Central Intelligence Agency Act of 1949 (50 U.S.C. 403a et 
     seq.), to provide administrative and contract services or 
     detail personnel to the National Imagery and Mapping Agency 
     under this section.

     ``Sec. 445. Protection of agency identifications and 
       organizational information

       ``(a) Unauthorized Use of Agency Name, Initials, or Seal.--
     (1) Except with the written permission of the Secretary of 
     Defense, no person may knowingly use, in connection with any 
     merchandise, retail product, impersonation, solicitation, or 
     commercial activity in a manner reasonably calculated to 
     convey the impression that such use is approved, endorsed, or 
     authorized by the Secretary of Defense, any of the following:
       ``(A) The words `National Imagery and Mapping Agency', the 
     initials `NIMA', or the seal of the National Imagery and 
     Mapping Agency.
       ``(B) The words `Defense Mapping Agency', the initials 
     `DMA', or the seal of the Defense Mapping Agency.
       ``(C) Any colorable imitation of such words, initials, or 
     seals.
       ``(2) Whenever it appears to the Attorney General that any 
     person is engaged or about to engage in an act or practice 
     which constitutes or will constitute conduct prohibited by 
     paragraph (1), the Attorney General may initiate a civil 
     proceeding in a district court of the United States to enjoin 
     such act or practice. Such court shall proceed as soon as 
     practicable to a hearing and determination of such action and 
     may, at any time before such final determination, enter such 
     restraining orders or prohibitions, or take such other action 
     as is warranted, to prevent injury to the United States or to 
     any person or class of persons for whose protection the 
     action is brought.

          ``SUBCHAPTER II--MAPS, CHARTS, AND GEODETIC PRODUCTS

``Sec.
``451. Maps, charts, and books.
``452. Pilot charts.
``453. Prices of maps, charts, and navigational publications.
``454. Exchange of mapping, charting, and geodetic data with foreign 
              countries and international organizations
``455. Maps, charts, and geodetic data: public availability; 
              exceptions.
``456. Civil actions barred.

                 ``SUBCHAPTER III--PERSONNEL MANAGEMENT

``Sec.
``461. Management rights.

     ``Sec. 461. Management rights

       ``(a) Scope.--If there is no obligation under the 
     provisions of chapter 71 of title 5 for the head of an agency 
     of the United States to consult or negotiate with a labor 
     organization on a particular matter by reason of that matter 
     being covered by a provision of law or a Governmentwide 
     regulation, the Director of the National Imagery and Mapping 
     Agency is not obligated to consult or negotiate with a labor 
     organization on that matter even if that provision of law or 
     regulation is inapplicable to the National Imagery and 
     Mapping Agency.
       ``(b) Bargaining Units.--The National Imagery and Mapping 
     Agency shall accord exclusive recognition to a labor 
     organization under section 7111 of title 5 only for a 
     bargaining unit that was recognized as appropriate for the 
     Defense Mapping Agency on the day before the date on which 
     employees and positions of the Defense Mapping Agency in that 
     bargaining unit became employees and positions of the 
     National Imagery and Mapping Agency under the National 
     Imagery and Mapping Agency Act of 1996 (title XI of the 
     National Defense Authorization Act for Fiscal Year 1997).
       ``(c) Termination of Bargaining Unit Coverage of Position 
     Modified To Affect National Security Directly.--(1) If the 
     Director of the National Imagery and Mapping Agency 
     determines that the responsibilities of a position within a 
     collective bargaining unit should be modified to include 
     intelligence, counterintelligence, investigative, or security 
     duties not previously assigned to that position and that the 
     performance of the newly assigned duties directly affects the 
     national security of the United States, then, upon such a 
     modification of the responsibilities of that position, the 
     position shall cease to be covered by the collective 
     bargaining unit and the employee in that position shall cease 
     to be entitled to representation by a labor organization 
     accorded exclusive recognition for that collective bargaining 
     unit.
       ``(2) A determination described in paragraph (1) that is 
     made by the Director of the National Imagery and Mapping 
     Agency may not be reviewed by the Federal Labor Relations 
     Authority or any court of the United States.

                      ``SUBCHAPTER IV--DEFINITIONS

``Sec.
``467. Definitions.

     ``Sec. 467. Definitions

       ``In this chapter:
       ``(1) The term `function' means any duty, obligation, 
     responsibility, privilege, activity, or program.
       ``(2)(A) The term `imagery' means, except as provided in 
     subparagraph (B), a likeness or presentation of any natural 
     or manmade feature or related object or activity and the 
     positional data acquired at the same time the likeness or 
     representation was acquired, including--
       ``(i) products produced by space-based national 
     intelligence reconnaissance systems; and
       ``(ii) likenesses or presentations produced by satellites, 
     airborne platforms, unmanned aerial vehicles, or other 
     similar means.
       ``(B) Such term does not include handheld or clandestine 
     photography taken by or on behalf of human intelligence 
     collection organizations.
       ``(3) The term `imagery intelligence' means the technical, 
     geographic, and intelligence information derived through the 
     interpretation or analysis of imagery and collateral 
     materials.
       ``(4) The term `geospatial information' means information 
     that identifies the geographic location and characteristics 
     of natural or constructed features and boundaries on the 
     earth and includes--
       ``(A) statistical data and information derived from, among 
     other things, remote sensing, mapping, and surveying 
     technologies;
       ``(B) mapping, charting, and geodetic data; and
       ``(C) geodetic products, as defined in section 455(c) of 
     this title.''.
       (b) Transfer of Defense Mapping Agency Provisions.--(1) 
     Sections 2792, 2793, 2794, 2795, 2796, and 2798 of title 10, 
     United States Code, are transferred to subchapter II of 
     chapter 22 of such title, as added by subsection (a), 
     inserted in that sequence in such subchapter following the 
     table of sections, and redesignated in accordance with the 
     following table:

Section                                                      Section as
transferred                                                redesignated
  2792.........................................................451 ....

  2793.........................................................452 ....

  2794.........................................................453 ....

  2795.........................................................454 ....

  2796.........................................................455 ....

  2798.........................................................456.....

       (2) Sections 451(1), 452, 453, 454, and 455 (in subsections 
     (a) and (b)(1)(C)), and 456 of title 10, United States Code, 
     as transferred and redesignated by paragraph (1), are amended 
     by striking out ``Defense Mapping Agency'' each place it 
     appears and inserting in lieu thereof ``National Imagery and 
     Mapping Agency''.
       (c) Oversight of Agency as a Combat Support Agency.--
     Section 193 of title 10, United States Code, is amended--
       (1) in subsection (d)--
       (A) by striking out the caption and inserting in lieu 
     thereof ``Review of National Security Agency and National 
     Imagery and Mapping Agency.--'';
       (B) in paragraph (1)--
       (i) by inserting ``and the National Imagery and Mapping 
     Agency'' after ``the National Security Agency''; and
       (ii) by striking out ``the Agency'' and inserting in lieu 
     thereof ``that the agencies''; and
       (C) in paragraph (2), by inserting ``and the National 
     Imagery and Mapping Agency'' after ``the National Security 
     Agency'';
       (2) in subsection (e)--
       (A) by striking out ``DIA and NSA'' in the caption and 
     inserting in lieu thereof the following: ``DIA, NSA, and 
     NIMA''; and
       (B) by striking out ``and the National Security Agency'' 
     and inserting in lieu thereof

[[Page H9064]]

     ``, the National Security Agency, and the National Imagery 
     and Mapping Agency''; and
       (3) in subsection (f), by striking out paragraph (4) and 
     inserting in lieu thereof the following:
       ``(4) The National Imagery and Mapping Agency.''.
       (d) Consolidation and Standardization of Exemptions From 
     Disclosure of Organizational and Personnel Information.--
     Chapter 21 of title 10, United States Code, is amended by 
     striking out sections 424 and 425 and inserting in lieu 
     thereof the following:

     ``Sec. 424. Disclosure of organizational and personnel 
       information: exemption for Defense Intelligence Agency, 
       National Reconnaissance Office, and National Imagery and 
       Mapping Agency

       ``(a) Exemption From Disclosure.--Except as required by the 
     President or as provided in subsection (c), no provision of 
     law shall be construed to require the disclosure of--
       ``(1) the organization or any function of an organization 
     of the Department of Defense named in subsection (b); or
       ``(2) the number of persons employed by or assigned or 
     detailed to any such organization or the name, official 
     title, occupational series, grade, or salary of any such 
     person.
       ``(b) Covered Organizations.--This section applies to the 
     following organizations of the Department of Defense:
       ``(1) The Defense Intelligence Agency.
       ``(2) The National Reconnaissance Office.
       ``(3) The National Imagery and Mapping Agency.
       ``(c) Provision of Information to Congress.--Subsection (a) 
     does not apply with respect to the provision of information 
     to Congress.''.
       (e) Special Printing Authority for Agency.--(1) Section 
     207(a)(2)(B) of the Legislative Branch Appropriations Act, 
     1993 (Public Law 102-392; 44 U.S.C. 501 note), is amended by 
     inserting ``National Imagery and Mapping Agency,'' after 
     ``Defense Intelligence Agency,''.
       (2) Section 1336 of title 44, United States Code, is 
     amended--
       (A) by striking out ``Secretary of the Navy'' and inserting 
     in lieu thereof ``Director of the National Imagery and 
     Mapping Agency''; and
       (B) by striking out ``United States Naval Oceanographic 
     Office'' and inserting in lieu thereof ``National Imagery and 
     Mapping Agency''.

     SEC. 1113. TRANSFERS OF PERSONNEL AND ASSETS.

       (a) Personnel and Assets.--Subject to subsections (b) and 
     (c), the personnel, assets, unobligated balances of 
     appropriations and authorizations of appropriations, and, to 
     the extent jointly determined appropriate by the Secretary of 
     Defense and Director of Central Intelligence, obligated 
     balances of appropriations and authorizations of 
     appropriations employed, used, held, arising from, or 
     available in connection with the missions and functions 
     transferred under section 1111(b) or section 1111(c) are 
     transferred to the National Imagery and Mapping Agency. 
     Transfers of appropriations from the Central Intelligence 
     Agency under this subsection shall be made in accordance with 
     section 1531 of title 31, United States Code.
       (b) Determination of CIA Positions To Be Transferred.--Not 
     earlier than two years after the effective date of this 
     subtitle, the Secretary of Defense and the Director of 
     Central Intelligence shall determine which, if any, positions 
     and personnel of the Central Intelligence Agency are to be 
     transferred to the National Imagery and Mapping Agency. The 
     positions to be transferred, and the employees serving in 
     such positions, shall be transferred to the National Imagery 
     and Mapping Agency under terms and conditions prescribed by 
     the Secretary of Defense and the Director of Central 
     Intelligence.
       (c) Rule for CIA Imagery Activities Only Partially 
     Transferred.--If the National Photographic Interpretation 
     Center of the Central Intelligence Agency or any imagery-
     related activity of the Central Intelligence Agency 
     authorized to be performed by the National Imagery and 
     Mapping Agency is not completely transferred to the National 
     Imagery and Mapping Agency, the Secretary of Defense and the 
     Director of Central Intelligence shall--
       (1) jointly determine which, if any, contracts, leases, 
     property, and records employed, used, held, arising from, 
     available to, or otherwise relating to such Center or 
     activity is to be transferred to the National Imagery and 
     Intelligence Agency; and
       (2) provide by written agreement for the transfer of such 
     items.

     SEC. 1114. COMPATIBILITY WITH AUTHORITY UNDER THE NATIONAL 
                   SECURITY ACT OF 1947.

       (a) Agency Functions.--Paragraph (2) of section 105(b) of 
     the National Security Act of 1947 (50 U.S.C. 403-5(b)) is 
     amended to read as follows:
       ``(2) through the National Imagery and Mapping Agency 
     (except as otherwise directed by the President or the 
     National Security Council), with appropriate representation 
     from the intelligence community, the continued operation of 
     an effective unified organization within the Department of 
     Defense--
       ``(A) for carrying out tasking of imagery collection;
       ``(B) for the coordination of imagery processing and 
     exploitation activities;
       ``(C) for ensuring the dissemination of imagery in a timely 
     manner to authorized recipients; and
       ``(D) notwithstanding any other provision of law, for--
       ``(i) prescribing technical architecture and standards 
     related to imagery intelligence and geospatial information 
     and ensuring compliance with such architecture and standards; 
     and
       ``(ii) developing and fielding systems of common concern 
     related to imagery intelligence and geospatial 
     information;''.
       (b) National Mission.--Title I of such Act (50 U.S.C. 402 
     et seq.) is amended by adding at the end the following new 
     section:


       ``national mission of national imagery and mapping agency

       ``Sec. 120. (a) In General.--In addition to the Department 
     of Defense missions set forth in section 442 of title 10, 
     United States Code, the National Imagery and Mapping Agency 
     shall support the imagery requirements of the Department of 
     State and other departments and agencies of the United States 
     outside the Department of Defense.
       ``(b) Requirements and Priorities.--The Director of Central 
     Intelligence shall establish requirements and priorities 
     governing the collection of national intelligence by the 
     National Imagery and Mapping Agency under subsection (a).
       ``(c) Correction of Deficiencies.--The Director of Central 
     Intelligence shall develop and implement such programs and 
     policies as the Director and the Secretary of Defense jointly 
     determine necessary to review and correct deficiencies 
     identified in the capabilities of the National Imagery and 
     Mapping Agency to accomplish assigned national missions, 
     including support to the all-source analysis and production 
     process. The Director shall consult with the Secretary of 
     Defense on the development and implementation of such 
     programs and policies. The Secretary shall obtain the advice 
     of the Chairman of the Joint Chiefs of Staff regarding the 
     matters on which the Director and the Secretary are to 
     consult under the preceding sentence.''.
       (c) Tasking of Imagery Assets.--Title I of such Act is 
     further amended by adding at the end the following new 
     section:


                     ``collection tasking authority

       ``Sec. 121. Unless otherwise directed by the President, the 
     Director of Central Intelligence shall have authority (except 
     as otherwise agreed by the Director and the Secretary of 
     Defense) to--
       ``(1) approve collection requirements levied on national 
     imagery collection assets;
       ``(2) determine priorities for such requirements; and
       ``(3) resolve conflicts in such priorities.''.
       (d) Clerical Amendment.--The table of contents in the first 
     section of such Act is amended by inserting after the item 
     relating to section 109 the following new items:

``Sec. 120. National mission of National Imagery and Mapping Agency.
``Sec. 121. Collection tasking authority.''.

     SEC. 1115. CREDITABLE CIVILIAN SERVICE FOR CAREER CONDITIONAL 
                   EMPLOYEES OF THE DEFENSE MAPPING AGENCY.

       In the case of an employee of the National Imagery and 
     Mapping Agency who, on the day before the effective date of 
     this title, was an employee of the Defense Mapping Agency in 
     a career-conditional status, the continuous service of that 
     employee as an employee of the National Imagery and Mapping 
     Agency on and after such date shall be considered creditable 
     service for the purpose of any determination of the career 
     status of the employee.

     SEC. 1116. SAVING PROVISIONS.

       (a) Continuing Effect on Legal Documents.--All orders, 
     determinations, rules, regulations, permits, agreements, 
     international agreements, grants, contracts, leases, 
     certificates, licenses, registrations, privileges, and other 
     administrative actions--
       (1) which have been issued, made, granted, or allowed to 
     become effective by the President, any Federal agency or 
     official thereof, or by a court of competent jurisdiction, in 
     connection with any of the functions which are transferred 
     under this title or any function that the National Imagery 
     and Mapping Agency is authorized to perform by law, and
       (2) which are in effect at the time this title takes 
     effect, or were final before the effective date of this title 
     and are to become effective on or after the effective date of 
     this title, shall continue in effect according to their terms 
     until modified, terminated, superseded, set aside, or revoked 
     in accordance with law by the President, the Secretary of 
     Defense, the Director of the National Imagery and Mapping 
     Agency or other authorized official, a court of competent 
     jurisdiction, or by operation of law.
       (b) Proceedings Not Affected.--This title and the 
     amendments made by this title shall not affect any 
     proceedings, including notices of proposed rulemaking, or any 
     application for any license, permit, certificate, or 
     financial assistance pending before an element of the 
     Department of Defense or Central Intelligence Agency at the 
     time this title takes effect, with respect to function of 
     that element transferred by section 1122, but such 
     proceedings and applications shall be continued. Orders shall 
     be issued in such proceedings, appeals shall be taken 
     therefrom, and payments shall be made pursuant to such 
     orders, as if this title had not been enacted, and orders 
     issued in any such proceedings shall continue in effect until 
     modified, terminated, superseded, or revoked by a duly

[[Page H9065]]

     authorized official, by a court of competent jurisdiction, or 
     by operation of law. Nothing in this section shall be deemed 
     to prohibit the discontinuance or modification of any such 
     proceeding under the same terms and conditions and to the 
     same extent that such proceeding could have been discontinued 
     or modified if this title had not been enacted.

     SEC. 1117. DEFINITIONS.

       In this subtitle, the terms ``function'', ``imagery'', 
     ``imagery intelligence'', and ``geospatial information'' have 
     the meanings given those terms in section 467 of title 10, 
     United States Code, as added by section 1112.

     SEC. 1118. AUTHORIZATION OF APPROPRIATIONS.

       Funds are authorized to be appropriated for the National 
     Imagery and Mapping Agency for fiscal year 1997 in amounts 
     and for purposes, and subject to the terms, conditions, 
     limitations, restrictions, and requirements, that are set 
     forth in the Classified Annex to this Act.
         Subtitle B--Conforming Amendments and Effective Dates

     SEC. 1121. REDESIGNATION AND REPEALS.

       (a) Redesignation.--Chapter 23 of title 10, United States 
     Code (as redesignated by section 1112(a)(1)) is amended by 
     redesignating the sections in that chapter as sections 481 
     and 482, respectively.
       (b) Repeal of Superseded Law.--Chapter 167 of such title, 
     as amended by section 1112(b), is repealed.

     SEC. 1122. REFERENCE AMENDMENTS.

       (a) Title 5, United States Code.--Title 5, United States 
     Code, is amended as follows:
       (1) Central imagery office.--Sections 2302(a)(2)(C)(ii), 
     3132(a)(1)(B), 4301(1) (in clause (ii)), 4701(a)(1)(B), 
     5102(a)(1) (in clause (xi)), 5342(a)(1)(L), 6339(a)(1)(E), 
     and 7323(b)(2)(B)(i)(XIII) are amended by striking out 
     ``Central Imagery Office'' and inserting in lieu thereof 
     ``National Imagery and Mapping Agency''.
       (2) Director, central imagery office.--Section 
     6339(a)(2)(E) is amended by striking out ``Central Imagery 
     Office, the Director of the Central Imagery Office'' and 
     inserting in lieu thereof ``National Imagery and Mapping 
     Agency, the Director of the National Imagery and Mapping 
     Agency''.
       (b) Other Laws.--The following provisions of law are 
     amended by striking out ``Central Imagery Office'' and 
     inserting in lieu thereof ``National Imagery and Mapping 
     Agency'':
       (1) National security act of 1947.--Section 3(4)(E) of the 
     National Security Act of 1947 (50 U.S.C. 401a(4)(E).
       (2) Ethics in government act of 1978.--Section 105(a) of 
     the Ethics in Government Act of 1978 (Public Law 95-521; 5 
     U.S.C. App. 4).
       (3) Employee polygraph protection act.--Section 
     7(b)(2)(A)(i) of the Employee Polygraph Protection Act of 
     1988 (Public Law 100-347; 29 U.S.C. 2006(b)(2)(A)(i)).
       (c) Cross Reference.--Section 82 of title 14, United States 
     Code, is amended by striking out ``chapter 167'' and 
     inserting in lieu thereof ``subchapter II of chapter 22''.

     SEC. 1123. HEADINGS AND CLERICAL AMENDMENTS.

       (a) Title 10, United States Code.--
       (1) The table of chapters at the beginning of subtitle A of 
     title 10, United States Code, is amended--
       (A) by striking out the item relating to chapter 22 and 
     inserting in lieu thereof the following:

``22. National Imagery and Mapping Agency.....................441  ....

``23. Miscellaneous Studies and Reports......................471'';....

     and
       (B) by striking out the item relating to chapter 167.
       (2) The table of chapters at the beginning of part I of 
     such subtitle is amended by striking out the item relating to 
     chapter 22 and inserting in lieu thereof the following:

``22. National Imagery and Mapping Agency.....................441  ....

``23. Miscellaneous Studies and Reports......................471'';....

       (3) The table of chapters at the beginning of part IV of 
     such subtitle is amended by striking out the item relating to 
     chapter 167.
       (4) The items in the table of sections at the beginning of 
     chapter 23 of title 10, United States Code (as redesignated 
     by section 1112(a)(1)), are revised so as to reflect the 
     redesignations made by section 1121(a).
       (b) Title 44, United States Code.--
       (1) The heading of section 1336 of title 44, United States 
     Code, is amended to read as follows:

     ``Sec. 1336. National Imagery and Mapping Agency: special 
       publications''.

       (2) The item relating to that section in the tables of 
     sections at the beginning of chapter 13 of such title is 
     amended to read as follows:
``1336. National Imagery and Mapping Agency: special publications.''.

     SEC. 1124. EFFECTIVE DATE.

       This title and the amendments made by this title shall take 
     effect on October 1, 1996, or the date of the enactment of 
     this Act, whichever is later.
                TITLE XII--RESERVE FORCES REVITALIZATION

                TITLE XII--RESERVE FORCES REVITALIZATION

Sec. 1201. Short title.
Sec. 1202. Purpose.

                Subtitle A--Reserve Component Structure

Sec. 1211. Reserve component commands.
Sec. 1212. Reserve component chiefs.
Sec. 1213. Review of active duty and reserve general and flag officer 
              authorizations.
Sec. 1214. Guard and reserve technicians.

              Subtitle B--Reserve Component Accessibility

Sec. 1231. Report to Congress on measures to improve National Guard and 
              reserve ability to respond to emergencies.
Sec. 1232. Report to Congress concerning tax incentives for employers 
              of members of reserve components.
Sec. 1233. Report to Congress concerning income insurance program for 
              activated reservists.
Sec. 1234. Report to Congress concerning small business loans for 
              members released from reserve service during contingency 
              operations.

                 Subtitle C--Reserve Forces Sustainment

Sec. 1251. Report concerning tax deductibility of nonreimbursable 
              expenses.
Sec. 1252. Authority to pay transient housing charges for members 
              performing active duty for training.
Sec. 1253. Sense of Congress concerning quarters allowance during 
              service on active duty for training.
Sec. 1254. Sense of Congress concerning military leave policy.
Sec. 1255. Reserve Forces Policy Board.
Sec. 1256. Report on parity of benefits for active duty service and 
              reserve service.
Sec. 1257. Information on proposed funding for the Guard and Reserve 
              components in future-years defense programs.

     SEC. 1201. SHORT TITLE.

       This title may be cited as the ``Reserve Forces 
     Revitalization Act of 1996''.

     SEC. 1202. PURPOSE.

       The purpose of this title is to revise the basic statutory 
     authorities governing the organization and administration of 
     the reserve components of the Armed Forces in order to 
     recognize the realities of reserve component partnership in 
     the Total Force and to better prepare the American citizen-
     soldier, sailor, airman, and Marine in time of peace for 
     duties in war.
                Subtitle A--Reserve Component Structure

     SEC. 1211. RESERVE COMPONENT COMMANDS.

       (a) Establishment.--(1) Part I of subtitle E of title 10, 
     United States Code, is amended by inserting after chapter 
     1005 the following new chapter:

               ``CHAPTER 1006--RESERVE COMPONENT COMMANDS

``Sec.
``10171. United States Army Reserve Command.
``10172. Naval Reserve Force.
``10173. Marine Forces Reserve.
``10174. Air Force Reserve Command.

     ``Sec. 10171. United States Army Reserve Command

       ``(a) Command.--The United States Army Reserve Command is a 
     separate command of the Army commanded by the Chief of Army 
     Reserve.
       ``(b) Chain of Command.--Except as otherwise prescribed by 
     the Secretary of Defense, the Secretary of the Army shall 
     prescribe the chain of command for the United States Army 
     Reserve Command.
       ``(c) Assignment of Forces.--The Secretary of the Army--
       ``(1) shall assign to the United States Army Reserve 
     Command all forces of the Army Reserve in the continental 
     United States other than forces assigned to the unified 
     combatant command for special operations forces established 
     pursuant to section 167 of this title; and
       ``(2) except as otherwise directed by the Secretary of 
     Defense in the case of forces assigned to carry out functions 
     of the Secretary of the Army specified in section 3013 of 
     this title, shall assign all such forces of the Army Reserve 
     to the commander of the United States Atlantic Command.

     ``Sec. 10172. Naval Reserve Force

       ``(a) Establishment of Command.--The Secretary of the Navy, 
     with the advice and assistance of the Chief of Naval 
     Operations, shall establish a Naval Reserve Force. The Naval 
     Reserve Force shall be operated as a separate command of the 
     Navy.
       ``(b) Commander.--The Chief of Naval Reserve shall be the 
     commander of the Naval Reserve Force. The commander of the 
     Naval Reserve Force reports directly to the Chief of Naval 
     Operations.
       ``(c) Assignment of Forces.--The Secretary of the Navy--
       ``(1) shall assign to the Naval Reserve Force specified 
     portions of the Naval Reserve other than forces assigned to 
     the unified combatant command for special operations forces 
     established pursuant to section 167 of this title; and
       ``(2) except as otherwise directed by the Secretary of 
     Defense in the case of forces assigned to carry out functions 
     of the Secretary of the Navy specified in section 5013 of 
     this title, shall assign to the combatant commands all such 
     forces assigned to the Naval Reserve Force under paragraph 
     (1) in the manner specified by the Secretary of Defense.

     ``Sec. 10173. Marine Forces Reserve

       ``(a) Establishment.--The Secretary of the Navy, with the 
     advice and assistance of the Commandant of the Marine Corps, 
     shall establish in the Marine Corps a command known as the 
     Marine Forces Reserve.

[[Page H9066]]

       ``(b) Commander.--The Marine Forces Reserve is commanded by 
     the Commander, Marine Forces Reserve. The Commander, Marine 
     Forces Reserve, reports directly to the Commandant of the 
     Marine Corps.
       ``(c) Assignment of Forces.--The Commandant of the Marine 
     Corps--
       ``(1) shall assign to the Marine Forces Reserve the forces 
     of the Marine Corps Reserve stationed in the continental 
     United States other than forces assigned to the unified 
     combatant command for special operations forces established 
     pursuant to section 167 of this title; and
       ``(2) except as otherwise directed by the Secretary of 
     Defense in the case of forces assigned to carry out functions 
     of the Secretary of the Navy specified in section 5013 of 
     this title, shall assign to the combatant commands (through 
     the Marine Corps component commander for each such command) 
     all such forces assigned to the Marine Forces Reserve under 
     paragraph (1) in the manner specified by the Secretary of 
     Defense.

     ``Sec. 10174. Air Force Reserve Command

       ``(a) Establishment of Command.--The Secretary of the Air 
     Force, with the advice and assistance of the Chief of Staff 
     of the Air Force, shall establish an Air Force Reserve 
     Command. The Air Force Reserve Command shall be operated as a 
     separate command of the Air Force.
       ``(b) Commander.--The Chief of Air Force Reserve is the 
     Commander of the Air Force Reserve Command. The commander of 
     the Air Force Reserve Command reports directly to the Chief 
     of Staff of the Air Force.
       ``(c) Assignment of Forces.--The Secretary of the Air 
     Force--
       ``(1) shall assign to the Air Force Reserve Command all 
     forces of the Air Force Reserve stationed in the continental 
     United States other than forces assigned to the unified 
     combatant command for special operations forces established 
     pursuant to section 167 of this title; and
       ``(2) except as otherwise directed by the Secretary of 
     Defense in the case of forces assigned to carry out functions 
     of the Secretary of the Air Force specified in section 8013 
     of this title, shall assign to the combatant commands all 
     such forces assigned to the Air Force Reserve Command under 
     paragraph (1) in the manner specified by the Secretary of 
     Defense.''.
       (2) The tables of chapters at the beginning of part I of 
     such subtitle and at the beginning of such subtitle are each 
     amended by inserting after the item relating to chapter 1005 
     the following new item:

``1006. Reserve Component Commands.........................10171''.....

       (b) Conforming Repeal.--Section 903 of the National Defense 
     Authorization Act for Fiscal Year 1991 (10 U.S.C. 3074 note) 
     is repealed.
       (c) Implementation Schedule.--Implementation of chapter 
     1006 of title 10, United States Code, as added by subsection 
     (a), shall begin not later than 90 days after the date of the 
     enactment of this Act and shall be completed not later than 
     one year after such date.

     SEC. 1212. RESERVE COMPONENT CHIEFS.

       (a) Chief of Army Reserve.--Section 3038 of title 10, 
     United States Code, is amended by adding at the end the 
     following new subsections:
       ``(d) Budget.--The Chief of Army Reserve is the official 
     within the executive part of the Department of the Army who, 
     subject to the authority, direction, and control of the 
     Secretary of the Army and the Chief of Staff, is responsible 
     for justification and execution of the personnel, operation 
     and maintenance, and construction budgets for the Army 
     Reserve. As such, the Chief of Army Reserve is the director 
     and functional manager of appropriations made for the Army 
     Reserve in those areas.
       ``(e) Full Time Support Program.--The Chief of Army Reserve 
     manages, with respect to the Army Reserve, the personnel 
     program of the Department of Defense known as the Full Time 
     Support Program.
       ``(f) Annual Report.--(1) The Chief of Army Reserve shall 
     submit to the Secretary of Defense, through the Secretary of 
     the Army, an annual report on the state of the Army Reserve 
     and the ability of the Army Reserve to meet its missions. The 
     report shall be prepared in conjunction with the Chief of 
     Staff of the Army and may be submitted in classified and 
     unclassified versions.
       ``(2) The Secretary of Defense shall transmit the annual 
     report of the Chief of Army Reserve under paragraph (1) to 
     Congress, together with such comments on the report as the 
     Secretary considers appropriate. The report shall be 
     transmitted at the same time each year that the annual report 
     of the Secretary under section 113 of this title is submitted 
     to Congress.''.
       (b) Chief of Naval Reserve.--(1) Chapter 513 of such title 
     is amended by inserting after section 5142a the following new 
     section:

     ``Sec. 5143. Office of Naval Reserve: appointment of Chief

       ``(a) Establishment of Office: Chief of Naval Reserve.--
     There is in the executive part of the Department of the Navy, 
     on the staff of the Chief of Naval Operations, an Office of 
     the Naval Reserve, which is headed by a Chief of Naval 
     Reserve. The Chief of Naval Reserve--
       ``(1) is the principal adviser on Naval Reserve matters to 
     the Chief of Naval Operations; and
       ``(2) is the commander of the Naval Reserve Force.
       ``(b) Appointment.--The President, by and with the advice 
     and consent of the Senate, shall appoint the Chief of Naval 
     Reserve from officers who--
       ``(1) have had at least 10 years of commissioned service;
       ``(2) are in a grade above captain; and
       ``(3) have been recommended by the Secretary of the Navy.
       ``(c) Grade.--(1) The Chief of Naval Reserve holds office 
     for a term determined by the Chief of Naval Operations, 
     normally four years, but may be removed for cause at any 
     time. He is eligible to succeed himself.
       ``(2) The Chief of Naval Reserve, while so serving, has a 
     grade above rear admiral (lower half), without vacating the 
     officer's permanent grade.
       ``(d) Budget.--The Chief of Naval Reserve is the official 
     within the executive part of the Department of the Navy who, 
     subject to the authority, direction, and control of the 
     Secretary of the Navy and the Chief of Naval Operations, is 
     responsible for preparation, justification, and execution of 
     the personnel, operation and maintenance, and construction 
     budgets for the Naval Reserve. As such, the Chief of Naval 
     Reserve is the director and functional manager of 
     appropriations made for the Naval Reserve in those areas.
       ``(e) Annual Report.--(1) The Chief of Naval Reserve shall 
     submit to the Secretary of Defense, through the Secretary of 
     the Navy, an annual report on the state of the Naval Reserve 
     and the ability of the Naval Reserve to meet its missions. 
     The report shall be prepared in conjunction with the Chief of 
     Naval Operations and may be submitted in classified and 
     unclassified versions.
       ``(2) The Secretary of Defense shall transmit the annual 
     report of the Chief of Naval Reserve under paragraph (1) to 
     Congress, together with such comments on the report as the 
     Secretary considers appropriate. The report shall be 
     transmitted at the same time each year that the annual report 
     of the Secretary under section 113 of this title is submitted 
     to Congress.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     5142a the following new item:
``5143. Office of Naval Reserve: appointment of Chief.''.
       (c) Chief of Marine Forces Reserve.--(1) Chapter 513 of 
     such title is amended by inserting after section 5143 (as 
     added by subsection (b)) the following new section:

     ``Sec. 5144. Office of Marine Forces Reserve: appointment of 
       Commander

       ``(a) Establishment of Office; Commander, Marine Forces 
     Reserve.--There is in the executive part of the Department of 
     the Navy an Office of the Marine Forces Reserve, which is 
     headed by the Commander, Marine Forces Reserve. The 
     Commander, Marine Forces Reserve, is the principal adviser to 
     the Commandant on Marine Forces Reserve matters.
       ``(b) Appointment.--The President, by and with the advice 
     and consent of the Senate, shall appoint the Commander, 
     Marine Forces Reserve, from officers of the Marine Corps 
     who--
       ``(1) have had at least 10 years of commissioned service;
       ``(2) are in a grade above colonel; and
       ``(3) have been recommended by the Secretary of the Navy.
       ``(c) Term of Office; Grade.--(1) The Commander, Marine 
     Forces Reserve, holds office for a term determined by the 
     Commandant of the Marine Corps, normally four years, but may 
     be removed for cause at any time. He is eligible to succeed 
     himself.
       ``(2) The Commander, Marine Forces Reserve, while so 
     serving, has a grade above brigadier general, without 
     vacating the officer's permanent grade.
       ``(d) Annual Report.--(1) The Commander, Marine Forces 
     Reserve, shall submit to the Secretary of Defense, through 
     the Secretary of the Navy, an annual report on the state of 
     the Marine Corps Reserve and the ability of the Marine Corps 
     Reserve to meet its missions. The report shall be prepared in 
     conjunction with the Commandant of the Marine Corps and may 
     be submitted in classified and unclassified versions.
       ``(2) The Secretary of Defense shall transmit the annual 
     report of the Commander, Marine Forces Reserve, under 
     paragraph (1) to Congress, together with such comments on the 
     report as the Secretary considers appropriate. The report 
     shall be transmitted at the same time each year that the 
     annual report of the Secretary under section 113 of this 
     title is submitted to Congress.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     5143 (as added by subsection (b)) the following new item:
``5144. Office of Marine Forces Reserve: appointment of Commander.''.
       (d) Chief of Air Force Reserve.--Section 8038 of such title 
     is amended by adding at the end the following new 
     subsections:
       ``(d) Budget.--The Chief of Air Force Reserve is the 
     official within the executive part of the Department of the 
     Air Force who, subject to the authority, direction, and 
     control of the Secretary of the Air Force and the Chief of 
     Staff, is responsible for preparation, justification, and 
     execution of the personnel, operation and maintenance, and 
     construction budgets for the Air Force Reserve. As such, the 
     Chief of Air Force Reserve is the director and functional 
     manager of appropriations made for the Air Force Reserve in 
     those areas.

[[Page H9067]]

       ``(e) Full Time Support Program.--(1) The Chief of Air 
     Force Reserve manages, with respect to the Air Force Reserve, 
     the personnel program of the Department of Defense known as 
     the Full Time Support Program.
       ``(f) Annual Report.--(1) The Chief of Air Force Reserve 
     shall submit to the Secretary of Defense, through the 
     Secretary of the Air Force, an annual report on the state of 
     the Air Force Reserve and the ability of the Air Force 
     Reserve to meet its missions. The report shall be prepared in 
     conjunction with the Chief of Staff of the Air Force and may 
     be submitted in classified and unclassified versions.
       ``(2) The Secretary of Defense shall transmit the annual 
     report of the Chief of Air Force Reserve under paragraph (1) 
     to Congress, together with such comments on the report as the 
     Secretary considers appropriate. The report shall be 
     transmitted at the same time each year that the annual report 
     of the Secretary under section 113 of this title is submitted 
     to Congress.''.
       (e) Conforming Amendment.--Section 641(1)(B) of such title 
     is amended by inserting ``5143, 5144,'' after ``3038,''.

     SEC. 1213. REVIEW OF ACTIVE DUTY AND RESERVE GENERAL AND FLAG 
                   OFFICER AUTHORIZATIONS.

       (a) Report to Congress.--Not later than six months after 
     the date of the enactment of this Act, the Secretary of 
     Defense shall submit to Congress a report containing any 
     recommendations of the Secretary (together with the rationale 
     of the Secretary for the recommendations) concerning the 
     following:
       (1) Revision of the limitations on general and flag officer 
     grade authorizations and distribution in grade prescribed by 
     sections 525, 526, and 12004 of title 10, United States Code.
       (2) Statutory designation of the positions and grades of 
     any additional general and flag officers in the commands and 
     offices created by sections 1211 and 1212.
       (b) Matters To Be Included.--The Secretary shall include in 
     the report under subsection (a) the Secretary's views on 
     whether current limitations referred to in subsection (a)--
       (1) permit the Secretaries of the military departments, in 
     view of increased requirements for assignment of general and 
     flag officers in positions external to their organic 
     services, to meet adequately both internal and external 
     requirements for general and flag officers;
       (2) adequately recognize the significantly increased role 
     of the reserve components in both service-specific and joint 
     operations; and
       (3) permit the Secretaries of the military departments and 
     the reserve components to assign general and flag officers to 
     active and reserve component positions with grades 
     commensurate with the scope of duties and responsibilities of 
     the position.
       (c) Exemptions From Active-Duty Ceilings.--(1) The 
     Secretary shall include in the report under subsection (a) 
     the Secretary's recommendations regarding the merits of 
     exempting from any active-duty ceiling (established by law or 
     administrative action) the following officers:
       (A) Reserve general and flag officers assigned to positions 
     specified in the organizations created by this title.
       (B) Reserve general and flag officers serving on active 
     duty, but who are excluded from the active-duty list.
       (2) If the Secretary determines under paragraph (1) that 
     any Reserve general or flag officers should be exempt from 
     active duty limits, the Secretary shall include in the report 
     under subsection (a) the Secretary's recommendations for--
       (A) the effective management of those Reserve general and 
     flag officers; and
       (B) revision of active duty ceilings so as to prevent an 
     increase in the numbers of active general and flag officers 
     authorizations due solely to the removal of Reserve general 
     and flag officers from under the active duty authorizations.
       (3) If the Secretary determines under paragraph (1) that 
     active and reserve general officers on active duty should 
     continue to be managed under a common ceiling, the Secretary 
     shall make recommendations for the appropriate apportionment 
     of numbers for general and flag officers among active and 
     reserve officers.
       (d) Reserve Forces Policy Board Participation.--The 
     Secretary of Defense shall ensure that the Reserve Forces 
     Policy Board participates in the internal Department of 
     Defense process for development of the recommendations of the 
     Secretary contained in the report under subsection (a). If 
     the Board submits to the Secretary any comments or 
     recommendations for inclusion in the report, the Secretary 
     shall transmit them to Congress, with the report, in the same 
     form as that in which they were submitted to the Secretary.
       (e) GAO Review.--The Comptroller General of the United 
     States shall assess the criteria used by the Secretary of 
     Defense to develop recommendations for purposes of the report 
     under this section and shall submit to Congress, not later 
     than 30 days after the date on which the report of the 
     Secretary under this section is submitted, a report setting 
     forth the Comptroller General's conclusions concerning the 
     adequacy and completeness of the recommendations made by the 
     Secretary in the report.

     SEC. 1214. GUARD AND RESERVE TECHNICIANS.

       Section 10216 of title 10, United States Code, as amended 
     by section 413, is amended--
       (1) by redesignating subsections (a), (b), and (c) as 
     subsections (b), (c), and (d), respectively;
       (2) by inserting after the section heading the following 
     new subsection (a):
       ``(a) In General.--Military technicians are Federal 
     civilian employees hired under title 5 and title 32 who are 
     required to maintain dual-status as drilling reserve 
     component members as a condition of their Federal civilian 
     employment. Such employees shall be authorized and accounted 
     for as a separate category of dual-status civilian employees, 
     exempt as specified in subsection (b)(3) from any general or 
     regulatory requirement for adjustments in Department of 
     Defense civilian personnel.''; and
       (3) in paragraph (3) of subsection (b), as redesignated by 
     paragraph (1), by striking out ``in high-priority units and 
     organizations specified in paragraph (1)''.
              Subtitle B--Reserve Component Accessibility

     SEC. 1231. REPORT TO CONGRESS ON MEASURES TO IMPROVE NATIONAL 
                   GUARD AND RESERVE ABILITY TO RESPOND TO 
                   EMERGENCIES.

       (a) Report.--Not later than six months after the date of 
     the enactment of this Act, the Secretary of Defense shall 
     submit to Congress a report regarding reserve component 
     responsiveness to both domestic emergencies and national 
     contingency operations. The report shall set forth the 
     measures taken, underway, and projected to be taken to 
     improve the timeliness, adequacy, and effectiveness of 
     reserve component responses to such emergencies and 
     operations.
       (b) Matters Related to Responsiveness to Domestic 
     Emergencies.--The report shall address the following:
       (1) The need to expand the time period set by section 
     12301(b) of title 10, United States Code, which permits the 
     involuntary recall at any time to active duty of units and 
     individuals for up to 15 days per year.
       (2) The recommendations of the 1995 report of the RAND 
     Corporation entitled ``Assessing the State and Federal 
     Missions of the National Guard'', as follows:
       (A) That Federal law be clarified and amended to authorize 
     Presidential use of the Federal reserves of all military 
     services for domestic emergencies and disasters without any 
     time constraint.
       (B) That the Secretary of Defense develop and support 
     establishment of an appropriate national level compact for 
     interstate sharing of resources, including the domestic 
     capabilities of the national guards of the States, during 
     emergencies and disasters.
       (C) That Federal level contingency stocks be created to 
     support the National Guard in domestic disasters.
       (D) That Federal funding and regulatory support be provided 
     for Federal-State disaster emergency response planning 
     exercises.
       (c) Matters Related to Presidential Reserve Call-Up 
     Authority.--The report under this section shall specifically 
     address matters related to the authority of the President to 
     activate for service on active duty units and members of 
     reserve components under sections 12301, 12302, and 12304 of 
     title 10, United States Code, including--
       (1) whether such authority is adequate to meet the full 
     range of reserve component missions for the 21st century, 
     particularly with regard to the time periods for which such 
     units and members may be on active duty under those 
     authorities and the ability to activate both units and 
     individual members; and
       (2) whether the three-tiered set of statutory authorities 
     (under such sections 12301, 12302, and 12304) should be 
     consolidated, modified, or in part eliminated in order to 
     facilitate current and future use of Reserve units and 
     individual reserve component members for a broader range of 
     missions, and, if so, in what manner.
       (d) Matters Related to Release From Active Duty.--The 
     report under this section shall include findings and 
     recommendations (based upon a review of current policies and 
     procedures) concerning procedures for release from active 
     duty of units and members of reserve components who have been 
     involuntarily called or ordered to active duty under section 
     12301, 12302, or 12304 of title 10, United States Code, with 
     specific recommendations concerning the desirability of 
     statutory provisions to--
       (1) establish specific guidelines for when it is 
     appropriate (or inappropriate) to retain on active duty such 
     reserve component units when active component units are 
     available to perform the mission being performed by the 
     reserve component unit;
       (2) minimize the effects of frequent mobilization of the 
     civilian employers, as well as the effects of frequent 
     mobilization on recruiting and retention in the reserve 
     components; and
       (3) address other matters relating to the needs of such 
     members of reserve components, their employers, and (in the 
     case of such members who own businesses) their employees, 
     while such members are on active duty.
       (e) Reserve Forces Policy Board Participation.--The 
     Secretary of Defense shall ensure that the Reserve Forces 
     Policy Board participates in the internal Department of 
     Defense process for development of the recommendations of the 
     Secretary contained in the report under subsection (a). If 
     the Board submits to the Secretary any comments or 
     recommendations for inclusion in the report, the Secretary 
     shall transmit them to Congress, with the report, in the same 
     form as that in which they were submitted to the Secretary.
       (f) GAO Review.--The Comptroller General of the United 
     States shall assess the criteria

[[Page H9068]]

     used by the Secretary of Defense to develop recommendations 
     for purposes of the report under this section and shall 
     submit to Congress, not later than 30 days after the date on 
     which the report of the Secretary under this section is 
     submitted, a report setting forth the Comptroller General's 
     conclusions concerning the adequacy and completeness of the 
     recommendations made by the Secretary in the report.

     SEC. 1232. REPORT TO CONGRESS CONCERNING TAX INCENTIVES FOR 
                   EMPLOYERS OF MEMBERS OF RESERVE COMPONENTS.

       Not later than 180 days after the date of the enactment of 
     this Act, the Secretary of Defense shall submit to Congress a 
     report setting forth a draft of legislation to provide tax 
     incentives to employers of members of reserve components in 
     order to compensate employers for absences of those employees 
     due to required training and for absences due to performance 
     of active duty.

     SEC. 1233. REPORT TO CONGRESS CONCERNING INCOME INSURANCE 
                   PROGRAM FOR ACTIVATED RESERVISTS.

       Not later than 180 days after the date of the enactment of 
     this Act, the Secretary of Defense shall submit to Congress a 
     report setting forth legislative recommendations for changes 
     to chapter 1214 of title 10, United States Code. Such 
     recommendations shall in particular provide, in the case of a 
     mobilized member who owns a business, income replacement for 
     that business and for employees of that member or business 
     who have a loss of income during the period of such 
     activation attributable to the activation of the member.

     SEC. 1234. REPORT TO CONGRESS CONCERNING SMALL BUSINESS LOANS 
                   FOR MEMBERS RELEASED FROM RESERVE SERVICE 
                   DURING CONTINGENCY OPERATIONS.

       Not later than 180 days after the date of the enactment of 
     this Act, the Secretary of Defense shall submit to Congress a 
     report setting forth a draft of legislation to establish a 
     small business loan program to provide members of reserve 
     components who are ordered to active duty or active Federal 
     service (other than for training) during a contingency 
     operation (as defined in section 101 of title 10, United 
     States Code) low-cost loans to assist those members in 
     retaining or rebuilding businesses that were affected by 
     their service on active duty or in active Federal service.
                 Subtitle C--Reserve Forces Sustainment

     SEC. 1251. REPORT CONCERNING TAX DEDUCTIBILITY OF 
                   NONREIMBURSABLE EXPENSES.

       Not later than 180 days after the date of the enactment of 
     this Act, the Secretary of Defense shall submit to Congress a 
     report setting forth a draft of legislation to restore the 
     tax deductibility of nonreimbursable expenses incurred by 
     members of reserve components in connection with military 
     service.

     SEC. 1252. AUTHORITY TO PAY TRANSIENT HOUSING CHARGES FOR 
                   MEMBERS PERFORMING ACTIVE DUTY FOR TRAINING.

       Section 404(j)(1) of title 37, United States Code, is 
     amended by striking out ``annual training duty'' and 
     inserting in lieu thereof ``active duty for training''.

     SEC. 1253. SENSE OF CONGRESS CONCERNING QUARTERS ALLOWANCE 
                   DURING SERVICE ON ACTIVE DUTY FOR TRAINING.

       It is the sense of Congress that the United States should 
     continue to pay members of reserve components appropriate 
     quarters allowances during periods of service on active duty 
     for training.

     SEC. 1254. SENSE OF CONGRESS CONCERNING MILITARY LEAVE 
                   POLICY.

       It is the sense of Congress that military leave policies in 
     effect as of the date of the enactment of this Act with 
     respect to members of the reserve components should not be 
     changed.

     SEC. 1255. RESERVE FORCES POLICY BOARD.

       (a) Commendation.--The Congress commends the Reserve Forces 
     Policy Board, created by the Armed Forces Reserve Act of 1952 
     (Public Law 82-476), for its fine work in the past as an 
     independent source of advice to the Secretary of Defense on 
     all matters pertaining to the reserve components.
       (b) Sense of Congress.--It is the sense of Congress that 
     the Reserve Forces Policy Board and the reserve forces policy 
     committees for the individual branches of the Armed Forces 
     should continue to perform the vital role of providing the 
     civilian leadership of the Department of Defense with 
     independent advice on matters pertaining to the reserve 
     components.
       (c) Annual Report of Reserve Forces Policy Board.--Section 
     113(c) of title 10, United States Code, is amended--
       (1) by striking out paragraph (3);
       (2) by redesignating paragraphs (1), (2), and (4) as 
     subparagraphs (A), (B), and (C), respectively;
       (3) by inserting ``(1)'' after ``(c)'';
       (4) by inserting ``and'' at the end of subparagraph (B), as 
     redesignated by paragraph (2); and
       (5) by adding at the end the following:
       ``(2) At the same time that the Secretary submits the 
     annual report under paragraph (1), the Secretary shall 
     transmit to the President and Congress a separate report from 
     the Reserve Forces Policy Board on the reserve programs of 
     the Department of Defense and on any other matters that the 
     Reserve Forces Policy Board considers appropriate to include 
     in the report.''.

     SEC. 1256. REPORT ON PARITY OF BENEFITS FOR ACTIVE DUTY 
                   SERVICE AND RESERVE SERVICE.

       No later than six months after the date of the enactment of 
     this Act, the Secretary of Defense shall submit to Congress a 
     report providing recommendations for changes in law that the 
     Secretary considers necessary, feasible, and affordable to 
     reduce the disparities in pay and benefits that occur between 
     active component members of the Armed Forces and reserve 
     component members as a result of eligibility based on length 
     of time on active duty.

     SEC. 1257. INFORMATION ON PROPOSED FUNDING FOR THE GUARD AND 
                   RESERVE COMPONENTS IN FUTURE-YEARS DEFENSE 
                   PROGRAMS.

       (a) In General.--(1) Chapter 1013 of title 10, United 
     States Code, is amended by adding at the end the following 
     new section:

     ``Sec. 10543. National Guard and reserve component equipment 
       procurement and military construction funding: inclusion in 
       future-years defense program

       ``The Secretary of Defense shall specify in each future-
     years defense program submitted to Congress under section 221 
     of this title the estimated expenditures and the proposed 
     appropriations, for each fiscal year of the period covered by 
     that program, for the procurement of equipment and for 
     military construction for each of the reserve components of 
     the armed forces.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:
``10543. National Guard and reserve component equipment procurement and 
              military construction funding: inclusion in future-years 
              defense program.''.
       (b) Effective Date.--Section 10543 of title 10, United 
     States Code, as added by subsection (a), shall apply with 
     respect to each future-years defense program submitted to 
     Congress after the date of the enactment of this Act.
              TITLE XIII--ARMS CONTROL AND RELATED MATTERS

Subtitle A--Arms Control, Counterproliferation Activities, and Related 
                                Matters

Sec. 1301. Extension of counterproliferation authorities.
Sec. 1302. Limitation on retirement or dismantlement of strategic 
              nuclear delivery systems.
Sec. 1303. Strengthening certain sanctions against nuclear 
              proliferation activities.
Sec. 1304. Authority to pay certain expenses relating to humanitarian 
              and civic assistance for clearance of landmines.
Sec. 1305. Report on military capabilities of People's Republic of 
              China.
Sec. 1306. Presidential report regarding weapons proliferation and 
              policies of the People's Republic of China.
Sec. 1307. United States-People's Republic of China Joint Defense 
              Conversion Commission.
Sec. 1308. Sense of Congress concerning export controls.
Sec. 1309. Counterproliferation Program Review Committee.
Sec. 1310. Sense of Congress concerning assisting other countries to 
              improve security of fissile material.
Sec. 1311. Review by Director of Central Intelligence of National 
              Intelligence Estimate 95-19.

 Subtitle B--Commission to Assess the Ballistic Missile Threat to the 
                             United States

Sec. 1321. Establishment of Commission.
Sec. 1322. Duties of Commission.
Sec. 1323. Report.
Sec. 1324. Powers.
Sec. 1325. Commission procedures.
Sec. 1326. Personnel matters.
Sec. 1327. Miscellaneous administrative provisions.
Sec. 1328. Funding.
Sec. 1329. Termination of the Commission.
Subtitle A--Arms Control, Counterproliferation Activities, and Related 
                                Matters

     SEC. 1301. EXTENSION OF COUNTERPROLIFERATION AUTHORITIES.

       (a) One-Year Extension of Authority.--Section 1505 of the 
     Weapons of Mass Destruction Control Act of 1992 (title XV of 
     Public Law 102-484; 22 U.S.C. 5859a) is amended--
       (1) in subsection (d)(3), by striking out ``or'' after 
     ``fiscal year 1995,'' and by inserting ``, or $15,000,000 for 
     fiscal year 1997'' before the period at the end; and
       (2) in subsection (f), by striking out ``1996'' and 
     inserting in lieu thereof ``1997''.
       (b) Funding Flexibility.--Subsection (d) of such section is 
     further amended by adding at the end the following new 
     paragraph:
       ``(4)(A) In the event of a significant unforeseen 
     development related to the activities of the United Nations 
     Special Commission on Iraq for which the Secretary of Defense 
     determines that financial assistance under this section is 
     required at a level which would result in the total amount of 
     assistance provided under this section during the then-
     current fiscal year exceeding the amount specified with 
     respect to that year under paragraph (3), the Secretary of 
     Defense may provide such assistance notwithstanding the 
     limitation with respect to that fiscal year under paragraph 
     (3). Funds for such purpose may be derived from any funds 
     available to the Department of Defense for that fiscal year.

[[Page H9069]]

       ``(B) Financial assistance may be provided under 
     subparagraph (A) only after the Secretary of Defense provides 
     notice in writing to the committees of Congress named in 
     subsection (e)(2) of the significant unforeseen development 
     and of the Secretary's intent to provide assistance in excess 
     of the limitation for that fiscal year under paragraph (3). 
     However, if the Secretary determines in any case that under 
     the specific circumstances of that case advance notice is not 
     possible, such notice shall be provided as soon as possible 
     and not later than 15 days after the date on which the 
     assistance is provided. Any notice under this subparagraph 
     shall include a description of the development, the amount of 
     assistance provided or to be provided, and the source of the 
     funds for that assistance.''.
     SEC. 1302. 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 1997 for retiring or dismantling, or for preparing to 
     retire or dismantle, any of the following strategic nuclear 
     delivery systems:
       (1) B-52H bomber aircraft.
       (2) Trident ballistic missile submarines.
       (3) Minuteman III intercontinental ballistic missiles.
       (4) Peacekeeper intercontinental ballistic missiles.
       (b) Waiver Authority.--If the START II Treaty enters into 
     force during fiscal year 1996 or fiscal year 1997, the 
     Secretary of Defense may waive the application of the 
     limitation under paragraphs (2), (3), and (4) of subsection 
     (a) to Trident ballistic missile submarines, Minuteman III 
     intercontinental ballistic missiles, and Peacekeeper 
     intercontinental ballistic missiles, respectively, 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 paragraphs (2), (3), and (4) of 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 
     1997 to implement any agreement or understanding to undertake 
     substantial early deactivation of a strategic nuclear 
     delivery system specified in subsection (b) 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 1997 to 
     deactivate a substantial number of strategic nuclear delivery 
     systems specified in subsection (b) 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) START II Treaty Defined.--For purposes of this section, 
     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):
       (1) 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'').
       (2) 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'').
       (3) 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'').
       (e) Retention of B-52H Aircraft on Active Status.--(1) The 
     Secretary of the Air Force shall maintain in active status 
     (including the performance of standard maintenance and 
     upgrades) the current fleet of B-52H bomber aircraft.
       (2) For purposes of carrying out upgrades of B-52H bomber 
     aircraft during fiscal year 1997, the Secretary shall treat 
     the entire current fleet of such aircraft as aircraft 
     expected to be maintained in active status during the six-
     year period beginning on October 1, 1996.
     SEC. 1303. STRENGTHENING CERTAIN SANCTIONS AGAINST NUCLEAR 
                   PROLIFERATION ACTIVITIES.
       (a) Sanctions.--Section 2(b)(4) of the Export-Import Bank 
     Act of 1945 (12 U.S.C. 635(b)(4)) is amended to read as 
     follows:
       ``(4)(A) If the Secretary of State determines that--
       ``(i) any country that has agreed to International Atomic 
     Energy Agency nuclear safeguards materially violates, 
     abrogates, or terminates, after October 26, 1977, such 
     safeguards;
       ``(ii) any country that has entered into an agreement for 
     cooperation concerning the civil use of nuclear energy with 
     the United States materially violates, abrogates, or 
     terminates, after October 26, 1977, any guarantee or other 
     undertaking to the United States made in such agreement;
       ``(iii) any country that is not a nuclear-weapon state 
     detonates, after October 26, 1977, a nuclear explosive 
     device;
       ``(iv) any country willfully aids or abets, after June 29, 
     1994, any non-nuclear-weapon state to acquire any such 
     nuclear explosive device or to acquire unsafeguarded special 
     nuclear material; or
       ``(v) any person knowingly aids or abets, after the date of 
     enactment of the National Defense Authorization Act for 
     Fiscal Year 1997, any non-nuclear-weapon state to acquire any 
     such nuclear explosive device or to acquire unsafeguarded 
     special nuclear material, then the Secretary of State shall 
     submit a report to the appropriate committees of the Congress 
     and to the Board of Directors of the Bank stating such 
     determination and identifying each country or person the 
     Secretary determines has so acted.
       ``(B)(i) If the Secretary of State makes a determination 
     under subparagraph (A)(v) with respect to a foreign person, 
     the Congress urges the Secretary to initiate consultations 
     immediately with the government with primary jurisdiction 
     over that person with respect to the imposition of the 
     prohibition contained in subparagraph (C).
       ``(ii) In order that consultations with that government may 
     be pursued, the Board of Directors of the Bank shall delay 
     imposition of the prohibition contained in subparagraph (C) 
     for up to 90 days if the Secretary of State requests the 
     Board to make such delay. Following these consultations, the 
     prohibition contained in subparagraph (C) shall apply 
     immediately unless the Secretary determines and certifies to 
     the Congress that that government has taken specific and 
     effective actions, including appropriate penalties, to 
     terminate the involvement of the foreign person in the 
     activities described in subparagraph (A)(v). The Board of 
     Directors of the Bank shall delay the imposition of the 
     prohibition contained in subparagraph (C) for up to an 
     additional 90 days if the Secretary requests the Board to 
     make such additional delay and if the Secretary determines 
     and certifies to the Congress that that government is in the 
     process of taking the actions described in the preceding 
     sentence.
       ``(iii) Not later than 90 days after making a determination 
     under subparagraph (A)(v), the Secretary of State shall 
     submit to the appropriate committees of the Congress a report 
     on the status of consultations with the appropriate 
     government under this subparagraph, and the basis for any 
     determination under clause (ii) that such government has 
     taken specific corrective actions.
       ``(C) The Board of Directors of the Bank shall not give 
     approval to guarantee, insure, or extend credit, or 
     participate in the extension of credit in support of United 
     States exports to any country, or to or by any person, 
     identified in the report described in subparagraph (A).
       ``(D) The prohibition in subparagraph (C) shall not apply 
     to approvals to guarantee, insure, or extend credit, or 
     participate in the extension of credit in support of United 
     States exports to a country with respect to which a 
     determination is made under clause (i), (ii), (iii), or (iv) 
     of subparagraph (A) regarding any specific event described in 
     such clause if the President determines and certifies in 
     writing to the Congress not less than 45 days prior to the 
     date of the first approval following the determination that 
     it is in the national interest for the Bank to give such 
     approvals.
       ``(E) The prohibition in subparagraph (C) shall not apply 
     to approvals to guarantee, insure, or extend credit, or 
     participate in the extension of credit in support of United 
     States exports to or by a person with respect to whom a 
     determination is made under clause (v) of subparagraph (A) 
     regarding any specific event described in such clause if--
       ``(i) the Secretary of State determines and certifies to 
     the Congress that the appropriate government has taken the 
     corrective actions described in subparagraph (B)(ii); or
       ``(ii) the President determines and certifies in writing to 
     the Congress not less than 45 days prior to the date of the 
     first approval following the determination that--
       ``(I) reliable information indicates that--

       ``(aa) such person has ceased to aid or abet any non-
     nuclear-weapon state to acquire any nuclear explosive device 
     or to acquire unsafeguarded special nuclear material; and

[[Page H9070]]

       ``(bb) steps have been taken to ensure that the activities 
     described in item (aa) will not resume; or

       ``(II) the prohibition would have a serious adverse effect 
     on vital United States interests.
       ``(F) For purposes of this paragraph:
       ``(i) The term `country' has the meaning given to `foreign 
     state' in section 1603(a) of title 28, United States Code.
       ``(ii) The term `knowingly' is used within the meaning of 
     the term `knowing' in section 104(h)(3) of the Foreign 
     Corrupt Practices Act (15 U.S.C. 78dd-2(h)(3)).
       ``(iii) The term `person' means a natural person as well as 
     a corporation, business association, partnership, society, 
     trust, any other nongovernmental entity, organization, or 
     group, and any governmental entity operating as a business 
     enterprise, and any successor of any such entity.
       ``(iv) The term `nuclear-weapon state' has the meaning 
     given the term in Article IX(3) of the Treaty on the Non-
     Proliferation of Nuclear Weapons, signed at Washington, 
     London, and Moscow on July 1, 1968.
       ``(v) The term `non-nuclear-weapon state' has the meaning 
     given the term in section 830(5) of the Nuclear Proliferation 
     Prevention Act of 1994 (Public Law 103-236; 108 Stat. 521).
       ``(vi) The term `nuclear explosive device' has the meaning 
     given the term in section 830(4) of the Nuclear Proliferation 
     Prevention Act of 1994 (Public Law 103-236; 108 Stat. 521).
       ``(vii) The term `unsafeguarded special nuclear material' 
     has the meaning given the term in section 830(8) of the 
     Nuclear Proliferation Prevention Act of 1994.''.
       (b) Recommendations To Make Nonproliferation Laws More 
     Effective.--Not later than 180 days after the date of the 
     enactment of this Act, the President shall submit to the 
     Congress his recommendations on ways to make the laws of the 
     United States more effective in controlling and preventing 
     the proliferation of weapons of mass destruction and 
     missiles. The report shall identify all sources of Government 
     funds used for such nonproliferation activities.

     SEC. 1304. AUTHORITY TO PAY CERTAIN EXPENSES RELATING TO 
                   HUMANITARIAN AND CIVIC ASSISTANCE FOR CLEARANCE 
                   OF LANDMINES.

       (a) Authority To Pay Expenses.--Section 401(c) of title 10, 
     United States Code, is amended--
       (1) by redesignating paragraph (2) as paragraph (4); and
       (2) by inserting after paragraph (1) the following new 
     paragraphs:
       ``(2) Expenses covered by paragraph (1) include the 
     following expenses incurred in providing assistance described 
     in subsection (e)(5):
       ``(A) Travel, transportation, and subsistence expenses of 
     Department of Defense personnel providing such assistance.
       ``(B) The cost of any equipment, services, or supplies 
     acquired for the purpose of carrying out or supporting the 
     activities described in subsection (e)(5), including any 
     nonlethal, individual, or small-team landmine clearing 
     equipment or supplies that are to be transferred or otherwise 
     furnished to a foreign country in furtherance of the 
     provision of assistance under this section.
       ``(3) The cost of equipment, services, and supplies 
     provided in any fiscal year under paragraph (2)(B) may not 
     exceed $5,000,000.''.
       (b) Coordination With Other Laws.--Section 401(b) of such 
     title is amended--
       (1) by inserting ``(1)'' after ``(b)''; and
       (2) by adding at the end the following:
       ``(2) Any authority provided under any other provision of 
     law to provide assistance that is described in subsection 
     (e)(5) to a foreign country shall be carried out in 
     accordance with, and subject to the limitations prescribed 
     in, this section. Any such provision may be construed as 
     superseding a provision of this section only if, and to the 
     extent that, such provision specifically refers to this 
     section and specifically identifies the provision of this 
     section that is to be considered superseded or otherwise 
     inapplicable under such provision.''.

     SEC. 1305. REPORT ON MILITARY CAPABILITIES OF PEOPLE'S 
                   REPUBLIC OF CHINA.

       (a) Report.--The Secretary of Defense shall prepare a 
     report, in both classified and unclassified form, on the 
     future pattern of military modernization of the People's 
     Republic of China. The report shall address both the probable 
     course of military-technological development in the People's 
     Liberation Army and the development of Chinese military 
     strategy and operational concepts.
       (b) Matters To Be Included.--The report shall include 
     analyses and forecasts of the following:
       (1) Trends that would lead the People's Republic of China 
     toward advanced intelligence, surveillance, and 
     reconnaissance capabilities, either through a development 
     program or by gaining access to commercial or third-party 
     systems with militarily significant capabilities.
       (2) Efforts by the People's Republic of China to develop 
     highly accurate and low-observable ballistic and cruise 
     missiles, and the investments in infrastructure that would 
     allow for production of such weapons in militarily 
     significant quantities, particularly in numbers sufficient to 
     conduct attacks capable of overwhelming projected defense 
     capabilities in the region.
       (3) Development by the People's Republic of China of 
     enhanced command and control networks, particularly those 
     capable of battle management that would include long-range 
     precision strikes.
       (4) Programs of the People's Republic of China involving 
     unmanned aerial vehicles, particularly those with extended 
     ranges or loitering times.
       (5) Exploitation by the People's Republic of China of the 
     Global Positioning System or other similar systems, including 
     commercial land surveillance satellites, for significant 
     military purposes, including particularly for increasing the 
     accuracy of weapons or the situational awareness of operating 
     forces.
       (6) Development by the People's Republic of China of 
     capabilities for denial of sea control, such as advanced sea 
     mines or improved submarine capabilities.
       (7) Continued development by the People's Republic of China 
     of follow-on forces, particularly those capable of rapid air 
     or amphibious assault.
       (c) Submission of Report.--The report shall be submitted to 
     Congress not later than February 1, 1997.

     SEC. 1306. PRESIDENTIAL REPORT REGARDING WEAPONS 
                   PROLIFERATION AND POLICIES OF THE PEOPLE'S 
                   REPUBLIC OF CHINA.

       (a) Findings.--The Congress finds that--
       (1) the People's Republic of China acceded to the Treaty on 
     the Non-Proliferation of Nuclear Weapons (hereafter in this 
     section referred to as the ``NPT'') on March 9, 1992;
       (2) the People's Republic of China is not a member of the 
     Nuclear Suppliers Group and remains the only major nuclear 
     supplier that continues to transfer nuclear technology, 
     equipment, and materials to countries that have not agreed to 
     the application of safeguards of the International Atomic 
     Energy Agency (hereafter in this section referred to as the 
     ``IAEA'') over all of their nuclear materials;
       (3) on June 30, 1995, the United States and 29 other 
     members of the Nuclear Suppliers Group notified the Director 
     General of the IAEA that the Government of each respective 
     country has decided that the controls of that Group should 
     not be defeated by the transfer of component parts;
       (4) a state-owned entity in the People's Republic of China, 
     the China Nuclear Energy Industry Corporation, has knowingly 
     transferred specially designed ring magnets to an 
     unsafeguarded uranium enrichment facility in the Islamic 
     Republic of Pakistan;
       (5) ring magnets are identified on the Trigger List of the 
     Nuclear Suppliers Group as a component of magnetic suspension 
     bearings which are to be exported only to countries that have 
     safeguards of the IAEA over all of their nuclear materials;
       (6) these ring magnets could contribute significantly to 
     the ability of the Islamic Republic of Pakistan to produce 
     additional unsafeguarded enriched uranium, a nuclear 
     explosive material;
       (7) the Government of the People's Republic of China has 
     transferred nuclear equipment and technology to the Islamic 
     Republic of Iran, despite repeated claims by the Government 
     of the United States that the Islamic Republic of Iran is 
     engaged in clandestine efforts to acquire a nuclear explosive 
     device;
       (8) representatives of the Government of the People's 
     Republic of China have repeatedly assured the Government of 
     the United States that the People's Republic of China would 
     abide by the guidelines of the Missile Technology Control 
     Regime (hereafter in this section referred to as the 
     ``MTCR'');
       (9) the Government of China has transferred M-11 missiles 
     to the Islamic Republic of Pakistan; and
       (10) the M-11 missile conforms to the definition of a 
     nuclear-capable missile under the MTCR.
       (b) Sense of the Congress.--It is the sense of the Congress 
     that--
       (1) the assistance that the People's Republic of China has 
     provided to the Islamic Republic of Iran and to the Islamic 
     Republic of Pakistan could contribute to the ability of such 
     countries to manufacture nuclear weapons;
       (2) the recent transfer by the People's Republic of China 
     of ring magnets to an unsafeguarded uranium enrichment 
     facility in the Islamic Republic of Pakistan conflicts with 
     China's obligations under Articles I and III of the NPT, as 
     well as the official nonproliferation policies and assurances 
     by the People's Republic of China and the Islamic Republic of 
     Pakistan with respect to the nonproliferation of nuclear 
     weapons and nuclear-capable missiles;
       (3) the transfer of M-11 missiles from the People's 
     Republic of China to the Islamic Republic of Pakistan is 
     inconsistent with longstanding United States Government 
     interpretations of assurances from the Government of the 
     People's Republic of China with respect to that country's 
     intent to abide by the guidelines of the MTCR;
       (4) violations by the People's Republic of China of the 
     standards and objectives of the MTCR and global nuclear 
     nonproliferation regimes have jeopardized the credibility of 
     the MTCR and such regimes;
       (5) the MTCR and global nuclear nonproliferation regimes 
     require collective international action to impose costs 
     against and to withhold benefits from any country, including 
     the People's Republic of China, that engages in activities 
     that are contrary to the objectives of those regimes;
       (6) the President should explore with the governments of 
     other countries new opportunities for collective action in 
     response to activities of any country, including the People's 
     Republic of China, that aid or abet the

[[Page H9071]]

     global proliferation of weapons of mass destruction or their 
     means of delivery; and
       (7) the President should communicate to the Government of 
     the People's Republic of China the sense of the Congress that 
     the stability and growth of future relations between the 
     people, the economies, and the Governments of the United 
     States and the People's Republic of China will significantly 
     depend upon substantive evidence of cooperation by the 
     Government of the People's Republic of China in efforts to 
     halt the global proliferation of weapons of mass destruction 
     and their means of delivery.
       (c) Report.--Not later than 60 days after the date of the 
     enactment of this Act, the President shall submit to the 
     Congress a report, in both classified and unclassified form, 
     concerning the transfer from the People's Republic of China 
     to the Islamic Republic of Pakistan of technology, equipment, 
     or materials important to the production of nuclear weapons 
     and their means of delivery. The President shall include in 
     the report the following:
       (1) The specific justification of the Secretary of State 
     for determining that there was not a sufficient basis for 
     imposing sanctions under section 2(b)(4) of the Export-Import 
     Bank Act of 1945, as amended by section 825 of the Nuclear 
     Proliferation Prevention Act of 1994, by reason of the 
     transfer of ring magnets and other technology, equipment, or 
     materials from the People's Republic of China to the Islamic 
     Republic of Pakistan.
       (2) What commitment the United States Government is seeking 
     from the People's Republic of China to ensure that the 
     People's Republic of China establishes a fully effective 
     export control system that will prevent transfers (such as 
     the Pakistan sale) from taking place in the future.
       (3) A description of the pledges, assurances, and other 
     commitments made by representatives of the Governments of the 
     People's Republic of China and the Islamic Republic of 
     Pakistan to the Government of the United States since January 
     1, 1991, with respect to the nonproliferation of nuclear 
     weapons or nuclear-capable missiles, and an assessment of the 
     record of compliance with such undertakings.
       (4) Whether, in light of the recent assurances provided by 
     the People's Republic of China, the President intends to make 
     the certification and submit the report required by section 
     902(a)(6)(B) of the Foreign Relations Authorization Act, 
     Fiscal Years 1990 and 1991 (22 U.S.C. 2151 note), and make 
     the certification and submit the report required by Public 
     Law 99-183, relating to the approval and implementation of 
     the agreement for nuclear cooperation between the United 
     States and the People's Republic of China, and, if not, why 
     not.
       (5) Whether the Secretary of State considers the recent 
     assurances and clarifications provided by the People's 
     Republic of China to have provided sufficient information to 
     allow the United States to determine that the People's 
     Republic of China is not in violation of paragraph (2) of 
     section 129 of the Atomic Energy Act of 1954, as required by 
     Public Law 99-183.
       (6) If the President is unable or unwilling to make the 
     certifications and reports referred to in paragraph (4), a 
     description of what the President considers to be the 
     significance of the clarifications and assurances provided by 
     the People's Republic of China in the course of the recent 
     discussions regarding the transfer by the People's Republic 
     of China of nuclear-weapon-related equipment to the Islamic 
     Republic of Pakistan.
       (7) A description of the laws, regulations, and procedures 
     currently used by the People's Republic of China to regulate 
     exports of nuclear technology, equipment, or materials, 
     including dual-use goods, and an assessment of the 
     effectiveness of such arrangements.
       (8) A description of the current policies and practices of 
     other countries in response to the transfer of nuclear and 
     missile technology by the People's Republic of China to the 
     Islamic Republic of Pakistan and the Islamic Republic of 
     Iran.

     SEC. 1307. UNITED STATES-PEOPLE'S REPUBLIC OF CHINA JOINT 
                   DEFENSE CONVERSION COMMISSION.

       None of the funds appropriated or otherwise available for 
     the Department of Defense for fiscal year 1997 or any prior 
     fiscal year may be obligated or expended for any activity 
     associated with the United States-People's Republic of China 
     Joint Defense Conversion Commission until 15 days after the 
     date on which the first semiannual report required by section 
     1343 of the National Defense Authorization Act for Fiscal 
     Year 1996 (Public Law 104-106; 110 Stat. 487) is received by 
     Congress.

     SEC. 1308. SENSE OF CONGRESS CONCERNING EXPORT CONTROLS.

       (a) Findings.--The Congress makes the following findings:
       (1) Export controls are a part of a comprehensive response 
     to national security threats. The export of a United States 
     commodity or technology should be restricted in cases in 
     which the export of the commodity or technology would 
     increase the threat to the national security of the United 
     States or would be contrary to the nonproliferation goals or 
     foreign policy interests of the United States.
       (2) The export of certain commodities and technology may 
     adversely affect the national security and foreign policy of 
     the United States by making a significant contribution to the 
     military potential of countries or by enhancing the 
     capability of countries to design, develop, test, produce, 
     stockpile, or use weapons of mass destruction and missile 
     delivery systems, and other significant military 
     capabilities. Therefore, the administration of export 
     controls should emphasize the control of these exports.
       (3) The acquisition of sensitive commodities and 
     technologies by those countries and end users whose actions 
     or policies run counter to United States national security or 
     foreign policy interests may enhance the military 
     capabilities of those countries, particularly their ability 
     to design, develop, test, produce, stockpile, use, and 
     deliver nuclear, chemical, and biological weapons and missile 
     delivery systems, and other significant military 
     capabilities. This enhancement threatens the security of the 
     United States and its allies. The availability to countries 
     and end users of items that contribute to military 
     capabilities or the proliferation of weapons of mass 
     destruction is a fundamental concern of the United States and 
     should be eliminated through deterrence, negotiations, and 
     other appropriate means whenever possible.
       (4) The national security of the United States depends not 
     only on wise foreign policies and a strong defense, but also 
     a vibrant national economy. To be truly effective, export 
     controls should be applied uniformly by all suppliers.
       (5) On November 8, 1995, the President continued the 
     national emergency declared in Executive Order No. 12938 of 
     November 14, 1994, ``with respect to the unusual and 
     extraordinary threat to the national security, foreign 
     policy, and economy of the United States posed by the 
     proliferation of nuclear, biological, and chemical weapons 
     and the means of delivering such weapons''.
       (6) A successor regime to COCOM (the Coordinating Committee 
     for Multilateral Export Controls) has not been established. 
     Currently, each nation is determining independently which 
     dual-use military items, if any, will be controlled for 
     export.
       (7) The United States should play a leading role in 
     promoting transparency and responsibility with regard to the 
     transfers of sensitive dual-use goods and technologies.
       (b) Sense of Congress.--It is the sense of the Congress 
     that--
       (1) establishing an international export control regime, 
     empowered to control exports of dual-use technology, is 
     critically important and should be a top priority for the 
     United States; and
       (2) the United States should strongly encourage its allies 
     and other friendly countries to--
       (A) adopt export controls that are the same or similar to 
     the export controls imposed by the United States on items on 
     the Commerce Control List;
       (B) strengthen enforcement of their export controls; and
       (C) explore the use of unilateral export controls where the 
     possibility exists that an export could contribute to the 
     enhancement of military capabilities or proliferation 
     described in paragraphs (3) and (5) of subsection (a).

     SEC. 1309. COUNTERPROLIFERATION PROGRAM REVIEW COMMITTEE.

       (a) Composition of the Committee.--Subsection (a) of 
     section 1605 of the National Defense Authorization Act for 
     Fiscal Year 1994 (22 U.S.C. 2751 note) is amended by adding 
     at the end the following new paragraph:
       ``(5) The Assistant to the Secretary of Defense for Nuclear 
     and Chemical and Biological Defense Programs shall serve as 
     executive secretary to the committee.''.
       (b) Additional Purpose of the Committee.--Subsection 
     (b)(1)(A) of such section is amended by inserting ``and 
     efforts, including efforts to stem the proliferation of 
     weapons of mass destruction and to negate paramilitary and 
     terrorist threats involving weapons of mass destruction'' 
     after ``counterproliferation policy''.
       (c) Four-Year Extension of the Committee.--Subsection (f) 
     of such section is amended by striking out ``September 30, 
     1996'' and inserting in lieu thereof ``September 30, 2000''.
       (d) Reports on Counterproliferation Activities and 
     Programs.--Section 1503 of the National Defense Authorization 
     Act for Fiscal Year 1995 (22 U.S.C. 2751 note) is amended--
       (1) in subsection (a)--
       (A) by striking out ``Report Required.--(1) Not later than 
     May 1, 1995 and May 1, 1996, the Secretary'' and inserting in 
     lieu thereof ``Annual Report Required.--Not later than May 1 
     of each year, the Secretary''; and
       (B) by striking out paragraph (2); and
       (2) by adding at the end the following new subsections:
       ``(d) Review Committee Charter Defined.--For purposes of 
     this section, the term `Review Committee charter' means 
     section 1605 of the National Defense Authorization Act for 
     Fiscal Year 1994 (22 U.S.C. 2751 note).
       ``(e) Termination of Requirement.--The final report 
     required under subsection (a) is the report for the year 
     following the year in which the Counterproliferation Program 
     Review Committee established under the Review Committee 
     Charter ceases to exist.''.

     SEC. 1310. SENSE OF CONGRESS CONCERNING ASSISTING OTHER 
                   COUNTRIES TO IMPROVE SECURITY OF FISSILE 
                   MATERIAL.

       (a) Findings.--Congress finds the following:
       (1) With the end of the Cold War, the world is faced with 
     the need to manage the dismantling of vast numbers of nuclear 
     weapons and the disposition of the fissile materials that 
     they contain.

[[Page H9072]]

       (2) If recently agreed reductions in nuclear weapons are 
     fully implemented, tens of thousands of nuclear weapons, 
     containing a hundred tons or more of plutonium and many 
     hundreds of tons of highly enriched uranium, will no longer 
     be needed for military purposes.
       (3) Plutonium and highly enriched uranium are the essential 
     ingredients of nuclear weapons.
       (4) Limits on access to plutonium and highly enriched 
     uranium are the primary technical barrier to acquiring 
     nuclear weapons capability in the world today.
       (5) Several kilograms of plutonium, or several times that 
     amount of highly enriched uranium, are sufficient to make a 
     nuclear weapon.
       (6) Plutonium and highly enriched uranium will continue to 
     pose a potential threat for as long as they exist.
       (7) Action is required to secure and account for plutonium 
     and highly enriched uranium.
       (8) It is in the national interest of the United States 
     to--
       (A) minimize the risk that fissile materials could be 
     obtained by unauthorized parties;
       (B) minimize the risk that fissile materials could be 
     reintroduced into the arsenals from which they came, halting 
     or reversing the arms reduction process; and
       (C) strengthen the national and international control 
     mechanisms and incentives designed to ensure continued arms 
     reductions and prevent the spread of nuclear weapons.
       (b) Sense of Congress.--In light of the findings contained 
     in subsection (a), it is the sense of Congress that the 
     United States has a national security interest in assisting 
     other countries to improve the security of their stocks of 
     fissile material.

     SEC. 1311. REVIEW BY DIRECTOR OF CENTRAL INTELLIGENCE OF 
                   NATIONAL INTELLIGENCE ESTIMATE 95-19.

       (a) Review.--The Director of Central Intelligence shall 
     conduct a review of the underlying assumptions and 
     conclusions of the National Intelligence Estimate designated 
     as NIE 95-19 and entitled ``Emerging Missile Threats to North 
     America During the Next 15 Years'', released by the Director 
     in November 1995.
       (b) Methodology for Review.--The Director shall carry out 
     the review under subsection (a) through a panel of 
     independent, nongovernmental individuals with appropriate 
     expertise and experience. Such a panel shall be convened by 
     the Director not later than 45 days after the date of the 
     enactment of this Act.
       (c) Report.--The Director shall submit the findings 
     resulting from the review under subsection (a), together with 
     any comments of the Director on the review and the findings, 
     to Congress not later than three months after the appointment 
     of the Commission under section 1321.
 Subtitle B--Commission to Assess the Ballistic Missile Threat to the 
                             United States

     SEC. 1321. ESTABLISHMENT OF COMMISSION.

       (a) Establishment.--There is hereby established a 
     commission to be known as the ``Commission to Assess the 
     Ballistic Missile Threat to the United States'' (hereinafter 
     in this subtitle referred to as the ``Commission'').
       (b) Composition.--The Commission shall be composed of nine 
     members appointed by the Director of Central Intelligence. In 
     selecting individuals for appointment to the Commission, the 
     Director should consult with--
       (1) the Speaker of the House of Representatives concerning 
     the appointment of three of the members of the Commission;
       (2) the majority leader of the Senate concerning the 
     appointment of three of the members of the Commission; and
       (3) the minority leader of the House of Representatives and 
     the minority leader of the Senate concerning the appointment 
     of three of the members of the Commission.
       (c) Qualifications.--Members of the Commission shall be 
     appointed from among private United States citizens with 
     knowledge and expertise in the political and military aspects 
     of proliferation of ballistic missiles and the ballistic 
     missile threat to the United States.
       (d) Chairman.--The Speaker of the House of Representatives, 
     after consultation with the majority leader of the Senate and 
     the minority leaders of the House of Representatives and the 
     Senate, shall designate one of the members of the Commission 
     to serve as chairman of the Commission.
       (e) Period of Appointment; Vacancies.--Members shall be 
     appointed for the life of the Commission. Any vacancy in the 
     Commission shall be filled in the same manner as the original 
     appointment.
       (f) Security Clearances.--All members of the Commission 
     shall hold appropriate security clearances.
       (g) Initial Organization Requirements.--(1) All 
     appointments to the Commission shall be made not later than 
     45 days after the date of the enactment of this Act.
       (2) The Commission shall convene its first meeting not 
     later than 30 days after the date as of which all members of 
     the Commission have been appointed, but not earlier than 
     October 15, 1996.

     SEC. 1322. DUTIES OF COMMISSION.

       (a) Review of Ballistic Missile Threat.--The Commission 
     shall assess the nature and magnitude of the existing and 
     emerging ballistic missile threat to the United States.
       (b) Cooperation From Government Officials.--In carrying out 
     its duties, the Commission should receive the full and timely 
     cooperation of the Secretary of Defense, the Director of 
     Central Intelligence, and any other United States Government 
     official responsible for providing the Commission with 
     analyses, briefings, and other information necessary for the 
     fulfillment of its responsibilities.

     SEC. 1323. REPORT.

       The Commission shall, not later than six months after the 
     date of its first meeting, submit to the Congress a report on 
     its findings and conclusions.

     SEC. 1324. POWERS.

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

     SEC. 1325. COMMISSION PROCEDURES.

       (a) Meetings.--The Commission shall meet at the call of the 
     Chairman.
       (b) Quorum.--(1) Five members of the Commission shall 
     constitute a quorum other than for the purpose of holding 
     hearings.
       (2) The Commission shall act by resolution agreed to by a 
     majority of the members of the Commission.
       (c) Commission.--The Commission may establish panels 
     composed of less than full membership of the Commission for 
     the purpose of carrying out the Commission's duties. The 
     actions of each such panel shall be subject to the review and 
     control of the Commission. Any findings and determinations 
     made by such a panel shall not be considered the findings and 
     determinations of the Commission unless approved by the 
     Commission.
       (d) Authority of Individuals To Act for Commission.--Any 
     member or agent of the Commission may, if authorized by the 
     Commission, take any action which the Commission is 
     authorized to take under this subtitle.

     SEC. 1326. PERSONNEL MATTERS.

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

     SEC. 1327. MISCELLANEOUS ADMINISTRATIVE PROVISIONS.

       (a) Postal and Printing Services.--The Commission may use 
     the United States mails and obtain printing and binding 
     services in the same manner and under the same conditions as 
     other departments and agencies of the Federal Government.
       (b) Miscellaneous Administrative and Support Services.--The 
     Director of Central Intelligence shall furnish the 
     Commission, on a reimbursable basis, any administrative and 
     support services requested by the Commission.

     SEC. 1328. FUNDING.

       Funds for activities of the Commission shall be provided 
     from amounts appropriated for the Department of Defense for 
     operation and maintenance for Defense-wide activities for 
     fiscal year 1997. Upon receipt of a written certification 
     from the Chairman of the Commission specifying the funds 
     required for the activities of the Commission, the Secretary

[[Page H9073]]

     of Defense shall promptly disburse to the Commission, from 
     such amounts, the funds required by the Commission as stated 
     in such certification.

     SEC. 1329. TERMINATION OF THE COMMISSION.

       The Commission shall terminate 60 days after the date of 
     the submission of its report under section 1323.
         TITLE XIV--DEFENSE AGAINST WEAPONS OF MASS DESTRUCTION
Sec. 1401. Short title.
Sec. 1402. Findings.
Sec. 1403. Definitions.

                   Subtitle A--Domestic Preparedness

Sec. 1411. Response to threats of terrorist use of weapons of mass 
              destruction.
Sec. 1412. Emergency response assistance program.
Sec. 1413. Nuclear, chemical, and biological emergency response.
Sec. 1414. Chemical-biological emergency response team.
Sec. 1415. Testing of preparedness for emergencies involving nuclear, 
              radiological, chemical, and biological weapons.
Sec. 1416. Military assistance to civilian law enforcement officials in 
              emergency situations involving biological or chemical 
              weapons.
Sec. 1417. Rapid response information system.

  Subtitle B--Interdiction of Weapons of Mass Destruction and Related 
                               Materials

Sec. 1421. Procurement of detection equipment United States border 
              security.
Sec. 1422. Extension of coverage of International Emergency Economic 
              Powers Act.
Sec. 1423. Sense of Congress concerning criminal penalties.
Sec. 1424. International border security.

Subtitle C--Control and Disposition of Weapons of Mass Destruction and 
            Related Materials Threatening the United States

Sec. 1431. Coverage of weapons-usable fissile materials in Cooperative 
              Threat Reduction programs on elimination or 
              transportation of nuclear weapons.
Sec. 1432. Elimination of plutonium production.

    Subtitle D--Coordination of Policy and Countermeasures Against 
              Proliferation of Weapons of Mass Destruction

Sec. 1441. National Coordinator on Nonproliferation.
Sec. 1442. National Security Council Committee on Nonproliferation.
Sec. 1443. Comprehensive preparedness program.
Sec. 1444. Termination.

                       Subtitle E--Miscellaneous

Sec. 1451. Sense of Congress concerning contracting policy.
Sec. 1452. Transfers of allocations among Cooperative Threat Reduction 
              programs.
Sec. 1453. Sense of Congress concerning assistance to states of former 
              Soviet Union.
Sec. 1454. Purchase of low-enriched uranium derived from Russian highly 
              enriched uranium.
Sec. 1455. Sense of Congress concerning purchase, packaging, and 
              transportation of fissile materials at risk of theft.

     SEC. 1401. SHORT TITLE.

       This title may be cited as the ``Defense Against Weapons of 
     Mass Destruction Act of 1996''.

     SEC. 1402. FINDINGS.

       Congress makes the following findings:
       (1) Weapons of mass destruction and related materials and 
     technologies are increasingly available from worldwide 
     sources. Technical information relating to such weapons is 
     readily available on the Internet, and raw materials for 
     chemical, biological, and radiological weapons are widely 
     available for legitimate commercial purposes.
       (2) The former Soviet Union produced and maintained a vast 
     array of nuclear, biological, and chemical weapons of mass 
     destruction.
       (3) Many of the states of the former Soviet Union retain 
     the facilities, materials, and technologies capable of 
     producing additional quantities of weapons of mass 
     destruction.
       (4) The disintegration of the former Soviet Union was 
     accompanied by disruptions of command and control systems, 
     deficiencies in accountability for weapons, weapons-related 
     materials and technologies, economic hardships, and 
     significant gaps in border control among the states of the 
     former Soviet Union. The problems of organized crime and 
     corruption in the states of the former Soviet Union increase 
     the potential for proliferation of nuclear, radiological, 
     biological, and chemical weapons and related materials.
       (5) The conditions described in paragraph (4) have 
     substantially increased the ability of potentially hostile 
     nations, terrorist groups, and individuals to acquire weapons 
     of mass destruction and related materials and technologies 
     from within the states of the former Soviet Union and from 
     unemployed scientists who worked on those programs.
       (6) As a result of such conditions, the capability of 
     potentially hostile nations and terrorist groups to acquire 
     nuclear, radiological, biological, and chemical weapons is 
     greater than any time in history.
       (7) The President has identified North Korea, Iraq, Iran, 
     and Libya as hostile states which already possess some 
     weapons of mass destruction and are developing others.
       (8) The acquisition or the development and use of weapons 
     of mass destruction is well within the capability of many 
     extremist and terrorist movements, acting independently or as 
     proxies for foreign states.
       (9) Foreign states can transfer weapons to or otherwise aid 
     extremist and terrorist movements indirectly and with 
     plausible deniability.
       (10) Terrorist groups have already conducted chemical 
     attacks against civilian targets in the United States and 
     Japan, and a radiological attack in Russia.
       (11) The potential for the national security of the United 
     States to be threatened by nuclear, radiological, chemical, 
     or biological terrorism must be taken seriously.
       (12) There is a significant and growing threat of attack by 
     weapons of mass destruction on targets that are not military 
     targets in the usual sense of the term.
       (13) Concomitantly, the threat posed to the citizens of the 
     United States by nuclear, radiological, biological, and 
     chemical weapons delivered by unconventional means is 
     significant and growing.
       (14) Mass terror may result from terrorist incidents 
     involving nuclear, radiological, biological, or chemical 
     materials.
       (15) Facilities required for production of radiological, 
     biological, and chemical weapons are much smaller and harder 
     to detect than nuclear weapons facilities, and biological, 
     and chemical weapons can be deployed by alternative delivery 
     means other than long-range ballistic missiles.
       (16) Covert or unconventional means of delivery of nuclear, 
     radiological, biological, and chemical weapons include cargo 
     ships, passenger aircraft, commercial and private vehicles 
     and vessels, and commercial cargo shipments routed through 
     multiple destinations.
       (17) Traditional arms control efforts assume large state 
     efforts with detectable manufacturing programs and weapons 
     production programs, but are ineffective in monitoring and 
     controlling smaller, though potentially more dangerous, 
     unconventional proliferation efforts.
       (18) Conventional counterproliferation efforts would do 
     little to detect or prevent the rapid development of a 
     capability to suddenly manufacture several hundred chemical 
     or biological weapons with nothing but commercial supplies 
     and equipment.
       (19) The United States lacks adequate planning and 
     countermeasures to address the threat of nuclear, 
     radiological, biological, and chemical terrorism.
       (20) The Department of Energy has established a Nuclear 
     Emergency Response Team which is available in case of nuclear 
     or radiological emergencies, but no comparable units exist to 
     deal with emergencies involving biological, or chemical 
     weapons or related materials.
       (21) State and local emergency response personnel are not 
     adequately prepared or trained for incidents involving 
     nuclear, radiological, biological, or chemical materials.
       (22) Exercises of the Federal, State, and local response to 
     nuclear, radiological, biological, or chemical terrorism have 
     revealed serious deficiencies in preparedness and severe 
     problems of coordination.
       (23) The development of, and allocation of responsibilities 
     for, effective countermeasures to nuclear, radiological, 
     biological, or chemical terrorism in the United States 
     requires well-coordinated participation of many Federal 
     agencies, and careful planning by the Federal Government and 
     State and local governments.
       (24) Training and exercises can significantly improve the 
     preparedness of State and local emergency response personnel 
     for emergencies involving nuclear, radiological, biological, 
     or chemical weapons or related materials.
       (25) Sharing of the expertise and capabilities of the 
     Department of Defense, which traditionally has provided 
     assistance to Federal, State, and local officials in 
     neutralizing, dismantling, and disposing of explosive 
     ordnance, as well as radiological, biological, and chemical 
     materials, can be a vital contribution to the development and 
     deployment of countermeasures against nuclear, biological, 
     and chemical weapons of mass destruction.
       (26) The United States lacks effective policy coordination 
     regarding the threat posed by the proliferation of weapons of 
     mass destruction.

     SEC. 1403. DEFINITIONS.

       In this title:
       (1) The term ``weapon of mass destruction'' means any 
     weapon or device that is intended, or has the capability, to 
     cause death or serious bodily injury to a significant number 
     of people through the release, dissemination, or impact of--
       (A) toxic or poisonous chemicals or their precursors;
       (B) a disease organism; or
       (C) radiation or radioactivity.
       (2) The term ``independent states of the former Soviet 
     Union'' has the meaning given that term in section 3 of the 
     FREEDOM Support Act (22 U.S.C. 5801).
       (3) The term ``highly enriched uranium'' means uranium 
     enriched to 20 percent or more in the isotope U-235.

[[Page H9074]]

                   Subtitle A--Domestic Preparedness

     SEC. 1411. RESPONSE TO THREATS OF TERRORIST USE OF WEAPONS OF 
                   MASS DESTRUCTION.

       (a) Enhanced Response Capability.--In light of the 
     potential for terrorist use of weapons of mass destruction 
     against the United States, the President shall take immediate 
     action--
       (1) to enhance the capability of the Federal Government to 
     prevent and respond to terrorist incidents involving weapons 
     of mass destruction; and
       (2) to provide enhanced support to improve the capabilities 
     of State and local emergency response agencies to prevent and 
     respond to such incidents at both the national and the local 
     level.
       (b) Report Required.--Not later than January 31, 1997, the 
     President shall transmit to Congress a report containing--
       (1) an assessment of the capabilities of the Federal 
     Government to prevent and respond to terrorist incidents 
     involving weapons of mass destruction and to support State 
     and local prevention and response efforts;
       (2) requirements for improvements in those capabilities; 
     and
       (3) the measures that should be taken to achieve such 
     improvements, including additional resources and legislative 
     authorities that would be required.

     SEC. 1412. EMERGENCY RESPONSE ASSISTANCE PROGRAM.

       (a) Program Required.--(1) The Secretary of Defense shall 
     carry out a program to provide civilian personnel of Federal, 
     State, and local agencies with training and expert advice 
     regarding emergency responses to a use or threatened use of a 
     weapon of mass destruction or related materials.
       (2) The President may designate the head of an agency other 
     than the Department of Defense to assume the responsibility 
     for carrying out the program on or after October 1, 1999, and 
     relieve the Secretary of Defense of that responsibility upon 
     the assumption of the responsibility by the designated 
     official.
       (3) In this section, the official responsible for carrying 
     out the program is referred to as the ``lead official''.
       (b) Coordination.--In carrying out the program, the lead 
     official shall coordinate with each of the following 
     officials who is not serving as the lead official:
       (1) The Director of the Federal Emergency Management 
     Agency.
       (2) The Secretary of Energy.
       (3) The Secretary of Defense.
       (4) The heads of any other Federal, State, and local 
     government agencies that have an expertise or 
     responsibilities relevant to emergency responses described in 
     subsection (a)(1).
       (c) Eligible Participants.--The civilian personnel eligible 
     to receive assistance under the program are civilian 
     personnel of Federal, State, and local agencies who have 
     emergency preparedness responsibilities.
       (d) Involvement of Other Federal Agencies.--(1) The lead 
     official may use personnel and capabilities of Federal 
     agencies outside the agency of the lead official to provide 
     training and expert advice under the program.
       (2)(A) Personnel used under paragraph (1) shall be 
     personnel who have special skills relevant to the particular 
     assistance that the personnel are to provide.
       (B) Capabilities used under paragraph (1) shall be 
     capabilities that are especially relevant to the particular 
     assistance for which the capabilities are used.
       (3) If the lead official is not the Secretary of Defense, 
     and requests assistance from the Department of Defense that, 
     in the judgment of the Secretary of Defense would affect 
     military readiness or adversely affect national security, the 
     Secretary of Defense may appeal the request for Department of 
     Defense assistance by the lead official to the President.
       (e) Available Assistance.--Assistance available under this 
     program shall include the following:
       (1) Training in the use, operation, and maintenance of 
     equipment for--
       (A) detecting a chemical or biological agent or nuclear 
     radiation;
       (B) monitoring the presence of such an agent or radiation;
       (C) protecting emergency personnel and the public; and
       (D) decontamination.
       (2) Establishment of a designated telephonic link (commonly 
     referred to as a ``hot line'') to a designated source of 
     relevant data and expert advice for the use of State or local 
     officials responding to emergencies involving a weapon of 
     mass destruction or related materials.
       (3) Use of the National Guard and other reserve components 
     for purposes authorized under this section that are specified 
     by the lead official (with the concurrence of the Secretary 
     of Defense if the Secretary is not the lead official).
       (4) Loan of appropriate equipment.
       (f) Limitations on Department of Defense Assistance to Law 
     Enforcement Agencies.--Assistance provided by the Department 
     of Defense to law enforcement agencies under this section 
     shall be provided under the authority of, and subject to the 
     restrictions provided in, chapter 18 of title 10, United 
     States Code.
       (g) Administration of Department of Defense Assistance.--
     The Secretary of Defense shall designate an official within 
     the Department of Defense to serve as the executive agent of 
     the Secretary for the coordination of the provision of 
     Department of Defense assistance under this section.
       (h) Funding.--(1) Of the total amount authorized to be 
     appropriated under section 301, $35,000,000 is available for 
     the program required under this section.
       (2) Of the amount available for the program pursuant to 
     paragraph (1), $10,500,000 is available for use by the 
     Secretary of Defense to assist the Secretary of Health and 
     Human Services in the establishment of metropolitan emergency 
     medical response teams (commonly referred to as 
     ``Metropolitan Medical Strike Force Teams'') to provide 
     medical services that are necessary or potentially necessary 
     by reason of a use or threatened use of a weapon of mass 
     destruction.
       (3) The amount available for the program under paragraph 
     (1) is in addition to any other amounts authorized to be 
     appropriated for the program under section 301.

     SEC. 1413. NUCLEAR, CHEMICAL, AND BIOLOGICAL EMERGENCY 
                   RESPONSE.

       (a) Department of Defense.--The Secretary of Defense shall 
     designate an official within the Department of Defense as the 
     executive agent for--
       (1) the coordination of Department of Defense assistance to 
     Federal, State, and local officials in responding to threats 
     involving biological or chemical weapons or related materials 
     or technologies, including assistance in identifying, 
     neutralizing, dismantling, and disposing of biological and 
     chemical weapons and related materials and technologies; and
       (2) the coordination of Department of Defense assistance to 
     the Department of Energy in carrying out that department's 
     responsibilities under subsection (b).
       (b) Department of Energy.--The Secretary of Energy shall 
     designate an official within the Department of Energy as the 
     executive agent for--
       (1) the coordination of Department of Energy assistance to 
     Federal, State, and local officials in responding to threats 
     involving nuclear, chemical, and biological weapons or 
     related materials or technologies, including assistance in 
     identifying, neutralizing, dismantling, and disposing of 
     nuclear weapons and related materials and technologies; and
       (2) the coordination of Department of Energy assistance to 
     the Department of Defense in carrying out that department's 
     responsibilities under subsection (a).
       (c) Funding.--Of the total amount authorized to be 
     appropriated under section 301, $15,000,000 is available for 
     providing assistance described in subsection (a).

     SEC. 1414. CHEMICAL-BIOLOGICAL EMERGENCY RESPONSE TEAM.

       (a) Department of Defense Rapid Response Team.--The 
     Secretary of Defense shall develop and maintain at least one 
     domestic terrorism rapid response team composed of members of 
     the Armed Forces and employees of the Department of Defense 
     who are capable of aiding Federal, State, and local officials 
     in the detection, neutralization, containment, dismantlement, 
     and disposal of weapons of mass destruction containing 
     chemical, biological, or related materials.
       (b) Addition to Federal Response Plan.--Not later than 
     December 31, 1997, the Director of the Federal Emergency 
     Management Agency shall develop and incorporate into existing 
     Federal emergency response plans and programs prepared under 
     section 611(b) of the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act (42 U.S.C. 5196(b)) guidance on the 
     use and deployment of the rapid response teams established 
     under this section to respond to emergency involving weapons 
     of mass destruction. The Director shall carry out this 
     subsection in consultation with the Secretary of Defense and 
     the heads of other Federal agencies involved with the 
     emergency response plans.

     SEC. 1415. TESTING OF PREPAREDNESS FOR EMERGENCIES INVOLVING 
                   NUCLEAR, RADIOLOGICAL, CHEMICAL, AND BIOLOGICAL 
                   WEAPONS.

       (a) Emergencies Involving Chemical or Biological Weapons.--
     (1) The Secretary of Defense shall develop and carry out a 
     program for testing and improving the responses of Federal, 
     State, and local agencies to emergencies involving biological 
     weapons and related materials and emergencies involving 
     chemical weapons and related materials.
       (2) The program shall include exercises to be carried out 
     during each of five successive fiscal years beginning with 
     fiscal year 1997.
       (3) In developing and carrying out the program, the 
     Secretary shall coordinate with the Director of the Federal 
     Bureau of Investigation, the Director of the Federal 
     Emergency Management Agency, the Secretary of Energy, and the 
     heads of any other Federal, State, and local government 
     agencies that have an expertise or responsibilities relevant 
     to emergencies described in paragraph (1).
       (b) Emergencies Involving Nuclear and Radiological 
     Weapons.--(1) The Secretary of Energy shall develop and carry 
     out a program for testing and improving the responses of 
     Federal, State, and local agencies to emergencies involving 
     nuclear and radiological weapons and related materials.
       (2) The program shall include exercises to be carried out 
     during each of five successive fiscal years beginning with 
     fiscal year 1997.
       (3) In developing and carrying out the program, the 
     Secretary shall coordinate with the Director of the Federal 
     Bureau of Investigation, the Director of the Federal 
     Emergency Management Agency, the Secretary of Defense, and 
     the heads of any other Federal, State, and local government 
     agencies that

[[Page H9075]]

     have an expertise or responsibilities relevant to emergencies 
     described in paragraph (1).
       (c) Annual Revisions of Programs.--The official responsible 
     for carrying out a program developed under subsection (a) or 
     (b) shall revise the program not later than June 1 in each 
     fiscal year covered by the program. The revisions shall 
     include adjustments that the official determines necessary or 
     appropriate on the basis of the lessons learned from the 
     exercise or exercises carried out under the program in the 
     fiscal year, including lessons learned regarding coordination 
     problems and equipment deficiencies.
       (d) Option To Transfer Responsibility.--(1) The President 
     may designate the head of an agency outside the Department of 
     Defense to assume the responsibility for carrying out the 
     program developed under subsection (a) beginning on or after 
     October 1, 1999, and relieve the Secretary of Defense of that 
     responsibility upon the assumption of the responsibility by 
     the designated official.
       (2) The President may designate the head of an agency 
     outside the Department of Energy to assume the responsibility 
     for carrying out the program developed under subsection (b) 
     beginning on or after October 1, 1999, and relieve the 
     Secretary of Energy of that responsibility upon the 
     assumption of the responsibility by the designated official.
       (e) Funding.--Of the total amount authorized to be 
     appropriated under section 301, $15,000,000 is available for 
     the development and execution of the programs required by 
     this section, including the participation of State and local 
     agencies in exercises carried out under the programs.

     SEC. 1416. MILITARY ASSISTANCE TO CIVILIAN LAW ENFORCEMENT 
                   OFFICIALS IN EMERGENCY SITUATIONS INVOLVING 
                   BIOLOGICAL OR CHEMICAL WEAPONS.

       (a) Assistance Authorized.--(1) Chapter 18 of title 10, 
     United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 382. Emergency situations involving chemical or 
       biological weapons of mass destruction

       ``(a) In General.--The Secretary of Defense, upon the 
     request of the Attorney General, may provide assistance in 
     support of Department of Justice activities relating to the 
     enforcement of section 175 or 2332c of title 18 during an 
     emergency situation involving a biological or chemical weapon 
     of mass destruction. Department of Defense resources, 
     including personnel of the Department of Defense, may be used 
     to provide such assistance if--
       ``(1) the Secretary of Defense and the Attorney General 
     jointly determine that an emergency situation exists; and
       ``(2) the Secretary of Defense determines that the 
     provision of such assistance will not adversely affect the 
     military preparedness of the United States.
       ``(b) Emergency Situations Covered.--In this section, the 
     term `emergency situation involving a biological or chemical 
     weapon of mass destruction' means a circumstance involving a 
     biological or chemical weapon of mass destruction--
       ``(1) that poses a serious threat to the interests of the 
     United States; and
       ``(2) in which--
       ``(A) civilian expertise and capabilities are not readily 
     available to provide the required assistance to counter the 
     threat immediately posed by the weapon involved;
       ``(B) special capabilities and expertise of the Department 
     of Defense are necessary and critical to counter the threat 
     posed by the weapon involved; and
       ``(C) enforcement of section 175 or 2332c of title 18 would 
     be seriously impaired if the Department of Defense assistance 
     were not provided.
       ``(c) Forms of Assistance.--The assistance referred to in 
     subsection (a) includes the operation of equipment (including 
     equipment made available under section 372 of this title) to 
     monitor, contain, disable, or dispose of the weapon involved 
     or elements of the weapon.
       ``(d) Regulations.--(1) The Secretary of Defense and the 
     Attorney General shall jointly prescribe regulations 
     concerning the types of assistance that may be provided under 
     this section. Such regulations shall also describe the 
     actions that Department of Defense personnel may take in 
     circumstances incident to the provision of assistance under 
     this section.
       ``(2)(A) Except as provided in subparagraph (B), the 
     regulations may not authorize the following actions:
       ``(i) Arrest.
       ``(ii) Any direct participation in conducting a search for 
     or seizure of evidence related to a violation of section 175 
     or 2332c of title 18.
       ``(iii) Any direct participation in the collection of 
     intelligence for law enforcement purposes.
       ``(B) The regulations may authorize an action described in 
     subparagraph (A) to be taken under the following conditions:
       ``(i) The action is considered necessary for the immediate 
     protection of human life, and civilian law enforcement 
     officials are not capable of taking the action.
       ``(ii) The action is otherwise authorized under subsection 
     (c) or under otherwise applicable law.
       ``(e) Reimbursements.--The Secretary of Defense shall 
     require reimbursement as a condition for providing assistance 
     under this section to the extent required under section 377 
     of this title.
       ``(f) Delegations of Authority.--(1) Except to the extent 
     otherwise provided by the Secretary of Defense, the Deputy 
     Secretary of Defense may exercise the authority of the 
     Secretary of Defense under this section. The Secretary of 
     Defense may delegate the Secretary's authority under this 
     section only to an Under Secretary of Defense or an Assistant 
     Secretary of Defense and only if the Under Secretary or 
     Assistant Secretary to whom delegated has been designated by 
     the Secretary to act for, and to exercise the general powers 
     of, the Secretary.
       ``(2) Except to the extent otherwise provided by the 
     Attorney General, the Deputy Attorney General may exercise 
     the authority of the Attorney General under this section. The 
     Attorney General may delegate that authority only to the 
     Associate Attorney General or an Assistant Attorney General 
     and only if the Associate Attorney General or Assistant 
     Attorney General to whom delegated has been designated by the 
     Attorney General to act for, and to exercise the general 
     powers of, the Attorney General.
       ``(g) Relationship to Other Authority.--Nothing in this 
     section shall be construed to restrict any executive branch 
     authority regarding use of members of the armed forces or 
     equipment of the Department of Defense that was in effect 
     before the date of the enactment of the National Defense 
     Authorization Act for Fiscal Year 1997.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:
``382. Emergency situations involving chemical or biological weapons of 
              mass destruction.''.
       (b) Conforming Amendment to Condition for Providing 
     Equipment and Facilities.--Section 372(b)(1) of title 10, 
     United States Code, is amended by adding at the end the 
     following new sentence: ``The requirement for a determination 
     that an item is not reasonably available from another source 
     does not apply to assistance provided under section 382 of 
     this title pursuant to a request of the Attorney General for 
     the assistance.''.
       (c) Conforming Amendments Relating to Authority To Request 
     Assistance.--(1)(A) Chapter 10 of title 18, United States 
     Code, is amended by inserting after section 175 the following 
     new section:

     ``Sec. 175a. Requests for military assistance to enforce 
       prohibition in certain emergencies

       ``The Attorney General may request the Secretary of Defense 
     to provide assistance under section 382 of title 10 in 
     support of Department of Justice activities relating to the 
     enforcement of section 175 of this title in an emergency 
     situation involving a biological weapon of mass destruction. 
     The authority to make such a request may be exercised by 
     another official of the Department of Justice in accordance 
     with section 382(f)(2) of title 10.''.
       (B) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     175 the following new item:
``175a. Requests for military assistance to enforce prohibition in 
              certain emergencies.''.
       (2)(A) The chapter 133B of title 18, United States Code, 
     that relates to terrorism is amended by inserting after 
     section 2332c the following new section:

     ``Sec. 2332d. Requests for military assistance to enforce 
       prohibition in certain emergencies

       ``The Attorney General may request the Secretary of Defense 
     to provide assistance under section 382 of title 10 in 
     support of Department of Justice activities relating to the 
     enforcement of section 2332c of this title during an 
     emergency situation involving a chemical weapon of mass 
     destruction. The authority to make such a request may be 
     exercised by another official of the Department of Justice in 
     accordance with section 382(f)(2) of title 10.''.
       (B) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     2332c the following new item:
``2332d. Requests for military assistance to enforce prohibition in 
              certain emergencies.''.
       (d) Civilian Expertise.--The President shall take 
     reasonable measures to reduce the reliance of civilian law 
     enforcement officials on Department of Defense resources to 
     counter the threat posed by the use or potential use of 
     biological and chemical weapons of mass destruction within 
     the United States. The measures shall include--
       (1) actions to increase civilian law enforcement expertise 
     to counter such a threat; and
       (2) actions to improve coordination between civilian law 
     enforcement officials and other civilian sources of 
     expertise, within and outside the Federal Government, to 
     counter such a threat.
       (e) Reports.--The President shall submit to Congress the 
     following reports:
       (1) Not later than 90 days after the date of the enactment 
     of this Act, a report describing the respective policy 
     functions and operational roles of Federal agencies in 
     countering the threat posed by the use or potential use of 
     biological and chemical weapons of mass destruction within 
     the United States.
       (2) Not later than one year after such date, a report 
     describing--
       (A) the actions planned to be taken to carry out subsection 
     (d); and
       (B) the costs of such actions.
       (3) Not later than three years after such date, a report 
     updating the information provided in the reports submitted 
     pursuant to paragraphs (1) and (2), including the measures 
     taken pursuant to subsection (d).

[[Page H9076]]

     SEC. 1417. RAPID RESPONSE INFORMATION SYSTEM.

       (a) Inventory of Rapid Response Assets.--(1) The head of 
     each Federal Response Plan agency shall develop and maintain 
     an inventory of physical equipment and assets under the 
     jurisdiction of that agency that could be made available to 
     aid State and local officials in search and rescue and other 
     disaster management and mitigation efforts associated with an 
     emergency involving weapons of mass destruction. The agency 
     head shall submit a copy of the inventory, and any updates of 
     the inventory, to the Director of the Federal Emergency 
     Management Agency for inclusion in the master inventory 
     required under subsection (b).
       (2) Each inventory shall include a separate listing of any 
     equipment that is excess to the needs of that agency and 
     could be considered for disposal as excess or surplus 
     property for use for response and training with regard to 
     emergencies involving weapons of mass destruction.
       (b) Master Inventory.--The Director of the Federal 
     Emergency Management Agency shall compile and maintain a 
     comprehensive listing of all inventories prepared under 
     subsection (a). The first such master list shall be completed 
     not later than December 31, 1997, and shall be updated 
     annually thereafter.
       (c) Addition to Federal Response Plan.--Not later than 
     December 31, 1997, the Director of the Federal Emergency 
     Management Agency shall develop and incorporate into existing 
     Federal emergency response plans and programs prepared under 
     section 611(b) of the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act (42 U.S.C. 5196(b)) guidance on 
     accessing and using the physical equipment and assets 
     included in the master list developed under subsection to 
     respond to emergencies involving weapons of mass destruction.
       (d) Database on Chemical and Biological Materials.--The 
     Director of the Federal Emergency Management Agency, in 
     consultation with the Secretary of Defense, shall prepare a 
     database on chemical and biological agents and munitions 
     characteristics and safety precautions for civilian use. The 
     initial design and compilation of the database shall be 
     completed not later than December 31, 1997.
       (e) Access to Inventory and Database.--The Director of the 
     Federal Emergency Management Agency shall design and maintain 
     a system to give Federal, State, and local officials access 
     to the inventory listing and database maintained under this 
     section in the event of an emergency involving weapons of 
     mass destruction or to prepare and train to respond to such 
     an emergency. The system shall include a secure but 
     accessible emergency response hotline to access information 
     and request assistance.
  Subtitle B--Interdiction of Weapons of Mass Destruction and Related 
                               Materials

     SEC. 1421. PROCUREMENT OF DETECTION EQUIPMENT UNITED STATES 
                   BORDER SECURITY.

       Of the amount authorized to be appropriated by section 301, 
     $15,000,000 is available for the procurement of--
       (1) equipment capable of detecting the movement of weapons 
     of mass destruction and related materials into the United 
     States;
       (2) equipment capable of interdicting the movement of 
     weapons of mass destruction and related materials into the 
     United States; and
       (3) materials and technologies related to use of equipment 
     described in paragraph (1) or (2).

     SEC. 1422. EXTENSION OF COVERAGE OF INTERNATIONAL EMERGENCY 
                   ECONOMIC POWERS ACT.

       Section 206 of the International Emergency Economic Powers 
     Act (50 U.S.C. 1705) is amended--
       (1) in subsection (a), by inserting ``, or attempts to 
     violate,'' after ``violates''; and
       (2) in subsection (b), by inserting ``, or willfully 
     attempts to violate,'' after ``violates''.

     SEC. 1423. SENSE OF CONGRESS CONCERNING CRIMINAL PENALTIES.

       (a) Sense of Congress Concerning Inadequacy of Sentencing 
     Guidelines.--It is the sense of Congress that the sentencing 
     guidelines prescribed by the United States Sentencing 
     Commission for the offenses of importation, attempted 
     importation, exportation, and attempted exportation of 
     nuclear, biological, and chemical weapons materials 
     constitute inadequate punishment for such offenses.
       (b) Urging of Revison to Guidelines.--Congress urges the 
     United States Sentencing Commission to revise the relevant 
     sentencing guidelines to provide for increased penalties for 
     offenses relating to importation, attempted importation, 
     exportation, and attempted exportation of nuclear, 
     biological, or chemical weapons or related materials or 
     technologies under the following provisions of law:
       (1) Section 11 of the Export Administration Act of 1979 (50 
     U.S.C. App. 2410).
       (2) Sections 38 and 40 the Arms Export Control Act (22 
     U.S.C. 2778 and 2780).
       (3) The International Emergency Economic Powers Act (50 
     U.S.C. 1701 et seq.).
       (4) Section 309(c) of the Nuclear Non-Proliferation Act of 
     1978 (22 U.S.C. 2156a(c).

     SEC. 1424. INTERNATIONAL BORDER SECURITY.

       (a) Secretary of Defense Responsibility.--The Secretary of 
     Defense, in consultation and cooperation with the 
     Commissioner of Customs, shall carry out programs for 
     assisting customs officials and border guard officials in the 
     independent states of the former Soviet Union, the Baltic 
     states, and other countries of Eastern Europe in preventing 
     unauthorized transfer and transportation of nuclear, 
     biological, and chemical weapons and related materials. 
     Training, expert advice, maintenance of equipment, loan of 
     equipment, and audits may be provided under or in connection 
     with the programs.
       (b) Funding.--Of the total amount authorized to be 
     appropriated by section 301, $15,000,000 is available for 
     carrying out the programs referred to in subsection (a).
       (c) Assistance to States of the Former Soviet Union.--
     Assistance under programs referred to in subsection (a) may 
     (notwithstanding any provision of law prohibiting the 
     extension of foreign assistance to any of the newly 
     independents state of the former Soviet Union) be extended to 
     include an independent state of the former Soviet Union if 
     the President certifies to Congress that it is in the 
     national interest of the United States to extend assistance 
     under this section to that state.
Subtitle C--Control and Disposition of Weapons of Mass Destruction and 
            Related Materials Threatening the United States

     SEC. 1431. COVERAGE OF WEAPONS-USABLE FISSILE MATERIALS IN 
                   COOPERATIVE THREAT REDUCTION PROGRAMS ON 
                   ELIMINATION OR TRANSPORTATION OF NUCLEAR 
                   WEAPONS.

       Section 1201(b)(1) of the National Defense Authorization 
     Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 469; 
     22 U.S.C. 5955 note) is amended by inserting ``, fissile 
     material suitable for use in nuclear weapons,'' after ``other 
     weapons''.

     SEC. 1432. ELIMINATION OF PLUTONIUM PRODUCTION.

       (a) Replacement Program.--The Secretary of Energy, in 
     consultation with the Secretary of Defense, shall develop a 
     cooperative program with the Government of Russia to 
     eliminate the production of weapons grade plutonium by 
     modifying or replacing the reactor cores at Tomsk-7 and 
     Krasnoyarsk-26 with reactor cores that are less suitable for 
     the production of weapons-grade plutonium.
       (b) Program Requirements.--(1) The program shall be 
     designed to achieve completion of the modifications or 
     replacements of the reactor cores within three years after 
     the modification or replacement activities under the program 
     are begun.
       (2) The plan for the program shall--
       (A) specify--
       (i) successive steps for the modification or replacement of 
     the reactor cores; and
       (ii) clearly defined milestones to be achieved; and
       (B) include estimates of the costs of the program.
       (c) Submission of Program Plan to Congress.--Not later than 
     180 days after the date of the enactment of this Act, the 
     Secretary of Defense shall submit to Congress--
       (1) a plan for the program under subsection (a);
       (2) an estimate of the United States funding that is 
     necessary for carrying out the activities under the program 
     for each fiscal year covered by the program; and
       (3) a comparison of the benefits of the program with the 
     benefits of other nonproliferation programs.
    Subtitle D--Coordination of Policy and Countermeasures Against 
              Proliferation of Weapons of Mass Destruction

     SEC. 1441. NATIONAL COORDINATOR ON NONPROLIFERATION.

       (a) Designation of Position.--The President shall designate 
     an individual to serve in the Executive Office of the 
     President as the National Coordinator for Nonproliferation 
     Matters.
       (b) Duties.--The Coordinator, under the direction of the 
     National Security Council, shall advise and assist the 
     President by--
       (1) advising the President on nonproliferation of weapons 
     of mass destruction, including issues related to terrorism, 
     arms control, and international organized crime.
       (2) chairing the Committee on Nonproliferation established 
     under section 1342; and
       (3) taking such actions as are necessary to ensure that 
     there is appropriate emphasis in, cooperation on, and 
     coordination of, nonproliferation research efforts of the 
     United States, including activities of Federal agencies as 
     well as activities of contractors funded by the Federal 
     Government.
       (c) Allocation of Funds.--Of the total amount authorized to 
     be appropriated under section 301, $2,000,000 is available to 
     the Department of Defense for carrying out research referred 
     to in subsection (b)(3).

     SEC. 1442. NATIONAL SECURITY COUNCIL COMMITTEE ON 
                   NONPROLIFERATION.

       (a) Establishment.--The Committee on Nonproliferation (in 
     this section referred to as the ``Committee'') is established 
     as a committee of the National Security Council.
       (b) Membership.--(1) The Committee shall be composed of 
     representatives of the following:
       (A) The Secretary of State.
       (B) The Secretary of Defense.
       (C) The Director of Central Intelligence.
       (D) The Attorney General.
       (E) The Secretary of Energy.
       (F) The Administrator of the Federal Emergency Management 
     Agency.
       (G) The Secretary of the Treasury.
       (H) The Secretary of Commerce.
       (I) Such other members as the President may designate.

[[Page H9077]]

       (2) The National Coordinator for Nonproliferation Matters 
     shall chair the Committee on Nonproliferation.
       (c) Responsibilities.--The Committee has the following 
     responsibilities:
       (1) To review and coordinate Federal programs, policies, 
     and directives relating to the proliferation of weapons of 
     mass destruction and related materials and technologies, 
     including matters relating to terrorism and international 
     organized crime.
       (2) To make recommendations through the National Security 
     Council to the President regarding the following:
       (A) Integrated national policies for countering the threats 
     posed by weapons of mass destruction.
       (B) Options for integrating Federal agency budgets for 
     countering such threats.
       (C) Means to ensure that the Federal, State, and local 
     governments have adequate capabilities to manage crises 
     involving nuclear, radiological, biological, or chemical 
     weapons or related materials or technologies, and to manage 
     the consequences of a use of such a weapon or related 
     materials or technologies, and that use of those capabilities 
     is coordinated.
       (D) Means to ensure appropriate cooperation on, and 
     coordination of, the following:
       (i) Preventing the smuggling of weapons of mass destruction 
     and related materials and technologies.
       (ii) Promoting domestic and international law enforcement 
     efforts against proliferation-related efforts.
       (iii) Countering the involvement of organized crime groups 
     in proliferation-related activities.
       (iv) Safeguarding weapons of mass destruction materials and 
     related technologies.
       (v) Improving coordination and cooperation among 
     intelligence activities, law enforcement, and the Departments 
     of Defense, State, Commerce, and Energy in support of 
     nonproliferation and counterproliferation efforts.
       (vi) Improving export controls over materials and 
     technologies that can contribute to the acquisition of 
     weapons of mass destruction.
       (vii) Reducing proliferation of weapons of mass destruction 
     and related materials and technologies.

     SEC. 1443. COMPREHENSIVE PREPAREDNESS PROGRAM.

       (a) Program Required.--The President, acting through the 
     Committee on Nonproliferation established under section 1442, 
     shall develop a comprehensive program for carrying out this 
     title.
       (b) Content of Program.--The program set forth in the 
     report shall include specific plans as follows:
       (1) Plans for countering proliferation of weapons of mass 
     destruction and related materials and technologies.
       (2) Plans for training and equipping Federal, State, and 
     local officials for managing a crisis involving a use or 
     threatened use of a weapon of mass destruction, including the 
     consequences of the use of such a weapon.
       (3) Plans for providing for regular sharing of information 
     among intelligence, law enforcement, and customs agencies.
       (4) Plans for training and equipping law enforcement units, 
     customs services, and border security personnel to counter 
     the smuggling of weapons of mass destruction and related 
     materials and technologies.
       (5) Plans for establishing appropriate centers for 
     analyzing seized nuclear, radiological, biological, and 
     chemical weapons, and related materials and technologies.
       (6) Plans for establishing in the United States appropriate 
     legal controls and authorities relating to the exporting of 
     nuclear, radiological, biological, and chemical weapons, and 
     related materials and technologies.
       (7) Plans for encouraging and assisting governments of 
     foreign countries to implement and enforce laws that set 
     forth appropriate penalties for offenses regarding the 
     smuggling of weapons of mass destruction and related 
     materials and technologies.
       (8) Plans for building the confidence of the United States 
     and Russia in each other's controls over United States and 
     Russian nuclear weapons and fissile materials, including 
     plans for verifying the dismantlement of nuclear weapons.
       (9) Plans for reducing United States and Russian stockpiles 
     of excess plutonium, reflecting--
       (A) consideration of the desirability and feasibility of a 
     United States-Russian agreement governing fissile material 
     disposition and the specific technologies and approaches to 
     be used for disposition of excess plutonium; and
       (B) an assessment of the options for United States 
     cooperation with Russia in the disposition of Russian 
     plutonium.
       (10) Plans for studying the merits and costs of 
     establishing a global network of means for detecting and 
     responding to terroristic or other criminal use of biological 
     agents against people or other forms of life in the United 
     States or any foreign country.
       (c) Report.--(1) At the same time that the President 
     submits the budget for fiscal year 1998 to Congress pursuant 
     to section 1105(a) of title 31, United States Code, the 
     President shall submit to Congress a report that sets forth 
     the comprehensive program developed under subsection (a).
       (2) The report shall include the following:
       (A) The specific plans for the program that are required 
     under subsection (b).
       (B) Estimates of the funds necessary, by agency or 
     department, for carrying out such plans in fiscal year 1998 
     and the following five fiscal years.
       (3) The report shall be in an unclassified form. If there 
     is a classified version of the report, the President shall 
     submit the classified version at the same time.

     SEC. 1444. TERMINATION.

       After September 30, 1999, the President--
       (1) is not required to maintain a National Coordinator for 
     Nonproliferation Matters under section 1341; and
       (2) may terminate the Committee on Nonproliferation 
     established under section 1342.
                       Subtitle E--Miscellaneous

     SEC. 1451. SENSE OF CONGRESS CONCERNING CONTRACTING POLICY.

       It is the sense of Congress that the Secretary of Defense, 
     the Secretary of Energy, the Secretary of the Treasury, and 
     the Secretary of State, to the extent authorized by law, 
     should--
       (1) contract directly with suppliers in independent states 
     of the former Soviet Union when such action would--
       (A) result in significant savings of the programs referred 
     to in subtitle C; and
       (B) substantially expedite completion of the programs 
     referred to in subtitle C; and
       (2) seek means to use innovative contracting approaches to 
     avoid delay and increase the effectiveness of such programs 
     and of the exercise of such authorities.

     SEC. 1452. TRANSFERS OF ALLOCATIONS AMONG COOPERATIVE THREAT 
                   REDUCTION PROGRAMS.

       Congress finds that--
       (1) the various Cooperative Threat Reduction programs are 
     being carried out at different rates in the various countries 
     covered by such programs; and.
       (2) it is necessary to authorize transfers of funding 
     allocations among the various programs in order to maximize 
     the effectiveness of United States efforts under such 
     programs.

     SEC. 1453. SENSE OF CONGRESS CONCERNING ASSISTANCE TO STATES 
                   OF FORMER SOVIET UNION.

       It is the sense of Congress that--
       (1) the Cooperative Threat Reduction programs and other 
     United States programs authorized in the National Defense 
     Authorization Act for Fiscal Years 1993 and 1994 should be 
     expanded by offering assistance under those programs to other 
     independent states of the former Soviet Union in addition to 
     Russia, Ukraine, Kazakstan, and Belarus; and
       (2) the President should offer assistance to additional 
     independent states of the former Soviet Union in each case in 
     which the participation of such states would benefit national 
     security interests of the United States by improving border 
     controls and safeguards over materials and technology 
     associated with weapons of mass destruction.

     SEC. 1454. PURCHASE OF LOW-ENRICHED URANIUM DERIVED FROM 
                   RUSSIAN HIGHLY ENRICHED URANIUM.

       (a) Sense of Congress.--It is the sense of Congress that 
     the allies of the United States and other nations should 
     participate in efforts to ensure that stockpiles of weapons-
     grade nuclear material are reduced.
       (b) Actions by the Secretary of State.--Congress urges the 
     Secretary of State to encourage, in consultation with the 
     Secretary of Energy, other countries to purchase low-enriched 
     uranium that is derived from highly enriched uranium 
     extracted from Russian nuclear weapons.

     SEC. 1455. SENSE OF CONGRESS CONCERNING PURCHASE, PACKAGING, 
                   AND TRANSPORTATION OF FISSILE MATERIALS AT RISK 
                   OF THEFT.

       It is the sense of Congress that--
       (1) the Secretary of Defense, the Secretary of Energy, the 
     Secretary of the Treasury, and the Secretary of State should 
     purchase, package, and transport to secure locations weapons-
     grade nuclear materials from a stockpile of such materials if 
     such officials determine that--
       (A) there is a significant risk of theft of such materials; 
     and
       (B) there is no reasonable and economically feasible 
     alternative for securing such materials; and
       (2) if it is necessary to do so in order to secure the 
     materials, the materials should be imported into the United 
     States, subject to the laws and regulations that are 
     applicable to the importation of such materials into the 
     United States.
  TITLE XV--COOPERATIVE THREAT REDUCTION WITH STATES OF FORMER SOVIET 
                                 UNION
Sec. 1501. Specification of Cooperative Threat Reduction programs.
Sec. 1502. Fiscal year 1997 funding allocations.
Sec. 1503. Prohibition on use of funds for specified purposes.
Sec. 1504. Limitation on use of funds until specified reports are 
              submitted.
Sec. 1505. Availability of funds.

     SEC. 1501. SPECIFICATION OF COOPERATIVE THREAT REDUCTION 
                   PROGRAMS.

       (a) In General.--For purposes of section 301 and other 
     provisions of this Act, Cooperative Threat Reduction programs 
     are the programs specified in subsection (b).
       (b) Specified Programs.--The programs referred to in 
     subsection (a) are the following programs with respect to 
     states of the former Soviet Union:
       (1) Programs to facilitate the elimination, and the safe 
     and secure transportation and storage, of nuclear, chemical, 
     and other weapons and their delivery vehicles.

[[Page H9078]]

       (2) Programs to facilitate the safe and secure storage of 
     fissile materials derived from the elimination of nuclear 
     weapons.
       (3) Programs to prevent the proliferation of weapons, 
     weapons components, and weapons-related technology and 
     expertise.
       (4) Programs to expand military-to-military and defense 
     contacts.

     SEC. 1502. FISCAL YEAR 1997 FUNDING ALLOCATIONS.

       (a) In General.--Of the amount appropriated pursuant to the 
     authorization of appropriations in section 301 for 
     Cooperative Threat Reduction programs, not more than the 
     following amounts may be obligated for the purposes 
     specified:
       (1) For planning and design of a chemical weapons 
     destruction facility in Russia, $78,500,000.
       (2) For elimination of strategic offensive arms in Russia, 
     $52,000,000.
       (3) For strategic nuclear arms elimination in Ukraine, 
     $47,000,000.
       (4) For planning and design of a storage facility for 
     Russian fissile material, $66,000,000.
       (5) For fissile material containers in Russia, $38,500,000.
       (6) For weapons storage security in Russia, $15,000,000.
       (7) For activities designated as Defense and Military-to-
     Military Contacts in Russia, Ukraine, Belarus, and 
     Kazakhstan, $10,000,000.
       (8) For activities designated as Other Assessments/
     Administrative Support $20,900,000.
       (9) For materials protection, control, and accounting 
     assistance or for destruction of nuclear, radiological, 
     biological, or chemical weapons or related materials at any 
     site within the former Soviet Union, $10,000,000.
       (10) For transfer to the Secretary of Energy to develop a 
     cooperative program with the Government of Russia to 
     eliminate the production of weapons grade plutonium at 
     Russian reactors, $10,000,000.
       (11) For dismantlement of biological and chemical weapons 
     facilities in the former Soviet Union, $15,000,000.
       (12) For expanding military-to-military programs of the 
     United States that focus on countering the threat of 
     proliferation of weapons of mass destruction to include the 
     security forces of the independent states of the former 
     Soviet Union, particularly states in the Caucasus region and 
     Central Asia, $2,000,000.
       (b) Limited Authority To Vary Individual Amounts.--(1) If 
     the Secretary of Defense determines that it is necessary to 
     do so in the national interest, the Secretary may, subject to 
     paragraph (2), obligate amounts for the purposes stated in 
     any of the paragraphs of subsection (a) in excess of the 
     amount specified for those purposes in that paragraph, but 
     not in excess of 115 percent of that amount. However, the 
     total amount obligated for the purposes stated in the 
     paragraphs in subsection (a) may not by reason of the use of 
     the authority provided in the preceding sentence exceed the 
     sum of the amounts specified in those paragraphs.
       (2) An obligation for the purposes stated in any of the 
     paragraphs in subsection (a) in excess of the amount 
     specified in that paragraph may be made using the authority 
     provided in paragraph (1) only after--
       (A) the Secretary submits to Congress a notification of the 
     intent to do so together with a complete discussion of the 
     justification for doing so; and
       (B) 15 days have elapsed following the date of the 
     notification.

     SEC. 1503. PROHIBITION ON USE OF FUNDS FOR SPECIFIED 
                   PURPOSES.

       (a) In General.--None of the funds appropriated pursuant to 
     the authorization in section 301 for Cooperative Threat 
     Reduction programs, or appropriated for such programs for any 
     prior fiscal year and remaining available for obligation, may 
     be obligated or expended for any of the following purposes:
       (1) Conducting with Russia any peacekeeping exercise or 
     other peacekeeping-related activity.
       (2) Provision of housing.
       (3) Provision of assistance to promote environmental 
     restoration.
       (4) Provision of assistance to promote job retraining.
       (b) Limitation With Respect to Defense Conversion 
     Assistance.--None of the funds appropriated to the Department 
     of Defense for fiscal year 1997 may be obligated or expended 
     for defense conversion.

     SEC. 1504. LIMITATION ON USE OF FUNDS UNTIL SPECIFIED REPORTS 
                   ARE SUBMITTED.

       None of the funds appropriated pursuant to the 
     authorization in section 301 for Cooperative Threat Reduction 
     programs may be obligated or expended until 15 days after the 
     date which is the latest of the following:
       (1) The date on which the President submits to Congress the 
     determinations required under subsection (c) of section 211 
     of Public Law 102-228 (22 U.S.C. 2551 note) with respect to 
     any certification transmitted to Congress under subsection 
     (b) of that section before the date of the enactment of this 
     Act.
       (2) The date on which the Secretary of Defense submits to 
     Congress the first report under section 1206(a) of the 
     National Defense Authorization Act for Fiscal Year 1996 
     (Public Law 104-106; 110 Stat. 471).
       (3) The date on which the Secretary of Defense submits to 
     Congress the report for fiscal year 1996 required under 
     section 1205(c) of the National Defense Authorization Act for 
     Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2883).

     SEC. 1505. AVAILABILITY OF FUNDS.

       Funds appropriated pursuant to the authorization of 
     appropriations in section 301 for Cooperative Threat 
     Reduction programs shall be available for obligation for 
     three fiscal years.
          TITLE XVI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

  Subtitle A--Miscellaneous Matters Relating to Personnel Management, 
                          Pay, and Allowances

Sec. 1601. Modification of requirement for conversion of military 
              positions to civilian positions.
Sec. 1602. Retention of civilian employee positions at military 
              training bases transferred to National Guard.
Sec. 1603. Clarification of applicability of certain management 
              constraints on major range and test facility base 
              structure.
Sec. 1604. Travel expenses and health care for civilian employees of 
              the Department of Defense abroad.
Sec. 1605. Travel, transportation, and relocation allowances for 
              certain former nonappropriated fund employees.
Sec. 1606. Employment and salary practices applicable to Department of 
              Defense overseas teachers.
Sec. 1607. Employment and compensation of civilian faculty members at 
              certain Department of Defense schools.
Sec. 1608. Reimbursement of Department of Defense domestic dependent 
              school board members for certain expenses.
Sec. 1609. Modification of authority for civilian employees of 
              Department of Defense to participate voluntarily in 
              reductions in force.
Sec. 1610. Wage-board compensatory time off.
Sec. 1611. Liquidation of restored annual leave that remains unused 
              upon transfer of employee from installation being closed 
              or realigned.
Sec. 1612. Waiver of requirement for repayment of Voluntary Separation 
              Incentive pay by former Department of Defense employees 
              reemployed by the Government without pay.
Sec. 1613. Simplification of rules relating to the observance of 
              certain holidays.
Sec. 1614. Revision of certain travel management authorities.
Sec. 1615. Failure to comply with veterans' preference requirements to 
              be treated as a prohibited personnel practice.
Sec. 1616. Pilot programs for defense employees converted to contractor 
              employees due to privatization at closed military 
              installations.

    Subtitle B--Department of Defense Intelligence Personnel Policy

Sec. 1631. Short title.
Sec. 1632. Management of civilian intelligence personnel.
Sec. 1633. Repeal of superseded sections and clerical and conforming 
              amendments.
Sec. 1634. Other personnel management authorities.
Sec. 1635. Effective date.
  Subtitle A--Miscellaneous Matters Relating to Personnel Management, 
                          Pay, and Allowances

     SEC. 1601. MODIFICATION OF REQUIREMENT FOR CONVERSION OF 
                   MILITARY POSITIONS TO CIVILIAN POSITIONS.

       (a) Elimination of Requirement for Fiscal Year 1997 
     Conversions.--Paragraph (1) of section 1032(a) of the 
     National Defense Authorization Act for Fiscal Year 1996 
     (Public Law 104-106; 110 Stat. 429; 10 U.S.C. 129a note) is 
     amended--
       (1) by striking out ``September 30, 1997'' and inserting in 
     lieu thereof ``September 30, 1996''; and
       (2) by striking out ``10,000'' and inserting in lieu 
     thereof ``3,000''.
       (b) Conforming Amendments.--Such section is further 
     amended--
       (1) by striking out paragraph (2); and
       (2) by redesignating paragraph (3) as paragraph (2).
       (c) Effective Date.--(1) The amendments made by this 
     section shall take effect 30 days after the date on which the 
     Secretary of Defense submits to Congress a certification that 
     at least 3,000 military positions have been converted to 
     civilian positions during fiscal year 1996 as required by 
     section 1032(a) of the National Defense Authorization Act for 
     Fiscal Year 1996 (Public Law 104-106; 110 Stat. 429).
       (2) The Secretary shall publish in the Federal Register a 
     notice of the submission of any certification to Congress 
     under paragraph (1), including the date on which the 
     certification was submitted to Congress.

     SEC. 1602. RETENTION OF CIVILIAN EMPLOYEE POSITIONS AT 
                   MILITARY TRAINING BASES TRANSFERRED TO NATIONAL 
                   GUARD.

       (a) Retention of Employee Positions.--In the case of a 
     military training installation described in subsection (b), 
     the Secretary of Defense shall retain civilian employee 
     positions of the Department of Defense at the installation 
     after transfer to the National Guard to facilitate active and 
     reserve component training at the installation. The Secretary 
     shall determine the extent to which

[[Page H9079]]

     positions at the installation are to be retained as positions 
     of the Department of Defense in consultation with the 
     Adjutant General of the National Guard of the State in which 
     the installation is located,.
       (b) Military Training Installations Affected.--This section 
     applies with respect to each military training installation 
     that--
       (1) was approved for closure in 1995 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);
       (2) is scheduled for transfer to National Guard operation 
     and control; and
       (3) will continue to be used, after such transfer, to 
     provide training support to active and reserve components of 
     the Armed Forces.
       (c) Maximum Positions Retained.--The number of civilian 
     employee positions retained at an installation under this 
     section may not exceed 20 percent of the Federal civilian 
     workforce employed at the installation as of September 8, 
     1995.
       (d) Removal of Position.--The requirement to maintain a 
     civilian employee position at an installation under this 
     section terminates upon the later of the following:
       (1) The date of the departure or retirement from that 
     position by the civilian employee initially employed or 
     retained in the position as a result of this section.
       (2) The date on which the Secretary certifies to Congress 
     that the position is no longer required to ensure that 
     effective support is provided at the installation for active 
     and reserve component training.

     SEC. 1603. CLARIFICATION OF APPLICABILITY OF CERTAIN 
                   MANAGEMENT CONSTRAINTS ON MAJOR RANGE AND TEST 
                   FACILITY BASE STRUCTURE.

       Section 129 of title 10, United States Code, is amended--
       (1) in subsection (c)(1), by inserting ``, the Major Range 
     and Test Facility Base,'' after ``industrial-type 
     activities''; and
       (2) by adding at the end the following:
       ``(e) Subsections (a), (b), and (c) apply to the Major 
     Range and Test Facility Base (MRTFB) at the installation 
     level. With respect to the MRTFB structure, the term `funds 
     made available' includes both direct appropriated funds and 
     funds provided by MRTFB customers.''.

     SEC. 1604. TRAVEL EXPENSES AND HEALTH CARE FOR CIVILIAN 
                   EMPLOYEES OF THE DEPARTMENT OF DEFENSE ABROAD.

       (a) In General.--Chapter 81 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 1599b. Employees abroad: travel expenses; health care

       ``(a) In General.--The Secretary of Defense may provide 
     civilian employees, and members of their families, abroad 
     with benefits that are comparable to certain benefits that 
     are provided by the Secretary of State to members of the 
     Foreign Service and their families abroad as described in 
     subsections (b) and (c). The Secretary may designate the 
     employees and members of families who are eligible to receive 
     the benefits.
       ``(b) Travel and Related Expenses.--The Secretary of 
     Defense may pay travel expenses and related expenses for 
     purposes and in amounts that are comparable to the purposes 
     for which, and the amounts in which, travel and related 
     expenses are paid by the Secretary of State under section 901 
     of the Foreign Service Act of 1980 (22 U.S.C. 4081).
       ``(c) Health Care Program.--The Secretary of Defense may 
     establish a health care program that is comparable to the 
     health care program established by the Secretary of State 
     under section 904 of the Foreign Service Act of 1980 (22 
     U.S.C. 4084).
       ``(d) Assistance.--The Secretary of Defense may enter into 
     agreements with the heads of other departments and agencies 
     of the Government in order to facilitate the payment of 
     expenses authorized by subsection (b) and to carry out a 
     health care program authorized by subsection (c).
       ``(e) Abroad Defined.--In this section, the term `abroad' 
     means outside--
       ``(1) the United States; and
       ``(2) the territories and possessions of the United 
     States.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:
``1599b. Employees abroad: travel expenses; health care.''.

     SEC. 1605. TRAVEL, TRANSPORTATION, AND RELOCATION ALLOWANCES 
                   FOR CERTAIN FORMER NONAPPROPRIATED FUND 
                   EMPLOYEES.

       (a) In General.--(1) Subchapter II of chapter 57 of title 
     5, United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 5736. Travel, transportation, and relocation expenses 
       of certain nonappropriated fund employees

       ``An employee of a nonappropriated fund instrumentality of 
     the Department of Defense or the Coast Guard described in 
     section 2105(c) of this title who moves, without a break in 
     service of more than 3 days, to a position in the Department 
     of Defense or the Coast Guard, respectively, may be 
     authorized travel, transportation, and relocation expenses 
     and allowances under the same conditions and to the same 
     extent authorized by this subchapter for transferred 
     employees.''.
       (2) The table of sections at the beginning of chapter 57 of 
     such title is amended by inserting after the item relating to 
     section 5735 the following new item:
``5736. Travel, transportation, and relocation expenses of certain 
              nonappropriated fund employees.''.
       (b) Applicability.--Section 5736 of title 5, United States 
     Code (as added by subsection (a)(1)), shall apply to moves 
     between positions as described in such section that are 
     effective on or after October 1, 1996.

     SEC. 1606. EMPLOYMENT AND SALARY PRACTICES APPLICABLE TO 
                   DEPARTMENT OF DEFENSE OVERSEAS TEACHERS.

       (a) Expansion of Scope of Educators Covered.--Section 2 of 
     the Defense Department Overseas Teachers Pay and Personnel 
     Practices Act (20 U.S.C. 901) is amended--
       (1) in subparagraph (A) of paragraph (1), by inserting ``, 
     or are performed by an individual who carried out certain 
     teaching activities identified in regulations prescribed by 
     the Secretary of Defense'' after ``Defense,''; and
       (2) by striking out subparagraph (C) of paragraph (2) and 
     inserting in lieu thereof the following:
       ``(C) who is employed in a teaching position described in 
     paragraph (1).''.
       (b) Transfer of Responsibility for Employment and Salary 
     Practices.--Section 5 of such Act (20 U.S.C. 903) is 
     amended--
       (1) in subsection (a)--
       (A) by striking out ``secretary of each military department 
     in the Department of Defense'' and inserting in lieu thereof 
     ``Secretary of Defense''; and
       (B) by striking out ``his military department'' and 
     inserting in lieu thereof ``the Department of Defense'';
       (2) in subsection (b)--
       (A) in the matter preceding paragraph (1), by striking out 
     ``secretary of each military department--'' and inserting in 
     lieu thereof ``Secretary of Defense--''; and
       (B) in paragraph (1), by striking out ``his military 
     department,'' and inserting in lieu thereof ``the Department 
     of Defense'';
       (3) in subsection (c)--
       (A) by striking out ``Secretary of each military 
     department'' and inserting in lieu thereof ``Secretary of 
     Defense''; and
       (B) by striking out ``his military department'' and 
     inserting in lieu thereof ``the Department of Defense''; and
       (4) in subsection (d), by striking out ``Secretary of each 
     military department'' and inserting in lieu thereof 
     ``Secretary of Defense''.

     SEC. 1607. EMPLOYMENT AND COMPENSATION OF CIVILIAN FACULTY 
                   MEMBERS AT CERTAIN DEPARTMENT OF DEFENSE 
                   SCHOOLS.

       (a) Faculties.--Subsection (c) of section 1595 of title 10, 
     United States Code, is amended by adding at the end the 
     following new paragraphs:
       ``(4) The English Language Center of the Defense Language 
     Institute.
       ``(5) The Asia-Pacific Center for Security Studies.''.
       (b) Certain Administrators.--Such section is further 
     amended by adding at the end the following new subsection:
       ``(f) Application to Director and Deputy Director at Asia-
     Pacific Center for Security Studies.--In the case of the 
     Asia-Pacific Center for Security Studies, this section also 
     applies with respect to the Director and the Deputy 
     Director.''.

     SEC. 1608. REIMBURSEMENT OF DEPARTMENT OF DEFENSE DOMESTIC 
                   DEPENDENT SCHOOL BOARD MEMBERS FOR CERTAIN 
                   EXPENSES.

       Section 2164(d) of title 10, United States Code, is amended 
     by adding at the end the following new paragraph:
       ``(7) The Secretary may provide for reimbursement of a 
     school board member for expenses incurred by the member for 
     travel, transportation, lodging, meals, program fees, 
     activity fees, and other appropriate expenses that the 
     Secretary determines are reasonable and necessary for the 
     performance of school board duties by the member.''.

     SEC. 1609. MODIFICATION OF AUTHORITY FOR CIVILIAN EMPLOYEES 
                   OF DEPARTMENT OF DEFENSE TO PARTICIPATE 
                   VOLUNTARILY IN REDUCTIONS IN FORCE.

       Subsection (f) of section 3502 of title 5, United States 
     Code, is amended to read as follows:
       ``(f)(1) The Secretary of Defense or the Secretary of a 
     military department may--
       ``(A) separate from service any employee who volunteers to 
     be separated under this subparagraph even though the employee 
     is not otherwise subject to separation due to a reduction in 
     force; and
       ``(B) for each employee voluntarily separated under 
     subparagraph (A), retain an employee in a similar position 
     who would otherwise be separated due to a reduction in force.
       ``(2) The separation of an employee under paragraph (1)(A) 
     shall be treated as an involuntary separation due to a 
     reduction in force.
       ``(3) An employee with critical knowledge and skills (as 
     defined by the Secretary concerned) may not participate in a 
     voluntary separation under paragraph (1)(A) if the Secretary 
     concerned determines that such participation would impair the 
     performance of the mission of the Department of Defense or 
     the military department concerned.
       ``(4) The regulations prescribed under this section shall 
     incorporate the authority provided in this subsection.
       ``(5) No authority under paragraph (1) may be exercised 
     after September 30, 2001.''.

     SEC. 1610. WAGE-BOARD COMPENSATORY TIME OFF.

       (a) In General.--Section 5543 of title 5, United States 
     Code, is amended--
       (1) by redesignating subsection (b) as subsection (c); and

[[Page H9080]]

       (2) by inserting after subsection (a) the following new 
     subsection (b):
       ``(b) The head of an agency may, on request of an employee, 
     grant the employee compensatory time off from the employee's 
     scheduled tour of duty instead of payment under section 5544 
     or section 7 of the Fair Labor Standards Act of 1938 for an 
     equal amount of time spent in irregular or occasional 
     overtime work. An agency head may not require an employee to 
     be compensated for overtime work with an equivalent amount of 
     compensatory time-off from the employee's tour of duty.''.
       (b) Conforming Amendment.--Section 5544(c) of title 5, 
     United States Code, is amended by inserting ``and the 
     provisions of section 5543(b)'' after ``the last two 
     sentences of subsection (a)''.

     SEC. 1611. LIQUIDATION OF RESTORED ANNUAL LEAVE THAT REMAINS 
                   UNUSED UPON TRANSFER OF EMPLOYEE FROM 
                   INSTALLATION BEING CLOSED OR REALIGNED.

       (a) Lump-Sum Payment Required.--Section 5551 of title 5, 
     United States Code, is amended by adding at the end the 
     following:
       ``(c)(1) Annual leave that is restored to an employee of 
     the Department of Defense under section 6304(d) of this title 
     by reason of the operation of paragraph (3) of such section 
     and remains unused upon the transfer of the employee to a 
     position described in paragraph (2) shall be liquidated by 
     payment of a lump-sum for such leave to the employee upon the 
     transfer.
       ``(2) A position referred to in paragraph (1) is a position 
     in a department or agency of the Federal Government outside 
     the Department of Defense or a Department of Defense position 
     that is not located at a Department of Defense installation 
     being closed or realigned as described in section 6304(d)(3) 
     of this title.''.
       (b) Applicability.--Subsection (c) of section 5551 of title 
     5, United States Code (as added by subsection (a)), shall 
     apply with respect to transfers described in such subsection 
     (c) that take effect on or after the date of the enactment of 
     this Act.

     SEC. 1612. WAIVER OF REQUIREMENT FOR REPAYMENT OF VOLUNTARY 
                   SEPARATION INCENTIVE PAY BY FORMER DEPARTMENT 
                   OF DEFENSE EMPLOYEES REEMPLOYED BY THE 
                   GOVERNMENT WITHOUT PAY.

       (a) In General.--Section 5597(g) of title 5, United States 
     Code, is amended by adding at the end the following new 
     paragraph:
       ``(5) If the employment is without compensation, the 
     appointing official may waive the repayment.''.
       (b) Applicability.--The amendment made by subsection (a) 
     shall apply with respect to employment accepted on or after 
     the date of the enactment of this Act.

     SEC. 1613. SIMPLIFICATION OF RULES RELATING TO THE OBSERVANCE 
                   OF CERTAIN HOLIDAYS.

       Section 6103 of title 5, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(d)(1) For purposes of this subsection--
       ``(A) the term `compressed schedule' has the meaning given 
     such term by section 6121(5); and
       ``(B) the term `adverse agency impact' has the meaning 
     given such term by section 6131(b).
       ``(2) An agency may prescribe rules under which employees 
     on a compressed schedule may, in the case of a holiday that 
     occurs on a regularly scheduled non-workday for such 
     employees, and notwithstanding any other provision of law or 
     the terms of any collective bargaining agreement, be required 
     to observe such holiday on a workday other than as provided 
     by subsection (b), if the agency head determines that it is 
     necessary to do so in order to prevent an adverse agency 
     impact.''.

     SEC. 1614. REVISION OF CERTAIN TRAVEL MANAGEMENT AUTHORITIES.

       (a) Repeal of Requirements Relating to Fire-Safe 
     Accommodations.--(1) Section 5707 of title 5, United States 
     Code, is amended by striking out subsection (d).
       (2) Subsection (b) of section 5 of the Hotel and Motel Fire 
     Safety Act of 1990 (Public Law 101-391; 104 Stat. 751; 5 
     U.S.C. 5707 note) is repealed.
       (b) Repeal of Prohibition on Payment of Lodging Expenses of 
     Department of Defense Employees and Other Civilians When 
     Adequate Government Quarters Are Available.--(1) Section 1589 
     of title 10, United States Code, is repealed.
       (2) The table of sections at the beginning of chapter 81 of 
     such title is amended by striking out the item relating to 
     such section.

     SEC. 1615. FAILURE TO COMPLY WITH VETERANS' PREFERENCE 
                   REQUIREMENTS TO BE TREATED AS A PROHIBITED 
                   PERSONNEL PRACTICE.

       (a) In General.--(1) Chapter 81 of title 10, United States 
     Code, as amended by section 1604, is further amended by 
     adding at the end the following new section:

     ``Sec. 1599c. Veterans' preference requirements: Department 
       of Defense failure to comply treated as a prohibited 
       personnel practice

       ``(a) Prohibited Personnel Practice.--It is a prohibited 
     personnel practice for a person referred to in subsection (b) 
     who has authority described in that subsection--
       ``(1) knowingly to take, recommend, or approve any 
     personnel action with respect to such authority if the taking 
     of such action violates a veterans' preference; or
       ``(2) knowingly to fail to take, recommend, or approve any 
     personnel action with respect to such authority, if the 
     failure to take such action violates a veterans' preference.
       ``(b) Persons Covered.--Subsection (a) applies with respect 
     to--
       ``(1) an officer or employee of the Department of Defense 
     who has authority to take, direct others to take, recommend, 
     or approve a personnel action with respect to an employee of 
     the Department of Defense; and
       ``(2) a member of the armed forces who has such authority.
       ``(c) Veterans' Preference Defined.--(1) In this section, 
     the term `veterans' preference' means any of the following 
     provisions of law:
       ``(A) Sections 2108, 3305(b), 3309, 3310, 3311, 3312, 3313, 
     3314, 3315, 3316, 3317(b), 3318, 3320, 3351, 3352, 3363, 
     3501, 3502(b), 3504, and 4303(e) of title 5 and (with respect 
     to a preference eligible referred to in section 7511(a)(1)(B) 
     of such title) subchapter II of chapter 75 and section 7701 
     of such title.
       ``(B) Sections 943(c)(2) and 1784(c) of this title.
       ``(C) Section 1308(b) of the Alaska National Interest Lands 
     Conservation Act (16 U.S.C. 3198(b)).
       ``(D) Section 301(c) of the Foreign Service Act of 1980 (22 
     U.S.C. 3941(c)).
       ``(E) Section 3(a)(11) of the Administrative Office of the 
     United States Courts Personnel Act of 1990 (28 U.S.C. 602 
     note).
       ``(F) Sections 106(f), 7281(e), and 7802(5) of title 38.
       ``(G) Section 1005(a) of title 39.
       ``(H) Any other provision of law that the Director of the 
     Office of Personnel Management designates in regulations as 
     being a veterans' preference for the purposes of this 
     section.
       ``(2) For the purposes of this section, such term includes 
     any regulation prescribed under subsection (b) or (c) of 
     section 1302 of title 5 and any other regulation that 
     implements a provision of law referred to in paragraph (1).
       ``(d) Personnel Action Defined.--In this section, the term 
     `personnel action' has the meaning given that term in section 
     2302 of title 5.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:
``1599c. Veterans' preference requirements: Department of Defense 
              failure to comply treated as a prohibited personnel 
              practice.''.
       (b) Applicability of Title 5 Procedures and Sanctions.--
     Paragraph (1) of section 2302(a) of title 5, United States 
     Code, is amended to read as follows:
       ``(1) For purposes of this title, `prohibited personnel 
     practice' means the following:
       ``(A) Any action described in subsection (b) of this 
     section.
       ``(B) Any action or failure to act that is designated as a 
     prohibited personnel action under section 1599c(a) of title 
     10.''.
       (c) Reporting Requirement.--Not later than six months after 
     the date of the enactment of this Act, the Secretary of 
     Defense shall submit to Congress a written report on--
       (1) the implementation of--
       (A) section 1599c of title 10, United States Code, as added 
     by subsection (a); and
       (B) subparagraph (B) of section 2302(a)(1) of title 5, 
     United States Code, as added by subsection (b); and
       (2) the administration of veterans' preference requirements 
     by the Department of Defense generally.

     SEC. 1616. PILOT PROGRAMS FOR DEFENSE EMPLOYEES CONVERTED TO 
                   CONTRACTOR EMPLOYEES DUE TO PRIVATIZATION AT 
                   CLOSED MILITARY INSTALLATIONS.

       (a) Pilot Programs Authorized.--(1) The Secretary of 
     Defense, after consultation with the Director of the Office 
     of Personnel Management, may establish one or more pilot 
     programs under which Federal retirement benefits are provided 
     in accordance with this section to persons who convert from 
     Federal employment to employment by a Department of Defense 
     contractor in connection with the privatization of the 
     performance of functions at selected military installations 
     being closed under the base closure and realignment process.
       (2) The Secretary of Defense shall select the military 
     installations to be covered by a pilot program under this 
     section.
       (b) Eligible Converted Employees.--(1) A person is a 
     converted employee eligible for Federal retirement benefits 
     under this section if the person is a former employee of the 
     Department of Defense (other than a temporary employee) who--
       (A) while employed by the Department of Defense at a 
     military installation selected to participate in a pilot 
     program, performed a function that was recommended, in a 
     report of the Defense Base Closure and Realignment Commission 
     submitted to the President under the Defense Base Closure and 
     Realignment Act of 1990 (title XXIX of Public Law 101-510; 10 
     U.S.C. 2687 note), to be privatized for performance by a 
     defense contractor at the same installation or in the 
     vicinity of the installation;
       (B) while so employed, separated from Federal service after 
     being notified that the employee would be separated in a 
     reduction in force resulting from such privatization;
       (C) at the time separated from Federal service, was covered 
     under the Civil Service Retirement System, but was not 
     eligible for an immediate annuity under the Civil Service 
     Retirement System;
       (D) does not withdraw retirement contributions under 
     section 8342 of title 5, United States Code;

[[Page H9081]]

       (E) within 60 days following such separation, is employed 
     by the defense contractor selected to privatize the function 
     to perform substantially the same function performed by the 
     person before the separation; and
       (F) remains employed by the defense contractor (or a 
     successor defense contractor) or subcontractor of the defense 
     contractor (or successor defense contractor) until attaining 
     early deferred retirement age (unless the employment is 
     sooner involuntarily terminated for reasons other than 
     performance or conduct of the employee).
       (2) A person who, under paragraph (1), would otherwise be 
     eligible for an early deferred annuity under this section 
     shall not be eligible for such benefits if the person 
     received separation pay or severance pay due to a separation 
     described in subparagraph (B) of that paragraph unless the 
     person repays the full amount of such pay with interest 
     (computed at a rate determined appropriate by the Director of 
     the Office of Personnel Management) to the Department of 
     Defense before attaining early deferred retirement age.
       (c) Retirement Benefits of Converted Employees.--In the 
     case of a converted employee covered by a pilot program, 
     payment of a deferred annuity for which the converted 
     employee is eligible under section 8338(a) of title 5, United 
     States Code, shall commence on the first day of the first 
     month that begins after the date on which the converted 
     employee attains early deferred retirement age, 
     notwithstanding the age requirement under that section. If 
     the employment of a converted employee is involuntarily 
     terminated by the defense contractor or subcontractor as 
     described in subsection (b)(1)(F) and the converted employee 
     resumes Federal service before the converted employee attains 
     early deferred retirement age, the converted employee shall 
     once again be covered under the Civil Service Retirement 
     System instead of the pilot program.
       (d) Computation of Average Pay.--(1)(A) This paragraph 
     applies to a converted employee who was employed in a 
     position classified under the General Schedule immediately 
     before the employee's covered separation from Federal 
     service.
       (B) Subject to subparagraph (C), for purposes of computing 
     the deferred annuity for a converted employee referred to in 
     subparagraph (A), the average pay of the converted employee, 
     computed under section 8331(4) of title 5, United States 
     Code, as of the date of the employee's covered separation 
     from Federal service, shall be adjusted at the same time and 
     by the same percentage that rates of basic pay are increased 
     under section 5303 of such title during the period beginning 
     on that date and ending on the date on which the converted 
     employee attains early deferred retirement age.
       (C) The average pay of a converted employee, as adjusted 
     under subparagraph (B), may not exceed the amount to which an 
     annuity of the converted employee could be increased under 
     section 8340 of title 5, United States Code, in accordance 
     with the limitation in subsection (g)(1) of such section 
     (relating to maximum pay, final pay, or average pay).
       (2)(A) This paragraph applies to a converted employee who 
     was a prevailing rate employee (as defined under section 
     5342(2) of title 5, United States Code) immediately before 
     the employee's covered separation from Federal service.
       (B) For purposes of computing the deferred annuity for a 
     converted employee referred to in subparagraph (A), the 
     average pay of the converted employee, computed under section 
     8331(4) of title 5, United States Code, as of the date of the 
     employee's covered separation from Federal service, shall be 
     adjusted at the same time and by the same percentage that pay 
     rates for positions that are in the same area as, and are 
     comparable to, the last position the converted employee held 
     as a prevailing rate employee, are increased under section 
     5343(a) of such title during the period beginning on that 
     date and ending on the date on which the converted employee 
     attains early deferred retirement age.
       (e) Payment of Unfunded Liability.--(1) The military 
     department concerned shall be liable for that portion of any 
     estimated increase in the unfunded liability of the Civil 
     Service Retirement and Disability Fund established under 
     section 8348 of title 5, United States Code, which is 
     attributable to any benefits payable from such Fund to a 
     converted employee, and any survivor of a converted employee, 
     when the increase results from--
       (A) an increase in the average pay of the converted 
     employee under subsection (d) upon which such benefits are 
     computed; and
       (B) the commencement of an early deferred annuity in 
     accordance with this section before the attainment of 62 
     years of age by the converted employee.
       (2) The estimated increase in the unfunded liability for 
     each department referred to in paragraph (1) shall be 
     determined by the Director of the Office of Personnel 
     Management. In making the determination, the Director shall 
     consider any savings to the Fund as a result of a pilot 
     program established under this section. The Secretary of the 
     military department concerned shall pay the amount so 
     determined to the Director in 10 equal annual installments 
     with interest computed at the rate used in the most recent 
     valuation of the Civil Service Retirement System, with the 
     first payment thereof due at the end of the fiscal year in 
     which an increase in average pay under subsection (d) becomes 
     effective.
       (f) Contractor Service Not Creditable.--Service performed 
     by a converted employee for a defense contractor after the 
     employee's covered separation from Federal service is not 
     creditable service for purposes of subchapter III of chapter 
     83 of title 5, United States Code.
       (g) Receipt of Benefits While Employed by a Defense 
     Contractor.--A converted employee may commence receipt of an 
     early deferred annuity in accordance with this section while 
     continuing to work for a defense contractor.
       (h) Lump-Sum Credit Payment.--If a converted employee dies 
     before attaining early deferred retirement age, such employee 
     shall be treated as a former employee who dies not retired 
     for purposes of payment of the lump-sum credit under section 
     8342(d) of title 5, United States Code.
       (i) Continued Federal Health Benefits Coverage.--
     Notwithstanding section 8905a(e)(1)(A) of title 5, United 
     States Code, the continued coverage of a converted employee 
     for health benefits under chapter 89 of such title by reason 
     of the application of section 8905a of such title to such 
     employee shall terminate 90 days after the date of the 
     employee's covered separation from Federal employment. For 
     the purposes of the preceding sentence, a person who, except 
     for subsection (b)(2), would be a converted employee shall be 
     considered a converted employee.
       (j) Report by General Accounting Office.--The Comptroller 
     General shall conduct a study of each pilot program, if any, 
     established under this section and submit a report on the 
     pilot program to Congress not later than two years after the 
     date on which the program is established. The report shall 
     contain the following:
       (1) A review and evaluation of the program, including--
       (A) an evaluation of the success of the privatization 
     outcomes of the program;
       (B) a comparison and evaluation of such privatization 
     outcomes with the privatization outcomes with respect to 
     facilities at other military installations closed or 
     realigned under the base closure laws;
       (C) an evaluation of the impact of the program on the 
     Federal workforce and whether the program results in the 
     maintenance of a skilled workforce for defense contractors at 
     an acceptable cost to the military department concerned; and
       (D) an assessment of the extent to which the program is a 
     cost-effective means of facilitating privatization of the 
     performance of Federal activities.
       (2) Recommendations relating to the expansion of the 
     program to other installations and employees.
       (3) Any other recommendation relating to the program.
       (k) Implementing Regulations.--Not later than 30 days after 
     the Secretary of Defense notifies the Director of the Office 
     of Personnel Management of a decision to establish a pilot 
     program under this section, the Director shall prescribe 
     regulations to carry out the provisions of this section with 
     respect to that pilot program. Before prescribing the 
     regulations, the Director shall consult with the Secretary.
       (l) Definitions.--In this section:
       (1) The term ``converted employee'' means a person who, 
     pursuant to subsection (b), is eligible for benefits under 
     this section.
       (2) The term ``covered separation from Federal service'' 
     means a separation from Federal service as described under 
     subsection (b)(1)(B).
       (3) The term ``Civil Service Retirement System'' means the 
     retirement system under subchapter III of chapter 83 of title 
     5, United States Code.
       (4) The term ``defense contractor'' means any entity that--
       (A) contracts with the Department of Defense to perform a 
     function previously performed by Department of Defense 
     employees;
       (B) performs that function at the same installation at 
     which such function was previously performed by Department of 
     Defense employees or in the vicinity of that installation; 
     and
       (C) is the employer of one or more converted employees.
       (5) The term ``early deferred retirement age'' means the 
     first age at which a converted employee would have been 
     eligible for immediate retirement under subsection (a) or (b) 
     of section 8336 of title 5, United States Code, if such 
     converted employee had remained an employee within the 
     meaning of section 8331(1) of such title continuously until 
     attaining such age.
       (6) The term ``severance pay'' means severance pay payable 
     under section 5595 of title 5, United States Code.
       (7) The term ``separation pay'' means separation pay 
     payable under section 5597 of title 5, United States Code.
       (m) Application of Pilot Program.--In the event that a 
     pilot program is established for a military installation, the 
     pilot program shall apply to a covered separation from 
     Federal service by an employee of the Department of Defense 
     at the installation occurring on or after August 1, 1996.
    Subtitle B--Department of Defense Intelligence Personnel Policy

     SEC. 1631. SHORT TITLE.

       This subtitle may be cited as the ``Department of Defense 
     Civilian Intelligence Personnel Policy Act of 1996''.

     SEC. 1632. MANAGEMENT OF CIVILIAN INTELLIGENCE PERSONNEL.

       (a) Consolidation and Standardization of Civilian Personnel 
     Policy.--Chapter 83 of title 10, United States Code, is 
     amended--

[[Page H9082]]

       (1) by redesignating section 1602 as section 1621 and 
     transferring that section so as to appear after section 1605;
       (2) by redesignating sections 1606 and 1608 as section 1622 
     and 1623, respectively; and
       (3) by striking out the chapter heading, the table of 
     sections, and sections 1601, 1603, and 1604 and inserting in 
     lieu thereof the following:

         ``CHAPTER 83--CIVILIAN DEFENSE INTELLIGENCE EMPLOYEES

``Subchapter                                                       Sec.
``I. Defense-Wide Intelligence Personnel Policy................1601....

``II. Defense Intelligence Agency Personnel....................1621....

       ``SUBCHAPTER I--DEFENSE-WIDE INTELLIGENCE PERSONNEL POLICY

``Sec.
``1601. Civilian intelligence personnel: general authority to establish 
              excepted positions, appoint personnel, and fix rates of 
              pay.
``1602. Basic pay.
``1603. Additional compensation, incentives, and allowances.
``1605. Benefits for certain employees assigned outside the United 
              States.
``1606. Defense Intelligence Senior Executive Service.
``1607. Intelligence Senior Level positions.
``1608. Time-limited appointments.
``1609. Termination of defense intelligence employees.
``1610. Reductions and other adjustments in force.
``1611. Postemployment assistance: certain terminated intelligence 
              employees.
``1612. Merit system principles and civil service protections: 
              applicability.
``1613. Miscellaneous provisions.
``1614. Definitions.

     ``Sec. 1601. Civilian intelligence personnel: general 
       authority to establish excepted positions, appoint 
       personnel, and fix rates of pay

       ``(a) General Authority.--The Secretary of Defense may--
       ``(1) establish, as positions in the excepted service, such 
     defense intelligence positions in the intelligence components 
     of the Department of Defense and the military departments as 
     the Secretary determines necessary to carry out the 
     intelligence functions of those components and departments, 
     including--
       ``(A) Intelligence Senior Level positions designated under 
     section 1607 of this title; and
       ``(B) positions in the Defense Intelligence Senior 
     Executive Service;
       ``(2) appoint individuals to those positions (after taking 
     into consideration the availability of preference eligibles 
     for appointment to those positions); and
       ``(3) fix the compensation of such individuals for service 
     in those positions.
       ``(b) Construction With Other Laws.--The authority of the 
     Secretary of Defense under subsection (a) applies without 
     regard to the provisions of any other law relating to the 
     appointment, number, classification, or compensation of 
     employees.

     ``Sec. 1602. Basic pay

       ``(a) Authority To Fix Rates of Basic Pay.--The Secretary 
     of Defense (subject to the provisions of this section) shall 
     fix the rates of basic pay for positions established under 
     section 1601 of this title in relation to the rates of basic 
     pay provided in subpart D of part III of title 5 for 
     positions subject to that subpart which have corresponding 
     levels of duties and responsibilities.
       ``(b) Maximum Rates.--A rate of basic pay fixed under 
     subsection (a) for a position established under section 1601 
     of this title may not (except as otherwise provided by law) 
     exceed--
       ``(1) in the case of a Defense Intelligence Senior 
     Executive Service position, the maximum rate provided in 
     section 5382 of title 5;
       ``(2) in the case of an Intelligence Senior Level position, 
     the maximum rate provided in section 5382 of title 5; and
       ``(3) in the case of any other position, the maximum rate 
     provided in section 5306(e) of title 5.
       ``(c) Prevailing Rate Systems.--The Secretary of Defense 
     may, consistent with section 5341 of title 5, adopt such 
     provisions of that title as provide for prevailing rate 
     systems of basic pay and may apply those provisions to 
     positions for civilian employees in or under which the 
     Department of Defense may employ individuals described by 
     section 5342(a)(2)(A) of that title.

     ``Sec. 1603. Additional compensation, incentives, and 
       allowances

       ``(a) Additional Compensation Based on Title 5 
     Authorities.--The Secretary of Defense may provide employees 
     in defense intelligence positions compensation (in addition 
     to basic pay), including benefits, incentives, and 
     allowances, consistent with, and not in excess of the level 
     authorized for, comparable positions authorized by title 5.
       ``(b) Allowances Based on Living Costs and Environment.--
     (1) In addition to basic pay, employees in defense 
     intelligence positions who are citizens or nationals of the 
     United States and are stationed outside the continental 
     United States or in Alaska may be paid an allowance, in 
     accordance with regulations prescribed by the Secretary of 
     Defense, while they are so stationed.
       ``(2) An allowance under this subsection shall be based 
     on--
       ``(A) living costs substantially higher than in the 
     District of Columbia;
       ``(B) conditions of environment which (i) differ 
     substantially from conditions of environment in the 
     continental United States, and (ii) warrant an allowance as a 
     recruitment incentive; or
       ``(C) both of the factors specified in subparagraphs (A) 
     and (B).
       ``(3) An allowance under this subsection may not exceed the 
     allowance authorized to be paid by section 5941(a) of title 5 
     for employees whose rates of basic pay are fixed by 
     statute.''.
       (b) Matters Other Than Pay and Benefits.--Such chapter is 
     further amended by inserting after section 1605 the following 
     new sections:

     ``Sec. 1606. Defense Intelligence Senior Executive Service

       ``(a) Establishment.--The Secretary of Defense may 
     establish a Defense Intelligence Senior Executive Service for 
     defense intelligence positions established pursuant to 
     section 1601(a) of this title that are equivalent to Senior 
     Executive Service positions. The number of positions in the 
     Defense Intelligence Senior Executive Service may not exceed 
     492.
       ``(b) Regulations Consistent With Title 5 Provisions.--The 
     Secretary of Defense shall prescribe regulations for the 
     Defense Intelligence Senior Executive Service which are 
     consistent with the requirements set forth in sections 3131, 
     3132(a)(2), 3396(c), 3592, 3595(a), 5384, and 6304 of title 
     5, subsections (a), (b), and (c) of section 7543 of such 
     title (except that any hearing or appeal to which a member of 
     the Defense Intelligence Senior Executive Service is entitled 
     shall be held or decided pursuant to those regulations), and 
     subchapter II of chapter 43 of such title. To the extent that 
     the Secretary determines it practicable to apply to members 
     of, or applicants for, the Defense Intelligence Senior 
     Executive Service other provisions of title 5 that apply to 
     members of, or applicants for, the Senior Executive Service, 
     the Secretary shall also prescribe regulations to implement 
     those provisions with respect to the Defense Intelligence 
     Senior Executive Service.
       ``(c) Award of Rank to Members of the Defense Intelligence 
     Senior Executive Service.--The President, based on the 
     recommendations of the Secretary of Defense, may award a rank 
     referred to in section 4507 of title 5 to members of the 
     Defense Intelligence Senior Executive Service. The award of 
     such rank shall be made in a manner consistent with the 
     provisions of that section.

     ``Sec. 1607. Intelligence Senior Level positions

       ``(a) Designation of Positions.--The Secretary of Defense 
     may designate as an Intelligence Senior Level position any 
     defense intelligence position that, as determined by the 
     Secretary--
       ``(1) is classifiable above grade GS-15 of the General 
     Schedule;
       ``(2) does not satisfy functional or program management 
     criteria for being designated a Defense Intelligence Senior 
     Executive Service position; and
       ``(3) has no more than minimal supervisory 
     responsibilities.
       ``(b) Regulations.--Subsection (a) shall be carried out in 
     accordance with regulations prescribed by the Secretary of 
     Defense.

     ``Sec. 1608. Time-limited appointments

       ``(a) Authority for Time-Limited Appointments.--The 
     Secretary of Defense may by regulation authorize appointing 
     officials to make time-limited appointments to defense 
     intelligence positions specified in the regulations.
       ``(b) Review of Use of Authority.--The Secretary of Defense 
     shall review each time-limited appointment in a defense 
     intelligence position at the end of the first year of the 
     period of the appointment and determine whether the 
     appointment should be continued for the remainder of the 
     period. The continuation of a time-limited appointment after 
     the first year shall be subject to the approval of the 
     Secretary.
       ``(c) Condition on Permanent Appointment to Defense 
     Intelligence Senior Executive Service.--An employee serving 
     in a defense intelligence position pursuant to a time-limited 
     appointment is not eligible for a permanent appointment to a 
     Defense Intelligence Senior Executive Service position 
     (including a position in which the employee is serving) 
     unless the employee is selected for the permanent appointment 
     on a competitive basis.
       ``(d) Time-Limited Appointment Defined.--In this section, 
     the term `time-limited appointment' means an appointment 
     (subject to the condition in subsection (b)) for a period not 
     to exceed two years.

     ``Sec. 1609. Termination of defense intelligence employees

       ``(a) Termination Authority.--Notwithstanding any other 
     provision of law, the Secretary of Defense may terminate the 
     employment of any employee in a defense intelligence position 
     if the Secretary--
       ``(1) considers that action to be in the interests of the 
     United States; and
       ``(2) determines that the procedures prescribed in other 
     provisions of law that authorize the termination of the 
     employment of such employee cannot be invoked in a manner 
     consistent with the national security.
       ``(b) Finality.--A decision by the Secretary of Defense to 
     terminate the employment of an employee under this section is 
     final and may not be appealed or reviewed outside the 
     Department of Defense.

[[Page H9083]]

       ``(c) Notification to Congressional Committees.--Whenever 
     the Secretary of Defense terminates the employment of an 
     employee under the authority of this section, the Secretary 
     shall promptly notify the congressional oversight committees 
     of such termination.
       ``(d) Preservation of Right To Seek Other Employment.--Any 
     termination of employment under this section does not affect 
     the right of the employee involved to seek or accept 
     employment with any other department or agency of the United 
     States if that employee is declared eligible for such 
     employment by the Director of the Office of Personnel 
     Management.
       ``(e) Limitation on Delegation.--The authority of the 
     Secretary of Defense under this section may be delegated only 
     to the Deputy Secretary of Defense, the head of an 
     intelligence component of the Department of Defense (with 
     respect to employees of that component), or the Secretary of 
     a military department (with respect to employees of that 
     department). An action to terminate employment of such an 
     employee by any such official may be appealed to the 
     Secretary of Defense.

     ``Sec. 1610. Reductions and other adjustments in force

       ``(a) In General.--The Secretary of Defense shall prescribe 
     regulations for the separation of employees in defense 
     intelligence positions, including members of the Defense 
     Intelligence Senior Executive Service and employees in 
     Intelligence Senior Level positions, during a reduction in 
     force or other adjustment in force. The regulations shall 
     apply to such a reduction in force or other adjustment in 
     force notwithstanding sections 3501(b) and 3502 of title 5.
       ``(b) Matters To Be Given Effect.--The regulations shall 
     give effect to the following:
       ``(1) Tenure of employment.
       ``(2) Military preference, subject to sections 3501(a)(3) 
     and 3502(b) of title 5.
       ``(3) The veteran's preference under section 3502(b) of 
     title 5.
       ``(4) Performance.
       ``(5) Length of service computed in accordance with the 
     second sentence of section 3502(a) of title 5.
       ``(c) Regulations Relating to Defense Intelligence SES.--
     The regulations relating to removal from the Defense 
     Intelligence Senior Executive Service in a reduction in force 
     or other adjustment in force shall be consistent with section 
     3595(a) of title 5.
       ``(d) Right of Appeal.--(1) The regulations shall provide a 
     right of appeal regarding a personnel action under the 
     regulations. The appeal shall be determined within the 
     Department of Defense. An appeal determined at the highest 
     level provided in the regulations shall be final and not 
     subject to review outside the Department of Defense. A 
     personnel action covered by the regulations is not subject to 
     any other provision of law that provides appellate rights or 
     procedures.
       ``(2) Notwithstanding paragraph (1), a preference eligible 
     referred to in section 7511(a)(1)(B) of title 5 may elect to 
     have an appeal of a personnel action taken against the 
     preference eligible under the regulation determined by the 
     Merit Systems Protection Board instead of having the appeal 
     determined within the Department of Defense. Section 7701 of 
     title 5 shall apply to any such appeal to the Merit Systems 
     Protection Board.
       ``(e) Consultation With OPM.--Regulations under this 
     section shall be prescribed in consultation with the Director 
     of the Office of Personnel Management.''.
       (c) Transfer of Section 1599.--Subtitle A of title 10, 
     United States Code, is amended by transferring section 1599 
     to chapter 83 of such title, inserting such section after 
     section 1610 (as added by subsection (b)), redesignating such 
     section as section 1611, and in subsection (f) striking out 
     ``means'' and all that follows and inserting in lieu thereof 
     ``includes the National Reconnaissance Office and any 
     intelligence component of a military department.''.
       (d) Additional Provisions.--Such chapter is further amended 
     by inserting after section 1611 (as so transferred and 
     redesignated) the following new sections:

     ``Sec. 1612. Merit system principles and civil service 
       protections: applicability

       ``(a) Applicability of Merit System Principles.--Section 
     2301 of title 5 shall apply to the exercise of authority 
     under this subchapter (other than sections 1605 and 1611).
       ``(b) Civil Service Protections.--(1) If, in the case of a 
     position established under authority other than section 
     1601(a)(1) of this title that is reestablished as an excepted 
     service position under that section, the provisions of law 
     referred to in paragraph (2) applied to the person serving in 
     that position immediately before the position is so 
     reestablished and such provisions of law would not otherwise 
     apply to the person while serving in the position as so 
     reestablished, then such provisions of law shall, subject to 
     paragraph (3), continue to apply to the person with respect 
     to service in that position for as long as the person 
     continues to serve in the position without a break in 
     service.
       ``(2) The provisions of law referred to in paragraph (1) 
     are the following provisions of title 5:
       ``(A) Section 2302, relating to prohibited personnel 
     practices.
       ``(B) Chapter 75, relating to adverse actions.
       ``(3)(A) Notwithstanding any provision of chapter 75 of 
     title 5, an appeal of an adverse action by an individual 
     employee covered by paragraph (1) shall be determined within 
     the Department of Defense if the employee so elects.
       ``(B) The Secretary of Defense shall prescribe the 
     procedures for initiating and determining appeals of adverse 
     actions pursuant to elections made under subparagraph (A).

     ``Sec. 1613. Miscellaneous provisions

       ``(a) Collective Bargaining Agreements.--Nothing in 
     sections 1601 through 1604 and 1606 through 1610 may be 
     construed to impair the continued effectiveness of a 
     collective bargaining agreement with respect to an agency or 
     office that is a successor to an agency or office covered by 
     the agreement before the succession.
       ``(b) Notice to Congress of Regulations.--The Secretary of 
     Defense shall notify Congress of any regulations prescribed 
     to carry out this subchapter (other than sections 1605 and 
     1611). Such notice shall be provided by submitting a copy of 
     the regulations to the congressional oversight committees not 
     less than 60 days before such regulations take effect.

     ``Sec. 1614. Definitions

       ``In this subchapter:
       ``(1) The term `defense intelligence position' means a 
     civilian position as an intelligence officer or intelligence 
     employee of an intelligence component of the Department of 
     Defense or of a military department.
       ``(2) The term `intelligence component of the Department of 
     Defense' means any of the following:
       ``(A) The National Security Agency.
       ``(B) The Defense Intelligence Agency.
       ``(C) The National Imagery and Mapping Agency.
       ``(D) Any other component of the Department of Defense that 
     performs intelligence functions and is designated by the 
     Secretary of Defense as an intelligence component of the 
     Department of Defense.
       ``(E) Any successor to a component specified in, or 
     designated pursuant to, this paragraph.
       ``(3) The term `congressional oversight committees' means--
       ``(A) the Committee on Armed Services and the Select 
     Committee on Intelligence of the Senate; and
       ``(B) the Committee on National Security and the Permanent 
     Select Committee on Intelligence of the House of 
     Representatives.
       ``(4) The term `excepted service' has the meaning given 
     such term in section 2103 of title 5.
       ``(5) The term `preference eligible' has the meaning given 
     such term in section 2108(3) of title 5.
       ``(6) The term `Senior Executive Service position' has the 
     meaning given such term in section 3132(a)(2) of title 5.
       ``(7) The term `collective bargaining agreement' has the 
     meaning given such term in section 7103(8) of title 5.''.
       (e) Designation of New Subchapter II.--Chapter 83 of such 
     title is further amended by inserting after section 1614 (as 
     added by subsection (d)) the following:

         ``SUBCHAPTER II--DEFENSE INTELLIGENCE AGENCY PERSONNEL

``Sec.
``1621. Defense Intelligence Agency merit pay system.
``1622. Uniform allowance: civilian employees.
``1623. Financial assistance to certain employees in acquisition of 
              critical skills.''.

     SEC. 1633. REPEAL OF SUPERSEDED SECTIONS AND CLERICAL AND 
                   CONFORMING AMENDMENTS.

       (a) Repeal of Separate Military Department Authorities.--
     Section 1590 of title 10, United States Code, is repealed.
       (b) Repeal of Separate National Security Agency 
     Authorities.--The following provisions of law are repealed:
       (1) Sections 2 and 4 of the National Security Agency Act of 
     1959 (50 U.S.C. 402 note).
       (2) Section 303 of the Internal Security Act of 1950 (50 
     U.S.C. 833).
       (c) Clerical Amendments.--Title 10, United States Code, is 
     amended as follows:
       (1) The heading for section 1605 is amended to read as 
     follows:

     ``Sec. 1605. Benefits for certain employees assigned outside 
       the United States''.

       (2) The table of sections at the beginning of chapter 81 is 
     amended by striking out the items relating to sections 1590 
     and 1599.
       (3) The tables of chapters at the beginning of subtitle A, 
     and at the beginning of part II of subtitle A, are amended by 
     striking out the item relating to chapter 83 and inserting in 
     lieu thereof the following:
``83. Civilian Defense Intelligence Employees...............1601''.....

       (d) Conforming Amendment.--Section 1621 of such title, as 
     transferred and redesignated by section 1632(a)(1), is 
     amended by striking out ``and Central Imagery Office''.
       (e) Cross Reference Amendments.--Chapter 81 of title 10, 
     United States Code, is amended as follows:
       (1) Section 1593(a)(3) is amended by striking out ``section 
     1606'' and inserting in lieu thereof ``section 1622''.
       (2) Section 1596(c) is amended by striking out ``section 
     1604(b)'' and inserting in lieu thereof ``section 1602''.

     SEC. 1634. OTHER PERSONNEL MANAGEMENT AUTHORITIES.

       (a) Applicability of Federal Labor-Management Relations 
     System.--Section 7103(a)(3) of title 5, United States Code is 
     amended--

[[Page H9084]]

       (1) by inserting ``or'' at the end of subparagraph (F);
       (2) by striking out ``; or'' at the end of subparagraph (G) 
     and inserting in lieu thereof a period; and
       (3) by striking out subparagraph (H).
       (b) Applicability of Authority and Procedures for Imposing 
     Certain Adverse Actions.--Section 7511(b)(8) of such title is 
     amended by striking out ``the National Security Agency'' and 
     all that follows through ``title 10'' and inserting in lieu 
     thereof ``an intelligence component of the Department of 
     Defense (as defined in section 1614 of title 10), or an 
     intelligence activity of a military department covered under 
     subchapter I of chapter 83 of title 10''.

     SEC. 1635. EFFECTIVE DATE.

       This subtitle and the amendments made by this subtitle 
     shall take effect on October 1, 1996.
               TITLE XVII--FEDERAL EMPLOYEE TRAVEL REFORM
Sec. 1701. Short title.

                    Subtitle A--Relocation Benefits

Sec. 1711. Allowance for seeking permanent residence quarters.
Sec. 1712. Temporary quarters subsistence expenses allowance.
Sec. 1713. Modification of residence transaction expenses allowance.
Sec. 1714. Authority to pay for property management services.
Sec. 1715. Authority to transport a privately owned motor vehicle 
              within the continental United States.
Sec. 1716. Authority to pay limited relocation allowances to an 
              employee who is performing an extended assignment.
Sec. 1717. Authority to pay a home marketing incentive.
Sec. 1718. Revision and reenactment of additional provisions relating 
              to relocation expenses.

                  Subtitle B--Miscellaneous Provisions

Sec. 1721. Repeal of the long-distance telephone call certification 
              requirement.
Sec. 1722. Transfer of authority to prescribe regulations.
Sec. 1723. Conforming and clerical amendments.
Sec. 1724. Assessment of cost savings.
Sec. 1725. Effective date and issuance of regulations.

     SEC. 1701. SHORT TITLE.

       This title may be cited as the ``Federal Employee Travel 
     Reform Act of 1996''.
                    Subtitle A--Relocation Benefits

     SEC. 1711. ALLOWANCE FOR SEEKING PERMANENT RESIDENCE 
                   QUARTERS.

       Section 5724a of title 5, United States Code, is amended to 
     read as follows:

     ``Sec. 5724a. Relocation expenses of employees transferred or 
       reemployed

       ``(a) An agency shall pay to or on behalf of an employee 
     who transfers in the interest of the Government, a per diem 
     allowance or the actual subsistence expenses, or a 
     combination thereof, of the immediate family of the employee 
     for en route travel of the immediate family between the 
     employee's old and new official stations.
       ``(b)(1) An agency may pay to or on behalf of an employee 
     who transfers in the interest of the Government between 
     official stations located within the United States--
       ``(A) the expenses of transportation of the employee and 
     the employee's spouse for travel to seek permanent residence 
     quarters at a new official station; and
       ``(B) either--
       ``(i) a per diem allowance or the actual subsistence 
     expenses (or a combination of both); or
       ``(ii) an amount for subsistence expenses.
       ``(2) Expenses may be allowed under paragraph (1) only for 
     one round trip in connection with each change of station of 
     the employee.''.

     SEC. 1712. TEMPORARY QUARTERS SUBSISTENCE EXPENSES ALLOWANCE.

       Section 5724a of title 5, United States Code, as amended by 
     section 1712, is further amended by adding at the end the 
     following new subsection:
       ``(c)(1) An agency may pay to or on behalf of an employee 
     who transfers in the interest of the Government--
       ``(A) actual subsistence expenses of the employee and the 
     employee's immediate family for a period of up to 60 days 
     while the employee or family is occupying temporary quarters 
     when the new official station is located within the United 
     States; or
       ``(B) an amount for subsistence expenses instead of the 
     actual subsistence expenses authorized in subparagraph (A) of 
     this paragraph.
       ``(2) The period authorized in paragraph (1) of this 
     subsection for payment of expenses for residence in temporary 
     quarters may be extended up to an additional 60 days if the 
     head of the agency concerned or the designee of such head of 
     the agency determines that there are compelling reasons for 
     the continued occupancy of temporary quarters.
       ``(3) The regulations implementing paragraph (1)(A) shall 
     prescribe daily rates and amounts for subsistence expenses 
     per individual.''.

     SEC. 1713. MODIFICATION OF RESIDENCE TRANSACTION EXPENSES 
                   ALLOWANCE.

       (a) Expenses of Sale.--Section 5724a of title 5, United 
     States Code, as amended by section 1712, is further amended 
     by adding at the end the following new subsection:
       ``(d)(1) An agency shall pay to or on behalf of an employee 
     who transfers in the interest of the Government, expenses of 
     the sale of the residence (or the settlement of an unexpired 
     lease) of the employee at the old official station and 
     purchase of a residence at the new official station that are 
     required to be paid by the employee, when the old and new 
     official stations are located within the United States.
       ``(2) An agency shall pay to or on behalf of an employee 
     who transfers in the interest of the Government from a post 
     of duty located outside the United States to an official 
     station within the United States (other than the official 
     station within the United States from which the employee was 
     transferred when assigned to the foreign tour of duty)--
       ``(A) expenses required to be paid by the employee for the 
     sale of the residence (or the settlement of an unexpired 
     lease) of the employee at the old official station from which 
     the employee was transferred when the employee was assigned 
     to the post of duty located outside the United States; and
       ``(B) expenses required to be paid by the employee for the 
     purchase of a residence at the new official station within 
     the United States.
       ``(3) Reimbursement of expenses under paragraph (2) of this 
     subsection shall not be allowed for any sale (or settlement 
     of an unexpired lease) or purchase transaction that occurs 
     prior to official notification that the employee's return to 
     the United States would be to an official station other than 
     the official station from which the employee was transferred 
     when assigned to the post of duty outside the United States.
       ``(4) Reimbursement for brokerage fees on the sale of the 
     residence and other expenses under this subsection may not 
     exceed those customarily charged in the locality where the 
     residence is located.
       ``(5) Reimbursement may not be made under this subsection 
     for losses incurred by the employee on the sale of the 
     residence.
       ``(6) This subsection applies regardless of whether title 
     to the residence or the unexpired lease is--
       ``(A) in the name of the employee alone;
       ``(B) in the joint names of the employee and a member of 
     the employee's immediate family; or
       ``(C) in the name of a member of the employee's immediate 
     family alone.
       ``(7)(A) In connection with the sale of the residence at 
     the old official station, reimbursement under this subsection 
     shall not exceed 10 percent of the sale price.
       ``(B) In connection with the purchase of a residence at the 
     new official station, reimbursement under this subsection 
     shall not exceed 5 percent of the purchase price.''.
       (b) Relocation Services.--Section 5724c of title 5, United 
     State Code, is amended to read as follows:

     ``Sec. 5724c. Relocation services

       ``Under regulations prescribed under section 5738 of this 
     title, each agency may enter into contracts to provide 
     relocation services to agencies and employees for the purpose 
     of carrying out this subchapter. An agency may pay a fee for 
     such services. Such services include arranging for the 
     purchase of a transferred employee's residence.''.

     SEC. 1714. AUTHORITY TO PAY FOR PROPERTY MANAGEMENT SERVICES.

       Section 5724a of title 5, United States Code, as amended by 
     section 1713, is further amended--
       (1) in subsection (d), by adding at the end the following:
       ``(8) An agency may pay to or on behalf of an employee who 
     transfers in the interest of the Government expenses of 
     property management services, instead of expenses under 
     paragraph (2) or (3) of this subsection for sale of the 
     employee's residence, when the agency determines that such 
     transfer is advantageous and cost-effective for the 
     Government.''; and
       (2) by adding at the end the following new subsection:
       ``(e) An agency may pay to or on behalf of an employee who 
     transfers in the interest of the Government, the expenses of 
     property management services when the employee transfers to a 
     post of duty outside the United States. Such payment shall 
     terminate upon return of the employee to an official station 
     within the United States.''.

     SEC. 1715. AUTHORITY TO TRANSPORT A PRIVATELY OWNED MOTOR 
                   VEHICLE WITHIN THE CONTINENTAL UNITED STATES.

       (a) In General.--Section 5727 of title 5, United States 
     Code, is amended--
       (1) by redesignating subsections (c) through (e) as 
     subsections (d) through (f), respectively;
       (2) by inserting after subsection (b) the following new 
     subsection:
       ``(c) Under regulations prescribed under section 5738 of 
     this title, the privately owned motor vehicle or vehicles of 
     an employee, including a new appointee or a student trainee 
     for whom travel and transportation expenses are authorized 
     under section 5723 of this title, may be transported at 
     Government expense to a new official station of the employee 
     when the agency determines that such transport is 
     advantageous and cost-effective to the Government.''; and
       (3) in subsection (e) (as so redesignated), by inserting 
     ``or (c)'' after ``subsection (b)''.
       (b) Availability of Appropriations.--(1) Section 5722(a) of 
     title 5, United States Code, is amended--
       (A) by striking out ``and'' at the end of paragraph (1);
       (B) by striking out the period at the end of paragraph (2) 
     and inserting in lieu thereof ``; and''; and

[[Page H9085]]

       (C) by adding at the end the following:
       ``(3) the expenses of transporting a privately owned motor 
     vehicle as authorized under section 5727(c) of this title.''.
       (2) Section 5723(a) of title 5, United States Code, is 
     amended--
       (A) by striking out ``and'' at the end of paragraph (1);
       (B) by inserting ``and'' after the semicolon at the end of 
     paragraph (2); and
       (C) by adding at the end the following:
       ``(3) the expenses of transporting a privately owned motor 
     vehicle as authorized under section 5727(c) of this title;''.

     SEC. 1716. AUTHORITY TO PAY LIMITED RELOCATION ALLOWANCES TO 
                   AN EMPLOYEE WHO IS PERFORMING AN EXTENDED 
                   ASSIGNMENT.

       Subchapter II of chapter 57 of title 5, United States Code, 
     as amended by section 1605, is further amended by adding at 
     the end the following new section:

     ``Sec. 5737. Relocation expenses of an employee who is 
       performing an extended assignment

       ``(a) Under regulations prescribed under section 5738 of 
     this title, an agency may pay to or on behalf of an employee 
     assigned from the employee's official station to a duty 
     station for a period of not less than six months and not 
     greater than 30 months, the following expenses in lieu of 
     payment of expenses authorized under subchapter I of this 
     chapter:
       ``(1) Travel expenses to and from the assignment location 
     in accordance with section 5724 of this title.
       ``(2) Transportation expenses of the immediate family and 
     household goods and personal effects to and from the 
     assignment location in accordance with section 5724 of this 
     title.
       ``(3) A per diem allowance for en route travel of the 
     employee's immediate family to and from the assignment 
     location in accordance with section 5724a(a) of this title.
       ``(4) Travel and transportation expenses of the employee 
     and spouse to seek new residence quarters at the assignment 
     location in accordance with section 5724a(b) of this title.
       ``(5) Subsistence expenses of the employee and the 
     employee's immediate family while occupying temporary 
     quarters upon commencement and termination of the assignment 
     in accordance with section 5724a(c) of this title.
       ``(6) An amount, in accordance with section 5724a(f), to be 
     used by the employee for miscellaneous expenses of this 
     title.
       ``(7) The expenses of transporting a privately owned motor 
     vehicle or vehicles to the assignment location in accordance 
     with section 5727 of this title.
       ``(8) An allowance as authorized under section 5724b of 
     this title for Federal, State, and local income taxes 
     incurred on reimbursement of expenses paid under this section 
     or on services provided in kind under this section.
       ``(9) Expenses of nontemporary storage of household goods 
     and personal effects as defined in section 5726(a) of this 
     title, subject to the limitation that the weight of the 
     household goods and personal effects stored, together with 
     the weight of property transported under section 5724(a) of 
     this title, may not exceed the total maximum weight which 
     could be transported in accordance with section 5724(a) of 
     this title.
       ``(10) Expenses of property management services.
       ``(b) An agency shall not make payment under this section 
     to or on behalf of the employee for expenses incurred after 
     termination of the temporary assignment.''.

     SEC. 1717. AUTHORITY TO PAY A HOME MARKETING INCENTIVE.

       Subchapter IV of chapter 57 of title 5, United States Code, 
     is amended by adding at the end the following new section:

     ``Sec. 5756. Home marketing incentive payment

       ``(a) Under regulations prescribed under subsection (b), an 
     agency may pay to an employee who transfers in the interest 
     of the Government an amount to encourage the employee to 
     aggressively market the employee's residence at the official 
     station from which transferred when--
       ``(1) the residence is entered into a relocation services 
     program established under a contract in accordance with 
     section 5724c of this title to arrange for the purchase of 
     the residence;
       ``(2) the employee finds a buyer who completes the purchase 
     of the residence through the program; and
       ``(3) the sale of the residence results in a reduced cost 
     to the Government.
       ``(b)(1) The Administrator of General Services shall 
     prescribe regulations to carry out this section.
       ``(2) The regulations shall include a limitation on the 
     maximum amount payable with respect to an employee's 
     residence. The Administrator shall establish the limitation 
     in consultation with the Director of the Office of Management 
     and Budget. For fiscal years 1997 and 1998, the maximum 
     amount shall be the amount equal to five percent of the sale 
     price of the residence.''.

     SEC. 1718. REVISION AND REENACTMENT OF ADDITIONAL PROVISIONS 
                   RELATING TO RELOCATION EXPENSES.

       Section 5724a of title 5, United States Code, as amended by 
     section 1714, is further amended by adding at the end the 
     following new subsections:
       ``(f)(1) Subject to paragraph (2), an employee who is 
     reimbursed under subsections (a) through (e) of this section 
     or section 5724(a) of this title is entitled to an amount for 
     miscellaneous expenses--
       ``(A) not to exceed two weeks' basic pay, if such employee 
     has an immediate family; or
       ``(B) not to exceed one week's basic pay, if such employee 
     does not have an immediate family.
       ``(2) Amounts paid under paragraph (1) may not exceed 
     amounts determined at the maximum rate payable for a position 
     at GS-13 of the General Schedule.
       ``(g) A former employee separated by reason of reduction in 
     force or transfer of function who within one year after the 
     separation is reemployed by a nontemporary appointment at a 
     different geographical location from that where the 
     separation occurred, may be allowed and paid the expenses 
     authorized by sections 5724, 5725, 5726(b), and 5727 of this 
     title, and may receive the benefits authorized by subsections 
     (a) through (f) of this section, in the same manner as though 
     the employee had been transferred in the interest of the 
     Government without a break in service to the location of 
     reemployment from the location where separated.
       ``(h) Payments for subsistence expenses, including amounts 
     in lieu of per diem or actual subsistence expenses or a 
     combination thereof, authorized under this section may not 
     exceed the maximum payment allowed under regulations which 
     implement section 5702 of this title.
       ``(i) Subsections (a), (b), and (c) shall be implemented 
     under regulations issued under section 5738 of this title.
       ``(j) For purposes of subsections (c), (d), and (e), the 
     term `United States' includes the District of Columbia, the 
     Commonwealth of Puerto Rico, the Commonwealth of the Northern 
     Mariana Islands, the territories and possessions of the 
     United States, and the areas and installations in the 
     Republic of Panama that are made available to the United 
     States pursuant to the Panama Canal Treaty of 1977 and 
     related agreements (as described in section 3(a) of the 
     Panama Canal Act of 1979 (22 U.S.C. 3602(a))).''.
                  Subtitle B--Miscellaneous Provisions

     SEC. 1721. REPEAL OF THE LONG-DISTANCE TELEPHONE CALL 
                   CERTIFICATION REQUIREMENT.

       Section 1348 of title 31, United States Code, is amended--
       (1) by striking the last sentence of subsection (a)(2);
       (2) by striking subsection (b); and
       (3) by redesignating subsections (c) and (d) as subsections 
     (b) and (c), respectively.

     SEC. 1722. TRANSFER OF AUTHORITY TO PRESCRIBE REGULATIONS.

       Subchapter II of chapter 57 of title 5, United States Code, 
     as amended by section 1716, is further amended by adding at 
     the end the following new section:

     ``Sec. 5738. Regulations

       ``(a)(1) Except as specifically provided in this 
     subchapter, the Administrator of General Services shall 
     prescribe regulations necessary for the administration of 
     this subchapter.
       ``(2) The Administrator of General Services shall include 
     in the regulations authority for the head of an agency or his 
     designee to waive any limitation of this subchapter or in any 
     implementing regulation for any employee relocating to or 
     from a remote or isolated location who would suffer hardship 
     if the limitation were not waived. A waiver of a limitation 
     under authority provided in the regulations pursuant to this 
     paragraph shall be effective notwithstanding any other 
     provision of this subchapter.
       ``(b) In prescribing regulations for the implementation of 
     section 5724b of this title, the Administrator of General 
     Services shall consult with the Secretary of the Treasury.
       ``(c) The Secretary of Defense shall prescribe regulations 
     necessary for the implementation of section 5735 of this 
     title.''.

     SEC. 1723. CONFORMING AND CLERICAL AMENDMENTS.

       (a) Cross References.--(1) Title 5, United States Code, is 
     amended as follows:
       (A) Section 3375 is amended--
       (i) in subsection (a)(3), by striking out ``section 
     5724a(a)(1)'' and inserting in lieu thereof ``section 
     5724a(a)'';
       (ii) in subsection (a)(4), by striking out ``section 
     5724a(a)(3)'' and inserting in lieu thereof ``section 
     5724a(c)''; and
       (iii) in subsection (a)(5), by striking out ``section 
     5724a(b)'' and inserting in lieu thereof ``section 
     5724a(g)''; and
       (B) Section 5724(e) is amended by striking out ``section 
     5724a(a), (b)'' and inserting in lieu thereof ``section 
     5724a(a) through (f)''.
       (2) Section 707 of title 38, United States Code, is 
     amended--
       (A) in subsection (a)(6), by striking out ``Section 
     5724a(a)(3)'' and inserting in lieu thereof ``Section 
     5724a(c)''; and
       (B) in subsection (a)(7), by striking out ``Section 
     5724a(a)(4)'' and inserting in lieu thereof ``Section 
     5724a(d)''.
       (3) The Public Health Service Act is amended as follows:
       (A) Section 501(g)(2)(A) (42 U.S.C. 290aa(g)(2)(A)) is 
     amended by striking out ``5724a(a)(1), 5724a(a)(3)'' and 
     inserting in lieu thereof ``5724a(a), 5724a(c)''.
       (B) Section 925(f)(2)(A) (42 U.S.C. 299c-4(f)(2)(A)) is 
     amended by striking out ``5724a(a)(1), 5724a(a)(3)'' and 
     inserting in lieu thereof ``5724a(a), 5724a(c)''.
       (b) Regulations.--Title 5, United States Code, is amended 
     as follows:
       (1) Sections 5722, 5723, 5724, (in subsections (a), (b), 
     and (c)), 5724b, 5726 (in subsections (b)

[[Page H9086]]

     and (c)), 5727(b), 5728 (in subsections (a), (b), and 
     (c)(1)), and 5729 (in subsections (a) and (b)) of title 5, 
     United States Code, are amended by striking out ``Under such 
     regulations as the President may prescribe'', and inserting 
     in lieu thereof ``Under regulations prescribed under section 
     5738 of this title''.
       (2) Section 5724 of title 5, United States Code, is 
     amended--
       (A) by striking out ``under regulations prescribed by the 
     President'' each place it appears in subsections (c) and (e) 
     and inserting in lieu thereof ``under regulations prescribed 
     under section 5738 of this title''; and
       (B) in subsection (f), by striking out ``under the 
     regulations of the President'' and inserting in lieu thereof 
     ``under regulations prescribed under section 5738 of this 
     title''.
       (3) Section 5726(a) of title 5, United States Code, is 
     amended by striking out ``as the President may by regulation 
     authorize'' and inserting in lieu thereof ``as authorized 
     under regulations prescribed under section 5738 of this 
     title''.
       (4) Section 5731(a) of title 5, United States Code, is 
     amended by striking out ``in accordance with regulations 
     prescribed by the President'' and inserting in lieu thereof 
     ``in accordance with regulations prescribed under section 
     5738 of this title''.
       (c) Clerical Amendments.--The table of sections at the 
     beginning of chapter 57 of title 5, United States Code, as 
     amended by section 1605, is further amended--
       (1) by inserting after the item relating to section 5736 
     the following:
``5737. Relocation expenses of an employee who is performing an 
              extended assignment.
``5738. Regulations.'';

     and
       (2) by inserting at the end the following:
``5756. Home marketing incentive payment.''.

     SEC. 1724. ASSESSMENT OF COST SAVINGS.

       No later than one year after the effective date set forth 
     in section 1725(a), the Comptroller General shall submit to 
     the Committee on Governmental Affairs of the Senate and the 
     Committee on Government Reform and Oversight of the House of 
     Representatives an assessment of the costs of Federal travel 
     administration that are saved as a result of the amendments 
     made by this title and the regulations prescribed to carry 
     out the amendments.

     SEC. 1725. EFFECTIVE DATE AND ISSUANCE OF REGULATIONS.

       (a) Effective Date.--The amendments made by this title 
     shall take effect 180 days after the date of the enactment of 
     this Act.
       (b) Regulations.--The Administrator of General Services 
     shall, not later than the effective date set forth under 
     subsection (a), issue final regulations implementing the 
     amendments made by this title.
     TITLE XVIII--FEDERAL CHARTER FOR THE FLEET RESERVE ASSOCIATION
Sec. 1801. Recognition and grant of Federal charter.
Sec. 1802. Powers.
Sec. 1803. Purposes.
Sec. 1804. Service of process.
Sec. 1805. Membership.
Sec. 1806. Board of directors.
Sec. 1807. Officers.
Sec. 1808. Restrictions.
Sec. 1809. Liability.
Sec. 1810. Maintenance and inspection of books and records.
Sec. 1811. Audit of financial transactions.
Sec. 1812. Annual report.
Sec. 1813. Reservation of right to alter, amend, or repeal charter.
Sec. 1814. Tax-exempt status required as condition of charter.
Sec. 1815. Termination.
Sec. 1816. Definition of State.

     SEC. 1801. RECOGNITION AND GRANT OF FEDERAL CHARTER.

       The Fleet Reserve Association, a nonprofit corporation 
     organized under the laws of the State of Delaware, is 
     recognized as such and granted a Federal charter.

     SEC. 1802. POWERS.

       The Fleet Reserve Association (in this title referred to as 
     the ``association'') shall have only those powers granted to 
     it through its bylaws and articles of incorporation filed in 
     the State of Delaware and subject to the laws of that State.

     SEC. 1803. PURPOSES.

       The purposes of the association are those provided in its 
     bylaws and articles of incorporation and shall include the 
     following:
       (1) Upholding and defending the Constitution of the United 
     States.
       (2) Aiding and maintaining an adequate naval defense for 
     the United States.
       (3) Assisting the recruitment of the best personnel 
     available for the United States Navy, United States Marine 
     Corps, and United States Coast Guard.
       (4) Providing for the welfare of the personnel who serve in 
     the United States Navy, United States Marine Corps, and 
     United States Coast Guard.
       (5) Continuing to serve loyally the United States Navy, 
     United States Marine Corps, and United States Coast Guard.
       (6) Preserving the spirit of shipmanship by providing 
     assistance to shipmates and their families.
       (7) Instilling love of the United States and the flag and 
     promoting soundness of mind and body in the youth of the 
     United States.

     SEC. 1804. SERVICE OF PROCESS.

       With respect to service of process, the association shall 
     comply with the laws of the State of Delaware and those 
     States in which it carries on its activities in furtherance 
     of its corporate purposes.

     SEC. 1805. MEMBERSHIP.

       Except as provided in section 1808(g), eligibility for 
     membership in the association and the rights and privileges 
     of members shall be as provided in the bylaws and articles of 
     incorporation of the association.

     SEC. 1806. BOARD OF DIRECTORS.

       Except as provided in section 1808(g), the composition of 
     the board of directors of the association and the 
     responsibilities of the board shall be as provided in the 
     bylaws and articles of incorporation of the association and 
     in conformity with the laws of the State of Delaware.

     SEC. 1807. OFFICERS.

       Except as provided in section 1808(g), the positions of 
     officers of the association and the election of members to 
     such positions shall be as provided in the bylaws and 
     articles of incorporation of the association and in 
     conformity with the laws of the State of Delaware.

     SEC. 1808. RESTRICTIONS.

       (a) Income and Compensation.--No part of the income or 
     assets of the association may inure to the benefit of any 
     member, officer, or director of the association or be 
     distributed to any such individual during the life of this 
     charter. Nothing in this subsection may be construed to 
     prevent the payment of reasonable compensation to the 
     officers and employees of the association or reimbursement 
     for actual and necessary expenses in amounts approved by the 
     board of directors.
       (b) Loans.--The association may not make any loan to any 
     member, officer, director, or employee of the association.
       (c) Issuance of Stock and Payment of Dividends.--The 
     association may not issue any shares of stock or declare or 
     pay any dividends.
       (d) Disclaimer of Congressional or Federal Approval.--The 
     association may not claim the approval of the Congress or the 
     authorization of the Federal Government for any of its 
     activities by virtue of this title.
       (e) Corporate Status.--The association shall maintain its 
     status as a corporation organized and incorporated under the 
     laws of the State of Delaware.
       (f) Corporate Function.--The association shall function as 
     an educational, patriotic, civic, historical, and research 
     organization under the laws of the State of Delaware.
       (g) Nondiscrimination.--In establishing the conditions of 
     membership in the association and in determining the 
     requirements for serving on the board of directors or as an 
     officer of the association, the association may not 
     discriminate on the basis of race, color, religion, sex, 
     handicap, age, or national origin.

     SEC. 1809. LIABILITY.

       The association shall be liable for the acts of its 
     officers, directors, employees, and agents whenever such 
     individuals act within the scope of their authority.

     SEC. 1810. MAINTENANCE AND INSPECTION OF BOOKS AND RECORDS.

       (a) Books and Records of Account.--The association shall 
     keep correct and complete books and records of account and 
     minutes of any proceeding of the association involving any of 
     its members, the board of directors, or any committee having 
     authority under the board of directors.
       (b) Names and Addresses of Members.--The association shall 
     keep at its principal office a record of the names and 
     addresses of all members having the right to vote in any 
     proceeding of the association.
       (c) Right to Inspect Books and Records.--All books and 
     records of the association may be inspected by any member 
     having the right to vote in any proceeding of the 
     association, or by any agent or attorney of such member, for 
     any proper purpose at any reasonable time.
       (d) Application of State Law.--This section may not be 
     construed to contravene any applicable State law.

     SEC. 1811. AUDIT OF FINANCIAL TRANSACTIONS.

       The first section of the Act entitled ``An Act to provide 
     for audit of accounts of private corporations established 
     under Federal law'', approved August 30, 1964 (36 U.S.C. 
     1101), is amended by adding at the end the following:
       ``(77) Fleet Reserve Association.''.

     SEC. 1812. ANNUAL REPORT.

       The association shall annually submit to Congress a report 
     concerning the activities of the association during the 
     preceding fiscal year. The annual report shall be submitted 
     on the same date as the report of the audit required by 
     reason of the amendment made in section 1811. The annual 
     report shall not be printed as a public document.

     SEC. 1813. RESERVATION OF RIGHT TO ALTER, AMEND, OR REPEAL 
                   CHARTER.

       The right to alter, amend, or repeal this title is 
     expressly reserved to Congress.

     SEC. 1814. TAX-EXEMPT STATUS REQUIRED AS CONDITION OF 
                   CHARTER.

       If the association fails to maintain its status as an 
     organization exempt from taxation as provided in the Internal 
     Revenue Code of 1986 the charter granted in this title shall 
     terminate.

     SEC. 1815. TERMINATION.

       The charter granted in this title shall expire if the 
     association fails to comply with any of the provisions of 
     this title.

     SEC. 1816. DEFINITION OF STATE.

       For purposes of this title, the term ``State'' includes the 
     District of Columbia, the Commonwealth of Puerto Rico, the 
     Commonwealth of the Northern Mariana Islands, and the 
     territories and possessions of the United States.

[[Page H9087]]

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

     SEC. 2001. SHORT TITLE.

       This division may be cited as the ``Military Construction 
     Authorization Act for Fiscal Year 1997''.
                            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. Land acquisition, National Ground Intelligence Center, 
              Charlottesville, Virginia.

     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), and, in the case of the projects described in 
     paragraphs (2) and (3) of section 2104(b), other amounts 
     appropriated pursuant to authorizations enacted after this 
     Act for the projects, 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       Total    
------------------------------------------------------------------------
Alabama......................  Fort Rucker..............      $3,250,000
California...................  Army project, Naval                      
                                Weapons Station, Concord     $27,000,000
                               Camp Roberts.............      $5,500,000
Colorado.....................  Fort Carson..............     $17,550,000
District of Columbia.........  Fort McNair..............      $6,900,000
Georgia......................  Fort Benning.............     $53,400,000
                               Fort McPherson...........      $3,500,000
                               Fort Stewart, Hunter Army      $6,000,000
                                Air Field.                              
Hawaii.......................  Schofield Barracks.......     $16,500,000
Kansas.......................  Fort Riley...............     $26,000,000
Kentucky.....................  Fort Campbell............     $51,100,000
                               Fort Knox................     $45,000,000
New Jersey...................  Picatinny Arsenal........      $5,000,000
New Mexico...................  White Sands Missile Range     $41,000,000
New York.....................  Fort Drum................     $11,400,000
North Carolina...............  Fort Bragg...............     $14,000,000
Texas........................  Fort Hood................     $47,300,000
                               Fort Sam Houston.........      $3,100,000
Virginia.....................  Fort Eustis..............      $3,550,000
                               National Ground                          
                                Intelligence Center,                    
                                Charlottesville.........      $1,000,000
Washington...................  Fort Lewis...............     $54,600,000
CONUS Classified.............  Classified Locations.....      $4,600,000
                                                         ---------------
                                 Total:.................    $447,250,000
------------------------------------------------------------------------

       (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              Total    
------------------------------------------------------------------------
Germany........................  Lincoln Village,             $7,300,000
                                  Darmstadt.                            
                                 Spinelli Barracks,           $8,100,000
                                  Mannheim.                             
                                 Taylor Barracks,             $9,300,000
                                  Mannheim.                             
Italy..........................  Camp Ederle............      $3,100,000
Korea..........................  Camp Casey.............     $16,000,000
                                 Camp Red Cloud.........     $14,000,000
Overseas Classified............  Classified Locations...     $64,000,000
                                                         ---------------
                                   Total:...............    $121,800,000
------------------------------------------------------------------------

     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                   Purpose                Total    
----------------------------------------------------------------------------------------------------------------
Hawaii..................................  Schofield Barracks........  54 Units..................     $10,000,000
North Carolina..........................  Fort Bragg................  88 Units..................      $9,800,000
Pennsylvania............................  Tobyhanna Army Depot......  200 Units.................        $890,000
Texas...................................  Fort Bliss................  64 Units..................     $11,000,000

[[Page H9088]]

                                                                                                                
                                          Fort Hood.................  140 Units.................     $18,500,000
                                                                                                 ---------------
                                                                        Total:..................     $50,190,000
----------------------------------------------------------------------------------------------------------------


       (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 $2,963,000.

     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 $105,350,000.

     SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

       (a) In General.--Funds are hereby authorized to be 
     appropriated for fiscal years beginning after September 30, 
     1996, for military construction, land acquisition, and 
     military family housing functions of the Department of the 
     Army in the total amount of $1,942,557,000 as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2101(a), $394,250,000.
       (2) For military construction projects outside the United 
     States authorized by section 2101(b), $121,800,000.
       (3) For unspecified minor military construction projects 
     authorized by section 2805 of title 10, United States Code, 
     $5,000,000.
       (4) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $50,538,000.
       (5) For military family housing functions:
       (A) For construction and acquisition, planning and design, 
     and improvement of military family housing and facilities, 
     $158,503,000.
       (B) For support of military family housing (including the 
     functions described in section 2833 of title 10, United 
     States Code), $1,212,466,000.
       (b) Limitation on Total Cost of Construction Projects.--
     Notwithstanding the cost variations authorized by section 
     2853 of title 10, United States Code, and any other cost 
     variation authorized by law, the total cost of all projects 
     carried out under section 2101 of this Act may not exceed--
       (1) the total amount authorized to be appropriated under 
     paragraphs (1) and (2) of subsection (a);
       (2) $31,000,000 (the balance of the amount authorized under 
     section 2101(a) for the construction of the National Range 
     Control Center at White Sands Missile Range, New Mexico); and
       (3) $22,000,000 (the balance of the amount authorized under 
     section 2101(a) for the whole barracks complex renewal at 
     Fort Knox, Kentucky).

     SEC. 2105. LAND ACQUISITION, NATIONAL GROUND INTELLIGENCE 
                   CENTER, CHARLOTTESVILLE, VIRGINIA.

       (a) Acquisition Authorized.--Subject to subsection (b), the 
     Secretary of the Army may acquire real property for the 
     National Ground Intelligence Center, Charlottesville, 
     Virginia.
       (b) Requirement Relating to Acquisition.--The Secretary may 
     not acquire real property pursuant to the authorization in 
     subsection (a) until the Secretary certifies to the 
     congressional defense committees, based on the results of an 
     assessment of property currently owned or operated by the 
     Federal Government in the vicinity of Charlottesville, 
     Virginia, that the acquisition of the property would provide 
     the most cost-effective means of securing a location for the 
     National Ground Intelligence Center that satisfies the 
     mission requirements of the center.
       (c) Funding.--Of the amounts authorized to be appropriated 
     by section 2104(a)(1), $1,000,000 shall be available for the 
     acquisition of real property pursuant to the authorization in 
     subsection (a).
                            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.  Beach replenishment, Naval Air Station, North Island, 
              California.

     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), and, in the case of the projects described in 
     paragraphs (2) and (3) of section 2204(b), other amounts 
     appropriated pursuant to authorizations enacted after this 
     Act for the projects, 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        $3,920,000
                                  Navajo.                               
California.....................  Marine Corps Air-Ground                
                                  Combat Center,                        
                                  Twentynine Palms......      $4,020,000
                                 Marine Corps Air                       
                                  Station, Camp                         
                                  Pendleton.............      $6,240,000
                                 Marine Corps Base, Camp                
                                  Pendleton.............     $51,630,000
                                 Marine Corps Recruit                   
                                  Detachment, San Diego.      $8,150,000
                                 Naval Air Station,          $86,502,000
                                  North Island.                         
                                 Naval Command Control &                
                                  Ocean Surveillance                    
                                  Center, San Diego.....      $1,960,000
                                 Naval Facility, San         $17,000,000
                                  Clemente Island.                      
                                 Naval Station, San           $7,050,000
                                  Diego.                                
Connecticut....................  Naval Submarine Base,       $13,830,000
                                  New London.                           
District of Columbia...........  Naval District,             $19,300,000
                                  Washington.                           
Florida........................  Naval Air Station, Key       $2,250,000
                                  West.                                 
                                 Naval Station, Mayport.      $2,800,000
Georgia........................  Naval Submarine Base,        $1,550,000
                                  Kings Bay.                            
Hawaii.........................  Marine Corps, Air           $20,080,000
                                  Station, Kaneohe Bay.                 
                                 Naval Station, Pearl        $19,600,000
                                  Harbor.                               
                                 Naval Submarine Base,       $35,890,000
                                  Pearl Harbor.                         
Idaho..........................  Naval Surface Warfare        $7,150,000
                                  Center, Bayview.                      
Illinois.......................  Naval Hospital, Great       $15,200,000
                                  Lakes.                                
                                 Naval Training Center,      $22,900,000
                                  Great Lakes.                          
Indiana........................  Naval Surface Warfare        $5,000,000
                                  Center, Crane.                        
Maryland.......................  Naval Air Warfare                      
                                  Center, Patuxent River      $1,270,000

[[Page H9089]]

                                                                        
                                 United States Naval         $10,480,000
                                  Academy.                              
Mississippi....................  Navy Project, Stennis        $7,960,000
                                  Space Center.                         
Nevada.........................  Naval Air Station,          $21,630,000
                                  Fallon.                               
North Carolina.................  Marine Corps Air             $1,630,000
                                  Station, Cherry Point.                
                                 Marine Corps Air            $20,290,000
                                  Station, New River.                   
                                 Marine Corps Base, Camp     $20,750,000
                                  Lejeune.                              
Pennsylvania...................  Philadelphia Naval           $8,300,000
                                  Shipyard.                             
South Carolina.................  Marine Corps Recruit                   
                                  Depot, Parris Island..      $2,540,000
Texas..........................  Naval Air Station,           $1,810,000
                                  Kingsville.                           
                                 Naval Station,              $16,850,000
                                  Ingleside.                            
Virginia.......................  Armed Forces Staff                     
                                  College, Norfolk......     $12,900,000
                                 Marine Corps Combat                    
                                  Development Command,                  
                                  Quantico..............     $14,570,000
                                 Naval Station, Norfolk.     $56,120,000
                                 Naval Surface Warfare        $8,030,000
                                  Center, Dahlgren.                     
Washington.....................  Naval Station, Everett.     $25,740,000
                                 Naval Undersea Warfare                 
                                  Center, Keyport.......      $6,800,000
CONUS Various..................  Defense access roads...        $300,000
                                                         ---------------
                                   Total:...............    $589,992,000
------------------------------------------------------------------------


       (b) Outside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2204(a)(2), and, in the case of the project described in 
     section 2204(b)(4), other amounts appropriated pursuant to 
     authorizations enacted after this Act for the project, 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       $5,980,000
                                  Unit, Bahrain.                        
Greece.........................  Naval Support Activity,      $7,050,000
                                  Souda Bay.                            
Italy..........................  Naval Air Station,          $15,700,000
                                  Sigonella.                            
                                 Naval Support Activity,      $8,620,000
                                  Naples.                               
Puerto Rico....................  Naval Station,              $23,600,000
                                  Roosevelt Roads.                      
United Kingdom.................  Joint Maritime                         
                                  Communications Center,                
                                  St. Mawgan............      $4,700,000
                                                         ---------------
                                   Total:...............     $65,650,000
------------------------------------------------------------------------

     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    
----------------------------------------------------------------------------------------------------------------
Arizona.................................  Marine Corps Air Station,                                             
                                           Yuma.....................  Ancillary Facility........        $709,000
California..............................  Marine Corps Air-Ground                                               
                                           Combat Center, Twentynine                                            
                                           Palms....................  Ancillary Facilities......      $2,938,000
                                          Marine Corps Base, Camp                                               
                                           Pendleton................  202 Units.................     $29,483,000
                                          Naval Air Station, Lemoore  276 Units.................     $39,837,000
                                          Navy Public Works Center,                                             
                                           San Diego................  366 Units.................     $48,719,000
Florida.................................  Naval Station, Mayport....  100 Units.................     $10,000,000
Hawaii..................................  Marine Corps Air Station,                                             
                                           Kaneohe Bay..............  54 Units..................     $11,676,000
                                          Navy Public Works Center,                                             
                                           Pearl Harbor.............  264 Units.................     $52,586,000
Maine...................................  Naval Air Station                                                     
                                           Brunswick................  92 Units..................     $10,925,000
Maryland................................  Naval Air Warfare Center,                                             
                                           Patuxent River...........  Ancillary Facility........      $1,233,000
North Carolina..........................  Marine Corps Base, Camp                                               
                                           Lejeune..................  Ancillary Facility........        $845,000
                                          Marine Corps Base, Camp                                               
                                           Lejeune..................  94 Units..................     $10,110,000
South Carolina..........................  Marine Corps Air Station,                                             
                                           Beaufort.................  140 Units.................     $14,000,000
Texas...................................  Corpus Christi Naval                                                  
                                           Complex..................  104 Units.................     $11,675,000
                                          Naval Air Station,                                                    
                                           Kingsville...............  48 Units..................      $7,550,000

[[Page H9090]]

                                                                                                                
Virginia................................  AEGIS Combat Systems                                                  
                                           Center, Wallops Island...  20 Units..................      $2,975,000
                                          Naval Security Group                                                  
                                           Activity, Northwest......  Ancillary Facility........        $741,000
Washington..............................  Naval Station, Everett....  100 Units.................     $15,015,000
                                          Naval Submarine Base,                                                 
                                           Bangor...................  Ancillary Facility........        $934,000
                                                                                                 ---------------
                                                                        Total:..................    $281,951,000
----------------------------------------------------------------------------------------------------------------


       (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 $22,552,000.

     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 $205,383,000.

     SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

       (a) In General.--Funds are hereby authorized to be 
     appropriated for fiscal years beginning after September 30, 
     1996, for military construction, land acquisition, and 
     military family housing functions of the Department of the 
     Navy in the total amount of $2,213,731,000 as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2201(a), $579,312,000.
       (2) For military construction projects outside the United 
     States authorized by section 2201(b), $51,550,000.
       (3) For unspecified minor construction projects authorized 
     by section 2805 of title 10, United States Code, $5,115,000.
       (4) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $49,927,000.
       (5) For military family housing functions:
       (A) For construction and acquisition, planning and design, 
     and improvement of military family housing and facilities, 
     $499,886,000.
       (B) For support of military housing (including functions 
     described in section 2833 of title 10, United States Code), 
     $1,014,241,000.
       (6) For the construction of a bachelor enlisted quarters at 
     the Naval Construction Battalion Center, Port Hueneme, 
     California, authorized by section 2201(a) of the Military 
     Construction Authorization Act for Fiscal Year 1996 (division 
     B of Public Law 104-106; 110 Stat. 525), $7,700,000.
       (7) For the construction of a Strategic Maritime Research 
     Center at the Naval War College, Newport, Rhode Island, 
     authorized by section 2201(a) of the Military Construction 
     Authorization Act for Fiscal Year 1995 (division B of Public 
     Law 103-337; 108 Stat. 3031), $8,000,000.
       (8) For the construction of the large anachoic chamber 
     facility at the Patuxent River Naval Warfare Center, Aircraft 
     Division, 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), 
     $10,000,000.
       (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 2201 of this Act may not exceed--
       (1) the total amount authorized to be appropriated under 
     paragraphs (1) and (2) of subsection (a);
       (2) $5,200,000 (the balance of the amount authorized under 
     section 2201(a) for the construction of a bachelors enlisted 
     quarters at Naval Hospital, Great Lakes, Illinois);
       (3) $5,480,000 (the balance of the amount authorized under 
     section 2201(a) for the construction of a chiller system 
     upgrade at the United States Naval Academy, Maryland); and
       (4) $14,100,000 (the balance of the amount authorized under 
     section 2201(b) for the construction of a bachelor enlisted 
     quarters at Naval Station, Roosevelt Roads, Puerto Rico).
       (c) Adjustment.--The total amount authorized to be 
     appropriated pursuant to paragraphs (1) through (8) of 
     subsection (a) is the sum of the amounts authorized to be 
     appropriated in such paragraphs, reduced by $12,000,000, 
     which represents the combination of project savings resulting 
     from favorable bids, reduced overhead costs, and 
     cancellations due to force structure changes.

     SEC. 2205. BEACH REPLENISHMENT, NAVAL AIR STATION, NORTH 
                   ISLAND, CALIFORNIA.

       (a) Cost-Sharing Agreement.--With regard to the portion of 
     the military construction project for Naval Air Station, 
     North Island, California, authorized by section 2201(a) and 
     involving on-shore and near-shore beach replenishment, the 
     Secretary of the Navy shall enter into an agreement with the 
     State of California and local governments in the vicinity of 
     the project, under which the State and local governments 
     agree to cover not less than 50 percent of the cost incurred 
     by the Secretary to carry out the beach replenishment portion 
     of the project. Within amounts appropriated for the project, 
     Federal expenditures may not exceed $9,630,000 for beach 
     replenishment.
       (b) Activities Pending Agreement.--The Secretary shall not 
     delay commencement of, or activities under, the construction 
     project described in subsection (a), including the beach 
     replenishment portion of the project, pending the execution 
     of the cost-sharing agreement.
                         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. Elimination of authority to carry out fiscal year 1995 
              project, Spangdahlem Air Force Base, Germany.

     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.      $7,875,000
Alaska.........................  Elmendorf Air Force         $21,530,000
                                  Base.                                 
                                 Eielson Air Force Base.      $3,900,000
                                 King Salmon Air Force        $5,700,000
                                  Base.                                 
Arizona........................  Davis-Monthan Air Force      $9,920,000
                                  Base.                                 
                                 Luke Air Force Base....      $6,700,000
Arkansas.......................  Little Rock Air Force       $18,105,000
                                  Base.                                 
California.....................  Beale Air Force Base...     $14,425,000
                                 Edwards Air Force Base.     $20,080,000
                                 Travis Air Force Base..     $14,980,000
                                 Vandenberg Air Force         $3,290,000
                                  Base.                                 
Colorado.......................  Buckley Air National        $17,960,000
                                  Guard Base.                           
                                 Falcon Air Force             $2,095,000
                                  Station.                              
                                 Peterson Air Force Base     $20,720,000

[[Page H9091]]

                                                                        
                                 United States Air Force     $12,165,000
                                  Academy.                              
Delaware.......................  Dover Air Force Base...     $19,980,000
Florida........................  Eglin Air Force Base...      $4,590,000
                                 Eglin Auxiliary Field 9      $6,825,000
                                 Patrick Air Force Base.      $2,595,000
                                 Tyndall Air Force Base.      $3,600,000
Georgia........................  Moody Air Force Base...      $3,350,000
                                 Robins Air Force Base..     $25,045,000
Idaho..........................  Mountain Home Air Force     $15,945,000
                                  Base.                                 
Kansas.........................  McConnell Air Force         $19,130,000
                                  Base.                                 
Louisiana......................  Barksdale Air Force          $4,890,000
                                  Base.                                 
Maryland.......................  Andrews Air Force Base.      $8,140,000
Mississippi....................  Keesler Air Force Base.     $14,465,000
Montana........................  Malstrom Air Force Base      $6,300,000
Nevada.........................  Indian Springs Air                     
                                  Force Auxiliary Air                   
                                  Field.................      $4,690,000
                                 Nellis Air Force Base..      $9,900,000
New Mexico.....................  Cannon Air Force Base..      $7,100,000
                                 Kirtland Air Force Base     $10,000,000
New Jersey.....................  McGuire Air Force Base.      $8,080,000
North Carolina.................  Pope Air Force Base....      $5,915,000
                                 Seymour Johnson Air         $11,280,000
                                  Force Base.                           
North Dakota...................  Grand Forks Air Force       $12,470,000
                                  Base.                                 
                                 Minot Air Force Base...      $3,940,000
Ohio...........................  Wright-Patterson Air         $7,400,000
                                  Force Base.                           
Oklahoma.......................  Tinker Air Force Base..      $9,880,000
South Carolina.................  Charleston Air Force        $37,410,000
                                  Base.                                 
                                 Shaw Air Force Base....     $14,465,000
South Dakota...................  Ellsworth Air Force          $4,150,000
                                  Base.                                 
Tennessee......................  Arnold Engineering                     
                                  Development Center....     $12,481,000
Texas..........................  Brooks Air Force Base..      $5,400,000
                                 Dyess Air Force Base...     $12,295,000
                                 Kelly Air Force Base...      $3,250,000
                                 Lackland Air Force Base      $9,413,000
                                 Sheppard Air Force Base      $9,400,000
Utah...........................  Hill Air Force Base....      $3,690,000
Virginia.......................  Langley Air Force Base.      $8,005,000
Washington.....................  Fairchild Air Force         $18,155,000
                                  Base.                                 
                                 McChord Air Force Base.     $57,065,000
Wyoming........................  F.E. Warren Air Force        $3,700,000
                                  Base.                                 
                                                         ---------------
                                   Total:...............    $603,834,000
------------------------------------------------------------------------


       (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........................  Ramstein Air Force Base      $5,370,000
                                 Spangdahlem Air Base...      $1,890,000
Italy..........................  Aviano Air Base........     $10,060,000
Korea..........................  Osan Air Base..........      $9,780,000
Turkey.........................  Incirlik Air Base......      $7,160,000
United Kingdom.................  Croughton Royal Air          $1,740,000
                                  Force Base.                           
                                 Lakenheath Royal Air        $17,525,000
                                  Force Base.                           
                                 Mildenhall Royal Air         $6,195,000
                                  Force Base.                           
Overseas Classified............  Classified Locations...     $18,395,000
                                                         ---------------
                                   Total:...............     $78,115,000
------------------------------------------------------------------------

     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                   Purpose               Amount    
----------------------------------------------------------------------------------------------------------------
Alaska..................................  Eielson Air Force Base....  72 units..................     $21,127,000
                                          Eielson Air Force Base....  Ancillary Facility........      $2,950,000
California..............................  Beale Air Force Base......  56 Units..................      $8,893,000
                                          Los Angeles Air Force Base  25 units..................      $6,425,000
                                          Travis Air Force Base.....  70 Units..................      $8,631,000
  ......................................  Vandenberg Air Force Base.  112 Units.................     $20,891,000
District of Columbia....................  Bolling Air Force Base....  40 units..................      $5,000,000
Florida.................................  Eglin Auxiliary Field 9...  1 Unit....................        $249,000
                                          MacDill Air Force Base....  56 Units..................      $8,822,000
                                          Patrick Air Force Base....  Ancillary Facility........      $2,430,000
                                          Tyndall Air Force Base....  42 Units..................      $6,000,000

[[Page H9092]]

                                                                                                                
Georgia.................................  Robins Air Force Base.....  46 Units..................      $5,252,000
Louisiana...............................  Barksdale Air Force Base..  80 Units..................      $9,570,000
Massachusetts...........................  Hanscom Air Force Base....  32 Units..................      $5,100,000
Missouri................................  Whiteman Air Force Base...  68 Units..................      $9,600,000
Montana.................................  Malstrom Air Force Base...  98 Units..................     $15,688,000
Nevada..................................  Nellis Air Force Base.....  50 Units..................      $7,955,000
New Mexico..............................  Kirtland Air Force Base...  50 Units..................      $5,450,000
North Dakota............................  Grand Forks Air Force Base  66 Units..................      $7,784,000
                                          Minot Air Force Base......  46 Units..................      $8,740,000
Texas...................................  Lackland Air Force Base...  82 Units..................     $11,500,000
                                          Lackland Air Force Base...  Ancillary Facility........        $800,000
Washington..............................  McChord Air Force Base....  50 Units..................      $5,659,000
                                                                                                 ---------------
                                                                        Total:..................    $184,516,000
----------------------------------------------------------------------------------------------------------------


       (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 $9,590,000.

     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 $123,650,000.

     SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

       (a) In General.--Funds are hereby authorized to be 
     appropriated for fiscal years beginning after September 30, 
     1996, for military construction, land acquisition, and 
     military family housing functions of the Department of the 
     Air Force in the total amount of $1,894,594,000 as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2301(a), $603,834,000.
       (2) For military construction projects outside the United 
     States authorized by section 2301(b), $78,115,000.
       (3) For unspecified minor construction projects authorized 
     by section 2805 of title 10, United States Code, $9,328,000.
       (4) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $50,687,000.
       (5) For military housing functions:
       (A) For construction and acquisition, planning and design, 
     and improvement of military family housing and facilities, 
     $317,756,000.
       (B) For support of military family housing (including the 
     functions described in section 2833 of title 10, United 
     States Code), $829,474,000.
       (6) For the construction of a corrosion control facility at 
     Tinker Air Force Base, Oklahoma, authorized by section 
     2301(a) of the Military Construction Authorization Act for 
     Fiscal Year 1996 (division B of Public Law 104-106; 110 Stat. 
     530), $5,400,000.
       (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).

     SEC. 2305. ELIMINATION OF AUTHORITY TO CARRY OUT FISCAL YEAR 
                   1995 PROJECT, SPANGDAHLEM AIR FORCE BASE, 
                   GERMANY.

       (a) Elimination of Project.--The table in section 2301(b) 
     of the Military Construction Authorization Act for Fiscal 
     Year 1995 (division B of Public Law 103-337; 108 Stat. 3037) 
     is amended in the item relating to Spangdahlem Air Base, 
     Germany, by striking out ``$9,473,000'' in the amount column 
     and inserting in lieu thereof ``$7,373,000'', such reduction 
     corresponding to the project to upgrade the sewage and storm 
     water system at the installation.
       (b) Conforming Amendment to Authorization of 
     Appropriations.--Section 2304(a) of the Military Construction 
     Authorization Act for Fiscal Year 1995 (division B of Public 
     Law 103-337; 108 Stat. 3038) is amended--
       (1) in the matter preceding paragraph (1), by striking out 
     ``$1,601,602,000'' and inserting in lieu thereof 
     ``$1,599,502,000''; and
       (2) in paragraph (2), by striking out ``$38,273,000'' and 
     inserting in lieu thereof ``$36,173,000''.
                      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.  Military housing improvement program.
Sec. 2405.  Energy conservation projects.
Sec. 2406.  Authorization of appropriations, Defense Agencies.
Sec. 2407. Reduction in amounts authorized to be appropriated for 
              fiscal year 1996 Defense Agencies military construction, 
              land acquisition, and military family housing functions.

     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 
     2406(a)(1), and, in the case of the projects described in 
     paragraphs (2) and (3) of section 2406(b), other amounts 
     appropriated pursuant to authorizations enacted after this 
     Act for the projects, the Secretary of Defense may acquire 
     real property and carry out military construction projects 
     for the installations and locations inside the United States, 
     and in the amounts, set forth in the following table:

               Defense Agencies: Inside the United States               
------------------------------------------------------------------------
                                     Installation or                    
             Agency                      location             Amount    
------------------------------------------------------------------------
Chemical Demilitarization                                               
 Program.......................  Pueblo Chemical                        
                                  Activity, Colorado....    $179,000,000
Defense Finance & Accounting                                            
 Service.......................  Charleston, South                      
                                  Carolina..............      $6,200,000
                                 Fort Sill, Oklahoma....     $12,864,000
                                 Gentile Air Force                      
                                  Station, Ohio.........     $11,400,000
                                 Griffiss Air Force                     
                                  Base, New York........     $10,200,000
                                 Loring Air Force Base,                 
                                  Maine.................      $6,900,000
                                 Naval Training Center,                 
                                  Orlando, Florida......      $2,600,000
                                 Norton Air Force Base,                 
                                  California............     $13,800,000
                                 Offutt Air Force Base,                 
                                  Nebraska..............      $7,000,000
                                 Rock Island Arsenal,                   
                                  Illinois..............     $14,400,000
Defense Intelligence Agency....  Bolling Air Force Base,                
                                  District of Columbia..      $6,790,000
Defense Logistics Agency.......  Altus Air Force Base,                  
                                  Oklahoma..............      $3,200,000
                                 Andrews Air Force Base,                
                                  Maryland..............     $12,100,000
                                 Barksdale Air Force                    
                                  Base, Louisiana.......      $4,300,000
                                 Defense Construction                   
                                  Supply Center,                        
                                  Columbus, Ohio........        $600,000
                                 Defense Distribution,                  
                                  San Diego, California.     $15,700,000
                                 Elmendorf Air Force                    
                                  Base, Alaska..........     $21,000,000
                                 McConnell Air Force                    
                                  Base, Kansas..........      $2,200,000
                                 Naval Air Facility, El                 
                                  Centro, California....      $5,700,000
                                 Naval Air Station,                     
                                  Fallon, Nevada........      $2,100,000
                                 Naval Air Station,                     
                                  Oceana, Virginia......      $1,500,000

[[Page H9093]]

                                                                        
                                 Shaw Air Force Base,                   
                                  South Carolina........      $2,900,000
                                 Travis Air Force Base,                 
                                  California............     $15,200,000
Defense Medical Facility Office  Andrews Air Force Base,                
                                  Maryland..............     $15,500,000
                                 Charleston Air Force                   
                                  Base, South Carolina..      $1,800,000
                                 Fort Bliss, Texas......      $6,600,000
                                 Fort Bragg, North                      
                                  Carolina..............     $11,400,000
                                 Fort Hood, Texas.......      $1,950,000
                                 Marine Corps Base, Camp                
                                  Pendleton, California.      $3,300,000
                                 Maxwell Air Force Base,                
                                  Alabama...............     $25,000,000
                                 Naval Air Station, Key                 
                                  West, Florida.........     $15,200,000
                                 Naval Air Station,                     
                                  Norfolk, Virginia.....      $1,250,000
                                 Naval Air Station,                     
                                  Lemoore, California...     $38,000,000
Special Operations Command.....  Fort Bragg, North                      
                                  Carolina..............     $14,000,000
                                 Fort Campbell, Kentucky      $4,200,000
                                 MacDill Air Force Base,                
                                  Florida...............      $9,600,000
                                 Naval Amphibious Base,                 
                                  Coronado, California..      $7,700,000
                                 Naval Station, Ford                    
                                  Island, Pearl Harbor,                 
                                  Hawaii................     $12,800,000
                                                         ---------------
                                   Total................    $525,454,000
------------------------------------------------------------------------


       (b) Outside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2406(a)(2), the Secretary of Defense may acquire real 
     property and carry out military construction projects for the 
     installations and locations outside the United States, and in 
     the amounts, set forth in the following table:

               Defense Agencies: Outside the United States              
------------------------------------------------------------------------
                                     Installation or                    
             Agency                      location             Amount    
------------------------------------------------------------------------
Defense Logistics Agency.......  Moron Air Base, Spain..     $12,958,000
                                 Naval Air Station,                     
                                  Sigonella, Italy......      $6,100,000
Defense Medical Facility Office  Administrative Support                 
                                  Unit, Bahrain, Bahrain      $4,600,000
                                                         ---------------
                                   Total................     $23,658,000
------------------------------------------------------------------------

     SEC. 2402. MILITARY HOUSING PLANNING AND DESIGN.

       Using amounts appropriated pursuant to the authorization of 
     appropriation in section 2406(a)(14)(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 $500,000.

     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 2406(a)(14)(A), the Secretary of 
     Defense may improve existing military family housing units in 
     an amount not to exceed $3,871,000.

     SEC. 2404. MILITARY HOUSING IMPROVEMENT PROGRAM.

       (a) Availability of Funds for Credit to Family Housing 
     Improvement Fund.--(1) Of the amount authorized to be 
     appropriated pursuant to section 2406(a)(14)(C), $25,000,000 
     shall be available for credit to the Department of Defense 
     Family Housing Improvement Fund established by section 
     2883(a)(1) of title 10, United States Code.
       (2) Of the amount authorized to be appropriated pursuant to 
     section 2406(a)(14)(D), $5,000,000 shall be available for 
     credit to the Department of Defense Military Unaccompanied 
     Housing Improvement Fund established by section 2883(a)(2) of 
     such title.
       (b) Use of Funds.--(1) The Secretary of Defense may use 
     funds credited to the Department of Defense Family Housing 
     Improvement Fund under subsection (a)(1) to carry out any 
     activities authorized by subchapter IV of chapter 169 of such 
     title with respect to military family housing.
       (2) The Secretary of Defense may use funds credited to the 
     Department of Defense Military Unaccompanied Housing 
     Improvement Fund under subsection (a)(2) to carry out any 
     activities authorized by subchapter IV of chapter 169 of such 
     title with respect to military unaccompanied housing.

     SEC. 2405. ENERGY CONSERVATION PROJECTS.

       Using amounts appropriated pursuant to the authorization of 
     appropriations in section 2406(a)(12), the Secretary of 
     Defense may carry out energy conservation projects under 
     section 2865 of title 10, United States Code.

     SEC. 2406. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

       (a) In General.--Funds are hereby authorized to be 
     appropriated for fiscal years beginning after September 30, 
     1996, 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 $3,379,703,000 as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2401(a), $344,854,000.
       (2) For military construction projects outside the United 
     States authorized by section 2401(b), $23,658,000.
       (3) For military construction projects at Naval Hospital, 
     Portsmouth, Virginia, hospital replacement, authorized by 
     section 2401(a) of the Military Construction Authorization 
     Act for Fiscal Years 1990 and 1991 (division B of Public Law 
     101-189; 103 Stat. 1640), $24,000,000.
       (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 (division B of Public 
     Law 102-484; 106 Stat. 2599), $72,000,000.
       (5) For military construction projects at Fort Bragg, North 
     Carolina, hospital replacement, authorized by section 2401(a) 
     of the Military Construction Authorization Act for Fiscal 
     Year 1993 (106 Stat. 2599), $89,000,000.
       (6) For military construction projects at Pine Bluff 
     Arsenal, Arkansas, authorized by section 2401(a) of the 
     Military Construction Authorization Act for Fiscal Year 1995 
     (division B of the Public Law 103-337; 108 Stat. 3040), 
     $46,000,000.
       (7) For military construction projects at Umatilla Army 
     Depot, Oregon, authorized by section 2401(a) of the Military 
     Construction Authorization Act for Fiscal Year 1995 (108 
     Stat. 3040), $64,000,000.
       (8) 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 (division B of Public Law 104-106; 
     110 Stat. 535), $20,822,000.
       (9) For contingency construction projects of the Secretary 
     of Defense under section 2804 of title 10, United States 
     Code, $4,500,000.
       (10) For unspecified minor construction projects under 
     section 2805 of title 10, United States Code, $21,874,000.
       (11) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $12,239,000.
       (12) For energy conservation projects under section 2865 of 
     title 10, United States Code, $47,765,000.
       (13) 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), $2,507,476,000.
       (14) For military family housing functions:
       (A) For improvement and planning of military family housing 
     and facilities, $4,371,000.
       (B) For support of military housing (including functions 
     described in section 2833 of title 10, United States Code), 
     $30,963,000, of which not more than $25,637,000 may be 
     obligated or expended for the leasing of military family 
     housing units worldwide.
       (C) For credit to the Department of Defense Family Housing 
     Improvement Fund as authorized by section 2404(a)(1) of this 
     Act, $25,000,000.

[[Page H9094]]

       (D) For credit to the Department of Defense Military 
     Unaccompanied Housing Improvement Fund as authorized by 
     section 2404(a)(2) of this Act, $5,000,000.
       (E) For the Homeowners Assistance Program as authorized by 
     section 2832 of title 10, United States Code, $36,181,000, to 
     remain available until expended.
       (b) Limitation on Total Cost of Construction Projects.--
     Notwithstanding the cost variation authorized by section 2853 
     of title 10, United States Code, and any other cost 
     variations authorized by law, the total cost of all projects 
     carried out under section 2401 of this Act may not exceed--
       (1) the total amount authorized to be appropriated under 
     paragraphs (1) and (2) of subsection (a);
       (2) $179,000,000 (the balance of the amount authorized 
     under section 2401(a) of this Act for the construction of a 
     chemical demilitarization facility at Pueblo Army Depot, 
     Colorado); and
       (3) $1,600,000 (the balance of the amount authorized under 
     section 2401(a) of this Act for the construction of a 
     replacement facility for the medical and dental clinic, Key 
     West Naval Air Station, Florida).

     SEC. 2407. REDUCTION IN AMOUNTS AUTHORIZED TO BE APPROPRIATED 
                   FOR FISCAL YEAR 1996 DEFENSE AGENCIES MILITARY 
                   CONSTRUCTION, LAND ACQUISITION, AND MILITARY 
                   FAMILY HOUSING FUNCTIONS.

       Section 2405 of the Military Construction Authorization Act 
     for Fiscal Year 1996 (division B of Public Law 104-106; 110 
     Stat. 537) is amended by adding at the end the following new 
     subsection:
       ``(c) Adjustment.--The total amount authorized to be 
     appropriated pursuant to paragraphs (1) through (11) of 
     subsection (a) is the sum of the amounts authorized to be 
     appropriated in such paragraphs, reduced by $7,000,000, which 
     represents the combination of project savings resulting from 
     favorable bids, reduced overhead costs, and cancellations due 
     to force structure changes.''.
   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                PROGRAM
Sec. 2501.  Authorized NATO construction and land acquisition projects.
Sec. 2502.  Authorization of appropriations, NATO.

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

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

     SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.

       Funds are hereby authorized to be appropriated for fiscal 
     years beginning after September 30, 1996, 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 Security 
     Investment program as authorized by section 2501, in the 
     amount of $172,000,000.
            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES
Sec. 2601. Authorized Guard and Reserve construction and land 
              acquisition projects.
Sec. 2602. Authorization and funding for construction and improvement 
              of Naval Reserve Centers.
Sec. 2603. Upgrade Air National Guard facilities, Bangor International 
              Airport, Maine.

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

       There are authorized to be appropriated for fiscal years 
     beginning after September 30, 1996, 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, 
     $59,194,000; and
       (B) for the Army Reserve, $55,543,000.
       (2) For the Department of the Navy, for the Naval and 
     Marine Corps Reserve, $32,779,000.
       (3) For the Department of the Air Force--
       (A) for the Air National Guard of the United States, 
     $188,505,000; and
       (B) for the Air Force Reserve, $52,805,000.

     SEC. 2602. AUTHORIZATION AND FUNDING FOR CONSTRUCTION AND 
                   IMPROVEMENT OF NAVAL RESERVE CENTERS.

       (a) Army Reserve Centers.--Using amounts appropriated under 
     the heading ``Military Construction, Naval Reserve'' in the 
     Military Construction Appropriations Act, 1995 (Public Law 
     103-307; 108 Stat. 1661), for the construction of a Naval 
     Reserve Center in Seattle, Washington, the Secretary of the 
     Army may carry out a military construction project for the 
     construction of an Army Reserve Center at Fort Lawton, 
     Washington, in the total amount of $5,200,000, of which 
     $700,000 may be used for program and design activities 
     relating to such construction.
       (b) Naval Reserve Facilities.--Using amounts appropriated 
     under the heading ``Military Construction, Naval Reserve'' in 
     the Military Construction Appropriations Act, 1995 (Public 
     Law 103-307; 108 Stat. 1661), for the construction of a Naval 
     Reserve Center in Seattle, Washington, the Secretary of the 
     Navy may carry out--
       (1) a military construction project for the construction of 
     an addition to the Naval Reserve Center in Tacoma, 
     Washington, in the total amount of $4,200,000;
       (2) unspecified minor construction at Naval Reserve 
     facilities in the total amount of $500,000; and
       (3) planning and design activities with respect to 
     improvements at Naval Reserve facilities in the total amount 
     of $500,000.

     SEC. 2603. UPGRADE AIR NATIONAL GUARD FACILITIES, BANGOR 
                   INTERNATIONAL AIRPORT, MAINE.

       (a) Project Authorized.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2601(3)(A) and amounts appropriated pursuant to 
     authorizations of appropriations enacted after the date of 
     the enactment of this Act, the Secretary of the Air Force may 
     carry out a construction project to upgrade Air National 
     Guard base and support facilities at Bangor International 
     Airport, Maine. The Secretary may contract for architectural 
     and engineering services and construction design services in 
     connection with the construction project.
       (b) Limitation on Total Cost of Project.--The total cost of 
     the construction project authorized by subsection (a) may not 
     exceed $13,000,000.
       (c) Fiscal Year 1997 Funding.--Of the amount authorized to 
     be appropriated in section 2601(3)(A), $7,000,000 shall be 
     available to carry out the construction project authorized by 
     subsection (a).
        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 1994 
              projects.
Sec. 2703. Extension of authorizations of certain fiscal year 1993 
              projects.
Sec. 2704. Extension of authorizations of certain fiscal year 1992 
              projects.
Sec. 2705. Effective date.

     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, 1999; or
       (2) the date of the enactment of an Act authorizing funds 
     for military construction for fiscal year 2000.
       (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, 1999; or
       (2) the date of the enactment of an Act authorizing funds 
     for fiscal year 2000 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 
                   1994 PROJECTS.

       (a) Extensions.--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 tables in 
     subsection (b), as provided in section 2101, 2102, 2201, 
     2301, or 2601 of that Act, shall remain in effect until 
     October 1, 1997, or the date of the enactment of an Act 
     authorizing funds for military construction for fiscal year 
     1998, whichever is later.
       (b) Tables.--The tables referred to in subsection (a) are 
     as follows:

                                 Army: Extension of 1994 Project Authorizations                                 
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or location             Project               Amount    
----------------------------------------------------------------------------------------------------------------
New Jersey..............................  Picatinny Arsenal.........  Advance Warhead                           
                                                                       Development Facility.....      $4,400,000
North Carolina..........................  Fort Bragg................  Land Acquisition..........     $15,000,000

[[Page H9095]]

                                                                                                                
Wisconsin...............................  Fort McCoy................  Family Housing                            
                                                                       Construction (16 units)..      $2,950,000
----------------------------------------------------------------------------------------------------------------




                                 Navy: Extension of 1994 Project Authorizations                                 
----------------------------------------------------------------------------------------------------------------
            State or Location              Installation or location             Project               Amount    
----------------------------------------------------------------------------------------------------------------
California..............................  Camp Pendleton Marine                                                 
                                           Corps Base...............  Sewage Facility...........      $7,930,000
Connecticut.............................  New London Naval Submarine                                            
                                           Base.....................  Hazardous Waste Transfer                  
                                                                       Facility.................      $1,450,000
New Jersey..............................  Earle Naval Weapons                                                   
                                           Station..................  Explosives Holding Yard...      $1,290,000
Virginia................................  Oceana Naval Air Station..  Jet Engine Test Cell                      
                                                                       Replacement..............      $5,300,000
Various Locations.......................  Various Locations.........  Land Acquisition Inside                   
                                                                       the United States........        $540,000
Various Locations.......................  Various Locations.........  Land Acquisition Outside                  
                                                                       the United States........        $800,000
----------------------------------------------------------------------------------------------------------------



                               Air Force: Extension of 1994 Project Authorizations                              
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or Location             Project               Amount    
----------------------------------------------------------------------------------------------------------------
Alaska..................................  Eielson Air Force Base....  Upgrade Water Treatment                   
                                                                       Plant....................      $3,750,000
                                          Elmendorf Air Force Base..  Corrosion Control Facility      $5,975,000
California..............................  Beale Air Force Base......  Educational Center........      $3,150,000
Florida.................................  Tyndall Air Force Base....  Base Supply Logistics                     
                                                                       Center...................      $2,600,000
Mississippi.............................  Keesler Air Force Base....  Upgrade Student Dormitory.      $4,500,000
North Carolina..........................  Pope Air Force Base.......  Add To and Alter                          
                                                                       Dormitories..............      $4,300,000
Virginia................................  Langley Air Force Base....  Fire Station..............      $3,850,000
----------------------------------------------------------------------------------------------------------------



                          Army National Guard: Extension of 1994 Project Authorizations                         
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or Location             Project               Amount    
----------------------------------------------------------------------------------------------------------------
Alabama.................................  Birmingham................  Aviation Support Facility.      $4,907,000
Arizona.................................  Marana....................  Organizational Maintenance                
                                                                       Shop.....................        $553,000
                                          Marana....................  Dormitory/Dining Facility.      $2,919,000
California..............................  Fresno....................  Organizational Maintenance                
                                                                       Shop Modification........        $905,000
                                          Van Nuys..................  Armory Addition...........      $6,518,000
New Mexico..............................  White Sands Missile Range.  Organizational Maintenance                
                                                                       Shop.....................      $2,940,000
                                                                      Tactical Site.............      $1,995,000
                                                                      MATES.....................      $3,570,000
Pennsylvania............................  Indiantown Gap............  State Military Building...      $9,200,000
                                          Johnstown.................  Armory Addition/Flight                    
                                                                       Facility.................      $5,004,000
                                          Johnstown.................  Armory....................      $3,000,000
South Carolina..........................  Summerville...............  Organizational Maintenance                
                                                                       Shop.....................        $834,000
----------------------------------------------------------------------------------------------------------------

     SEC. 2703. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 
                   1993 PROJECTS.

       (a) Extensions.--Notwithstanding section 2701 of the 
     Military Construction Authorization Act for Fiscal Year 1993 
     (division B of Public Law 102-484; 106 Stat. 2602), 
     authorizations for the projects set forth in the tables in 
     subsection (b), as provided in section 2101, 2301, or 1601 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), shall remain in 
     effect until October 1, 1997, or the date of the enactment of 
     an Act authorizing funds for military construction for fiscal 
     year 1998, whichever is later.
       (b) Tables.--The tables referred to in subsection (a) are 
     as follows:

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


                               Air Force: Extension of 1993 Project Authorization                               
----------------------------------------------------------------------------------------------------------------
                 Country                   Installation or location             Project               Amount    
----------------------------------------------------------------------------------------------------------------
Portugal................................  Lajes Field...............  Water Wells...............        $865,000
----------------------------------------------------------------------------------------------------------------


[[Page H9096]]



                          Army National Guard: Extension of 1993 Project Authorizations                         
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or Location             Project               Amount    
----------------------------------------------------------------------------------------------------------------
Alabama.................................  Tuscaloosa................  Armory....................      $2,273,000
                                          Union Springs.............  Armory....................        $813,000
New Mexico..............................  Clayton...................  Armory....................      $1,400,000
----------------------------------------------------------------------------------------------------------------

     SEC. 2704. 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 2201 of that Act and 
     extended by section 2702(a) of the Military Construction 
     Authorization Act for Fiscal Year 1995 (division B of Public 
     Law 103-337; 108 Stat. 3047) and section 2703(a) of the 
     Military Construction Authorization Act for Fiscal Year 1996 
     (division B of Public Law 104-106; 110 Stat. 543), shall 
     remain in effect until October 1, 1997, or the date of the 
     enactment of an Act authorizing funds for military 
     construction for fiscal year 1998, 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 Support                 
                                                                       Facility.................      $3,600,000
                                          Umatilla Army Depot.......  Ammunition                                
                                                                       Demilitarization                         
                                                                       Utilities................      $7,500,000
----------------------------------------------------------------------------------------------------------------

     SEC. 2705. EFFECTIVE DATE.

       Titles XXI, XXII, XXIII, XXIV, XXV, and XXVI shall take 
     effect on the later of--
       (1) October 1, 1996; 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 certain thresholds for unspecified minor 
              construction projects.
Sec. 2802. Redesignation of North Atlantic Treaty Organization 
              Infrastructure program.
Sec. 2803. Improvements to family housing units.
Sec. 2804. Availability of funds for planning, execution, and 
              administration of contracts for family housing and 
              unaccompanied housing.

            Subtitle B--Defense Base Closure and Realignment

Sec. 2811. Restoration of authority for certain intragovernment 
              transfers under 1988 base closure law.
Sec. 2812. Contracting for certain services at facilities remaining on 
              closed installations.
Sec. 2813. Authority to compensate owners of manufactured housing.
Sec. 2814. Additional purpose for which adjustment and diversification 
              assistance is authorized.
Sec. 2815. Payment of stipulated penalties assessed under CERCLA in 
              connection with Loring Air Force Base, Maine.
Sec. 2816. Plan for utilization, reutilization, or disposal of 
              Mississippi Army Ammunition Plant.

                      Subtitle C--Land Conveyances

                        Part I--Army Conveyances

Sec. 2821. Transfer of lands, Arlington National Cemetery, Arlington, 
              Virginia.
Sec. 2822. Land transfer, Fort Sill, Oklahoma.
Sec. 2823. Land conveyance, Army Reserve Center, Rushville, Indiana.
Sec. 2824. Land conveyance, Army Reserve Center, Anderson, South 
              Carolina.
Sec. 2825. Land conveyance, Army Reserve Center, Montpelier, Vermont.
Sec. 2826. Land conveyance, Crafts Brothers Reserve Training Center, 
              Manchester, New Hampshire.
Sec. 2827. Land conveyance, Pine Bluff Arsenal, Arkansas.
Sec. 2828. Reaffirmation of land conveyances, Fort Sheridan, Illinois.

                       Part II--Navy Conveyances

Sec. 2831. Land transfer, Potomac Annex, District of Columbia.
Sec. 2832. Land exchange, St. Helena Annex, Norfolk Naval Shipyard, 
              Virginia.
Sec. 2833. Land conveyance, Calverton Pine Barrens, Naval Weapons 
              Industrial Reserve Plant, Calverton, New York.
Sec. 2834. Land conveyance, former naval reserve facility, Lewes, 
              Delaware.
Sec. 2835. Modification of land conveyance authority, Naval Reserve 
              Center, Seattle, Washington.
Sec. 2836. Release of condition on reconveyance of transferred land, 
              Guam.
Sec. 2837. Lease to facilitate construction of reserve center, Naval 
              Air Station, Meridian, Mississippi.

                    Part III--Air Force Conveyances

Sec. 2841. Land conveyance, Radar Bomb Scoring Site, Belle Fourche, 
              South Dakota.
Sec. 2842. Conveyance of primate research complex and Air Force-owned 
              chimpanzees, Holloman Air Force Base, New Mexico.

                       Part IV--Other Conveyances

Sec. 2851. Land conveyance, Tatum Salt Dome Test Site, Mississippi.
Sec. 2852. Land conveyance, William Langer Jewel Bearing Plant, Rolla, 
              North Dakota.
Sec. 2853. Land conveyance, Air Force Plant No. 85, Columbus, Ohio.
Sec. 2854. Modification of boundaries of White Sands National Monument 
              and White Sands Missile Range.

                       Subtitle D--Other Matters

Sec. 2861. Authority to grant easements for rights-of-way.
Sec. 2862. Authority to enter into cooperative agreements for the 
              management of cultural resources on military 
              installations.
Sec. 2863. Demonstration project for installation and operation of 
              electric power distribution system at Youngstown Air 
              Reserve Station, Ohio.
Sec. 2864. Renovation of the Pentagon reservation.
Sec. 2865. Plan for repairs and stabilization of the historic district 
              at the Forest Glen Annex of Walter Reed Medical Center, 
              Maryland.
Sec. 2866. Naming of range at Camp Shelby, Mississippi.
Sec. 2867. Designation of Michael O'Callaghan military hospital.
Sec. 2868. Naming of building at the Uniformed Services University of 
              the Health Sciences.
 Subtitle A--Military Construction Program and Military Family Housing 
                                Changes

     SEC. 2801. INCREASE IN CERTAIN THRESHOLDS FOR UNSPECIFIED 
                   MINOR CONSTRUCTION PROJECTS.

       (a) O&M Funding for Projects.--Section 2805(c)(1)(B) of 
     title 10, United States Code, is amended by striking out 
     ``$300,000'' and inserting in lieu thereof ``$500,000''.
       (b) O&M Funding for Reserve Component Facilities.--
     Subsection (b) of section 18233a of such title is amended by 
     striking out ``$300,000'' and inserting in lieu thereof 
     ``$500,000''.
       (c) Notification for Expenditures and Contributions for 
     Reserve Component Facilities.--Subsection (a)(1) of such 
     section 18233a is amended by striking out ``$400,000'' and 
     inserting in lieu thereof ``$1,500,000''.

     SEC. 2802. REDESIGNATION OF NORTH ATLANTIC TREATY 
                   ORGANIZATION INFRASTRUCTURE PROGRAM.

       (a) Redesignation.--Subsection (b) of section 2806 of title 
     10, United States Code, is amended by striking out ``North 
     Atlantic Treaty Organization Infrastructure program'' and 
     inserting in lieu thereof ``North Atlantic Treaty 
     Organization Security Investment program''.
       (b) References.--Any reference to the North Atlantic Treaty 
     Organization Infrastructure program in any Federal law, 
     Executive order, regulation, delegation of authority, or 
     document of or pertaining to the Department of Defense shall 
     be deemed to refer to the North Atlantic Treaty Organization 
     Security Investment program.
       (c) Clerical Amendments.--(1) The section heading of such 
     section is amended to read as follows:

     ``Sec. 2806. Contributions for North Atlantic Treaty 
       Organizations Security Investment''.

       (2) The table of sections at the beginning of subchapter I 
     of chapter 169 of title 10, United States Code, is amended by 
     striking out the item relating to section 2806 and inserting 
     in lieu thereof the following new item:
``2806. Contributions for North Atlantic Treaty Organizations Security 
              Investment.''.

[[Page H9097]]

       (d) Conforming Amendments.--(1) Section 2861(b)(3) of title 
     10, United States Code, is amended by striking out ``North 
     Atlantic Treaty Organization Infrastructure program'' and 
     inserting in lieu thereof ``North Atlantic Treaty 
     Organization Security Investment program''.
       (2) Section 21(h)(1)(B) of the Arms Export Control Act (22 
     U.S.C. 2761(h)(1)(B)) is amended by striking out ``North 
     Atlantic Treaty Organization Infrastructure Program'' and 
     inserting in lieu thereof ``North Atlantic Treaty 
     Organization Security Investment program''.

     SEC. 2803. IMPROVEMENTS TO FAMILY HOUSING UNITS.

       (a) Authorized Improvements.--Subsection (a)(2) of section 
     2825 of title 10, United States Code, is amended--
       (1) by inserting ``major'' before ``maintenance''; and
       (2) by adding at the end the following: ``Such term does 
     not include day-to-day maintenance and repair work.''.
       (b) Limitation.--Subsection (b) of such section is amended 
     by striking out paragraph (2) and inserting in lieu thereof 
     the following new paragraph:
       ``(2) In determining the applicability of the limitation 
     contained in paragraph (1), the Secretary concerned shall 
     include as part of the cost of the improvement of the unit or 
     units concerned the following:
       ``(A) The cost of major maintenance or repair work 
     undertaken in connection with the improvement.
       ``(B) Any cost, other than the cost of activities 
     undertaken beyond a distance of five feet from the unit or 
     units concerned, in connection with--
       ``(i) the furnishing of electricity, gas, water, and sewage 
     disposal;
       ``(ii) the construction or repair of roads, drives, and 
     walks; and
       ``(iii) grading and drainage work.''.

     SEC. 2804. AVAILABILITY OF FUNDS FOR PLANNING, EXECUTION, AND 
                   ADMINISTRATION OF CONTRACTS FOR FAMILY HOUSING 
                   AND UNACCOMPANIED HOUSING.

       (a) Contracts for Family Housing.--Paragraph (1) of section 
     2883(d) of title 10, United States Code, is amended by adding 
     at the end the following: ``The Secretary may also use for 
     expenses of activities required in connection with the 
     planning, execution, and administration of such contracts 
     funds that are otherwise available to the Department of 
     Defense for such types of expenses.''.
       (b) Contracts for Unaccompanied Housing.--Paragraph (2) of 
     such section is amended by adding at the end the following: 
     ``The Secretary may also use for expenses of activities 
     required in connection with the planning, execution, and 
     administration of such contracts funds that are otherwise 
     available to the Department of Defense for such types of 
     expenses.''.
            Subtitle B--Defense Base Closure and Realignment

     SEC. 2811. RESTORATION OF AUTHORITY FOR CERTAIN 
                   INTRAGOVERNMENT TRANSFERS UNDER 1988 BASE 
                   CLOSURE LAW.

       Section 204(b)(2) of the Defense Authorization Amendments 
     and Base Closure and Realignment Act (Public Law 100-526; 10 
     U.S.C. 2687 note), is amended--
       (1) by redesignating subparagraphs (D) and (E) as 
     subparagraphs (E) and (F), respectively; and
       (2) by inserting after subparagraph (C) the following new 
     subparagraph (D):
       ``(D) The Secretary of Defense may transfer real property 
     or facilities located at a military installation to be closed 
     or realigned under this title, with or without reimbursement, 
     to a military department or other entity (including a 
     nonappropriated fund instrumentality) within the Department 
     of Defense or the Coast Guard.''.

     SEC. 2812. CONTRACTING FOR CERTAIN SERVICES AT FACILITIES 
                   REMAINING ON CLOSED INSTALLATIONS.

       (a) 1988 Law.--Section 204(b)(8)(A) of the Defense 
     Authorization Amendments and Base Closure and Realignment Act 
     (Public Law 100-526; 10 U.S.C. 2687 note) is amended by 
     inserting ``, or at facilities not yet transferred or 
     otherwise disposed of in the case of installations closed 
     under this title,'' after ``under this title''.
       (b) 1990 Law.--Section 2905(b)(8)(A) of the Defense Base 
     Closure and Realignment Act of 1990 (part A of title XXIX of 
     Public Law 101-510; 10 U.S.C. 2687 note) is amended by 
     inserting ``, or at facilities not yet transferred or 
     otherwise disposed of in the case of installations closed 
     under this part,'' after ``under this part''.

     SEC. 2813. AUTHORITY TO COMPENSATE OWNERS OF MANUFACTURED 
                   HOUSING.

       (a) 1988 Law.--Section 204 of the Defense Authorization 
     Amendments and Base Closure and Realignment Act (Public Law 
     100-526; 10 U.S.C. 2687 note), is amended by adding at the 
     end the following new subsection:
       ``(f) Acquisition of Manufactured Housing.--(1) In closing 
     or realigning any military installation under this title, the 
     Secretary may purchase any or all right, title, and interest 
     of a member of the Armed Forces and any spouse of the member 
     in manufactured housing located at a manufactured housing 
     park established at an installation closed or realigned under 
     this title, or make a payment to the member to relocate the 
     manufactured housing to a suitable new site, if the Secretary 
     determines that--
       ``(A) it is in the best interests of the Federal Government 
     to eliminate or relocate the manufactured housing park; and
       ``(B) the elimination or relocation of the manufactured 
     housing park would result in an unreasonable financial 
     hardship to the owners of the manufactured housing.
       ``(2) Any payment made under this subsection shall not 
     exceed 90 percent of the purchase price of the manufactured 
     housing, as paid by the member or any spouse of the member, 
     plus the cost of any permanent improvements subsequently made 
     to the manufactured housing by the member or spouse of the 
     member.
       ``(3) The Secretary shall dispose of manufactured housing 
     acquired under this subsection through resale, donation, 
     trade or otherwise within one year of acquisition.''.
       (b) 1990 Law.--Section 2905 of the Defense Base Closure and 
     Realignment Act of 1990 (part A of title XXIX of Public Law 
     101-510; 10 U.S.C. 2687 note), is amended by adding at the 
     end the following new subsection:
       ``(g) Acquisition of Manufactured Housing.--(1) In closing 
     or realigning any military installation under this part, the 
     Secretary may purchase any or all right, title, and interest 
     of a member of the Armed Forces and any spouse of the member 
     in manufactured housing located at a manufactured housing 
     park established at an installation closed or realigned under 
     this part, or make a payment to the member to relocate the 
     manufactured housing to a suitable new site, if the Secretary 
     determines that--
       ``(A) it is in the best interests of the Federal Government 
     to eliminate or relocate the manufactured housing park; and
       ``(B) the elimination or relocation of the manufactured 
     housing park would result in an unreasonable financial 
     hardship to the owners of the manufactured housing.
       ``(2) Any payment made under this subsection shall not 
     exceed 90 percent of the purchase price of the manufactured 
     housing, as paid by the member or any spouse of the member, 
     plus the cost of any permanent improvements subsequently made 
     to the manufactured housing by the member or spouse of the 
     member.
       ``(3) The Secretary shall dispose of manufactured housing 
     acquired under this subsection through resale, donation, 
     trade or otherwise within one year of acquisition.''.

     SEC. 2814. ADDITIONAL PURPOSE FOR WHICH ADJUSTMENT AND 
                   DIVERSIFICATION ASSISTANCE IS AUTHORIZED.

       Section 2391(b)(5) of title 10, United States Code, is 
     amended--
       (1) by inserting ``(A)'' after ``(5)''; and
       (2) by adding at the end the following new subparagraph:
       ``(B) The Secretary of Defense may also make grants, 
     conclude cooperative agreements, and supplement other Federal 
     funds in order to assist a State in enhancing its 
     capacities--
       ``(i) to assist communities, businesses, and workers 
     adversely affected by an action described in paragraph (1);
       ``(ii) to support local adjustment and diversification 
     initiatives; and
       ``(iii) to stimulate cooperation between statewide and 
     local adjustment and diversification efforts.''.

     SEC. 2815. PAYMENT OF STIPULATED PENALTIES ASSESSED UNDER 
                   CERCLA IN CONNECTION WITH LORING AIR FORCE 
                   BASE, MAINE.

       From amounts in the Department of Defense Base Closure 
     Account 1990 established by section 2906(a)(1) of the Defense 
     Base Closure and Realignment Act of 1990 (part A of title 
     XXIX of Public Law 101-510; 10 U.S.C. 2687 note), the 
     Secretary of Defense may expend not more than $50,000 to pay 
     stipulated civil penalties assessed under the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9601 et seq.) against Loring Air Force Base, 
     Maine.

     SEC. 2816. PLAN FOR UTILIZATION, REUTILIZATION, OR DISPOSAL 
                   OF MISSISSIPPI ARMY AMMUNITION PLANT.

       Not later than 180 days after the date of the enactment of 
     this Act, the Secretary of the Army shall submit to the 
     congressional defense committees a plan for the utilization, 
     reutilization, or disposal of the Mississippi Army Ammunition 
     Plant, Hancock County, Mississippi.
                      Subtitle C--Land Conveyances

                        PART I--ARMY CONVEYANCES

     SEC. 2821. TRANSFER OF LANDS, ARLINGTON NATIONAL CEMETERY, 
                   ARLINGTON, VIRGINIA.

       (a) Requirement for Secretary of Interior To Transfer 
     Certain Section  29 Lands.--(1) Subject to paragraph (2), the 
     Secretary of the Interior shall transfer to the Secretary of 
     the Army administrative jurisdiction over the following lands 
     located in section 29 of the National Park System at 
     Arlington National Cemetery, Virginia:
       (A) The lands known as the Arlington National Cemetery 
     Interment Zone.
       (B) All lands in the Robert E. Lee Memorial Preservation 
     Zone, other than those lands in the Preservation Zone that 
     the Secretary of the Interior determines must be retained 
     because of the historical significance of such lands or for 
     the maintenance of nearby lands or facilities.
       (2)(A) The Secretary of the Interior may not make the 
     transfer referred to in paragraph (1)(B) until 60 days after 
     the date on which the Secretary submits to the Committee on 
     Armed Services of the Senate and the Committee on National 
     Security of the House of Representatives--
       (i) a summary of the document entitled ``Cultural Landscape 
     and Archaeological Study, Section 29, Arlington House, The 
     Robert E. Lee Memorial'';

[[Page H9098]]

       (ii) a summary of any environmental analysis required with 
     respect to the transfer under the National Environmental 
     Policy Act of 1969 (42 U.S.C. 4321 et seq.);
       (iii) an accounting of the effect of the transfer that 
     satisfies the requirements of section 106 of the National 
     Historic Preservation Act (16 U.S.C. 470f); and
       (iv) the proposal of the Secretary and the Secretary of the 
     Army setting forth the lands to be transferred and the 
     general manner in which the Secretary of the Army will 
     develop such lands after transfer.
       (B) The Secretary of the Interior shall submit the 
     information required under subparagraph (A) not later than 
     October 31, 1997.
       (3) The transfer of lands under paragraph (1) shall be 
     carried out in accordance with the Interagency Agreement 
     Between the Department of the Interior, the National Park 
     Service, and the Department of the Army, dated February 22, 
     1995.
       (4) The exact acreage and legal descriptions of the lands 
     to be transferred under paragraph (1) shall be determined by 
     surveys satisfactory to the Secretary of the Interior and the 
     Secretary of the Army.
       (b) Requirement for Additional Transfers.--(1) The 
     Secretary of the Interior shall transfer to the Secretary of 
     the Army administrative jurisdiction over a parcel of land, 
     including any improvements thereon, consisting of 
     approximately 2.43 acres, located in the Memorial Drive 
     entrance area to Arlington National Cemetery.
       (2)(A) The Secretary of the Army shall transfer to the 
     Secretary of the Interior administrative jurisdiction over a 
     parcel of land, including any improvements thereon, 
     consisting of approximately 0.17 acres, located at Arlington 
     National Cemetery, and known as the Old Administrative 
     Building site. The site is part of the original reservation 
     of Arlington National Cemetery.
       (B) In connection with the transfer under subparagraph (A), 
     the Secretary of the Army shall grant to the Secretary of the 
     Interior a perpetual right of ingress and egress to the 
     parcel transferred under that subparagraph.
       (3) The exact acreage and legal descriptions of the lands 
     to be transferred pursuant to this subsection shall be 
     determined by surveys satisfactory to the Secretary of the 
     Interior and the Secretary of the Army. The costs of such 
     surveys shall be borne by the Secretary of the Army.

     SEC. 2822. LAND TRANSFER, FORT SILL, OKLAHOMA.

       (a) Transfer of Land for National Cemetery.--The Secretary 
     of the Army may transfer, without reimbursement, to the 
     administrative jurisdiction of the Secretary of Veterans 
     Affairs a parcel of real property, including any improvements 
     thereon, consisting of approximately 400 acres and comprising 
     a portion of Fort Sill, Oklahoma.
       (b) Use of Property.--The Secretary of Veterans Affairs 
     shall use the real property transferred under subsection (a) 
     as a national cemetery under chapter 24 of title 38, United 
     States Code.
       (c) Return of Unused Portion.--If the Secretary of Veterans 
     Affairs determines that any portion of the real property 
     transferred under subsection (a) is not needed for use as a 
     national cemetery, the Secretary shall return such portion to 
     the administrative jurisdiction of the Secretary of the Army.
       (d) Legal Description.--The exact acreage and legal 
     description of the real property to be transferred under this 
     section shall be determined by a survey satisfactory to the 
     Secretary of the Army. The cost of the survey shall be borne 
     by the Secretary of Veterans Affairs.

     SEC. 2823. LAND CONVEYANCE, ARMY RESERVE CENTER, RUSHVILLE, 
                   INDIANA.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey, without consideration, to the City of Rushville, 
     Indiana (in this section referred to as the ``City''), all 
     right, title, and interest of the United States in and to a 
     parcel of excess real property, including improvements 
     thereon, that is located in Rushville, Indiana, and contains 
     the Rushville Army Reserve Center.
       (b) Condition of Conveyance.--The conveyance authorized 
     under subsection (a) shall be subject to the condition that 
     the City retain the conveyed property for the use and benefit 
     of the Rushville Police Department.
       (c) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary. The cost of the survey shall be borne by 
     the City.
       (d) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2824. LAND CONVEYANCE, ARMY RESERVE CENTER, ANDERSON, 
                   SOUTH CAROLINA.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey, without consideration, to the County of Anderson, 
     South Carolina (in this section referred to as the 
     ``County''), all right, title, and interest of the United 
     States in and to a parcel of real property, including 
     improvements thereon, that is located at 805 East Whitner 
     Street in Anderson, South Carolina, and contains an Army 
     Reserve Center.
       (b) Condition of Conveyance.--The conveyance authorized 
     under subsection (a) shall be subject to the condition that 
     the County retain the conveyed property for the use and 
     benefit of the Anderson County Department of Education.
       (c) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary. The cost of the survey shall be borne by 
     the County.
       (d) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2825. LAND CONVEYANCE, ARMY RESERVE CENTER, MONTPELIER, 
                   VERMONT.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey, without consideration, to the City of Montpelier, 
     Vermont (in this section referred to as the ``City''), all 
     right, title, and interest of the United States in and to a 
     parcel of real property, including improvements thereon, 
     consisting of approximately 4.3 acres and located on Route 2 
     in Montpelier, Vermont, the site of the Army Reserve Center, 
     Montpelier, Vermont.
       (b) Condition.--The conveyance authorized under subsection 
     (a) shall be subject to the condition that the City agree to 
     lease to the Civil Air Patrol, at no rental charge to the 
     Civil Air Patrol, the portion of the real property and 
     improvements located on the parcel to be conveyed that the 
     Civil Air Patrol leases from the Secretary as of the date of 
     the enactment of this Act.
       (c) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary. The cost of the survey shall be borne by 
     the City.
       (d) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under this section as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2826. LAND CONVEYANCE, CRAFTS BROTHERS RESERVE TRAINING 
                   CENTER, MANCHESTER, NEW HAMPSHIRE.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey, without consideration, to Saint Anselm College, 
     Manchester, New Hampshire, all right, title, and interest of 
     the United States in and to a parcel of real property, 
     including improvements thereon, consisting of approximately 
     3.5 acres and located on Rockland Avenue in Manchester, New 
     Hampshire, the site of the Crafts Brothers Reserve Training 
     Center.
       (b) Requirement Relating to Conveyance.--The Secretary may 
     not make the conveyance authorized by subsection (a) until 
     the Army Reserve units currently housed at the Crafts 
     Brothers Reserve Training Center are relocated to the Joint 
     Service Reserve Center to be constructed at the Manchester 
     Airport, New Hampshire.
       (c) Requirement for Federal Screening of Property.--The 
     Secretary may not carry out the conveyance of property 
     authorized by subsection (a) unless the Secretary determines 
     that no department or agency of the Federal Government will 
     accept the transfer of the property.
       (d) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under this section as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2827. LAND CONVEYANCE, PINE BLUFF ARSENAL, ARKANSAS.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey, without consideration, to the Economic Development 
     Alliance of Jefferson County, Arkansas (in this section 
     referred to as the ``Alliance''), all right, title, and 
     interest of the United States in and to a parcel of real 
     property, together with any improvements thereon, consisting 
     of approximately 1,500 acres and comprising a portion of the 
     Pine Bluff Arsenal, Arkansas.
       (b) Requirements Relating to Conveyance.--The Secretary may 
     not carry out the conveyance of property authorized under 
     subsection (a) until--
       (1) the completion by the Secretary of any environmental 
     restoration and remediation that is required with the respect 
     to the property under applicable law;
       (2) the Secretary secures all permits required under law 
     applicable regarding the conduct of the proposed chemical 
     demilitarization mission at the arsenal; and
       (3) the Secretary of Defense submits to the Committee on 
     Armed Services of the Senate and the Committee on National 
     Security of the House of Representatives a certification that 
     the conveyance will not adversely affect the ability of the 
     Department of Defense to conduct that chemical 
     demilitarization mission.
       (c) Conditions of Conveyance.--The conveyance authorized 
     under subsection (a) shall be subject to the following 
     conditions:
       (1) That the Alliance agree not to carry out any activities 
     on the property to be conveyed that interfere with the 
     construction, operation, and decommissioning of the chemical 
     demilitarization facility to be constructed at Pine Bluff 
     Arsenal. If the Alliance fails to comply with its agreement 
     in paragraph (1) the property conveyed under this section, 
     all rights, title, and interest in

[[Page H9099]]

     and to the property shall revert to the United States, and 
     the United States shall have immediate rights of entry 
     thereon.
       (2) That the property be used during the 25-year period 
     beginning on the date of the conveyance only as the site of 
     the facility known as the ``Bioplex'', and for activities 
     related thereto.
       (d) Costs of Conveyance.--The Alliance shall be responsible 
     for any costs of the Army associated with the conveyance of 
     property under this section, including administrative costs, 
     the costs of an environmental baseline survey with respect to 
     the property, and the cost of any protection services 
     required by the Secretary in order to secure operations of 
     the chemical demilitarization facility from activities on the 
     property after the conveyance.
       (e) Reversionary Interests.--If the Secretary determines at 
     any time during the 25-year period referred to in subsection 
     (c)(2) that the property conveyed under this section is not 
     being used in accordance with that subsection, all right, 
     title, and interest in and to the property shall revert to 
     the United States, and the United States shall have immediate 
     right of entry thereon.
       (f) Sale of Property by Alliance.--If at any time during 
     the 25-year period referred to in subsection (c)(2) the 
     Alliance sells all or a portion of the property conveyed 
     under this section, the Alliance shall pay the United States 
     an amount equal to the lesser of--
       (1) the amount of the sale of the property sold; or
       (2) the fair market value of the property sold at the time 
     of the sale, excluding the value of any improvements to the 
     property sold that have been made by the Alliance.
       (g) Description of Property.--The exact acreage and legal 
     description of the property conveyed under this section shall 
     be determined by a survey satisfactory to the Secretary. The 
     cost of the survey shall be borne by the Alliance.
       (h) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with conveyance under this section as the Secretary considers 
     appropriate to protect the interests of the United States.

     SEC. 2828. REAFFIRMATION OF LAND CONVEYANCES, FORT SHERIDAN, 
                   ILLINOIS.

       As soon as practicable after the date of the enactment of 
     this Act, the Secretary of the Army shall complete the land 
     conveyances involving Fort Sheridan, Illinois, required or 
     authorized under section 125 of the Military Construction 
     Appropriations Act, 1996 (Public Law 104-32; 109 Stat. 290).

                       PART II--NAVY CONVEYANCES

     SEC. 2831. LAND TRANSFER, POTOMAC ANNEX, DISTRICT OF 
                   COLUMBIA.

       (a) Transfer Authorized.--The Secretary of the Navy may 
     transfer, without consideration other than the reimbursement 
     provided for in subsection (d), to the United States 
     Institute of Peace (in this section referred to as the 
     ``Institute'') administrative jurisdiction over a parcel of 
     real property, including any improvements thereon, consisting 
     of approximately 3 acres, at the northwest corner of Twenty-
     third Street and Constitution Avenue, Northwest, District of 
     Columbia, the site of the Potomac Annex.
       (b) Condition.--The Secretary may not make the transfer 
     specified in subsection (a) unless the Institute agrees to 
     provide the Navy a number of parking spaces at or in the 
     vicinity of the headquarters to be constructed on the parcel 
     transferred equal to the number of parking spaces available 
     to the Navy on the parcel as of the date of the transfer.
       (c) Requirement Relating to Transfer.--The transfer 
     specified in subsection (a) may not occur until the Institute 
     obtains all permits, approvals, and site plan reviews 
     required by law with respect to the construction on the 
     parcel of a headquarters for operations of the Institute.
       (d) Costs.--The Institute shall reimburse the Secretary for 
     the costs incurred by the Secretary in carrying out the 
     transfer specified in subsection (a).
       (e) Description of Property.--The exact acreage and legal 
     description of the property to be transferred under 
     subsection (a) shall be determined by a survey that is 
     satisfactory to the Secretary. The cost of the survey shall 
     be borne by the Institute.

     SEC. 2832. LAND EXCHANGE, ST. HELENA ANNEX, NORFOLK NAVAL 
                   SHIPYARD, VIRGINIA.

       (a) Conveyance Authorized.--(1) The Secretary of the Navy 
     may convey to such private person as the Secretary considers 
     appropriate (in this section referred to as the 
     ``transferee'') all right, title, and interest of the United 
     States in and to a parcel of real property that is located at 
     the Norfolk Naval Shipyard, Virginia, and, as of the date of 
     the enactment of this Act, is a portion of the property 
     leased to the Norfolk Shipbuilding and Drydock Company 
     pursuant to the Department of the Navy lease N00024-84-L-
     0004, effective October 1, 1984, as extended.
       (2) Pending completion of the conveyance authorized by 
     paragraph (1), the Secretary may lease the real property to 
     the transferee upon such terms as the Secretary considers 
     appropriate.
       (b) Consideration.--As consideration for the conveyance 
     under subsection (a), including any interim lease authorized 
     by such subsection, the transferee shall--
       (1) convey to the United States all right, title, and 
     interest to a parcel or parcels of real property, together 
     with any improvements thereon, located in the area of 
     Portsmouth, Virginia, which are determined to be acceptable 
     to the Secretary; and
       (2) pay to the Secretary an amount equal to the amount, if 
     any, by which the fair market value of the parcel conveyed by 
     the Secretary under subsection (a) exceeds the fair market 
     value of the parcel conveyed to the United States under 
     paragraph (1).
       (c) Use of Rental Amounts.--The Secretary may use the 
     amounts received as rent from any lease entered into under 
     the authority of subsection (a)(2) to fund environmental 
     studies of the parcels of real property to be conveyed under 
     this section.
       (d) In-Kind Consideration.--The Secretary and the 
     transferee may agree that, in lieu of all or any part of the 
     consideration required by subsection (b)(2), the transferee 
     may provide and the Secretary may accept the improvement, 
     maintenance, protection, repair, or restoration of real 
     property under the control of the Secretary in the area of 
     Hampton Roads, Virginia.
       (e) Determination of Fair Market Value and Property 
     Description.--The Secretary shall determine the fair market 
     value of the parcels of real property to be conveyed under 
     subsections (a) and (b)(1). The exact acreage and legal 
     description of the parcels shall be determined by a survey 
     satisfactory to the Secretary. The cost of the survey shall 
     be borne by the transferee.
       (f) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyances under this section as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2833. LAND CONVEYANCE, CALVERTON PINE BARRENS, NAVAL 
                   WEAPONS INDUSTRIAL RESERVE PLANT, CALVERTON, 
                   NEW YORK.

       (a) Conveyance Authorized.--The Secretary of the Navy may 
     convey, without consideration, to the Department of 
     Environmental Conservation of the State of New York (in this 
     section referred to as the ``Department''), all right, title, 
     and interest of the United States in and to the Calverton 
     Pine Barrens located at the Naval Weapons Industrial Reserve 
     Plant, Calverton, New York.
       (b) Effect on Other Conveyance Authority.--The conveyance 
     authorized by this subsection shall not affect the transfer 
     of jurisdiction of a portion of the Calverton Pine Barrens 
     authorized by section 2865 of the Military Construction 
     Authorization Act for Fiscal Year 1996 (division B of Public 
     Law 104-106; 110 Stat. 576).
       (c) Condition of Conveyance.--The conveyance under 
     subsection (a) shall be subject to the condition that the 
     Department agree--
       (1) to maintain the conveyed property as a nature preserve, 
     as required by section 2854 of the Military Construction 
     Authorization Act for Fiscal Year 1993 (division B of Public 
     Law 102-484; 106 Stat. 2626), as amended by section 2823 of 
     the Military Construction Authorization Act for Fiscal Year 
     1995 (division B of Public Law 103-337; 108 Stat. 3058);
       (2) to designate the conveyed property as the ``Otis G. 
     Pike Preserve''; and
       (3) to continue to allow the level of sporting activities 
     on the conveyed property as permitted at the time of the 
     conveyance.
       (d) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary. The cost of the survey shall be borne by 
     the Department.
       (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.
       (f) Calverton Pine Barrens Defined.--In this section, the 
     term ``Calverton Pine Barrens'' has the meaning given that 
     term in section 2854(d)(1) of the Military Construction 
     Authorization Act for Fiscal Year 1993 (division B of Public 
     Law 102-484; 106 Stat. 2626).

     SEC. 2834. LAND CONVEYANCE, FORMER NAVAL RESERVE FACILITY, 
                   LEWES, DELAWARE.

       (a) Conveyance Authorized.--The Secretary of the Navy may 
     convey, without consideration, to the State of Delaware (in 
     this section referred to as the ``State''), all right, title, 
     and interest of the United States in and to a parcel of real 
     property, including any improvements thereon, consisting of 
     approximately 16.8 acres at the site of the former Naval 
     Reserve Facility, Lewes, Delaware.
       (b) Condition of Conveyance.--The conveyance under 
     subsection (a) shall be subject to the condition that the 
     State use the real property conveyed under that subsection in 
     perpetuity solely for public park or recreational purposes.
       (c) Reversion.--If the Secretary of the Navy determines at 
     any time that the real property conveyed pursuant to this 
     section is not being used for a purpose specified in 
     subsection (b), all right, title, and interest in and to such 
     real property, including any improvements thereon, shall 
     revert to the United States, and the United States shall have 
     the right of immediate entry thereon.
       (d) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed pursuant to 
     this section shall be determined by a survey satisfactory to 
     the Secretary of the Navy. The cost of such survey shall be 
     borne by the State.
       (e) Additional Terms and Conditions.--The Secretary of the 
     Navy may require such

[[Page H9100]]

     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.

     SEC. 2835. MODIFICATION OF LAND CONVEYANCE AUTHORITY, NAVAL 
                   RESERVE CENTER, SEATTLE, WASHINGTON.

       Paragraph (2) of section 127(d) of the Military 
     Construction Appropriations Act, 1995 (Public Law 103-307; 
     108 Stat. 1666), is amended to read as follows:
       ``(2) Before commencing construction of a facility to be 
     the replacement facility for the Naval Reserve Center under 
     paragraph (1), the Secretary shall comply with the 
     requirements of the National Environmental Policy Act of 1969 
     (42 U.S.C. 4321 et seq.) with respect to such facility.''.

     SEC. 2836. RELEASE OF CONDITION ON RECONVEYANCE OF 
                   TRANSFERRED LAND, GUAM.

       (a) In General.--Section 818(b)(2) of the Military 
     Construction Authorization Act, 1981 (Public Law 96-418; 94 
     Stat. 1782), relating to a condition on disposal by Guam of 
     lands conveyed to Guam by the United States, shall have no 
     force or effect and is repealed.
       (b) Execution of Instruments.--The Secretary of the Navy 
     and the Administrator of General Services shall execute all 
     instruments necessary to implement this section.

     SEC. 2837. LEASE TO FACILITATE CONSTRUCTION OF RESERVE 
                   CENTER, NAVAL AIR STATION, MERIDIAN, 
                   MISSISSIPPI.

       (a) Lease of Property for Construction of Reserve Center.--
     (1) The Secretary of the Navy may lease, without 
     reimbursement, to the State of Mississippi (in this section 
     referred to as the ``State''), approximately five acres of 
     real property located at Naval Air Station, Meridian, 
     Mississippi. The State shall use the property to construct a 
     reserve center of approximately 22,000 square feet and 
     ancillary supporting facilities.
       (2) The term of the lease under this subsection shall 
     expire on the same date that the lease authorized by 
     subsection (b) expires.
       (b) Leaseback of Reserve Center.--(1) The Secretary may 
     lease from the State the property and improvements 
     constructed pursuant to subsection (a) for a five-year 
     period. The term of the lease shall begin on the date on 
     which the improvements are available for occupancy, as 
     determined by the Secretary.
       (2) Rental payments under the lease under paragraph (1) may 
     not exceed $200,000 per year, and the total amount of the 
     rental payments for the entire period may not exceed 20 
     percent of the total cost of constructing the reserve center 
     and ancillary supporting facilities.
       (3) Subject to the availability of appropriations for this 
     purpose, the Secretary may use funds appropriated pursuant to 
     an authorization of appropriations for the operation and 
     maintenance of the Naval Reserve to make rental payments 
     required under this subsection.
       (c) Effect of Termination of Leases.--At the end of the 
     lease term under subsection (b), the State shall convey, 
     without reimbursement, to the United States all right, title, 
     and interest of the State in the reserve center and ancillary 
     supporting facilities subject to the lease.
       (d) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the leases under this section as the Secretary considers 
     appropriate to protect the interests of the United States.

                    PART III--AIR FORCE CONVEYANCES

     SEC. 2841. LAND CONVEYANCE, RADAR BOMB SCORING SITE, BELLE 
                   FOURCHE, SOUTH DAKOTA.

       (a) Conveyance Authorized.--The Secretary of the Air Force 
     may convey, without consideration, to the Belle Fourche 
     School District, Belle Fourche, South Dakota (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, together with any improvements thereon, consisting 
     of approximately 37 acres located in Belle Fourche, South 
     Dakota, which has served as the location of a support complex 
     and housing facilities for Detachment 21 of the 554th Range 
     Squadron, an Air Force Radar Bomb Scoring Site located in 
     Belle Fourche, South Dakota. The conveyance may not include 
     any portion of the radar bomb scoring site located in the 
     State of Wyoming.
       (b) Condition of Conveyance.--The conveyance authorized 
     under subsection (a) shall be subject to the condition that 
     the District--
       (1) use the property and facilities conveyed under such 
     subsection for education, economic development, and housing 
     purposes; or
       (2) enter into an agreement with an appropriate public or 
     private entity to sell or lease the property and facilities 
     to such entity for such purposes.
       (c) Description of Property.--The exact acreage and legal 
     description of the property conveyed under this section shall 
     be determined by a survey satisfactory to the Secretary. The 
     cost of the survey shall be borne by the District.
       (d) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under this section as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2842. CONVEYANCE OF PRIMATE RESEARCH COMPLEX AND AIR 
                   FORCE-OWNED CHIMPANZEES, HOLLOMAN AIR FORCE 
                   BASE, NEW MEXICO.

       (a) Disposal Authorized.--Notwithstanding any provision of 
     the Federal Property and Administrative Services Act of 1949 
     (40 U.S.C. 471 et seq.), or any regulations prescribed 
     thereunder, the Secretary of the Air Force may dispose of all 
     right, title, and interest of the United States in and to the 
     primate research complex at Holloman Air Force Base, New 
     Mexico. The disposal may include the chimpanzees owned by the 
     Air Force that are housed at or managed from the primate 
     research complex. The disposal shall not include the 
     underlying real property on which the primate research 
     complex is located. The disposal of the primate research 
     complex shall be at no cost to the Air Force.
       (b) Competitive, Negotiated Disposal Process Required.--The 
     Secretary shall select the persons or entities to which the 
     primate research complex and chimpanzees are to be disposed 
     of under subsection (a) using a competitive, negotiated 
     process.
       (c) Standards To Be Used in Solicitation of Bids.--The 
     Secretary shall develop standards for the care and use of the 
     primate research complex, and of the chimpanzees, to be used 
     in soliciting bids for the disposal authorized by subsection 
     (a). The Secretary shall develop such standards in 
     consultation with the Secretary of Agriculture and the 
     Director of the National Institutes of Health.
       (d) Conditions of Disposal.--The disposal authorized by 
     subsection (a) shall be subject to the followings conditions:
       (1) That a recipient of any chimpanzees--
       (A) utilize such chimpanzees only for scientific research 
     or medical research purposes; or
       (B) retire and provide adequate care for such chimpanzees.
       (2) That any recipient of chimpanzees, or the primate 
     research complex, take such chimpanzees, or the primate 
     research complex, subject to any existing leases or other 
     encumbrances at the time of the disposal.
       (e) Description of Complex and Chimpanzees.--The exact 
     legal description of the primate research complex and 
     chimpanzees to be disposed of under subsection (a) shall be 
     determined by a survey or other means satisfactory to the 
     Secretary. The cost of any survey or other services performed 
     at the direction of the Secretary under the authority in the 
     preceding sentence shall be borne by the recipient of the 
     property concerned.
       (f) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the disposal under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

                       PART IV--OTHER CONVEYANCES

     SEC. 2851. LAND CONVEYANCE, TATUM SALT DOME TEST SITE, 
                   MISSISSIPPI.

       (a) Conveyance Authorized.--The Secretary of Energy may 
     convey, without compensation, to the State of Mississippi (in 
     this section referred to as the ``State'') the property known 
     as the Tatum Salt Dome Test Site, as generally depicted on 
     the map of the Department of Energy numbered 301913.104.02 
     and dated June 25, 1993.
       (b) Condition on Conveyance.--The conveyance under this 
     section shall be subject to the condition that the State use 
     the conveyed property as a wildlife refuge and working 
     demonstration forest.
       (c) Designation.--The property to be conveyed is hereby 
     designated as the ``Jamie Whitten Forest Management Area''.
       (d) Retained Rights.--The conveyance under this section 
     shall be subject to each of the following rights to be 
     retained by the United States:
       (1) Retention by the United States of subsurface estates 
     below the property conveyed.
       (2) Retention by the United States of rights of access, by 
     easement or otherwise, for such purposes as the Secretary 
     considers appropriate, including access to monitoring wells 
     for sampling.
       (3) Retention by the United States of the right to install 
     wells additional to those identified in the remediation plan 
     for the property to the extent such additional wells are 
     considered necessary by the Secretary to monitor potential 
     pathways of contaminant migration. Such wells shall be in 
     such locations as specified by the Secretary.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under this section as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2852. LAND CONVEYANCE, WILLIAM LANGER JEWEL BEARING 
                   PLANT, ROLLA, NORTH DAKOTA.

       (a) Conveyance Authorized.--The Administrator of General 
     Services may convey, without consideration, to the Job 
     Development Authority of the City of Rolla, North Dakota (in 
     this section referred to as the ``Authority''), all right, 
     title, and interest of the United States in and to a parcel 
     of real property, with improvements thereon and all 
     associated personal property, consisting of approximately 
     9.77 acres and comprising the William Langer Jewel Bearing 
     Plant in Rolla, North Dakota.
       (b) Condition of Conveyance.--The conveyance authorized 
     under subsection (a) shall be subject to the condition that 
     the Authority--
       (1) use the real and personal property and improvements 
     conveyed under that subsection for economic development 
     relating to the jewel bearing plant;
       (2) enter into an agreement with an appropriate public or 
     private entity or person to lease such property and 
     improvements to

[[Page H9101]]

     that entity or person for such economic development; or
       (3) enter into an agreement with an appropriate public or 
     private entity or person to sell such property and 
     improvements to that entity or person for such economic 
     development.
       (c) Preference for Domestic Disposal of Jewel Bearings.--
     (1) In offering to enter into agreements pursuant to any 
     provision of law for the disposal of jewel bearings from the 
     National Defense Stockpile, the President shall give a right 
     of first refusal on all such offers to the Authority or to 
     the appropriate public or private entity or person with which 
     the Authority enters into an agreement under subsection (b).
       (2) For the purposes of this section, 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. 98(c)).
       (d) Availability of Funds for Maintenance and Conveyance of 
     Plant.--Notwithstanding any other provision of law, funds 
     available under the Department of Defense Appropriations Act, 
     1995 (Public Law 103-335), in fiscal year 1995 for the 
     maintenance of the William Langer Jewel Bearing Plant shall 
     be available for the maintenance of the plant pending the 
     conveyance of the plant and for the conveyance of the plant 
     under this section.
       (e) Description of Property.--The exact acreage and legal 
     description of the property conveyed under this section shall 
     be determined by a survey satisfactory to the Administrator. 
     The cost of the survey shall be borne by the Administrator.
       (f) Additional Terms and Conditions.--The Administrator may 
     require such additional terms and conditions in connection 
     with the conveyance under this section as the Administrator 
     determines appropriate to protect the interests of the United 
     States.

     SEC. 2853. LAND CONVEYANCE, AIR FORCE PLANT NO. 85, COLUMBUS, 
                   OHIO.

       (a) Conveyance Authorized.--Notwithstanding any other 
     provision of law, the Secretary of the Air Force may instruct 
     the Administrator of General Services to convey, without 
     consideration, to the Columbus Municipal Airport Authority 
     (in this section referred to as the ``Authority'') all right, 
     title, and interest of the United States in and to a parcel 
     of real property, together with improvements thereon, at Air 
     Force Plant No. 85, Columbus, Ohio, consisting of 
     approximately 240 acres that--
       (1) contains the land and buildings referred to as the 
     ``airport parcel'' in the correspondence from the General 
     Services Administration to the Authority dated April 30, 
     1996; and
       (2) is located adjacent to the Port Columbus International 
     Airport.
       (b) Effect of Change in Administrative Jurisdiction.--If, 
     on the date of the enactment of this Act, the Secretary of 
     the Air Force does not have administrative jurisdiction over 
     the property to be conveyed, the conveyance shall be made by 
     the Federal official who has administrative jurisdiction over 
     the parcel as of that date.
       (c) Requirement for Federal Screening.--The Federal 
     official responsible for making the conveyance authorized in 
     subsection (a) may not convey the property unless the Federal 
     official determines, in consultation with the Administrator 
     of General Services, that no department or agency of the 
     Federal Government will accept the transfer of the property.
       (d) Condition of Conveyance.--The conveyance authorized 
     under subsection (a) shall be subject to the condition that 
     the Authority use the conveyed property for public airport 
     purposes.
       (e) Reversion.--If the Federal official making the 
     conveyance under subsection (a) determines that any portion 
     of the conveyed property is not being utilized in accordance 
     with the condition in subsection (d), all right, title, and 
     interest in and to such portion shall revert to the United 
     States, and the United States shall have immediate right of 
     entry thereon.
       (f) 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 Federal official responsible for making the 
     conveyance. The cost of the survey shall be borne by the 
     Authority.
       (g) Additional Terms and Conditions.--The Federal official 
     responsible for making the conveyance of property under 
     subsection (a) may require such additional terms and 
     conditions in connection with the conveyance as such official 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2854. MODIFICATION OF BOUNDARIES OF WHITE SANDS NATIONAL 
                   MONUMENT AND WHITE SANDS MISSILE RANGE.

       (a) Transfer of Lands by Secretary of Army.--The Secretary 
     of the Army may transfer to the administrative jurisdiction 
     of the Secretary of the Interior the following lands as 
     generally depicted on the map entitled ``White Sands National 
     Monument, Boundary Proposal'', numbered 142/80,061, and dated 
     January 1994:
       (1) Lands consisting of approximately 2,524 acres located 
     within White Sands National Monument, New Mexico.
       (2) Lands consisting of approximately 5,758 acres located 
     within White Sands Missile Range, New Mexico, and abutting 
     White Sands National Monument.
       (b) Transfer of Lands by Secretary of Interior.--The 
     Secretary of the Interior may transfer to the administrative 
     jurisdiction of the Secretary of the Army lands consisting of 
     approximately 4,277 acres located in White Sands National 
     Monument, which lands are generally depicted on the map 
     referred to in subsection (a).
       (c) Boundary Modifications.--(1) The Secretary of the Army 
     and the Secretary of the Interior shall jointly modify the 
     boundary of White Sands National Monument so as to include 
     within the national monument the lands transferred under 
     subsection (a) and to exclude from the national monument the 
     lands transferred under subsection (b).
       (2) The Secretary of the Army and the Secretary of the 
     Interior shall jointly modify the boundary of White Sands 
     Missile Range as to include within the missile range the 
     lands transferred under subsection (b) and exclude from the 
     missile range the lands transferred under subsection (a).
       (d) Administration of Transferred Lands.--(1) The Secretary 
     of the Interior shall administer the lands transferred to 
     that Secretary under subsection (a) in accordance with the 
     laws applicable to the White Sands National Monument.
       (2) The Secretary of the Army shall administer the lands 
     transferred to that Secretary under subsection (b) as part of 
     White Sands Missile Range.
       (3) The Secretary of the Army shall maintain control of the 
     airspace above the lands transferred to that Secretary under 
     subsection (b) and administer that airspace in a manner 
     consistent with the use of such lands as part of White Sands 
     Missile Range.
       (e) Public Availability of Map of Monument.--The Secretary 
     of the Interior and the Secretary of the Army shall jointly 
     prepare, and the Secretary of the Interior shall keep on file 
     for public inspection in the headquarters of White Sands 
     National Monument, a map showing the boundary of White Sands 
     National Monument as modified by this section.
       (f) Waiver of Limitation Under Prior Law.--Notwithstanding 
     section 303(b)(1) of the National Parks and Recreation Act of 
     1978 (Public Law 95-625; 92 Stat. 3476), land or an interest 
     in land that was deleted from White Sands National Monument 
     by section 301(19) of the Act (92 Stat. 3475) may, at the 
     election of the Secretary of the Interior, be--
       (1) exchanged for land owned by the State of New Mexico 
     within the boundaries of any unit of the National Park System 
     in the State of New Mexico;
       (2) transferred to the jurisdiction of any other Federal 
     agency without monetary consideration; or
       (3) administered as public land.
                       Subtitle D--Other Matters

     SEC. 2861. AUTHORITY TO GRANT EASEMENTS FOR RIGHTS-OF-WAY.

       (a) Easements for Electric Poles and Lines and for 
     Communications Lines and Facilities.--Section 2668(a) of 
     title 10, United States Code, is amended--
       (1) by striking out ``and'' at the end of paragraph (9);
       (2) by redesignating paragraph (10) as paragraph (13); and
       (3) by inserting after paragraph (9) the following new 
     paragraphs:
       ``(10) poles and lines for the transmission or distribution 
     of electric power;
       ``(11) poles and lines for the transmission or distribution 
     of communications signals (including telephone and telegraph 
     signals);
       ``(12) structures and facilities for the transmission, 
     reception, and relay of such signals; and''.
       (b) Conforming Amendments.--Such section is further 
     amended--
       (1) in paragraph (3), by striking out ``, telephone lines, 
     and telegraph lines,''; and
       (2) in paragraph (13), as redesignated by subsection 
     (a)(2), by striking out ``or by the Act of March 4, 1911 (43 
     U.S.C. 961)''.

     SEC. 2862. AUTHORITY TO ENTER INTO COOPERATIVE AGREEMENTS FOR 
                   THE MANAGEMENT OF CULTURAL RESOURCES ON 
                   MILITARY INSTALLATIONS.

       (a) Agreements Authorized.--Chapter 159 of title 10, United 
     States Code, is amended by inserting after section 2683 the 
     following new section:

     ``Sec. 2684. Cooperative agreements for management of 
       cultural resources

       ``(a) Authority.--The Secretary of Defense or the Secretary 
     of a military department may enter into a cooperative 
     agreement with a State or local government or other entity 
     for the preservation, management, maintenance, and 
     improvement of cultural resources on military installations 
     and for the conduct of research regarding the cultural 
     resources. Activities under the cooperative agreement shall 
     be subject to the availability of funds to carry out the 
     cooperative agreement.
       ``(b) Application of Other Laws.--Section 1535 and chapter 
     63 of title 31 shall not apply to a cooperative agreement 
     entered into under this section.
       ``(c) Cultural Resource Defined.--In this section, the term 
     `cultural resource' means any of the following:
       ``(1) A building, structure, site, district, or object 
     eligible for or included in the National Register of Historic 
     Places maintained under section 101(a) of the National 
     Historic Preservation Act (16 U.S.C. 470a(a)).
       ``(2) Cultural items, as that term is defined in section 
     2(3) of the Native American Graves Protection and 
     Repatriation Act (25 U.S.C. 3001(3)).

[[Page H9102]]

       ``(3) An archaeological resource, as that term is defined 
     in section 3(1) of the Archaeological Resources Protection 
     Act of 1979 (16 U.S.C. 470bb(1)).
       ``(4) An archaeological artifact collection and associated 
     records covered by section 79 of title 36, Code of Federal 
     Regulations.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 2683 the following new item:
``2684. Cooperative agreements for management of cultural resources.''.

     SEC. 2863. DEMONSTRATION PROJECT FOR INSTALLATION AND 
                   OPERATION OF ELECTRIC POWER DISTRIBUTION SYSTEM 
                   AT YOUNGSTOWN AIR RESERVE STATION, OHIO.

       (a) Authority.--The Secretary of the Air Force may carry 
     out a demonstration project to assess the feasibility and 
     advisability of permitting private entities to install, 
     operate, and maintain electric power distribution systems at 
     military installations. The Secretary shall carry out the 
     demonstration project through an agreement under subsection 
     (b).
       (b) Agreement.--(1) In order to carry out the demonstration 
     project, the Secretary shall enter into an agreement with an 
     electric utility or other company in the Youngstown, Ohio, 
     area, consistent with State law, under which the utility or 
     company installs, operates, and maintains (in a manner 
     satisfactory to the Secretary and the utility or company) an 
     electric power distribution system at Youngstown Air Reserve 
     Station, Ohio.
       (2) The Secretary may not enter into an agreement under 
     this subsection until--
       (A) the Secretary submits to Congress a report on the 
     agreement to be entered into, including the costs to be 
     incurred by the United States under the agreement; and
       (B) a period of 30 days has elapsed from the date of the 
     receipt of the report by the committees.
       (c) Licenses and Easements.--In order to facilitate the 
     installation, operation, and maintenance of the electric 
     power distribution system under the agreement under 
     subsection (b), the Secretary may grant the utility or 
     company with which the Secretary enters into the agreement 
     such licenses, easements, and rights-of-way, consistent with 
     State law, as the Secretary and the utility or company 
     jointly determine necessary for such purposes.
       (d) Ownership of System.--The agreement between the 
     Secretary and the utility or company under subsection (b) may 
     provide that the utility or company shall own the electric 
     power distribution system installed under the agreement.
       (e) Rate.--The rate charged by the utility or company for 
     providing or distributing electric power at Youngstown Air 
     Reserve Station through the electric power distribution 
     system installed under the agreement under subsection (b) 
     shall be the rate established by the appropriate Federal or 
     State regulatory authority.
       (f) Reports.--Not later than February 1, 1997, and February 
     1 of each year following a year in which the Secretary 
     carries out the demonstration project under this section, the 
     Secretary shall submit to Congress a report on the project. 
     The report shall include the Secretary's current assessment 
     of the project and the recommendations, if any, of the 
     Secretary of extending the authority with respect to the 
     project to other facilities and installations of the 
     Department of Defense.
       (g) Funding.--In order to pay the costs of the United 
     States under the agreement under subsection (b), the 
     Secretary may use funds authorized to be appropriated by 
     section 2601(3)(B) of the Military Construction Authorization 
     Act for Fiscal Year 1996 (division B of Public Law 104-106; 
     110 Stat. 540) for the purpose of rebuilding the electric 
     power distribution system at the Youngstown Air Reserve 
     Station that were appropriated for that purpose by the 
     Military Construction Appropriations Act, 1996 (Public Law 
     104-32; 109 Stat. 283), and that remain available for 
     obligation for that purpose as of the date of the enactment 
     of this Act.
       (h) Application of Other Law.--Nothing in this section 
     shall authorize actions which are inconsistent with Federal 
     or State law.
       (i) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in the agreement 
     under subsection (b) as the Secretary considers appropriate 
     to protect the interests of the United States.

     SEC. 2864. RENOVATION OF THE PENTAGON RESERVATION.

       The Secretary of Defense shall take such actions as are 
     necessary to ensure that the total cost of the renovation of 
     the Pentagon Reservation does not exceed $1,118,000,000.

     SEC. 2865. PLAN FOR REPAIRS AND STABILIZATION OF THE HISTORIC 
                   DISTRICT AT THE FOREST GLEN ANNEX OF WALTER 
                   REED MEDICAL CENTER, MARYLAND.

       Not later than 120 days after the date of the enactment of 
     this Act, the Secretary of the Army shall submit to the 
     congressional defense committees a comprehensive plan for 
     basic repairs and stabilization measures throughout the 
     historic district at the Forest Glen Annex of Walter Reed 
     Army Medical Center, Maryland, together with funding options 
     for the implementation of the plan.

     SEC. 2866. NAMING OF RANGE AT CAMP SHELBY, MISSISSIPPI.

       (a) Name.--The Multi Purpose Range Complex (Heavy) at Camp 
     Shelby, Mississippi, shall after the date of the enactment of 
     this Act be known and designated as the ``G.V. (Sonny) 
     Montgomery Range''. Any reference to such range in any law, 
     regulation, map, document, record, or other paper of the 
     United States shall be considered to be a reference to the G. 
     V. (Sonny) Montgomery Range.
       (b) Effective Date.--Subsection (a) shall take effect at 
     noon on January 3, 1997, or the first day on which G. V. 
     (Sonny) Montgomery otherwise ceases to be a Member of the 
     House of Representatives.

     SEC. 2867. DESIGNATION OF MICHAEL O'CALLAGHAN MILITARY 
                   HOSPITAL.

       (a) Designation.--The Nellis Federal Hospital, a Federal 
     building located at 4700 North Las Vegas Boulevard, Las 
     Vegas, Nevada, shall be known and designated as the ``Michael 
     O'Callaghan Military Hospital''.
       (b) References.--Any reference in a law, map, regulation, 
     document, paper, or other record of the United States to the 
     Federal building referred to in subsection (a) shall be 
     deemed to be a reference to the ``Michael O'Callaghan 
     Military Hospital''.

     SEC. 2868. NAMING OF BUILDING AT THE UNIFORMED SERVICES 
                   UNIVERSITY OF THE HEALTH SCIENCES.

       It is the sense of Congress that the Secretary of Defense 
     should name Building A at the Uniformed Services University 
     of the Health Sciences as the ``David Packard Building''.
                 TITLE XXIX--MILITARY LAND WITHDRAWALS

     Subtitle A--Fort Carson-Pinon Canyon Military Lands Withdrawal

Sec. 2901. Short title.
Sec. 2902. Withdrawal and reservation of lands at Fort Carson Military 
              Reservation.
Sec. 2903. Withdrawal and reservation of lands at Pinon Canyon Maneuver 
              Site.
Sec. 2904. Maps and legal descriptions.
Sec. 2905. Management of withdrawn lands.
Sec. 2906. Management of withdrawn and acquired mineral resources.
Sec. 2907. Hunting, fishing, and trapping.
Sec. 2908. Termination of withdrawal and reservation.
Sec. 2909. Determination of presence of contamination and effect of 
              contamination.
Sec. 2910. Delegation.
Sec. 2911. Hold harmless.
Sec. 2912. Amendment to Military Lands Withdrawal Act of 1986.
Sec. 2913. Authorization of appropriations.

       Subtitle B--El Centro Naval Air Facility Ranges Withdrawal

Sec. 2921. Short title and definitions.
Sec. 2922. Withdrawal and reservation of lands for El Centro.
Sec. 2923. Maps and legal descriptions.
Sec. 2924. Management of withdrawn lands.
Sec. 2925. Duration of withdrawal and reservation.
Sec. 2926. Continuation of ongoing decontamination activities.
Sec. 2927. Requirements for extension.
Sec. 2928. Early relinquishment of withdrawal.
Sec. 2929. Delegation of authority.
Sec. 2930. Hunting, fishing, and trapping.
Sec. 2931. Hold harmless.
     Subtitle A--Fort Carson-Pinon Canyon Military Lands Withdrawal

     SEC. 2901. SHORT TITLE.

       This subtitle may be cited as the ``Fort Carson-Pinon 
     Canyon Military Lands Withdrawal Act''.

     SEC. 2902. WITHDRAWAL AND RESERVATION OF LANDS AT FORT CARSON 
                   MILITARY RESERVATION.

       (a) Withdrawal.--Subject to valid existing rights and 
     except as otherwise provided in this subtitle, the lands at 
     the Fort Carson Military Reservation, Colorado, that are 
     described in subsection (c) are hereby withdrawn from all 
     forms of appropriation under the public land laws, including 
     the mining laws, the mineral and geothermal leasing laws, and 
     the mineral materials disposal laws.
       (b) Reservation.--The lands withdrawn under subsection (a) 
     are reserved for use by the Secretary of the Army--
       (1) for military maneuvering, training and weapons firing; 
     and
       (2) for other defense related purposes consistent with the 
     uses specified in paragraph (1).
       (c) Land Description.--The lands referred to in subsection 
     (a) comprise 3,133.02 acres of public land and 11,415.16 
     acres of federally-owned minerals in El Paso, Pueblo, and 
     Fremont Counties, Colorado, as generally depicted on the map 
     entitled ``Fort Carson Proposed Withdrawal--Fort Carson 
     Base'', dated February 6, 1992, and published in accordance 
     with section 2904.

     SEC. 2903. WITHDRAWAL AND RESERVATION OF LANDS AT PINON 
                   CANYON MANEUVER SITE.

       (a) Withdrawal.--Subject to valid existing rights and 
     except as otherwise provided in this subtitle, the lands at 
     the Pinon Canyon Maneuver Site, Colorado, that are described 
     in subsection (c) are hereby withdrawn from all forms of 
     appropriation under the public land laws, including the 
     mining laws, the mineral and geothermal leasing laws, and the 
     mineral materials disposal laws.
       (b) Reservation.--The lands withdrawn under subsection (a) 
     are reserved for use by the Secretary of the Army--
       (1) for military maneuvering and training; and
       (2) for other defense related purposes consistent with the 
     uses specified in paragraph (1).

[[Page H9103]]

       (c) Land Description.--The lands referred to in subsection 
     (a) comprise 2,517.12 acres of public lands and 130,139 acres 
     of federally-owned minerals in Las Animas County, Colorado, 
     as generally depicted on the map entitled ``Fort Carson 
     Proposed Withdrawal--Fort Carson Maneuver Area--Pinon Canyon 
     site'', dated February 6, 1992, and published in accordance 
     with section 2904.

     SEC. 2904. MAPS AND LEGAL DESCRIPTIONS.

       (a) Preparation of Maps and Legal Description.--As soon as 
     practicable after the date of the enactment of this subtitle, 
     the Secretary of the Interior shall prepare maps depicting 
     the lands withdrawn and reserved by this subtitle and publish 
     in the Federal Register a notice containing the legal 
     description of such lands.
       (b) Legal Effect.--Such maps and legal descriptions shall 
     have the same force and effect as if they were included in 
     this subtitle, except that the Secretary of the Interior may 
     correct clerical and typographical errors in such maps and 
     legal descriptions.
       (c) Availability of Maps and Legal Description.--Copies of 
     such maps and legal descriptions shall be available for 
     public inspection in the offices of the Colorado State 
     Director and the Canon City District Manager of the Bureau of 
     Land Management and in the offices of the Commander of Fort 
     Carson, Colorado.
       (d) Costs.--The Secretary of the Army shall reimburse the 
     Secretary of the Interior for the costs of implementing this 
     section.

     SEC. 2905. MANAGEMENT OF WITHDRAWN LANDS.

       (a) Management Guidelines.--
       (1) Management by secretary of the army.--Except as 
     provided in section 2906, during the period of withdrawal, 
     the Secretary of the Army shall manage for military purposes 
     the lands covered by this subtitle and may authorize use of 
     the lands by the other military departments and agencies of 
     the Department of Defense, and the National Guard, as 
     appropriate.
       (2) Access restrictions.--When military operations, public 
     safety, or national security, as determined by the Secretary 
     of the Army, require the closure of roads and trails on the 
     lands withdrawn by this subtitle commonly in public use, the 
     Secretary of the Army is authorized to take such action, 
     except that such closures shall be limited to the minimum 
     areas and periods required for the purposes specified in this 
     subsection. Appropriate warning notices shall be kept posted 
     during closures.
       (3) Suppression of fires.--The Secretary of the Army shall 
     take necessary precautions to prevent and suppress brush and 
     range fires occurring within and outside the lands as a 
     result of military activities and may seek assistance from 
     the Bureau of Land Management in suppressing such fires. The 
     memorandum of understanding required by this section shall 
     provide for Bureau of Land Management assistance in the 
     suppression of such fires, and for a transfer of funds from 
     the Department of the Army to the Bureau of Land Management 
     as compensation for such assistance.
       (b) Management Plan.--
       (1) Development required.--The Secretary of the Army, with 
     the concurrence of the Secretary of the Interior, shall 
     develop a plan for the management of acquired lands and lands 
     withdrawn under sections 2902 and 2903 for the period of 
     withdrawal. The plan shall--
       (A) be consistent with applicable law;
       (B) include such provisions as may be necessary for proper 
     resource management and protection of the natural, cultural, 
     and other resources and values of such lands; and
       (C) identify those withdrawn and acquired lands, if any, 
     which are to be open to mining or mineral and geothermal 
     leasing, including mineral materials disposal.
       (2) Time for development.--The management plan required by 
     this subsection shall be developed not later than 5 years 
     after the date of the enactment of this subtitle.
       (c) Implementation of Management Plan.--
       (1) Memorandum of understanding required.--The Secretary of 
     the Army and the Secretary of the Interior shall enter into a 
     memorandum of understanding to implement the management plan 
     developed under subsection (b).
       (2) Duration.--The duration of any such memorandum of 
     understanding shall be the same as the period of withdrawal 
     specified in section 2908(a).
       (3) Amendment.--The memorandum of understanding may be 
     amended by agreement of both Secretaries.
       (d) Use of Certain Resources.--The Secretary of the Army is 
     authorized to utilize sand, gravel, or similar mineral or 
     mineral material resources from the lands withdrawn by this 
     subtitle when the use of such resources is required for 
     construction needs of the Fort Carson Reservation or Pinon 
     Canyon Maneuver Site.

     SEC. 2906. MANAGEMENT OF WITHDRAWN AND ACQUIRED MINERAL 
                   RESOURCES.

       Except as provided in section 2905(d), the Secretary of the 
     Interior shall manage all withdrawn and acquired mineral 
     resources within the boundaries of the Fort Carson Military 
     Reservation and Pinon Canyon Maneuver Site in the same manner 
     as provided in section 12 of the Military Lands Withdrawal 
     Act of 1986 (Public Law 99-606; 100 Stat. 3466) for mining 
     and mineral leasing on certain lands withdrawn by that Act 
     from all forms of appropriation under the public land laws.

     SEC. 2907. HUNTING, FISHING, AND TRAPPING.

       All hunting, fishing, and trapping on the lands withdrawn 
     and reserved by this subtitle shall be conducted in 
     accordance with section 2671 of title 10, United States Code.

     SEC. 2908. TERMINATION OF WITHDRAWAL AND RESERVATION.

       (a) Termination Date.--The withdrawal and reservation made 
     by this subtitle shall terminate 15 years after the date of 
     the enactment of this subtitle.
       (b) Determination of Continuing Military Need.--
       (1) Determination required.--At least three years before 
     the termination under subsection (a) of the withdrawal and 
     reservation established by this subtitle, the Secretary of 
     the Army shall advise the Secretary of the Interior as to 
     whether or not the Department of the Army will have a 
     continuing military need for any of the lands after the 
     termination date.
       (2) Method of making determination.--If the Secretary of 
     the Army concludes under paragraph (1) that there will be a 
     continuing military need for any of the lands after the 
     termination date established by subsection (a), the Secretary 
     of the Army, in accordance with applicable law, shall--
       (A) evaluate the environmental effects of renewal of such 
     withdrawal and reservation;
       (B) hold at least one public hearing in Colorado concerning 
     such evaluation; and
       (C) file, after completing the requirements of 
     subparagraphs (A) and (B), an application for extension of 
     the withdrawal and reservation of such lands in accordance 
     with the regulations and procedures of the Department of the 
     Interior applicable to the extension of withdrawals for 
     military uses.
       (3) Notification.--The Secretary of the Interior shall 
     notify the Congress concerning a filing under paragraph 
     (3)(C).
       (c) Early Relinquishment of Withdrawal.--If the Secretary 
     of the Army concludes under subsection (b) that before the 
     termination date established by subsection (a) there will be 
     no military need for all or any part of the lands withdrawn 
     and reserved by this subtitle, or if, during the period of 
     withdrawal, the Secretary of the Army otherwise decides to 
     relinquish any or all of the lands withdrawn and reserved 
     under this subtitle, the Secretary of the Army shall file 
     with the Secretary of the Interior a notice of intention to 
     relinquish such lands.
       (d) Acceptance of Lands Proposed for Relinquishment.--
     Notwithstanding any other provision of law, the Secretary of 
     the Interior, upon deciding that it is in the public interest 
     to accept jurisdiction over the lands proposed for 
     relinquishment, may revoke the withdrawal and reservation 
     established by this subtitle as it applies to the lands 
     proposed for relinquishment. Should the decision be made to 
     revoke the withdrawal and reservation, the Secretary of the 
     Interior shall publish in the Federal Register an appropriate 
     order which shall--
       (1) terminate the withdrawal and reservation;
       (2) constitute official acceptance of full jurisdiction 
     over the lands by the Secretary of the Interior; and
       (3) state the date upon which the lands will be opened to 
     the operation of the public land laws, including the mining 
     laws if appropriate.

     SEC. 2909. DETERMINATION OF PRESENCE OF CONTAMINATION AND 
                   EFFECT OF CONTAMINATION.

       (a) Determination of Presence of Contamination.--
       (1) Before relinquishment notice.--Before filing a 
     relinquishment notice under section 2908(c), the Secretary of 
     the Army shall prepare a written determination as to whether 
     and to what extent the lands to be relinquished are 
     contaminated with explosive, toxic, or other hazardous 
     materials. A copy of the determination made by the Secretary 
     of the Army shall be supplied with the relinquishment notice. 
     Copies of both the relinquishment notice and the 
     determination under this subsection shall be published in the 
     Federal Register by the Secretary of the Interior.
       (2) Upon termination of withdrawal.--At the expiration of 
     the withdrawal period made by this Act, the Secretary of the 
     Interior shall determine whether and to what extent the lands 
     withdrawn by this subtitle are contaminated to an extent 
     which prevents opening such contaminated lands to operation 
     of the public land laws.
       (b) Program of Decontamination.--
       (1) In general.--Throughout the duration of the withdrawal 
     and reservation made by this subtitle, the Secretary of the 
     Army, to the extent funds are made available, shall maintain 
     a program of decontamination of the lands withdrawn by this 
     subtitle at least at the level of effort carried out during 
     fiscal year 1992.
       (2) Decontamination of lands to be relinquished.--In the 
     case of lands subject to a relinquishment notice under 
     section 2908(c) that are contaminated, the Secretary of the 
     Army shall decontaminate the land to the extent that funds 
     are appropriated for such purpose if the Secretary of the 
     Interior, in consultation with the Secretary of the Army, 
     determines that--
       (A) decontamination of the lands is practicable and 
     economically feasible, taking into consideration the 
     potential future use and value of the land; and
       (B) upon decontamination, the land could be opened to the 
     operation of some or all of the public land laws, including 
     the mining laws.
       (c) Authority of Secretary of the Interior To Refuse 
     Contaminated Lands.--The

[[Page H9104]]

     Secretary of the Interior shall not be required to accept 
     lands proposed for relinquishment if the Secretary of the 
     Army and the Secretary of the Interior conclude that--
       (1) decontamination of any or all of the lands proposed for 
     relinquishment is not practicable or economically feasible;
       (2) the lands cannot be decontaminated sufficiently to 
     allow them to be opened to the operation of the public land 
     laws; or
       (3) insufficient funds are appropriated for the purpose of 
     decontaminating the lands.
       (d) Effect of Continued Contamination.--If the Secretary of 
     the Interior declines under subsection (c) to accept 
     jurisdiction of lands proposed for relinquishment or if the 
     Secretary of the Interior determines under subsection (a)(2) 
     that some of the lands withdrawn by this subtitle are 
     contaminated to an extent that prevents opening the 
     contaminated lands to operation of the public land laws--
       (1) the Secretary of the Army shall take appropriate steps 
     to warn the public of the contaminated state of such lands 
     and any risks associated with entry onto such lands;
       (2) after the expiration of the withdrawal, the Secretary 
     of the Army shall undertake no activities on such lands 
     except in connection with decontamination of such lands; and
       (3) the Secretary of the Army shall report to the Secretary 
     of the Interior and to the Congress concerning the status of 
     such lands and all actions taken under paragraphs (1) and 
     (2).
       (e) Effect of Subsequent Decontamination.--If the lands 
     described in subsection (d) are subsequently decontaminated, 
     upon certification by the Secretary of the Army that the 
     lands are safe for all nonmilitary uses, the Secretary of the 
     Interior shall reconsider accepting jurisdiction over the 
     lands.
       (f) Effect on Other Laws.--Nothing in this subtitle shall 
     affect, or be construed to affect, the obligations of the 
     Secretary of the Army, if any, to decontaminate lands 
     withdrawn by this subtitle pursuant to applicable law, 
     including the Comprehensive Environmental Response 
     Compensation and Liability Act of 1980 (42 U.S.C. 9601 et 
     seq.) and the Solid Waste Disposal Act (42 U.S.C. 6901 et 
     seq.).

     SEC. 2910. DELEGATION.

       The functions of the Secretary of the Army under this 
     subtitle may be delegated. The functions of the Secretary of 
     the Interior under this subtitle may be delegated, except 
     that the order referred to in section 2908(d) may be approved 
     and signed only by the Secretary of the Interior, the Deputy 
     Secretary of the Interior, or an Assistant Secretary of the 
     Department of the Interior.

     SEC. 2911. HOLD HARMLESS.

       Any party conducting any mining, mineral, or geothermal 
     leasing activity on lands comprising the Fort Carson 
     Reservation or Pinon Canyon Maneuver Site shall indemnify the 
     United States against any costs, fees, damages, or other 
     liabilities (including costs of litigation) incurred by the 
     United States and arising from or relating to such mining 
     activities, including costs of mineral materials disposal, 
     whether arising under the Comprehensive Environmental 
     Response Compensation and Liability Act of 1980, the Solid 
     Waste Disposal Act, or otherwise.

     SEC. 2912. AMENDMENT TO MILITARY LANDS WITHDRAWAL ACT OF 
                   1986.

       (a) Use of Certain Resources.--Section 3(f) of the Military 
     Lands Withdrawal Act of 1986 (Public Law 99-606; 100 Stat. 
     3461) is amended by adding at the end the following new 
     paragraph:
       ``(2) Subject to valid existing rights, the Secretary of 
     the military department concerned may utilize sand, gravel, 
     or similar mineral or material resources when the use of such 
     resources is required for construction needs on the 
     respective lands withdrawn by this Act.''.
       (b) Technical Correction.--Section 9(b) of the Military 
     Lands Withdrawal Act of 1986 (Public Law 99-606; 100 Stat. 
     3466) is amended by striking ``section 7(f)'' and inserting 
     in lieu thereof ``section 8(f)''.

     SEC. 2913. AUTHORIZATION OF APPROPRIATIONS.

       There are hereby authorized to be appropriated such sums as 
     may be necessary to carry out the purposes of this subtitle.
       Subtitle B--El Centro Naval Air Facility Ranges Withdrawal

     SEC. 2921. SHORT TITLE AND DEFINITIONS.

       (a) Short Title.--This subtitle may be cited as the ``El 
     Centro Naval Air Facility Ranges Withdrawal Act''.
       (b) Definitions.--In this subtitle:
       (1) The term ``El Centro'' means the Naval Air Facility, El 
     Centro, California.
       (2) The term ``cooperative agreement'' means the 
     cooperative agreement entered into between the Bureau of Land 
     Management, the Bureau of Reclamation, and the Department of 
     the Navy, dated June 29, 1987, with regard to the defense-
     related uses of Federal lands to further the mission of El 
     Centro.
       (3) The term ``relinquishment notice'' means a notice of 
     intention by the Secretary of the Navy under section 2928(a) 
     to relinquish, before the termination date specified in 
     section 2925, the withdrawal and reservation of certain lands 
     withdrawn under this subtitle.

     SEC. 2922. WITHDRAWAL AND RESERVATION OF LANDS FOR EL CENTRO.

       (a) Withdrawals.--Subject to valid existing rights, and 
     except as otherwise provided in this subtitle, the Federal 
     lands utilized in the mission of the Naval Air Facility, El 
     Centro, California, that are described in subsection (c) are 
     hereby withdrawn from all forms of appropriation under the 
     public land laws, including the mining laws, but not the 
     mineral leasing or geothermal leasing laws or the mineral 
     materials sales laws.
       (b) Reservation.--The lands withdrawn under subsection (a) 
     are reserved for the use by the Secretary of the Navy--
       (1) for defense-related purposes in accordance with the 
     cooperative agreement; and
       (2) subject to notice to the Secretary of the Interior 
     under section 2924(e), for other defense-related purposes 
     determined by the Secretary of the Navy.
       (c) Description of Withdrawn Lands.--The lands withdrawn 
     and reserved under subsection (a) are--
       (1) the Federal lands comprising approximately 46,600 acres 
     in Imperial County, California, as generally depicted in part 
     on a map entitled ``Exhibit A, Naval Air Facility, El Centro, 
     California, Land Acquisition Map, Range 2510 (West Mesa)'' 
     and dated March 1993 and in part on a map entitled ``Exhibit 
     B, Naval Air Facility, El Centro, California, Land 
     Acquisition Map Range 2512 (East Mesa)'' and dated March 
     1993; and
       (2) and all other areas within the boundaries of such lands 
     as depicted on such maps that may become subject to the 
     operation of the public land laws.

     SEC. 2923. MAPS AND LEGAL DESCRIPTIONS.

       (a) Publication and Filing Requirements.--As soon as 
     practicable after the date of the enactment of this subtitle, 
     the Secretary of the Interior shall--
       (1) publish in the Federal Register a notice containing the 
     legal description of the lands withdrawn and reserved under 
     this subtitle; and
       (2) file maps and the legal description of the lands 
     withdrawn and reserved under this subtitle with the Committee 
     on Energy and Natural Resources of the Senate and with the 
     Committee on Resources of the House of Representatives.
       (b) Legal Effect.--The maps and legal description prepared 
     under subsection (a) shall have the same force and effect as 
     if they were included in this subtitle, except that the 
     Secretary of the Interior may correct clerical and 
     typographical errors in the maps and legal description.
       (c) Availability for Public Inspection.--Copies of the maps 
     and legal description prepared under subsection (a) shall be 
     available for public inspection in--
       (1) the Office of the State Director, California State 
     Office of the Bureau of Land Management, Sacramento, 
     California;
       (2) the Office of the District Manager, California Desert 
     District of the Bureau of Land Management, Riverside, 
     California; and
       (3) the Office of the Commanding Officer, Marine Corps Air 
     Station, Yuma, Arizona.
       (d) Reimbursement.--The Secretary of Navy shall reimburse 
     the Secretary of the Interior for the cost of implementing 
     this section.

     SEC. 2924. MANAGEMENT OF WITHDRAWN LANDS.

       (a) Management Consistent With Cooperative Agreement.--The 
     lands and resources shall be managed in accordance with the 
     cooperative agreement, revised as necessary to conform to the 
     provisions of this subtitle. The parties to the cooperative 
     agreement shall review the cooperative agreement for 
     conformance with this subtitle and amend the cooperative 
     agreement, if appropriate, within 120 days after the date of 
     the enactment of this subtitle. The term of the cooperative 
     agreement shall be amended so that its duration is at least 
     equal to the duration of the withdrawal made by section 2925. 
     The cooperative agreement may be reviewed and amended by the 
     managing agencies as necessary.
       (b) Management by Secretary of the Interior.--
       (1) General management authority.--During the period of 
     withdrawal, the Secretary of the Interior shall manage the 
     lands withdrawn and reserved under this subtitle pursuant to 
     the Federal Land Policy and Management Act of 1976 (43 U.S.C. 
     1701 et seq.) and other applicable laws, including this 
     subtitle.
       (2) Specific authorities.--To the extent consistent with 
     applicable laws, Executive orders, and the cooperative 
     agreement, the lands withdrawn and reserved under this 
     subtitle may be managed in a manner permitting--
       (A) protection of wildlife and wildlife habitat;
       (B) control of predatory and other animals;
       (C) the prevention and appropriate suppression of brush and 
     range fires resulting from nonmilitary activities; and
       (D) geothermal leasing and development and related power 
     production, mineral leasing and development, and mineral 
     material sales.
       (3) Effect of withdrawal.--The Secretary of the Interior 
     shall manage the lands withdrawn and reserved under this 
     subtitle, in coordination with the Secretary of the Navy, 
     such that all nonmilitary use of such lands, including the 
     uses described in paragraph (2), shall be subject to such 
     conditions and restrictions as may be necessary to permit the 
     military use of such lands for the purposes specified in the 
     cooperative agreement or authorized pursuant to this 
     subtitle.
       (c) Certain Activities Subject to Concurrence of Navy.--The 
     Secretary of the Interior may issue a lease, easement, right-
     of-way, or other authorization with respect to the 
     nonmilitary use of the withdrawn lands only with the 
     concurrence of the Secretary

[[Page H9105]]

     of the Navy and under the terms of the cooperative agreement.
       (d) Access Restrictions.--If the Secretary of the Navy 
     determines that military operations, public safety, or 
     national security require the closure to public use of any 
     road, trail, or other portion of the lands withdrawn under 
     this subtitle, the Secretary may take such action as the 
     Secretary determines necessary or desirable to effect and 
     maintain such closure. Any such closure shall be limited to 
     the minimum areas and periods which the Secretary of the Navy 
     determines are required to carry out this subsection. Before 
     and during any closure under this subsection, the Secretary 
     of the Navy shall keep appropriate warning notices posted and 
     take appropriate steps to notify the public concerning such 
     closures.
       (e) Additional Military Uses.--Lands withdrawn under this 
     subtitle may be used for defense-related uses other than 
     those specified in the cooperative agreement. The Secretary 
     of the Navy shall promptly notify the Secretary of the 
     Interior in the event that the lands withdrawn under this 
     subtitle will be used for additional defense-related 
     purposes. Such notification shall indicate the additional use 
     or uses involved, the proposed duration of such uses, and the 
     extent to which such additional military uses of the 
     withdrawn lands will require that additional or more 
     stringent conditions or restrictions be imposed on otherwise-
     permitted nonmilitary uses of all or any portion of the 
     withdrawn lands.

     SEC. 2925. DURATION OF WITHDRAWAL AND RESERVATION.

       The withdrawal and reservation made under this subtitle 
     shall terminate 25 years after the date of the enactment of 
     this subtitle.

     SEC. 2926. CONTINUATION OF ONGOING DECONTAMINATION 
                   ACTIVITIES.

       Throughout the duration of the withdrawal and reservation 
     made under this subtitle, and subject to the availability of 
     funds, the Secretary of the Navy shall maintain a program of 
     decontamination of the lands withdrawn under this subtitle at 
     least at the level of decontamination activities performed on 
     such lands in fiscal year 1995. Such activities shall be 
     subject to applicable laws, such as the amendments made by 
     the Federal Facility Compliance Act of 1992 (Public Law 102-
     386; 106 Stat. 1505) and the Defense Environmental 
     Restoration Program established under section 2701 of title 
     10, United States Code.

     SEC. 2927. REQUIREMENTS FOR EXTENSION.

       (a) Notice of Continued Military Need.--Not later than five 
     years before the termination date specified in section 2925, 
     the Secretary of the Navy shall advise the Secretary of the 
     Interior as to whether or not the Navy will have a continuing 
     military need for any or all of the lands withdrawn and 
     reserved under this subtitle after the termination date.
       (b) Application for Extension.--If the Secretary of the 
     Navy determines that there will be a continuing military need 
     for any or all of the withdrawn lands after the termination 
     date specified in section 2925, the Secretary of the Navy 
     shall file an application for extension of the withdrawal and 
     reservation of the lands in accordance with the then existing 
     regulations and procedures of the Department of the Interior 
     applicable to extension of withdrawal of lands for military 
     purposes and that are consistent with this subtitle. Such 
     application shall be filed with the Department of the 
     Interior not later than four years before the termination 
     date.
       (c) Extension Process.--The withdrawal and reservation 
     established by this subtitle may not be extended except by an 
     Act or Joint Resolution of Congress.

     SEC. 2928. EARLY RELINQUISHMENT OF WITHDRAWAL.

       (a) Filing of Relinquishment Notice.--If, during the period 
     of withdrawal and reservation specified in section 2925, the 
     Secretary of the Navy decides to relinquish all or any 
     portion of the lands withdrawn and reserved under this 
     subtitle, the Secretary of the Navy shall file a notice of 
     intention to relinquish with the Secretary of the Interior.
       (b) Determination of Presence of Contamination.--Before 
     transmitting a relinquishment notice under subsection (a), 
     the Secretary of the Navy, in consultation with the Secretary 
     of the Interior, shall prepare a written determination 
     concerning whether and to what extent the lands to be 
     relinquished are contaminated with explosive, toxic, or other 
     hazardous wastes and substances. A copy of such determination 
     shall be transmitted with the relinquishment notice.
       (c) Decontamination and Remediation.--In the case of 
     contaminated lands which are the subject of a relinquishment 
     notice, the Secretary of the Navy shall decontaminate or 
     remediate the land to the extent that funds are appropriated 
     for such purpose if the Secretary of the Interior, in 
     consultation with the Secretary of the Navy, determines 
     that--
       (1) decontamination or remediation of the lands is 
     practicable and economically feasible, taking into 
     consideration the potential future use and value of the land; 
     and
       (2) upon decontamination or remediation, the land could be 
     opened to the operation of some or all of the public land 
     laws, including the mining laws.
       (d) Decontamination and Remediation Activities Subject to 
     Other Laws.--The activities of the Secretary of the Navy 
     under subsection (c) are subject to applicable laws and 
     regulations, including the Defense Environmental Restoration 
     Program established under section 2701 of title 10, United 
     States Code, the Comprehensive Environmental Response 
     Compensation and Liability Act of 1980 (42 U.S.C. 9601 et 
     seq.), and the Solid Waste Disposal Act (42 U.S.C. 6901 et 
     seq.).
       (e) Authority of Secretary of the Interior To Refuse 
     Contaminated Lands.--The Secretary of the Interior shall not 
     be required to accept lands specified in a relinquishment 
     notice if the Secretary of the Interior, after consultation 
     with the Secretary of the Navy, concludes that--
       (1) decontamination or remediation of any land subject to 
     the relinquishment notice is not practicable or economically 
     feasible;
       (2) the land cannot be decontaminated or remediated 
     sufficiently to be opened to operation of some or all of the 
     public land laws; or
       (3) a sufficient amount of funds are not appropriated for 
     the decontamination of the land.
       (f) Status of Contaminated Lands.--If, because of the 
     condition of the lands, the Secretary of the Interior 
     declines to accept jurisdiction of lands proposed for 
     relinquishment or, if at the expiration of the withdrawal 
     made under this subtitle, the Secretary of the Interior 
     determines that some of the lands withdrawn under this 
     subtitle are contaminated to an extent which prevents opening 
     such contaminated lands to operation of the public land 
     laws--
       (1) the Secretary of the Navy shall take appropriate steps 
     to warn the public of the contaminated state of such lands 
     and any risks associated with entry onto such lands;
       (2) after the expiration of the withdrawal, the Secretary 
     of the Navy shall retain jurisdiction over the withdrawn 
     lands, but shall undertake no activities on such lands except 
     in connection with the decontamination or remediation of such 
     lands; and
       (3) the Secretary of the Navy shall report to the Secretary 
     of the Interior and to the Congress concerning the status of 
     such lands and all actions taken under paragraphs (1) and 
     (2).
       (g) Subsequent Decontamination or Remediation.--If lands 
     covered by subsection (f) are subsequently decontaminated or 
     remediated and the Secretary of the Navy certifies that the 
     lands are safe for nonmilitary uses, the Secretary of the 
     Interior shall reconsider accepting jurisdiction over the 
     lands.
       (h) Revocation Authority.--Notwithstanding any other 
     provision of law, upon deciding that it is in the public 
     interest to accept jurisdiction over lands specified in a 
     relinquishment notice, the Secretary of the Interior may 
     revoke the withdrawal and reservation made under this 
     subtitle as it applies to such lands. If the decision be made 
     to accept the relinquishment and to revoke the withdrawal and 
     reservation, the Secretary of the Interior shall publish in 
     the Federal Register an appropriate order which shall--
       (1) terminate the withdrawal and reservation;
       (2) constitute official acceptance of full jurisdiction 
     over the lands by the Secretary of the Interior; and
       (3) state the date upon which the lands will be opened to 
     the operation of the public land laws, including the mining 
     laws, if appropriate.

     SEC. 2929. DELEGATION OF AUTHORITY.

       (a) Department of the Navy.--The functions of the Secretary 
     of the Navy under this subtitle may be delegated.
       (b) Department of Interior.--The functions of the Secretary 
     of the Interior under this subtitle may be delegated, except 
     that an order described in section 2928(h) may be approved 
     and signed only by the Secretary of the Interior, the Deputy 
     Secretary of the Interior, or an Assistant Secretary of the 
     Department of the Interior.

     SEC. 2930. HUNTING, FISHING, AND TRAPPING.

       All hunting, fishing, and trapping on the lands withdrawn 
     under this subtitle shall be conducted in accordance with 
     section 2671 of title 10, United States Code.

     SEC. 2931. HOLD HARMLESS.

       Any party conducting any mining, mineral, or geothermal 
     leasing activity on lands withdrawn and reserved under this 
     subtitle shall indemnify the United States against any costs, 
     fees, damages, or other liabilities (including costs of 
     litigation) incurred by the United States and arising from or 
     relating to such mining activities, including costs of 
     mineral materials disposal, whether arising under the 
     Comprehensive Environmental Response Compensation and 
     Liability Act of 1980, the Solid Waste Disposal Act, or 
     otherwise.
               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. Defense fixed asset acquisition/privatization.
Sec. 3104. Other defense activities.
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.

[[Page H9106]]

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. Stockpile stewardship program.
Sec. 3132. Manufacturing infrastructure for nuclear weapons stockpile.
Sec. 3133. Tritium production.
Sec. 3134. Modernization and consolidation of tritium recycling 
              facilities.
Sec. 3135. Production of high explosives.
Sec. 3136. Limitation on use of funds for certain research and 
              development purposes.
Sec. 3137. Prohibition on funding nuclear weapons activities with 
              People's Republic of China.
Sec. 3138. International cooperative stockpile stewardship programs.
Sec. 3139. Temporary authority relating to transfers of defense 
              environmental management funds.
Sec. 3140. Management structure for nuclear weapons production 
              facilities and nuclear weapons laboratories.
Sec. 3141. Accelerated schedule for isolating high-level nuclear waste 
              at the defense waste processing facility, Savannah River 
              Site.
Sec. 3142. Processing and treatment of high-level nuclear waste and 
              spent nuclear fuel rods.
Sec. 3143. Projects to accelerate closure activities at defense nuclear 
              facilities.
Sec. 3144. Payment of costs of operation and maintenance of 
              infrastructure at Nevada Test Site.

                       Subtitle D--Other Matters

Sec. 3151. Report on plutonium pit production and remanufacturing 
              plans.
Sec. 3152. Amendments relating to baseline environmental management 
              reports.
Sec. 3153. Requirement to develop future use plans for environmental 
              management program.
Sec. 3154. Report on Department of Energy liability at Department 
              superfund sites.
Sec. 3155. Requirement for annual five-year budget for the national 
              security programs of the Department of Energy.
Sec. 3156. Requirements for Department of Energy weapons activities 
              budgets for fiscal years after fiscal year 1997.
Sec. 3157. Repeal of requirement relating to accounting procedures for 
              Department of Energy funds.
Sec. 3158. Update of report on nuclear test readiness postures.
Sec. 3159. Reports on critical difficulties at nuclear weapons 
              laboratories and nuclear weapons production plants.
Sec. 3160. Extension of applicability of notice-and-wait requirement 
              regarding proposed cooperation agreements.
Sec. 3161. Sense of Senate relating to redesignation of defense 
              environmental restoration and waste management program.
Sec. 3162. Commission on maintaining United States nuclear weapons 
              expertise.
Sec. 3163. Sense of Congress regarding reliability and safety of 
              remaining nuclear forces.
Sec. 3164. Study on worker protection at the Mound facility.
Sec. 3165. Fiscal year 1998 funding for Greenville Road Improvement 
              Project, Livermore, California.
Sec. 3166. Fellowship program for development of skills critical to 
              Department of Energy nuclear weapons complex.

    Subtitle E--Defense Nuclear Environmental Cleanup and Management

Sec. 3171. Purpose.
Sec. 3172. Applicability.
Sec. 3173. Site manager.
Sec. 3174. Department of Energy orders.
Sec. 3175. Deployment of technology for remediation of defense nuclear 
              waste.
Sec. 3176. Performance-based contracting.
Sec. 3177. Designation of covered facilities as environmental cleanup 
              demonstration areas.
Sec. 3178. Definitions.
Sec. 3179. Termination.
Sec. 3180. Report.

 Subtitle F--Waste Isolation Pilot Plant Land Withdrawal Act Amendments

Sec. 3181. Short title.
Sec. 3182. Definitions.
Sec. 3183. Management plan.
Sec. 3184. Repeal of test phase and retrieval plans.
Sec. 3185. Test phase activities.
Sec. 3186. Disposal operations.
Sec. 3187. Environmental Protection Agency disposal regulations.
Sec. 3188. Compliance with environmental laws and regulations.
Sec. 3189. Sense of Congress on commencement of emplacement of 
              transuranic waste.
Sec. 3190. Decommissioning of WIPP.
Sec. 3191. Authorizations for economic assistance and miscellaneous 
              payments.
         Subtitle A--National Security Programs Authorizations

     SEC. 3101. WEAPONS ACTIVITIES.

       (a) Stockpile Stewardship.--Subject to subsection (d), 
     funds are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 1997 for stockpile 
     stewardship in carrying out weapons activities necessary for 
     national security programs in the amount of $1,661,767,000, 
     to be allocated as follows:
       (1) For core stockpile stewardship, $1,235,907,000, to be 
     allocated as follows:
       (A) For operation and maintenance, $1,147,570,000.
       (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), 
     $88,337,000, to be allocated as follows:
       Project 96-D-102, stockpile stewardship facilities 
     revitalization, Phase VI, various locations, $19,250,000.
       Project 96-D-103, ATLAS, Los Alamos National Laboratory, 
     Los Alamos, New Mexico, $15,100,000.
       Project 96-D-104, processing and environmental technology 
     laboratory (PETL), Sandia National Laboratories, Albuquerque, 
     New Mexico, $14,100,000.
       Project 96-D-105, contained firing facility addition, 
     Lawrence Livermore National Laboratory, Livermore, 
     California, $17,100,000.
       Project 95-D-102, Chemical and Metallurgy Research Building 
     upgrades project, Los Alamos National Laboratory, Los Alamos, 
     New Mexico, $15,000,000.
       Project 94-D-102, nuclear weapons research, development, 
     and testing facilities revitalization, Phase V, various 
     locations, $7,787,000.
       (2) For inertial fusion, $366,460,000, to be allocated as 
     follows:
       (A) For operation and maintenance, $234,560,000.
       (B) For the following plant project (including maintenance, 
     restoration, planning, construction, acquisition, and 
     modification of facilities, and land acquisition related 
     thereto), $131,900,000 to be allocated as follows:
       Project 96-D-111, national ignition facility, location to 
     be determined, $131,900,000.
       (3) For technology transfer and education, $59,400,000.
       (b) Stockpile Management.--Subject to subsection (d), funds 
     are hereby authorized to be appropriated to the Department of 
     Energy for fiscal year 1997 for stockpile management in 
     carrying out weapons activities necessary for national 
     security programs in the amount of $1,962,831,000, to be 
     allocated as follows:
       (1) For operation and maintenance, $1,868,470,000.
       (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), 
     $94,361,000, to be allocated as follows:
       Project 97-D-121, consolidated pit packaging system, Pantex 
     Plant, Amarillo, Texas, $870,000.
       Project 97-D-122, nuclear materials storage facility 
     renovation, Los Alamos National Laboratory, Los Alamos, New 
     Mexico, $4,000,000.
       Project 97-D-123, structural upgrades, Kansas City Plant, 
     Kansas City, Missouri, $1,400,000.
       Project 97-D-124, steam plant wastewater treatment facility 
     upgrade, Y-12 Plant, Oak Ridge, Tennessee, $600,000.
       Project 96-D-122, sewage treatment quality upgrade (STQU), 
     Pantex Plant, Amarillo, Texas, $100,000.
       Project 96-D-123, retrofit heating, ventilation, and air 
     conditioning and chillers for ozone protection, Y-12 Plant, 
     Oak Ridge, Tennessee, $7,000,000.
       Project 96-D-125, Washington measurements operations 
     facility, Andrews Air Force Base, Camp Springs, Maryland, 
     $3,825,000.
       Project 95-D-122, sanitary sewer upgrade, Y-12 Plant, Oak 
     Ridge, Tennessee, $10,900,000.
       Project 94-D-124, hydrogen fluoride supply system, Y-12 
     Plant, Oak Ridge, Tennessee, $4,900,000.
       Project 94-D-125, upgrade life safety, Kansas City Plant, 
     Kansas City, Missouri, $5,200,000.
       Project 94-D-127, emergency notification system, Pantex 
     Plant, Amarillo, Texas, $2,200,000.
       Project 93-D-122, life safety upgrades, Y-12 Plant, Oak 
     Ridge, Tennessee, $7,200,000.
       Project 93-D-123, complex-21, various locations, 
     $14,487,000.
       Project 88-D-122, facilities capability assurance program, 
     various locations, $21,940,000.
       Project 88-D-123, security enhancement, Pantex Plant, 
     Amarillo, Texas, $9,739,000.
       (c) Program Direction.--Subject to subsection (d), funds 
     are hereby authorized to be appropriated to the Department of 
     Energy for fiscal year 1997 for program direction in carrying 
     out weapons activities necessary for national security 
     programs in the amount of $313,404,000.
       (d) Adjustment.--The total amount authorized to be 
     appropriated pursuant to this section is the sum of the 
     amounts authorized to be appropriated in subsections (a) 
     through

[[Page H9107]]

     (c) reduced by $20,000,000 for use of prior year balances.

     SEC. 3102. ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT.

       (a) Environmental Restoration.--Subject to subsection (j), 
     funds are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 1997 for environmental 
     restoration in carrying out environmental restoration and 
     waste management activities necessary for national security 
     programs in the amount of $1,762,194,000, of which 
     $376,648,000 shall be allocated to the uranium enrichment 
     decontamination and decommissioning fund.
       (b) Waste Management.--Subject to subsection (j), funds are 
     hereby authorized to be appropriated to the Department of 
     Energy for fiscal year 1997 for waste management in carrying 
     out environmental restoration and waste management activities 
     necessary for national security programs in the amount of 
     $1,578,653,000, to be allocated as follows:
       (1) For operation and maintenance, $1,490,326,000.
       (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), 
     $88,327,000, to be allocated as follows:
       Project 97-D-402, tank farm restoration and safe 
     operations, Richland, Washington, $7,584,000.
       Project 96-D-408, waste management upgrades, various 
     locations, $11,246,000.
       Project 95-D-402, install permanent electrical service, 
     Waste Isolation Pilot Plant, Carlsbad, New Mexico, $752,000.
       Project 95-D-405, industrial landfill V and construction/
     demolition landfill VII, Y-12 Plant, Oak Ridge, Tennessee, 
     $200,000.
       Project 94-D-404, Melton Valley storage tank capacity 
     increase, Oak Ridge National Laboratory, Oak Ridge, 
     Tennessee, $6,345,000.
       Project 94-D-407, initial tank retrieval systems, Richland, 
     Washington, $12,600,000.
       Project 93-D-182, replacement of cross-site transfer 
     system, Richland, Washington, $8,100,000.
       Project 93-D-187, high-level waste removal from filled 
     waste tanks, Savannah River Site, Aiken, South Carolina, 
     $20,000,000.
       Project 89-D-174, replacement high-level waste evaporator, 
     Savannah River Site, Aiken, South Carolina, $11,500,000.
       Project 86-D-103, decontamination and waste treatment 
     facility, Lawrence Livermore National Laboratory, Livermore, 
     California, $10,000,000.
       (c) Nuclear Materials and Facilities Stabilization.--
     Subject to subsection (j), funds are hereby authorized to be 
     appropriated to the Department of Energy for fiscal year 1997 
     for nuclear materials and facilities stabilization in 
     carrying out environmental restoration and waste management 
     activities necessary for national security programs in the 
     amount of $1,291,290,000 to be allocated as follows:
       (1) For operation and maintenance, $1,173,718,000.
       (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), 
     $117,572,000, to be allocated as follows:
       Project 97-D-450, Actinide packaging and storage facility, 
     Savannah River Site, Aiken, South Carolina, $7,900,000.
       Project 97-D-451, B-Plant safety class ventilation 
     upgrades, Richland, Washington, $1,500,000.
       Project 97-D-470, environmental monitoring laboratory, 
     Savannah River Site, Aiken, South Carolina, $2,500,000.
       Project 97-D-473, health physics site support facility, 
     Savannah River Site, Aiken, South Carolina, $2,000,000.
       Project 96-D-406, spent nuclear fuels canister storage and 
     stabilization facility, Richland, Washington, $60,672,000.
       Project 96-D-461, electrical distribution upgrade, Idaho 
     National Engineering Laboratory, Idaho, $6,790,000.
       Project 96-D-464, electrical and utility systems upgrade, 
     Idaho Chemical Processing Plant, Idaho National Engineering 
     Laboratory, Idaho, $10,440,000.
       Project 96-D-471, chlorofluorocarbon heating, ventilation, 
     and air conditioning and chiller retrofit, Savannah River 
     Site, Aiken, South Carolina, $8,541,000.
       Project 95-E-600, hazardous materials management and 
     emergency response training center, Richland, Washington, 
     $7,900,000.
       Project 95-D-155, upgrade site road infrastructure, 
     Savannah River Site, South Carolina, $4,137,000.
       Project 95-D-456, security facilities consolidation, Idaho 
     Chemical Processing Plant, Idaho National Engineering 
     Laboratory, Idaho, $4,645,000.
       Project 94-D-401, emergency response facility, Idaho 
     National Engineering Laboratory, Idaho, $547,000.
       (d) Program Direction.--Subject to subsection (j), funds 
     are hereby authorized to be appropriated to the Department of 
     Energy for fiscal year 1997 for program direction in carrying 
     out environmental restoration and waste management activities 
     necessary for national security programs in the amount of 
     $411,511,000.
       (e) Technology Development.--Subject to subsection (j), 
     funds are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 1997 for technology 
     development in carrying out environmental restoration and 
     waste management activities necessary for national security 
     programs in the amount of $303,771,000.
       (f) Policy and Management.--Subject to subsection (j), 
     funds are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 1997 for policy and 
     management in carrying out environmental restoration and 
     waste management activities necessary for national security 
     programs in the amount of $23,155,000.
       (g) Environmental Science Program.--Subject to subsection 
     (j), funds are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 1997 for the 
     environmental science program in carrying out environmental 
     restoration and waste management activities necessary for 
     national security programs in the amount of $62,136,000.
       (h) Environmental Management Privatization.--Subject to 
     subsection (j), funds are hereby authorized to be 
     appropriated to the Department of Energy for fiscal year 1997 
     for environmental management privatization in carrying out 
     environmental restoration and waste management activities 
     necessary for national security programs in the amount of 
     $185,000,000.
       (i) Closure Projects.--Subject to subsection (j), funds are 
     hereby authorized to be appropriated to the Department of 
     Energy for fiscal year 1997 for closure projects selected 
     under section 3143 in the amount of $50,000,000.
       (j) Adjustments.--The total amount authorized to be 
     appropriated pursuant to this section is the sum of the 
     amounts authorized to be appropriated in subsections (a) 
     through (i) reduced by the sum of--
       (1) $150,400,000, for use of prior year balances; and
       (2) $8,000,000, for Savannah River Pension Refund.

     SEC. 3103. DEFENSE FIXED ASSET ACQUISITION/PRIVATIZATION.

       Funds are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 1997 for the defense 
     fixed asset acquisition/privatization program in the amount 
     of $182,000,000.

     SEC. 3104. OTHER DEFENSE ACTIVITIES.

       (a) In General.--Subject to subsection (b), funds are 
     hereby authorized to be appropriated to the Department of 
     Energy for fiscal year 1997 for other defense activities in 
     carrying out programs necessary for national security in the 
     amount of $1,590,231,000, to be allocated as follows:
       (1) For verification and control technology, $456,348,000, 
     to be allocated as follows:
       (A) For nonproliferation and verification research and 
     development, $204,919,000.
       (B) For arms control, $216,244,000.
       (C) For intelligence, $35,185,000.
       (2) For nuclear safeguards and security, $47,208,000.
       (3) For security investigations, $22,000,000.
       (4) For emergency management, $16,794,000.
       (5) For program direction, $88,122,000.
       (6) For international nuclear safety, $15,200,000.
       (7) For environment, safety, and health, defense, 
     $63,800,000.
       (8) For worker and community transition assistance, 
     $67,000,000.
       (9) For fissile materials disposition, $93,796,000, to be 
     allocated as follows:
       (A) For operation and maintenance, $76,796,000.
       (B) For the following plant project (including maintenance, 
     restoration, planning, construction, acquisition, and 
     modification of facilities, and land acquisition related 
     thereto):
       Project 97-D-140, consolidated special nuclear materials 
     storage facility, site to be determined, $17,000,000.
       (10) For nuclear security/Russian production reactor 
     shutdown, $6,000,000.
       (11) For naval reactors development, $681,932,000, to be 
     allocated as follows:
       (A) For operation and infrastructure, $649,330,000.
       (B) For program direction, $18,902,000.
       (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), 
     $13,700,000, to be allocated as follows:
       Project 97-D-201, advanced test reactor secondary coolant 
     refurbishment, Idaho National Engineering Laboratory, Idaho, 
     $400,000.
       Project 95-D-200, laboratory systems and hot cell upgrades, 
     various locations, $4,800,000.
       Project 95-D-201, advanced test reactor radioactive waste 
     system upgrades, Idaho National Engineering Laboratory, 
     Idaho, $500,000.
       Project 90-N-102, expended core facility dry cell project, 
     Naval Reactors Facility, Idaho, $8,000,000.
       (b) Adjustment.--The total amount authorized to be 
     appropriated pursuant to this section is the sum of the 
     amounts authorized to be appropriated in paragraphs (1) 
     through (10) of subsection (a) reduced by $25,500,000 for use 
     of prior year balances.

     SEC. 3105. DEFENSE NUCLEAR WASTE DISPOSAL.

       Funds are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 1997 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 $200,000,000.

[[Page H9108]]

                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.
       (c) Report on Permanent Authorization of Appropriations for 
     General Plant Projects.--(1) Not later than February 1, 1997, 
     the Secretary of Energy shall submit to the congressional 
     defense committees a report on the desirability of a 
     permanent authorization of appropriations for the defense 
     general plant projects and civilian general plant projects of 
     the Department of Energy.
       (2) If the Secretary determines for purposes of the report 
     under paragraph (1) that a permanent authorization of 
     appropriations is desirable, the report shall include--
       (A) recommendations for legislation to provide for a 
     permanent authorization of appropriations, including a 
     formula for adjusting for inflation the amount authorized to 
     be appropriated for the projects to be covered by such 
     authorization of appropriations; and
       (B) a description of the actions to be undertaken by the 
     Secretary to control costs with respect to such projects, 
     including any actions that may depend on the size, nature, or 
     scope of the project concerned.

     SEC. 3123. LIMITS ON CONSTRUCTION PROJECTS.

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

     SEC. 3124. FUND TRANSFER AUTHORITY.

       (a) Transfer to Other Federal Agencies.--The Secretary of 
     Energy may transfer funds authorized to be appropriated to 
     the Department of Energy pursuant to this title to other 
     Federal agencies for the performance of work for which the 
     funds were authorized. Funds so transferred may be merged 
     with and be available for the same purposes and for the same 
     period as the authorizations of the Federal agency to which 
     the amounts are transferred.
       (b) Transfer Within Department of Energy; 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 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 section to transfer 
     authorizations--
       (A) may only be used to provide funds for items relating to 
     weapons activities necessary for national security programs 
     that have a higher priority than the items from which the 
     funds are transferred; and
       (B) may not be used to provide authority for an item that 
     has been denied funds by Congress.
       (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 for Conceptual Design.--(1) Subject to 
     paragraph (2) and except as provided in paragraph (3), before 
     submitting to Congress a request for funds for a construction 
     project that is in support of a national security program of 
     the Department of Energy, the Secretary of Energy shall 
     complete a conceptual design for that project. The Secretary 
     shall submit to Congress a report on each conceptual design 
     completed under this paragraph.
       (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 this title, the Secretary of Energy may 
     carry out construction design (including architectural and 
     engineering services) in connection with any proposed 
     construction project if the total estimated cost for such 
     design does not exceed $600,000.
       (2) If the total estimated cost for construction design in 
     connection with any construction project exceeds $600,000, 
     funds for such design must be specifically authorized by law.

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

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

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

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

     SEC. 3128. AVAILABILITY OF FUNDS.

       When so specified in an appropriations 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. STOCKPILE STEWARDSHIP PROGRAM.

       (a) Purpose.--The purpose of this section is to provide for 
     the enhanced implementation of the Department of Energy 
     stockpile stewardship and management program, in order to 
     provide greater confidence in the safety and continuing 
     reliability of the nuclear weapons stockpile.
       (b) Funding.--Of the funds authorized to be appropriated to 
     the Department of Energy pursuant to section 3101, 
     $85,000,000 shall be available to enhance the Department's 
     stockpile stewardship and management program for activities 
     determined appropriate

[[Page H9109]]

     by the Secretary of Energy, including the following:
       (1) Enhanced surveillance of the nuclear weapons stockpile.
       (2) Dual revalidation of the warheads in the nuclear 
     weapons stockpile.
       (3) Stockpile life extension programs.
       (4) Production capability assurance programs for critical 
     non-nuclear components.
       (5) Accelerating capability to produce prototype war 
     reserve-quality plutonium pits.
       (6) Conducting subcritical tests.
       (c) Report.--Not later than 60 days after the date of the 
     enactment of this Act, the Secretary of Energy shall submit 
     to the congressional defense committees a report on the 
     obligations the Secretary has incurred, and plans to incur, 
     during fiscal year 1997 for the funds made available by 
     subsection (b).

     SEC. 3132. MANUFACTURING INFRASTRUCTURE FOR NUCLEAR WEAPONS 
                   STOCKPILE.

       (a) General Program Requirements.--Subsection (a) of 
     section 3137 of the National Defense Authorization Act for 
     Fiscal Year 1996 (Public Law 104-106; 110 Stat. 620; 42 
     U.S.C. 2121 note) is amended--
       (1) by inserting ``(1)'' before ``The Secretary of 
     Energy'';
       (2) by redesignating paragraphs (1) through (5) as 
     subparagraphs (A) through (E), respectively; and
       (3) by adding at the end the following:
       ``(2) The purpose of the program carried out under 
     paragraph (1) shall also be to develop manufacturing 
     capabilities and capacities necessary to meet the 
     requirements specified in the annual Nuclear Weapons 
     Stockpile Review.''.
       (b) Required Capabilities.--Subsection (b)(3) of such 
     section is amended to read as follows:
       ``(3) The capabilities of the Savannah River Site relating 
     to tritium recycling and fissile materials components 
     processing and fabrication.''.
       (c) Plan and Report.--Not later than March 1, 1997, the 
     Secretary of Energy shall submit to Congress a report 
     containing a plan for carrying out the program established 
     under section 3137(a) of the National Defense Authorization 
     Act for Fiscal Year 1996, as amended by this section. The 
     report shall set forth the obligations that the Secretary has 
     incurred, and proposes to incur, during fiscal year 1997 in 
     carrying out the program.
       (d) Funding.--Of the funds authorized to be appropriated 
     pursuant to section 3101, $90,000,000 shall be available for 
     carrying out the program established under section 3137(a) of 
     the National Defense Authorization Act for Fiscal Year 1996, 
     as so amended.

     SEC. 3133. TRITIUM PRODUCTION.

       (a) Acceleration of Tritium Production.--(1) The Secretary 
     of Energy shall, during fiscal year 1997, 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 of the Nuclear Weapons 
     Stockpile Memorandum relating to tritium production, 
     including the new 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 ``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 reactor program and the commercial 
     light water reactor program.
       (b) Report.--(1) Not later than April 15, 1997, the 
     Secretary shall submit to Congress a report that sets forth 
     the final decision of the Secretary under subsection (a)(1). 
     The report shall set forth in detail--
       (A) the technologies decided on under that subsection; and
       (B) the accelerated schedule for the production of tritium 
     decided on under that subsection.
       (2) If the Secretary determines that it is not possible to 
     make the final decision by the date specified in paragraph 
     (1), the Secretary shall submit to Congress on that date a 
     report that explains in detail why the final decision cannot 
     be made by that date.
       (c) New Tritium Production Facility.--The Secretary shall 
     commence planning and design activities and infrastructure 
     development for a new tritium production facility.
       (d) In-Reactor Tests.--The Secretary may perform in-reactor 
     tests of tritium target rods as part of the activities 
     carried out under the commercial light water reactor program.
       (e) Funding.--Of the funds authorized to be appropriated to 
     the Department of Energy pursuant to section 3101(b)(1), 
     $160,000,000 shall be available for activities related to 
     tritium production.

     SEC. 3134. MODERNIZATION AND CONSOLIDATION OF TRITIUM 
                   RECYCLING FACILITIES.

       (a) In General.--The Secretary of Energy shall carry out 
     activities at the Savannah River Site, South Carolina, to--
       (1) modernize and consolidate the facilities for recycling 
     tritium for weapons; and
       (2) provide a modern tritium extraction facility so as to 
     ensure that such facilities have a capacity to recycle 
     tritium from weapons that is adequate to meet the 
     requirements for tritium for weapons specified in the Nuclear 
     Weapons Stockpile Memorandum.
       (b) Funding.--Of the funds authorized to be appropriated to 
     the Department of Energy pursuant to section 3101, not more 
     than $9,000,000 shall be available for activities under 
     subsection (a).

     SEC. 3135. PRODUCTION OF HIGH EXPLOSIVES.

       No funds appropriated or otherwise made available to the 
     Department of Energy for fiscal year 1997 or any prior fiscal 
     year may be used to move, or prepare to move, the manufacture 
     and fabrication of high explosives and energetic materials 
     for use as components in nuclear weapons systems from the 
     Pantex Plant, Amarillo, Texas, to any other site or facility.

     SEC. 3136. LIMITATION ON USE OF FUNDS FOR CERTAIN RESEARCH 
                   AND DEVELOPMENT PURPOSES.

       (a) Limitation.--No funds authorized to be appropriated or 
     otherwise made available to the Department of Energy for 
     fiscal year 1997 under section 3101 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 national security mission of the 
     Department of Energy.
       (b) Annual Report.--(1) The Secretary of Energy shall 
     annually submit to the congressional defense committees a 
     report on the funds expended during the preceding fiscal year 
     on activities under the Department of Energy Laboratory 
     Directed Research and Development Program. The purpose of the 
     report is to permit an assessment of the extent to which such 
     activities support the national security mission of the 
     Department of Energy.
       (2) Each report shall be prepared by the officials 
     responsible for Federal oversight of the funds expended on 
     activities under the program.
       (3) Each report shall set forth the criteria utilized by 
     the officials preparing the report in determining whether or 
     not the activities reviewed by such officials support the 
     national security mission of the Department.

     SEC. 3137. PROHIBITION ON FUNDING NUCLEAR WEAPONS ACTIVITIES 
                   WITH PEOPLE'S REPUBLIC OF CHINA.

       (a) Funding Prohibition.--No funds authorized to be 
     appropriated or otherwise available to the Department of 
     Energy for fiscal year 1997 may be obligated or expended for 
     any activity associated with the conduct of cooperative 
     programs relating to nuclear weapons or nuclear weapons 
     technology, including stockpile stewardship, safety, and use 
     control, with the People's Republic of China.
       (b) Report.--(1) The Secretary of Energy shall prepare, in 
     consultation with the Secretary of Defense, a report 
     containing a description of all discussions and activities 
     between the United States and the People's Republic of China 
     regarding nuclear weapons matters that have occurred before 
     the date of the enactment of this Act and that are planned to 
     occur after such date. For each such discussion or activity, 
     the report shall include--
       (A) the authority under which the discussion or activity 
     took or will take place;
       (B) the subject of the discussion or activity;
       (C) participants or likely participants;
       (D) the source and amount of funds used or to be used to 
     pay for the discussion or activity; and
       (E) a description of the actions taken or to be taken to 
     ensure that no classified information or unclassified 
     controlled information was or will be revealed, and a 
     determination of whether classified information or 
     unclassified controlled information was revealed in previous 
     discussions.
       (2) The report shall be submitted to the Committee on Armed 
     Services of the Senate and the Committee on National Security 
     of the House of Representatives not later than January 15, 
     1997.

     SEC. 3138. 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 1997 may be obligated or expended to 
     conduct any activities associated with international 
     cooperative stockpile stewardship.
       (b) Exception.--Subsection (a) does not apply--
       (1) with respect to such activities conducted between the 
     United States and the United Kingdom and between the United 
     States and France; and
       (2) to activities carried out under title XV of this Act 
     (relating to cooperative threat reduction with states of the 
     former Soviet Union).

     SEC. 3139. TEMPORARY AUTHORITY RELATING TO TRANSFERS OF 
                   DEFENSE ENVIRONMENTAL MANAGEMENT FUNDS.

       (a) Transfer Authority for Defense Environmental Management 
     Funds.--The Secretary of Energy shall provide the manager of 
     each field office of the Department of Energy with the 
     authority to transfer defense environmental management funds 
     from a program or project under the jurisdiction of the 
     office to another such program or project. Any such transfer 
     may be made only once in a fiscal year to or from a program 
     or project, and the amount transferred to or from a program 
     or project may not exceed $5,000,000 in a fiscal year.
       (b) Determination.--A transfer may not be carried out by a 
     manager of a field office

[[Page H9110]]

     pursuant to the authority provided under subsection (a) 
     unless the manager determines that such transfer is necessary 
     to address a risk to health, safety, or the environment or to 
     assure the most efficient use of defense environmental 
     management funds at that field office.
       (c) Exemption From Reprogramming Requirements.--The 
     requirements of section 3121 shall not apply to transfers of 
     funds pursuant to subsection (a).
       (d) Notification.--The Secretary of Energy, acting through 
     the Assistant Secretary of Energy for Environmental 
     Management, shall notify Congress of any transfer of funds 
     pursuant to subsection (a) not later than 30 days after such 
     a transfer occurs.
       (e) Limitation.--Funds transferred pursuant to subsection 
     (a) may not be used for an item for which Congress has 
     specifically denied funds or for a new program or project 
     that has not been authorized by Congress.
       (f) Definitions.--In this section:
       (1) The term ``program or project'' means, with respect to 
     a field office of the Department of Energy, any of the 
     following:
       (A) A project listed in subsection (b) or (c) of section 
     3102 being carried out by the office.
       (B) A program referred to in subsection (a), (b), (c), (e), 
     (g), or (h) of section 3102 being carried out by the office.
       (C) A project or program not described in subparagraph (A) 
     or (B) that is for environmental restoration or waste 
     management activities necessary for national security 
     programs of the Department of Energy, that is being carried 
     out by the office, and for which defense environmental 
     management funds have been authorized and appropriated before 
     the date of the enactment of this Act.
       (2) The term ``defense environmental management funds'' 
     means funds appropriated to the Department of Energy pursuant 
     to an authorization for carrying out environmental 
     restoration and waste management activities necessary for 
     national security programs.
       (g) Duration of Authority.--The authority provided under 
     subsection (a) to a manager of a field office shall be in 
     effect from the date of the enactment of this Act to 
     September 30, 1997.
       (h) Report.--Not later than September 1, 1997, the 
     Secretary of Energy shall submit to the congressional defense 
     committees a report on the effectiveness of the authority 
     provided under subsection (a) in meeting an objective 
     specified in subsection (b). The report shall include 
     recommendations on whether the duration of the authority, as 
     provided in subsection (g), should be extended.

     SEC. 3140. MANAGEMENT STRUCTURE FOR NUCLEAR WEAPONS 
                   PRODUCTION FACILITIES AND NUCLEAR WEAPONS 
                   LABORATORIES.

       (a) Limitation on Delegation of Authority.--(1) The 
     Secretary of Energy, in carrying out national security 
     programs, may delegate specific management and planning 
     authority over matters relating to site operation of the 
     facilities and laboratories covered by this section only to 
     the Assistant Secretary of Energy for Defense Programs. Such 
     Assistant Secretary may redelegate such authority only to 
     managers of area offices of the Department of Energy located 
     at such facilities and laboratories.
       (2) Nothing in this section may be construed as affecting 
     the delegation by the Secretary of Energy of authority 
     relating to reporting, management, and oversight of matters 
     relating to the Department of Energy generally, or safety, 
     environment, and health at such facilities and laboratories.
       (b) Requirement to Consult with Area Offices.--The 
     Assistant Secretary of Energy for Defense Programs, in 
     exercising any delegated authority to oversee management of 
     matters relating to site operation of a facility or 
     laboratory, shall exercise such authority only after direct 
     consultation with the manager of the area office of the 
     Department of Energy located at the facility or laboratory.
       (c) Requirement for Direct Communication from Area 
     Offices.--The Secretary of Energy, acting through the 
     Assistant Secretary of Energy for Defense Programs, shall 
     require the head of each area office of the Department of 
     Energy located at each facility and laboratory covered by 
     this section to report on matters relating to site operation 
     other than those matters set forth in subsection (a)(2) 
     directly to the Assistant Secretary of Energy for Defense 
     Programs, without obtaining the approval or concurrence of 
     any other official within the Department of Energy.
       (d) Defense Programs Reorganization Plan and Report.--(1) 
     The Secretary of Energy shall develop a plan to reorganize 
     the field activities and management of the national security 
     functions of the Department of Energy.
       (2) Not later than 120 days after the date of the enactment 
     of this Act, the Secretary shall submit to Congress a report 
     on the plan developed under paragraph (1). The report shall 
     specifically identify all significant functions performed by 
     the operations offices relating to any of the facilities and 
     laboratories covered by this section and which of those 
     functions could be performed--
       (A) by the area offices of the Department of Energy located 
     at the facilities and laboratories covered by this section; 
     or
       (B) by the Assistant Secretary of Energy for Defense 
     Programs.
       (3) The report also shall address and make recommendations 
     with respect to other internal streamlining and 
     reorganization initiatives that the Department could 
     pursue with respect to military or national security 
     programs.
       (e) Defense Programs Management Council.--The Secretary of 
     Energy shall establish a council to be known as the ``Defense 
     Programs Management Council''. The Council shall advise the 
     Secretary on policy matters, operational concerns, strategic 
     planning, and development of priorities relating to the 
     national security functions of the Department of Energy. The 
     Council shall be composed of the directors of the facilities 
     and laboratories covered by this section and shall report 
     directly to the Assistant Secretary of Energy for Defense 
     Programs.
       (f) Covered Site Operations.--For purposes of this section, 
     matters relating to site operation of a facility or 
     laboratory include matters relating to personnel, budget, and 
     procurement in national security programs.
       (g) Covered Facilities and Laboratories.--This section 
     applies to the following facilities and laboratories of the 
     Department of Energy:
       (1) The Kansas City Plant, Kansas City, Missouri.
       (2) The Pantex Plant, Amarillo, Texas.
       (3) The Y-12 Plant, Oak Ridge, Tennessee.
       (4) The Savannah River Site, Aiken, South Carolina.
       (5) Los Alamos National Laboratory, Los Alamos, New Mexico.
       (6) Sandia National Laboratories, Albuquerque, New Mexico.
       (7) Lawrence Livermore National Laboratory, Livermore, 
     California.
       (8) The Nevada Test Site, Nevada.

     SEC. 3141. ACCELERATED SCHEDULE FOR ISOLATING HIGH-LEVEL 
                   NUCLEAR WASTE AT THE DEFENSE WASTE PROCESSING 
                   FACILITY, SAVANNAH RIVER SITE.

       The Secretary of Energy shall accelerate the schedule for 
     the isolation of high-level nuclear waste in glass canisters 
     at the Defense Waste Processing Facility at the Savannah 
     River Site, South Carolina, if the Secretary determines that 
     the acceleration of such schedule--
       (1) will achieve long-term cost savings to the Federal 
     Government; and
       (2) could accelerate the removal and isolation of high-
     level nuclear waste from long-term storage tanks at the site.

     SEC. 3142. PROCESSING AND TREATMENT OF HIGH-LEVEL NUCLEAR 
                   WASTE AND SPENT NUCLEAR FUEL RODS.

       (a) In General.--(1) In order to provide for an effective 
     response to requirements for managing the spent nuclear fuel 
     described in paragraph (2), there shall be available to the 
     Secretary of Energy, from amounts authorized to be 
     appropriated pursuant to section 3102(c), the following 
     amounts for the purposes stated:
       (A) Not more than $43,000,000 for the development and 
     implementation of a program to accelerate the receipt, 
     processing (including the H-canyon restart operations), 
     reprocessing, separation, reduction, deactiviation, 
     stabilization, isolation, and interim storage of high-level 
     nuclear waste associated with Department of Energy aluminum 
     clad spent fuel rods, foreign spent fuel rods, and other 
     nuclear materials.
       (B) Not more than $15,000,000 for the development and 
     implementation of a program for the receipt, treatment, 
     preparation, conditioning, interim storage, and final 
     disposition of high-level nuclear waste and spent nuclear 
     fuel (including naval spent nuclear fuel), non-aluminum clad 
     fuel rods, and foreign fuel rods.
       (2) The spent nuclear fuel referred to in paragraph (1) is 
     the following:
       (A) Spent nuclear fuel that is sent to Department of Energy 
     consolidation sites pursuant to the Department of Energy 
     Programmatic Spent Nuclear Fuel Management and Idaho National 
     Engineering Laboratory Environmental Restoration and Waste 
     Management Programs Final Environmental Impact Statement, 
     dated April 1995.
       (B) Spent nuclear fuel described in the Interim Management 
     of Nuclear Materials Environmental Impact Statement, dated 
     October 1995.
       (C) Other spent nuclear fuel located at the Savannah River 
     Site as of the date of the enactment of this Act.
       (3) The amounts made available under paragraph (1) are in 
     addition to other amounts authorized to be appropriated by 
     section 3102(c) for the purposes stated in subparagraphs (A) 
     and (B) of that paragraph.
       (b) Use of Funds for Settlement Agreement.--Funds made 
     available pursuant to subsection (a)(1)(B) for the Idaho 
     National Engineering Laboratory shall be considered to be 
     funds made available in partial fulfillment of the terms and 
     obligations set forth in the settlement agreement entered 
     into by the United States with the State of Idaho in the 
     actions captioned Public Service Co. of Colorado v. Batt, 
     Civil No. 91-0035-S-EJL, and United States v. Batt, Civil No. 
     91-0054-S-EJL, in the United States District Court for the 
     District of Idaho and the consent order of the United States 
     District Court for the District of Idaho, dated October 17, 
     1995, that effectuates the settlement agreement.
       (c) Amendments to Implementation Plan for Managing Spent 
     Nuclear Fuel at Certain Sites.--Section 3142(b) of the 
     National Defense Authorization Act for Fiscal Year 1996 
     (Public Law 104-106; 110 Stat. 622) is amended--
       (1) by striking out ``April 30, 1996'' and inserting in 
     lieu thereof ``September 30, 1996'';
       (2) by striking out ``and'' at the end of paragraph (3);

[[Page H9111]]

       (3) by striking out the period at the end of paragraph (4) 
     and inserting in lieu thereof ``; and''; and
       (4) by adding at the end the following new paragraph:
       ``(5) an assessment of the progress made in implementing 
     the programs.''.
       (d) Near-Term Plan for Processing Spent Fuel Rods at 
     Savannah River Site.--(1) Not later than March 15, 1997, the 
     Secretary of Energy shall submit to Congress a plan for a 
     near-term program to process, treat, package, and dispose of 
     spent nuclear fuel rods described in paragraph (2) at the 
     Savannah River Site. The plan shall include cost projections 
     and resource requirements for the program and identify 
     program milestones for the program.
       (2) The spent nuclear fuel rods to be included in the 
     program referred to in paragraph (1) are the following:
       (A) Spent nuclear fuel rods produced at the Savannah River 
     Site.
       (B) Spent nuclear fuel rods being sent to the site from 
     other Department of Energy facilities for processing, interim 
     storage, and other treatment.
       (C) Foreign spent nuclear fuel rods being sent to the site 
     for processing, interim storage, and other treatment.
       (e) Multi-Year Plan for Clean-Up at Savannah River Site.--
     The Secretary shall develop and implement a multi-year plan 
     for the clean-up of nuclear waste at the Savannah River Site 
     that results, or has resulted, from the following:
       (1) Nuclear weapons activities carried out at the site.
       (2) The processing, treating, packaging, and disposal of 
     Department of Energy domestic and foreign spent nuclear fuel 
     rods at the site.
       (f) Requirement for Continuing Operations at Savannah River 
     Site.--The Secretary shall continue operations and maintain a 
     high state of readiness at the H-canyon facility and the F-
     canyon facility at the Savannah River Site, and shall provide 
     technical staff necessary to operate and so maintain such 
     facilities, pending the development and implementation of the 
     plan referred to in subsection (e).

     SEC. 3143. PROJECTS TO ACCELERATE CLOSURE ACTIVITIES AT 
                   DEFENSE NUCLEAR FACILITIES.

       (a) In General.--The Secretary of Energy shall select and 
     carry out closure-acceleration projects in accordance with 
     this section.
       (b) Purpose.--The purpose of a closure-acceleration project 
     shall be, within a fixed period of time, to clean up or 
     decommission a Department of Energy defense nuclear facility 
     or portion thereof and to make the facility safe by 
     stabilizing, consolidating, treating, or removing nuclear 
     materials from the facility in order to reduce significantly 
     or eliminate future costs at the facility.
       (c) Eligible Projects.--(1) The Secretary of Energy may 
     establish a closure-acceleration project as eligible for 
     selection under subsection (e) by--
       (A) developing a plan for the project that meets the 
     criteria under paragraph (2); and
       (B) determining that the project will achieve significant 
     long-term cost savings to the Federal Government from the 
     baseline cost estimate made by the Department of Energy for 
     the project.
       (2) A plan for a closure-acceleration project under this 
     section shall--
       (A) define a clear, delineated scope of work for completion 
     of the project;
       (B) demonstrate that, with respect to the site of the 
     proposed project, there is a regulatory agreement between the 
     Department of Energy and other appropriate authorities for 
     the implementation of environmental remediation requirements 
     that would allow for successful completion of the project;
       (C) demonstrate, to the maximum extent possible, the 
     support of State and local elected officials and the public 
     for the project;
       (D) contain performance-based provisions to be included in 
     the contract for the project, including--
       (i) clearly stated and results-oriented performance 
     criteria and measures;
       (ii) appropriate incentives for the contractor to meet and 
     exceed the performance criteria effectively and efficiently;
       (iii) appropriate criteria and incentives for the 
     contractor to seek and engage subcontractors who may more 
     effectively and efficiently perform either unique and 
     technologically challenging tasks or routine and 
     interchangeable services;
       (iv) specific incentives for cost savings;
       (v) financial accountability; and
       (vi) when appropriate, reduction of fee for failure to meet 
     minimum performance criteria and standards;
       (E) demonstrate that the project will use new and 
     innovative cleanup and waste management technology with 
     potential for application to other locations and facilities 
     without requiring the development of new technologies; and
       (F) demonstrate that the project can be completed within 10 
     years from the date of its selection.
       (d) Program Administration.--The Secretary of Energy, 
     acting through the Assistant Secretary for Environmental 
     Management, shall implement a program to carry out the 
     provisions of this section.
       (e) Selection of Projects.--(1) The Secretary of Energy 
     shall select closure-acceleration projects to be carried out 
     under this section from among those projects established as 
     eligible under subsection (c) that will result in the most 
     significant long-term costs savings to the Government and the 
     most significant reduction of imminent risk.
       (2) For each project selected, the Secretary shall submit 
     to Congress a report setting forth the reasons why the 
     project was selected, based on the criteria under subsection 
     (c)(2) and paragraph (1) of this subsection.
       (f) Multiyear Contracts.--Notwithstanding section 304B(d) 
     of the Federal Property and Administrative Services Act of 
     1949 (41 U.S.C.254c(d)), the Secretary of Energy may enter 
     into multiyear contracts to carry out projects selected under 
     this section for up to 10 program years.
       (g) Funding.--(1) In the budget submitted to Congress under 
     section 1105(a) of title 31, United States Code, each year, 
     the President shall set forth funds for carrying out closure-
     acceleration projects under this section as a separate item 
     in the environmental restoration and waste management account 
     of the Department of Energy budget.
       (2) Funds appropriated for purposes of carrying out 
     projects under this section shall remain available until 
     expended.
       (3) If a closure-acceleration project is being carried out 
     at a defense nuclear facility with funds appropriated for 
     such projects, the Secretary of Energy may not reduce the 
     funds otherwise allocated to that defense nuclear facility 
     for environmental restoration and waste management by reason 
     of the funds being used for the project at that facility.
       (4) Funds appropriated for purposes of carrying out 
     projects under this section may not be used for an item for 
     which Congress has specifically denied funds or for a new 
     program or project that has not been authorized by Congress.
       (h) Annual Report.--The Secretary of Energy shall submit 
     each year to Congress a report on the status of each closure-
     acceleration project being carried out under this section. 
     The report shall include, for each such project, the 
     following:
       (1) A description of the funding already provided for the 
     project.
       (2) A description of the extent of the cleanup, 
     decommissioning, stabilization, consolidation, treatment, or 
     removal activities completed.
       (3) A comparison of the actual results of the project to 
     the original proposal and the actual cost of the project to 
     the originally proposed cost.
       (4) A description of the funding needed in future fiscal 
     years for completion of the project.
       (i) Duration of Program.--No closure-acceleration project 
     selected under this section may be carried out after the 
     expiration of the 15-year period beginning on the date of the 
     enactment of this Act.
       (j) Savings Provision.--Nothing in this section may be 
     construed to affect statutory requirements for an 
     environmental restoration or waste management activity or 
     project or to modify or otherwise affect applicable statutory 
     or regulatory environmental restoration and waste management 
     requirements, including substantive standards intended to 
     protect public health and the environment, nor shall anything 
     in this section be construed to preempt or impair any local 
     land use planning or zoning authority or State authority.

     SEC. 3144. PAYMENT OF COSTS OF OPERATION AND MAINTENANCE OF 
                   INFRASTRUCTURE AT NEVADA TEST SITE.

       Notwithstanding any other provision of law and effective as 
     of September 30, 1996, the costs associated with operating 
     and maintaining the infrastructure at the Nevada Test Site, 
     Nevada, with respect to any activities initiated at the site 
     after that date by the Department of Defense pursuant to a 
     work-for-others agreement may be paid for from funds 
     authorized to be appropriated to the Department of Energy for 
     activities at the Nevada Test Site.
                       Subtitle D--Other Matters

     SEC. 3151. REPORT ON PLUTONIUM PIT PRODUCTION AND 
                   REMANUFACTURING PLANS.

       (a) Report Requirement.--The Secretary of Energy shall 
     submit to the congressional defense committees a report on 
     plans for achieving the capability to produce and 
     remanufacture plutonium pits. The report shall include a 
     description of the baseline plan of the Department of Energy 
     for achieving such capability, including the following:
       (1) The funding necessary, by fiscal year, to achieve the 
     capability.
       (2) The schedule necessary to achieve the capability, 
     including important technical and programmatic milestones.
       (3) Siting, capacity for expansion, and other issues 
     included in the baseline plan.
       (b) Deadline.--The report required by subsection (a) shall 
     be submitted not later than 60 days after the date of the 
     enactment of this Act.

     SEC. 3152. AMENDMENTS RELATING TO BASELINE ENVIRONMENTAL 
                   MANAGEMENT REPORTS.

       Section 3153 of the National Defense Authorization Act for 
     Fiscal Year 1994 (42 U.S.C. 7274k) is amended--
       (1) in subsection (b)--
       (A) by striking out the first word in the heading and 
     inserting in lieu thereof ``Biennial''; and
       (B) in paragraph (2)(B), by inserting before ``year after 
     1995'' the following: ``odd-numbered''; and
       (2) in subsection (d)--
       (A) by striking out the first word in the heading and 
     inserting in lieu thereof ``Biennial'';
       (B) in paragraph (1)(B), by striking out ``in each year 
     thereafter'' and inserting in lieu

[[Page H9112]]

     thereof ``in each odd-numbered year thereafter''; and
       (C) in paragraph (2)(A)--
       (i) in the matter preceding clause (i), by striking out 
     ``fiscal year immediately'' and inserting in lieu thereof 
     ``two fiscal years immediately''; and
       (ii) in clause (ii), by striking out ``prior fiscal year'' 
     and inserting in lieu thereof ``prior fiscal years''.

     SEC. 3153. REQUIREMENT TO DEVELOP FUTURE USE PLANS FOR 
                   ENVIRONMENTAL MANAGEMENT PROGRAM.

       (a) Authority To Develop Future Use Plans.--The Secretary 
     of Energy may develop future use plans for any defense 
     nuclear facility at which environmental restoration and waste 
     management activities are occurring.
       (b) Requirement To Develop Future Use Plans.--The Secretary 
     shall develop a future use plan for each of the following 
     defense nuclear facilities:
       (1) Hanford Site, Richland, Washington.
       (2) Rocky Flats Plant, Golden, Colorado.
       (3) Savannah River Site, Aiken, South Carolina.
       (4) Idaho National Engineering Laboratory, Idaho.
       (c) Citizen Advisory Board.--(1) At each defense nuclear 
     facility for which the Secretary of Energy intends or is 
     required to develop a future use plan under this section and 
     for which no citizen advisory board has been established, the 
     Secretary shall establish a citizen advisory board.
       (2) The Secretary may authorize the manager of a defense 
     nuclear facility for which a future use plan is developed 
     under this section (or, if there is no such manager, an 
     appropriate official of the Department of Energy designated 
     by the Secretary) to pay routine administrative expenses of a 
     citizen advisory board established for that facility. Such 
     payments shall be made from funds available to the Secretary 
     for program direction in carrying out environmental 
     restoration and waste management activities necessary for 
     national security programs.
       (d) Requirement To Consult With Citizen Advisory Board.--In 
     developing a future use plan under this section with respect 
     to a defense nuclear facility, the Secretary of Energy shall 
     consult with a citizen advisory board established pursuant to 
     subsection (c) or a similar advisory board already in 
     existence as of the date of the enactment of this Act for 
     such facility, affected local governments (including any 
     local future use redevelopment authorities), and other 
     appropriate State agencies.
       (e) 50-Year Planning Period.--A future use plan developed 
     under this section shall cover a period of at least 50 years.
       (f) Deadlines.--For each facility listed in subsection (b), 
     the Secretary of Energy shall develop a draft future use plan 
     by October 1, 1997, and a final future use plan by March 15, 
     1998.
       (g) Report.--Not later than 60 days after completing 
     development of a final plan for a site listed in subsection 
     (b), the Secretary of Energy shall submit to Congress a 
     report on the plan. The report shall describe the plan and 
     contain such findings and recommendations with respect to the 
     site as the Secretary considers appropriate.
       (h)  Savings Provisions.--(1) Nothing in this section, or 
     in a future use plan developed under this section with 
     respect to a defense nuclear facility, shall be construed as 
     requiring any modification to a future use plan with respect 
     to a defense nuclear facility that was developed before the 
     date of the enactment of this Act.
       (2) Nothing in this section may be construed to affect 
     statutory requirements for an environmental restoration or 
     waste management activity or project or to modify or 
     otherwise affect applicable statutory or regulatory 
     environmental restoration and waste management requirements, 
     including substantive standards intended to protect public 
     health and the environment, nor shall anything in this 
     section be construed to preempt or impair any local land use 
     planning or zoning authority or State authority.

     SEC. 3154. REPORT ON DEPARTMENT OF ENERGY LIABILITY AT 
                   DEPARTMENT SUPERFUND SITES.

       (a) Study.--The Secretary of Energy shall, using funds 
     authorized to be appropriated to the Department of Energy by 
     section 3102, carry out a study to determine the extent and 
     valuation of the injury to, destruction of, or loss of 
     natural resources under section 107(a)(4)(C) of the 
     Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9607(a)(4)(C)) at each site 
     controlled or operated by the Department that is or is 
     anticipated to become subject to the provisions of that Act.
       (b) Conduct of Study.--(1) The Secretary shall carry out 
     the study using personnel of the Department or by contract 
     with an appropriate private entity.
       (2) In determining the extent and valuation of the injury 
     to, destruction of, or loss of natural resources for purposes 
     of the study, the Secretary shall--
       (A) treat the Department as a private person liable for 
     response, removal, and remediation costs and damages under 
     section 107(a)(4) of that Act (42 U.S.C. 9607(a)(4)) and 
     subject to an action for damages by public trustees of 
     natural resources under section 107(f) of that Act (42 U.S.C. 
     9607(f)) or by any other person pursuant to section 107(e) or 
     113(f) of that Act (42 U.S.C. 9607(e) and 9613(f)); and
       (B) determine the value of natural resource damages 
     associated with each site in accordance with all regulations 
     promulgated under section 301(c) of that Act (42 U.S.C. 
     9651(c)).
       (c) Report.--Not later than 90 days after the date of the 
     enactment of this Act, the Secretary shall submit a report on 
     the study carried out under subsection (a) to the following 
     committees:
       (1) The Committees on Environment and Public Works, Armed 
     Services, and Energy and Natural Resources of the Senate.
       (2) The Committees on Commerce, National Security, 
     Transportation and Infrastructure, and Resources of the House 
     of Representatives.

     SEC. 3155. REQUIREMENT FOR ANNUAL FIVE-YEAR BUDGET FOR THE 
                   NATIONAL SECURITY PROGRAMS OF THE DEPARTMENT OF 
                   ENERGY.

       (a) Requirement.--The Secretary of Energy shall prepare 
     each year a budget for the national security programs of the 
     Department of Energy for the five-year period beginning in 
     the year the budget is prepared. Each budget shall contain 
     the estimated expenditures and proposed appropriations 
     necessary to support the programs, projects, and activities 
     of the national security programs during the five-year period 
     covered by the budget and shall be at a level of detail 
     comparable to that contained in the budget submitted by the 
     President to Congress under section 1105 of title 31, United 
     States Code.
       (b) Submittal.--The Secretary shall submit each year to the 
     congressional defense committees the budget required under 
     subsection (a) in that year at the same time as the President 
     submits to Congress the budget for the coming fiscal year 
     pursuant to such section 1105.

     SEC. 3156. REQUIREMENTS FOR DEPARTMENT OF ENERGY WEAPONS 
                   ACTIVITIES BUDGETS FOR FISCAL YEARS AFTER 
                   FISCAL YEAR 1997.

       (a) In General.--The weapons activities budget of the 
     Department of Energy for any fiscal year after fiscal year 
     1997 shall--
       (1) set forth with respect to each of the activities under 
     the budget (including stockpile stewardship, stockpile 
     management, and program direction) the funding requested to 
     carry out each project or activity that is necessary to meet 
     the requirements of the Nuclear Weapons Stockpile Memorandum; 
     and
       (2) identify specific infrastructure requirements arising 
     from the Nuclear Posture Review, the Nuclear Weapons 
     Stockpile Memorandum, and the programmatic and technical 
     requirements associated with the review and memorandum.
       (b) Required Detail.--The Secretary of Energy shall include 
     in the materials that the Secretary submits to Congress in 
     support of the budget for any fiscal year after fiscal year 
     1997 that is submitted by the President pursuant to section 
     1105 of title 31, United States Code, the following:
       (1) A long-term program plan, and a near-term program plan, 
     for the certification and stewardship of the nuclear weapons 
     stockpile.
       (2) An assessment of the effects of the plans referred to 
     in paragraph (1) on each nuclear weapons laboratory and each 
     nuclear weapons production plant.
       (c) Definitions.--In this section:
       (1) The term ``Nuclear Posture Review'' means the 
     Department of Defense Nuclear Posture Review as contained in 
     the report of the Secretary of Defense to the President and 
     Congress dated February 19, 1995, or in subsequent such 
     reports.
       (2) The term ``nuclear weapons laboratory'' means the 
     following:
       (A) Lawrence Livermore National Laboratory, California.
       (B) Los Alamos National Laboratory, New Mexico.
       (C) Sandia National Laboratories.
       (3) The term ``nuclear weapons production plant'' means the 
     following:
       (A) The Pantex Plant, Texas.
       (B) The Savannah River Site, South Carolina.
       (C) The Kansas City Plant, Missouri.
       (D) The Y-12 Plant, Oak Ridge, Tennessee.

     SEC. 3157. REPEAL OF REQUIREMENT RELATING TO ACCOUNTING 
                   PROCEDURES FOR DEPARTMENT OF ENERGY FUNDS.

       Section 3151 of the National Defense Authorization Act for 
     Fiscal Year 1995 (Public Law 103-337; 108 Stat. 3089) is 
     repealed.

     SEC. 3158. UPDATE OF REPORT ON NUCLEAR TEST READINESS 
                   POSTURES.

       Not later than June 1, 1997, the Secretary of Energy shall 
     submit to Congress a report which updates the report 
     submitted by the Secretary under section 3152 of the National 
     Defense Authorization Act for Fiscal Year 1996 (Public Law 
     104-106; 110 Stat. 623). The updated report shall include the 
     matters specified under such section, current as of the date 
     of the updated report.

     SEC. 3159. REPORTS ON CRITICAL DIFFICULTIES AT NUCLEAR 
                   WEAPONS LABORATORIES AND NUCLEAR WEAPONS 
                   PRODUCTION PLANTS.

       (a) Reports by Heads of Laboratories and Plants.--In the 
     event of a difficulty at a nuclear weapons laboratory or a 
     nuclear weapons production plant that has a significant 
     bearing on confidence in the safety or reliability of a 
     nuclear weapon or nuclear weapon type, the head of the 
     laboratory or plant, as the case may be, shall submit to the 
     Assistant Secretary of Energy for Defense Programs a report 
     on the difficulty. The head of the laboratory or plant shall 
     submit the report as soon as practicable after discovery of 
     the difficulty.
       (b) Transmittal by Assistant Secretary.--As soon as 
     practicable after receipt of a report under subsection (a), 
     the Assistant Secretary shall transmit the report (together 
     with the comments of the Assistant

[[Page H9113]]

     Secretary) to the congressional defense committees and to the 
     Secretary of Energy and the Secretary of Defense.
       (c) Reports by Nuclear Weapons Council.--Section 179 of 
     title 10, United States Code, is amended--
       (1) by redesignating subsection (e) as subsection (f); and
       (2) by inserting after subsection (d) the following new 
     subsection (e):
       ``(e) In addition to the responsibilities set forth in 
     subsection (d), the Council shall also submit to Congress a 
     report on any analysis conducted by the Council with respect 
     to difficulties at nuclear weapons laboratories or nuclear 
     weapons production plants that have significant bearing on 
     confidence in the safety or reliability of nuclear weapons or 
     nuclear weapon types.''.
       (d) Definitions.--In this section:
       (1) The term ``nuclear weapons laboratory'' means the 
     following:
       (A) Lawrence Livermore National Laboratory, California.
       (B) Los Alamos National Laboratory, New Mexico.
       (C) Sandia National Laboratories.
       (2) The term ``nuclear weapons production plant'' means the 
     following:
       (A) The Pantex Plant, Texas.
       (B) The Savannah River Site, South Carolina.
       (C) The Kansas City Plant, Missouri.
       (D) The Y-12 Plant, Oak Ridge, Tennessee.

     SEC. 3160. EXTENSION OF APPLICABILITY OF NOTICE-AND-WAIT 
                   REQUIREMENT REGARDING PROPOSED COOPERATION 
                   AGREEMENTS.

       Section 3155(b) of the National Defense Authorization Act 
     for Fiscal Year 1995 (42 U.S.C. 2153 note) is amended by 
     striking out ``October 1, 1996'' and inserting in lieu 
     thereof ``October 1, 1997''.

     SEC. 3161. SENSE OF SENATE RELATING TO REDESIGNATION OF 
                   DEFENSE ENVIRONMENTAL RESTORATION AND WASTE 
                   MANAGEMENT PROGRAM.

       (a) Sense of Senate.--It is the sense of the Senate that 
     the program of the Department of Energy known as the Defense 
     Environmental Restoration and Waste Management Program, and 
     also known as the Environmental Management Program, be 
     redesignated as the Defense Nuclear Waste Management Program 
     of the Department of Energy.
       (b) Report on Redesignation.--Not later than January 31, 
     1997, the Secretary of Energy shall submit to the 
     congressional defense committees a report on the costs and 
     other difficulties, if any, associated with the following:
       (1) The redesignation of the program known as the Defense 
     Environmental Restoration and Waste Management Program, and 
     also known as the Environmental Management Program, as the 
     Defense Nuclear Waste Management Program of the Department of 
     Energy.
       (2) The redesignation of the Defense Environmental 
     Restoration and Waste Management Account as the Defense 
     Nuclear Waste Management Account.

     SEC. 3162. COMMISSION ON MAINTAINING UNITED STATES NUCLEAR 
                   WEAPONS EXPERTISE.

       (a) Establishment.--There is hereby established a 
     commission to be known as the ``Commission on Maintaining 
     United States Nuclear Weapons Expertise'' (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 nuclear weapons, as 
     follows:
       (i) Two shall be appointed by the majority leader of the 
     Senate (in consultation with the minority leader of the 
     Senate).
       (ii) One shall be appointed by the minority leader of the 
     Senate (in consultation with the majority leader of the 
     Senate).
       (iii) Two shall be appointed by the Speaker of the House of 
     Representatives (in consultation with the minority leader of 
     the House of Representatives).
       (iv) One shall be appointed by the minority leader of the 
     House of Representatives (in consultation with the Speaker of 
     the House of Representatives).
       (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 appointed under 
     subparagraph (A) by the majority leader of the Senate, in 
     consultation with the Speaker of the House of 
     Representatives, the minority leader of the Senate, and the 
     minority leader of the House of Representatives.
       (D) Members shall be appointed not later than 60 days after 
     the date of the 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 develop a plan for 
     recruiting and retaining within the Department of Energy 
     nuclear weapons complex such scientific, engineering, and 
     technical personnel as the Commission determines appropriate 
     in order to permit the Department to maintain over the long 
     term a safe and reliable nuclear weapons stockpile without 
     engaging in underground testing.
       (2) In developing the plan, the Commission shall--
       (A) identify actions that the Secretary may undertake to 
     attract qualified scientific, engineering, and technical 
     personnel to the nuclear weapons complex of the Department; 
     and
       (B) review and recommend improvements to the on-going 
     efforts of the Department to attract such personnel to the 
     nuclear weapons complex.
       (d) Report.--Not later than March 15, 1998, the Commission 
     shall submit to the Secretary and to Congress a report 
     containing the plan developed under subsection (c). The 
     report may include recommendations for legislation and 
     administrative action.
       (e) Commission Personnel Matters.--(1) 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 5315 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. 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) 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. 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 service status or 
     privilege.
       (f) Termination.--The Commission shall terminate 30 days 
     after the date on which the Commission submits its report 
     under subsection (d).
       (g) 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.
       (h) Funding.--Of the amounts authorized to be appropriated 
     pursuant to section 3101, not more than $1,000,000 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. 3163. SENSE OF CONGRESS REGARDING RELIABILITY AND SAFETY 
                   OF REMAINING NUCLEAR FORCES.

       (a) Findings.--Congress makes the following findings:
       (1) The United States is committed to proceeding with a 
     robust, science-based stockpile stewardship program with 
     respect to production of nuclear weapons, and to maintaining 
     nuclear weapons production capabilities and capacities, that 
     are adequate--
       (A) to ensure the safety, reliability, and performance of 
     the United States nuclear arsenal; and
       (B) to meet such changing national security requirements as 
     may result from international developments or technical 
     problems with nuclear warheads.
       (2) The United States is committed to reestablishing and 
     maintaining production facilities for nuclear weapons 
     components at levels that are sufficient--
       (A) to satisfy requirements for the safety, reliability, 
     and performance of United States nuclear weapons; and
       (B) to demonstrate and sustain production capabilities and 
     capacities.
       (3) The United States is committed to maintaining the 
     nuclear weapons laboratories and protecting core nuclear 
     weapons competencies.
       (4) The United States is committed to ensuring rapid access 
     to a new production source of tritium within the next decade, 
     as it currently has no meaningful capability to produce 
     tritium, a component that is essential to the performance of 
     modern nuclear weapons.
       (5) The United States reserves the right, consistent with 
     United States law, to resume underground nuclear testing to 
     maintain confidence in the United States stockpile of nuclear 
     weapons if warhead design flaws or aging of nuclear weapons 
     result in problems that a robust stockpile stewardship 
     program cannot solve.
       (6) The United States is committed to funding the Nevada 
     Test Site at a level that maintains the ability of the United 
     States to resume underground nuclear testing within one year 
     after a national decision to do so is made.
       (7) The United States reserves the right to invoke the 
     supreme national interest of the United States and withdraw 
     from any future arms control agreement to limit underground 
     nuclear testing.
       (b) Sense of Congress Regarding Presidential Consultation 
     With Congress.--It is the sense of Congress that the 
     President

[[Page H9114]]

     should consult closely with Congress regarding United States 
     policy and practices to ensure confidence in the safety, 
     reliability, and performance of the nuclear stockpile of the 
     United States.
       (c) Sense of Congress Regarding Notification and 
     Consultation.--It is the sense of Cpongress that, upon a 
     determination by the President that a problem with the 
     safety, reliability, or performance of the nuclear stockpile 
     has occurred and that the problem cannot be corrected within 
     the stockpile stewardship program, the President shall--
       (1) immediately notify Congress of the problem; and
       (2) submit to Congress in a timely manner a plan for 
     corrective action with respect to the problem, including--
       (A) a technical description of the activities required 
     under the plan; and
       (B) if underground testing of nuclear weapons would assist 
     in such corrective action, an assessment of the advisability 
     of withdrawing from any treaty that prohibits underground 
     testing of nuclear weapons.

     SEC. 3164. STUDY ON WORKER PROTECTION AT THE MOUND FACILITY.

       (a) Report.--Not later than March 15, 1997, the Secretary 
     of Energy shall submit to the congressional defense 
     committees a report regarding the status of projects and 
     programs to improve worker safety and health at the Mound 
     Facility in Miamisburg, Ohio.
       (b) Matters Covered.--The report shall include the 
     following:
       (1) The status of actions completed in fiscal year 1996.
       (2) The status of actions completed or proposed to be 
     completed in fiscal years 1997 and 1998.
       (3) A description of the fiscal year 1998 budget request 
     for worker safety and health at the Mound Facility.
       (4) An accounting of expenditures for worker safety and 
     health at the Mound Facility by fiscal year from fiscal year 
     1994 through and including fiscal year 1996.

     SEC. 3165. FISCAL YEAR 1998 FUNDING FOR GREENVILLE ROAD 
                   IMPROVEMENT PROJECT, LIVERMORE, CALIFORNIA.

       (a) Funding.--The Secretary of Energy shall include in the 
     budget for fiscal year 1998 submitted by the Secretary of 
     Energy to the Office of Management and Budget a request for 
     sufficient funds to pay the United States portion of the cost 
     of transportation improvements under the Greenville Road 
     Improvement Project, Livermore, California.
       (b) Cooperation with Livermore, California.--The Secretary 
     shall work with the city of Livermore, California, to 
     determine the cost of the transportation improvements 
     referred to in subsection (a).

     SEC. 3166. FELLOWSHIP PROGRAM FOR DEVELOPMENT OF SKILLS 
                   CRITICAL TO DEPARTMENT OF ENERGY NUCLEAR 
                   WEAPONS COMPLEX.

       (a) Funding.--Subject to subsection (b), of the funds 
     authorized to be appropriated pursuant to section 3101(b), 
     $5,000,000 may be used for conducting the fellowship program 
     for the development of skills critical to the ongoing mission 
     of the Department of Energy nuclear weapons complex required 
     by section 3140 of the National Defense Authorization Act for 
     Fiscal Year 1996 (Public Law 104-106; 110 Stat. 621; 42 
     U.S.C. 2121 note).
       (b) Notice and Wait.--The Secretary of Energy may not 
     obligate or expend funds under subsection (a) for the 
     fellowship program referred to in that subsection until--
       (1) the Secretary submits to Congress a report setting 
     forth--
       (A) the actions the Department has taken to implement the 
     fellowship program;
       (B) the amount the Secretary proposes to obligate;
       (C) the purposes for which such amount will be obligated; 
     and
       (2) a period of 21 days elapses from the date of the 
     receipt of the report by Congress.
    Subtitle E--Defense Nuclear Environmental Cleanup and Management

     SEC. 3171. PURPOSE.

       The purpose of this subtitle is to provide for the 
     expedited environmental restoration and waste management of 
     defense nuclear facilities through the use of cost-effective 
     management mechanisms and innovative technologies.

     SEC. 3172. APPLICABILITY.

       (a) In General.--The provisions of this subtitle shall 
     apply to the following defense nuclear facilities:
       (1) Any defense nuclear facility for which the fiscal year 
     1996 environmental management budget was $350,000,000 or 
     more.
       (2) Any other defense nuclear facility if--
       (A) the chief executive officer of the State in which the 
     facility is located submits to the Secretary a request that 
     the facility be covered by the provisions of this subtitle; 
     and
       (B) the Secretary approves the request.
       (b) Limitation.--The Secretary may not approve a request 
     under subsection (a)(2) until 60 days after the date on which 
     the Secretary notifies Congress of the Secretary's receipt of 
     the request.

     SEC. 3173. SITE MANAGER.

       (a) Appointment.--(1) Subject to paragraph (2), the 
     Secretary shall expeditiously appoint a Site Manager for each 
     defense nuclear facility (in this subtitle referred to as the 
     ``Site Manager'').
       (2) In the case of a defense nuclear facility at which 
     another program, in addition to environmental management 
     operations, is carried out, and such other program is subject 
     to management by a site manager, field office manager, or 
     operations office manager, the Secretary shall appoint such 
     manager to be the Site Manager for such facility for purposes 
     of this subtitle.
       (b) Authority.--(1) In addition to other authorities 
     provided for in this Act, the Secretary may delegate to the 
     Site Manager of a defense nuclear facility authority to 
     oversee and direct environmental management operations at the 
     facility, including the authority to--
       (A) enter into and modify contractual agreements to enhance 
     environmental restoration and waste management at the 
     facility;
       (B) request that the Department headquarters submit to 
     Congress a reprogramming package shifting funds among 
     accounts in order to facilitate the most efficient and timely 
     environmental restoration and waste management of the 
     facility, and, in the event that the Department headquarters 
     does not act upon the request within 60 days, submit such 
     request to the appropriate congressional committees for 
     review;
       (C) subject to paragraph (2), negotiate amendments to 
     environmental agreements for the Department;
       (D) manage Department personnel at the facility;
       (E) consider the costs, risk reduction benefits, and other 
     benefits for the purposes of ensuring protection of human 
     health and the environment or safety, with respect to any 
     environmental remediation activity the cost of which exceeds 
     $25,000,000; and
       (F) have assessments prepared for environmental restoration 
     activities (in several documents or a single document, as 
     determined by the Site Manager).
       (2) In using the authority described in paragraph (1)(C), a 
     Site Manager may not negotiate an amendment that is expected 
     to result in additional life cycle costs to the Department 
     without the approval of the Secretary.
       (3) In using any authority described in paragraph (1), a 
     Site Manager of a facility shall consult with the State where 
     the facility is located and the advisory board for the 
     facility.
       (4) The delegation of any authority pursuant to this 
     subsection shall not be construed as restricting the 
     Secretary's authority to delegate other authorities as 
     necessary.
       (c) Information to Secretary.--The Site Manager of a 
     defense nuclear facility shall regularly inform the 
     Secretary, Congress, and the advisory board for the facility 
     of the progress made by the Site Manager to achieve the 
     expedited environmental restoration and waste management of 
     the facility.

     SEC. 3174. DEPARTMENT OF ENERGY ORDERS.

       An order imposed after the date of the enactment of this 
     Act relating to the execution of environmental restoration, 
     waste management, or technology development activities at a 
     defense nuclear facility under the Atomic Energy Act of 1954 
     (42 U.S.C. 2011 et seq.) may be imposed by the Secretary at 
     the defense nuclear facility only if the Secretary finds that 
     the order is necessary for the protection of human health and 
     the environment or safety, the fulfillment of current legal 
     requirements, or the conduct of critical administrative 
     functions.

     SEC. 3175. DEPLOYMENT OF TECHNOLOGY FOR REMEDIATION OF 
                   DEFENSE NUCLEAR WASTE.

       (a) In General.--The Site Manager of each defense nuclear 
     facility shall promote the deployment of innovative 
     environmental technologies for remediation of defense nuclear 
     waste at the facility.
       (b) Criteria.--To carry out subsection (a), the Site 
     Manager of a defense nuclear facility shall establish a 
     program at the facility for the testing and deployment of 
     innovative environmental technologies for the remediation of 
     defense nuclear waste at the facility. In establishing such a 
     program, the Site Manager may--
       (1) establish a simplified, standardized, and timely 
     process for the testing, verification, certification, and 
     deployment of environmental technologies;
       (2) solicit applications to test and deploy environmental 
     technologies suitable for environmental restoration and waste 
     management activities at the facility, including prevention, 
     control, characterization, treatment, and remediation of 
     contamination;
       (3) consult and cooperate with the heads of existing 
     programs at the facility for the verification and 
     certification of environmental technologies at the facility;
       (4) pay the costs of the demonstration of such 
     technologies;
       (5) enter into contracts and other agreements with other 
     public and private entities to deploy environmental 
     technologies at the facility; and
       (6) include incentives, such as product performance 
     specifications, in contracts to encourage the implementation 
     of innovative environmental technologies.
       (c) Follow-on Contracts.--(1) If the Secretary and a person 
     demonstrating a technology under the program enter into a 
     contract for remediation of nuclear waste at a defense 
     nuclear facility covered by this subtitle, or at any other 
     Department facility, as a follow-on to the demonstration of 
     the technology, the Secretary shall ensure that the contract 
     provides for the Secretary to recoup from the contractor the 
     costs incurred by the Secretary pursuant to subsection (b)(6) 
     for the demonstration.
       (2) No contract between the Department and a contractor for 
     the demonstration of technology under subsection (b) may 
     provide for reimbursement of the costs of the contractor on a 
     cost plus fee basis.

[[Page H9115]]

       (d) Safe Harbors.--In the case of an environmental 
     technology tested, verified, certified, and deployed at a 
     defense nuclear facility under a program established under 
     subsection (b), the site manager of another defense nuclear 
     facility may request the Secretary to waive or limit 
     contractual or Department regulatory requirements that would 
     otherwise apply in implementing the same environmental 
     technology at such other facility.

     SEC. 3176. PERFORMANCE-BASED CONTRACTING.

       (a) Program.--The Secretary shall develop and implement a 
     program for performance-based contracting for contracts 
     entered into for environmental remediation at defense nuclear 
     facilities. The program shall ensure that, to the maximum 
     extent practicable and appropriate, such contracts include 
     the following:
       (1) Clearly stated and results oriented performance 
     criteria and measures.
       (2) Appropriate incentives for contractors to meet or 
     exceed the performance criteria effectively and efficiently.
       (3) Appropriate criteria and incentives for contractors to 
     seek and engage subcontractors who may more effectively and 
     efficiently perform either unique and technologically 
     challenging tasks or routine and interchangeable services.
       (4) Specific incentives for cost savings.
       (5) Financial accountability.
       (6) When appropriate, reduction of fee for failure to meet 
     minimum performance criteria and standards.
       (b) Criteria and Measures.--Performance criteria and 
     measures should take into consideration, at a minimum, the 
     following: managerial control; elimination or reduction of 
     risk to public health and the environment; workplace safety; 
     financial control; goal-oriented work scope; use of 
     innovative and alternative technologies and techniques that 
     result in cleanups being performed less expensively, more 
     quickly, and within quality parameters; and performing within 
     benchmark cost estimates.
       (c) Consultation.--In implementing this section, the 
     Secretary shall consult with interested parties.
       (d) Deadline.--The Secretary shall implement this section 
     not later than October 1, 1997, unless the Secretary submits 
     to Congress before that date a report with a schedule for 
     completion of action under this section.

     SEC. 3177. DESIGNATION OF COVERED FACILITIES AS ENVIRONMENTAL 
                   CLEANUP DEMONSTRATION AREAS.

       (a) Designation.--Each defense nuclear facility is hereby 
     designated as an environmental cleanup demonstration area to 
     carry out the purposes of this subtitle, including the 
     utilization and evaluation of new technologies to be used in 
     environmental restoration and remediation at other defense 
     nuclear facilities.
       (b) Sense of Congress.--It is the sense of Congress that 
     Federal and State regulatory agencies, members of the 
     communities surrounding any defense nuclear facility, and 
     other affected parties with respect to the facility should 
     continue to--
       (1) develop expedited and streamlined processes and systems 
     for cleaning up such facility;
       (2) eliminate unnecessary administrative complexity and 
     unnecessary duplication of regulation with respect to the 
     clean up of such facility;
       (3) proceed expeditiously and cost-effectively with 
     environmental restoration and remediation activities at such 
     facility;
       (4) consider future land use in selecting environmental 
     clean up remedies at such facility; and
       (5) identify and recommend to Congress changes in law 
     needed to expedite the clean up of such facility.

     SEC. 3178. DEFINITIONS.

       In this subtitle:
       (1) The term ``Secretary'' means the Secretary of Energy.
       (2) The term ``Department'' means the Department of Energy.
       (3) The term ``defense nuclear facility'' has the meaning 
     given the term ``Department of Energy defense nuclear 
     facility'' in section 318 of the Atomic Energy Act of 1954 
     (42 U.S.C. 2286g).

     SEC. 3179. TERMINATION.

       This subtitle is repealed effective September 30, 2001.

     SEC. 3180. REPORT.

       Not later than September 30, 2000, the Secretary shall 
     submit to Congress a report on the effectiveness of this 
     subtitle in expediting environmental restoration and waste 
     management of defense nuclear facilities. The report shall 
     include recommendations on whether this subtitle should 
     remain in effect beyond September 30, 2001.
 Subtitle F--Waste Isolation Pilot Plant Land Withdrawal Act Amendments

     SEC. 3181. SHORT TITLE.

       This subtitle may be cited as the ``Waste Isolation Pilot 
     Plant Land Withdrawal Amendment Act''.

     SEC. 3182. DEFINITIONS.

       Section 2 of the Waste Isolation Pilot Plant Land 
     Withdrawal Act (Public Law 102-579; 106 Stat. 4777) is 
     amended--
       (1) by striking paragraphs (18) and (19); and
       (2) by redesignating paragraphs (20), (21), and (22), as 
     paragraphs (18), (19), and (20), respectively.

     SEC. 3183. MANAGEMENT PLAN.

       Section 4(b)(5)(B) of the Waste Isolation Pilot Plant Land 
     Withdrawal Act (106 Stat. 4781) is amended by striking ``or 
     with the Solid Waste Disposal Act (42 U.S.C. 6901 et seq.)''.

     SEC. 3184. REPEAL OF TEST PHASE AND RETRIEVAL PLANS.

       (a) Repeal.--Section 5 of the Waste Isolation Pilot Plant 
     Land Withdrawal Act (106 Stat. 4782) is repealed.
       (b) Clerical Amendment.--The table of contents in section 
     1(b) of such Act (106 Stat. 4777) is amended by striking out 
     the item relating to section 5.

     SEC. 3185. TEST PHASE ACTIVITIES.

       Section 6 of the Waste Isolation Pilot Plant Land 
     Withdrawal Act (106 Stat. 4783) is amended--
       (1) by repealing subsections (a) and (b);
       (2) by repealing paragraph (1) of subsection (c);
       (3) by redesignating subsection (c) as subsection (a) and 
     in that subsection--
       (A) by repealing subparagraph (A) of paragraph (2);
       (B) by striking the subsection heading and the matter 
     immediately following the subsection heading and inserting 
     ``Study.--The following study shall be conducted:'';
       (C) by striking ``(2) Remote-handled waste.--'';
       (D) by striking ``(B) Study.--'';
       (E) by redesignating clauses (i), (ii), and (iii) as 
     paragraphs (1), (2), and (3), respectively; and
       (F) by realigning the margins of such clauses to be margins 
     of paragraphs;
       (4) in subsection (d), by striking ``, during the test 
     phase, a biennial'' and inserting ``a'' and by striking ``, 
     consisting of a documented analysis of'' and inserting ``as 
     necessary to demonstrate''; and
       (5) by redesignating subsection (d) as subsection (b).

     SEC. 3186. DISPOSAL OPERATIONS.

       Subsection (b) of section 7 of the Waste Isolation Pilot 
     Plant Land Withdrawal Act (106 Stat. 4785) is amended to read 
     as follows:
       ``(b) Requirements for Commencement of Disposal 
     Operations.--The Secretary may commence emplacement of 
     transuranic waste underground for disposal at WIPP only upon 
     completion of--
       ``(1) the Administrator's certification under section 
     8(d)(1) that the WIPP facility will comply with the final 
     disposal regulations;
       ``(2) the acquisition by the Secretary (whether by 
     purchase, condemnation, or otherwise) of Federal Oil and Gas 
     Leases No. NMNM 02953 and No. NMNM 02953C, unless the 
     Administrator determines under section 4(b)(5) that such 
     acquisition is not required; and
       ``(3) the 30-day period beginning on the date on which the 
     Secretary notifies Congress that the requirements of section 
     9(a)(1) have been met.''.

     SEC. 3187. ENVIRONMENTAL PROTECTION AGENCY DISPOSAL 
                   REGULATIONS.

       (a) Section 8(d)(1).--Section 8(d)(1) of the Waste 
     Isolation Pilot Plant Land Withdrawal Act (106 Stat. 4786) is 
     amended--
       (1) by amending subparagraph (A) to read as follows:
       ``(A) Application for compliance.--Within 30 days after the 
     date of the enactment of the Waste Isolation Pilot Plant Land 
     Withdrawal Amendment Act, the Secretary shall provide to 
     Congress a schedule for the incremental submission of 
     chapters of the application to the Administrator beginning no 
     later than 30 days after the date of the submittal of the 
     schedule. The Administrator shall review the submitted 
     chapters and provide requests for additional information from 
     the Secretary as needed for completeness within 45 days of 
     the receipt of each chapter. The Administrator shall notify 
     Congress of such requests. The schedule shall call for the 
     Secretary to submit all chapters to the Administrator no 
     later than October 31, 1996. The Administrator may at any 
     time request additional information from the Secretary as 
     needed to certify, pursuant to subparagraph (B), whether the 
     WIPP facility will comply with the final disposal 
     regulations.''; and
       (2) in subparagraph (D), by striking ``after the 
     application is'' and inserting ``after the full application 
     has been''.
       (b) Section 8(d) (2) and (3).--Section 8(d) of such Act is 
     amended by striking paragraphs (2) and (3), by striking ``(1) 
     Compliance with disposal regulations.--'' and by 
     redesignating subparagraphs (A), (B), (C), and (D) of 
     paragraph (1) as paragraph (1), (2), (3), and (4), 
     respectively.
       (c) Section 8(g).--Section 8(g) of such Act is amended to 
     read as follows:
       ``(g) Engineered and Natural Barriers, Etc.--The Secretary 
     shall use both engineered and natural barriers and any other 
     measures (including waste form modifications) to the extent 
     necessary at WIPP to comply with the final disposal 
     regulations.''.

     SEC. 3188. COMPLIANCE WITH ENVIRONMENTAL LAWS AND 
                   REGULATIONS.

       (a) Section 9(a)(1).--Section 9(a)(1) of the Waste 
     Isolation Pilot Plant Land Withdrawal Act (106 Stat. 4788) is 
     amended by adding after and below subparagraph (H) the 
     following: ``With respect to transuranic mixed waste 
     designated by the Secretary for disposal at WIPP, such waste 
     is exempt from treatment standards promulgated pursuant to 
     section 3004(m) of the Solid Waste Disposal Act (42 U.S.C. 
     6924(m)) and shall not be subject to the land disposal 
     prohibitions in section 3004 (d), (e), (f), and (g) of the 
     Solid Waste Disposal Act.''.

[[Page H9116]]

       (b) Section 9(b).--Subsection (b) of section 9 of such Act 
     is repealed.
       (c) Section 9(c)(2).--Subsection (c)(2) of section 9 of 
     such Act is repealed.
       (d) Section 14.--Section 14 of such Act (106 Stat. 4791) is 
     amended--
       (1) in subsection (a), by striking ``No provision'' and 
     inserting ``Except for the exemption from the land disposal 
     restrictions described in section 9(a)(1), no provision''; 
     and
       (2) in subsection (b)(2), by striking ``including all terms 
     and conditions of the No-Migration Determination'' and 
     inserting ``except that the transuranic mixed waste 
     designated by the Secretary for disposal at WIPP is exempt 
     from the land disposal restrictions described in section 
     9(a)(1)''.

     SEC. 3189. SENSE OF CONGRESS ON COMMENCEMENT OF EMPLACEMENT 
                   OF TRANSURANIC WASTE.

       (a) In General.--Section 10 of the Waste Isolation Pilot 
     Plant Land Withdrawal Act (106 Stat. 4789) is amended to read 
     as follows:

     ``SEC. 10. SENSE OF CONGRESS ON COMMENCEMENT OF EMPLACEMENT 
                   OF TRANSURANIC WASTE.

       ``It is the sense of Congress that the Secretary should 
     complete all actions required under section 7(b) to commence 
     emplacement of transuranic waste underground for disposal at 
     WIPP not later than November 30, 1997, provided that before 
     that date all applicable health and safety standards have 
     been met and all applicable laws have been complied with.''.
       (b) Clerical Amendment.--The item relating to section 10 in 
     the table of contents in section 1 is amended to read as 
     follows:
``Sec. 10. Sense of Congress on commencement of emplacement of 
              transuranic waste.''.

     SEC. 3190. DECOMMISSIONING OF WIPP.

       Section 13 of the Waste Isolation Pilot Plant Land 
     Withdrawal Act (106 Stat. 4791) is amended--
       (1) by striking subsection (a); and
       (2) by striking ``(b) Management Plan for the Withdrawal 
     After Decommissioning.--Within 5 years after the date of the 
     enactment of this Act, the'' and inserting ``The''.

     SEC. 3191. AUTHORIZATIONS FOR ECONOMIC ASSISTANCE AND 
                   MISCELLANEOUS PAYMENTS.

       (a) Authorization Amendment.--Section 15(a) of the Waste 
     Isolation Pilot Plant Land Withdrawal Act (106 Stat. 4791) is 
     amended--
       (1) in the subsection caption, by striking ``15-Year'' and 
     inserting ``14-Year''; and
       (2) by striking ``15 fiscal years beginning with the fiscal 
     year in which the transport of transuranic waste to WIPP is 
     initiated'' and inserting ``14 fiscal years beginning with 
     fiscal year 1998''.
       (b) Requirement for Separate Authorizations.--Such section 
     15(a) is further amended by adding at the end the following: 
     ``The authorization of appropriations for funds for payments 
     to the State under the preceding sentence shall be separate 
     from any authorization of appropriations of funds for 
     WIPP.''.
       (c) Fiscal Year 1997 Funding.--Of the amount authorized to 
     be appropriated for the Department of Energy by section 
     3102(b), $20,000,000 shall be available for the purpose of a 
     payment by the Secretary of Energy to the State of New Mexico 
     for road improvements in connection with the Waste Isolation 
     Pilot Plant.
          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD
Sec. 3201. Authorization.

     SEC. 3201. AUTHORIZATION.

       There are authorized to be appropriated for fiscal year 
     1997, $17,000,000 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

        Subtitle A--Authorization of Disposals and Use of Funds

Sec. 3301. Definitions.
Sec. 3302. Authorized uses of stockpile funds.
Sec. 3303. Disposal of certain materials in National Defense Stockpile.

                    Subtitle B--Programmatic Change

Sec. 3311. Biennial report on stockpile requirements.
Sec. 3312. Notification requirements.
Sec. 3313. Importation of strategic and critical materials.
        Subtitle A--Authorization of Disposals and Use of Funds

     SEC. 3301. DEFINITIONS.

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

     SEC. 3302. AUTHORIZED USES OF STOCKPILE FUNDS.

       (a) Obligation of Stockpile Funds.--During fiscal year 
     1997, the National Defense Stockpile Manager may obligate up 
     to $60,000,000 of the funds in the National Defense Stockpile 
     Transaction Fund for the authorized uses of such funds under 
     section 9(b)(2) of the Strategic and Critical Materials Stock 
     Piling Act (50 U.S.C. 98h(b)(2)).
       (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. DISPOSAL 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) $81,000,000 during fiscal year 1997; and
       (2) $612,000,000 during the ten-fiscal year period ending 
     September 30, 2006.
       (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          
------------------------------------------------------------------------
Aluminum..................................  62,881 short tons           
Cobalt....................................  26,000,000 pounds contained 
Columbium Ferro...........................  930,911 pounds contained    
Germanium Metal...........................  40,000 kilograms            
Indium....................................  35,000 troy ounces          
Palladium.................................  15,000 troy ounces          
Platinum..................................  10,000 troy ounces          
Rubber, Natural...........................  125,138 long tons           
Tantalum, Carbide Powder..................  6,000 pounds contained      
Tantalum, Minerals........................  750,000 pounds contained    
Tantalum, Oxide...........................  40,000 pounds contained     
------------------------------------------------------------------------

       (c) Minimization of Disruption and Loss.--The President may 
     not dispose of materials under subsection (a) to the extent 
     that the disposal will result in--
       (1) undue disruption of the usual markets of producers, 
     processors, and consumers of the materials proposed for 
     disposal; or
       (2) avoidable loss to the United States.
       (d) Treatment of Receipts.--Notwithstanding section 9 of 
     the Strategic and Critical Materials Stock Piling Act (50 
     U.S.C. 98h), funds received as a result of the disposal of 
     materials under subsection (a) shall be--
       (1) deposited into the general fund of the Treasury; and
       (2) to the extent necessary, used to offset the revenues 
     that will be lost as a result of execution of the amendments 
     made by section 4303(a) of the National Defense Authorization 
     Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 658).
       (e) Qualifying Offsetting Legislation.--This section is 
     specifically enacted as qualifying offsetting legislation for 
     the purpose of offsetting fully the estimated revenues lost 
     as a result of the amendments made by subsection (a) of 
     section 4303 of the National Defense Authorization Act for 
     Fiscal Year 1996 (Public Law 104-106; 110 Stat. 658), and as 
     such is deemed to satisfy the conditions in subsection (b) of 
     such section.
       (f) 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.
                    Subtitle B--Programmatic Change

     SEC. 3311. BIENNIAL REPORT ON STOCKPILE REQUIREMENTS.

       (a) National Emergency Planning Assumptions.--Section 14 of 
     the Strategic and Critical Materials Stock Piling Act (50 
     U.S.C. 98h-5) is amended--
       (1) by redesignating subsection (c) as subsection (e); and

[[Page H9117]]

       (2) by striking out subsection (b) and inserting in lieu 
     thereof the following new subsection:
       ``(b) Each report under this section shall set forth the 
     national emergency planning assumptions used by the Secretary 
     in making the Secretary's recommendations under subsection 
     (a)(1) with respect to stockpile requirements. The Secretary 
     shall base the national emergency planning assumptions on a 
     military conflict scenario consistent with the scenario used 
     by the Secretary in budgeting and defense planning purposes. 
     The assumptions to be set forth include assumptions relating 
     to each of the following:
       ``(1) The length and intensity of the assumed military 
     conflict.
       ``(2) The military force structure to be mobilized.
       ``(3) The losses anticipated from enemy action.
       ``(4) The military, industrial, and essential civilian 
     requirements to support the national emergency.
       ``(5) The availability of supplies of strategic and 
     critical materials from foreign sources during the 
     mobilization period, the military conflict, and the 
     subsequent period of replenishment, taking into consideration 
     possible shipping losses.
       ``(6) The domestic production of strategic and critical 
     materials during the mobilization period, the military 
     conflict, and the subsequent period of replenishment, taking 
     into consideration possible shipping losses.
       ``(7) Civilian austerity measures required during the 
     mobilization period and military conflict.
       ``(c) The stockpile requirements shall be based on those 
     strategic and critical materials necessary for the United 
     States to replenish or replace, within three years of the end 
     of the military conflict scenario required under subsection 
     (b), all munitions, combat support items, and weapons systems 
     that would be required after such a military conflict.
       ``(d) The Secretary shall also include in each report under 
     this section an examination of the effect that alternative 
     mobilization periods under the military conflict scenario 
     required under subsection (b), as well as a range of other 
     military conflict scenarios addressing potentially more 
     serious threats to national security, would have on the 
     Secretary's recommendations under subsection (a)(1) with 
     respect to stockpile requirements.''.
       (b) Conforming Amendment.--Section 2 of such Act (50 U.S.C. 
     98a) is amended by striking out subsection (c) and inserting 
     in lieu thereof the following new subsection:
       ``(c) The purpose of the National Defense Stockpile is to 
     serve the interest of national defense only. The National 
     Defense Stockpile is not to be used for economic or budgetary 
     purposes.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 1996.

     SEC. 3312. NOTIFICATION REQUIREMENTS.

       (a) Proposed Changes in Stockpile Quantities.--Section 
     3(c)(2) of the Strategic and Critical Materials Stock Piling 
     Act (50 U.S.C. 98b(c)(2)) is amended--
       (1) by striking out ``effective on or after the 30th 
     legislative day following'' and inserting in lieu thereof 
     ``after the end of the 45-day period beginning on''; and
       (2) by striking out the last sentence.
       (b) Waiver of Acquisition and Disposal Requirements.--
     Section 6(d)(1) of such Act (50 U.S.C. 98e(d)(1)) is amended 
     by striking out ``thirty days'' and inserting in lieu thereof 
     ``45 days''.
       (c) Time To Begin Disposal.--Section 6(d)(2) of such Act 
     (50 U.S.C. 98e(d)(2)) is amended by striking out ``thirty 
     days'' and inserting in lieu thereof ``45 days''.

     SEC. 3313. IMPORTATION OF STRATEGIC AND CRITICAL MATERIALS.

       Section 13 of the Strategic and Critical Materials Stock 
     Piling Act (50 U.S.C. 98h-4) is amended--
       (1) by striking out ``as a Communist-dominated country or 
     area''; and
       (2) by striking out ``such Communist-dominated countries or 
     areas'' and inserting in lieu thereof ``a country or area 
     listed in such general note''.
                 TITLE XXXIV--NAVAL PETROLEUM RESERVES
Sec. 3401. Authorization of appropriations.
Sec. 3402. Price requirement on sale of certain petroleum during fiscal 
              year 1997.

     SEC. 3401. AUTHORIZATION OF APPROPRIATIONS.

       There is hereby authorized to be appropriated to the 
     Secretary of Energy $149,500,000 for fiscal year 1997 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. PRICE REQUIREMENT ON SALE OF CERTAIN PETROLEUM 
                   DURING FISCAL YEAR 1997.

       Notwithstanding section 7430(b)(2) of title 10, United 
     States Code, during fiscal year 1997, any sale of any part of 
     the United States share of petroleum produced from Naval 
     Petroleum Reserves Numbered 1, 2, and 3 shall be made at a 
     price not less than 90 percent of the current sales price, as 
     estimated by the Secretary of Energy, of comparable petroleum 
     in the same area.
                  TITLE XXXV--PANAMA CANAL COMMISSION

              Subtitle A--Authorization of Appropriations

Sec. 3501. Short title.
Sec. 3502. Authorization of expenditures.
Sec. 3503. Purchase of vehicles.
Sec. 3504. Expenditures only in accordance with treaties.

           Subtitle B--Amendments to Panama Canal Act of 1979

Sec. 3521. Short title; references.
Sec. 3522. Definitions and recommendation for legislation.
Sec. 3523. Administrator.
Sec. 3524. Deputy Administrator and Chief Engineer.
Sec. 3525. Office of Ombudsman.
Sec. 3526. Appointment and compensation; duties.
Sec. 3527. Applicability of certain benefits.
Sec. 3528. Travel and transportation.
Sec. 3529. Clarification of definition of agency.
Sec. 3530. Panama Canal Employment System; merit and other employment 
              requirements.
Sec. 3531. Employment standards.
Sec. 3532. Repeal of obsolete provision regarding interim application 
              of Canal Zone Merit System.
Sec. 3533. Repeal of provision relating to recruitment and retention 
              remuneration.
Sec. 3534. Benefits based on basic pay.
Sec. 3535. Vesting of general administrative authority of commission.
Sec. 3536. Applicability of certain laws.
Sec. 3537. Repeal of provision relating to transferred or reemployed 
              employees.
Sec. 3538. Administration of special disability benefits.
Sec. 3539. Panama Canal Revolving Fund.
Sec. 3540. Printing.
Sec. 3541. Accounting policies.
Sec. 3542. Interagency services; reimbursements.
Sec. 3543. Postal service.
Sec. 3544. Investigation of accidents or injury giving rise to claim.
Sec. 3545. Operations regulations.
Sec. 3546. Miscellaneous repeals.
Sec. 3547. Exemption from Metric Conversion Act of 1975.
Sec. 3548. Conforming and clerical amendments.
Sec. 3549. Repeal of Panama Canal Code.
              Subtitle A--Authorization of Appropriations

     SEC. 3501. SHORT TITLE.

       This subtitle may be cited as the ``Panama Canal Commission 
     Authorization Act for Fiscal Year 1997''.

     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 1997.
       (b) Limitations.--For fiscal year 1997, the Panama Canal 
     Commission may expend from funds in the Panama Canal 
     Revolving Fund not more than $73,000 for reception and 
     representation expenses, of which--
       (1) not more than $18,000 may be used for official 
     reception and representation expenses of the Supervisory 
     Board of the Commission;
       (2) not more than $10,000 may be used for official 
     reception and representation expenses of the Secretary of the 
     Commission; and
       (3) not more than $45,000 may be used for official 
     reception and representation expenses of the Administrator of 
     the Commission.

     SEC. 3503. PURCHASE OF VEHICLES.

       Notwithstanding any other provisions 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, including large, heavy-duty 
     vehicles.

     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--Amendments to Panama Canal Act of 1979

     SEC. 3521. SHORT TITLE; REFERENCES.

       (a) Short Title.--This subtitle may be cited as the 
     ``Panama Canal Act Amendments of 1996''.
       (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. 3522. DEFINITIONS AND RECOMMENDATION FOR LEGISLATION.

       Section 3 (22 U.S.C. 3602) is amended--
       (1) in subsection (b), by inserting ``and'' after the 
     semicolon at the end of paragraph (4), by striking the 
     semicolon at the end of paragraph (5) and inserting a period, 
     and striking paragraphs (6) and (7); and
       (2) by striking subsection (d).

     SEC. 3523. ADMINISTRATOR.

       (a) In General.--Section 1103 (22 U.S.C. 3613) is amended 
     to read as follows:

[[Page H9118]]

                            ``administrator

       ``Sec. 1103. (a) There shall be an Administrator of the 
     Commission who shall be appointed by the President, by and 
     with the advice and consent of the Senate, and shall hold 
     office at the pleasure of the President.
       ``(b) The Administrator shall be paid compensation in an 
     amount, established by the Board, not to exceed level III of 
     the Executive Schedule.''.
       (b) Savings Provisions.--Nothing in this section (or 
     section 3549(3)) shall be considered to affect--
       (1) the tenure of the individual serving as Administrator 
     of the Commission on the day before subsection (a) takes 
     effect; or
       (2) until modified under section 1103(b) of the Panama 
     Canal Act of 1979, as amended by subsection (a), the 
     compensation of the individual so serving.

     SEC. 3524. DEPUTY ADMINISTRATOR AND CHIEF ENGINEER.

       (a) In General.--Section 1104 (22 U.S.C. 3614) is amended 
     to read as follows:


                         ``deputy administrator

       ``Sec. 1104. (a) There shall be a Deputy Administrator of 
     the Commission who shall be appointed by the President. The 
     Deputy Administrator shall perform such duties as may be 
     prescribed by the Board.
       ``(b) The Deputy Administrator shall be paid compensation 
     at a rate of pay, established by the Board, which does not 
     exceed the rate of basic pay in effect for level IV of the 
     Executive Schedule, and, if eligible, shall be paid the 
     overseas recruitment and retention differential provided for 
     in section 1217 of this Act.''.
       (b) Savings Provisions.--Nothing in this section shall be 
     considered to affect--
       (1) the tenure of the individual serving as Deputy 
     Administrator of the Commission on the day before subsection 
     (a) takes effect; or
       (2) until modified under section 1104(b) of the Panama 
     Canal Act of 1979, as amended by subsection (a), the 
     compensation of the individual so serving.

     SEC. 3525. OFFICE OF OMBUDSMAN.

       Section 1113 (22 U.S.C. 3623) is amended by striking 
     subsection (d) and redesignating subsection (e) as subsection 
     (d).

     SEC. 3526. APPOINTMENT AND COMPENSATION; DUTIES.

       Section 1202 (22 U.S.C. 3642) is amended to read as 
     follows:


                 ``appointment and compensation; duties

       ``Sec. 1202. (a) In accordance with this chapter, the 
     Commission may appoint, fix the compensation of, and define 
     the authority and duties of officers and employees (other 
     than the Administrator and Deputy Administrator) necessary 
     for the management, operation, and maintenance of the Panama 
     Canal and its complementary works, installations, and 
     equipment.
       ``(b) Individuals serving in any Executive agency (other 
     than the Commission) or the Smithsonian Institution, 
     including individuals in the uniformed services, may, if 
     appointed under this section or section 1104 of this Act, 
     serve as officers or employees of the Commission.''.

     SEC. 3527. APPLICABILITY OF CERTAIN BENEFITS.

       Section 1209 (22 U.S.C. 3649) is amended to read as 
     follows:


                  ``applicability of certain benefits

       ``Sec. 1209. Chapter 81 of title 5, United States Code, 
     relating to compensation for work injuries, chapters 83 and 
     84 of such title 5, relating to retirement, chapter 87 of 
     such title 5, relating to life insurance, and chapter 89 of 
     such title 5, relating to health insurance, are applicable to 
     Commission employees, except any individual--
       ``(1) who is not a citizen of the United States;
       ``(2) whose initial appointment by the Commission occurs 
     after October 1, 1979; and
       ``(3) who is covered by the Social Security System of the 
     Republic of Panama pursuant to any provision of the Panama 
     Canal Treaty of 1977 and related agreements.''.

     SEC. 3528. TRAVEL AND TRANSPORTATION.

       Section 1210 (22 U.S.C. 3650) is amended to read as 
     follows:


                      ``travel and transportation

       ``Sec. 1210. (a) Subject to subsections (b) and (c), the 
     Commission may pay travel and transportation expenses for 
     employees in accordance with subchapter II of chapter 57 of 
     title 5, United States Code.
       ``(b) For an employee to whom section 1206 applies, the 
     Commission may pay travel and transportation expenses 
     associated with vacation leave for the employee and the 
     immediate family of the employee notwithstanding requirements 
     regarding periods of service established by subchapter II of 
     chapter 57 of title 5, United States Code, or the regulations 
     promulgated thereunder.
       ``(c) For an employee to whom section 1206 does not apply, 
     the Commission may pay travel and transportation expenses 
     associated with vacation leave for the employee and the 
     immediate family of the employee notwithstanding requirements 
     regarding a written agreement concerning the duration of a 
     continuing service obligation established by subchapter II of 
     chapter 57 of title 5, United States Code, or the regulations 
     promulgated thereunder.
       ``(d)(1) Notwithstanding any other provision of law (except 
     paragraph (2)), the Commission may contract with Panamanian 
     carriers registered under the laws of the Republic of Panama 
     to provide air transportation to officials and employees of 
     the Commission who are citizens of the Republic of Panama.
       ``(2) Notwithstanding paragraph (1), an official or 
     employee of the Commission referred to in paragraph (1) may 
     elect, for security or other reasons, to travel by an air 
     carrier holding a certificate under section 41102 of title 
     49, United States Code.''.

     SEC. 3529. CLARIFICATION OF DEFINITION OF AGENCY.

       Subparagraph (B) of section 1211(1) (22 U.S.C. 3651(1)(B)) 
     is amended to read as follows:
       ``(B) any other Executive agency or the Smithsonian 
     Institution, to the extent of any election in effect under 
     section 1212(b) of this Act;''.

     SEC. 3530. PANAMA CANAL EMPLOYMENT SYSTEM; MERIT AND OTHER 
                   EMPLOYMENT REQUIREMENTS.

       (a) In General.--Section 1212 (22 U.S.C. 3652) is amended 
     to read as follows:


     ``panama canal employment system; merit and other employment 
                              requirements

       ``Sec. 1212. (a) The Commission shall establish a Panama 
     Canal Employment System and prescribe the regulations 
     necessary for its administration. The Panama Canal Employment 
     System shall--
       ``(1) be established in accordance with and be subject to 
     the provisions of the Panama Canal Treaty of 1977 and related 
     agreements, the provisions of this chapter, and any other 
     applicable provision of law;
       ``(2) be based on the consideration of the merit of each 
     employee or candidate for employment and the qualifications 
     and fitness of the employee to hold the position concerned;
       ``(3) conform, to the extent practicable and consistent 
     with the provisions of this Act, to the policies, principles, 
     and standards applicable to the competitive service;
       ``(4) in the case of employees who are citizens of the 
     United States, provide for the appropriate interchange of 
     those employees between positions under the Panama Canal 
     Employment System and positions in the competitive service; 
     and
       ``(5) not be subject to the provisions of title 5, United 
     States Code, unless specifically made applicable by this Act.
       ``(b)(1) The head of any Executive agency (other than the 
     Commission) and the Smithsonian Institution may elect to have 
     the Panama Canal Employment System made applicable in whole 
     or in part to personnel of that agency in the Republic of 
     Panama.
       ``(2) Any Executive agency (other than the Commission) and 
     the Smithsonian Institution, to the extent of any election 
     under paragraph (1), shall conduct its employment and pay 
     practices relating to employees in accordance with the Panama 
     Canal Employment System.
       ``(3) Notwithstanding any other provision of this Act or 
     the Panama Canal Act Amendments of 1996, this subchapter, as 
     last in effect before the effective date of section 3530 of 
     the Panama Canal Act Amendments of 1996, shall continue to 
     apply to an Executive agency or the Smithsonian Institution 
     to the extent of an election under paragraph (1) by the head 
     of agency or the Institution, respectively.
       ``(c) The Commission may exclude any employee or position 
     from coverage under any provision of this subchapter, other 
     than the interchange rights extended under subsection 
     (a)(4).''.
       (b) Savings Provisions.--The Panama Canal Employment System 
     and all elections, rules, regulations, and orders relating 
     thereto, as last in effect before the amendment made by 
     subsection (a) takes effect, shall continue in effect, 
     according to their terms, until modified, terminated, or 
     superseded under section 1212 of the Panama Canal Act of 
     1979, as amended by subsection (a).

     SEC. 3531. EMPLOYMENT STANDARDS.

       Section 1213 (22 U.S.C. 3653) is amended in the first 
     sentence by striking ``The head of each agency'' and 
     inserting ``The Commission''.

     SEC. 3532. REPEAL OF OBSOLETE PROVISION REGARDING INTERIM 
                   APPLICATION OF CANAL ZONE MERIT SYSTEM.

       Section 1214 (22 U.S.C. 3654) is repealed.

     SEC. 3533. REPEAL OF PROVISION RELATING TO RECRUITMENT AND 
                   RETENTION REMUNERATION.

       Section 1217(d) (22 U.S.C. 3657(d)) is repealed.

     SEC. 3534. BENEFITS BASED ON BASIC PAY.

       Section 1218(2) (22 U.S.C. 3658(2)) is amended to read as 
     follows:
       ``(2) benefits under subchapter III of chapter 83 or 
     chapter 84 of title 5, United States Code, relating to 
     retirement;''.

     SEC. 3535. VESTING OF GENERAL ADMINISTRATIVE AUTHORITY OF 
                   COMMISSION.

       Section 1223 (22 U.S.C. 3663) is amended to read as 
     follows:


                       ``central examining office

       ``Sec. 1223. The Commission shall establish a Central 
     Examining Office. The purpose of the office shall be to 
     implement the provisions of the Panama Canal Treaty of 1977 
     and related agreements with respect to recruitment, 
     examination, determination of qualification standards, and 
     similar matters relating to employment of the Commission.''.

     SEC. 3536. APPLICABILITY OF CERTAIN LAWS.

       Section 1224 (22 U.S.C. 3664) is amended to read as 
     follows:


             ``applicability of title 5, united states code

       ``Sec. 1224. The following provisions of title 5, United 
     States Code, apply to the Panama Canal Commission:
       ``(1) Part I of title 5 (relating to agencies generally).

[[Page H9119]]

       ``(2) Chapter 21 (relating to employee definitions).
       ``(3) Section 2302(b)(8) (relating to whistleblower 
     protection) and all provisions of title 5 relating to the 
     administration or enforcement or any other aspect thereof, as 
     identified in regulations prescribed by the Commission in 
     consultation with the Office of Personnel Management.
       ``(4) All provisions relating to preference eligibles.
       ``(5) Section 5514 (relating to offset from salary).
       ``(6) Section 5520a (relating to garnishments).
       ``(7) Sections 5531-5535 (relating to dual pay and 
     employment).
       ``(8) Subchapter VI of chapter 55 (relating to accumulated 
     and accrued leave).
       ``(9) Subchapter IX of chapter 55 (relating to severance 
     and back pay).
       ``(10) Chapter 57 (relating to travel, transportation, and 
     subsistence).
       ``(11) Chapter 59 (relating to allowances).
       ``(12) Chapter 63 (relating to leave for CONUS employees).
       ``(13) Section 6323 (relating to military leave; Reserves 
     and National Guardsmen).
       ``(14) Chapter 71 (relating to labor relations).
       ``(15) Subchapters II and III of chapter 73 (relating to 
     employment limitations and political activities, 
     respectively) and all provisions of title 5 relating to the 
     administration or enforcement or any other aspect thereof, as 
     identified in regulations prescribed by the Commission in 
     consultation with the Office of Personnel Management.
       ``(16) Chapter 81 (relating to compensation for work 
     injuries).
       ``(17) Chapters 83 and 84 (relating to retirement).
       ``(18) Chapter 85 (relating to unemployment compensation).
       ``(19) Chapter 87 (relating to life insurance).
       ``(20) Chapter 89 (relating to health insurance).''.

     SEC. 3537. REPEAL OF PROVISION RELATING TO TRANSFERRED OR 
                   REEMPLOYED EMPLOYEES.

       Section 1231(a)(3) (22 U.S.C. 3671(a)(3)) is repealed.

     SEC. 3538. ADMINISTRATION OF SPECIAL DISABILITY BENEFITS.

       Section 1245 (22 U.S.C. 3682) is amended by striking so 
     much as precedes subsection (b) and inserting the following:


            ``administration of certain disability benefits

       ``Sec. 1245. (a)(1) The Commission, or any other United 
     States Government agency or private entity acting pursuant to 
     an agreement with the Commission, under the Act entitled `An 
     Act authorizing cash relief for certain employees of the 
     Panama Canal not coming within the provisions of the Canal 
     Zone Retirement Act', approved July 8, 1937 (50 Stat. 478; 68 
     Stat. 17), may continue the payments of cash relief to those 
     individual former employees of the Canal Zone Government or 
     Panama Canal Company or their predecessor agencies not coming 
     within the scope of the former Canal Zone Retirement Act 
     whose services were terminated prior to October 5, 1958, 
     because of unfitness for further useful service by reason of 
     mental or physical disability resulting from age or disease.
       ``(2) Subject to subsection (b), cash relief under this 
     subsection may not exceed $1.50 per month for each year of 
     service of the employees so furnished relief, with a maximum 
     of $45 per month, plus the amount of any cost-of-living 
     increases in such cash relief granted before October 1, 1979, 
     pursuant to section 181 of title 2 of the Canal Zone Code (as 
     in effect on September 30, 1979), nor be paid to any employee 
     who, at the time of termination for disability prior to 
     October 5, 1958, had less than 10 years' service with the 
     Canal Zone Government, the Panama Canal Company, or their 
     predecessor agencies on the Isthmus of Panama.''.

     SEC. 3539. PANAMA CANAL REVOLVING FUND.

       Section 1302 of the Panama Canal Act of 1979 (22 U.S.C. 
     3712) is amended to read as follows:


                     ``panama canal revolving fund

       ``Sec. 1302. (a) There is established in the Treasury of 
     the United States a revolving fund to be known as `Panama 
     Canal Revolving Fund'. The Panama Canal Revolving Fund shall, 
     subject to subsection (b), be available to the Commission to 
     carry out the purposes, functions, and powers authorized by 
     this Act, including for--
       ``(1) the hire of passenger motor vehicles and aircraft;
       ``(2) uniforms or allowances therefor;
       ``(3) official receptions and representation expenses of 
     the Board, the Secretary of the Commission, and the 
     Administrator;
       ``(4) the operation of guide services;
       ``(5) a residence for the Administrator;
       ``(6) disbursements by the Administrator for employee and 
     community projects;
       ``(7) the procurement of expert and consultant services;
       ``(8) promotional activities, including the preparation, 
     distribution, or use of any kit, pamphlet, booklet, 
     publication, radio, television, film, or other media 
     presentation designed to promote the Panama Canal as a 
     resource of the world shipping industry; and
       ``(9) the purchase and transportation to the Republic of 
     Panama of passenger motor vehicles, including large, heavy-
     duty vehicles.
       ``(b)(1) There shall be deposited in the Panama Canal 
     Revolving Fund, on a continuing basis, toll receipts (other 
     than amounts of toll receipts deposited into the Panama Canal 
     Commission Dissolution Fund under section 1305) and all other 
     receipts of the Commission. Except as provided in section 
     1303, no funds may be obligated or expended by the Commission 
     in any fiscal year unless such obligation or expenditure has 
     been specifically authorized by law.
       ``(2) No funds may be authorized for the use of the 
     Commission, or obligated or expended by the Commission in any 
     fiscal year, in excess of--
       ``(A) the amount of revenues deposited in the Panama Canal 
     Revolving Fund and the Panama Canal Commission Dissolution 
     Fund during such fiscal year, plus
       ``(B) the amount of revenues deposited in the Panama Canal 
     Revolving Fund before such fiscal year and remaining 
     unobligated at the beginning of such fiscal year; plus
       ``(C) the $100,000,000 borrowing authority provided for in 
     section 1304 of this Act.
     Not later than 30 days after the end of each fiscal year, the 
     Secretary of the Treasury shall report to the Congress the 
     amount of revenues deposited in the Panama Canal Revolving 
     Fund during such fiscal year.
       ``(c) With the approval of the Secretary of the Treasury, 
     the Commission may deposit amounts in the Panama Canal 
     Revolving Fund in any Federal Reserve bank, any depositary 
     for public funds, or such other place and in such manner as 
     the Commission and the Secretary may agree.
       ``(d)(1) It is the sense of the Congress that the 
     additional costs resulting from the implementation of the 
     Panama Canal Treaty of 1977 and related agreements should be 
     kept to the absolute minimum level. To this end, the Congress 
     declares appropriated costs of implementation to be borne by 
     the taxpayers over the life of such Treaty should be kept to 
     a level no greater than the March 1979 estimate of those 
     costs ($870,700,000) presented to the Congress by the 
     executive branch during consideration of this Act by the 
     Congress, less personnel retirement costs of $205,000,000, 
     which were subtracted and charged to tolls, therefore 
     resulting in net taxpayer cost of approximately $665,700,000, 
     plus appropriate adjustments for inflation.
       ``(2) It is further the sense of the Congress that the 
     actual costs of implementation be consistent with the 
     obligations of the United States to operate the Panama Canal 
     safely and efficiently and keep it secure.''.

     SEC. 3540. PRINTING.

       Title I is amended in chapter 3 (22 U.S.C. 3711 et seq.) by 
     adding at the end of subchapter I the following new section:


                               ``printing

       ``Sec. 1306. (a) Section 501 of title 44, United States 
     Code, shall not apply to direct purchase by the Commission 
     for its use of printing, binding, and blank-book work in the 
     Republic of Panama when the Commission determines that such 
     direct purchase is in the best interest of the Government.
       ``(b) This section shall not affect the Commission's 
     authority, under chapter 5 of title 44, United States Code, 
     to operate a field printing plant.''.

     SEC. 3541. ACCOUNTING POLICIES.

       (a) Section 1311.--Section 1311(a) (22 U.S.C. 3721(a)) is 
     amended by striking out ``the Accounting and Auditing Act of 
     1950 (31 U.S.C. 65 et seq.)'' in the first sentence and 
     inserting in lieu thereof ``chapter 91 of title 31, United 
     States Code,''.
       (b) Section 1313.--Section 1313 (22 U.S.C. 3723) is amended 
     by striking out ``the Accounting and Auditing Act of 1950 (31 
     U.S.C. 65 et seq.)'' in subsections (a) and (c) and inserting 
     in lieu thereof ``chapter 91 of title 31, United States 
     Code,''.

     SEC. 3542. INTERAGENCY SERVICES; REIMBURSEMENTS.

       Section 1321(e) (22 U.S.C. 3731(e)) is amended by adding at 
     the end the following sentence:
     ``Notwithstanding the provisions relating to the availability 
     of adequate schools contained in section 5924(4)(A) of title 
     5, United States Code, the Commission shall by regulation 
     determine the extent to which costs of educational services 
     may be defrayed under this subsection.''.

     SEC. 3543. POSTAL SERVICE.

       Section 1331 (22 U.S.C. 3741) is amended to read as 
     follows:


                            ``postal service

       ``Sec. 1331. (a) The Commission shall take possession of 
     and administer the funds of the Canal Zone postal service and 
     shall assume its obligations.
       ``(b) Effective December 1, 1999, neither the Commission 
     nor the United States Government shall be responsible for the 
     distribution of any accumulated unpaid balances relating to 
     Canal Zone postal-savings deposits, postal-savings 
     certificates, and postal money orders.
       ``(c) Mail addressed to the Canal Zone from or through the 
     continental United States may be routed by the United States 
     Postal Service to the military post offices of the United 
     States Armed Forces in the Republic of Panama. Such military 
     post offices shall provide the required directory services 
     and shall accept such mail to the extent permitted under the 
     Panama Canal Treaty of 1977 and related agreements. The 
     Commission shall furnish personnel, records, and other 
     services to such military post offices to assure wherever 
     appropriate the distribution, rerouting, or return of such 
     mail.''.

     SEC. 3544. INVESTIGATION OF ACCIDENTS OR INJURY GIVING RISE 
                   TO CLAIM.

       Section 1417(1) (22 U.S.C. 3777(1)) is amended to read as 
     follows:

[[Page H9120]]

       ``(1) an investigation of the accident or injury giving 
     rise to the claim has been completed, which shall include a 
     hearing by the Board of Local Inspectors of the Commission; 
     and''.

     SEC. 3545. OPERATIONS REGULATIONS.

       Section 1801 (22 U.S.C. 3811) is amended by striking 
     ``President'' and inserting ``Commission''.

     SEC. 3546. MISCELLANEOUS REPEALS.

       (a) Repeals.--The following provisions are repealed:
       (1) Section 1605 (22 U.S.C. 3795), relating to interim toll 
     adjustment.
       (2) Section 1701 (22 U.S.C. 3801), relating to the 
     authority of the President to prescribe certain regulations.
       (3) Section 1702 (22 U.S.C. 3802), relating to the 
     authority of the Panama Canal Commission to prescribe certain 
     regulations.
       (4) Title II (22 U.S.C. 3841-3852), relating to the Treaty 
     transition period.
       (5) Chapter 1 of title III (22 U.S.C. 3861), relating to 
     cemeteries.
       (6) Section 1246, relating to appliances for certain 
     injured employees.
       (7) Section 1251, relating to leave for jury or witness 
     service.
       (8) Section 1301, relating to Canal Zone Government funds.
       (9) Section 1313(c), relating to audits.
       (b) Conforming Amendments.--Section 1313 is further amended 
     by redesignating subsections (d) and (e) as subsections (c) 
     and (d), respectively.

     SEC. 3547. EXEMPTION FROM METRIC CONVERSION ACT OF 1975.

       Section 3302 is amended to read as follows:


             ``exemption from metric conversion act of 1975

       ``Sec. 3302. The Commission is exempt from the provisions 
     of the Metric Conversion Act of 1975 (15 U.S.C. 205a et 
     seq.).''.

     SEC. 3548. CONFORMING AND CLERICAL AMENDMENTS.

       (a) Title 5 Employment Law.--Title 5, United States Code, 
     is amended as follows:
       (1) Section 3401(1) is amended--
       (A) by striking out clause (v); and
       (B) by redesignating clauses (vi), (vii), and (viii) as 
     clauses (v), (vi), and (vii), respectively.
       (2) Section 5102 is amended--
       (A) in subsection (a)(1)--
       (i) by striking out clause (vi); and
       (ii) by redesignating clauses (vii), (viii), (ix), (x), and 
     (xi) as clauses (vi), (vii), (viii), (ix), and (x), 
     respectively; and
       (B) in subsection (c), by striking out paragraph (12).
       (3) Subchapter IV of chapter 53 is amended--
       (A) in section 5342(a)(1)--
       (i) by striking out subparagraph (G); and
       (ii) by redesignating subparagraphs (H), (I), (J), (K), and 
     (L) as subparagraphs (G), (H), (I), (J), and (K), 
     respectively;
       (B) in section 5343(a)(5), by striking out ``the areas and 
     installations in the Republic of Panama'' and all that 
     follows through ``Panama Canal Act of 1979),''; and
       (C) in section 5348--
       (i) by striking out subsection (b);
       (ii) by redesignating subsection (c) as subsection (b); and
       (iii) in subsection (a), by striking out ``subsections (b) 
     and (c)'' and inserting in lieu thereof ``subsection (b)''.
       (4) Section 5373 is amended--
       (A) by striking out paragraph (1); and
       (B) by redesignating paragraphs (2), (3), and (4) as 
     paragraphs (1), (2), and (3), respectively.
       (5) Section 5537(c) is amended by striking out ``the United 
     States District Court for the District of the Canal Zone, the 
     District Court of Guam, and the District Court of the Virgin 
     Islands.'' and inserting in lieu thereof ``the District Court 
     of Guam and the District Court of the Virgin Islands.''.
       (6) Section 5541(2)(xii) is amended--
       (A) by inserting ``or'' after ``Services Administration,''; 
     and
       (B) by striking out ``, or a vessel employee of the Panama 
     Canal Commission'';
       (7) Section 5924(3) is amended by striking out the last 
     sentence.
       (8) Section 6322(a) is amended--
       (A) by striking out ``Puerto Rico,'' and inserting in lieu 
     thereof ``Puerto Rico or''; and
       (B) by striking out ``, or the Republic of Panama''.
       (9) Section 7901(f) is amended to read as follows:
       ``(f) The health programs conducted by the Tennessee Valley 
     Authority are not affected by this section.''.
       (b) Cross References in Panama Canal Act.--
       (1) Section 1211(1)(B) (22 U.S.C. 3651(1)(B)) is amended by 
     striking out ``section 1212(B)(2)'' and inserting in lieu 
     thereof ``section 1212(b)''.
       (2) Section 1303 (22 U.S.C. 3713) is amended by striking 
     out ``section 1302(c)(1)'' both places it appears and 
     inserting in lieu thereof ``section 1302(b)(1)''.
       (3) Section 1341(f) (22 U.S.C. 3751(f)) is amended by 
     striking out ``section 1302(c)'' and inserting in lieu 
     thereof ``section 1302(b)''.
       (c) Section Headings.--
       (1) The heading of section 3 (22 U.S.C. 3602) is amended to 
     read as follows:


                            ``definitions''.

       (2) The heading of section 1245 (22 U.S.C. 3682) is amended 
     to read as follows:


           ``administration of certain disability benefits''.

       (d) Table of Contents.--The table of contents in section 1 
     is amended as follows:
       (1) The items relating to sections 1101, 1102a, 1102b, and 
     1313 are amended by inserting ``Sec.'' before the section 
     number.
       (2) The item relating to section 3 is amended to read as 
     follows:

``Sec. 3. Definitions.''.

       (3) The item relating to section 1104 is amended to read as 
     follows:

``Sec. 1104. Deputy Administrator.''.

       (4) The items relating to sections 1209 and 1210 are 
     amended to read as follows:

``Sec. 1209. Applicability of certain benefits.
``Sec. 1210. Travel and transportation.''.

       (5) The items relating to sections 1223 and 1224 are 
     amended to read as follows:

``Sec. 1223. Central Examining Office.
``Sec. 1224. Applicability of title 5, United States Code.''.

       (6) The item relating to section 1245 is amended to read as 
     follows:

``Sec. 1245. Administration of certain disability benefits.''.

       (7) The item relating to section 3302 is amended to read as 
     follows:

``Sec. 3302. Exemption from Metric Conversion Act of 1975.''.

       (8) Such table of contents is further amended by inserting 
     after the item relating to section 1305 the following new 
     item:

``Sec. 1306. Printing.''.

       (9) Such table of contents is further amended--
       (A) by striking out the items relating to sections 1214, 
     1246, 1251, 1301, 1605, 1701, 1702, 2101, 2201, 2202, 2203, 
     2204, 2205, 2206, 2301, 2401, 2402, and 3101; and
       (B) by striking out the items relating to the heading of 
     title II, the headings of chapters 1, 2, 3, and 4 of such 
     title, and the heading of chapter 1 of title III.

     SEC. 3549. REPEAL OF PANAMA CANAL CODE.

       The Panama Canal Code is repealed.

       And the Senate agree to the same.
       That the Senate recede from its amendment to the title of 
     the bill.

     From the Committee on National Security, for consideration of 
     the House bill and the Senate amendment, and modifications 
     committed to conference:
     Floyd Spence,
     Bob Stump,
     Duncan Hunter,
     John R. Kasich,
     Herbert H. Bateman,
     James V. Hansen,
     Curt Weldon,
     Joel Hefley,
     Jim Saxton,
     Randy ``Duke'' Cunningham,
     Stephen E. Buyer,
     Peter G. Torkildsen,
     Tillie K. Fowler,
     John M. McHugh,
     J.C. Watts, Jr.,
     John N. Hostettler,
     Saxby Chambliss,
     Van Hilleary,
     Alcee L. Hastings,
     G.V. Montgomery,
     Ike Skelton,
     John M. Spratt, Jr.,
     Solomon P. Ortiz,
     Owen Pickett,
     Glen Browder,
     Gene Taylor,
     Frank Tejeda,
     Paul McHale,
     Patrick J. Kennedy,
     Rosa L. DeLauro,
     As additional conferees from the Permanent Select Committee 
     on Intelligence, for consideration of matters within the 
     jurisdiction of that committee under clause 2 of rule XLVIII:
     Larry Combest,
     Jerry Lewis,
     Norm Dicks,
     As additional conferees from the Committee on Banking and 
     Financial Services, for consideration of sections 1085 and 
     1089 of the Senate amendment, and modifications committed to 
     conference:
     Michael N. Castle,
     Spencer Bachus,
     Henry Gonzalez,
     As additional conferees from the Committee on Commerce, for 
     consideration of sections 601, 741, 742, 2863, 3154, and 3402 
     of the House bill, and sections 345-47, 561, 562, 601, 1080, 
     2827, 3174, 3175, and 3181-91 of the Senate amendment, and 
     modifications committed to conference:
     Thomas Bliley,
     Michael Bilirakis,
     Provided that Mr. Richardson is appointed in lieu of Mr. 
     Dingell and Mr. Schaefer is appointed in lieu of Mr. 
     Bilirakis for consideration of sections 3181-91 of the Senate 
     amendment:
     Dan Schaefer,
     Provided that Mr. Oxley is appointed in lieu of Mr. Bilirakis 
     for the consideration of section 3154 of the House bill, and 
     sections 345-47, 3174, and 3175 of the Senate amendment:
     Michael G. Oxley,
     Provided that Mr. Schaefer is appointed in lieu of Mr. 
     Bilirakis for the consideration of sections 2863 and 3402 of 
     the House bill, and section 2827 of the Senate amendment:
     Dan Schaefer,
     As additional conferees from the Committee on Government 
     Reform and Oversight, for

[[Page H9121]]

     consideration of sections 332-36, 362, 366, 807, 821-25, 
     1047, 3523-39, 3542, and 3548 of the House bill, and sections 
     636, 809(b), 921, 924, 925, 1081, 1082, 1101, 1102, 1104, 
     1105, 1109-34, 1401-34, and 2826 of the Senate amendment, and 
     modifications committed to conference:
     W. F. Clinger,
     Provided that Mr. Horn is appointed in lieu of Mr. Mica for 
     consideration of sections 362, 366, 807, and 821-25 of the 
     House bill, and sections 809(b), 1081, 1401-34, and 2826 of 
     the Senate amendment:
     Stephen Horn,
     Provided that Mr. Zeliff is appointed in lieu of Mr. Mica for 
     consideration of section 1082 of the Senate amendment:
     Bill Zeliff,
     As additional conferees from the Committee on International 
     Relations, for consideration of sections 233-34, 237, 1041, 
     1043, 1052, 1101-05, 1301, 1307, and 1501-53 of the House 
     bill, and sections 234, 1005, 1021, 1031, 1041-43, 1045, 
     1323, 1332-35, 1337, 1341-44, and 1352-54 of the Senate 
     amendment, and modifications committee to conference:
     Benjamin A. Gilman,
     Doug Bereuter,
     As additional conferees from the Committee on the Judiciary, 
     for consideration of sections 537, 543, 1066, 1080, 1088, 
     1201-16, and 1313 of the Senate amendment, and modifications 
     committed to conference:
     Henry Hyde,
     Bill McCollum,
     John Conyers, Jr.,
     Provided that Mr. Moorhead is appointed in lieu of Mr. 
     McCollum for consideration of sections 537 and 1080 of the 
     Senate amendment:
     Carlos J. Moorhead,
     Provided that Mr. Smith of Texas is appointed in lieu of Mr. 
     McCollum for consideration of sections 1066 and 1201-16 of 
     the Senate amendment:
     Lamar Smith,
     As additional conferees from the Committee on Resources, for 
     consideration of sections 247, 601, 2821, 1401-14, 2901-13, 
     and 2921-31 of the House bill, and sections 251-52, 351, 601, 
     1074, 2821, 2836, and 2837 of the Senate amendment, and 
     modifications committed to conference:
     James V. Hansen,
     Jim Saxton,
     As additional conferees from the Committee on Science, for 
     consideration of sections 203, 211, 245, and 247 of the House 
     bill, and sections 211, 251-52, and 1044 of the Senate 
     amendment, and modifications committed to conference:
     Robert S. Walker,
     James Sensenbrenner, Jr.,
     Jane Harman,
     As additional conferees from the Committee on Transportation 
     and Infrastructure, for consideration of sections 324, 327, 
     501, and 601 of the House bill, and sections 345-48, 536, 
     601, 641, 1004, 1009, 1010, 1311, 1314, and 3162 of the 
     Senate amendment, and modifications committed to conference:
     Bud Shuster,
                                Managers on the Part of the House.

     Bob Stump,
     Christopher H. Smith,
     G.V. Montgomery,
     Strom Thurmond,
     John Warner,
     Bill Cohen,
     John McCain,
     Dan Coats
     Bob Smith,
     Dirk Kempthorne,
     Jim Inhofe,
     Rick Santorum,
     Sheila Frahm,
     Sam Nunn,
     Carl Levin,
     Ted Kennedy,
     Jeff Bingaman,
     Robert C. Byrd,
     Chuck Robb,
     J. Lieberman,
     Richard H. Bryan,
                               Managers on the Part of the Senate.

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       The managers on the part of the House and the Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendment of the Senate to the bill (H.R. 3230) to authorize 
     appropriations for fiscal year 1997 for defense activities of 
     the Department of Defense, for military construction, and for 
     defense programs of the Department of Energy, to prescribe 
     personnel strengths for such fiscal year for the Armed 
     Forces, and for other purposes, submit the following joint 
     statement to the House and the Senate in explanation of the 
     effect of the action agreed upon by the managers and 
     recommended in the accompanying conference report:
       The Senate amendment struck out all of the House bill after 
     the enacting clause and inserted a substitute text.
       The House recedes from its disagreement to the amendment of 
     the Senate with an amendment which is a substitute for the 
     House bill and the Senate amendment. The differences between 
     the House bill, the Senate amendment, and the substitute 
     agreed to in conference are noted below, except for clerical 
     corrections, conforming changes made necessary by agreements 
     reached by the conferees, and minor drafting and clarifying 
     changes.

                 Summary Statement of Conference Action

       The conferees recommend authorizations for the Department 
     of Defense for procurement, research and development, test 
     and evaluation, operation and maintenance, working capital 
     funds, military construction and family housing, weapons 
     programs of the Department of Energy, and civil defense that 
     have a budget authority implication of $265.6 billion.

                    Summary Table of Authorizations

       The defense authorization act provides authorizations for 
     appropriations but does not generally provide budget 
     authority. Budget authority is generally provided in 
     appropriation acts.
       In order to relate the conference recommendations to the 
     Budget Resolution, matters in addition to the dollar 
     authorizations contained in this bill must be taken into 
     account. A number of programs in the defense function are 
     authorized permanently or, in certain instances, authorized 
     in other annual legislation. In addition, this authorization 
     bill would establish personnel levels and include a number of 
     legislative provisions affecting military compensation.
       The following table summarizes authorizations included in 
     the bill for fiscal year 1997 and, in addition, summarizes 
     the implication of the conference action for the budget 
     totals for national defense (budget function 050).

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     Congressional defense committees
       The term ``congressional defense committees'' is often used 
     in this statement of the managers. It means the Defense 
     Authorization and Appropriations Committees of the Senate and 
     House of Representatives.

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

     Overview
       The budget request for fiscal year 1997 contained an 
     authorization of $39,208.4 million for procurement in the 
     Department of Defense. The House bill would authorize 
     $47,164.9 million. The Senate amendment would authorize 
     $46,900.6 million. The conferees recommended an authorization 
     of $45,272.1 million. Unless noted explicitly in the 
     statement of managers, all changes are made without 
     prejudice.

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[[Page H9129]]

     Overview
       The budget request for fiscal year 1997 contained an 
     authorization of $970.8 million for Aircraft Procurement, 
     Army in the Department of Defense. The House bill would 
     authorize $1,556.6 million. The Senate amendment would 
     authorize $1,508.5 million. The conferees recommended an 
     authorization of $1,314.0 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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[[Page H9132]]

     Airborne Reconnaissance Low (ARL)
       The budget request included $24.7 million to procure the 
     final ARL-M aircraft and mission equipment.
       The House bill would authorize an increase of $5.2 million 
     to complete the moving target indicator (MTI) upgrade.
       The Senate amendment would support the budget request.
       The Senate recedes.
       The conferees understand that the Army reprogrammed fiscal 
     year 1996 funds that were authorized and appropriated for 
     converting ARL-I and ARL-C aircraft to the ARL-M 
     configuration. These funds were applied to incorporate an MTI 
     radar into the ARL. Although the reprogramming action was 
     within the scope of the Department's authority, the conferees 
     are concerned with the Army's failure to notify the 
     appropriate committee of what it considers a major shift of 
     the funds. The conferees do, however, support the validated 
     requirement or MTI on ARL, and are aware that funds have not 
     been budgeted to complete the MTI purchase.
       Therefore, the conferees agree to authorize $29.9 million 
     to provide the necessary funding to complete the ARL-I/-C 
     conversion to ARL-M and complete the MTI radar upgrade. The 
     conferees fully expect the Army to budget for completion of 
     the ARL-I/-C conversion in future budget requests.
     C-XX medium range aircraft
       The budget request did not contain any funds for UC-35A (C-
     XX) aircraft.
       The Army has identified the UC-35A as its highest priority 
     fixed-wing program due to the operational efficiencies 
     derived from its modern design. The conferees also note the 
     savings achieved through the competitive procurement of this 
     aircraft. However, the budget request included no funds to 
     procure additional aircraft.
       The House bill would support the budget request.
       The Senate amendment would authorize an increase of $35.0 
     million for eight production UC-35A turbofan aircraft.
       The conferees agree to authorize an increase of $22.0 
     million to procure five UC-35A aircraft.
     CH-47 modifications
       The budget request included $7.8 million to procure safety 
     and operational modifications for the CH-47 helicopter fleet.
       The conferees remain concerned about the heavy lift 
     capability for the Army and the ability of an aging fleet to 
     perform this critical mission. Over time, modifications to 
     the existing CH-47 airframe have added significant weight to 
     the aircraft, requiring an upgrade to the current engine 
     configuration. It is expected that the proposed T55-L-714 
     engine will increase payload capability by up to 3900 pounds 
     and greatly reduce operation and maintenance costs over the 
     life cycle of the new engine.
       The House bill would add $52.0 million to accelerate engine 
     conversions for contingency corps aircraft. The Senate 
     amendment would add $52.3 million for the same purpose.
       The conferees agree to authorize $59.8 million to begin the 
     upgrade process for the fleet.
     Longbow
       The budget request included $373.9 million to procure 
     Apache Longbow (AH-64) systems.
       The House bill and the Senate amendment would authorize an 
     increase of $53.0 million to procure training devices for 
     these important aircraft.
       The conferees note the outstanding requirement of 
     institutional training devices. These devices are an 
     essential element of aviation training activities and need to 
     be fielded as soon as practicable.
       The conferees agree to authorize $426.9 million to 
     accelerate the delivery of these devices in accordance with 
     the updated AF-64D fielding review.
     OH-58D Kiowa Warrior
       The budget request included $9.1 million to complete 
     fielding of previously procured Kiowa Warrior systems.
       The House bill would authorize an increase of $190.0 
     million to convert 24 aircraft.
       The Senate amendment would authorize an increase of $158.4 
     million to complete outstanding retrofit requirements and 
     convert 15 aircraft.
       The Senate recedes.
       The conferees agree to authorize a total of $199.1 million.
     Aircraft survivability equipment modifications
       The budget request included $4.8 million for aircraft 
     survivability equipment.
       The House bill would add $20.0 million to procure 
     additional aviation survivability equipment.
       The Senate amendment would add $34.0 million.
       The conferees agree to authorize $25.8 million to support 
     vital aircraft survivability modifications as follows:
       (1) $11.0 million for AN/AVR-2A(V) laser detection sets;
       (2) $5.0 million for radar deception and jamming device 
     integration; and
       (3) $5.0 million to accelerate procurement of installation 
     kits for advanced threat infrared countermeasure devices.
     Overview
       The budget request for fiscal year 1997 contained an 
     authorization of $766.3 million for Missile Procurement, Army 
     in the Department of Defense. The House bill would authorize 
     $1,027.8 million. The Senate amendment would authorize 
     $1,160.8 million. The conferees recommended an authorization 
     of $1,031.8 million. Unless noted explicitly in the statement 
     of managers, all changes are made without prejudice.

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[[Page H9134]]

     Avernger
       The budget request included no funding for Avenger fire 
     units for the National Guard.
       The House bill would authorize an increase of $59.4 million 
     to procure 93 Avenger fire units. The House bill included a 
     provision (sec. 112) that would grant an extension to the 
     Avenger multiyear procurement authorization.
       The Senate amendment would support the budget request.
       The Senate recedes.
       The conferees agree to recommend $59.4 million to complete 
     contract buyout of Avenger fire units. The conferees agree to 
     a legislative provision that would extend the Avenger 
     multiyear procurement authority to accommodate the contract 
     buyout.
     Javelin medium anti-tank weapon
       The budget request included $162.1 million to procure 1,020 
     Javelin missiles.
       The House bill would authorize an increase of $33.9 million 
     to procure an additional 300 missiles and to accelerate 
     production and fielding of command launch units (CLUs).
       The Senate amendment would: authorize the Army to enter 
     into a multiyear contract for Javelin missiles; authorize an 
     increase of $5.7 million for accelerated production and 
     fielding of CLUs; and authorize an additional $34.0 million 
     for economic order quantity procurement of material.
       The conferees agree to authorize $196.0 million for the 
     Javelin system for economic order quantity procurement of 
     material.
     Multiple Launch Rocket System (MLRS) rocket
       The budget request included $24.4 million to procure 852 
     extended range rockets.
       The House bill and the Senate amendment would authorize an 
     additional $17.0 million in order to maintain a stable 
     production rate and procure additional rockets.
       The conferees agree to a total of $41.4 million for MLRS 
     rocket production.
     Multiple Launch Rocket System (MLRS) launcher
       The budget request included $38.0 million for program 
     support to fielded launchers.
       The House bill would authorize an increase of $66.2 million 
     to support Army National Guard (ARNG) efforts to convert 
     artillery battalions to MLRS configuration. Of this amount, 
     $36.3 million would be available to rebuild 36 MLRS launchers 
     and $29.9 million for training equipment and spare parts.
       The Senate amendment would add $147.0 million, including 
     $110.0 million to procure four of six batteries to 
     restructure fire support for heavy divisions, and $37.0 
     million to refurbish four batteries to support ARNG 
     modernization.
       The Senate recedes.
       The conferees agree to a total of $104.2 million for MLRS 
     launchers.
     Stinger missile modifications
       The budget request included $16.9 million for missile 
     hardware and software modifications.
       The House bill would add $15.0 million to retrofit an 
     additional 1,000 missiles to the Block I configuration and 
     $5.0 million to modify both ground and air platforms to 
     employ the missiles.
       The Senate amendment would authorize an increase of $7.0 
     million to raise the retrofit production rate to an economic 
     level and $15.8 million to support production and 
     installation of new modules in Force Package 1 and 2 
     platforms.
       The Senate recedes.
       The conferees agree to authorize $36.9 million for Stinger 
     modifications. Of this amount, the conferees recommend that 
     $470,000 be used for the qualification and limited production 
     proofing of asbestos-free Stinger rocket motors to support a 
     future production capability.
     Dragon missile
       The budget request included $3.2 million for Dragon missile 
     modifications.
       The House bill would support the budget request.
       The Senate amendment would authorize an increase of $25.0 
     million to support lethality enhancements to fielded 
     missiles.
       The Senate recedes.
       The conferees agree to an increase of $25.0 million in the 
     Army National Guard modernization authorization for Dragon 
     missile lethality enhancements.
     Overview
       The budget request for fiscal year 1997 contained an 
     authorization of $1,102.0 million for Weapons and Tracked 
     Combat Vehicles Procurement, Army in the Department of 
     Defense. The House bill would authorize $1,334.8 million. The 
     Senate amendment would authorize $1,460.1 million. The 
     conferees recommended an authorization of $1,409.5 million. 
     Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

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     Bradley Fighting Vehicle (BFV)
       The budget request included $134.4 million for the Bradley 
     base sustainment program.
       The House bill would support the budget request.
       The Senate amendment would authorize an increase of $57.2 
     million to procure Bradley vehicles.
       The House recedes.
       The conferees note the budget request supports the 
     procurement of the first low-rate initial production models 
     of the A3 version of the BFV. Recognizing the enhanced 
     capabilities of the A3 model, as well as the benefit of 
     achieving the low rate initial production requirement faster, 
     the conferees agree to an increase of $57.2 million to 
     procure an additional 18 vehicles.
       The conferees agree to authorize $191.6 million for the 
     BFV.
     Carrier modifications (M113)
       The budget request included $23.0 million to continue 
     modernization of the M113 armored personnel carrier family of 
     vehicles.
       The House bill would provide an increase of $29.0 million.
       The Senate amendment would provide an increase of $20.0 
     million.
       The House recedes.
       The conferees agree to authorize $43.0 million for M113 
     upgrades.
     Bradley modifications
       The budget request included $83.7 million for Bradley 
     system modifications.
       The House bill and the Senate amendment would authorize an 
     increase of $35.5 million to buy out the requirement for 
     reactive armor tiles and establish a domestic production 
     capability.
       The conferees agree to authorize an additional $35.5 
     million for this purpose.
     Paladin/Field Artillery Ammunition Support Vehicle (FAASV)
       The budget request did not included any funds to procure 
     Paladins/FAASVs for the Army National Guard.
       The House bill would add $61.0 million to procure one 
     battalion set of Paladins/FAASVs.
       The Senate amendment would add $112.0 million to procure 
     two battalion sets of Paladins/FAASVs.
       The Senate recedes.
       The conferees agree to authorize $61.0 million for the 
     procurement of one battalion set of Paladins/FAASVs (24 of 
     each) and direct that these systems be exclusively for the 
     Army National Guard.
     Improved Recovery Vehicle
       The budget request included $28.6 million to procure 12 
     M88A1E1 Hercules Improved Recovery Vehicles.
       The House bill would authorize an increase of $27.1 million 
     for these vehicles.
       The Senate amendment would authorize an increase of $51.1 
     million.
       The Senate recedes.
       The conferees agree to authorize $55.7 million to procure 
     Hercules vehicles. The conferees understand the importance of 
     procuring these vehicles as soon as possible because the 
     older M88A1 lacks the necessary horsepower and braking 
     ability to support recovery of the Abrams main battle tank 
     safely.
     M1 Abrams tank (modifications)
       The budget request included $50.2 million to procure 
     modification kits for the M1 Abrams tank to improve 
     lethality, survivability, and safety.
       The House bill would authorize $40.2 million in procurement 
     and mover $10.0 million to research and development to fund 
     development of under-armor auxiliary power units (APUs).
       The Senate amendment would authorize an increase of $15.0 
     million to procure external APUs and additional pulse-jet air 
     systems (PJAS).
       The conferees are concerned about operation and maintenance 
     costs for the Abrams fleet and have noted the successful 
     application of external APUs in reducing the requirement for 
     main engine idling during defensive operations. Demand for 
     the external APU by soldiers in Bosnia is a significant 
     endorsement for this modification.
       Additionally, the conferees note progress toward correcting 
     an established Operation Desert Storm deficiency with the air 
     filtration system on the Abrams. Recognizing the enhancement 
     to the combat capability of a unit made by installing the 
     PJAS, the conferees support an acceleration of procurement 
     for these devices.
       The conferees agree to authorize $55.2 million, which 
     reflects a $10.0 million transfer to PE 23735A to develop an 
     under-armor APU system and a increase of $15.0 million to 
     procure external APU and PJAS systems. The conferees 
     encourage the Army to ensure future year funding is provided 
     to complete the modification required for the Abrams fleet.
     Armored combat earthmover (ACE)
       The budget request included no funding for the ACE.
       The House bill would authorize an increase of $50.7 million 
     to procure 54 vehicles.
       The Senate amendment contained no additional funding.
       The Senate recedes.
       The conferees agree to authorize $50.7 million to procure 
     54 vehicles.
     Small arms programs
       The budget request included: $5.6 million for the M4 
     carbine; 5.6 million for the M16 rifle; $11.1 million for the 
     M249 squad automatic weapon; $5.2 million for the MK19 
     automatic grenade launcher; and no funds for procurement of 
     M240 medium machine guns.
       The conferees are concerned about the production capability 
     of the small arms industrial base and agree to authorize an 
     increase of $51.0 million to the budget request as indicated 
     below:

------------------------------------------------------------------------
                                                             Dollars (M)
                                                Dollars (M)     (Total  
                                                 (Increase)     auth)   
------------------------------------------------------------------------
M240 Machine gun..............................         20.0         20.0
M4 Carbine....................................          1.0          6.6
M16 Rifle.....................................          1.0          6.6
M249 Squad automatic weapon...................          1.0         12.1
MK19 Automatic grenade launcher...............         28.0         33.2
------------------------------------------------------------------------

     Overview
       The budget request for fiscal year 1997 contained an 
     authorization of $853.4 million for Ammunition Procurement, 
     Army in the Department of Defense. The House bill would 
     authorize $1,160.7 million. The conferees recommended an 
     authorization of $1,003.0 million. The Senate amendment would 
     authorize $1,156.7 million. Unless noted explicitly in the 
     statement of managers, all changes are made without 
     prejudice.

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     Overview
       The budget request for fiscal year 1997 contained an 
     authorization of $2,627.4 million for Other Procurement, Army 
     in the Department of Defense. The House bill would authorize 
     $2,802.2 million. The Senate amendment would authorize 
     $3.298.9 million. The conferees recommended an authorization 
     of $2,990.2 million. Unless noted explicitly in the statement 
     of managers, all changes are made without prejudice.

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     High Mobility Multipurpose Wheeled Vehicle (HMMWV)
       The budget request included $96.8 million to procure 1,126 
     HMMWVs.
       The House bill would support the budget request.
       The Senate amendment would authorize an increase of $41.0 
     million to support the production base, for a total of 2,350 
     vehicles, and an additional $25.0 million to procure an 
     additional 233 up-armored HMMWVs (UAHMMWVs), for a total 
     procurement of 360 in fiscal year 1997.
       The House recedes.
       The number of vehicles supported in the budget request 
     reflects a significant reduction from previous years, despite 
     the fact that there remains a valid requirement for these 
     vehicles. The conferees understand that the minimum 
     sustaining rate to maintain a viable supply of required 
     vehicles is not achieved by the current budget request.
       Additionally, the conferees are concerned about the number 
     of UAHMMWVs being produced. In light of lessons learned in 
     Bosnia and recognizing the importance of force protection, 
     the conferees agree that more UAHMMWVs should be procured in 
     order to meet the needs of the military services and maintain 
     industrial production capacity at a minimum level.
       The conferees agree to authorize $162.8 million for HMMWV 
     vehicles.
     Family of Heavy Tactical Vehicles (FHTV)
       The budget request included $163.3 million to procure 
     vehicles necessary to support modern and highly mobile combat 
     units.
       The House bill would authorize an increase of $33.0 million 
     for the FHTV program.
       The Senate amendment would authorize an increase of $123.0 
     million for the FHTV program.
       The conferees agree to authorize an increase of $83.0 
     million to the budget request to procure the heavy tactical 
     vehicles, as indicated below:

------------------------------------------------------------------------
                                                Dollars (M)  Dollars (M)
                                                  Increase    Authorized
------------------------------------------------------------------------
Heavy Expanded Mobility Tactical Transporter                            
 (HEMTT)......................................         33.0         33.0
Palletized Loading System (PLS)...............         50.0        127.4
------------------------------------------------------------------------

     Enhanced Position Location Reporting System (EPLRS)
       The budget request included $48.0 million to procure this 
     critical battlefield system. The EPLRS provides real-time 
     data distribution and serves to enhance situational 
     awareness.
       The House bill would authorize $25.0 million to procure 
     additional EPLRS units with installation kits.
       The Senate amendment would authorize $20.0 million to 
     procure 485 additional EPLRS units with installation kits.
       The conferees agree to authorize $68.0 million for a total 
     procurement in fiscal year 1997 of 1285 systems.
     SINCGARS family
       The budget request included $297.5 million to procure 
     25,616 ground radios, 593 airborne radios, and 13,405 data 
     transfer devices.
       The House bill would support the budget request.
       The Senate amendment would authorize an increase of $43.3 
     million for SINCGARS radios and installation kits.
       The conferees understand that some prior year funding has 
     been withdrawn by the Department of Defense due to internal 
     budget decisions. These reductions have had an adverse impact 
     on the fielding schedule. The conferees believe the original 
     schedule should be maintained and are encouraged to note that 
     an investment of an additional $30.0 million would procure 
     approximately 4,500 radios and save $10.0 million.
       The conferees agree to a total of $327.5 million for 
     SINCGARS in fiscal year 1997.
     Army communications
       The budget request included $4.1 million to support echelon 
     above corps (EAC) communications activities.
       The House bill would support the budget request.
       The Senate amendment would authorize an increase of $40.0 
     million.
       The House recedes.
       The Army continues to modernize the Area Common User System 
     and to transition to the Warfighter Information Network to 
     capitalize on advances made in information technology. The 
     conferees understand that a shortfall exists to continue this 
     work in fiscal year 1997 and therefore agree to authorize 
     $44.1 million for this purpose.
     Forward Area Air Defense (FAAD) Ground-Based Sensor
       The budget request included $51.2 million to procure 16 key 
     radar-based sensors for forward deployed Army units.
       The House bill would authorize an increase of $17.6 million 
     for FAAD Ground-Based Sensors.
       The Senate amendment would authorize an increase of $29.2 
     million.
       The Senate recedes.
       The FAAD sensor serves to acquire targets and alert forces 
     of the proximity of fixed wing aircraft, rotary wing 
     aircraft, unmanned aerial vehicles and cruise missiles. The 
     conferees are aware that the current production rate is 
     uneconomical and prevents this key force protection device 
     from reaching the field as soon as required.
       The conference agree to authorize $68.8 million for FAAD 
     sensors.
     Night vision devices
       The budget request included $111.9 million to continue 
     fielding critical night vision devices that will allow the 
     Army to ``own the night.''
       The House bill would support the budget request.
       The Senate amendment would authorize an increase of $134.1 
     million for night vision devices.
       The conferees agree to authorize the following increases: 
     $24.5 million to fill the requirement for approximately 1,000 
     thermal weapon sights (TWS) for Special Operations Forces 
     (SOF); $24.5 million to procure approximately 7,500 night 
     vision goggles (NVG) for critical combat units in the SOF and 
     other light units; $9.1 million for aiming lights, including 
     $4.1 million to procure 19,260 AN/PAQ-4B&4C aiming lights to 
     fill the modified infantry basis of issue plan and upgrade 
     existing lights and $5.0 million to procure 5,100 AN/PEQ-2 
     illuminator/aiming lights for the Army and 2,500 devices for 
     the Marine Corps; and $8.9 million for initial spares and 
     facilitization of total package fielding for these devices.
       The conferees agree to authorize $178.9 million for the 
     procurement of night vision equipment.
     Standardized Integrated Command Post System (SICPS)
       The budget request included $26.3 million to procure tents, 
     shelters and kits for SICPS.
       The House bill would support the budget request.
       The Senate amendment would authorize an increase of $12.7 
     million for the SICPS.
       The conferees agree to authorize an increase of $10.3 
     million to buy the shelters required through fiscal year 1997 
     and to ensure that this fielding occurs on schedule.
       The conferees agree to authorize $36.6 million for new 
     shelters.
     Total Distribution System (TDS)
       The budget request included $4.4 million for Army logistics 
     requirements to distribute, track, and account for supplies 
     and equipment in peacetime and in war.
       The House bill would support the budget request.
       The Senate amendment would authorize an increase of $6.0 
     million.
       The conferees agree to authorize an increase of $3.0 
     million.
       The conferees support the timely fielding of logistics 
     support equipment and note the corresponding increase in 
     efficiency and cost savings in managing inventory. The TDS 
     will enhance logistics operations and should be fielded 
     throughout the Army as soon as practicable.
       The conferees agree to authorize 47.4 million to support 
     logistical enhancements.
     STAMIS Tactical Computers (STACOMP)
       The budget request included $27.2 million for computer 
     equipment.
       The House bill would authorize an increase of $42.0 
     million.
       The Senate amendment would authorize an increase of $30.5 
     million.
       The conferees agree to authorize an increase of $25.0 
     million for computer hardware and software enhancements 
     necessary to meet Army efforts to keep pace with rapidly 
     changing technology.
     Force Provider
       The budget request included $11.7 million for the Force 
     Provider program.
       The House bill would authorize an increase of $12.8 million 
     for the program.
       The Senate amendment would support the budget request.
       The conferees agree to authorize $18.1 million for Force 
     Provider.
     Generators and associated equipment
       The budget request included $13.2 million for generators 
     and associated equipment.
       The House bill would authorize an increase of $58.0 million 
     to procure generators.
       The Senate amendment would support the budget request.
       The House recedes.
     Tranining devices, non-system
       The budget request included $82.7 million for training 
     devices.
       the House bill would authorize an increase of $1.5 million 
     to procure electronically scored targeting systems for the 
     U.S. Army marksmanship training unit.
       The Senate amendment would support the budget request.
       The Senate recedes.
       The conferees agree to authorize $84.2 million for training 
     devices.
     overview
       The budget request for fiscal year 1997 contained an 
     authorization of $5,882.0 million for Aircraft Procurement, 
     Navy in the Department of Defense. The House bill would 
     authorize $6,669.0 million. The Senate amendment would 
     authorize $6,911.4 million. The conferees recommended an 
     authorization of $7,034.9 million. Unless noted explicitly in 
     the statement of mangers, all changes are made without 
     prejudice.

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     AV-8B remanufacture
       The budget request included $282.0 million to procure 10 
     remanufactured AV-8B aircraft and $22.9 million for advance 
     procurement of 12 aircraft in fiscal year 1998. The planned 
     procurement of 12 remanufactured Harrier aircraft in fiscal 
     year 1997, which was reflected in last year's budget request, 
     was reduced to 10 because of resource constraints. The 
     Harrier II Plus configuration provides day/night/adverse 
     weather improvements to the AV-8B aircraft.
       The House bill would authorize an additional $112.0 million 
     to procure four more AV-8B remanufactured aircraft in order 
     to accelerate the fielding of this much-needed and safety-
     related improvement.
       The Senate amendment would authorize an increase of $68.0 
     million to procure an additional two aircraft and the 
     necessary integrated logistics support for the AV-8B program 
     that the future years defense program currently would defer 
     until fiscal years 1999 and 2000.
       The House recedes.
     Flight simulators
       The budget request included no funding for flight 
     simulators for various Marine Corps aircraft.
       The Senate amendment would support the use of flight 
     simulators for Marine Corps training by authorizing an 
     increase of $60.0 million to procure or upgrade simulators 
     for the V-22, AV-8B, and CH-53D.
       The House bill would authorize the requested amount.
       The Senate recedes.
     F-14 aircraft modifications
       The budget request included $232.0 million for F-14 
     modifications, of which $13.9 million was for continued 
     operation and maintenance of the F-14 tactical air 
     reconnaissance pod system (TARPS).
       The House bill would authorize an increase of $2.6 million 
     to fund continued TARPS reliability/supportability upgrades.
       The Senate amendment would authorize the request.
       The Senate recedes.
       The conferees are aware of the continued reliance on TARPS 
     by the Navy and accordingly agree to authorize the addition 
     of $2.6 million for TARPS upgrades.
     E-2C airborne early warning aircraft
       The budget request included $169.2 million for procurement 
     of two E-2C early warning aircraft.
       The House bill would increase the requested amount by $74.0 
     million to purchase one additional aircraft.
       The Senate amendment would increase the requested amount by 
     $139.0 million for two additional aircraft.
       The Navy resumed production in fiscal year 1995 of the E-
     2C, with the intent of purchasing four aircraft per year for 
     a total of 36 aircraft. That planned acquisition rate has 
     been reduced from four aircraft to two in the budget request 
     for fiscal year 1997. The conferees understand that procuring 
     two more E-2C aircraft would lead to a savings of $13.2 
     million per aircraft. Accordingly, the conferees recommend an 
     increase of $139.0 million to acquire a total of four E-2C 
     aircraft in fiscal year 1997.
     Helicopter crash attenuating seats
       The budget request included no funding for the procurement 
     of crash attenuating seats for the H-53 helicopter.
       Section 136 of the National Defense Authorization Act for 
     Fiscal Year 1996 directed the initiation of a program to 
     provide crash attenuating troop seats for H-53 helicopters, 
     using commercially developed, energy absorbing seats. As a 
     result of this provision, the Department of Defense initiated 
     efforts to define the requirements for a competition for 
     procuring such seats as non-developmental items (NDI). The 
     necessary program definition has been completed and the 
     program is nearing release of the standards needed to begin a 
     full and open competition to procure such seats.
       The House bill would authorize an increase of $10.0 million 
     for the competitive procurement of NDI crash attenuating 
     seats for the H-53 helicopter.
       The Senate amendment would authorize an increase of $14.0 
     million for the competitive procurement of NDI crash 
     attenuating seats for the H-53 helicopter.
       The House recedes.
     EP-3 modifications
       The budget request included $35.4 million for EP-3 
     modifications.
       The House bill would authorize an increase of $10.0 million 
     to reinstate a level-of-effort upgrade program for those 
     aspects of overall system capabilities not uniquely addressed 
     by centrally-directed, joint development programs. The House 
     bill would also include a new procurement funding line for 
     procurement of the lightweight environmentally sealed 
     parachute assembly (LESPA) and authorize an increase of $3.8 
     million for LESPA. A portion of this increase would be for 
     support of the EP-3 aircraft.
       The Senate amendment would authorize the requested amount.
       The conferees agree to an increase of $1.0 million for 
     procurement of LESPA.
     P-3 intelligence support
       The budget request included $17.6 million within the P-3 
     aircraft modifications line to procure non-developmental, 
     commercial off-the-shelf (COTS), roll-on/roll-off signals 
     intelligence (SIGINT) sensors for use aboard P-3C aircraft.
       The House bill and Senate amendment would not authorize the 
     $17.6 million included in the budget request for the 
     procurement of COTS SIGINT sensors in fiscal year 1997.
       The conferees are concerned that the Navy has not developed 
     a sound operational concept for employing the SIGINT 
     capability that it proposes to add to the P-3C aircraft. Nor 
     is it clear that the Navy's proposal relates well to the 
     capability already provided by its existing fleet of EP-3 
     aircraft. Important questions that should be answered to 
     address the conferees' concerns include:
       (1) To what degree would P-3C aircraft equipped with such a 
     COTS SIGINT package be interoperable with other SIGINT 
     platforms? and
       (2) Are sufficient specially trained personnel available to 
     support both existing SIGINT systems and this one as well?
     P-3C modifications
       The budget request included $34.7 million for the P-3C 
     anti-surface warfare improvement program (AIP). This amount 
     would procure one P-3C AIP kit and additional training 
     equipment, support equipment, and logistics support for the 
     P-3C AIP program.
       The Senate amendment would authorize an increase of $87.0 
     million for the procurement of 11 additional P-3C AIP kits 
     and associated equipment and support in order to maintain the 
     acquisition schedule requested by the operational commanders 
     in chief (CINCs) and to procure the kits at a more cost 
     effective rate.
       The House bill would authorize the requested amount for P-3 
     modifications but would include a new procurement funding 
     line for procurement of the lightweight environmentally 
     sealed parachute assembly (LESPA) and authorize an increase 
     of $3.8 million for LESPA. A portion of this increase would 
     be for support of the P-3C aircraft.
       The conferees agree to authorize an increase of $61.0 
     million for the procurement of seven additional P-3C AIP kits 
     and associated equipment and support. Reporting requirements 
     for the P-3C AIP program associated with submission of the 
     fiscal year 1998 budget request are contained in the Senate 
     report (S. Rept. 104-267). The conferees also agree to 
     authorize an increase of $2.8 million for LESPA procurement.
     Lightweight environmentally sealed parachute assembly
       The budget request included no funding for procurement of 
     (LESPA) units.
       The House bill would establish a new funding line for LESPA 
     and authorize an increase of $3.8 million for procurement of 
     LESPA units.
       The Senate amendment would authorize the requested amount.
       The conferees agree to authorize an increase of $3.8 
     million for LESPA but distribute this increase to existing 
     programs as discussed elsewhere in this statement of 
     managers.
     Airborne self protection jammer (ASPJ)
       The Budget request did not include funds for acquisition of 
     the ASPJ.
       The House bill would add $50.0 million to Aircraft 
     Procurement Navy (APN) line 45, electronics counter-measures 
     (ECM) equipment.
       The Senate amendment would add $50 million for 36 sets of 
     ASPJ to APN 5 line 24, F-18 series modifications.
       The conferees agree to provide an additional 36 sets of 
     ASPJ as a one-time acquisition for contingency deployments, 
     realizing that the ASPJ system is available now and that the 
     integrated defensive electronic countermeasures (IDECM) 
     system is under development and will not be available until 
     fiscal year 2002. The conferees recommend an increase of 
     $47.9 million in line 45 to buy 36 ASPJ systems, including 
     aircraft interface units (racks), spares and additional 
     integrated logistic support for three deployed F/A-18C/D 
     squadrons.
       The conferees recognize that the Navy is developing IDECM 
     to serve as the long-term ECM system for the F/A-18E/F, and 
     expect the navy to upgrade the 36 sets into an IDECM 
     configuration as soon as technically feasible. The conferees 
     encourage the Navy to explore long-term solutions for the F/
     A-18C/D.
       The conferees continue to support the IDECM program. The 
     procurement of 36 ASPJ systems is intended to provide a 
     contingency response capability, and does not reflect the 
     conferees commitment to additional procurement of ASPJ 
     systems or to restarting series production for U.S. 
     government customers at this time.
     Overview
       The budget request for fiscal year 1997 contained an 
     authorization of $1,400.4 million for Weapons Procurement, 
     Navy in the Department of Defense. The House bill would 
     authorize $1,305.2 million. The Senate amendment would 
     authorize $1,513.3 million. The conferees recommended an 
     authorization of $1,345.4 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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     Tomahawk land attack missile
       The budget request included $88.5 million for the 
     procurement of 120 Tomahawk missiles and no funding for the 
     remanufacture of Block IIC Tomahawk missiles to the Block 
     IIIC configuration. The budget request also contained $15.8 
     million for recertification of the Tomahawk Block IIC 
     missiles with maintenance due dates in fiscal years 1996 and 
     1997.
       The Senate report (S. Rept. 104-267) noted that tactical 
     use of the Tomahawk missile has increased at a time when 
     budget reductions have reduced procurement below previously 
     planned levels and resulted in inadequate funding for a 
     required five-year recertification of existing Block IIC 
     missiles. As a consequence, the Navy has been forced to rely 
     on the practice of transferring missiles from redeploying 
     ships to those that are preparing to deploy. Funding at the 
     budget request level would be inadequate to permit the Navy 
     to satisfy its deployment loadout requirements after fiscal 
     year 1996. The Senate report also noted that funding for 
     development of the Tomahawk Block IV missile has been reduced 
     substantially from the planned level reported in the fiscal 
     year 1996 budget request, thereby delaying this important 
     program.
       The Senate amendment would authorize an increase of $32.0 
     million above the budget request for the procurement of new 
     Block IIIC missiles, $14.4 million for remanufacture of Block 
     IIC missiles to the Block IIIC configuration, $40.6 million 
     for the recertification of existing Block IIC missiles, and 
     $29.0 million in PE 24229N for continued development of the 
     Tomahawk Block IV missile.
       The House bill would authorize the requested amount.
       The conferees agree to authorize an increase of $14.4 
     million for remanufacture of Block IIC missiles to the Block 
     IIIC configuration and $40.6 million for the recertification 
     of existing Block IIC missiles.
     Standard missile procurement
       The budget request included $197.5 million for the 
     procurement of Standard missiles for the Navy.
       The Senate amendment would authorize an increase of $40.0 
     million above the budget request for the procurement of 
     additional SM2 Block IV missiles to help stabilize the 
     production base for the Block IV variant and to support 
     ballistic missile defense development options.
       The House bill would authorize the requested amount.
       The House recedes.
     Overview
       The budget request for fiscal year 1997 contained an 
     authorization of $4,911.9 million for Shipbuilding and 
     Conversion Procurement, Navy in the Department of Defense. 
     The House bill would authorize $5,479.9 million. The Senate 
     amendment would authorize $6,567.3 million. The conferees 
     recommended an authorizaiton of $6,193.3 million. Unless 
     noted explicitly in the statement of managers, all changes 
     are made without prejudice.

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     Oceanographic survey ship
       The National Defense Authorization Act for Fiscal Year 1996 
     authorized $15.6 million of advance procurement for an 
     oceanographic survey ship, TAGS-64. The budget request did 
     not contain the additional increment needed to fully fund 
     this ship. The future years defense program would not procure 
     this ship until fiscal year 1999. Procurement of this ship 
     through an existing contract option, to satisfy a well 
     documented requirement, would result in substantial cost 
     savings.
       The House bill would authorize an increase of $54.0 million 
     to the budget request to complete procurement of TAGS-64.
       The Senate amendment would authorize an increase of $54.4 
     million to the budget request to complete procurement of 
     TAGS-64.
       The House recedes.
     SWATH oceanographic research ship
       The budget request included no funding for the procurement 
     of oceanographic research ships.
       The Senate amendment would authorize an increase to the 
     budget request of $45.0 million to provide the additional 
     funding needed to build a small water plane area, twin-hulled 
     (SWATH) oceanographic research vessel based on the TAGOS-23 
     class of surveillance ships. In order to resolve a documented 
     backlog of additional oceanographic survey work the Senate 
     report (S. Rept. 104-267) would direct the Navy to negotiate 
     a time sharing agreement with the university or institute 
     that will operate the new SWATH oceanographic vessel, whereby 
     a certain portion of the ship's annual operating time would 
     be dedicated to meeting the Navy's oceanographic survey 
     needs.
       The House bill would authorize the requested amount.
       The House recedes.
     Fast patrol craft
       The budget request included no funds for a fast patrol 
     craft.
       The House bill would authorize an increase of $20.0 million 
     to acquire an advanced fast patrol craft for operations in 
     littoral waters. The report accompanying the House bill (H. 
     Rept. 104-563) noted the need for such craft to avoid the 
     current Navy practice of placing cruisers and destroyers in 
     areas where they are vulnerable to shore-based cruise 
     missiles, mines, and quiet diesel submarines. Such a fast 
     patrol craft could provide a highly capable, multi-mission 
     adjunct to the Navy's current fleet.
       The Senate amendment would authorize the requested amount.
       The House recedes.
     Outfitting
       The budget request included $92.0 million for outfitting of 
     new construction Navy ships and conversions.
       The House bill and Senate amendment would authorize the 
     requested amount.
       The conferees agree to a decrease of $44.0 million from the 
     budget request for outfitting of new construction Navy ships 
     and conversions.
     Post delivery
       The budget request included $141.9 million for post 
     delivery of new construction ships and conversions.
       The House bill would reduce the budget request amount by 
     $10.0 million.
       The Senate amendment would authorize the requested amount.
       The House recedes.
     Overview
       The budget request for fiscal year 1997 contained an 
     authorization of $0 million for Ammunition Procurement, Navy 
     and Marine Corps in the Department of Defense. The House bill 
     would authorize $599.2 million. The Senate amendment would 
     authorize $0 million. The conferees recommended an 
     authorization of $293.2 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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     Overview
       The budget request for fiscal year 1997 contained an 
     authorization of $2,714.2 million for Other Procurement, Navy 
     in the Department of Defense. The House bill would authorize 
     $2,,871.5 million. The Senate amendment would authorize 
     $3,005.0 million. The conferees recommended an authorization 
     of $2,893.8 million. Unless noted explicitly in the statement 
     of managers, all changes are made without prejudice.

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     Reactor power units
       The budget request included $223.4 million for the 
     procurement of reactors and associated equipment for nuclear 
     powered Navy ships.
       The House bill would reduce the budget request amount by 
     $10.0 million.
       The Senate amendment would authorize the requested amount.
       The conferees agree to reduce the budget request amount by 
     $30.0 million. Additional funds authorized for advance 
     procurement of components for nuclear powered submarines will 
     compensate for this reduction.
     Reactor components
       The budget request included $185.6 million for reactor 
     components.
       The House bill would reduce the budget request by $2.5 
     million.
       The Senate amendment would authorize the requested amount.
       The Senate recedes.
     AN/BPS-16 submarine navigation radar
       The budget request included no funding for the procurement 
     of AN/BPS-16 submarine radar navigation sets or mast 
     assemblies.
       The Navy has been procuring a commercial off-the-shelf 
     (COTS) variant of the AN/BPS-16 radar navigation set and its 
     associated mast assembly for installation on new construction 
     submarines and for backfit on SSN-688 class submarines that 
     will remain in service in the fleet. Procurement of the COTS 
     variant has resulted in a 40 percent savings over a 
     comparable system built to military specifications. For SSN-
     688 class submarines, the AN/BPS-16 replaces an existing 
     radar system that has proven unreliable in service and is 
     labor intensive to maintain. Installation of the AN/BPS-16 
     will improve the operational safety of the SSN-688 fleet by 
     providing a state-of-the-art, all-weather radar for 
     navigating into and out of ports and for performing tactical 
     operations at sea in adverse weather conditions. Procurement 
     of additional AN/BPS-16 radar sets in fiscal year 1997 will 
     also avoid a production break and associated start-up costs 
     for the procurement of additional radar sets currently 
     included in the future years defense program.
       The House bill would authorize an increase of $16.0 million 
     for the procurement of additional AN/BPS-16 radar sets to 
     complete the backfit of the AN/BPS-16 commercial off-the-
     shelf radar into the SSN-688 class submarine fleet.
       The Senate amendment would authorize an increase of $16.9 
     million for the procurement of additional AN/BPS-16 radar 
     sets to complete the backfit of the AN/BPS-16 commercial off-
     the-shelf radar into the SSN-688 class submarine fleet.
       The House recedes.
     Mine warfare
       The budget request included $22.9 million for the 
     minesweeping replacement program.
       The Senate amendment would authorize an increase of $64.0 
     million to accelerate several of the Navy's highest priority 
     mine countermeasures (MCM) programs and sustain the 
     improvements that have occurred since Desert Storm. A 
     discussion of the rationale for this increase is contained in 
     the Senate report (S. Rept. 104-267).
       The House bill would authorize the requested amount.
       The conferees agree to authorize an increase of $25.8 
     million to accelerate the following MCM programs:
Item:                                              Funding ($ millions)
    SQQ-32/SLQ-48/SSQ-94/SYQ-13 Spares..............................6.3
    Integrated Combat Weapons System (ICWS)........................17.8
    MCM Battle Space Profiler (BSP).................................1.7

     Inertial navigation, information, and ship control system
       The House bill would authorize an increase of $32.0 million 
     for procurement and installation of four identical integrated 
     navigation, information, and ship control systems on CG-47 
     class cruisers.
       The Senate amendment would authorize the requested amount.
       The conferees agree to an increase of $32.0 million for 
     procurement and installation of integrated navigation, 
     condition assessment, and damage control systems on CG-47 
     class cruisers. Procurement of standard monitoring and 
     control systems is also authorized, subject to a successful 
     operational evaluation as part of the Navy's Smart Ship 
     initiative, which is discussed elsewhere in this statement of 
     managers.
       The conferees are aware that the Navy has an urgent 
     requirement to modernize, automate, and fully integrate 
     bridge and machinery monitoring and control systems on its 
     cruisers and other surface ships, employing commercial off-
     the-shelf, military qualified systems. Procurement and 
     installation of systems such as an integrated bridge system, 
     an integrated condition assessment system, and a damage 
     control system for surface ships could provide major 
     improvements in performance, lead to reductions in crew size, 
     and reduce the cost of operations. Additional crew reduction 
     may also be achieved through the acquisition of an improved 
     machinery monitoring and control system.
     Joint tactical terminal
       The budget request included $2.4 million for procurement of 
     the joint tactical terminal (JTT).
       The House bill would authorize an additional $11.0 million 
     for the immediate procurement of JTT terminals for AEGIS, 
     amphibious, and flagship surface vessels. The report to 
     accompany the House bill to authorize intelligence programs 
     for fiscal year 1977 (H. Rept. 104-578, Part 1) expressed the 
     view that there is an urgent need to expeditiously procure 
     the functional intelligence support capability provided by 
     the JTT for these ships as soon as possible in order to 
     ensure interoperability between various intelligence 
     producers and users.
       The Senate amendment would authorize the requested amount.
       The Senate recedes.
     Shipboard integrated communications system
       The budget request included no funding for procurement of 
     an integrated communications system for installation aboard 
     aircraft carriers.
       The Senate amendment would authorize an increase of $4.5 
     million above the budget request specifically for the 
     competitive procurement of an existing integrated 
     communications system that can be installed aboard aircraft 
     carriers and other fleet units without delay.
       The Senate report (S. Rept. 104-267) expressed concern at 
     the Navy's lack of progress, despite congressional prodding 
     for over two years, on procurement of a commercial off-the-
     shelf non-developmental integrated communications system to 
     replace obsolete systems now installed on Navy ships. While 
     the Navy has made great strides in increasing the capability 
     and flexibility of communications systems that deliver 
     information to fleet units, a similar emphasis on the 
     internal management of that information aboard ship has been 
     lacking. In a report submitted to Congress on February 12, 
     1996, the Navy acknowledged that, while current aircraft 
     carrier interior integrated communications systems are 
     outdated and there is little integration communications 
     systems are outdated and there is little integration between 
     systems within the ship, the Navy is still in the process of 
     defining a baseline system architecture that can meet current 
     demands.
       The House bill would authorize the requested amount.
       The House recedes.
     Challenge Athena
       The budget request included no funding for the Chief of 
     Naval Operation's special project Challenge Athena. This 
     budget decision was made despite a series of favorable 
     reports by the Navy's operational commanders on the 
     significant contributions that Challenge Athena has made to 
     the success of their operational deployments.
       The Senate amendment would authorize an increase of $41.7 
     million above the budget request for Challenge Athena, $14.7 
     million for procurement and $27.0 million for operation of 
     the system.
       The House bill would authorize the requested amount.
       The conferees agree to authorize a total increase of $28.7 
     million above the budget request for Challenge Athens, $14.7 
     million for procurement of Challenge Athena equipment, and 
     $14.0 million for system operation.
     Global broadcast service
       The budget request included $113.2 million for launch 
     services for UHF follow-on (UFO) satellites 8, 9, and 10. 
     These satellites will support UHF, EHF, and global broadcast 
     service (GBS) communications. However, the budget request did 
     not contain funding for the ground and see-based equipment 
     needed to implement the GBS capability.
       To ensure that the diverse requirements of the Navy's GBS 
     are met in a complementary manner, the Senate amendment would 
     authorize an increase of $50.0 million above the budget 
     request as follows:
         (1) $39.0 million for the procurement and installation of 
     shipboard GBS satellite terminals;
       (2) $7.0 million for the procurement and installation of 
     shore GBS satellite terminals; and
       (3) $4.5 million to provide for launch services for UFO 
     satellites 8, 9, and 10.
       The House bill would authorize the requests amount.
       The conferees agree to authorize an increase of $10.3 
     million for the procurement and installation of shipboard GBS 
     satellite terminals.
     Sonobuoys
       The budget request included $22.7 million for the 
     procurement of AN/SSQ-62 sonobuoys and no funding for the 
     procurement of AN/SSQ-53E sonobuoys. It also contained $5.2 
     million in PE 63254N for development and demonstration of 
     advanced anti-submarine warfare sensors and processors, 
     including $2.5 million for the advanced deployable low 
     frequency projector (ADLFP). The ADLFP is a candidate for the 
     active project source of the advanced explosive echo ranging 
     sonobuoy.
       The House bill would authorize an increase of $17.0 million 
     for the procurement of additional AN/SSQ-62 sonobuoys. It 
     would also authorize an increase of $2.5 million in PE 63254N 
     for the development and demonstration of risk reduction 
     technologies for the ADLFP to insure that shallow water 
     performance requirements are met and system cost is 
     minimized.
       The Senate amendment would authorize an increase of $12.2 
     million for the procurement of additional AN/SSQ-62 sonobuoys 
     and $31.8 million for the procurement of AN/SSQ-53E 
     sonobuyos. It would also authorize $2.5 million in PE 63254N 
     and $2.5 million in PE

[[Page H9170]]

     64261N for development of the ADLFP and advanced multi-static 
     processing (AMSP).
       The conferees agree to authorize an increase of $12.2 
     million for procurement of AN/SSQ-62 sonobuoys, $18.0 million 
     for procurement of AN/SSQ-53E sonobuoys, and $2.5 million in 
     PE 63254N for development of the ADLFP.
     Airborne laser mine detection systems
       The budget request included no funding for the procurement 
     of airborne laser mine detection systems.
       The House bill would authorize an increase of $25.0 million 
     for the procurement of three Magic Lantern systems and 
     associated spares.
       The Senate amendment would authorize an increase of $25.0 
     million for the procurement of the winner of a competition 
     between two airborne laser mine detection systems, ATD-111 
     and Magic Lantern.
       The conferees agree to authorize the requested amount.
     Rolling air frame missile launcher for LSF-52
       In fiscal year 1996, Congress authorized and appropriated 
     $20.0 million to install the ship self-defense system (SSDS) 
     MK 1 and the rolling airframe missile (RAM) system in LSD-52, 
     an amphibious ship that is now under construction. This 
     amount was insufficient to fully cover both the hardware 
     procurement and ship installation costs. Consequently, the 
     Navy was unable to purchase one of the two RAM launchers 
     needed for a complete equipment suite. The budget request did 
     not contain funding for this launcher.
       The Senate amendment would authorize an increase of $5.0 
     million above the budget request for the procurement of one 
     RAM launcher for LSD-52.
       The House bill would authorize the requested amount.
       The Senate recedes.
     AEGIS support equipment
       The budget request included $30.4 million for AEGIS support 
     equipment.
       The House bill would authorize an additional $3.0 million 
     to procure flexible wearable computers for deployment on 
     AEGIS ships as well as other ships that have interactive 
     electronic technical manuals (IETM) available.
       The report to accompany the House bill (H. Rept. 104-563) 
     noted that the Committee on National Security of the House of 
     Representatives is aware that the Navy is investigating the 
     possibility of hosting the IETMs on flexible wearable 
     computers. Such a system would allow repair technicians to 
     perform their tasks with hands-free access to the IETM 
     maintenance information, while affording them maximum 
     mobility to operate in confined spaces. The additional funds 
     proposed by the House would permit the Navy to gain at-sea 
     experience with the combined IETM/flexible wearable computer 
     system.
       The Senate amendment would authorize the requested amount.
       The Senate recedes.
     Afloat planning system
       The budget request included $1.1 million for the Tomahawk 
     afloat planning system (APS). This amount would be for the 
     installation of systems purchased in prior years.
       The APS successfully underwent extensive operational test 
     and evaluation in 1994, and production system installations 
     have been completed on the USS Carl Vinson (CVN-70) and the 
     USS George Washington (CVN-73). The system is being procured 
     for installation in the Navy's aircraft carriers and for 
     rapid deployment, when required, to meet the strike planning 
     needs of a joint task force commander. It compliments the 
     planning of Tomahawk land attack missile (TLAM) missions by 
     shore-based cruise missile support activities by giving an 
     afloat or deployed commander the ability to modify existing, 
     pre-planned missions or plan new ones. It also provides the 
     centerpiece of the joint service imagery processing system-
     Navy (JSIPS-N), a system that provides deployed planners 
     real-time capability to receive, process, analyze and exploit 
     tactical sensor imagery. A diversion of funds from this 
     program in fiscal year 1996 and limiting funding in fiscal 
     year 1997 threaten to severely disrupt the production line, 
     thereby increasing unit costs dramatically and delaying the 
     introduction of a capability that the Navy states will 
     significantly improve its warfighting capability.
       Noting that the APS program's development and production 
     efforts have remained on schedule and within cost, and have 
     met or exceeded all specifications, the House bill would 
     authorize an additional $10.0 million to support continued 
     fielding of the APS.
       The Senate amendment would authorize an increase of $23.0 
     million above the budget request for the procurement and 
     installation of additional APS suites in order that the Navy 
     could satisfy its full requirement for them in a cost 
     effective manner.
       The Senate recedes.
     NULKA decoy development
       The budget request included $4.4 million for continued 
     development of the NULKA active countermeasures decoy. It 
     also contained $12.0 million to procure NULKA decoys, launch 
     subsystems, and training systems.
       The Senate amendment would authorize an increase of $9.0 
     million for procurement of additional NULKA rounds and launch 
     subsystems and for production improvements. The Senate 
     amendment would also authorize an increase of $4.0 million in 
     PE 64755N to improve the performance of the NULKA decoy in 
     the presence of friendly emitters and to counter modern 
     threat missiles.
       The House bill would authorize the requested amount.
       The House recedes.
     Elevated causeway (modular)
       The budget request included no funding for expanding an 
     existing elevated causeway (modular) (ELCAS(M)) prototype 
     from a length of 2,000 feet to the 3,000 feet needed to 
     satisfy logistics-over-the-shore (LOTS) operational 
     requirements.
       Expeditionary logistics support of the Marine Corps or of a 
     joint force could require assault follow-on echelon or other 
     LOTS off-load in a variety of unimproved, adverse beach 
     environments or degraded ports. The ELCAS(M), which the Navy 
     could rapidly install, provides an elevated pier that 
     overcomes high surf conditions, shallow beach gradients, and 
     other hydrographic conditions that inhibit direct shoreside 
     cargo discharge. The Navy has included funding for completion 
     of two ELCAS(M) systems in the future years defense program. 
     However, the Navy would not complete the current ELCAS(M) 
     system until fiscal year 1999 because of budget constraints.
       The Senate amendment would authorize an increase of $6.7 
     million above the budget request to expand the existing 
     prototype system to a full 3,000 foot operational length, and 
     also to acquire the ancillary support and installation 
     equipment, such as lighting, piling, and safety lines, 
     necessary to make it fully operational.
       The House bill would authorize the requested amount.
       The House recedes.
       The Navy budget request also included funding for a program 
     to develop and field a system to meet the amphibious cargo 
     beaching lighter requirement. Procurement for the system 
     would not begin until fiscal year 2001. The Navy has an 
     operational requirement for an amphibious cargo beaching 
     lighter (or barge) that can operate in sea state 3 (SS3). To 
     meet this requirement, the Navy must be able to assemble 
     floating pontoons into larger sections in sea states reaching 
     and exceeding SS3. The Navy designed the ELCAS(M) system to 
     be able to operate sections of the system as a lighter in sea 
     states up to SS3. However, the current design for the 
     ELCAS(M) connector system does not allow the Navy to join the 
     sections into larger units in sea states this high.
       The conferees have been informed that the contractor 
     building the ELCAS(M) system has also developed a connector 
     system that could be operated under SS3 conditions. The 
     conferees direct the Navy to prepare a report, and submit it 
     to the congressional defense committees with its fiscal year 
     1998 budget request, that provides the Navy's analysis of the 
     potential of using this new connector system in conjunction 
     with the current ELCAS(M) sections to meet the amphibious 
     cargo beaching lighter requirement.
     Oceanographic equipment
       The budget request included no procurement funding for 
     perishable equipment such as fathometers, global positioning 
     satellite receivers, recording equipment, and side-scan 
     sonars to conduct ocean surveys.
       The House bill would authorize the requested amount.
       The Senate amendment would authorize an increase of $6.0 
     million above the budget request to provide additional 
     funding for procurement of oceanographic survey equipment.
       The Senate recedes.
     Overview
       The budget request for fiscal year 1997 contained an 
     authorization of $555.5 million for Marine Corps Procurement, 
     Navy in the Department of Defense. The House bill would 
     authorize $546.7 million. The Senate amendment would 
     authorize $816.1 million. The conferees recommended an 
     authorization of $560.1 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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     Intelligence upgrades
       The budget request included $26.4 million for procurement 
     of intelligence support equipment for the Marine Corps.
       The House bill would authorize an increase of $5.8 million 
     for the procurement of additional intelligence support 
     equipment.
       The Senate amendment would authorize an increase of $14.6 
     million for the procurement of additional intelligence 
     support equipment.
       The Senate recedes.
     Joint task force deployable communications support
       The budget request included no funding to provide a 
     deployable satellite communications system for use by a 
     deployed Marine Corps joint task force headquarters.
       Senate amendment would authorize an increase of $1.7 
     million to procure such a system for the Marine Corps.
       The House bill would authorize the requested amount.
       The Senate recedes.
     Tactical electronic reconnaissance processing and evaluation 
         system
       The budget request included $1.0 million for procurement of 
     support for the Marine Corps tactical electronic 
     reconnaissance processing and evaluation system (TERPES), a 
     system that is currently supporting joint operations in 
     Bosnia.
       The House bill would authorize an increase of $1.1 million 
     to improve the interoperability of TERPES with the global 
     command and control system (GCCS) and tactical air mission 
     planning system (TAMPS).
       The Senate amendment would authorize the requested amount.
       The Senate recedes.
     Marine Corps combat operations centers
       The budget request did not include funding to upgrade the 
     capability of the Marine Corps' seven deployable combat 
     operations centers (COC) and six fixed command centers (CC) 
     to improve their data capacity and make them fully 
     interoperable with the other services.
       The Senate amendment would authorize an increase of $7.4 
     million above the budget request to upgrade the capability of 
     these Marine Corps' COCs and CCs.
       The House bill would authorize the requested amount.
       The Senate recedes.
     Telecommunications infrastructure
       The budget request included no funding to upgrade the 
     communications network at the Marine Corps base at Camp 
     Pendleton.
       The Marine Corps has been involved in an ongoing effort to 
     upgrade existing telecommunications infrastructure at Marine 
     Corps installations. While the budget request contained 
     funding to support such infrastructure upgrades, it fell 
     short of providing the resources necessary to upgrade Camp 
     Pendleton. Establishing a high speed fiber optic backbone and 
     switching system at Camp Pendleton would meet existing base 
     requirements and facilities future expansion to meet new 
     requirements.
       The House bill and Senate amendment would authorize $18.8 
     million to upgrade the telecommunications infrastructure at 
     Camp Pendleton.
       The conferees agree to authorize an increase of $18.8 
     million to provide a more efficient, state-of-the-art 
     telecommunications infrastructure at Camp Pendleton.
     Marine Corps common end user computer equipment
       The budget request included no funding for Marine Corps 
     common end user computer equipment (CEUCE).
       The Senate amendment would authorize an increase of $9.8 
     million above the budget for the procurement of additional 
     Marine Corps CEUCE.
       The House bill would authorize the requested amount.
       The Senate recedes.
     Marine Corps mobility enhancements
       The budget request included $1.3 million to procure 20 
     M870A2 lowbed trailers and an additional $1.5 million to 
     procure 261 International Standard Organization (ISO) beds 
     for transporting fuel and water for the Marine Corps.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $28.3 
     million for procurement of additional M870A2 lowbed trailers 
     and ISO beds for the Marine Corps.
       The Senate recedes.
     Marine Corps multiple integrated laser engagement system
       The budget request included no funding for procurement of 
     the multiple integrated laser engagement system (MILES) for 
     the Marine Corps.
       The House bill would authorize an increase of $10.6 million 
     to accelerate fielding of the first two battalion sets.
       The Senate amendment would authorize an increase of $49.0 
     million to complete the Marine Corps procurement of MILES.
       The conferees agree to authorize an increase of $24.0 
     million of MILES procurement.
     Combat vehicle appended trainer (CVAT)
       The budget request included no funding for the development 
     of new, state-of-the-art, full crew mission simulators for 
     Marine Corps armored vehicle systems.
       The Senate amendment would authorize an increase of $9.2 
     million to take advantage of the increased utility and 
     reduced training costs offered by such simulators.
       The House bill would authorize the requested amount.
       The Senate recedes.
     Overview
       The budget request for fiscal year 1997 contained an 
     authorization of $5,779.2 million for Aircraft Procurement, 
     Air Force in the Department of Defense. The House bill would 
     authorize $7,271.9 million. The Senate amendment would 
     authorize $7,023.5 million. The conferees recommended an 
     authorization of $6,764.4 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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     C-130J
       The budget request included $62.9 million for one C-130J 
     replacement aircraft for the Air Force.
       The House bill would authorize $429.0 million for eight Air 
     Force C-130Js, an increase of four WC-130Js and three 
     airborne battlefield command and control center aircraft, in 
     addition to the one C-130J requested. Additional recommended 
     increases to the administration request included $209.2 
     million for four KC-130J tanker aircraft for the Marine Corps 
     and $105.0 million for two Air National Guard C-130Js.
       The Senate amendment would authorize a total of $267.4 
     million for four Air Force WC-130Js and $284.4 million for 
     six C-130Js for the Air National Guard.
       The conferees acknowledge the continued need to modernize 
     tactical airlift and express concern over the Department's 
     meager request of only one C-130 replacement aircraft. 
     Consequently, the conferees authorize a total of $660.3 
     million for 13 C-130J aircraft as follows:
       (1) $52.3 million for the one requested Air Force C-130J;
       (2) $209.2 million for four WC-130J's;
       (3) $209.2 for four KC-130J's for the Marine Corps; and
       (4) $189.6 million for four C-130Js for the Air National 
     Guard.
     Joint Surveillance Target Attack Radar System (JSTARS)
       The budget request included $417.8 million for two E-8C 
     aircraft, $111.1 million for advanced procurement for two E-
     8Cs in fiscal year 1998, and $30.2 million for initial 
     spares. Trainers and support equipment were included in the 
     procurement. Funding in the amount of $207.3 million for 
     follow on development and testing was also requested in PE 
     64770F.
       The House bill would increase the requested amount by 
     $225.0 million for one additional aircraft.
       The Senate amendment would increase the requested amount by 
     $210.0 million for procurement and an additional $30.0 
     million for initial spares.
       The conferees agree to increase the requested amount by 
     $210.0 million for the acquisition of one additional JSTARS 
     aircraft.
       The conferees note that the JSTARS platform and associated 
     ground stations are currently contained in the Air Force and 
     Army tactical intelligence and related activities (TIARA) 
     budget aggregations. While the conferees realize there are 
     direct intelligence applications of the JSTARS associated 
     Ground Support Modules (GSM) and the follow on Common Ground 
     Stations (CGS), they note that the JSTARS aircraft is a 
     direct battle management and targeting system, not an 
     intelligence system. The JSTARS moving target indicator (MTI) 
     radar system provides critical data to the operational and 
     intelligence communities, and so could be considered within 
     the TIARA budget aggregation. Accordingly, the conferees 
     agree the associated ground stations are direct multi-source 
     intelligence support applications and may be appropriately 
     considered part of the entire intelligence support 
     architecture and continue to be funded within TIARA 
     aggregation.
     B-1B Conventional mission upgrade program
       The budget request for B-1B modifications was $84.4 
     million, and $220.9 million for research and development in 
     PE64226F.
       The House bill would authorize an increase of $15.0 million 
     to the budget request for B-1B bomber modifications to 
     accelerate competitive procurement of precision guided 
     munitions (PGM) for the B-1B fleet, and $57.0 million to 
     procure conventional bomb modules. The House bill would also 
     increase the budget request by $8.3 million for research and 
     development for defensive system upgrades.
       The Senate amendment would authorize an increase of $56.5 
     million in procurement for conventional bomb modules and an 
     increase of $48.0 million in research and development as 
     follows:
       (1) $25.0 million for the bomber virtual umbilical device 
     (BVUD);
       (2) $10.0 million for defensive systems upgrades; and
       (3) $13.0 million for data links.
       The conferees are discouraged by the slow pace of 
     conventional PGM integration for the B-1B. Although 
     additional funding was provided in fiscal year 1996 to 
     accelerate arming of the B-1B bomber force with Joint Direct 
     Attack Munitions and other PGM capability, the conferees are 
     not aware of any significant progress toward this objective. 
     Consequently, the conferees authorize an increase of $82.0 
     million to the procurement request for B-1B modifications as 
     follows:
       (1) $25.0 million to accelerate competitive procurement of 
     PGM; and
       (2) $57.0 million to procure conventional bomb modules.
       The conferees also agree to an increase to the budget 
     request of $8.3 million for defensive systems upgrade program 
     in PE64226F.
     E-3 Airborne Warning and Control Systems (AWACS)
       The budget request did not include funds for the re-
     engining of E-3 AWACS.
       The House bill would authorize an additional $64.2 million 
     in PE 27417F for reliability, maintainability and re-engining 
     initiatives approved by the Secretary of Defense that could 
     begin in fiscal year 1997.
       The Senate amendment would increase the request by $109.0 
     million in Aircraft Procurement, Air Force to begin the re-
     engining of the AWACS aircraft.
       The conferees agree to authorize an additional $34.9 
     million in research and development funding, for a total of 
     $92.5 million, to initiate re-engining of AWACS.
     Satellite communications terminals
       The budget request contained $14.8 million for modification 
     of in service aircraft.
       The House bill would authorize the budget request.
       The Senate amendment would increase the requested amount by 
     $21.2 million for procurement of demand assigned multiple 
     access (DAMA) ultra-high frequency (UHF) satellite 
     communications airborne terminals.
       The conferees agree to authorize an additional $20.3 
     million in aircraft procurement funding to begin procuring 
     UHF airborne DAMA terminals. the conferees understand that 
     additional funds will be required in the out years to 
     complete this effort and expect the Air Force to program 
     sufficient funding in future budget requests.
     Defense Airborne Reconnaissance Program Procurement
       Procurement for the Defense Airborne Reconnaissance Program 
     (DARP) is contained in a number of procurement lines, 
     distributed among the individual services and the defense-
     wide procurement account.
       The budget request included:
       (1) $66.2 million in Aircraft Procurement, Air Force (APAF) 
     line 59;
       (2) $150.7 million in APAF, line 70; and
       (3) $168.9 million in Procurement, Defense-wide (PDW), line 
     7.
       The House bill would provide an additional $210.3 million 
     in APAF line 59, a reduction of $50.0 million in APAF line 
     70, and an addition of $80.0 million in PDW line 7.
       The Senate amendment would provide an addition of $182.2 
     million to APAF line 59, authorize the budget request for 
     APAF line 70, and provide an additional $8.0 million for PDW 
     line 7.
       The budget request, details of the adjustments in the House 
     bill and the Senate amendment, and the final conference 
     agreement, are summarized in the table below:

          DEFENSE AIRBORNE RECONNAISSANCE PROCUREMENT PROGRAMS          
                         [Dollars in thousands]                         
------------------------------------------------------------------------
                                            Proposed change             
            Program              Budget  -------------------- Conference
                                 request    House    Senate    agreement
------------------------------------------------------------------------
Additional Rivet Joint                                                  
 aircraft.....................        --    39,300        --     39,300 
Rivet Joint mods..............    65,186    20,000        --     85,186 
Rivet Joint technology                                                  
 transfer.....................        --        --    20,000         -- 
Combat Sent mods..............     1,000     6,000        --      7,000 
RC-135 data links.............  ........        --     8,000         -- 
RC-135 re-engining............  ........   145,000   145,000    145,000 
SR-71 mods....................        --        --     9,000      9,000 
Subtotal--APAF 59.............    66,186   210,300   182,200    285,486 
Restore damaged U-2 aircraft..        --     5,000        --         -- 
Undistributed reduction.......        --  (50,000)        --   (50,000) 
Other.........................   150,742        --        --    150,742 
Subtotal--APAF 70.............   150,742  (45,000)        --    100,742 
Predator UAV..................    57,791    50,000        --    107,791 
Pioneer UAV...................    10,567    30,000        --     40,567 
Common automatic..............        --        --     8,000      8,000 
U-2 satellite communications..     2,023        --        --      2,023 
Common imagery ground/surface                                           
 system (CIGSS)...............    98,486        --        --     98,486 
                               -----------------------------------------
      Subtotal--PDW 7.........   168,867    80,000     8,000    256,867 
------------------------------------------------------------------------

       The conferees view with concern the lack of clarity in the 
     display of DARP spending and have included provisions 
     elsewhere in this bill requiring the Defense Airborne 
     Reconnaissance Office (DARO) to provide improved budget 
     presentations in future years.


                aircraft procurement, air force, line 59

       The conferees agree to an increase of $219.3 million above 
     the budget request for the following purposes:
       (1) $39.3 million for an additional Rivet Joint (RJ) 
     aircraft;
       (2) $20.0 million for RJ modifications;
       (3) $6.0 million for Combat Sent modifications;
       (4) $145.0 million re-engining RC-135 aircraft; and
       (5) $9.0 million for SR-71 modifications.
     Rivet Joint fleet modifications
       The conferees acknowledge the need for consistent level-of-
     effort funding to improve these intelligence support aircraft 
     in response to the rapid, and often unpredictable, 
     improvements in threat technologies. Accordingly, the 
     conferees expect the Department to provide funds for level-
     of-effort upgrades in future budget requests. While the 
     conferees support upgrades based on platform-specific 
     missions, they are skeptical of multi-functional type 
     developmental upgrades and will closely monitor the 
     Department's effort to coordinate service efforts and ensure 
     compliance of such upgrades with the overall architecture.
     Rivet Joint technology transfer
       The conferees encourage the Air Force to move forward with 
     a near-term, cost effective program to transfer the mature, 
     medium wave infrared sensor technology from the Cobra Ball 
     aircraft to the Rivet Joint fleet. Such a program would offer 
     the option of early deployment in support of theater missile 
     defense improvements. This transfer could provide significant 
     improvement to the Department's capabilities for long range 
     surveillance, warning, rapid cueing for attack operations and 
     predicting impact points.


                aircraft procurement, air force, line 70

       The conferees agree to a general reduction of $50.0 million 
     to the budget request.

[[Page H9181]]

                   procurement, defense-wide, line 7

     Pioneer unmanned aerial vehicle (UAV)
       The budget request included $10.6 million attrition spares 
     and unit support kits for the Pioneer UAV.
       The House bill would authorize an increase of $30.0 million 
     over the request to purchase attrition air vehicles and to 
     replace aging and vanishing vendor items.
       The Senate amendment would authorize the request.
       The Department's decision to terminate the procurement of 
     the Hunter UAV system has resulted in the Pioneer becoming 
     the only UAV currently capable of meeting Navy and Marine 
     Corps short range requirements. Consequently, the conferees 
     agree to provide an increase of $30.0 million to fund 
     initiatives necessary to ensure the continued effectiveness 
     of the Pioneer UAV system.
     Predator unmanned aerial vehicle (UAV)
       The budget request included $57.8 for Predator hardware and 
     production support.
       The House bill would authorize an increase of $50.0 million 
     to procure an additional two Predator systems.
       The Senate amendment would authorize the budget request, 
     and would separately provide a provision restricting the 
     obligation of fiscal year 1997 funds.
       The Senate recedes.
       The conferees agree to recommend an additional $50.0 
     million for the Predator UAV system. The conferees recognize 
     the Predator UAV's importance as well as the need to field 
     capable effective UAV systems in the near-term.
     Common automatic recovery system (CARS)
       The conferees expect that this low cost system will help 
     reduce mishaps and improve UAV operational effectiveness. 
     Accordingly, the conferees agree to provide an additional 
     $8.0 million for integrating CARS into the tactical UAV 
     (TUAV) and the Predator UAV systems as soon as practicable.
     KC-135 simulators
       The budget request included $176.4 million for common 
     aerospace ground equipment (AGE), which included funds for a 
     three phase program to upgrade C-5, KC-10, and KC-135 
     simulators.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $63.0 
     million to acquire the last nine simulator systems in fiscal 
     year 1997.
       Since the House bill and the Senate amendment were passed, 
     the conferees have learned of possible reductions in the AGE 
     line because of postponed acquisition of self-generating 
     nitrogen systems. Accordingly, the conferees agree to reduce 
     the budget request by $16.2 million.
     F-16 post production support
       The budget request included $81.6 million for post 
     production support of F-16 aircraft.
       The House bill would authorize the budget request.
       The Senate amendment would authorize the budget request.
       Since the House bill and the Senate amendment were passed, 
     the conferees have learned of possible reductions in F-16 
     post production support requirements, because of double 
     budgeting of sustainment costs, and unneeded production 
     termination funds. Accordingly, the conferees agree to reduce 
     the budget request by $10.7 million.
     Miscellaneous production charges
       The budget request included $210.7 million for 
     miscellaneous production charges.
       The House bill would authorize a reduction of $28.0 
     million.
       The Senate amendment would authorize the budget request.
       The conferees have learned of possible reductions in 
     requirements for miscellaneous production charges, because 
     funds in the program are excess to firm program requirements. 
     Accordingly, the conferees agree to reduce the budget request 
     by $24.7 million.
     Overview
       The budget request for fiscal year 1997 contained an 
     authorization of $2,733.9 million for Missile Procurement, 
     Air Force in the Department of Defense. The House bill would 
     authorize $4,341.2 million. The Senate amendment would 
     authorize $2,847.2 million. The conferees recommended an 
     authorization of $2,525.9 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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     Peacekeeper sustainment
       The budget request included $8.3 million for procurement of 
     missile replacement equipment, $72.8 million for procurement 
     of Minuteman III modifications, and $44.6 million for 
     procurement of spares and repair parts.
       The House bill recommended a net increase of $32.0 million 
     for Peacekeeper sustainment activities. This included an 
     additional $3.4 million for missile replacement equipment, 
     $5.3 million for Minuteman modifications, and $300,000 for 
     replacement spares and repairs. In addition, the House bill 
     recommends that, of the amounts authorized to be appropriated 
     pursuant to Title III for Air Force operation and 
     maintenance, $23.0 million be used for sustained Peacekeeper 
     operations.
       The Senate amendment approved the budget request for 
     Peacekeeper.
       The conferees agree to authorize the following for 
     peacekeeper sustainment: (1) an additional $3.4 million for 
     missile replacement equipment, a net increase of $500,000 in 
     this program element; (2) an additional $5.3 million in 
     Procurement Air Force (Minuteman modifications); (3) an 
     addition $300,000 in Air Force Procurement for replacement 
     spares and repairs; and (4) of the amounts authorized to be 
     appropriated pursuant to Title III for Air Force operation 
     and maintenance, $23.0 million for Peacekeeper operations.
     Overview
       The budget request for fiscal year 1996 contained an 
     authorization of $0 million for Ammunition Procurement, Air 
     Force in the Department of Defense. The House bill would 
     authorize $303.9 million. The Senate amendment would 
     authorize $0 million. The conferees recommended an 
     authorization of $278.3 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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     Overview
       The budget request for fiscal year 1997 contained an 
     authorization of $5,998.8 million for Other Procurement, Air 
     Force in the Department of Defense. The House bill would 
     authorize $6,117.4 million. The Senate amendment would 
     authorize $5,889.5 million. The conferees recommended an 
     authorization of $5,814.4 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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     60K Loader
       The budget request contained $40.3 million for 37 60K 
     loaders.
       The House bill would authorize the budget request.
       The Senate amendment would increase the authorization by 
     $23.1 million to accelerate the acquisition of 60K loaders by 
     adding 20 additional loaders in fiscal year 1997.
       The House recedes.
       The conferees understand that accelerated acquisition of 
     60K loaders through an additional 20 loaders in fiscal year 
     1997 could reduce Future Years Defense Program (FYDP) costs 
     of these loaders by $27.4 million.
       Accordingly, the conferees recommend an increase of $23.1 
     million to acquire a total of 57 of the new 60K loaders, with 
     the understanding that the Department of Defense has 
     programmed sufficient funds in the out years to complete the 
     planned acquisition of 60K loaders.
     Theater battle management command and control system 
         procurement (TBMCS)
       The budget request included $48.0 million for procurement 
     of the theater battle management command and control system.
       The House bill would authorize the budget request.
       The Senate amendment would add $2.2 million to the program 
     as part of a data link initiative to incorporate data links 
     in various Air Force aircraft. The additional $2.2 million 
     would complete installation of data link related equipment in 
     modular air operation centers.
       The Senate recedes.
       The conferees agree to authorize $48.0 million for the 
     system.
     Base information infrastructure
       The budget request included $125.7 million Air Force base 
     information infrastructure.
       The House bill would reduce the authorization by $10.0 
     million.
       The Senate amendment would authorize the budget request.
       The Senate recedes.
     Overview
       The budget request for fiscal year 1997 contained an 
     authorization of $1,841.2 million for Defense-wide 
     Procurement in the Department of Defense. The House bill 
     would authorize $1,890.2 million. The Senate amendment would 
     authorize $1,908.0 million. The conferees recommended an 
     authorization of $2,008.3 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice. 

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     C-130 aircraft modifications
       The budget request included $86.7 million for modifications 
     to U.S. Special Operations Command (USSOCOM) C-130 aircraft.
       The Senate amendment would authorize an increase of $23.8 
     million for survivability and sustainment improvements to 
     USSOCOM's fleet of AC-130U gunships and the MC-130H Combat 
     Talon II aircraft.
       The House bill would authorize the requested amount.
       The conferees agree to authorize an increase of $17.9 
     million for modifications to USSOCOM C-130 aircraft.
     Advanced SEAL delivery system
       The budget request included no procurement funding for the 
     advanced SEAL delivery system (ASDS) for the U.S. Special 
     Operations Command.
       A changed interpretation of administrative procedures 
     between preparation of the fiscal year 1996 and fiscal year 
     1997 budget requests caused $4.4 million of advance 
     procurement funding for the ASDS to be deleted from the 
     fiscal year 1997 budget request. The consequence of this 
     reduction in funding would be a one year delay in fielding 
     the ASDS system.
       To restore the ASDS program to its original schedule, the 
     Senate amendment would authorize an increase of $4.4 million 
     over the budget request for the procurement of long-lead 
     steel and integrated control and display consoles needed for 
     fabrication of the first production ASDS.
       The House bill would authorize the requested amount.
       The House recedes.
     SCAMPI communications system
       The budget request contained no funding for procurement of 
     the SCAMPI communications system for the U.S. Special 
     Operations Command (USSOCOM).
       The Senate amendment would authorize an increase of $3.7 
     million to complete hub relocation for USSOCOM's SCAMPI 
     communications system.
       The House bill would authorize the requested amount.
       The Senate recedes.
     Special mission radio system
       The budget request contained $26.6 million for procurement 
     of communications and electronic equipment for the U.S. 
     Special Operations Command.
       The Senate amendment would authorize an additional $9.4 
     million for procurement of the special mission radio system 
     (SMRS) to satisfy long-range communications requirements of 
     the special forces.
       The House bill would authorize the requested amount.
       The House recedes.
     Briefcase multi-mission advanced tactical terminal
       The budget request included $19.8 million for intelligence 
     systems for the U.S. Special Operations Command (USSOCOM).
       The Senate amendment authorized an addition of $4.5 million 
     to accelerate the procurement of the briefcase multi-mission 
     advanced tactical terminal (BMATT).
       The House bill would authorize the requested amount.
       The Senate recedes.
     Overview
       The budget request for fiscal year 1997 contained no 
     authorization for National Guard and Reserve Procurement in 
     the Department of Defense. The House bill would authorize 
     $805.0 million. The Senate amendment would authorize $759.0 
     million. The conferees recommended an authorization of $780.0 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

                   National Guard and Reserve Package

                                                            In millions
Army Reserve:
    2.5T Truck SLEP................................................25.0
    5T Truck SLEP..................................................25.0
    New Procurement 2.5/5T Trucks..................................15.0
    Palletized Load System..........................................4.0
    Coolant Purification Units......................................2.0
    Small Arms Simulators...........................................1.0
    MK-19...........................................................3.0
    Automatic Building Machines.....................................5.0
    HMMWV Maintenance Trucks........................................5.0
    Miscellaneous..................................................13.0
Navy Reserve:
    Magic Lantern Spares............................................5.0
    F18 Upgrades...................................................16.0
    MIUW Van System Upgrades.......................................10.0
    Night Vision Goggles............................................5.0
    C-9 Replacement................................................40.0
    Miscellaneous..................................................40.0
USMC Reserve:
    CH-53..........................................................50.0
    Miscellaneous..................................................17.0
Air Force Reserve:
    KC-135 Reengining..............................................26.0
    Avionics Upgrades..............................................14.0
    Night Vision Devices............................................5.0
    C-20G..........................................................30.0
    Miscellaneous..................................................19.0
Army National Guard:
    Tactical Trucks & Trailers.....................................20.0
    2.5T Truck SLEP................................................15.0
    5T Truck SLEP...................................................4.0
    Communications Equipment.......................................18.0
    Avenger I-Coft Simulator........................................4.0
    C-23 Enhancement Program.......................................18.0
    Small Arms Simulators...........................................5.0
    FADEC..........................................................10.0
    Coolent Purification System.....................................3.0
    Crashworthy Fuel Cells..........................................5.0
    Vibration Diagnostic Equipment..................................3.0
    Reconfigurable Aviation Sim.....................................5.0
    AH-1 C-Nite.....................................................2.0
    Dragon Upgrade.................................................25.0
    Night Vision....................................................5.0
    Aircraft Equipment.............................................17.0
    Miscellaneous..................................................12.0
Air National Guard:
    SEAD Mission Upgrade...........................................11.4
    Theater Deployable Comms.......................................17.0
    AN/TLQ Radar Decoys.............................................3.0
    F-16 AIS.......................................................10.0
    C130J.........................................................189.6
    Miscellaneous...................................................3.0
      Total NGRE package..........................................780.0
     Overview
       The budget request for fiscal year 1997 contained an 
     authorization of $799.9 million for Chemical Agent and 
     Munitions Destruction, Army in the Department of Defense. The 
     House bill would authorize $799 million. The Senate amendment 
     would authorize $802.9 million. The conferees recommended an 
     authorization of $759.9 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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[[Page H9201]]

                       items of special interest

     Air Force precision guided munitions
       Last year, the statement of managers accompanying the 
     conference report on S. 1124 (H. Rept. 104-450) noted the 
     need for DOD to develop a long-term cohesive, joint PGM 
     program. Section 261 of the National Defense Authorization 
     Act for Fiscal Year 1996 directed DOD to develop such a plan. 
     The Department has informed the congressional defense 
     committees that the analysis necessary to develop this plan 
     will not be complete until later this year. The conferees 
     believe that DOD should not wait for another whole year to 
     begin providing additional PGM capability beyond that 
     supported in the budget request.
       Accordingly, while awaiting this analysis and the 
     Department's recommendations based on this analysis, the 
     conferees recommend an increase of $118.2 million in missile 
     procurement Air Force as detailed below:

                                           PRECISION GUIDED MUNITIONS                                           
                                              [Dollars in millions]                                             
----------------------------------------------------------------------------------------------------------------
                                    Request          SASC            HNSC         Conference                    
                               ------------------------------------------------      total                      
          Procurement                                                          ----------------        Ref      
                                  ($)     Qty     ($)     Qty     ($)     Qty     ($)    (Qty)                  
----------------------------------------------------------------------------------------------------------------
AGM-142.......................      --      --    39.0      54    39.0      50    39.0      54  MPAF line 2     
Joint Direct Attack Munition..    23.0     937      --      --    50.0    3000    23.0     937  MPAF line 5     
AMRAAM (AF)...................   116.3     133   139.8     200  ......  ......   116.9     163  MPAF line 7     
AGM-130.......................      --      --    40.0     100    95.0     250    40.0     100  MPAF line 8     
AGM 165, Maverick.............      --      --      --      --    34.0     425      --      --  MPAF line 8a    
CALCM.........................      --      --    15.0     100    15.0     100    15.0     100  MPAF line 12    
SFW...........................   131.1     400   152.7     500   152.7     500   152.7     500  PAAF line 16    
Hard Target Smart Fuze........      --      --     2.0      --      --      --     2.0      --  PAAF line 30    
----------------------------------------------------------------------------------------------------------------

     Automated document conversion system (ADCS)
       The conferees are aware that the Department has made some 
     progress in following its direction to begin the purchase of 
     the software necessary to convert the Department's more 
     complex engineering documents from raster files to an 
     intelligent format. In addition, the conferees are encouraged 
     by the initial results of ADCS testing. The conferees are 
     aware that significant cost savings can be achieved through 
     the use of an ADCS; thus, the conferees are disappointed that 
     no funds were requested for this purpose.
       Accordingly, the conferees recommend $38.8 million for the 
     competitive procurement of an ACDS capability.
     Prototype instrumentation range facility
       There has been significant progress in advancing the state-
     of-the-art in training and simulation devices. With the 
     advent of improved technologies, such as instrumented ranges, 
     the Army can now train units in the complexities of modern 
     combat more efficiently. However, this technology has not 
     been transferred to the Army National Guard, where it could 
     have significant impact on unit training and readiness. The 
     conferees understand that the Army National Guard is prepared 
     to allocate up to $7.0 million from the miscellaneous 
     equipment section of the National Guard and Reserve Equipment 
     Account to set up a prototype instrumented range facility to 
     begin training Army National Guard units using advanced 
     training and simulation devices.
       The conferees strongly support such an initiative and urge 
     the Director of the Army National Guard to proceed with an 
     initiative to establish such a facility. The conferees direct 
     the Director of the Army National Guard to provide a report 
     to the Committee on Armed Services of the Senate and the 
     Committee on National Security of the House of 
     Representatives not later than 12 months after enactment of 
     this Act on the progress toward establishing the instrumented 
     range.


                         legislative provisions

              Subtitle A--Authorization of Appropriations


                     legislative provisions adopted

     Defense Inspector General (sec. 106)
       The House bill contained a provision that would authorize 
     $2.0 million for the Defense Inspector General. The Senate 
     amendment contained an identical provision. The conference 
     agreement includes this provision.
     Chemical agents and munitions destruction program (secs. 107 
         and 142)
       The budget request included $799.8 million for the defense 
     chemical agents and munitions destruction program, including 
     $477.9 million for operation and maintenance, $273.6 million 
     for procurement, and $48.3 million for research and 
     development. Additionally, the budget request included $131.6 
     million for military construction.
       The House bill contained a provision (sec. 107) that would 
     authorize $804.8 million for the chemical agents and 
     munitions destruction program, including $21.0 million for 
     the alternative technology and approaches project, an 
     increase of $5.0 million to the budget request.
       The Senate amendment contained a provision (sec. 107) that 
     would authorize $802.8 million for the chemical agents and 
     munitions destruction program, including an increase of $3.0 
     million for research and development to expedite and 
     accelerate the development and fielding of critical advanced 
     sensors that are part of the Army's mobile munitions 
     assessment system. A second provision (sec. 113) would 
     require the Secretary of Defense to conduct a study on the 
     cost of the baseline incineration of the chemical munitions 
     stockpile versus the disposal of neutralized chemical 
     munitions at a centrally located incinerator. A third 
     provision (sec. 117) would provide $60.0 million for a pilot 
     program to identify and demonstrate feasible alternatives to 
     incineration for the demilitarization of assembled chemical 
     munitions, establish an executive agent for the pilot program 
     separate from the existing chemical weapon stockpile 
     demilitarization program, require the Secretary of Defense to 
     evaluate and report the results of the completed pilot 
     program by December 31, 2000, and place limits on long lead 
     contracting for the construction of chemical agent baseline 
     program incinerators at any site in Kentucky or Colorado.
       The Senate recedes with an amendment.
       The conferees agree to a provision (sec. 107) that would 
     authorize $759.8 million for the defense chemical agents and 
     munitions destruction program, to include: $233.6 million for 
     procurement; $477.9 million for operation and maintenance; 
     and $48.3 million for research and development. Of the amount 
     authorized $21.1 million shall be available for the 
     alternative technologies and approaches project and $3.0 
     million shall be available to expedite and accelerate the 
     development and fielding of critical advanced sensors that 
     are part of the Army's mobile munitions assessment system.
       Further, the conferees agree to a provision (sec. 142) that 
     would direct the Secretary of Defense to assess the current 
     baseline incineration program for destruction of assembled 
     chemical munitions and of alternative demilitarization 
     technologies and processes other than incineration that could 
     be used for the destruction of lethal chemical agents and 
     munitions. Should the Secretary decide to conduct a pilot 
     program for development and demonstration of an alternative 
     technology or process other than incineration for the 
     destruction of the lethal chemical agents that are associated 
     with assembled munitions, the provision would authorize $25.0 
     million from funds authorized in fiscal year 1997 for use by 
     the Secretary for this purpose, and would require the 
     Secretary to notify the Congress 30 days in advance, of his 
     intention to use funds to initiate a pilot program. The 
     provision would also require that the pilot program be 
     conducted at the selected chemical agent and munitions 
     stockpile storage site for which the alternative technology 
     or process is recommended.
     Progress in the chemical agents and munitions destruction 
         program
       The conferees reiterate the concerns expressed in the 
     statement of managers accompanying the National Defense 
     Authorization Act for Fiscal Year 1996 (Public Law 104-106), 
     that continued delays in the chemical agents and munitions 
     destruction program would lead to increases in overall 
     program cost and in risk to the public and the environment. 
     The conferees believe that the program should proceed 
     expeditiously, using those technologies that minimize risk to 
     the public and the environment. The conferees support the 
     recommendations of the National Research Council (NRC), that 
     the Army continue its current baseline incineration program 
     until such time as the evaluation of alternative technologies 
     for demilitarization and destruction of the stockpile is 
     concluded. The conferees note the progress that has been made 
     in the program. More than 50 percent (2 million pounds of 
     chemical agents) of the chemical agent and munitions 
     stockpile on Johnston Atoll has been destroyed and full-scale 
     demilitarization operations continue at that site. On June 
     26, 1996, the State of Utah granted approval for the Army to 
     begin chemical munitions destruction operations using the 
     baseline incineration process at the Tooele Chemical Agent 
     Disposal Facility in Tooele, Utah.
       The conferees have reviewed the `'Department of Defense's 
     Interim Status Assessment for the Chemical Demilitarization 
     Program,'' dated April 15, 1996, that was submitted to the 
     Congress in response to section 152(c) of the National 
     Defense Authorization Act for Fiscal Year 1996 (Public Law 
     104-106). Measures for potential reductions in the total cost 
     of the chemical stockpile destruction program are under 
     review within the Department of Defense. Although there is no 
     evidence of immediate danger from stockpile, risk assessments 
     from the programmatic environmental impact statement

[[Page H9202]]

     and the ongoing site-specific risk analysis updates continue 
     to indicate that storage risk is much greater than the risks 
     associated with executing the current chemical stockpile 
     disposal program and that delay in the disposal effort will 
     result in increased public risk. The Secretary of Defense is 
     directed to submit to the Congress, with the Defense budget 
     request for fiscal year 1998, a final report on the 
     assessment and recommendations for revision to the current 
     baseline incineration program, including the use of 
     alternative technologies, which could reduce program costs 
     and increase public safety.
     Alternative technologies
       The assessment discusses progress in the alternative 
     technologies research and development program. Under this 
     program, the Army, in coordination with the NRC, is 
     evaluating five technologies for potential use at the bulk-
     only stockpile sites (Aberdeen Proving Ground, Maryland, and 
     Newport Army Ammunition Depot, Indiana). The Army's 
     evaluation and the NRC's recommendations will provide the 
     basis for an October 1996 decision by the Department of 
     Defense on the continued development of an alternative 
     chemical agent destruction process for the bulk-only storage 
     sites. Should the Secretary of Defense for demilitarization 
     of the chemical agents at the bulk-only chemical stockpile 
     storage sites, the conferees agree that the Secretary should 
     utilize current authority to reprogram funds to initiate a 
     pilot program for this purpose.
       The conferees notes that the Army's alternative 
     technologies research and development program has been 
     limited to consideration of alternative technologies for 
     potential use at the bulk-only storage sites. The conferees 
     believe that consideration should be given also given to 
     variants of the baseline program in which alternative 
     technologies and processes are used for destruction of the 
     chemical agent associated with assembled chemical munitions. 
     The conferees have included a provision that would direct the 
     Secretary of Defense, in coordination with the NRC, to 
     conduct an assessment of such alternative technologies and 
     processes and to report the results of the assessment to the 
     Congress not later than December 31, 1997, together with any 
     recommendations for revisions to the baseline program for 
     destruction of assembled chemical munitions. Should the 
     Secretary of Defense recommend the continued development of 
     an alternative technology or process for destruction of the 
     chemical agents associated with assembled chemical munitions, 
     as mentioned earlier in this report, the conferees have 
     included a provision which would make $25.0 million available 
     from funds authorized in this Act to initiate a pilot program 
     for this purpose. In order to minimize environmental 
     permitting delays for a full-scale program which might use 
     the alternative technology or process, the provision provides 
     that the pilot program for development of the technology or 
     process shall be conducted at the specific chemical agent and 
     munitions stockpile storage for which the alternative 
     technology or process is recommended.
     Management of Chemical Agents and Munitions Destruction 
         Program
       The conferees agree that the Department of Defense must 
     provide for unified and integrated overall management of the 
     chemical agents and munitions destruction program and the 
     non-stockpile agents and munitions destruction program. The 
     conferees are concerned that a divided program under separate 
     managers, would result in duplication of effort, increased 
     costs, and reduced safety. Accordingly, the conferees 
     continue to support the current management structure within 
     the Department of Defense, with the Army as executive agent 
     for the chemical agents and munitions destruction program, 
     which includes the baseline incineration program, alternative 
     technologies for the bulk-only stockpile sites, alternative 
     technologies for the destruction of assembled chemical 
     munitions, and the non-stockpile chemical agents and weapons 
     destruction program. Additionally, the conferees appreciate 
     the support and efforts of the National Research Council in 
     conducting oversight of the chemical agents and munitions 
     destruction program, and believe that it should continue to 
     perform this function for the Department.

                       Subtitle B--Army Programs


                     legislative provisions adopted

     Repeal of limitation on procurement of Armed Kiowa Warrior 
         helicopters (sec. 111)
       The House bill contained a provision (sec. 111) that would 
     repeal the limitation on procurement of certain aircraft as 
     it pertained to the OH-58D Armed Kiowa Warrior helicopter.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Multiyear procurement authority for Army programs (sec. 112)
       The House bill included a provision (sec. 112) that would 
     authorize the Secretary of the Army to extend the multiyear 
     contract in effect for the Avenger missile system during 
     fiscal year 1996 through fiscal year 1997. Additionally, the 
     provision would authorize the Secretary of the Army to enter 
     into a multiyear procurement contract, beginning with fiscal 
     year 1997, for the procurement of the Army Tactical Missile 
     System.
       The Senate amendment contained a provision (sec. 111) that 
     would authorize the Secretary of the Army to enter into a 
     multiyear procurement contract, beginning with fiscal year 
     1997, for the procurement of the Javelin missile system.
       The Senate recedes with an amendment that would authorize a 
     multiyear procurement contract for the Javelin missile 
     system.
     Bradley TOW 2 test program sets (sec. 113)
       The Senate amendment contained a provision (sec. 116) that 
     would authorize the Secretary of the Army to make available 
     $6.0 million from funds authorized to be appropriated under 
     section 101(3) of the National Defense Authorization Act for 
     Fiscal Year 1996 (110 Stat. 204), for Bradley TOW 2 test 
     program sets.
       The House bill contained no similar provision.
       The House recedes.

                       Subtitle C--Navy Programs


                     LEGISLATIVE PROVISIONS ADOPTED

     Nuclear attack submarine programs (sec. 121)
       The budget request included $296.2 million of advance 
     construction and procurement funding for a fiscal year 1998 
     nuclear attack submarine and $699.1 million for procurement 
     of the third Seawolf class submarine, SSN-23. Research and 
     development funding in the budget request for the fiscal year 
     1998 submarine was initially reported as $489.4 million but 
     was subsequently corrected to $487.6 million. The budget 
     request included no advance construction and procurement 
     funding for the procurement of a second nuclear attack 
     submarine in fiscal year 1999, as called for in the National 
     Defense Authorization Act for Fiscal Year 1996 and the Navy's 
     six-year shipbuilding plan that was submitted in conjunction 
     with the budget request.
       The House bill contained a provision (sec. 121) that would 
     authorize $699.1 million for procurement of SSN-23, $296.2 
     million of advance construction and procurement funding for a 
     fiscal year 1998 nuclear attack submarine that would be built 
     at Electric Boat, and $504.0 million for advance construction 
     and procurement for a fiscal year 1999 nuclear attack 
     submarine that would be built at Newport News Shipbuilding.
       Section 121 of the House bill would also authorize an 
     increase of $188.0 million to pursue core, Category I, and 
     Category II advance submarine technology initiatives that 
     were identified in Report on Nuclear Attack Submarine 
     Procurement and Submarine Technology, submitted to Congress 
     by the Secretary of Defense on March 26, 1996, in compliance 
     with the National Defense Authorization Act for Fiscal Year 
     1996. The added funds would also be used for design 
     initiatives intended to ensure that new technology is 
     incorporated into the design of four developmental submarines 
     that would begin construction at the rate of one per year 
     during the period fiscal year 1998 to fiscal year 2001 and on 
     serial production submarines that would not be authorized 
     until fiscal year 2003. Section 121 would also revise the 
     basis of the competition for serial production so that it 
     would be based on best value vice price.
       The House provision would also place limitations on the 
     expenditure of fiscal year 1997 procurement and development 
     funds until the Secretary of Defense, the Under Secretary of 
     Defense for Acquisition and Technology, and the Under 
     Secretary of Defense (Comptroller) take certain steps to 
     comply with sections 131 and 132 of the National Defense 
     Authorization Act for Fiscal Year 1996. Additionally, the 
     House provision would direct the Department of Defense to 
     implement specified acquisition simplification strategies in 
     order to expedite the fielding of more capable, less 
     expensive nuclear attack submarines.
       The Senate amendment contained a provision (sec. 123) that 
     would authorize $804.1 million for procurement of SSN-23, 
     $296.2 million of advance construction and procurement 
     funding for a fiscal year 1998 nuclear attack submarine that 
     would be built at Electric Boat, and $701.0 million for 
     advance construction and procurement for a fiscal year 1999 
     nuclear attack submarine that would be built at Newport News 
     Shipbuilding. This authorization would satisfy all 
     procurement funding requirements for SSN-23 and all advance 
     construction and procurement funding requirements for the 
     fiscal year 1998 and fiscal year 1999 submarines.
       Although it would authorize the amount in a different 
     provision discussed elsewhere in this statement of managers, 
     the Senate amendment would increase funding for advance 
     submarine technology by $100.0 million to pursue core, 
     Category I, and Category II advance submarine technology 
     initiatives that were identified in the Secretary of 
     Defense's Report on Nuclear Attack Submarine procurement and 
     Submarine Technology. The Senate amendment would also place 
     limitations, similar in intent if not in detail, on the 
     expenditure of fiscal year 1997 procurement funds until the 
     Secretary of Defense and the Under Secretary of Defense for 
     Acquisition and Technology take certain steps to comply with 
     section 131 of the National Defense Authorization Act for 
     Fiscal Year 1996.
       The Senate recedes with an amendment.
       The conferees agree to authorize $699.1 million for 
     procurement of SSN-23, $296.2 million of advance construction 
     and procurement of SSN-23, $296.2 million of advance 
     construction and procurement funding for a fiscal year 1998 
     nuclear attack submarine that will be built at Electric Boat, 
     and $701.0 million for advance construction and procurement 
     for a fiscal year 1999 nuclear attack submarine that will be 
     built at Newport News Shipbuilding.

[[Page H9203]]

       For research and development the conference agreement:
       (1) authorizes $60.0 million to mature and transition the 
     core technologies identified in the Secretary of Defense's 
     Report on Nuclear Attack Submarine Procurement and Submarine 
     Technology with emphasis on hydrodynamics, alternative sail 
     designs, advanced arrays, electric drive, external weapons, 
     and active controls and mounts;
       (2) directs that of this $60.0 million, $20.0 million is to 
     be equally divided between Electric Boat and Newport News to 
     ensure the two shipbuilders are principal participants in the 
     process of including new technologies in the design of future 
     attack submarines. The conferees intend that the shipbuilders 
     be allowed access to naval intelligence data and that there 
     be continuing interaction among the shipyards, the Navy 
     laboratories, and the Defense Advanced Research Projects 
     Agency;
       (3) authorizes $38.0 million to fund development and 
     testing of Category I and II technologies, as described in 
     the Secretary of Defense's report;
       (4) directs that the Navy will implement acquisition reform 
     initiatives similar in form and intent to the Air Force's 
     ``Lightning Bolt'' initiatives begun in May 1995;
       (5) places limitations on the expenditure of fiscal year 
     1997 procurement and development funds until the Secretary of 
     Defense, the Under Secretary of Defense for Acquisition and 
     Technology, and the Under Secretary of Defense (Comptroller) 
     take certain steps to comply with section 131 of the National 
     Defense Authorization Act for Fiscal Year 1996 and other 
     limitations included in the amended provision;
        (6) repeals section 132 of the National Defense 
     Authorization Act for Fiscal Year 1996 and directs that the 
     funds covered by that provision shall be available to the 
     Secretary of the Navy only for advanced submarine technology 
     involving the construction of large scale vehicles for 
     purposes of hydrodymanic and hydroacoustic research; and
       (7) affirms that the serial production of future nuclear 
     attack submarines to follow the four developmental submarines 
     will occur not earlier than fiscal year 2002 and only after a 
     competition based on price.
     Arleigh Burke Class destroyer program (sec. 122)
       The budget request included $3.4 billion for the 
     procurement of four Arleigh Burke class destroyers and 
     advance procurement of future destroyers of this class.
       The Senate amendment contained a provision (sec. 124) that 
     would authorize:
       (1) the requested amount for Arleigh Burke class 
     destroyers;
       (2) $750.0 million above the budget request for advance 
     procurement for Arleigh Burke class destroyers; and
       (3) the Secretary of the Navy to enter into multiyear 
     contracts for the procurement of a total of 12 Arleigh Burke 
     class destroyers at a procurement rate of three destroyers 
     per year during the four-year period from fiscal year 1998 to 
     fiscal year 2001;
       The Senate report (S. Rept. 104-267) noted that testimony 
     by Navy witnesses indicated that the stable procurement 
     program that would result from such authorization would 
     permit the Navy to acquire these 12 ships at a substantial 
     cost savings.
       The House bill would authorize the requested amount.
       The conferees agree to adopt a provision that authorizes an 
     increase of $525.0 million above the budget request and 
     provides a multiyear contracting authority for the 
     procurement of a total of 12 Arleigh Burke class destroyers 
     at a procurement rate of three destroyers per year during the 
     four-year period from fiscal year 1998 to fiscal year 2001.

                                       AIRBORNE ELECTRONIC WARFARE FUNDING                                      
                                              [Dollars in millions]                                             
----------------------------------------------------------------------------------------------------------------
                                                   House  Senate  Conference                                    
                   Procurement                    change  change    change                 Reference            
----------------------------------------------------------------------------------------------------------------
Band 9/10.......................................   $40.0   $40.0     $40.0    APN line 19, OSIP 19-79.          
Overhead connectivity...........................  ......    22.0  ..........  APN line 19, OSIP 32-85.          
USQ-113.........................................  ......    11.0      11.0    APN line 19, OSIP 32-85.          
Wing center sections............................    55.0  ......      50.0    ..................................
                                                 ---------------------------------------------------------------
      Total.....................................    95.0    73.0     101.0    ..................................
Research & Development..........................  ......  ......  ..........  ..................................
Reactive jamming initiative.....................  ......    55.0      32.0    RDT&E, Navy, PE 60427N.           
Universal exciter upgrade.......................  ......    10.0  ..........  RDT&E, Navy, PE 60427N            
                                                 ---------------------------------------------------------------
      Total.....................................  ......    65.0      32.0    ..................................
----------------------------------------------------------------------------------------------------------------

                              procurement

       Attack aviation continues to require a robust electronic 
     warfare capability. The decision to retire the Air Force's 
     EF-111s and rely on the EA-6B for the Department's tactical 
     jamming mission makes it imperative that the EA-6B fleet be 
     structurally sound and modernized to meet current 
     requirements.
       The conferees note that the current jamming transmitters on 
     the EA-6B have not changed substantially since originally 
     designed in the 1960s, although there have been several 
     generations of improved surface-to-air and air-to-air 
     missiles since then, and many of these new systems operate in 
     the high radio frequency range. Also, the great majority of 
     current anti-ship missiles employ seekers in the band 9/10 
     frequency range. Consequently, the conferees agree to 
     authorize an increase of $40.0 million to the budget request 
     to procure 60 shipsets of these transmitters.
       The conferees agree to authorize an addition of $11.0 
     million to the budget request to acquire an additional 24 
     units of the USQ-113 communications jammer.
       The EA-6B's aluminum wing center sections have been found 
     to be subject to embrittlement, which has led to stress 
     cracks and resulted in the removal of a number of aircraft 
     from active service. Consequently, the conferees agree to 
     increase the budget request by $50.0 million to purchase ten 
     of the twenty new wing center sections in order to avoid a 
     production break in the manufacture of this component.


                        research and development

       Although funds were authorized and appropriated for fiscal 
     year 1996 to initiate a reactive jammer program for the EA-
     6B, the Department of Defense chose not to initiate such a 
     program, and elected instead to program funds for such an 
     effort from fiscal year 1999 to fiscal year 2001.
       The conferees find these actions of ignoring congressional 
     direction and refusing to start a modest reactive jamming 
     program unacceptable. The EA-6B is currently using obsolete 
     receivers with technology from the 1960s. The EA-6B is 
     scheduled to be the only airborne standoff jamming capability 
     within DOD. The conferees expect the Department to begin at 
     once a program to develop and field a reactive jamming 
     capability in the EA-6B, and have authorized an additional 
     $32.0 million for this purpose.


                         legislative provision

       The Senate amendment contained a provision (sec. 121) that 
     would require the Secretary of Defense to:
       (1) certify obligation of funds for a reactive jamming 
     program; and
       (2) submit a plan for a complete program to the 
     congressional defense committees before obligation of any 
     funds for other recommended increases the EA-6B program.
       The provision would also provide that all EA-6B 
     modification funding be transferred to the Air Force for 
     upgrading and operating EF-111 aircraft, if such 
     certification is not may by June 1, 1997.
       The House bill did not contain a similar provision.
       The House recedes.
       The conferees note with concern the Navy's slow response to 
     Congressional direction and the need for modern, robust 
     electronic warfare capabilities now.
     T-39N trainer aircraft for the Navy (sec. 124)
       The House bill contained a provision (sec. 125) that would 
     direct the Secretary of the Navy to enter into a contract for 
     T-39N aircraft not later than 15 days from the date of 
     enactment of the Defense Authorization Act for Fiscal Year 
     1997.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would allow the 
     Navy to acquire 17 T-39N aircraft once the Under Secretary of 
     Defense for Acquisition and Technology makes certain 
     certifications contained in the National Defense 
     Authorization Act for Fiscal Year 1996, section 137.
     Penguin missile program (sec. 125)
       The Senate amendment contained a provision (sec. 122) that 
     would permit the Navy to enter into a contract for multi-year 
     procurement of not more than 106 Penguin missiles in 
     accordance with section 2306b of title 10, United States 
     Code. The total amount that could be expended would be 
     limited to $84.8 million.
       The house bill contained no similar provision.
       The House recedes.

                     Subtitle D--Air Force Programs


                     legislative provisions adopted

     Repeal on limitation on procurement of F-15E aircraft (sec. 
         131)
       The House bill contained a provision (sec. 141) that would 
     repeal the limitation contained in the National Defense Act 
     for Fiscal years 1990 and 1991 (Public Law 101-189).
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Modification to multiyear procurement authority for the C-17 
         aircraft program (sec. 132)
       The budget request included $2,142.8 million for 
     procurement of eight C-17 aircraft and their associated 
     support in fiscal year 1997 and for advance procurement of 
     additional C-17 aircraft in fiscal year 1998.
       The House bill contained a provision (sec. 142) that would 
     authorize the Secretary of the Air Force to enter into a 
     multiyear contract for a period of six program years for the 
     procurement of a total of not more than 80 C-17 aircraft, 
     beginning with fiscal year 1997. The House bill would also 
     authorize an increase of $380.0 million for the procurement 
     of two additional C-17 aircraft in fiscal year 1997 and for 
     advance procurement of additional C-17 aircraft.
       The Senate amendment contained a provision (sec. 131) that 
     would:
       (1) authorize the Secretary of the Air Force to enter into 
     one or more multiyear contracts for a period that may exceed 
     five years, but may not exceed seven years for the 
     procurement of not more than 80 C-17 aircraft; and
       (2) direct that any such multiyear contracts shall include 
     a termination clause that provides the Secretary of the Air 
     Force with the option to convert to annual procurement.
       The Senate amendment would also authorize an increase of 
     $194.0 million for one additional C-17 aircraft in fiscal 
     year 1997, $49.0

[[Page H9204]]

     million for advance procurement for an additional two C-17 
     aircraft in fiscal 1998, and $6.0 million for initial spares.
       The conferees agree to authorize an additional $234.0 
     million for accelerating the multiyear program. The conferees 
     support an accelerated multiyear procurement (MYP) for the 
     remaining 80 C-17 aircraft, and note that the Air Force 
     entered a seven-year MYP contract on May 31, 1996. The 
     conferees are concerned that although the Under Secretary of 
     Defense for Acquisition testified before congressional 
     defense committees of the House and Senate that over $300 
     million additional savings could be realized over those 
     currently projected by converting the current seven-year 
     contract to a six-year MYP, the Air Force has no plans to do 
     so. The conferees include a legislative provision that 
     directs the Secretary of the Air Force to negotiate an option 
     to convert the current seven-year contract to a six-year MYP 
     contract, and authorizes the Air Force to exercise this 
     option in order to accelerate procurement of C-17's and take 
     advantage of significant additional savings to the 
     government.

                       Subtitle E--Other Matters


                     legislative provisions adopted

     Assessment of modernization priorities of reserve components 
         (sec. 141)
       The Senate amendment contained a provision (sec. 141) that 
     would require the chiefs of each of the reserve components to 
     conduct an assessment of modernization priorities and report 
     to the congressional defense committees by December 1, 1996.
       The House bill contained no similar provision.
       The House recedes.
     Extension of authority to carry out Armament Retooling and 
         Manufacturing Support Initiative (sec. 143)
       The Senate amendment contained a provision (sec. 114) that 
     would extend the authority of the Department of Defense to 
     carry out the Armament Retooling and Manufacturing Support 
     Initiative through fiscal year 1998.
       The House bill contained no similar provision.
       The House recedes.


                   legislative provisions not adopted

     Seawolf submarine cost cap
       The House bill contained a provision (sec. 122) that would 
     split the procurement cost cap established by section 133 of 
     the National Defense Authorization Act for Fiscal Year 1996 
     for the Seawolf class submarines SSN-21, SSN-22, and SSN-23 
     into two separate caps, one for SSN-21 and SSN-22 and a 
     second cap associated solely with SSN-23. The House bill 
     would also repeal section 133.
       The Senate amendment contained a provision (sec. 126) that 
     would stipulate that there is a total of $745.7 million that 
     was appropriated in fiscal years 1990, 1991 and 1992 for 
     procurement of now-canceled #Seawolf! submarines that is not 
     included in the existing procurement cost cap for SSN-21, 
     SSN-22 and SSN-23.
       The conferees agree that neither of these provisions will 
     be included in the conference agreement.
     Pulse Doppler radar modification
       The House bill contained a provision (sec. 123) that, 
     subject to funds being made available in a subsequent 
     appropriations act, would direct the Secretary of the Navy to 
     spend $29.0 million from unobligated prior-year balances for 
     development and procurement of a pulse Doppler upgrade 
     modification to the AN/SPS-48E radar system.
       The Senate amendment contained a provision (sec. 127) that 
     would prohibit the use of funds appropriated for fiscal years 
     prior to fiscal year 1997 for development of a pulse Doppler 
     upgrade to the AN/SPS-48E radar system.
       The conferees agree to not include either of these 
     provisions in the conference report.
     Maritime prepositioning ship program enhancement
       The House bill contained a provision (sec. 124) that would 
     repeal the statutory authority that allows the Marine Corps 
     to purchase and convert two additional foreign-built hulls 
     for use by its maritime prepositioning force.
       The Senate amendment contained a provision (sec. 125) that 
     would reaffirm the authorization, initially provided by the 
     National Defense Authorization Act for Fiscal Year 1995, that 
     section 2218(f) of title 10, United States Code, shall not 
     apply to the purchase of three ships for the purpose of 
     enhancing Marine Corps prepositioning ship squadrons.
       The conferees agree that neither of these provisions will 
     be included in the conference report.
     Type classification of electro optic augmentation (EOA) 
         system
       The Senate amendment contained a provision (sec. 115) that 
     would require the Secretary of the Army to type classify the 
     EOA system.
       The House bill contained no similar provision.
       The Senate recedes.

         Title II--Research, Development, Test, and Evaluation

     Overview
       The budget request for fiscal year 1997 contained an 
     authorization of $34,745.7 million for Research and 
     Development in the Department of Defense. The House bill 
     would authorize $35,537.4 million. The Senate amendment would 
     authorize $38,315.7 million. The conferees recommended an 
     authorization of $37,296.6 million. Unless noted explicitly 
     in the statement of managers, all changes are made without 
     prejudice.

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     Overview
       The budget request for fiscal year 1997 contained an 
     authorization of $4,320.6 million for Army, Research and 
     Development in the Department of Defense. The House bill 
     would authorize $4,680.0 million. The Senate amendment would 
     authorize $4,680.0 million. The Senate amendment would 
     authorize $4,958.2 million. The conferees recommended an 
     authorization of $4,780.6 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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     Hardened materials
       The budget request included $9.9 million for materials 
     technology (PE 62015A).
       The conferees agree to an increase of $4.0 million in PE 
     62105A for the continued development of hardened materials as 
     discussed in the House report (H. Rept. 104-563) and the 
     Senate report (S. Rept. 104-267).
     Projectile detection and cueing (PDCue) acoustic fire finder 
         system
       The budget request included $23.6 million for sensors and 
     electronics survivability technology (PE 62120A).
       The House bill would authorize an increase of $1.0 million 
     in PE 62120A for the PDCue to detect and localize sniper 
     gunfire.
       The Senate amendment authorized the request.
       The Senate recedes.
     Solid state dye lasers
       The budget request included $20.3 million for electronics 
     and electronic device (PE 62705A).
       The House bill would authorize an increase of $5.0 million 
     in PE 62303A for continued development of the solid state dye 
     laser.
       The Senate amendment would authorize the budget request.
       The Senate recedes.
     Liquid propellant
       The budget request did not include funding for liquid 
     propellant technologies.
       The House bill would authorize an additional $5.0 million 
     in PE 62618A for liquid propellant technologies.
       The Senate amendment would authorize an additional $15.0 
     million in PE 62624A for liquid propellant technologies.
       The conferees agree to increase of $7.5 million in PE 
     62624A for a program to address material compatibility, 
     ignition and ballistic control issues, and to provide 
     operational models validated by actual testing of the liquid 
     propellant gun.
     Countermine technology development and demonstration program
       The budget request included: $4.7 million in PE 62712A for 
     exploratory development of countermine technology; $15.2 
     million in PE 63606A for advanced development of countermine 
     technologies; $16.4 million in PE 63619A for development, 
     prototyping, and demonstration of advanced countermine 
     systems; and $7.7 million in PE 63120D for the development 
     and demonstration of technologies for use in humanitarian 
     demining. The fiscal year 1997 budget request separated 
     funding for the humanitarian demining program from the Army's 
     countermine advanced technology development program where 
     countermine developments for ;military operations other than 
     war were previously managed.
       The House bill would authorize increases of $10.0 million 
     in PE 62712A, $15.0 million in PE 63606A, and $25.0 million 
     in PE 63619A for the development, demonstration, and 
     validation of near-term and far-term improvements in the 
     countermine capabilities of U.S. forces for tactical 
     countermine and demining operations. The House report (H. 
     Rept. 104-563) would direct the reassignment of humanitarian 
     demining development into a consolidated demining program. 
     The report would direct the Department of Defense to put 
     increased emphasis on developing technologies applicable to 
     both military wide-area clearance requirements and demining 
     needs and to ensure that technologies are developed and 
     shared that meet the countermine, wide-area clearance, and 
     demining needs of the combatant commanders-in-chief and the 
     interagency working group for humanitarian demining. Finally, 
     the House report would direct the Secretary of Defense to 
     develop plans for a countermine program that addresses these 
     issues and to report the plan to the Congressional defense 
     committees by March 1, 1997.
       The Senate amendment would add $12.1 million in PE 63696A 
     to accelerate the demonstration and deployment of a prototype 
     vehicular mounted mine detection system (VMMD) and an 
     additional $4.0 million to continue development of navigation 
     aids and improvements to permit detection systems to operate 
     at convoy speeds and display data in real time.
       The conferees agree to an increase of $3.0 million in PE 
     62712A for exploratory development of countermine technology, 
     an increase of $11.0 million in PE 63606A for advanced 
     development of prototype VMMD, an additional $5.1 million for 
     advanced development of ground penetrating radar technology, 
     and an increase of $10.3 million in PE 63120D for the 
     development and demonstration of technologies for use in 
     humanitarian demining.
       The conferees note the summary of the January 1996 
     Committee on National Security of the House of 
     Representatives hearing on the landmine threat facing U.S. 
     forces deploying to Bosnia and the capability of U.S. forces 
     to meet the threat that was contained in the House report (H. 
     Rept. 104-563). The conferees believe increased emphasis 
     needs to be placed on the Department's countermine program. 
     The program must address the development of feasible near-
     term improvements in contermine capabilities and the longer 
     term advanced technologies which would promise more 
     comprehensive solutions to the countermine problem. Specific 
     emphasis needs to be placed on: the development of 
     countermine technologies that can be applied to both military 
     wide-area mine clearance requirements and humanitarian 
     demining needs and will require the best efforts of the 
     military services; the Department's countermine, unexploded 
     ordnance clearance and explosive ordnance disposal research 
     and development activities; industry; and academia. The 
     conferees encourage the department to use the resources of 
     the National Research Council of the National Academy of 
     Sciences in attacking this difficult problem.
       The conferees reiterate the view expressed in the statement 
     of managers (H. Rept. 103-701) which accompanied the 
     conference report on S. 1124 (Public Law 103-337) that the 
     Department of Defense should develop a coordinated program 
     for countermine warfare. The conferees believe that the 
     actions taken by the Department with regard to integration 
     and coordination of the chemical-biological defense program 
     may provide an example of how the countermine efforts of the 
     Department could be better coordinated.
       The conferees note that, as reflected in the statement of 
     managers relating to funds for research, development, test, 
     and evaluation of humanitarian demining technologies, the 
     Assistant Secretary of Defense for Special Operations and Low 
     Intensity Conflict shall continue to administer that program. 
     The conferees direct the maximum degree of coordination among 
     all demining programs.
       The conferees direct the Secretary of Defense to develop an 
     integrated plan for a countermine program which addresses the 
     issues raised above and to report the plan to Congress by 
     March 1, 1997.
     Unexploded ordnance remediation
       The budget request included $19.5 million for environmental 
     quality technology (PE 62720A).
       The House bill would authorize an increase of $5.0 million 
     in PE 62720A for continued research, testing and analysis 
     work at the Army Environmental Center.
       The Senate amendment would authorize the budget request.
       The Senate recedes.
     Military engineering technology
       The budget request included $37.9 million in PE 62784A for 
     military engineering technology.
       The Senate amendment would authorize an additional $1.0 
     million to accelerate activities in applied research for cold 
     regions research in the Army's military engineering 
     technology program (PE 62784A).
       The House bill would authorize the budget request.
       The House recedes. The conferees agree to authorize an 
     additional $1.0 million for project AT42 in PE 62784A 
     recognizing the current needs of the Army for research into 
     construction and civil engineering to support recent and 
     unplanned operations in cold climates and winter conditions 
     in Bosnia and elsewhere.
     Trichloriomelamine (TCM)
       The budget request included $11.6 million for medical 
     advanced technology (PE 63002A).
       The House bill would authorize an increase of $500,000 in 
     PE 63002A to conduct toxicity studies of TCM disinfectant 
     that includes a 90-day feeding in a non-rodent species to 
     provide Environmental Protection Agency registration for Army 
     future procurement from TCM suppliers.
       The Senate amendment would authorize the budget request.
       The Senate recedes.
     Diesel/gas engine project
       The House bill would provide an additional $3.5 million in 
     PE 63005A for continued development and Army testing of the 
     combined diesel/gas turbine engine program.
       The Senate amendment contained no similar recommendation.
       The Senate recedes.
     Wave net technology
       The budget request included $23.1 million for command, 
     control, and communications advanced technology (PE 63006A).
       The Senate amendment would authorize an additional $4.0 
     million in PE 63006A for continued development and testing of 
     wave net technology for possible application to the Army's 
     digitization initiatives.
       The House bill would authorize the budget request.
       The House recedes.
     Starstreak
       The budget request contained no funding for continued 
     evaluation of the Starstreak missile.
       The House bill would authorize an increase of $3.0 million 
     in PE 63003A to conduct phase two testing of the starstreak 
     missile.
       The Senate amendment would authorize an increase of $15.0 
     million for the same purpose.
       The conferees agree to an increase of $14.0 million in PE 
     63003A to support Army efforts to evaluate the Starstreak 
     missile as a potential candidate for the air-to-air missile 
     system required for the Apache attack helicopter. The 
     conferees also direct that prior year funds associated with 
     the program be released immediately for obligation for this 
     purpose.
     Missile and rocket advanced technology
       The budget request included $90.0 million to develop 
     missile technologies.
       The House bill would authorize an additional $12.0 million 
     in PE 63313A to support completion of a thorough risk 
     reduction program for guidance package integration of the 
     extended range Multiple Launch Rocket System (MLRS-ER).
       The Senate amendment would authorize an additional $10.0 
     million for the same purpose.
       The House recedes.

[[Page H9213]]

       The conferees agree to authorize $100.0 million for 
     missile/rocket technologies.
     Objective Individual Combat Weapon (OICW)
       The budget request included $5.2 million to develop small 
     arms for the armed services.
       The House bill would authorize an increase of $5.0 million 
     to develop the OICW.
       The Senate amendment would support the budget request.
       The Senate recedes.
       The conferees agree to authorize $10.2 million in PE 63607A 
     to develop competing technologies, through phase III, and 
     allow the Army to downselect to a single contract for the 
     OICW at the conclusion of the review process.
     Battle integration center
       The budget request included $2.9 million in PE 63308A for 
     Army missile defense systems integration.
       The Senate amendment recommended an increase of $27.0 
     million in PE 63308A for the Army's Battle Integration Center 
     (BIC).
       The House bill did not include additional funds for BIC.
       The House recedes.
     X-ROD
       The budget request included $48.2 million for armament 
     enhancement initiatives.
       The House bill would authorize an increase of $16.5 million 
     for continued development of the X-ROD kinetic energy tank 
     round.
       The Senate amendment would support the budget request.
       The Senate recedes.
       The conferees agree to authorize $64.7 million for PE 
     63639A.
     ``Next tank'' research and development
       The budget request did not include any funding for ``next 
     tank'' research and development.
       The House bill did not address this topic.
       The Senate amendment addressed the need for the Army to 
     begin to assess future concepts and requirements for a 
     modernized force on a future battlefield.
       The House recedes.
       The conferees agree to authorize a total of $12.0 million 
     to establish a new program element to accomplish several 
     tasks: conduct on requirements analysis to establish a basis 
     for deciding what system or mix of systems supports the best 
     operational concept for defeating the evolving threat; 
     develop conceptual approaches for integrating emerging 
     technologies into a set of improvements that could be fielded 
     in a new tank or in an upgraded main battle tank program; 
     develop a set of requirements for the concepts selected by 
     this analysis; and begin virtual prototyping activities that 
     could lead to fielding a revolutionary main battle tank 
     system within 20 years.
     Tactical electronic support systems
       The budget request included $2.0 million for tactical 
     electronic support systems.
       The House bill and the Senate amendment contained an 
     increase of $2.0 million to fund integration of the work 
     completed by the Defense Advanced Research Projects Agency 
     that developed the first operational prototype of an 
     intelligence fusion system known as the Integrated 
     Battlespace Intelligence Server, or IBIS.
       The conferees agree to authorize $4.0 million for PE 63745A 
     to support technological transfer requirements.
     Intelligence data support systems
       The budget request included the following amounts for 
     intelligence support systems:

                          [Dollars in millions]                         
------------------------------------------------------------------------
               Program                     Program element       Funding
------------------------------------------------------------------------
All Source Analysis System (ASAS)....  PE 63745A..............       2.0
Joint Maritime Combat Information      PE 64231N..............      11.3
 System (JMCIS).                                                        
Intelligence Analysis System (IAS)...  PE 26313M..............       1.2
Combat Information System (CIS)......  PE 27431F..............       7.7
------------------------------------------------------------------------

       The House bill would authorize an additional $2.0 million 
     for ASAS and an additional $1.0 million each for the IAS, 
     JMCIS, and CIS in their appropriate program elements. The 
     House bill would also authorize an increase of $1.0 million 
     in PE 1160405BB for the U.S. Special Operation Command's 
     research, analysis and threat evaluation system (SOCRATES). 
     These funds would be used for improvements in 
     interoperability, improved data fusion, reduced operator work 
     load, and reduced development costs.
       The Senate amendment would authorize the budget request for 
     these programs.
       The conferees agree to authorize an increase of $2.0 
     million in PE 63745A, $1.0 million in PE 64231N, $1.0 million 
     in PE 26313M, and $1.0 million in PE 1160405BB as recommended 
     in the report accompanying the House bill (H. Rept. 104-563).
     Comanche helicopter
       The budget request included $288.6 million for continued 
     research and development work associated with the RAH-66 
     Comanche Helicopter.
       The House bill would authorize an increase of $50.0 million 
     in PE 64223A to support critical development work for this 
     aircraft.
       The Senate amendment would authorize an increase of $100.0 
     million.
       The Senate recedes.
       The conferees agree to authorize $338.6 million in PE 
     64223A for the Comanche program.
     Javelin medium anti-tank weapon
       The budget request included $1.6 million to continue 
     development work for the Javelin missile system.
       The House bill would support the budget request.
       The Senate amendment would authorize an increase of $4.5 
     million in PE 64611A to further the development of the 
     alternate main charge warhead, start baseline integration 
     tests, and evaluate the missile design to optimize warhead 
     performance.
       The House recedes.
       The conferees agree to authorize $6.1 million in PE 64611A 
     for warhead integration activities.
     Heavy assault bridge
       The budget request included $35.4 million to conduct 
     development work necessary to support engineer requirements 
     for the heavy assault bridge.
       The House bill and the Senate amendment would authorize an 
     increase of $12.3 million in PE 64649A to design heavy 
     assault bridge-unique line replaceable units and develop 
     software integration requirements.
       The conferees agree to authorize $47.7 million in PE 64649A 
     for development work associated with engineer mobility 
     equipment.
     Night vision systems-engineering development
       The budget request included $33.6 million to support night 
     vision system development work.
       The House bill would support the budget request.
       The Senate amendment would authorize an increase of $15.0 
     million in PE 64710A for research in this critical area.
       The conferees agree to authorize an increase of $2.0 
     million, the higher level of increased appropriation.
       The conferees agree to authorize $35.6 million in PE 64710A 
     for the engineering development of night vision systems.
     Brilliant Anti-armor Technology (BAT) submunition
       The budget request included $180.4 million to continue 
     equipment materiel development of the BAT system.
       The House bill would support the budget request.
       The Senate amendment would authorize an increase of $9.8 
     million in PE 64768A to complete scheduled engineering and 
     manufacturing development activities on time.
       The House recedes.
       The conferees agree to authorize $189.7 million in PE 
     64768A for BAT development activities, an increase of $9.3 
     million.
     Weapons and munitions
       The budget request included $20.5 million to conduct 
     engineering development of weapons and munitions.
       The House bill would authorize an increase of $1.6 million 
     to develop a change barrel to adapt a .50 caliber machine 
     gun, and to develop an adaptor for a MK-19 installation in an 
     Up-Armored High Mobility Multi-purpose Wheeled Vehicle.
       The Senate amendment would support the budget request.
       The conferees agree to authorize an additional $1.6 million 
     in PE 64802A to develop fire control improvements and the 
     change barrel and adaptor as described above.
     Longbow development/night vision systems
       The budget request included $5.9 million for development 
     work for the Longbow system.
       The House bill would support the budget request.
       The Senate amendment would authorize an increase of $12.0 
     million for development of night vision systems.
       The conferees agree to authorize $10.9 million, an increase 
     of $5.0 million in PE 64816A, to be distributed as follows: 
     $3.0 million for night vision system advance development; 
     $1.0 million for Apache A Kit engineering manufacture and 
     development (EMD); $1.0 million for Apache B Kit EMD.
     High Energy Laser Systems Test Facility
       The budget request included $3.0 million in PE 65605A for 
     the High Energy Laser Systems Test Facility (HELSTF).
       The Senate amendment would authorize an additional $21.7 
     million in PE 65605A for the continued operation and upgrade 
     of the facility.
       The House bill would authorize the budget request.
       The House recedes.
     Combat vehicle improvement program
       The budget request included $197.8 million to support 
     development efforts for a wide variety of combat vehicle 
     systems.
       The House bill would authorize an increase of $17.9 million 
     for this effort. Of this amount, $4.9 million would be for 
     the remanufacture of combat vehicle laser warning equipment 
     and $3.0 million for the M1A2 compact autoloader.
       The Senate amendment would authorize an increase of $10.0 
     million for high performance flat panel displays and would 
     direct that these funds assist in Horizontal Technology 
     Integration (HTI) of this technology into the M1 Abrams tank 
     and other combat platforms.
       The conferees agree to authorize an increase of $27.9 
     million. Of this amount, $4.9 million would be for the combat 
     vehicle laser warning system; $10.0 million for the flat 
     panel display technology; and $3.0 million for the M1A2 
     compact autoloader.
       The conferees agree to a total authorization of $225.7 
     million in PE 23735A.
     Under armor auxiliary power unit
       The conferees understand that the Army faces higher than 
     expected costs to integrate

[[Page H9214]]

     an under armor auxiliary power unit (APU) for the M1 tank.
       The House bill would shift $10.0 million from the M1 tank 
     modification line to PE 23735A to meet this shortfall.
       The Senate amendment did not address this issue.
       This Senate recedes.
       The conferees agree to authorize $10.0 million in PE 23735A 
     to fund fully the under armor APU integration effort.
     Improved Cargo Helicopter (ICH)
       The budget request included $0.2 million for research and 
     development of aircraft improvements.
       The House bill and the Senate amendment would authorize an 
     increase of $22.7 million for technology demonstrations and 
     risk reduction efforts for the programmatic development of 
     the ICH program.
       The conferees agree to authorize $22.9 million in PE 23744A 
     for work in improving heavy lift helicopter capabilities that 
     includes system health monitoring and vibration reduction 
     technologies.
     Force XXI digitization
       The budget request included $110.2 million for ongoing 
     efforts to digitize the 21st century Army.
       The House bill would support the budget request.
       The Senate amendment would provide an increase of $24.0 
     million to ensure a successful evaluation of Force XXI 
     technologies.
       The conferees agree to authorize $122.2 million in PE 
     23758A, an increase of $12.0 million for this effort.
     Missile/air defense product improvement program
       The budget request included $31.0 million for missile and 
     air defense improvements.
       The House bill would authorize an increase of $20.0 million 
     to the budget request.
       The Senate amendment would authorize an increase of $55.0 
     million in PE 23801A. Of this amount, $40.0 million would be 
     to complete analysis on cruise missile enhancements to the 
     Patriot PAC-1 missile and an additional $15.0 million for 
     evaluation of the Starstreak missile.
       The conferees agree to authorize $71.0 million in PE 23801A 
     to complete the Patriot cruise missile seeker assessment. The 
     Starstreak missile program is addressed elsewhere in this 
     report.
     High modulus polyacrylonitrile carbon fiber
       The budget request included $27.9 million for Industrial 
     Preparedness Activities (PE 78045A).
       The conferees agree to an increase of $8.0 million in PE 
     78045A to complete the multi-year program to develop at least 
     two domestic sources for high modulus polyacrylonitrile (PAN) 
     carbon fiber as discussed in the House report (H. Rept. 104-
     563) and the Senate report (S. Rept. 104-267). The conferees 
     direct that all applicable competitive procedures be used in 
     the award of any contracts or other agreements under this 
     program, and that cost sharing requirements for non-federal 
     participants be utilized where appropriate.
     Instrumented factory for gears (INFAC)
       The budget request included $16.8 million for Industrial 
     Preparedness (PE 78045A).
       The House bill would authorize an increase of $3.0 in PE 
     78045A for INFAC.
       The Senate amendment authorized the budget request.
       The Senate recedes.
     Force XXI initiatives
       The budget request did not include any funding for this 
     program.
       The House bill contained $100.0 million for a new program 
     element, to be established by the Army, to support the Force 
     XXI Initiatives process that will allow the Army to conduct a 
     timely evaluation of new equipment and technology.
       The Senate amendment would add $100.0 million for this 
     purpose.
       The conferees agree to authorize $75.0 million for Force 
     XXI development activities. The Army is expected to subject 
     programs with promising preliminary results to normal reviews 
     and evaluations required by law, prior to transitioning into 
     production any program tested with these funds. The conferees 
     expect the Army to budget for necessary resources in future 
     year activities.
     Overview
       The budget request for fiscal year 1997 contained an 
     authorization of $7,334.7 million for Navy, Research and 
     Development in the Department of Defense. The House bill 
     would authorize $8,190.0 million. The Senate amendment would 
     authorize $8,891.5 million. The conferees recommended an 
     authorization of $8,068.3 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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     Continuous wave superconducting radio frequency free electron 
         laser
       The budget request included $26.3 million for surface/
     aerospace surveillance and weapons technology (PE 62111N).
       The House bill and Senate amendment would authorize an 
     increase of $9.0 million in PE 62111N for the continuous wave 
     superconducting radio frequency free electron laser (FEL) 
     program.
       The conferees agree to an increase of $9.0 million in PE 
     62111N for the continuation of the FEL program as discussed 
     in the House report (H. Rept. 104-563) and the Senate report 
     (S. Rept. 104-267). The conferees understand that there will 
     be significant cost sharing between the Commonwealth of 
     Virginia and the private sector in this effort. The conferees 
     encourage the Department of Energy to build on this Navy 
     project to meet the needs of materials scientists in 
     universities and industry.
     Advanced gun systems technology program
       The budget request included $4.8 million in PE 62111N for 
     applied research in advanced gun and projectile technologies 
     in support of the naval surface fire support (NSFS) program.
       The House bill would authorize an increase of $2.8 million 
     to accelerate development of advanced miniaturized, gun-
     hardened global positioning system/inertial navigation (GPS/
     INS) guidance and control technology and development of 
     advanced technologies for next-generation gun systems.
       The Senate amendment would authorize the budget request.
       The Senate recedes.
     Rocket propulsion programs
       The House bill authorized an increase of $19.0 million for 
     rocket propulsion technology programs in PE 62111N, PE 
     63217N, PE 62601F, and PE 63302F.
       The Senate amendment contained no similar provision.
       The conferees agree to provide an increase of $19.0 million 
     as specified in the House report (H. Rept. 104-563).
     Power electronic building blocks
       The budget request included $35.6 million for surface ship 
     technology programs (PE 62121N).
       The House bill and the Senate amendment would authorize an 
     increase of $6.0 million in PE 62121N for power electronic 
     building blocks (PEBB) systems.
       The conferees agree to an increase of $6.0 million in PE 
     62121N for the continued development of PEBB technology for 
     the rapid switching and control of high power electrical 
     systems as discussed in the House report (H. Rept. 104-563  
     and the Senate report (S. Rept. 104-267). The conferees urge 
     that the increase be used for the development of virtual 
     prototyping tools that can be used to visualize and evaluate 
     the performance of new reconfigurable ship electronic power 
     systems that can survive battle damage and component 
     failures.
     Communications technology
       The budget request included $56.2 million in PE 62232N to 
     continue development of key communications technologies for 
     air, ship and submarine platforms.
       The House bill would authorize an increase of $2.0 million 
     to the budget request for support of wireless and satellite 
     communications research in the areas of integrated antenna 
     systems, communications hardware design, communications 
     algorithm development and high-frequency device modeling and 
     measurements.
       The Senate amendment would authorize the budget request.
       The Senate recedes.
     Materials, electronics and computer technology
       The budget request included $75.9 million in PE 62234N for 
     materials, electronics and computer technology.
       The House bill would authorize an increase of $1.0 million 
     in PE 62234N for composite engineered materials to address 
     the future needs of naval shore facility maintenance and 
     repair.
       The Senate amendment would authorize an increase of $5.0 
     million in PE 62234N to address new materials processes such 
     as resin transfer molding and the establishment of second 
     sources for carbon fibers and prepreg systems.
       The conferees agree to authorize an increase of $6.0 
     million for new materials processes as discussed in the House 
     report (H. Rept. 104-563) and the Senate report (S. Rept. 
     104-267).
     Undersea weapons
       The budget request included $33.9 for undersea warfare 
     weapon technology (PE 62633N).
       The House bill and the Senate amendment would authorize an 
     increase of $6.0 million in PE 62633N for development of 
     undersea weapons.
       The conferees agree to an increase of $6.0 million in PE 
     62633N for the Navy's Undersea Weapons Technology program to 
     accelerate the development and demonstration of technologies 
     applicable to a quick reaction anti-submarine/anti-torpedo 
     weapon for close-range engagements and for the protection of 
     surface ships and submarines from torpedo attack as discussed 
     in the House report (H. Rept. 104-563) and the Senate report 
     (S. Rept. 104-267).
     Maritime avionics subsystems and technology program
       The budget request included $29.3 million for advanced 
     development of air systems and weapons advanced technology 
     (PE 63217N).
       The House bill would authorize an increase of $10.0 million 
     in PE 63217N for the maritime avionics subsystems and 
     technology (MAST) program.
       The Senate amendment would authorize the budget request.
       The Senate recedes.
       In the statement of managers accompanying the conference 
     report on S. 1124 (H. Rept. 104-450), the conferees 
     authorized $10.0 million to continue the MAST program in 
     fiscal year 1996 and recommended that the Secretary of the 
     Navy consider requirements for continuation of the program in 
     future budget requests. The conferees believe that the Navy 
     science and technology program must continue to place 
     emphasis on the development of advanced avionics 
     architectures and systems. Because of the congressional 
     interest in this program and the importance of advanced 
     avionics architectures to future aircraft systems, the 
     conferees expect the Secretary of the Navy to include funding 
     for the MAST program in the fiscal year 1998 budget request.
     Mobile off-shore base
       The budget request included $9.2 million in PE 63238N to 
     continue concept development of the mobile off-shore base 
     (MOBS).
       The House bill would authorize reduction of $9.2 million in 
     the budget request.
       The Senate amendment would approve the budget request.
       The House recedes.
       The conferees note that the Secretary of Defense has not 
     reported to the congressional defense committees the plan and 
     schedule for incorporating MOBS in the Defense Acquisition 
     Board process and accomplishing a Milestone 0 review, as 
     directed in the statement of managers accompanying the 
     conference report on S. 1124 (H. Rept. 104-450).
     Project M
       The budget request included no funding Project M. a 
     technology program for the active control of machinery 
     platforms.
       In fiscal year 1996, Congress authorized and appropriated 
     $7.0 million in PE 63569E to continue the transfer of Project 
     M technology from the Defense Advanced Research Projects 
     Agency (DARPA) to the Navy. The program has been focused on 
     the demonstration of active control of machinery raft 
     structural dynamics and magnetic levitation using rafts that 
     represent future submarine engine room structures. The 
     research has been significant because it has demonstrated 
     that large scale implementation of active control for complex 
     structures is possible. Additional funding in fiscal year 
     1997 would permit realistic testing of high fidelity quarter 
     scale physical models that will provide quantitative 
     performance data and other critical information that can be 
     used to define the scope of applications for this technology 
     in future submarine or surface ship designs. There is also 
     potential for the expanded use of this technology in a broad 
     spectrum of other military, space, and commercial 
     applications where quieting of systems and subsystems is 
     important.
       The House bill would authorize an increase of $8.0 million 
     in PE 63508N to complete transition of Project M from DARPA 
     to the Navy.
       The Senate amendment would authorize an increase of $8.0 
     million above the budget request in PE 63508N for the 
     continued development of Project M.
       The conferees agree to an increase of $8.0 million above 
     the budget request in PE 63508N for the continues development 
     of Project M and to complete its transition from DARPA to the 
     Navy. The conferees also direct that the Secretary of the 
     Navy submit a report, no later than March 1, 1997, that 
     provides a detailed assessment of:
       (1) the current status of the Project M program;
       (2) the Secretary's plans for continued development of the 
     project M technology;
       (3) future milestones for the maturing of the technology;
       (4) the Navy's plan for incorporating Project M technology 
     into the design of its next generation of nuclear attack 
     submarine; and
       (5) funding included in the future years defense program to 
     satisfy this plan.
     Commandant's warfighting laboratory
       The budget request included $24.4 million in PE 63640M, 
     including $3.5 million for the Commandant of the Marine Corps 
     warfighting laboratory, ``Sea Dragon''.
       The House bill would authorize an increase of $5.0 million 
     for this initiative.
       The Senate amendment would authorize an increase of $40.0 
     in PE 65873M, Marine Corps Program-wide Support, for 
     technology supporting experiments in ``Hunter Warrior'', the 
     first advanced warfighting experiment being conducted by the 
     Commandant's warfighting laboratory, and to support 
     technology enhancements for follow-on limited objective 
     experiments in fiscal year 1997.
       The conferees agree to authorize an increase of $40.0 
     million in PE 63640M for support of the Commandant's 
     warfighting laboratory. The conferees agree that the Marine 
     Corps should budget for continuation of this initiative in 
     future budget requests. The conferees also agree with the 
     view expressed in the Senate report (S. Rept. 104-267) that 
     continued support for the Marine Corps ``Sea Dragon'' process 
     will be based on the demonstrated ability of the Marine Corps 
     to budget adequately for the rapid fielding of new 
     technologies supported by the results of the Sea Dragon 
     experiments.

[[Page H9221]]

     Tactical fiber optic communications
       The House bill would authorize an increase of $1.75 million 
     in PE 63640M for the Navy and the Marine Corps to exploit 
     commercial advances in lightweight fiber optics for 
     communications purposes and to demonstrate the use of 
     lightweight tactical fiber optics for communications in a 
     littoral scenario.
       The Senate amendment would authorize the requested amount.
       The House recedes.
     Medical mobile monitor
       The budget request included $37.3 million for medical 
     development programs (PE 63706N).
       The House bill would authorize an increase of $4.0 million 
     in PE 63706N for the development of a medical mobile monitor 
     to assist physicians and other medical personnel in the 
     diagnosis and treatment of injuries and illness, and has the 
     capability to interface with portable personal computers.
       The Senate amendment would authorize the budget request.
       The Senate recedes.
     Smart base
       The budget request included $20.0 million for the Navy's 
     Environmental Quality and Logistics program (PE 63712N).
       The Senate amendment would authorize an increase of $25.0 
     million in PE63712N for the Smart Base technology 
     demonstration.
       The House bill would authorize the budget request.
       The House recedes. The conferees agree to an increase of 
     $25.0 million in PE 63712N for the Smart Base technology 
     demonstration. In executing the program, the conferees 
     instruct the Department of the Navy to minimize costs by 
     seeking cost sharing partnerships with other Federal 
     agencies, and state and local governments, as well as 
     commercial activities.
     Littoral warfare advanced technology demonstration
       The budget request included $43.6 million in PE 63747N for 
     undersea warfare advanced technology development.
       The House bill would authorize an increase of $10.0 million 
     to the budget request for at-sea demonstration and evaluation 
     of broad band, low low frequency active (LLFA) acoustic 
     technology for the detection of quiet, slow moving submarines 
     in the widely variable environment of the world's littoral 
     regions.
       The Senate bill would authorize the requested amount.
       The House recedes. The conferees direct the Secretary of 
     the Navy to report to the Congress on the Navy's intentions 
     with regard to further development and exploitation of LLFA 
     acoustic technology with the submission of the Navy's fiscal 
     year 1998 budget request.
     Undersea weapons advanced technology demonstration
       The budget request included $2.8 million for project R2267 
     in PE 63747N. This project develops and demonstrates advanced 
     undersea weapons component prototypes for insertion into 
     current undersea weapons to upgrade their capabilities.
       The House bill and the Senate amendment would authorize an 
     increase of $5.0 million in PE 63747N for development and 
     demonstration of advanced technology prototype improvements 
     to current undersea weapons systems, including environmental 
     emissions compliant alternative torpedo fuels and advanced 
     broadband homing system technologies and software algorithms 
     to improve the countermeasure resistance of U.S. undersea 
     weapons.
       The conferees agree to an increase of $5.0 million in PE 
     63747N.
     Shallow water mine countermeasures
       The budget request included $42.8 million in PE 63782N for 
     development and demonstration of mine countermeasures 
     advanced technology, including $6.4 million for continued 
     development of the advanced lightweight influence sweep 
     system (ALISS).
       The House bill would authorize an increase of $5.0 million 
     in PE 63782N to complete development, fabrication and testing 
     of the full-scale superconducting magnet that is one of the 
     two major subsystems of the ALISS.
       The Senate amendment would authorize an increase of $3.0 
     million in PE 63782N for completion of the science and 
     technology demonstration program for the beach zone array 
     subsystem of the explosive neutralization program.
       The conferees agree to authorize the requested amount.
       The conferees recommend that the Navy include funding in 
     future budget requests to complete advanced technology 
     development and demonstration of the ALISS, as recommended in 
     the House report (H. Rept. 104-563), and to complete the 
     science and technology demonstration program for the beach 
     zone array subsystem of the explosive neutralization program, 
     as recommended in the Senate report (S. Rept. 104-267).
     Advanced technology transition
       The budget request included $104.4 million in PE 63792N for 
     the Navy's Advanced Technology Transition program to 
     demonstrate high-risk/high payoff technologies that could 
     significantly improve the warfighting capabilities of the 
     fleet and joint forces.
       The House bill would authorize a decrease of $20.0 million 
     from the budget request in PE 63792N. The House report (H. 
     Rept. 104-563) commended the leadership of the Navy's science 
     and technology community for the advanced technology 
     transition initiative and the potential that it presents for 
     accelerating the application of technology base solutions to 
     fleet and joint warfighting requirements. However, the House 
     report also included reservations about the growth in funding 
     for the program and the increase in the number of projects 
     encompassed by it that have occurred since fiscal year 1995. 
     The House report expressed the view that the program needs to 
     be highly selective and sharply focused on a relatively 
     limited number of projects that are aimed at solutions to 
     some of the Navy's most critical problems.
       The Senate amendment would authorize the requested amount.
       The Senate recedes.
     Research for advanced submarine technology
       The budget request included $19.1 million in PE 63504N for 
     advanced submarine combat systems development and $26.4 
     million in PE 63561N for advanced submarine system 
     development, but no funding in PE 63508N for advanced 
     submarine technology.
       Both the House bill and the Senate amendment were 
     influenced by a report, Report on Nuclear Attack Submarine 
     Procurement and Submarine Technology, submitted to Congress 
     by the Secretary of Defense on March 26, 1996 in compliance 
     with section 131 of the National Defense Authorization Act 
     for Fiscal Year 1996. This report reflected recommendations 
     of a submarine technology assessment panel, also known as the 
     Baciocco Panel, that was commissioned by the Secretary of the 
     Navy to provide an independent evaluation of available and 
     future submarine technologies and an assessment of their 
     feasibility, cost, and potential benefits or drawbacks with 
     respect to their incorporation into a new submarine platform.
       The House bill would authorize an increase of $208.0 
     million for advanced submarine technologies. The House report 
     (H. Rept. 104-563) provides detailed direction on how this 
     authorization would be distributed.
       The House bill would authorize an increase of $18.0 million 
     in PE 63508N for applied research and exploratory development 
     in advanced submarine concepts, including Baciocco Panel 
     recommendations, and for transition of advanced ship and 
     submarine technologies developed under the Defense Advanced 
     Research Projects Agency (DARPA). Of the additional amount 
     provided in PE 63508N, $8.0 million would be to complete the 
     transfer to the Navy of the technology for actively 
     controlled machinery platforms demonstrated in DARPA Project 
     ``M''.
       The House bill would authorize an increase of $60.0 million 
     to the budget request for demonstration and validation of 
     core technologies identified in the Secretary of Defense's 
     report, including improved acoustic sensors and processing, 
     hydrodynamics, structural acoustics (including active 
     controls and mounts), and propulsors (including integrated 
     stern and electric drive), which would be distributed as 
     follows:
                                                            In millions
PE 63504N, Advanced Submarine Combat Systems Development:
  Advanced Acoustic Sensors.......................................$10.0
  Advanced Acoustic Signal Processing..............................10.0
PE 63561N, Advanced Submarine Systems Development:
  Hydrodynamics.....................................................5.0
  Structural Acoustics.............................................15.0
  Propulsors.......................................................20.0

       The House bill would direct that, of the $60.0 million 
     increase, a total of $20.0 million would be equally divided 
     between the two submarine shipbuilders, Electric Boat 
     Division and Newport News Shipbuilding, for the purpose of 
     ensuring that these shipbuilders are principal participants 
     in the process of including new technologies into the design 
     and construction of the submarines built at their respective 
     shipyards. The House report (H. Rept. 104-563) would direct 
     the Secretary of the Navy to ensure that those shipbuilders 
     have access for such purposes to the Navy laboratories and 
     the Office of Naval Intelligence.
       The House bill would authorize an increase of $38.0 million 
     to the budget request for demonstration and validation of the 
     Category I and Category II technologies described in the 
     Secretary's report as follows:
       (1) PE 63504N: $19.0 million for demonstration and 
     validation of passive ranging/target motion analysis, large 
     aperture processing, matched environmental processing, total 
     ship monitoring system improvements, near-term multi-line 
     towed array, high gain multi-line towed array, lightweight 
     wide aperture array fiber optics, and high gain hull array; 
     and
       (2) PE 63561N: $19.0 million for demonstration and 
     validation of electro-mechanical/electro-hydraulic actuators, 
     advanced welding processes, power electronic building blocks, 
     advanced propulsor fabrication, advanced hybrid propulsors, 
     advanced coatings, rim driven motors, and elastomeric 
     ejection system.
       The House bill would authorize an increase of $50.0 million 
     in PE 63563N to initiate the design of new, next-generation 
     nuclear attack submarines. The $50.0 million would be equally 
     divided between the two shipbuilders for this purpose. The 
     design effort would proceed in parallel with the construction 
     of four developmental submarines so that these two original 
     designs would be ready to compete for serial production in 
     fiscal year 2003.
       The House bill would authorize an increase of $40.0 million 
     in PE 64558N to produce design improvements for four 
     developmental

[[Page H9222]]

     submarines that would be built at Electric Boat Division and 
     Newport News Shipbuilding as a consequence of section 131 of 
     the National Defense Authorization Act for Fiscal Year 1996. 
     The $40.0 million would be equally divided between the two 
     shipbuilders. Each shipbuilder would be allowed to propose to 
     the Secretary of the Navy any design improvement that the 
     shipbuilder considers appropriate for the submarines being 
     built by that shipbuilder.
       The House bill would authorize an increase of $2.0 million 
     in PE 14224N for further development and evaluation of wake 
     trial sensors.
       The Senate amendment would authorize a total increase of 
     $100.0 million for advanced submarine technology initiatives 
     identified in the Secretary of Defense's report. This 
     increase would be distributed as follows:
       (1) $60.0 million for development of core technologies, 
     including $20.0 million in PE 63504N and $40.0 million in PE 
     63561N; and
       (2) $40.0 million for development of the Category I and 
     Category II technologies identified in the Secretary of 
     Defense's report, including $20.0 million in PE 63504N and 
     $20.0 million in PE 63561N.
       The Senate report (S. Rept. 104-267) would direct the Navy 
     to use these funds to carry out the high priority development 
     efforts identified in the Secretary of Defense's report to 
     Congress, emphasizing advanced hydrodynamic and hydroacoustic 
     research, using advanced modeling that is validated, when 
     appropriate, by the use of large scale models before 
     insertion into the final design. The Senate report would also 
     emphasize that the authorized increase would be for 
     developing new technologies, not for the purpose of resolving 
     funding shortfalls in existing programs or for improving 
     combat systems or sensors on older submarines.
       The conferees agree to authorize an increase of $8.0 
     million in PE 63508N for Project ``M''. This authorization is 
     discussed in more detail elsewhere in this statement of 
     managers.
       The conferees also agree to an increase of $60.0 million 
     for demonstration and validation of core technologies 
     identified in the Secretary of Defense's report, including 
     improved acoustic sensors and processing, hydrodynamics, 
     structural acoustics (including active controls and mount), 
     and propulsors (including integrated stern and electric 
     drive). This increase will be distributed as follows:

                        [In millions of dollars]

PE 63504N, Advanced Submarine Combat Systems Development:
  Advanced Acoustic Sensors........................................10.0
  Advanced Acoustic Signal Processing..............................10.0
PE 63561N, Advanced Submarine Systems Development:
  Hydrodynamics.....................................................5.0
  Structural Acoustics.............................................15.0
  Propulsors.......................................................20.0

       The conferees direct that, of the $60.0 million increase, a 
     total of $20.0 million will be equally divided between the 
     two submarine shipbuilders, Electric Boat Division and 
     Newport News Shipbuilding, for the purpose of ensuring that 
     these shipbuilders are principal participants in the process 
     of including new technologies into the design and 
     construction of the submarines built at their respective 
     shipyards. The conferees further direct the Secretary of the 
     Navy to ensure that those shipbuilders have access for such 
     purpose to the Navy laboratories and the Office of Naval 
     Intelligence.
       The conferees also authorize a further increase of $38.0 
     million to the budget request for demonstration and 
     validation of the Category I and Category II technologies 
     described in the Secretary's report. The recommended increase 
     will be distributed as follows:
       (1) PE 63504N: $19.0 million for demonstration and 
     validation of passive ranging/target motion analysis, large 
     aperture processing, matched environmental processing, total 
     ship monitoring system improvements, near-term multi-line 
     towed array, high gain multi-line towed array, lightweight 
     wide aperture array fiber optics, and high gain hull array; 
     and
       (2) PE 63561N: $19.0 million for demonstration and 
     validation of electro-mechanical/electro-hydraulic actuators, 
     advanced welding processes, power electronic building blocks, 
     advanced propulsor fabrication, advanced hybrid propulsors, 
     advanced coatings, rim driven motors, and elastomeric 
     ejection system.
     Submarine towed array processing software
       The budget request included $19.1 million in PE 63504N for 
     advanced submarine combat systems development.
       The Senate amendment would authorize an increase of $8.0 
     million in PE 63504N to improve the overall performance of 
     both sonar and combat control systems by the improvement of 
     their ASW acoustic processing.
       The House bill would authorize the requested amount.
       The Senate recedes.
     Aircraft carrier research and development
       The budget request included $12.7 million in PE 63512N for 
     carrier systems development, including $8.3 million for 
     development and demonstration of technologies that may be 
     used in the future aircraft carrier (CVX-78) now planned to 
     begin construction contract award in fiscal year 2006.
       To accelerate development and demonstration of technologies 
     for the CVX-78 and to establish a more reasonable ramp to 
     ship design, component development, and the production 
     decision for the CVX-78, the House bill would authorize an 
     increase of $23.0 million to the budget request in PE 63512N. 
     The House report (H. Rept. 104-563) indicated these funds 
     would be used for development of technologies for advanced 
     aircraft launch systems, advanced armor concepts, integrated 
     topside design, initial computing plant systems architecture 
     analysis, and development of advanced modeling and 
     simulation.
       The Senate amendment would authorize an increase of $52.0 
     million above the budget request in PE 63512N for aircraft 
     carrier research and development.
       The Senate recedes.
     Navy surface combatant
       The budget request included $12.9 million in PE 63564N for 
     ship preliminary design and feasibility studies.
       The Senate amendment would authorize an increase of $25.0 
     milllion in PE 63564N to increase funding for development of 
     the Navy's next generation of surface combatant, the SC-21, 
     to provide a level of funding that could lead to an orderly 
     development and transition to procurement after the turn of 
     the century.
       The House bill would authorize the requested amount.
       The Senate recedes.
     Advanced surface machinery program--intercooled recuperated 
         engine
       The budget request included $59.8 million in PE 63573N for 
     the advanced surface machinery program, including $34.1 
     million to continue advanced development of the intercooled 
     recuperated (ICR) gas turbine engine. The ICR will be the 
     propulsion engine for the SC-21 next generation surface 
     combatant. Current plans call for introduction of the ICR 
     into the fleet as the propulsion system for future DDG-51 
     class ships. The ICR promises 30 percent propulsion fuel 
     savings compared to the current Navy gas turbine, increased 
     range, and environmental emissions compliance. The engine is 
     also being considered as the propulsion system for the multi-
     national European ``Horizon'' frigate. The ``Horizon'' 
     program is a collaborative effort among U.S., British, and 
     French navies.
       The ICR has been in advanced development since December 
     1991, and is now undergoing development full scale system 
     testing at Pyestock, England. Tests to date confirm engine 
     design predictions and the 30 percent fuel savings benefits 
     of recuperation. During the engine tests in early 1995, the 
     recuperator developed air leaks which required its removal 
     and return to the manufacturer. Intensive investigation 
     revealed both design flaws and manufacturing process 
     problems. A recuperator recovery plan was instituted by the 
     management team and full scale engine tests resumed in 
     January 1996, using a redesigned recuperator. A second test 
     site is to be established at the Navy's Ship Systems Land 
     Based Engineering Site (LBES) to support ICR engine endurance 
     and qualification testing, integration of the ICR engine into 
     the DDG-51, and integrated power system development for the 
     SC-21.
       The House bill would authorize an increase of $12.5 million 
     to the budget request to complete preparations for supporting 
     ICR engine endurance and qualification tests at the LBES. The 
     House report (H. Rept. 104-563) expressed concern that the 
     Navy's decision to proceed with the 500 hour endurance test 
     and the final 1000 hour qualification test at the LBES is not 
     supported by adequate funding, and directed the Secretary of 
     the Navy to ensure that these funds are included in the 
     fiscal year 1998 budget request. The House report would also 
     direct the Navy to obligate no more than 25 percent of the 
     fiscal year 1997 funds until the Secretary of the Navy 
     reviews the results of the developmental testing and progress 
     in resolving the recuperator problem and reports the results 
     of this review, not later than December 31, 1996, to the 
     congressional defense committees.
       The Senate amendment would authorize an increase of $19.0 
     million to the budget request in PE 63573N for the ICR 
     engine. Of this amount:
       (1) $12.5 million would be to establish an ICR test 
     facility at the Navy's existing land-based test site; and
       (2) $6.5 million would be for at-sea testing of the ICR 
     engine.
       The Senate recedes.
     Insensitive munitions
       The budget request included $7.3 million in PE 63609N for 
     insensitive munitions advanced development.
       The House bill would authorize an additional $3.0 million 
     to ensure adequate funding is available for the program.
       The Senate amendment would authorize the budget request.
       The conferees agree to increase the budget request by $3.0 
     million for insensitive munitions advanced development.
     Lightweight 155MM howitzer program
       The budget request included $44.9 million in PE 63635M for 
     Marine Corps ground combat and support systems.
       The House bill would authorize the requested amount.
       The Senate amendment would authorize an increase of $4.0 
     million in PE 63635M to incorporate new technologies into the 
     Marine Corps lightweight 155mm howitzer and its associated 
     training devices.
       The Senate recedes.
     Cooperative engagement capability
       The budget request included $164.5 million in PE 63755N and 
     $9.9 million in PE 24152N for

[[Page H9223]]

     continued development of the Navy's cooperative engagement 
     capability (CEC). Funding provided by the budget request 
     would focus on the development of shipboard and airborne 
     cooperative engagement systems (CES), initial operational 
     test and evaluation of shipboard CES, and development of 
     organic integrated logistic support for the CES.
       CEC is designed to enhance the warfighting capabilities of 
     ships and aircraft by combining the data derived from various 
     sensors into a single common representation that is available 
     with the same positional accuracy to all participating ships. 
     The Navy reports that a challenging cruise missile defense 
     exercise, Mountain Top, which relied heavily on CEC position 
     information, was held earlier this year in Hawaii. The 
     exercise involved over-the-horizon detection, tracking, and 
     engagement of a variety of difficult targets. The Navy 
     currently projects that initial operational capability of the 
     system will be achieved by September 1996. During testimony 
     at this year's defense posture hearing, the Secretary of 
     Defense singled out CEC as a program of high priority that he 
     chose to accelerate because of its great potential for 
     linking units from more than one service together and greatly 
     increasing their warfighting ability.
       Despite relatively robust funding for CEC in this year's 
     budget request, it contains no funding to pursue joint 
     service integration efforts that were begun last year. 
     Successful consummation of these efforts, in consonance with 
     the Navy's baseline program, could greatly leverage the 
     capability of the services to conduct joint operations and 
     provide ballistic missile defense. Another area not addressed 
     by the budget request, an issue raised in committee hearings 
     this year, is reported interference between CEC and other 
     data links currently in use in the fleet.
       The House bill would authorize an increase of $17.0 million 
     in PE 63755N for the CEC program and urge the continued 
     acceleration and expansion of joint service integration 
     efforts, including application to the Airborne Warning and 
     Control Systems (AWACS) aircraft, Patriot and Theater High 
     Altitude Area Defense (THAAD) missile systems, Marine Corps 
     TPS-59 radar and the HAWK missile system.
       The Senate amendment would authorize an increase of $63.0 
     million above the budget request for CEC in PE 63755N to 
     permit continued pursuit of a number of promising efforts, 
     including CEC integration with AWACS and national sensors, to 
     accelerate development of an airborne capability for the 
     system, and to address the issue of CEC interference with 
     other fleet data links, particularly the link installed on 
     the SH-60B.
       The conferees agree to an increase of $35.0 million in PE 
     53755N for the CEC program and urge the continued 
     acceleration and expansion of joint service integration 
     efforts, including application to AWACS aircraft, Patriot and 
     THAAD missile systems, Marine Corps TPS-59 radar and the HAWK 
     missile system. The conferees also direct the Secretary of 
     the Navy to prepare a detailed report, for submission no 
     later than March 15, 1997, on:
       (1) progress made in resolving the issue of spectrum 
     interference as a result of the reallocation under title VI 
     of the Omnibus Reconciliation Act of 1993 of the spectrum in 
     which CEC operates; and
       (2) steps that the Secretary has taken to address and 
     resolve harmful interference between CEC and other fleet 
     weapons systems and data links.
     Strike missile evaluation
       The budget request did not include funding for evaluation 
     of a variant of the Navy's Standard missile for use by Navy 
     ships to conduct long-range strike.
       The Senate amendment would authorize an increase of $24.0 
     million above the budget request in PE 63795N to evaluate the 
     potential of the Standard missile to satisfy long-range 
     strike and supersonic sea-skimming target requirements.
       The House bill would not authorize an increase for this 
     purpose in PE 63795N.
       The Senate recedes.
     Naval surface fire support program
       The budget request included $42.2 million in PE 63795N for 
     gun weapons system technology. Of this amount, $20.2 million 
     is for the continued development of a 5-inch extended range 
     guided munition (ERGM) round. The Navy is developing this 
     round to address a gap in its ability to provide accurate 
     naval surface fire support (NSFS) during an amphibious 
     assault at the ranges dictated by current requirements. Of 
     the $20.2 million, no funds have been budgeted for risk 
     mitigation in the development of a GPS/INS guidance unit for 
     the projectile, the component judged to have the greatest 
     technical risk.
       The House bill would not authorize an increase of $5.0 
     million to the budget request to build on the Navy's guidance 
     risk reduction program; accelerate development and 
     qualification of micro-electro-mechanical systems (MEMS)-
     based, low cost global positioning system/inertial navigation 
     system (GPS/INS) guidance and control technology; and ensure 
     the availability of that technology for the Navy's 5-inch 
     ERGM production program and for other guided munitions, 
     rocket, and missile programs.
       The Senate amendment would authorize an increase of $3.0 
     million to the budget request in PE 63795N for risk 
     mitigation in development of the 5-inch ERGM.
       The Senate recedes.
       The conferees agree to an increase of $5.0 million in PE 
     63795N for risk mitigation in development of the Navy's 5-
     inch ERGM and acceleration of the development of MEMS-based 
     GPS/INS guidance and control technology for the ERGM 
     projectile. Consistent with direction provided in the 
     National Defense Authorization Act for Fiscal Year 1996, the 
     conferees also agree to authorize an increase of $0.4 million 
     above the budget request to support the retention of two Iowa 
     class battleships on the naval register in an inactive status 
     until the Navy is able to replace their potential NSFS 
     capability.
     Light airborne multi-purpose system helicopter program
       The budget request included $40.1 million in PE 64212N for 
     helicopter development.
       Among the programs funded by PE 64212N is the Navy program 
     to convert its existing fleet of light airborne multi-purpose 
     system (LAMPS) helicopters from the SH-60B configuration to 
     the SH-60R configuration. It is planned that other Navy H-60 
     series helicopters, such as the HH-60, a search and rescue 
     variant, and the SH-60F, an ASW variant with a dipping sonar, 
     will also eventually be converted to the SH-60R 
     configuration. However, the Navy's helicopter master plan, 
     under which these conversions are included, has been in a 
     constant state of flux for at least the past two years and, 
     in the conferees' opinion, has lacked the focus needed to 
     properly compete for resources as the defense budget, 
     particularly the acquisition portion, has declined in recent 
     years.
       The conferees are aware that the LAMPS SH-60B to SH-60R 
     development program is short of resources. Since fiscal year 
     1995, it has gone through requirements restructuring, 
     contractual rebaselining, efforts at cost reduction through 
     acquisition reform initiatives, contractor investment, and an 
     increasing contractor inventory of accrued cost that has not 
     been paid. While the Navy and contractor teams have 
     maintained technical progress towards the planned fiscal year 
     2001 initial operational capability (IOC) date, the funding 
     level contained in the fiscal year 1997 budget request would 
     be insufficient to sustain this effort. Because the program 
     was originally structured to permit conversion to the SH-60R 
     configuration to occur during scheduled depot maintenance or 
     service life extension overhauls, the delay in program 
     development that would result from the fiscal year 1997 
     budget request would likely also cause a substantial increase 
     in conversion costs and might render the program 
     unaffordable.
       The Senate amendment would authorize an increase of $6.8 
     million in PE 64212N to restore funds that were removed from 
     the SH-60R development program during preparation of the 
     fiscal year 1997 budget request. This additional funding 
     would permit a critical design review to occur in fiscal year 
     1997 and maintain the program's progress toward a fiscal year 
     2001 IOC. The Senate amendment would also authorize an 
     increase of $10.0 million for the procurement of additional 
     SH-60B upgrade kits to replace funds that were removed from 
     the program during fiscal year 1996 to pay for F-14 digital 
     flight control improvements.
       The House bill would authorize the request amount.
       The conferees agree to authorize an increase of $6.8 
     million in PE 64212N for the SH-60R development program. An 
     increase of $10.0 million for the procurement of additional 
     SH-60B upgrade kits is not authorized.
     Vertical replenishment helicopter replacement program
       The budget request included no funding to initiate 
     procurement of a helicopter to replace the Navy's 
     increasingly costly and aging CH-46 vertical replenishment 
     (VERTREP) helicopter.
       To address this problem, the Senate amendment would 
     authorize an increase of $10.0 million above the budget 
     request to take advantage of excess components available from 
     the Army and initiate a VERTREP helicopter replacement 
     program in fiscal year 1997.
       The House bill would authorize the requested amount.
       The conferees agree that development of a replacement 
     VERTREP helicopter would be better pursued as a research and 
     development program and authorize an increase of $10.0 
     million in PE 64212N for this purpose.
     Helicopter ground proximity warning systems
       The budget request included $24.7 million in PE 64215N for 
     engineering and manufacturing systems development of joint 
     service and Navy standard avionics components and subsystems.
       Recognizing that the Navy and the Marine Corps have a 
     requirement for a ground proximity warning system, the House 
     bill would authorize an increase of $2.4 million in PE 64215N 
     to continue development of the helicopter ground proximity 
     warning system (GPWS) in anticipation of its fielding on Navy 
     and Marine heavy and medium lift helicopters.
       The Senate amendment would authorize the requested amount.
       The Senate recedes.
     Joint Maritime Combat Information System (JMCIS)
       The budget request included $11.3 million in PE 64231N for 
     the Navy tactical command system afloat (NTCS-A) component of 
     the joint maritime command information system (JMCIS).
       The House bill would authorize an increase to the budget 
     request of $14.5 million as follows:

[[Page H9224]]

       (1) an additional $1.0 million in PE 64231N to explore and 
     initiate efforts to improve interoperability between JMCIS 
     and the other service intelligence support terminals;
       (2) an additional $2.0 million in PE 64231N for 
     proliferating the RADIANT MERCURY automated multi-level 
     security sanitizer;
       (3) an increase of $1.5 million in PE 64231N for 
     development of an integrated two-way Link 16 processing 
     capability for the JMCIS software; and
       (4) an additional $10.0 million in a new program element, 
     PE 64770N, for integrating a capability for the U.S. Navy to 
     receive, process, and utilize the joint surveillance target 
     attack radar system (JSTARS) moving target indicator (MTI) 
     synthetic aperture radar (SAR) system data.
       The Senate amendment would authorize an additional $23.0 
     million above the budget request to:
       (1) develop an integrated two-way Link 16 processing 
     capability in JMCIS software;
       (2) incorporate the Air Force's contingency theater 
     automated planning system (CTAPS) into JMCIS;
       (3) develop an upgrade to permit data exchange between 
     JSTARS and the Navy's afloat planning system (APS);
       (4) field the RADIANT MERCURY automated multi-level 
     security sanitizer; and
       (5) develop the tools and architecture that will allow 
     users to selectively request, filter, and process supporting 
     databases.
     Of the $23.0 million, $19.5 million would be for research and 
     development in PE 64231N and $3.5 million would be for 
     procurement.
       The conferees agree to authorize an additional $13.0 
     million above the budget request in PE 64231N as follows:
       (1) $1.0 million for coordinating JMCIS functional 
     capabilities with the other service intelligence terminals;
       (2) $2.0 million for fielding RADIANT MERCURY;
       (3) $1.5 million for two-way Link 16; and
       (4) $8.5 million for receiving and exploiting the JSTARS 
     MTI capabilities.
       The conferees also agree to authorize an increase of $3.5 
     million of procurement funding to accomplish these 
     objectives.
     CV-22 special operations tiltrotor aircraft
       The budget request included $576.8 million in PE 64262N for 
     development of the V-22 tiltrotor aircraft to meet the medium 
     lift amphibious/vertical lift needs of the Marine Corps (MV-
     22) and the special operations needs (CV-22) of the Special 
     Operations Command (SOCOM). The Navy and the SOCOM 
     acquisition executives reached agreement on a program that 
     will develop an aircraft capable of meeting the SOCOM's needs 
     for the CV-22. This program provides for remanufacture of a 
     MV-22 test aircraft to CV-22 standards for test and 
     evaluation, rather than providing a new aircraft off the 
     production line.
       The House bill would authorize an additional $37.0 million 
     to procure a new aircraft to support testing and evaluation 
     of the CV-22, notwithstanding the agreement between the 
     Department of the Navy and SOCOM acquisition executives. The 
     House report (H. Rept. 104-563) expressed the opinion that 
     the remanufacturing alternative would represent a significant 
     challenge for the program office to complete the CV-22 
     program with the desired capabilities by the date of the 
     required special operations initial operational capability 
     (IOC). The report expressed the opinion that the agreed plan 
     would pose an unacceptable risk to CV-22 program. The report 
     indicated that the House expected the Secretary of the Navy 
     to include the total of $47.0 million required to complete 
     the CV-22 test and evaluation aircraft in the Navy's budget 
     requests for fiscal years 1998 and 1999.
       The Senate amendment would authorize an additional $20.0 
     million for funding for risk mitigation during the first year 
     of low rate initial production. The Senate report (S. Rept. 
     104-267) noted that the program agreed upon by the Navy and 
     SOCOM acquisition executives would be predicated on 
     remanufacture of an MV-22 aircraft for CV-22 test and 
     evaluation, and would represent compliance with all key 
     performance parameters and most of the threshold requirements 
     defined in the joint operational requirements document 
     (JORD). The report noted that using a remanufactured MV-22 
     flight test article would represent an innovative, cost-
     effective solution to the problem of living within the 
     program's resources. The report also noted that the 
     remanufacturing approach represents a challenge for the 
     program office to complete the CV-22 program with the agreed-
     on capabilities on or before the required IOC in 2005. The 
     report also noted that the Senate expected the joint program 
     office to release aircraft number nine back to the contractor 
     for remanufacture by August 1, 1999. Should additional 
     testing for the MV-22 program be necessary, the program 
     manager would be required to develop and implement the 
     necessary options to complete MV-22 testing without the use 
     of aircraft number nine after August 1, 1999.
       The conferees understand that, notwithstanding the 
     agreement that the SOCOM acquisition executive signed, the 
     SOCOM would prefer to have a new, rather than a 
     remanufactured aircraft to conduct CV-22 testing. The SOCOM 
     has expressed concern that meeting the established IOC of 
     having 15 aircraft available in fiscal year 2005 is at risk. 
     The conferees also understand that the SOCOM has reservations 
     about accepting an aircraft for the remanufacture program 
     that could have upwards of 200 hours of flight time, based on 
     previous experience with the MH-47 program.
       The conferees observe that there are some similarities and 
     some differences between the schedules for the buying and 
     remanufacturing approaches;
       (1) The schedule laid out by the Department indicates that 
     the program preferred by the SOCOM would involve building an 
     MV-22 aircraft that would later be converted to CV-22 
     configuration. Building a CV-22 aircraft, when the CV-22 is 
     itself in development, now would involve too much 
     concurrency.
       (2) This MV-22 aircraft would be inducted into a CV-22 
     conversion program at the same time that an existing test 
     aircraft would enter a remanufacturing program to turn it 
     into a CV-22 test aircraft. According to the current 
     schedule, both programs would deliver a CV-22 aircraft for 
     testing in May, 2000.
       (2) Buying a new dedicated test aircraft would reduce 
     schedule risk. Should something happen to one of the test 
     aircraft during MV-22 testing, the whole testing program and 
     making one of the test aircraft available for remanufacturing 
     could be delayed.
       The conferees note that such schedule risk could be 
     mitigated by the fact that this bill would add two production 
     MV-22 aircraft that could be made available in lieu of 
     providing a test aircraft for remanufacture. However, having 
     an extra test aircraft available over the life of the MV/CV-
     22 program would ease the problems of testing schedules.
       The conferees agree to provide an additional $37.0 million, 
     with $27.0 million for the new MV-22 aircraft that would be 
     converted to CV-22 configuration later, and $10.0 million 
     provided only for mitigating technical risk in the overall V-
     22 program.
       The conferees have agreed to support the extra dedicated 
     test aircraft because of SOCOM's view that this aircraft is 
     the Command's number one unfunded priority. The conferees are 
     willing to defer to the SOCOM in this case, with the 
     understanding that the SOCOM will budget for the additional 
     funds, beyond those now included in the program plan for 
     remanufacture of an MV-22 to the CV-22 configuration, for: 
     (1) the rest of the costs of the new aircraft; and (2) any 
     CV-22-unique risk mitigation effort that SOCOM views as 
     important. The conferees expect that these funds would be 
     transferred from SOCOM to the Navy acquisition executive 
     during the years of execution.
     Precision targeting and location system
       The budget request included $78.7 million in PE 64270N for 
     electronic warfare engineering and manufacturing development.
       The House bill would authorize an additional $3.5 million 
     for development and demonstration in a flyable prototype of 
     currently available technology capable of rapid, precision 
     location of sources of global positioning system collateral 
     interference and intentional jamming in order to assess the 
     technical feasibility and utility of such a targeting system 
     on operational aircraft and unmanned aerial vehicles.
       The Senate amendment did not include a specific 
     authorization for such a precision targeting and location 
     system development and demonstration program.
       The Senate recedes.
     Smart Ship initiative
       The budget request included no funding for the Navy's Smart 
     Ship initiative. This initiative, developed too late for 
     inclusion in the budget request, will be managed at fleet 
     level and is designed to demonstrate that crew workload for a 
     surface combatant ship can be reduced via technology and 
     changes to existing policies and procedures. The lessons 
     derived from it are expected to have a direct, cost saving 
     impact on the designs for future ships, such as the arsenal 
     ship and the Navy's next generation of surface combatant, the 
     SC-21. It may also produce modification proposals that could 
     be cost effectively incorporated into existing fleet units to 
     lower operating and support costs.
       The Senate amendment would authorize an increase of $31.3 
     million above the budget request to accelerate the Smart Ship 
     initiative. Of this amount, $21.9 million would be for PE 
     64307N. The balance of $9.4 million would be added to the 
     Navy's operating account.
       The House bill would authorize the requested amount.
       The conferees agree to authorize $23.4 million above the 
     budget request to accelerate the Smart Ship initiative. Of 
     this amount, $14.0 million would be for PE 64307N. The 
     balance of $9.4 million would be added to the Navy's 
     operating account.
     Arsenal ship
       The budget request included $25.0 million in PE 64310N for 
     Department of the Navy engineering and manufacturing 
     development to initiate a ``new start'' development for the 
     arsenal ship. The budget request for the Defense Advanced 
     Research Projects Agency (DARPA) also included $16.4 million 
     in PE 63226E for development of technologies for application 
     to future surface warfare and fast sealift ships, including 
     the arsenal ship.
       The House bill would authorize the budget request, but 
     would provide funding for the Navy for the arsenal ship 
     program in PE 63563N, Ship Concept Advanced Design, an 
     advanced development program element, rather than in PE 
     64310N. The House report (H. Rept. 104-563) would direct the 
     Secretary of the Navy to submit the initial results of a 
     review of DOD Directive 5000.1 and DOD Regulation 5000.2 with 
     respect to core acquisition management issues relative to the 
     arsenal ship with the fiscal year 1998 budget request.

[[Page H9225]]

       The Senate amendment would authorize an increase of $147.0 
     million in PE 64310N to accelerate development of the arsenal 
     ship weapons system and to accelerate the process of finding 
     answers to questions that would allow the Navy to develop the 
     arsenal ship as a system, not just a ship. The Senate report 
     (S. Rept. 104-267) noted that the Senate expects the Navy to 
     be prepared to address this matter and its various 
     developmental and resource implications before the submission 
     of the fiscal year 1998 budget request.
       The conferees agree to authorize $25.0 million for the 
     arsenal ship program in a new advanced development program 
     element, PE 63310N, and $16.4 million in 63226E as included 
     in the budget request.
       The conferees commend the Navy's leadership and the Navy 
     development community and participating Defense agencies for 
     the innovative way in which the concept for the arsenal ship 
     has been developed. The conferees agree that the program is 
     in an early conceptual stage and that a number of questions 
     regarding the program, as expressed in the House and Senate 
     reports, need to be answered as the program proceeds. The 
     conferees also agree that the projected cost of the program 
     indicates that the arsenal ship will be a major defense 
     acquisition program.
       The conferees support the concept of the Department of 
     Defense advanced concept technology demonstration and the 
     desirability of early user involvement in the development and 
     evaluation of emerging technologies. The conferees also 
     support the need to break out of bureaucratic practices, and 
     make maximum use of best commercial practices, streamlined 
     acquisition procedures, and modern design and analytical 
     tools to develop new defense acquisition paradigms. The 
     conferees see no conflict between these goals and the 
     requirement for the Department of Defense to answer necessary 
     questions at the beginning and at subsequent milestones in 
     any development and acquisition program. The challenge for 
     the Department, as expressed in the House report, is to 
     create better analytical tools that will provide answers to 
     the continuing questions in any development program, such as: 
     (1) what is the operational requirement?; and (2) what is the 
     most cost and operationally effective way of meeting that 
     operational requirement?
     Standard missile ``Terrier'' target
       The budget request included $1.6 million in PE 64366N for 
     development of improvements to the Standard missile.
       The House bill would authorize an additional $8.0 million 
     for a proof of concept demonstration and evaluation of the 
     potential effectiveness of the Terrier missile as a 
     supersonic sea-skimming target (SSST).
       The Senate amendment would authorize this initiative in PE 
     63795N.
       The Senate recedes.
       The conferees note that the Navy's inventory of SSSTs is 
     insufficient to meet both test and evaluation and fleet 
     training needs and believe that the Navy must seriously 
     address the development and procurement of a follow-on SSST 
     to ensure that production units are available when needed.
     Airborne mine detection systems
       The budget request included $14.5 million in PE 64373N for 
     airborne mine countermeasures systems.
       The Senate amendment would authorize an increase of $10.0 
     million in PE 64373N to produce a competitive evaluation of 
     two airborne laser mine detection systems (ALMDS), ATD-111 
     and Magic Lantern. Both systems are based on light detection 
     and ranging (LIDAR) technology. The funding increase would be 
     used to prepare the two systems for the competition, to 
     conduct the competitive assessment, and to prepare the 
     required report as follows:
       (1) $3.0 million would be available to prepare ATD-111 for 
     the competition;
       (2) $5.0 million would be available to prepare Magic 
     Lantern for the competition; and
       (3) $2.0 million would be available to organize and conduct 
     the competition, analyze data, and prepare the required 
     report.
       The Senate amendment would also require the Secretary of 
     the Navy, upon completion of the competitive assessment, to 
     develop a plan to procure a sufficient number of the winning 
     systems to provide the active Navy forces with a satisfactory 
     contingency ALMDS capability. To begin this procurement, the 
     Senate amendment would authorize an increase of $25.0 million 
     above the budget request.
       The House bill would authorize an increase of $25.0 million 
     above the budget request for the procurement of three 
     additional Magic Lantern systems.
       The conferees agree to authorize an increase of $10.0 
     million in PE 64373N to conduct the competitive assessment 
     described in the report accompanying the Senate amendment (S. 
     Rept. 104-267).
       The Senate report noted that, in testimony on its mine 
     warfare programs this year, the Navy, emphasized its long 
     term objective of providing an organic mine countermeasures 
     (MCM) capability to the active fleet that will permit fleet 
     units to respond immediately to mine threats while waiting 
     for specialized MCM units to arrive on the scene. However, 
     progress in fielding an organic capability for the Navy's 
     aircraft carrier battle groups (CVBGs) and amphibious ready 
     groups (ARGs) to conduct minehunting by use of an ALMDS has 
     been marginal.
       The conferees are aware that there are two LIDAR systems in 
     development, Magic Lantern and ATD-111, that could be 
     candidates for a solution to the ALMDS requirement. They have 
     been in development for a number of years at very modest 
     levels of funding. However, it would appear that, while their 
     technology is sufficiently mature to proceed to the 
     engineering and manufacturing development stage, sufficient 
     resources are not available to transition both systems.
       Accordingly, the conferees direct the Navy to conduct a 
     competitive evaluation field test, during fiscal year 1997, 
     of the two candidate technologies represented by Magic 
     Lantern and ATD-111, for the purpose of identifying a single 
     system that can be procured and integrated into active Navy 
     fleet aircraft to provide them with an organic MCM 
     capability. This assessment should include a quantitative 
     determination of each system's performance with respect to 
     detection and classification of moored and floating mines, 
     area coverage, false alarm rates, potential for multi-mission 
     capability, system availabity, and capability for integration 
     and carriage abroad the SH-60 series active fleet 
     helicopters. The conferees further direct that this 
     competitive evaluation be conducted as soon as practicable, 
     but no later than July 1, 1997. The Secretary of the Navy 
     shall report result to the congressional defense committees 
     no later than August 1, 1997.
       Upon completion of this assessment, the Navy shall develop 
     a plan that will lead to procurement of a sufficient number 
     of the winning systems to provide active Navy forces with a 
     satisfactory contingency ALMDS capability. The conferees 
     direct the Secretary of the Navy to submit this plan to the 
     congressional defense committees in conjunction with the 
     fiscal year 1999 budget request to continue execution of the 
     plan.
     Multi-purpose processor
       The budget request included $61.4 million in PE 64503N, 
     including $33.6 million for development of submarine sonar 
     improvements. Included in this program element is a program 
     for the development and introduction of multipurpose 
     processor (MPP) technology into the U.S. submarine fleet.
       The MPP was developed under the Small Business Innovative 
     Research Program. Using commercial off-the-shelf (COTS) 
     hardware and an open software architecture, the MMP has 
     capitalized on the exponential improvement in commercial 
     hardware and software to facilitate rapid improvements in 
     submarine acoustic data processing. Fundamental to the MPP is 
     the concept of protecting the Navy's investment in processor 
     software through software transportability, i.e., the ability 
     to transport new, advanced software to existing hardware 
     utilizing an open operating system. The MPP has been 
     incorporated into the design of the command, control, 
     communications, and intelligence system of the New Attack 
     Submarine Program. The Navy's Submarine Combat Systems 
     Program has also selected the MPP as a cornerstone for sonar 
     upgrades for the existing SSN-688, 688I, and SSBN-726 class 
     submarines.
       The House bill would authorize an increase of $11.0 million 
     in PE 64503N for advanced development and rapid introduction 
     of MPP technology into the U.S. submarine fleet.
       The Senate amendment would authorize an increase of $15.2 
     million in PE 64558N to mature MPP transportable software 
     technology for use in research and development programs, and 
     to improve the performance of Navy towed and hull mounted 
     arrays.
       The conferees agree to an increase of $15.2 million in PE 
     64503N to support advanced development of MPP transportable 
     software technology and rapid introduction of MPP technology 
     into the U.S. submarine fleet.
     Seawolf shock test
       The budget request included $91.9 million in PE 64561N for 
     Seawolf class research and development
       The Senate amendment would authorize an increase of $26.0 
     million in PE 64561N to provide for shock testing of Seawolf 
     components not covered by the budget request.
       The House bill would authorize the requested amount
       The Senate recedes.
     Tactical fiber optic communications
       The budget request included $4.6 million in PE 32019K for 
     the joint/defense information systems engineering and 
     integration program.
       The House bill would authorize an increase to the budget 
     request of $3.0 million to investigate military applications 
     of the planned world wide commercial fiber optic grid and 
     support a Defense Information Systems Agency proof of concept 
     demonstration of the ability to establish Department of 
     Defense ``splices'' into the grid before it is fully 
     deployed.
       The Senate amendment would authorize the budget request.
       The House recedes.
     Doppler sonar velocity log
       The budget request included $22.9 million in PE 64562N for 
     engineering and manufacturing systems development of 
     submarine tactical warfare systems.
       The House bill would authorize an increase of $1.0 million 
     to the budget request in PE 64562N for the evaluation of a 
     commercially available, non-developmental Doppler sonar 
     velocity log as a potential replacement for standard Navy 
     electromagnetic logs.
       The Senate amendment would authorize the requested amount.
       The House recedes.
     Explosive ordnance disposal
       The budget request included $7.3 million in PE 64654N for 
     the joint service explosives

[[Page H9226]]

     ordnance disposal (EOD) development program.
       The House bill would authorize an increase of $1.1 million 
     in PE 64654N to accelerate development of EOD procedures for 
     countering high threat unexploded ordnance found in the 
     field.
       The Senate amendment would authorize the budget request.
       The House recedes.
     Battle group passive horizon extension system--surface 
         terminal
       The budget request included $1.9 million PE 64721N for 
     continued research and development of the battle group 
     passive horizon extension system--surface terminal (BGPHES-
     ST) capabilities.
       The House bill would authorize an increase of $1.0 million 
     in PE 64721N for procurement by the Navy of existing Air 
     Force processing capabilities and algorithms for exploitation 
     of the class of threats known as ``PROFORMA'' and integration 
     of EPR-157 and EPR-208 capabilities in existing BGPHES-ST 
     hardware.
       The Senate amendment would authorize the budget request.
       The Senate recedes.
     Quick reaction combat capability
       The budget request included $29.5 million for continued 
     development of the quick reaction combat capability (QRCC) 
     for ship self-defense.
       The Senate amendment would authorize an increase of $17.0 
     million above the budget request in PE 64755N to:
       (1) accelerate engineering of the LHD amphibious assault 
     ship self-defense system;
       (2) integrate the advanced combat direction system (ACDS) 
     with the cooperative engagement capability (CEC); and
       (3) improve tracking equipment at the Navy's Wallops Island 
     engineering test site and aboard its self-defense test ship.
       The House bill would authorize the requested amount.
       The Senate recedes.
     SPS-48E radar pulse Doppler upgrade
       The conferees are aware of a recently completed Navy study 
     ``Land Clutter Effects of Shipboard Radars'', dated April 11, 
     1996. The study demonstrates that radar signal return clutter 
     over land can seriously degrade the ability of shipboard air 
     surveillance radars to detect low altitude targets. Even 
     close-in aircraft or cruise missiles may not be detected, and 
     sensitive, highly automated systems can become overloaded 
     with large numbers of clutter detections and false tracks. As 
     a case in point, the AN/SPS-48E radar, the principal aerial 
     surveillance and height-finding radar for aircraft carriers 
     and large deck amphibious ships, demonstrates degraded near-
     shore and limited low altitude over-land detection 
     performance against small signature targets, such as cruise 
     missiles.
       The conferees authorize an increase of $12.0 million in PE 
     64755N to develop and demonstrate a pulse Doppler upgrade to 
     the AN/SPS-48E radar. Incorporating a pulse Doppler 
     capability into this radar would provide improved near-shore 
     and low altitude over-land clutter rejection and improved 
     radar performance.
     Infrared search and track
       The budget request included $3.9 million in PE 64755N for 
     the continued development of the infrared search and track 
     (IRST) weapons system.
       To eliminate a substantial portion of the delays in the 
     IRST program that the budget request would produce, the 
     Senate amendment would authorize an increase of $8.0 million 
     above the budget request in PE 64755N.
       House bill would authorize the requested amount.
       The Senate recedes.
     Evolved Sea Sparrow missile
       The budget request included $39.5 million in PE 64755N for 
     continued development of the evolved Sea Sparrow missile 
     (ESSM).
       The Senate amendment would authorize an increase of $8.0 
     million above the budget request in PE 64755N to:
       (1) modify the safe and arming device of the RIM-7P to 
     ensure safe separation from the firing ship;
       (2) additional simulation capability that will better 
     reflect the improved missile design and the environmental 
     conditions that the missile will encounter within its flight 
     envelop; and
       (3) an S-band link to support the missile's employment by 
     AEGIS ships.
       The House bill would authorize the requested amount.
       The Senate recedes.
     Fixed distributed system-1
       The budget request included no funding for improving the 
     capabilities of the Navy's fixed distributed system-1 (FDS-
     1), a modern surveillance system that can detect even the 
     most modern threat submarines. The committee has learned that 
     additional enhancements in this system could improve 
     significantly its surveillance coverage.
       The House bill would authorize an increase of $35.0 million 
     to the budget request in PE 64784N for a fixed distributed 
     system commercial-off-the-shelf/non-development initiative 
     fiber optics upgrade.
       The Senate amendment would authorize an increase of $52.0 
     million above the budget request in PE 64784N to complete 
     enhancements to FDS-1.
       The senate recedes.
     Safety and survivability
       The House bill would authorize an increase of $2.0 million 
     in PE 65864N to support ongoing non-developmental item (NDI) 
     operational assessments of commercial safety and 
     survivability technology and systems for potential use in 
     Navy operational units. In addition, the House bill would 
     authorize an increase of $4.0 million in PE 63226E for the 
     Defense Advanced Research Projects Agency (DARPA) to examine 
     high leverage technologies for firefighting and personnel 
     protection.
       The Senate amendment did not contain similar provisions.
       The conferees agree to authorize only the increase of $2.0 
     million in PE 65864N, because no appropriation was provided 
     for the DARPA portion of the recommended program.
     SSBN security and survivability program
       The budget request included $21.3 million in PE 11224N for 
     the SSBN security and survivability program.
       The House bill would authorize an additional $2.0 million 
     for further development and evaluation of wake trail sensors 
     and an additional $6.0 million to sustain the funding level 
     required to maintain a credible SSBN security and 
     survivability program.
       The Senate amendment would authorize an increase of $5.5 
     million to explore several promising technologies, such as 
     forward scatter barrier, low frequency active sonar, radar 
     detection, and light detection and ranging (LIDAR) buoy 
     detection.
       The House recedes.
       The conferees agree with the views expressed in the House 
     report (H. Rept. 104-563) concerning the need to maintain a 
     credible and robust SSBN security program in view of the 
     critical role of strategic deterrence in U.S. national 
     military strategy that is provided by the U.S. SSBN force.
     Joint target support system testbed
       The budget request includes $136.4 million in PE 24229N, 
     including $130.5 million for operational systems development 
     of the Tomahawk Baseline Improvement Program (TBIP) and $5.9 
     million for the Tomahawk theater mission planning center.
       The House bill would authorize an additional $8.0 million 
     in PE 24229N to continue development and demonstration of the 
     joint targeting support system testbed (JTSST).
       The Senate amendment would authorize an increase to the 
     budget request of $29.0 million in PE 24229N for continued 
     development of the Tomahawk Block IV missile.
       The Senate recedes.
       In the statement of managers accompanying the conference 
     report on S. 1124 (H. Rept. 104-450), the conferees agreed to 
     initiate development of a JTSST for demonstration of 
     potential joint targeting operations with the expectation 
     that the results of the initial JTSST study and follow-on 
     demonstrations would contribute to the definition of long-
     term objectives, guidelines, and schedule milestones for 
     convergence of the Navy/Marine Corps tactical aircraft 
     mission planning systems and the Air Force mission support 
     system, and lead to the development of a joint mission 
     planning system architecture for the military services.
       The conferees voice their displeasure that the Secretary of 
     Defense has failed to comply with the previous guidance 
     provided by the Congress with regard to the JTSST 
     demonstration. The Secretary is directed to report to the 
     congressional defense committees, no later than December 31, 
     1996, the Department's plans for:
       (1) development of a joint mission planning system 
     architecture for the military services;
       (2) the convergence of Navy/Marine Corps and Air Force 
     tactical mission planning and mission support systems; and
       (3) the role a JTSST demonstration will play in furthering 
     these plans.
     Integrated surveillance system improvements
       The budget request included $14.0 million in PE 24311N for 
     research and development support of the Integrated Undersea 
     Surveillance System (IUSS) including $3.3 million for 
     research and development support of the Surveillance Towed 
     Array Sensor System (SURTASS) and $10.7 million for the IUSS 
     detection/classification system.
       The House bill would authorize an increase of $22.1 million 
     in PE 24311N to the budget request in PE 24311N to:
       (1) continue development and integration of SURTASS twin 
     line arrays, reduce the size of transmit arrays, continue 
     fiber optic array development, expand frequency processing 
     capabilities, and conduct at-sea testing of resulting 
     developments;
       (2) sustain the low frequency array program and development 
     of more reliable low frequency active transmitters; and
       (3) adapt SURTASS software algorithms for submarine sonar 
     systems.
       The Senate amendment would authorize an increase of $8.0 
     million in PE 63504N for adaptation of SURTASS software 
     algorithms for use in submarine sonar systems.
       The Senate recedes.
     Consolidated training systems development
       The budget request included $34.9 million in PE 24571N for 
     consolidated training systems development, including $3.4 
     million for continued development of the Navy's surface 
     tactical team trainer (STTT), $17.9 million for the joint 
     tactical combat training system (JTCTS), and $6.0 million for 
     training and training devices systems (TTDS).
       The House bill would authorize an increase of $3.0 million 
     in PE 24571N to continue integration and evaluation of the 
     cryptologic systems trainer in the battle force tactical 
     training (BFTT) system component of the STTT.

[[Page H9227]]

       The Senate amendment would authorize an increase of $5.0 
     million in PE 64735F and $9.0 million in PE 24571N for the 
     JTCTS to correct an imbalance between the program's planned 
     development timeline and the schedule allowed by the funding 
     included in the budget request.
       The Senate recedes.
     Advanced anti-radiation guided missile
       The budget request included no funds to continue 
     development of the advanced anti-radiation guided missile 
     (AARGM) technology.
       The House bill would authorized an additional $50.0 million 
     for AARGM in PE 25601N. The House report (H. Rept. 104-563) 
     would direct the Secretary of the Navy to proceed with the 
     development program and use the additional funds to continue 
     seeker development, analyses, demonstrations, and test 
     support. The House report would direct that the use of these 
     funds be limited to design reviews and support for test and 
     evaluation. The report further would encourage the 
     Secretaries of the Navy and the Air Force to fund the fiscal 
     year 1998 requirements for the program.
       The Senate amendment would approve the budget request.
       The Senate recedes.
     High speed anti-radiation missile
       The House bill would authorize an additional $5.0 million 
     in PE 25601N and an additional $3.5 million in PE 27162F for 
     the High Speed Anti-Radiation Missile (HARM).
       The Senate amendment would authorize the requested amount.
       The conferees agree to authorize an additional $2.5 million 
     in PE 25601N to accomplish risk reduction efforts for the 
     block IV program and block V software for HARM.
     Tactical data links
       The budget request included $37.3 million in PE 25604N for 
     development of improvements in tactical data links in 
     operational Navy systems.
       The House bill would authorize an increase to the budget 
     request of $11.6 million for further development of Link 16 
     and related tactical data link programs for surface ship 
     applications; $13.6 million in Other Procurement, Navy; and 
     $2.2 million in Operations and Maintenance, Navy (OMN 
     0205604N 4B7N) to accelerate the installation of Link 16 
     tactical data links in AEGIS surface combatants.
       The Senate amendment would authorize the requested amount.
       The House recedes.
     Towed array receive system
       The budget request included $4.9 million in PE 25620N for 
     surface anti-submarine warfare combat systems integration.
       The House bill would authorize an increase to the budget 
     request of $4.0 million in PE 25620N for integration of the 
     Navy's towed array receive system (TARS) upgrade in the AN/
     SQQ-89 surface ship sonar suite in order to address 
     shortcomings in the Navy's capability for detecting slow-
     moving diesel-electric submarines in shallow water.
       The Senate amendment would authorize the budget request.
       The Senate recedes.
     Commander in Chiefs' technology initiative
       The budget request included $5.0 million in the Navy 
     Science Assistance program (PE 25658N).
       The Senate amendment would authorize and increase of $10.0 
     million in PE 25658N to support efforts by the services and 
     defense agencies to transition rapidly selected technologies 
     from the defense research and development establishment to 
     the services for use in military operations through the 
     Commander in Chiefs' technology initiative established by 
     Congress last year.
       The House bill would authorize the budget request.
       The House recedes. The conferees expect that funding in 
     future years for this initiative will be included in the Navy 
     budget request.
     Tactical electronic reconnaissance processing and evaluation 
         system
       The budget request included $2.5 million in PE 26313M for 
     upgrade to, and communications integration testing within, 
     the tactical electronic reconnaissance processing and 
     evaluation system (TERPES).
       The House bill would authorize an additional $855,000 to 
     provide communication software upgrades to improve TERPES 
     interoperability with the global command and control system 
     (GCCS) and the tactical air mission planning system (TAMPS).
       The Senate amendment would authorize the budget request.
       The Senate recedes.
     Medium tactical vehicle remanufacturing
       The budget request included $5.2 million in PE 26624M for 
     Marine Corps combat services support.
       The House bill would authorize the requested amount.
       The Senate amendment would authorize an additional $3.0 
     million in PE 26624M to retain a third contractor during the 
     engineering and manufacturing development phase of the medium 
     tactical vehicle remanufacturing program.
       The Senate recedes.
     GEOSAT Follow-On
       The Senate amendment contained $20.0 million to begin 
     development of a second GEOSAT Follow-On (GFO-2) altimetry 
     satellite.
       The House bill did not include funding for GFO-2.
       Given the cost growth that has taken place in the GFO-1 
     program, the conferees agree to authorize $15.0 million in PE 
     35160N to commence work on GFO-2, subject to the following 
     restrictions: (1) Of the $15.0 million authorized for GFO-2, 
     the conferees agree to authorize the use of up to $10.0 
     million to compensate for cost growth in the GFO-1 program 
     and to ready the satellite for launch; and (2) the conferees 
     direct the Secretary of the Navy not to obligate or expend 
     any of the funs on a GFO-2 program until the Secretary 
     certifies to Congress that technical and cost issues 
     associated with GFO-1 have been satisfactorily resolved and 
     the Secretary recommends proceeding with GFO-2.
     Manufacturing technology (MANTECH)
       The budget request included $16.8 million for the Army 
     MANTECH program (PE 78045A), $35.5 million for the Navy 
     MANTECH program (PE 78011N) and $49.9 million for the Air 
     Force MANTECH program (PE 78011F).
       The Senate amendment would fund the Army program at the 
     requested amount and authorize a general increase in the 
     services' manufacturing technology programs with an increase 
     of $30.0 million in PE 78011N and an increase of $20.0 in PE 
     78011F, as part of a broader thrust to address current and 
     future affordability concerns.
       The House bill would authorize an increase of $11.0 million 
     in the Army MANTECH program and authorize the requested 
     amount for the Navy and Air Force MANTECH programs.
       The conferees agree to authorize the following amounts for 
     the MANTECH program:
       PE 78045A--$27.9 million.
       PE 78011N--$65.5 million.
       PE 78011F--$69.9 million.
       The conferees are aware of issues involved with the delay 
     of funding for MANTECH programs and direct the Department of 
     Defense to take the necessary actions to ensure expeditious 
     and timely obligation of fiscal year 1996 and 1997 funding 
     for these programs. The committee encourages the continuation 
     of programs currently funded in the MANTECH account designed 
     to demonstrate the effectiveness of comprehensive career 
     analysis and retraining models for military and civilian 
     personnel who have been or will be terminated as a 
     consequence of base closure decisions.
       A provision (sec. 276) in the National Defense 
     Authorization Act for Fiscal Year 1996 (Public Law 104-106) 
     amended section 2525 of title 10, Untied States Code to 
     require the Secretary of Defense to seek the participation of 
     manufacturers of manufacturing equipment for the projects 
     under the programs. The conferees agree that this language is 
     not hortatory but intend it to provide specified direction 
     and focus to the program. The focus of the MANTECH program is 
     the development of manufacturing process technology, and the 
     manufacturing equipment segment of the industry should be 
     actively involved in the projects under these programs.
     Acquisition center of excellence
       The Senate amendment would authorize $8.0 million in a new 
     budget line for the establishment of an acquisition center of 
     excellence in the Navy.
       The House bill did not contain a similar provision.
       The House recedes. The conferees expect that the Navy will 
     provide follow-on funding for this effort in fiscal year 1998 
     and beyond as part of the budget requested for each fiscal 
     year. The conferees direct the Secretary of the Navy to 
     submit to the congressional defense committees, no later than 
     June 15, 1997, a report on progress made toward establishing 
     the center as well as toward the development of performance 
     measures for judging the effectiveness of the center in 
     acting as an agent of reform for the acquisition process in 
     the Navy and elsewhere in the Department of Defense.
     Overview
       The budget request for fiscal year 1997 contained an 
     authorization of $14,417.5 million for Air Force, Research 
     and Development in the Department of Defense. The House bill 
     would authorize $13,271.1 million. The Senate amendment would 
     authorize $14,786.4 million. The conferees recommended an 
     authorization of $14,756.4 million. Unless noted explicitly 
     in the statement of managers, all changes are made without 
     prejudice.

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     Carbon/carbon nosetips
       The Senate amendment recommended that $1.5 million of the 
     funds provided in PE 62102F be utilized for the development 
     of carbon/carbon thermal protection material for reentry 
     vehicles as well as for aircraft, spacecraft and missile 
     applications.
       The House bill had no similar provision.
       The House recedes.
     Thermally stable jet fuels
       The budget request included $74.9 million for aerospace 
     propulsion technology (PE 62203F).
       The Senate amendment would authorize an increase of $3.0 
     million in PE 62203F for thermally stable jet fuels.
       The House bill would authorize the budget request.
       The conferees agree to an authorization of $74.9 million 
     for PE 62203F of which $3.0 million is authorized for the 
     continuation of the thermally stable jet fuel program.
     High frequency active auroral research program
       The budget request included $121.1 million for Phillips 
     Laboratory exploratory development (PE 62601F) and $54.1 
     million for counterproliferation support (PE 63160D).
       The Senate amendment authorized an increase of $15.0 
     million for the high frequency active auroral research 
     program, with $7.5 million in PE 62601F and $7.5 million in 
     PE 63160D.
       The House bill authorized the budget request.
       The House recedes.
     Metal fatigue monitoring
       The budget request included $23.8 million for advanced 
     materials for weapon systems technology (PE 63112F).
       The House bill would authorize an increase of $2.5 million 
     in PE 63112F for the metal fatigue monitoring program.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Aircraft ejection seats
       The budget request included $18.0 million in PE 63231F for 
     crew systems and personnel protection technology, $11.1 
     million in PE 64264N for aircrew systems development, and 
     $4.4 million for life support systems in PE 64706F.
       The House bill and the Senate amendment would authorize an 
     additional $5.0 million in PE 63231F and PE 64264N each to 
     accelerate program phases for ejection seat upgrades. The 
     House bill would also provide an additional $3.5 million in 
     PE 64706F to evaluate the ACES II ejection seat with 
     stabilization, limb restraints, and expanded crew member 
     accommodation and to examine new technology for the 
     integration of tactical aircrew personal equipment.
       The conferees agree to authorize an addition $11.5 million, 
     $5.0 million to PE 63231F and $5.0 million to PE 64264N, for 
     ejection seat development, and $1.5 million in PE 64706F to 
     evaluate the ACES II ejection seat with stabilization, limb 
     restraints, and expanded crew member accommodation.
     Space Architect
       The budget request included $15.0 million in PE 63855F for 
     the Department of Defense Space Architect.
       The House bill recommended a reduction of $4.0 million from 
     the request, to include any ``pass-through'' funding intended 
     for the Office of the Secretary of Defense for which there 
     was no request.
       The Senate amendment approved the budget request.
       The conferees agree to authorize $13.0 million in a new 
     operational systems development program element, a reduction 
     of $2.0 million. The conferees are following with interest 
     the DOD Space Architect's on-going reviews of the appropriate 
     military satellite communications architecture and the 
     architecture for space control. The conferees expect to be 
     kept apprised of progress during the conduct of these 
     important reviews. The conferees also strongly urge the 
     Architect to consult closely with the Commander-in-Chief, 
     U.S. Space Command during these reviews. Finally, the 
     conferees direct that, in the submission of the fiscal year 
     1998 budget request, funding for the Deputy Under Secretary 
     of Defense for Space not be included along with funds for the 
     Space Architect.
     B-2 Conventional capability enhancements
       The House bill would authorize an increase of $290.0 
     million in PE 64240F to accelerate precision guided munition 
     (PGM) integration and conventional weapons capability into 
     the B-2 bomber fleet.
       The Senate amendment would authorize the budget request.
       The conferees note that the Department plans to equip the 
     B-2 fleet with enhanced conventional capability, but are 
     concerned with the low levels of funding and slow pace of 
     these efforts. Consequently, the conferees authorize an 
     increase of $212.0 million to accelerate integration of PGMs 
     and to provide enhanced communications, information data link 
     capability, and improved conventional weapons accuracy for 
     the existing fleet of 21 B-2 bombers.
     Nuclear weapons support
       The budget request included $4.8 million in PE 64222F for 
     nuclear weapons support.
       The conferees are concerned about the backlog of 
     requirements for nuclear weapons support for various systems 
     and the impact this backlog can have upon U.S. confidence in 
     the reliability of the nuclear weapons stockpile. 
     Accordingly, the conferees recommend an increase of $1.0 
     million for activities of the Air Force's Nuclear Weapons 
     Integration Office. The conferees direct the Secretary of the 
     Air Force to include sufficient funds in the fiscal year 1998 
     budget request to eliminate this backlog.
     Global positioning system
       The Senate amendment recommended an increase of $7.1 
     million in PE 64480F to sustain the development and support a 
     production rate of three Block IIF Global Positioning System 
     (GPS) satellites per year, which will be required to maintain 
     a full 24-satellite constellation. The Senate amendment also 
     recommended an increase of $5.0 million in PE 35164F to 
     accelerate activities necessary to ensure effective use of 
     high-precision GPS signals by United States forces, and the 
     means to deny access to those signals by hostile forces.
       The House bill recommended approval of the budget request 
     for GPS.
       The conferees agree to authorize an increase of $7.1 
     million in Missile Procurement. Air Force, to sustain the 
     development and support a production rate of three Block IIF 
     GPS satellites per year. The conferees also agree to 
     authorize an increase of $5.0 million in PE 35164F to 
     accelerate activities necessary to ensure effective use of 
     high-precision GPS signals by United States forces, and the 
     means to deny access to those signals by hostile forces.
     Joint tactical information distribution system (JTIDS)
       The budget request included $11.1 million for JTIDS.
       The House bill would add $55.7 million to the budget 
     request.
       The Senate amendment would add $19.8 million.
       The conferees agree to an increase of $19.8 million to the 
     budget request for PE 64754F to accelerate the integration of 
     Link 16 into the B-1B, F-15E, and F-16.
     F-15 countermeasures
       The House bill would authorize an additional $17.0 million 
     in PE 27134F to complete development of the ALQ-135 for the 
     F-15E.
       The Senate amendment would provide no additional 
     authorization.
       The conferees agree to authorize an additional $15.0 
     million to complete ALQ-135 development.
     Trusted Rubix
       The budget request included $6.9 million in PE 33140F for 
     information systems security. The conferees agree that of the 
     amount authorized to be appropriated in PE 33140F, up to $1.5 
     million may be used for the Trusted Rubix multi-level 
     security program.
     Precision landing system
       The House bill would authorize an additional $5.0 million 
     in PE 35114F to complete development of the precision landing 
     systems receiver.
       The Senate amendment had no similar authorization.
       The Senate recedes.
     Blade tip repair
       The budget request included $13.6 million for the Program 
     Office for Productivity, Reliability, Availability and 
     Maintenance (PE 78026F).
       The Senate amendment would authorize an increase of $4.5 
     million in PE 78026F to extend the current modeling under the 
     Air Force Blade Repair Program to the Propulsion Directorate 
     at the Oklahoma Air Logistics Center.
       The House bill would authorize the budget request.
       The House recedes.
     Overview
       The budget request for fiscal year 1997 contained an 
     authorization of $8,672.8 million for Defense-Wide, Research 
     and Development in the Department of Defense. The House bill 
     would authorize $9,406.4 million. The Senate amendment would 
     authorize $9,679.5 million. The conferees recommended an 
     authorization of $9,691.3 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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     Defense research sciences
       The budget request included $74.9 million for Defense 
     Research Sciences (PE 61101E).
       The Senate amendment would authorize that, within the funds 
     provided in PE 61101E, $20.0 million be utilized for 
     optoelectronics development.
       The House bill would authorize the budget request.
       The House recedes with an amendment. The conferees agree to 
     an authorization of $89.9 million or PE 61101E. This amount 
     includes an increase of $20.0 million for optoelectronics, 
     $10.0 million for computer-assisted education programs, a 
     reduction of $2.7 million for gallium nitride programs, and a 
     reduction of $2.3 million for ultraphotonics programs.
     University Research Initiative
       The budget request included $209.2 million in PE 61103D for 
     the University Research Initiative (URI).
       The House bill would authorize an increase of $20.0 million 
     in PE 61103D for the continuation of the Defense Experimental 
     Program to Stimulate Research (DEPSCoR) program.
       The Senate amendment would authorize a decrease of $10.0 
     million for the URI and an authorization of $20.0 million 
     from available funds for the DEPSCoR program. The Senate 
     amendment also included an authorization of $3.0 million from 
     available funds for the pilot program for the transfer of 
     defense technology information to private industry described 
     elsewhere in this report.
       The conferees agree to an authorization of $219.2 million 
     in PE 61103D. This amount includes a general reduction of 
     $10.0 million, an increase of $20.0 million for the DEPSCoR 
     program and $3.0 million for the pilot program for the 
     transfer of defense technology.
     Tactical Technology
       The budget request included $117.9 million in PE 62702E for 
     tactical technology programs.
       The House bill would authorize an increase of $12.0 million 
     for the DP-2 program.
       The Senate amendment would authorize an increase of $3.0 
     million for the expansion of the small low-cost interceptor 
     device (SLID) program.
       The conferees agree to authorize $114.5 million in PE 
     62702E, including a $3.0 million increase for SLID in 
     accordance with the S. Rept. (104-267), a decrease of $3.9 
     million for the collaborative crises and mitigation program, 
     and a decrease of $2.5 million for the fast computational 
     algorithims program. The conferees agree that $12.0 million 
     of the available funding is for the continuation of testing 
     and demonstration of the DP-2 program.
     Flat panel technology
       The budget request included $45.0 million for flat panel 
     displays (FPDs) in PE 62708E.
       The House bill would authorize an increase of $20.0 million 
     in PE 62708E to accelerate the ability to produce high 
     quality, low cost flat panel displays for military equipment 
     and missions.
       The Senate amendment would authorize the requested amount.
       The conferees agree to an increase of $20.0 million in PE 
     62708E for flat panel displays and infrastructure 
     development. The conferees support continued research and 
     development efforts and endorse the Defense Advanced Research 
     Projects Agency's (DARPA) industry team efforts and encourage 
     DARPA's continued investment in the program as outlined in 
     the FPD Initiative.
     Materials and electronics technology
       The budget request included $218.5 million for materials 
     and electronics technology programs (PE 62712E).
       The House bill would authorize an increase of $8.0 million 
     in PE 62712E for Chemical Vapor Composite (CVC) and Chemical 
     Vapor Deposition (CVD) synthetic diamond materials.
       The Senate amendment would authorize an increase of $11.0 
     million in PE 62712E: $3.0 million for pulsed laser 
     deposition to create hard carbon based coatings and $8.0 
     million to support continuation of high temperature 
     superconductivity. The Senate amendment would also authorize, 
     of the funds available for materials and electronics 
     technology, $7.0 million to be used for the seamless high 
     off-chip connectivity (SHOCC) program in PE 62712E.
       The conferees agree to a total authorization of $222.3 
     million in PE 62712E. The conferees agree to an increase of 
     $4.0 million for CVD and CVC synthetic diamond materials; an 
     increase of $8.0 million for high temperature 
     superconductivity as discussed in the Senate report (S. Rept. 
     104-267); and an increase of $3.0 million for carbon based 
     coatings. The SHOCC program is authorized for $7.0 million 
     within the program element. The conferees further agree to 
     reduce the authorization by $7.5 million for healthcare 
     information infrastructure and $3.7 million for the 
     nonvolatile memory program.
     Joint Department of Defense-Department of Energy munitions 
         technology development program
       The budget request included $16.2 million for the joint 
     Department of Defense and Department of Energy munitions 
     technology development program.
       The House bill would reduce the budget request by $1.6 
     million.
       The Senate amendment would increase the budget request by 
     $5.0 million for projects approved by the joint technology 
     advisory committee.
       The conferees agree to authorize the budget request.
     Fuel cells
       The House bill would authorize an increase of $2.4 million 
     in PE 63226E to complete the fixed base power plant 
     development and an increase of $4.0 million in PE 63573N for 
     competing conceptual ship service power plant design studies.
       The Senate amendment would authorize an increase of $8.0 
     million in PE 63851D to complete the development of the 
     climate change fuel cell program and an increase of $4.3 
     million in PE 63226E for the completion of the development of 
     the 2 MW carbonate-based fuel cell technology.
       The conferees agree to an increase of $8.0 million in PE 
     63851D for the climate change fuel cell program, an increase 
     of $2.1 million in PE 63226E for the completion of 
     development of the 2 MW carbonate-based fuel cell program, 
     and an increase of $1.9 million in PE 63513N for competing 
     conceptual ship service power plant design studies.
     Experimental evaluation of major innovative technologies 
         (EEMIT)
       The budget request included $635.6 million for experimental 
     evaluation of major innovative technologies (EEMIT) (PE 
     63226E).
       The House bill would authorize an increase of $38.4 million 
     in PE 63226E: $2.4 million for fuel cells; $5.0 million for 
     telemedicine (PE 63002A); $10.0 million for cruise missile 
     defense; $4.0 million for safety and survivability; $5.0 
     million for digital battlefield medical x-ray technology; and 
     $12.0 million for the passive millimeter wave camera.
       The Senate amendment would authorize an increase of $77.3 
     million in PE 63226E: $50.0 million for cruise missile 
     defense; $3.0 million for the large millimeter wave 
     telescope; $10.0 million for Crown Royal; $4.3 million for 
     carbonate based fuel cells; and $10.0 million for 
     thermophotovoltaics.
       The conferees agree to a total authorization for EEMIT of 
     $648.7 million in PE 63226E. The conferees agree to authorize 
     $2.1 million for fuel cells; $8.0 million for the 
     telemedicine project for disaster relief and emergency 
     medical services (DREAMS); $10.0 million for 
     thermophotovoltaics; $3.0 million for the large millimeter 
     wave telescope; and of the funds available in the EEMIT line, 
     $5.0 million may be used for the passive millimeter wave 
     camera.
       The conferees agree to reduce the authorization by $5.0 
     million for dynamic multiuse information fusion, and by $5.0 
     million for the joint forward air combat control project.
     Electronic commerce resource centers
       The budget request included $332.1 million for Advanced 
     Electronics Technologies (PE 63739E).
       The House bill would authorize an increase of $15.0 million 
     in PE 63739E for the creation of five new electronic commerce 
     resource centers (ECRC).
       The Senate authorized the budget request.
       The Senate recedes. The conferees agree to authorize an 
     increase of $15.0 million in PE 63739 to expand the ECRC 
     program.
     High performance computing modernization
       The budget request included $99.9 million for the high 
     performance computing modernization program (PE 63755D).
       The Senate amendment would authorize an increase of $25.0 
     million in PE 63755D to sustain the operations of 
     supercomputing centers.
       The House bill would authorize the budget request.
       The House recedes.
     Mobile detection assessment response system
       The budget request included $23.7 million for the Joint 
     Robotics Program (PE 63709D).
       The House bill would authorize an increase of $8.0 million 
     in PE 63709D for the continued development of the mobile 
     detection assessment response system (MDARS).
       The Senate amendment would authorize the budget request.
       The Senate recedes.
     Non-acoustic antisubmarine warfare
       The budget request included $24.0 million in PE 63714D for 
     the advanced sensor applications program (ASAP), the 
     independent non-acoustic antisubmarine warfare (NAASW) 
     research program managed by the Office of the Secretary of 
     Defense.
       The House bill would authorize an increase of $6.0 million 
     above the budget request in PE 63714D for the ASAP program. 
     The report accompanying the House bill (H. Rept. 104-563) 
     observed that the funding level requested in the budget 
     request for the ASAP program is approximately 20 percent less 
     than the level appropriated for fiscal year 1996, and 
     approximately 10 percent of the level originally programmed 
     in the fiscal year 1996 future years defense program for 
     fiscal year 1997. The House report also discussed the 
     increased capabilities of advanced nuclear submarines, the 
     proliferation of modern, quiet diesel submarines and advanced 
     non-nuclear submarine technology, and significant strides in 
     submarine operational proficiency being made by several Third 
     World navies. Reflecting the conclusion that the reductions 
     in funding for the ASAP program in the budget request were 
     imprudent and that increased emphasis needs to be placed on 
     improving the anti-submarine warfare capabilities of U.S. 
     forces in general, and on the NAASW program in particular, 
     the House bill would authorize an increase of $6.0 million 
     above the budget request for the ASAP program and identify 
     $1.0 million of this increase to conduct additional 
     investigations of foreign technology and systems relevant to 
     the missions of the ASAP program.

[[Page H9240]]

       The report accompanying the Senate amendment (S. Rept. 104-
     267) expressed similar reservations about reductions in 
     funding for the Department of Defense (DOD) ASAP program. It 
     also commented on the Department's unsatisfactory response to 
     direction given in the statement of managers accompanying the 
     National Defense Authorization Act for Fiscal Year 1996 for 
     DOD to conduct a comparative evaluation of a light detection 
     and ranging (LIDAR) system, ATD-111, against other comparable 
     approaches. This response stated that DOD intends to test the 
     ATD-111 system in fiscal year 1996 but would delay testing 
     for another LIDAR system, April Showers, until fiscal year 
     1998. Thus DOD would spend two more years developing April 
     Showers and then compare those two sets of test results.
       The Senate amendment would authorize an increase of $10.0 
     million in PE 63714D for the ASAP program to:
       (1) continue the work on scattering theory, microwave 
     radiometry, and the joint U.S.-UK radar ocean imaging 
     investigations; and
       (2) conduct a competitive evaluation in fiscal year 1997 
     between ATD-111 and the April Showers LIDAR system.
       The conferees agree to authorize an increase of $4.0 
     million in PE 63714D for the following purposes:
       (1) the comparative evaluation of ATD-111 and the April 
     Showers LIDAR system; and
       (2) continuation of work on ocean remote sensing, 
     scattering theory, microwave radiometry, and the joint U.S.-
     U.K. radar ocean imaging investigations.
       The conferees acknowledge the concerns expressed in the 
     Senate report and agree that the Department's plan for 
     comparative assessment of ATD-111 and April Showers must 
     provide equitable treatment for both systems. The conferees 
     direct the Secretary of Defense to develop a new plan and 
     provide it to the congressional defense and intelligence 
     committees no later than January 15, 1997.
       The conferees direct the program office to reassess the 
     value of some of the lower priority projects it is pursuing 
     with the aim of freeing up resources for higher priority 
     projects. The conferees reiterate that the ASAP program is a 
     congressional interest item.
     Integrated weapons system database
       The budget request included $1.9 million for the Continuous 
     Acquisition and Life-cycle Support Activities (PE 63736E).
       The Senate amendment would authorize an increase of $4.0 
     million in PE 63736E for the Integrated System Database for 
     continuation of the Integrated Data Environment (IDE) 
     program.
       The House bill would authorize the budget request.
       The House recedes.
     Rapid acquisition of manufactured parts
       The budget request did not include research and development 
     funds for the rapid acquisition of manufactured parts (RAMP) 
     program.
       The House bill would authorize an increase of $12.0 million 
     in PE 63736D for RAMP.
       The Senate amendment would authorize an increase of $10.0 
     million in PE 63736D for RAMP.
       The House recedes.
     NATO research and development
       The budget request included $22.7 million for NATO research 
     and development (PE 63790D)
       The House bill would reduce the budget request by $2.2 
     million.
       The Senate amendment would authorize the budget request.
       The Senate recedes.
     Data review and analysis monitoring aid (DRAMA)
       The budget request included $13.8 million for the Defense 
     Support Activities (PE 65798S).
       The Senate amendment would authorize an increase of $3.0 
     million in PE 65798S for the continuation of the DRAMA 
     program to reduce duplication in the defense supply system.
       The House bill would authorize the budget request.
       The House recedes.
     Joint command, control, communications, and computers/
         intelligence, surveillance, and reconnaissance
       The budget request included $2.9 million in PE 33149K for 
     C4I for the Warrior, a new initiative that promotes the 
     development and demonstration of joint and coalition command, 
     control, communications, and computers/intelligence 
     interoperability.
       The House bill would authorize an increase of $15.0 million 
     for development of improved capabilities for concept 
     development, analysis, and evaluation of advanced technology 
     and concepts for joint command, control communications, and 
     computers/intelligence, surveillance, and reconnaissance, 
     including $10.0 million for establishment of a battle 
     laboratory and $5.0 million for development of advanced 
     modeling and simulation.
       The Senate amendment would authorize the budget request.
       The House recedes.
     Defense Airborne Reconnaissance Office (DARO) research and 
         development
       The budget request included $438.6 million for research and 
     development for the Defense Airborne Reconnaissance Program.
       The House bill would add a total of $90.5 million to the 
     request. The Senate amendment would increase the request by 
     $23.4 million. Details of the adjustments in the House bill 
     and the Senate amendment, as well as the final conference 
     agreement, are displayed in the table below:

                               DEFENSE AIRBORNE RECONNAISSANCE PROGRAM DEVELOPMENT                              
                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                           Budget                                                     Conference
                Program                   request        Proposed House           Change Senate       agreement 
----------------------------------------------------------------------------------------------------------------
Tactical UAV joint program--project                                                                             
 141:                                                                                                           
    Tactical UAV......................       51,449      (18,000)                (12,800)                 33,449
    Tactical control system...........        7,067  ......................  ......................        7,067
    Common systems development........        6,092  ......................  ......................        6,092
                                       -------------------------------------------------------------------------
      Subtotal--project 141...........       64,608      (18,000)                (12,800)                 46,608
                                       =========================================================================
Airborne reconnaissance program--                                                                               
 project 525:                                                                                                   
    Advanced sensors..................       66,367       15,000             ......................       76,367
    Reconnaissance advanced technology       17,523        8,000             ......................       25,523
    Common data link..................       29,431  ......................       (6,500)                 22,931
    DARO operations...................          641  ......................  ......................          641
                                       -------------------------------------------------------------------------
      Subtotal--project 525...........      113,962       23,000                  (6,500)                125,462
                                       =========================================================================
Endurance UAVs--project 527:                                                                                    
    Predator..........................        6,099  ......................  ......................        6,099
    High altitude endurance (HAE) UAV                                                                           
     common ground segment............       71,642  ......................  ......................       71,642
    Conventional HAE (Global Hawk)....       81,227  ......................  ......................       71,227
    Low observable HAE (Dark Star)....       17,426       28,500             ......................       45,926
                                       -------------------------------------------------------------------------
      Subtotal--project 527...........      176,394       28,500             ......................      194,894
                                       =========================================================================
Manned reconnaissance program--project                                                                          
 530:                                                                                                           
    U-2...............................        4,161       57,000                  42,700                  46,861
    U-2 support for precision guided                                                                            
     munitions........................       24,119  ......................  ......................       24,119
                                       -------------------------------------------------------------------------
      Subtotal--project 530...........       28,280       57,000                  42,700                  70,980
                                       =========================================================================
Distributed common ground system                                                                                
 (DCGS)--project 531:                                                                                           
    Common imagery ground/surface                                                                               
     system (CIGSS)...................       47,780       11,000             ......................       47,780
    Airborne reconnaissance ground                                                                              
     SIGINT system (ARGSS)............        5,116  ......................  ......................        5,116
    DCGS interoperability.............        2,419  ......................  ......................        2,419
                                       -------------------------------------------------------------------------
      Subtotal--project 530...........       55,315       11,000             ......................       55,315
                                       =========================================================================
      Total PE 35154D.................      438,559       90,500                  23,400                 493,259
----------------------------------------------------------------------------------------------------------------


[[Page H9241]]




            TACTICAL UNMANNED AERIAL VEHICLES (PROJECT 141)

       The budget request for tactical unmanned aerial vehicles 
     (project 141) included $64.6 million for fiscal year 1997.
       The House bill would reduce the budget request by $18.0 
     million.
       The Senate amendment would reduce the budget request by 
     $12.8 million.
       The conferees agree to recommend $46.6 million for the 
     joint tactical unmanned aerial vehicle (JTUAV) program, a 
     reduction of $18.0 million. The restructuring of the program 
     and the creation of an advanced concept technology 
     demonstration (ACTD) has resulted in excess unexpended funds 
     from fiscal years 1995 and 1996. Accordingly, the conferees 
     recommend a reduction of $18.0 million.
       The conferees note the rapidity with which the DARO has 
     initiated the JTUAV program as an ACTD. The conferees are 
     skeptical of the Department's stated intention to transition 
     the JTUAV ACTD into an acquisition program before having any 
     experience with even a limited demonstration of the program. 
     It appears that the Department is using the ACTD program to 
     circumvent acquisition requirements, rather than to 
     demonstrate new technologies on a limited basis. Considering 
     the Department's unimpressive record of UAV acquisitions, and 
     continuing difficulties in fielding proposed sophisticated 
     UAVs, the conferees urge caution. Not only has the Department 
     had difficulties in fielding systems, but it continues to 
     endure significant losses of existing UAVs to mechanical 
     malfunction. The conferees intend to follow closely the JTUAV 
     development to ensure DARO adheres to accepted acquisition 
     principles and regulations, and its commitment to timely 
     results.
       Finally, noting the continued difficulties experienced by 
     the DARO in developing a suitable heavy fuel engine for its 
     UAVs, the conferees encourage competition to the maximum 
     extent possible in developing this capability.


             AIRBORNE RECONNAISSANCE PROGRAM (PROJECT 525)

     Joint airborne signals intelligence (SIGINT) architecture 
         (JASA)
       The budget request included $51.8 million within the $66.3 
     million contained in the advanced sensors line to continue 
     the joint airborne SIGINT system (JASS) development, 
     including continuing work on the JASS high band prototype 
     (HBP).
       The House bill would authorize the request. The House 
     report (H. Rept. 104-563) would prohibit the Department from 
     obligating any funds for the HBP follow-on system, the JASS 
     high band subsystem (HBSS), until the completion of flight 
     testing and when the HBP had proven its utility.
       The Senate amendment would authorize the request without 
     similar restrictions.
       The conferees agree to authorize the requested amount for 
     HBP to continue airborne SIGINT functional developments, 
     including the technical infrastructure upgrades necessary for 
     aircraft to incorporate future developments. However, because 
     the Department is scheduled to award the HBSS contract before 
     the HBP flight testing has begun, the conferees direct that 
     no funds be obligated to integrate and develop the HBSS until 
     the Secretary of Defense certifies to the Congress that such 
     concurrency provides an acceptable level of technical and 
     schedule risks. The conferees also direct the Secretary to 
     provide a complete cost and capability analysis of those 
     elements of the HBP that will be used in the HBSS.
       The conferees remain concerned about the health and long-
     term well-being of airborne SIGINT reconnaissance, because of 
     the pressures to field sensor and system improvements to keep 
     abreast of constantly evolving threats. The conferees believe 
     the DARO should be managing the airborne SIGINT program in a 
     manner that provides for needed upgrades while moving toward 
     the objective JASA architecture.
     Electro-optic camera framing technology
       The budget request contained $114.0 million for the 
     airborne reconnaissance program (project 525), including 
     $66.4 million for advanced sensor development.
       The House report (H. Rept. 104-563) noted that several 
     technologies show promise for providing precision point 
     targeting and location data. The House bill would authorize 
     an additional $15.0 million for the continued development and 
     evolution of the electro-optic (EO) framing sensors with on-
     chip forward motion compensation (FMC) technology, including:
       (1) $3.0 million for the operational insertion and testing 
     of a medium altitude wide area coverage ``step frame'' 
     sensor;
       (2) $2.2 million to develop enhanced data compression 
     algorithms;
       (3) $5.8 million to conduct a study of, and begin 
     development for, an EO framing infrared (IR) charge-coupled 
     device with on-chip FMC; and
       (4) $4.0 million to support multi-spectral EO framing 
     technologies with on-chip FMC.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize $10.0 million for 
     continued research and development of this capability, 
     including:
       (1) $3.0 million for the medium altitude wide area coverage 
     step frame sensor;
       (2) $4.0 million for enhanced data compression algorithms; 
     and
       (3) $3.0 million for multi-spectral EO framing technology 
     development with on-chip FMC.
       The conferees are aware that the area of EO/IR framing 
     technologies is dynamic, with several vendors offering 
     approaches to solving reconnaissance mission needs. 
     Therefore, the conferees encourage the DARO to avail itself 
     of the benefits of this competitive marketplace in addressing 
     the conferees' concerns.
     Multi-function self-aligned gate technology
       The budget request included $114.0 million for the airborne 
     reconnaissance program (project 525), including $17.5 million 
     for the reconnaissance advanced technology project.
       The House bill would provide an additional $8.0 million for 
     the reconnaissance advanced technology project for multi-
     function self-aligned gate (MSAG) technology.
       The Senate amendment would authorize the budget request.
       The conferees agree to provide an additional $8.0 million 
     for MSAG as described in the House report (H. Rept. 104-563).


            endurance unmanned aerial vehicles (project 530)

     Global Hawk
       The budget request included $81.2 million project 530 for 
     the Global Hawk UAV ACTD, including $10.0 million for 
     development of a signals intelligence payload.
       The House bill would prohibit the obligation of funds for 
     the signals intelligence payload until the Global Hawk has 
     been proven in flight demonstrations.
       The Senate amendment would authorize the budget request.
       The conferees agree to recommend a reduction of $10.0 
     million to the budget request for the Global Hawk.
     Dark Star
       The budget request included $17.4 million within project 
     530 for the Dark Star UAV.
       The House bill would increase the budget request by $17.5 
     million to upgrade electro-optical cameras, provide a 
     redesigned synthetic aperture radar antenna, and provide a 
     more robust aerial vehicle design.
       The first Dark Star vehicle crashed on its second test 
     flight. Subsequent to this event and the passage of H.R. 
     3230, the Intelligence Authorization Bill recommended adding 
     $22.0 million to recover from the air vehicle crash.
       The Senate amendment would support the authorization in the 
     budget request, but include a provision (sec. 216) on Dark 
     Star described elsewhere in the statement of managers. The 
     Senate recedes on the bill provision.
       The conferees agree on the importance of returning the Dark 
     Star program to flight testing as soon as the program manager 
     has extracted the necessary lessons from the recent crash. 
     Realizing the potential of the Dark Star UAV to provide 
     unique support to operational users, the conferees agree to 
     authorize an additional $28.5 million for the Dark Star UAV, 
     for the following purposes:
       (1) $22.0 million to complete the necessary engineering and 
     design efforts to recover from the crash of the first air 
     vehicle;
       (2) $3.5 million for integrating EO framing technology with 
     on-chip forward motion compensation into the aircraft and 
     associated ground processing equipment; and
       (3) $3.0 million for long lead procurement for the fifth 
     air vehicle, which will replace the destroyed aircraft.


              manned reconnaissance program (Project 530)

       The budget request for the manned reconnaissance program 
     (project 530) was $28.3 million.
       The House bill would increase the budget request by $57.0 
     million for projects as follows:
       (1) $10.0 million to improve and downsize the Senior Year 
     electro-optical system (SYERS) sensor to:
       (a) enable the Air Force to fly the two systems 
     simultaneously on the U-2; and
       (b) to improve SYERS geolocational accuracies;
       (2) $7.0 million to support the ASARS improvement program 
     (AIP) to ensure this upgrade can be fielded by fiscal year 
     1998;
       (3) $40.0 million, the remainder of recommended additional 
     funding, to upgrade Senior Ruby, Senior Spear, and Senior 
     Glass to a common configuration. Specifically, the House 
     report would direct the Air Force to:
       (a) upgrade the Senior Spear and Senior Ruby sensors to the 
     Senior Glass configuration; and
       (b) upgrade the existing Senior Glass systems to an open 
     architecture configuration consistent with an architectural 
     approach approved by the Defense Cryptologic Program manager.
       The House bill would also direct the Department to 
     determine, and to program for, necessary future years level-
     of-effort funding to continue evolutionary U-2 sensor 
     upgrades.
       The Senate amendment would authorize an additional $32.7 
     million to procure and integrate two additional Senior Glass 
     payloads for the U-2 fleet. The Senate amendment would also 
     provide an additional $10.0 million to repackage the SYERS 
     sensor for simultaneous $10.0 million to repackage the SYERS 
     sensor for simultaneous operation with other sensors, and to 
     begin the effort to add geolocation, broad area coverage, and 
     multi-spectral imaging capabilities.
       The conferees agree to recommend $70.9 million, or an 
     increase of $42.7 million, to be applied as follows:
       (1) $32.7 million to procure and integrate additional 
     Senior Glass payloads;

[[Page H9242]]

       (2) $10.0 million to repackage the SYERS sensor for 
     simultaneous operation with other sensors, and to begin the 
     effort to improve capabilities for geolocation, broad area 
     coverage, and multi-spectral imaging.
       The conferees recognize that:
       (1) the DARO needs to develop and field systems compliant 
     with the joint airborne SIGINT architecture (JASA);
       (2) the JASA effort is an important initiative for 
     providing future intelligence gathering capability; and
       (3) the Department needs to continue making incremental 
     upgrades to U-2 SIGINT capabilities to maintain near-term 
     capability, while the Department completes JASA development.


             distributed common ground system (project 531)

       The budget request included $55.3 million in project 531, 
     including $47.8 million for the common imagery ground/surface 
     system (CIGSS).
       The House bill would authorize an additional $11.0 million 
     to modify core CIGSS components to ensure the program can 
     achieve a common, interoperable baseline by fiscal year 1998. 
     The House report complimented the Department's technical 
     solutions and management approach to migrating the various 
     imagery ground stations to the CIGSS configuration and 
     standards as outlined in the published handbook.
       The Senate amendment would support the budget request.
       The conferees agree to support the budget request of $55.3 
     million for project 531.
     AC-130 aircraft enhancements, Special Operations Command
       The budget request included $83.9 million for tactical 
     systems development for the U.S. Special Operations Command 
     (SOCOM).
       The Senate amendment would authorize an increase of $5.8 
     million in PE 1160404BB for enhancements to the SOCOM AC-130 
     aircraft.
       The House bill would authorize the requested amount.
       The Senate recedes.
     Advanced SEAL delivery system
       The budget request included $83.9 million in PE 1160404BB 
     for special operations tactical development.
       In order to provide a significant improvement in the 
     acoustic characteristics of the advanced SEAL delivery system 
     (ASDS) before its procurement begins, the Senate amendment 
     would authorize an increase of $2.8 million above the budget 
     request in PE 1160404BB to provide quieter pumps and motors 
     for the base design of the ASDS.
       The House bill would authorize the requested amount.
       The House recedes.
     Rigid hull inflatable boat
       The budget request included $5.0 million for procurement of 
     special warfare equipment, including $4.5 million for 
     procurement of the Naval Special Warfare 10 meter Rigid Hull 
     Inflatable Boat (RHIB).
       The House bill would authorize an increase of $2.75 million 
     in PE 1160404BB to complete development and operational 
     testing of competing prototype RHIBs, a downselect decision 
     to a single contractor, and other activities relative to a 
     Milestone III decision for the RHIB in fiscal year 1997.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize the budget request.
       The conferees agree to authorize an increase of $4.5 
     million in PE 1160404BB to complete development and 
     operational testing of the RHIB as recommended in the House 
     report (H. Rept. 104-563). The conferees further agree to a 
     corresponding reduction in the amount authorized for 
     procurement of special warfare equipment.
     Ballistic missile defense funding and programmatic guidance
       The fiscal year 1997 budget requests for the Ballistic 
     Missile Defense Organization (BMDO) was $2.8 billion, 
     including research, development, test, and evaluation 
     (RDT&E), procurement, and military consideration.
       The House bill would authorize an increase of $724.8 
     million for BMDO.
       The Senate amendment would authorize an increase of $855.9 
     million for BMDO.
       The conferees agree to authorize a total of $3,712.9 
     million for BMDO, an increase of $914.2 million above the 
     budget request. The conferees' recommended funding 
     allocations are summarized in the following table. Additional 
     programmatic and funding guidance are also provided below.

                         BMDO FUNDING ALLOCATION                        
                          [Millions of dollars]                         
------------------------------------------------------------------------
              Program                Request     Change   Recommendation
------------------------------------------------------------------------
Support Technology................      226.3     +147.5         373.8  
THAAD.............................      481.8     +140.0         621.8  
Hawk*.............................       19.4  .........          19.4  
TMD-BM/C3*........................       19.3  .........          19.3  
Navy Lower Tier**.................      310.7  .........         310.7  
Navy Upper Tier...................       58.2     +246.0         304.2  
Corps SAM.........................       56.2  .........          56.2  
BPI...............................  .........      +24.3          24.3  
NMD...............................      508.4     +350.0         858.4  
Joint TMD***......................      521.5       +6.4         527.9  
    PAC-3**.......................      596.9  .........         596.9  
    BMDO Total....................    2,798.7     +914.2       3,712.9  
------------------------------------------------------------------------
*Procurement only.                                                      
**Procurement and RDT&E.                                                
***RDT&E and Military Construction.                                     

                           support technology

       The budget request for BMDO's support technology programs 
     (E 62173C/63173C) was $226.3 million. The conferees agree to 
     authorize a net increase of $147.5 million for support 
     technology.
       The conferees support BMDO's efforts in the area of wide 
     bandgap electronics that are funded in the Innovative Science 
     and Technology program (project 1651. The conferees agree to 
     authorize an increase of $10.0 million in PE 62173C to 
     facilitate a wide bandgap electronics program specifically 
     targeting gallium nitride and silicon carbide as the major 
     semiconductor technologies to be developed. The program 
     should be affiliated with an academic institution involving a 
     research and development facility for material growth, 
     material characterization (including material surface 
     behavior), and wide bandgap semiconductor device development.
       The conferees recommend an increase of $420.0 million in PE 
     63173C for United States-Russian cooperative BMD programs and 
     activities, as specified in the House report (H. Rep. 104-
     563).
       The conferees recommend an increase of $7.5 million in PE 
     63173C for the Scorpius space launch technology demonstration 
     program.
       The conferees strongly support BMDO's development of the 
     Atmospheric Interceptor Technology (AIT) program and 
     recommend an increase of $40.0 million in PE 63173C for the 
     AIT program.
       The conferees continue to support development of the Space-
     Based Laser (SBL) program. SBL offers the potential for a 
     high leverage system to deal with ballistic missiles of 
     virtually all ranges. The conferees agree to authorize an 
     increase of $70.0 million in PE 63173C to continue the SBL 
     effort. The conferees believe that the Air Force should begin 
     to take a much more active role in developing the SBL 
     program. Specifically, the committee believes that the Air 
     Force Space and Missile Systems Center should play a key role 
     in designing a demonstrator spacecraft and providing detailed 
     cost estimates for completion of such a demonstration 
     program.


               theater high altitude area defense system

       The budget request included $481.8 million to complete 
     Theater High Altitude Area Defense (THAAD) demonstration and 
     validation (Dem/Val) and to begin engineering and 
     manufacturing development (EMD). The conferees continue to 
     support the development, production, and fielding of THAAD as 
     a matter of highest priority. The conferees remain committed 
     to fielding the THAAD system as quickly as technically 
     feasible. The conferees agree to authorize an increase of 
     $75.0 million in PE 63861C and an increase of $65.0 million 
     in PE 64861C, an overall increase of $140.0 million for the 
     THADD program.
       The conferees also attach importance to the THAAD User 
     Operational Evaluation (UOES) system. This system will 
     provide valuable opportunities for training and testing. Most 
     importantly, it will provide some limited operational 
     capability in the event of a crisis. However, the conferees 
     question the adequately of a UOES capability based on 40 
     interceptor missiles. The conferees believe that a total of 
     80 missiles is more appropriate, and direct the Secretary of 
     Defense to include funding to acquire these additional 40 
     UOES missiles in the fiscal year 1998 budget request.
       The administration's proposed program for THAAD does not 
     include funding for a second EMD radar until very late in the 
     program. The conferees believe that there are many compelling 
     reasons to fund this radar earlier. Accordingly, the 
     conferees direct the Secretary of Defense to proceed with 
     acquisition of a second EMD radar in fiscal year 1997 and 
     agree to authorize $65.0 million in long-lead funding for 
     this purpose.
       The conferees strongly reject the idea that the THAAD 
     development program should be delayed so as to allow a ``fly-
     off'' between THAAD and the Navy Upper Tier system.
       The conferees understand that the Army plans to complete 
     THAAD dem/val flight testing at the White Sands Missile Range 
     and transition to flight testing at the Kwajalein Missile 
     Range for the EMD phase. The conferees support this plan.


                     navy upper tier (theater wide)

       The budget request included $58.2 million for continued 
     development of the Navy Upper Tier (Theater Wide) TMD system. 
     This is a significant reduction from the $200.4 million 
     authorized and appropriated in fiscal year 1996, and reflects 
     the low priority that the administration attaches to this 
     program. The conferees do not support the Department's 
     recommendation to delay the development and deployment of the 
     Navy Upper Tier system.
       The National Defense Authorization Act for Fiscal Year 1996 
     mandates that the Navy Upper Tier system become the fourth 
     ``core'' TMD system and establishes accelerated milestones 
     for this program. The conferees have not been made aware of 
     any technical reasons why a Navy Upper Tier capability cannot 
     be fielded on a much more aggressive schedule than proposed 
     by the administration.
       The conferees continue to support the Navy Upper Tier 
     system as a matter of priority. Sea-based upper tier TMD 
     capability provides an important complement to ground-based 
     systems, and each has unique attributes. Accordingly, the 
     conferees recommend a net increase in PE 63868C of $246.0 
     million to support an accelerated Navy Upper Tier program.
       The conferees are aware that BMDO has begun evaluating the 
     key modifications required for the THAAD kill vehicle to be a

[[Page H9243]]

     candidate for the Navy Upper Tier mission. The conferees 
     recommend the use of not more than $10.0 million to support 
     this effort in fiscal year 1997 from the overall amount 
     authorized for the Navy Upper Tier program, and not more than 
     $10.0 million from the overall amount authorized for THAAD 
     for this purpose.
       The conferees believe that the Navy, in conjunction with 
     BMDO, should assess the potential that development of a new 
     second stage motor for the Standard Missile could have for a 
     range of missile defense applications. Accordingly, the 
     conferees recommend the use of $10.0 million of the funds 
     authorized for Navy Upper Tier to initiate this second stage 
     motor development effort.


              corps sam/medium extended air defense system

       The budget request included $56.2 million for Corps 
     surface-to-air missile (SAM)/Medium Extended Air Defense 
     System (MEADS) program. The conferees endorse the MEADS 
     program, which is required to defend forward-deployed troops, 
     and approve the budget request, subject to limitation 
     specified elsewhere in this report.


           united states-israel boost phase intercept program

       In the Statement of Managers accompanying the National 
     Defense Authorization Act for Fiscal Year 1996, the conferees 
     endorsed a cooperative program between the United States and 
     Israel to develop a kinetic energy boost-phase intercept 
     program based on an unmanned aerial vehicle (UAV). The 
     conferees maintain their strong support for this concept. The 
     budget request included $9.3 million in the Joint TMD program 
     element (PE 63872C) to continue this effort. The conferees 
     recommend that these funds be transferred to the BPI program 
     element (PE 63870C) and that this amount be increased by 
     $15.0 million for a total authorization of $24.3 million.
       The conferees believe that the first step of this U.S.-
     Israel BPI program should be a joint technology risk 
     mitigation effort, aimed at reducing technological 
     uncertainties. If this proves successful, it can be followed 
     by an advanced technology demonstration to validate the 
     technical feasibility of the concept and the major system 
     elements. This would enable the United States and Israel to 
     evaluate the potential for a joint acquisition program or one 
     in which both countries continue to collaborate on separate 
     but mutually reinforcing efforts.


                        national missile defense

       The budget request included $508.4 million for National 
     Missile Defense (NMD). Based on information received from the 
     Department of Defense, the conferees do not believe that the 
     administration's proposed budget and program plan for NMD are 
     adequate even to meet the stated purpose of its ``deployment 
     readiness'' program. As acknowledged by the Director of BMDO 
     in congressional testimony, the planned test program for the 
     exoatmospheric kill vehicle (EKV) is inadequate to support a 
     deployment decision within the framework of the ``3+3'' 
     program. The administration's proposed NMD program consist of 
     just five EKV flights: two in fiscal year 1997; two in fiscal 
     year 1998; and one in fiscal year 1999. Under this plan, the 
     NMD deployment decision supposedly could be made at the end 
     of fiscal year 1999; however, such a decision would be based 
     on a single integrated interceptor test. Furthermore, the 
     test booster would not represent an operational 
     configuration.
       To support a lower risk and more robust NMD program, the 
     conferees believe that additional EKV flight tests are 
     required. Specifically, the conferees direct the Secretary of 
     Defense to restructure the EKV program to support two flight 
     tests in fiscal year 1997, three in fiscal year 1998, and 
     four in fiscal year 1999. This requires the acquisition of 
     additional kill vehicle and test booster hardware. 
     Additionally, the conferees direct the Secretary to evaluate 
     the advantages of upgrading the Payload Launch Vehicle (PLV) 
     system to provide a more representative velocity regime and 
     test environment for NMD system test. To accomplish these 
     objectives, and to ensure that other aspects of the NMD 
     program are able to support an initial operational capacity 
     (IOC) in fiscal year 2003 (which the administration's 
     proposal supposedly protects), the conferees recommend an 
     increase of $350.0 million in PE 63871C.
       The conferees commend the Under Secretary of Defense 
     (Acquisition and Technology) for his recent decision to 
     establish an NMD joint-service program office (JPO), and 
     direct the Director of BMDO to ensure full participation by 
     the Army, Navy, and Air Force in the JPO. In addition, the 
     committee directs the Director of BMDO to ensure that the EKV 
     and associated booster designs are compatible with the widest 
     possible range of NMD system architectures and basing modes. 
     The conferees direct that the Director of BMDO inform the 
     Senate Committee on Armed Services and the House Committee on 
     National Security of his plans in this regard not later than 
     February 15, 1997.
       The conferees note that the prototype ground-based radar 
     (GDR-P) is an important NMD system element, and the GBR-P is 
     scheduled to begin testing at U.S. Army Kwajalein Atoll 
     (USAKA) in 1998. This schedule must be maintained, or 
     accelerated, in order to realize cost savings associated with 
     leveraging the THAAD radar program and test schedule. Of the 
     amounts authorized in PE 63871C, the conferees recommend 
     $68.0 million for GBR-P in order to ensure that the radar is 
     available for integrated system testing in fiscal year 1998.
       The conferees recognize the importance of the Midcourse 
     Space Experiment (MSX) for collecting and analyzing 
     background data of use to future midcourse sensors such as 
     the Space Missile and Tracking System. The conferees are 
     concerned, however, that BMDO has failed to budget funds to 
     continue operations through the end of the expected lifetime 
     of the satellite. Therefore, the conferees strongly urge the 
     Director, BMDO to provide adequate funds in the fiscal year 
     1998 budget submission and over the Future Years Defense Plan 
     (FYDP) for MSX satellite operations.
       The conferees understand the importance of an effective 
     battle management/command, control, and communications (BM/
     C3) architecture to overall NMD system performance and 
     reliability. In this regard, the conferees are aware of 
     proposals to leverage existing TMD BM/C3 capabilities, 
     including such capabilities being developed under the THAAD 
     program, to support an NMD system. The committee therefore 
     urges the Director, BMDO to study these proposals and inform 
     the committee not later than February 15, 1997, of his views 
     in this regard.


                      joint national test facility

       The budget request included $5.8 million for Joint National 
     Test Facility (JNTF) modernization, split among program 
     elements 63871C, 63872C, and 63173C. To adequately satisfy 
     the complex missile defense integration requirements leading 
     to successful joint tests, analysis, war gaming, CINC 
     exercises, and acquisition support, the conferees recommend 
     $15.0 million be made available for modernization, 
     computational and wide area network capabilities in support 
     of the Ballistic Missile Defense Network (BMDN) from within 
     the program elements listed above.


                               management

       The budget request did not contain a separate program 
     element for management.
       The House bill recommended a general reduction of $15.0 
     million for management.
       The Senate did not recommend a reduction for management.
       The House recedes.


                     joint theater missile defense

       The budget request included $521.5 in BMDO's Joint TMD 
     program element (formerly known as Other TMD). The committee 
     recommends a net increase of $6.4 million in PE 63872C, 
     including the following adjustments: (1) a transfer of $9.3 
     million to the BPI program element for the U.S.-Israel Joint 
     BPI program; (2) an increase of $3.7 million for the Arrow 
     Deployability Project (ADP), for a total authorization of 
     $35.0 million to fully fund the U.S. share of the program 
     envisioned in the recently completed Memorandum of Agreement 
     between the United States and Israel; (3) an increase of $7.0 
     million for the Army's Advanced Research Center (ARC), for a 
     total authorization of $15.0 million; and (4) an increase of 
     $5.0 million for BMDO to ensure that the Navy's Cooperative 
     Engagement Capability is compatible with all of BMDO's core 
     TMD programs.
     Holloman high speed test track
       The budget request included $116.0 million for the Central 
     Test and Evaluation investment development program (PE 
     64940D).
       The Senate amendment would authorize an increase of $17.0 
     million in PE 64940D for the joint high speed upgrade for the 
     Holloman High Speed Test Track.
       The House recedes.


                       items of special interest

     Anti-submarine warfare program
       The budget request included $49.6 million in PE 62314N for 
     exploratory development of advanced undersea warfare 
     surveillance technologies.
       The House bill would authorize an increase of $21.0 million 
     to the budget request to accelerate the development of 
     advanced anti-submarine warfare (ASW) technologies.
       The Senate amendment would authorize the budget request.
       The House recedes.
       In the statement of managers accompanying the conference 
     report on the National Defense Authorization Act for Fiscal 
     Year 1996 (H. Rept. 104-450), the conferees directed the 
     Secretary of Defense to assess the current and projected U.S. 
     ASW capability in light of the continuing development of 
     quieter nuclear submarines, the proliferation of very capable 
     diesel submarines, the sale of sophisticated, submarine 
     launched weapons, and the declining trend in budget resources 
     associated with ASW program. The assessment was expected to 
     identify both short-term and long-term improvements that are 
     needed to cope with the evolving submarine threat in both 
     littoral and open ocean areas. The conferees directed that 
     the results of this assessment and the plan for the U.S. ASW 
     program be reported to the congressional defense committees 
     by July 1, 1996.
       The conferees' comments on the Secretary's assessment are 
     included in the classified annex to this statement of 
     managers.
     Battle group airborne anti-submarine warfare
       The report accompanying the Senate amendment (S. Rept. 104-
     267) expressed concern about the Navy's slow progress in 
     planning for and funding organic battle group airborne anti-
     submarine warfare (ASW) systems suitable for countering the 
     existing and projected littoral ASW threat. The report 
     acknowledged the reality of current budgetary constraints, 
     but also emphasized the need for

[[Page H9244]]

     a solid conceptual plan, supported by adequate resources, to 
     meet the evolving littoral ASW threat.
       The Senate report expressed the opinion that the Navy's 
     overall plan for modernizing its H-60 series helicopters has 
     not met these criteria. It opined that the plan's broad 
     concept, to convert existing H-60 variants into a multi-
     mission SH-60R helicopter and introduce it by fiscal year 
     2001 as a complement to introduction of DDG-51 Flight IIA 
     destroyers into the fleet, appears sound. However, the mix of 
     aircraft to be converted and the funding programmed to 
     implement this concept have remained in a state of flux for 
     the past two years. For example, the Navy's integrated 
     helicopter plan for fiscal year 1997 reversed the Navy's 
     previous decision to convert aircraft carrier based SH-60F 
     ASW helicopters to HH-60H combat/utility helicopters. 
     Instead, the new plan would convert these SH-60F helicopters 
     to the SH-60R configuration. Some would be converted in the 
     near term to fill surface combatant requirements, but the 
     balance of the SH-60Fs would not undergo conversion until 
     after fiscal year 2006.
       Last year, the Navy's fiscal year 1996 helicopter plan 
     would not have converted some 60 SH-60Fs to the SH-60R 
     configuration. The statement of managers accompanying the 
     National Defense Authorization Act for Fiscal Year 1996 
     directed the Secretary of the Navy to evaluate the cost 
     effectiveness of a modernization program for the dipping 
     sonars installed on these helicopters. Because the fiscal 
     year 1997 plan now calls for conversion of these 60 
     helicopters to the SH-60R configuration, implying eventual 
     installation of the airborne low frequency dipping sonar 
     (ALFS), a different set of assumptions applies, and different 
     questions have emerged.
       Although the 60 SH-60F helicopters are now to be converted 
     to the SH-60R configuration, most of these conversions will 
     not occur for at least 10 to 15 years. The conferees are 
     concerned about whether the dipping sonars presently 
     installed on these carrier based SH-60F helicopters are now, 
     or will remain, suitable for the littoral ASW operations 
     envisioned by the Navy's strategic concept ``Forward . . . 
     From the Sea'' during this 15 year period.
       To help resolve their uncertainty, the conferees direct the 
     Secretary of the Navy to develop a plan, containing decision 
     options, that would ensure that its carrier based SH-60F 
     helicopters not scheduled for conversion to the SH-60R in the 
     near term, i.e., the helicopters that will remain responsible 
     for inner-zone battle group ASW, are equipped with a dipping 
     sonar, including possible modifications to the presently 
     installed sonar, that is suitable, and will remain suitable, 
     for littoral ASW operations. The Secretary is directed to 
     submit this plan no later than March 1, 1997.
     Chemical and biological defense program
       The budget request included a total of $505.0 million for 
     the chemical-biological defense program, including $296.8 
     million in research and development, test and evaluation and 
     $208.2 million in procurement.
       The House bill would authorize an increase of $44.3 million 
     for research, development, test and evaluation, and an 
     increase of $16.2 million in the operations and maintenance 
     accounts ($13.2 million for Army and $3.0 million for the Air 
     Force).
       The Senate bill would authorize the budget request.
       The conferees agree to provide an increase to the budget 
     request of $16.2 million for shortfalls in operations and 
     maintenance ($13.2 million in the Army account and $3.0 
     million in the Air Force account).
       The conferees remain concerned with findings contained in 
     the March 1996 General Accounting Office (GAO) report on 
     chemical and biological defense. While the GAO report notes 
     improvement in the readiness of U.S. military forces to 
     operate in a chemical or biological environment, the report 
     also identifies continued deficiencies in the areas of 
     chemical-biological defense training; inadequacy of the 
     biological vaccine stockpile; development and implementation 
     of a DOD immunization policy; and adequacy of training and 
     equipment for medical personnel. In this regard, the 
     conferees express concern with the Department's management 
     and oversight of the chemical and biological defense program.
       The conferees direct the Deputy Secretary of Defense to 
     review and report back to the Congress on steps taken by the 
     Department to correct deficiencies highlighted by the GAO 
     report, to include a decision on the development and 
     implementation of a DOD immunization policy. The conferees 
     agree that it is essential that a decision be made on the 
     vaccines to be stockpiled and on an immunization policy. 
     Further the conferees agree that it is essential that medical 
     personnel assigned to deploy with U.S. military forces to 
     high threat areas have the necessary training and equipment 
     to protect themselves against chemical or biological agents, 
     and the necessary training and equipment to treat casualties 
     in a chemically or biologically contaminated area.
     Composite materials insertion for fielded weapon systems
       The House bill would direct the Secretary of Defense to 
     institute a composite materials insertion program in the 
     military services and cited a number of material technologies 
     to be considered. The conferees clarify that the Secretary 
     may include other materials, such as polymer based 
     composites, in the program at his discretion.
     Dredge spoil disposal
       The House bill would authorize an increase of $2.5 million 
     in PE 62233N to investigate potential low cost alternatives 
     to the current methods of disposal or reclamation of dredge 
     spoils.
       The Senate amendment contained no similar provision.
       The conferees could not provide an authorization since the 
     project was not appropriated by either appropriations 
     committee. The conferees believe, however, that the Navy must 
     begin to look at alternative technologies to reduce the cost 
     of processing dredged material which it will incur as it 
     faces the costly challenge of dredging the 15 ports it cites 
     will require dredging over the next 15 years.
     Electron scrubber technology
       The electron scrubber (e-SCRUB) technology may potentially 
     be used to eliminate or reduce pollutants that cause acid 
     rain, air toxins, and volatile organic compounds from off gas 
     generated by incinerators. It may also be used in the 
     treatment of waste water. The technology combines electron 
     beam flue gas scrubbing treatment with high average electron 
     beam technology. Under the Strategic Defense Initiative, the 
     Defense Nuclear Agency (DNA) directed the development of e-
     SCRUB as an antimissile technology. Several years ago, it was 
     first evaluated as an environmental compliance technology 
     under the Strategic Environmental Research and Development 
     Program (SERDP).
       The conferees have followed with interest the progress of 
     the e-SCRUB technology under SERDP. The conferees note that 
     SERDP development and testing of the technology was hindered 
     by program funding reductions, the lack of relevance to the 
     Department of Defense (DOD) environmental requirements, and 
     poor performance.
       In fiscal year 1995, DNA submitted a proposal for funding 
     of the e-SCRUB technology under the Environmental Security 
     Technology Certification Program (ESTCP). In order to receive 
     favorable consideration for ESTCP participation, the proposal 
     would have to satisfy a high priority need, be technically 
     mature, project a high return on investment, and include an 
     appropriate transition plan. A panel of experts reviewed the 
     technology and determined that it was not ripe for ESTCP 
     support.
       The conferees have remaining concerns regarding the 
     technical maturity, the overall cost, and the utility to DOD. 
     However, proponents of the e-SCRUB technology maintain that 
     it is ready for prototyping and demonstration, and that it 
     will benefit major DOD maintenance and operation facilities 
     confronted with significant air and water pollution problems. 
     It is claimed that many of the significant problems 
     associated with early development of the e-SCRUB technology 
     have been overcome.
       The conferees direct the Department to conduct another 
     review of the e-SCRUB technology to determine if it meets the 
     criteria for demonstration and validation of technology 
     relevant to the Department's environmental needs. If the 
     technology has no relevance or fails to meet the Department's 
     criteria, the Secretary of Defense shall submit a report to 
     the congressional defense committees describing those 
     findings. If the technology is relevant and meets the 
     Department's criteria, the Secretary shall use no more than 
     $2.0 million from available funds to complete demonstration 
     and validation through ESTCP or the National Defense Center 
     of Environmental Excellence.
     FFG-7 modernization
       The Navy now plans to retain more of its FFG-7s in active 
     and reserve status than had been previously planned. Heavy 
     operational demands have caused the Navy to reverse an 
     earlier decision to retire most of the FFG-7 class of ships. 
     While the Navy has not made a final decision on the total 
     number that will be retained, it is likely that the Navy will 
     retain a portion of them in active service until at least 
     2010. The ships that will remain available include 12 that 
     have the coherent receiving transmitter (CORT) installed. 
     There are an additional 11 flight 3 and flight 4 ships that 
     form a separate subclass. They are somewhat less capable than 
     the CORT ships but are presently planned to remain in active 
     service. The Navy intends to transition the remaining ships 
     of the FFG-7 class to naval reserve force, ready reserve 
     force or foreign military sales status.
       The conferees appreciate the Navy's rationale in retaining 
     some FFG-7s in service. However, it would now appear prudent 
     to evaluate the ability of these ships to deal with evolving 
     threats during their remaining service life. Factors for 
     consideration include:
       (1) the FFG-7 class has several different configurations, 
     some have an updated anti-air warfare (AAW) system, while 
     others have a more capable anti-submarine warfare (ASW) 
     weapons system;
       (2) the FFG-7 class was originally developed as a design-
     to-cost, open ocean, anti-submarine escort, and was not 
     optimized for near land operations or countering advanced 
     sea-skimming cruise missiles; and
       (3) several groups have approached the committee during its 
     review of the fiscal year 1997 budget request, asserting that 
     relatively inexpensive off-the-shelf upgrades are available 
     that will provide the FFG-7 class with the capabilities 
     needed to counter modern threats.

[[Page H9245]]

       The conferees want the Navy to clarify its intentions for 
     modernizing the FFG-7 class. Therefore, the conferees direct 
     the Secretary of the Navy to prepare a report on options for 
     modernizing the FFG-7 class and submit that report with the 
     fiscal year 1998 budget request. The report should include, 
     but need not be limited to, answers to the following 
     questions:
       (1) what are the threats that will likely be encountered in 
     operational situations where the FFG-7s might be employed?
       (2) what priority does the Navy place on modernizing the 
     FFG-7 class to deal with these threats?
       (3) what are the alternatives for buying off-the-shelf 
     upgrade packages that could defeat these threats?
       (4) would buying off-the-shelf upgrade packages be cost 
     effective relative to potential development programs? and,
       (5) what would be a reasonable funding and installation 
     program to procure and install either off-the-shelf packages 
     or upgrade packages deriving from a development program?
     Integrated avionics
       Congress has frequently expressed concern over the 
     proliferation of avionics systems for strategic and tactical 
     aircraft. Congressional reports dating back to fiscal year 
     1980 brought attention to the fact that there were over 
     thirty discrete defensive avionics systems designed and 
     developed to counter the same threat.
       During the past decade, the Department of Defense has made 
     some progress in fostering commonality among the military 
     services. The Joint Integrated Avionics Working Group (JIAWG) 
     has advanced the goal of developing common integrated 
     avionics. It is important that this progress continue.
       The conferees reiterate the need for joint integrated 
     avionics to improve performance and substantially reduce the 
     operational and maintenance cost associated with aircraft 
     avionics.
     Lithography
       The conferees support the pursuit of extreme ultraviolet 
     (EUV) lithography aimed at the fabrication of 100 nanometer 
     design rule structures to support nanowriters, 
     nanofabrication prototypes, and the facilities for short 
     wavelength meterologies, calibration and standards. The 
     conferees recognize its potential as the technology of choice 
     of the next generation short wavelength tools for the 
     industry and encourage the Department of Defense to consider 
     using $10.0 million, of the total authorization for 
     lithography, for EUV technologies.
     Materials nanostructures
       The conferees recognize that there is no appropriation to 
     accelerate this program. The conferees recognize the 
     potential of the emerging field of material nanostructures. 
     This regime of science offers the opportunity to integrate 
     inorganic and organic chemistry and physics at the material 
     formative dimension that will impact microelectronics, 
     micromachines, molecular level controllers and switches, 
     among many other applications. Nanostructures have the 
     potential to revolutionize future military technological 
     superiority. The conferees urge the Department of Defense to 
     devote additional funds to the development of these promising 
     technologies.
     Molecular design
       Although there was no additional funding appropriated above 
     the Department of Defense's request that would allow the 
     conferees to consider any additional authorization for the 
     molecular design program, the conferees fully endorse the 
     current program in the Office of Naval Research (ONR) and 
     urge its continuance. The conferees agree that the scientific 
     investigations into the molecular synthesis of atoms as 
     foundational building blocks of new material nanostructures 
     will lead to a culture shift that will allow ``cross-cuts'' 
     in scientific disciplines of chemistry, biology and physics 
     to occur. The conferees commend ONR, the Defense Advanced 
     Research Projects Agency, and those universities 
     participating in innovative research for their initiatives in 
     this revolutionary direction of science. The conferees urge 
     continued funding support by the Department.
     Nickel-zinc battery technology
       The military services have requirements for low cost, high 
     energy density batteries with high power capability and low 
     maintenance requirements. The conferees have become aware of 
     emerging technology for a state-of-the-art, high energy 
     density nickel-zinc battery, which would be significantly 
     cheaper, lower maintenance and more durable than the silver-
     zinc batteries now in service use, and would not carry the 
     same environmental penalties as a silver-zinc and nickel-
     cadmium batteries. The conferees encourage the Secretary of 
     the Navy to develop and demonstrate high energy density 
     nickel-zinc battery technology that could provide great 
     potential for a low cost, high performance replacement for 
     nickel-cadmium aircraft batteries and for other applications.
     Plasma Energy Pyrolysis System
       The conferees support the ongoing joint effort between the 
     U.S. Army Environmental Center/Environmental Technology 
     Division and the Tennessee Valley Authority/Muscle Shoals 
     Environmental Research Center to develop, demonstrate, and 
     validate the Plasma Energy Pyrolysis System (PEPS) 
     technology. The conferees urge the Department of Defense to 
     continue its activity in this area with available funds. The 
     Department of the Army shall report to the congressional 
     defense committees on the feasibility of this technology not 
     later than April 30, 1997.


                         legislative provisions

              Subtitle A--Authorization of Appropriations


                     legislative provisions adopted

     Dual use technology program (sec. 203)
       The House bill contained a provision (sec. 203) that would 
     require the Secretary of Defense to designate a senior 
     official, reporting directly to the Under Secretary of 
     Defense for Acquisition and Technology, whose sole 
     responsibility would be to develop policy and ensure 
     effective execution of dual use programs and integration of 
     commercial technologies into military systems. Further, the 
     provision would require that not less than five, seven, ten, 
     and fifteen percent, respectively for each of fiscal years 
     1997-2000, of each service's science and technology program 
     be available only for dual use cost-shared programs. The 
     provision would prohibit the use of ``in-kind'' contributions 
     as a part of non-Federal entity participation in dual use 
     projects. The provision also modified the other transaction 
     authorities of the Department.
       The conferees agree to a provision that would require 
     designation of an official to manage dual use programs 
     governed by this provision and a requirement for at least 
     five percent of the amounts appropriated for science and 
     technology programs for fiscal year 1997 by available for 
     dual use programs. In addition, the conferees agree to 
     authorize $85.0 million in PE 63805E for this purpose and 
     direct that the management of these funds to under the 
     jurisdiction of the person designated by the Secretary of 
     Defense to manage dual use programs. The Secretary would be 
     required to submit with the fiscal year 1998 budget request 
     the Department's outyear funding strategy for this dual use 
     program.
       The conferees agree to modify the House provision to allow 
     ``in-kind'' contributions as a part of non-Federal entity 
     participation in dual use projects. The conferees direct the 
     official managing dual use programs in the Department of 
     Defense to develop a set of consistent and equitable 
     procedures for the treatment of the in-kind contributions. 
     The official shall ensure that such procedures are consistent 
     with the guidance on this issue contained in the Senate 
     report (S. Rept. 104-267).
     Defense Special Weapons Agency (DSWA) formerly known as the 
         Defense Nuclear Agency (DNA) (sec. 204)
       The budget request included $314.3 million for the Defense 
     Nuclear Agency (DNA).
       The Senate amendment contained provisions (secs. 109, 203, 
     and 303) that would authorize a $15.0 million increase to the 
     budget request for the Defense Nuclear Agency (DNA) to 
     increase the frequency of nuclear weapons incidents field 
     training exercises ($3.0 million defense operations and 
     maintenance); to establish a counter terrorism support 
     program leveraging DNA capabilities developed during the Cold 
     War, and to establish a nuclear weapons delivery sustainment 
     program ($12.0 million in research and development, PE 
     62715H).
       The House bill would reduce the budget request for DNA by 
     $3.0 million. Additionally, it would deny $7.0 million 
     requested for the Topaz International Program (project AX), 
     and would make available $4.0 million to continue the counter 
     terrorist explosives research program.
       The conferees agree to a provision that would authorize 
     $314.3 million for DNA ($192.1 million in PE 62715H, $26.2 
     million in PE 63711H, $88.1 million in operations and 
     maintenance, and $7.9 million in procurement). Of the amount 
     available in PE 62715H, the conferees agree that funds shall 
     be available for the following activities/programs: $4.0 
     million for the continuation of the counter terrorism support 
     program; $3.0 million for Deep Digger; and $12.0 million to 
     establish a nuclear weapons delivery sustainment program.
       Included in the budget request for DNA was $7.0 million for 
     the Topaz International program (project AX). The conferees 
     have reviewed the assessment conducted by the National 
     Research Council of this program. The conferees agree with a 
     number of conclusions and recommendations reached by the NRC. 
     Substantial amounts of money have been spent, both by the 
     United States and Russia, to develop space nuclear power. 
     Despite the identification of space reactor power as a 
     potential enabler for future missions, no potential users of 
     mission requirements have been identified.
       Accordingly, the conferees deny the budget request for the 
     Topaz International Program (project AX). The conferees 
     understand that of the funds authorized for this program for 
     fiscal year 1996, $4.6 million remained unobligated and 
     unexpended. The conferees recommend that $3.0 million be used 
     to terminate the program. A substantial amount of money has 
     been spent over the decades on various space nuclear reactor 
     power technologies. To save this investment for potential 
     future use, the conferees recommend that all information and 
     technology related to the Topaz international program and the 
     U.S. space nuclear reactor power technology program be 
     deposited in a central repository.

[[Page H9246]]

    Subtitle B--Program Requirements, Restrictions, and Limitations


                     LEGISLATIVE PROVISIONS ADOPTED

     Space launch modernization (sec. 211)
       The House bill contained a provision (sec. 211) that would: 
     (1) authorize $50.0 million for a competitive reusable space 
     launch vehicle (RLV) program; and (2) permit obligation of 
     the authorized funds only to the extent that the current 
     operating plan of the National Aeronautics and Space 
     Administration (NASA) allocates at least an equal amount for 
     the RLV program.
       The Senate amendment contained a provision (sec. 211) that 
     would: (1) authorize $44.5 million for the Evolved Expendable 
     Launch Vehicle program and $25.0 million for a competitive 
     reusable launch vehicle technology program; (2) prohibit the 
     use of DOD funds for RLV in an amount in excess of that 
     dedicated to the program by NASA; and (3) prohibit the 
     obligation of funds authorized for the Evolved Expendable 
     Launch Vehicle (EELV) program in fiscal year 1997 until the 
     Secretary of Defense certifies that funds authorized to be 
     appropriated for RLV have been made available for obligation.
       The House recedes with an amendment that would: (1) 
     authorize $44.5 million for the Evolved Expendable Launch 
     Vehicle program and $25.0 million for a competitive reusable 
     launch vehicle program; (2) permit obligation of the funds 
     authorized for RLV only to the extent that the current 
     operating plan of NASA allocates at least an equal amount for 
     the RLV program; (3) limit the obligation of funds for EELV 
     to $20.0 million until the Secretary of Defense makes 
     available for obligation funds authorized for RLV; and (4) 
     require the Secretary of Defense and the Administrator of the 
     National Aeronautics and Space Administration to submit to 
     Congress a joint plan for coordinating and eliminating 
     unnecessary duplication in the operations and planned 
     improvements of rocket engine test facilities managed by the 
     Air Force and NASA.
     Space-Based Infrared System program (sec. 212)
       The House bill contained a provision (sec. 219) that would 
     authorize funds for the Space-Based Infrared System (SBIRS) 
     program, prohibit the obligation of expenditure of funds 
     until the Secretary of Defense issues a certification to 
     Congress, and direct the Secretary to consider the 
     appropriate management responsibilities for the Space and 
     Missile Tracking System (SMTS) program.
       The Senate amendment contained a similar provisions (sec. 
     213).
       The Senate recedes with an amendment that would authorize 
     $427.4 million for the SBIRS program ($173.3 million for 
     SBIRS Space Segment High, $247.2 million for SMTS, and $6.9 
     million for Cobra Brass), prohibit the obligation of 
     expenditure of more than $100.0 million for SBIRS Space 
     Segment High until the Secretary of Defense issues a 
     certification to Congress, and direct the Secretary to 
     consider the appropriate management responsibilities for the 
     SMTS program.
       The conferees are disappointed by the Department of 
     Defense's management of the SMTS program. The Department has 
     yet to present the revised SMTS program baseline as required 
     by section 216 of the National Defense Authorization Act for 
     Fiscal Year 1996. Additionally, poor management practices on 
     the part of the Air Force, the Office of the Secretary of 
     Defense, and the contractor have forced delays in the SMTS 
     program. The conferees are particularly disappointed by the 
     Department of Defense's decision to recommend for rescission 
     $51.0 million for fiscal year 1996 funds authorized and 
     appropriated for SMTS acceleration and competition. Shortly 
     after recommended these funds for rescission, the Department 
     endorsed a plan for enhanced competition. The Department's 
     handling of the fiscal year 1996 SMTS funding and its on-
     again, off-again approach to competition is not acceptable. 
     The conferees direct the Secretary of Defense to promptly 
     complete the program baseline specified in section 216 of the 
     National Defense Authorization Act for Fiscal Year 1996, and 
     to promptly release the additional funds authorized for SMTS 
     for fiscal year 1997 for purposes of accelerating the 
     program.
     Clementine 2 micro-satellite development program (sec. 213)
       The Senate amendment contained a provision (sec. 215) that 
     would authorize $50.0 million for the Clementine 2 mico-
     satellite near-earth interception mission. The provision 
     would also prohibit the obligation of any funds for the 
     Global Positioning System (GPS) Block IIF satellite 
     development program until the Secretary of Defense certifies 
     to Congress that the fiscal year 1996 funds for Clementine 2 
     have been obligated and the fiscal year 1997 funds for 
     Clementine 2 have been made available for obligation.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     $50.0 million for the Clementine 2 micro-satellite near-earth 
     asteroid mission and would prohibit the obligation of more 
     than $25.0 million for GPS Block IIF until the Secretary of 
     Defense certifies that fiscal year 1997 funds for Clementine 
     2 have been made available for obligation.
     Live-fire survivability testing of V-22 Osprey aircraft (sec. 
         214)
       The House bill contained a provision (sec. 212) which would 
     permit the Secretary of Defense to waive the survivability 
     testing requirements of section 2366(c) of title 10, United 
     States Code, notwithstanding the fact that the V-22 tilt-
     rotor aircraft has already entered engineering and 
     manufacturing development. The provision would require the 
     Secretary to report to the Congress on how the Secretary 
     plans to evaluate the survivability of the V-22 aircraft, his 
     assessment of possible alternatives to realistic 
     survivability testing of the aircraft, and alternative 
     survivability test requirements for the conduct of any 
     alternative live-fire test program. The provision would also 
     require that funds required for alternative live-fire testing 
     of the V-22 shall be made available from amounts appropriated 
     for the V-22 program.
       The Senate amendment contained a similar provision (sec. 
     242), but allowed rather than directed the use of V-22 
     program funds to carry out the tests.
       The Senate recedes.
     Live-fire testing of the F-22 aircraft (sec. 215)
       The House bill contained a provision (sec. 213) that would 
     provide authority to the Secretary of Defense to waive 
     certain live fire testing required by section 2366 of title 
     10, United States Code.
       The Senate amendment contained a similar provision.
       The conferees agree to a provision (sec.   ) that would 
     provide the Secretary of Defense the waiver authority and 
     further require that alternative survivability testing be 
     funded from funds appropriated from the F-22 program.
     Limitation on funding for F-16 tactical manned reconnaissance 
         aircraft (sec. 216)
       The House bill contained a provision (sec. 216) that would 
     establish a limitation of $50.0 million on the total 
     obligations and expenditures of the Department of Defense for 
     the F-16 tactical manned reconnaissance aircraft program for 
     research, development, test, evaluation, acquisition, and 
     modification. The provision would exempt from limitation the 
     obligations for the incorporation of the common data link.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Cost analysis of F-22 aircraft program (sec. 217)
       The Senate amendment contained a provision (sec. 218) that 
     would direct the Secretary of Defense to review, analyze and 
     estimate the production costs of the F-22 aircraft program 
     using the Cost Analysis Improvement Group to complete the 
     study. Detailed requirements for the report were outlined in 
     the provision, and a date of March 30, 1997 was given for the 
     completion of the report. A limitation on the use of funds 
     for the F-22 program was also included pending receipt of the 
     report.
       The House bill contained no similar provision.
       The House recedes.
     F-22 aircraft program reports (sec. 218)
       The Senate amendment contained a provision (sec. 219) that 
     would require the Secretary of Defense to submit reports to 
     congress on event-based decision making when submitting the 
     budget for an upcoming fiscal year. Reports of decisions 
     made, comparing previously defined criteria and decision 
     outcomes, would also be required.
       The House bill contained no similar provision.
       The House recedes.
     Cost-benefit analysis of the F/A-18E/F aircraft program (sec. 
         219)
       The Senate amendment contained a provision (sec. 228) that 
     would require the Secretary of Defense to submit a report to 
     the congressional defense committees on the F/A-18E/F 
     program, comparing the costs and benefits of the F/A-18C/D 
     with the F/A-18E/F. Not more than 90 per cent of the funds 
     appropriated for the F/A-18E/F could be obligated or expended 
     on the F/A-18E/F until 30 days after the date of receipt of 
     the report by the congressional defense committees.
       The house bill contained no similar provision.
       The House recedes.
     Joint Advanced Strike Technology (JAST) program (sec. 220)
       The House bill contained a provision (sec. 220) that would 
     preclude the obligation of funds for the Advanced Short 
     Takeoff and Vertical Landing variant of JAST, and require an 
     analysis of force structure alternatives and associated 
     costs.
       The Senate amendment contained no similar provision, but 
     would provide an additional $13.0 million for alternate 
     engine concepts.
       The Senate recedes with an amendment that would remove the 
     prohibition on the obligation of funds for the Advanced Short 
     Takeoff and Vertical Landing variant of JAST, but would 
     retain the provisions in the House bill requiring an analysis 
     of future force structure needs and existing alternatives to 
     the JAST program.
       The conferees agree to provide the additional $13.0 million 
     as identified in the Senate report (S. Rept. 104-267) for 
     competitive engine initiatives.
     Unmanned aerial vehicles (sec. 221)
       The House bill contained a provision (sec. 217) that had 
     five sections addressing unmanned aerial vehicle (UAV) 
     programs. The sections would:
       (1) prohibit the Secretary of Defense from entering into a 
     contract for the Joint Tactical Unmanned Aerial Vehicle 
     project until 30 days after certification was received by the 
     Congressional defense committee of the

[[Page H9247]]

     justification and affordability of various reconnaissance 
     programs;
       (2) require a clear depiction of reconnaissance budget 
     requests;
     (3) transfer management of the Predator program to the 
     Department of the Air Force;
       (4) prohibit the obligation of funds to operate Predator 
     UAV's from naval vessels; and
       (5) provide $10.0 million for advanced concepts technology 
     demonstrations of air-to-surface precision guided munitions 
     employment using a UAV and a non developmental laser target 
     designator.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would remove the 
     following sections:
       (1) the prohibition on entering into contracts on the Joint 
     Unmanned Aerial Vehicle, and
       (2) authorization of $10.0 million for an ACTD of air to 
     surface precision guided munitions employment using a UAV and 
     a non developmental laser target designator.
     High altitude endurance unmanned aerial reconnaissance system 
         (sec. 222)
       The House bill contained a provision (sec. 223) that would 
     require that any funds authorized to be appropriated for an 
     improved Tier III Minus High Altitude Endurance Unmanned 
     Aerial Reconnaissance System that would increase the unit 
     flyaway cost above the established contracted for amount be 
     awarded through competitive acquisition procedures.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Cyclone class patrol craft self-defense (sec. 223)
       The Senate amendment contained a provision (sec. 225) that 
     would direct the Secretary of Defense to carry out a study 
     through the Commander in Chief of the U.S. Special Operations 
     Command (USSOCOM) of self-defense options for USSOCOM's 
     Cyclone class patrol craft and report the results to the 
     Committee on Armed Services of the Senate and the Committee 
     on National Security of the House of Representatives.
       The House bill contained no similar provision.
       The House recedes with an amendment.
     One-year extension of deadline for delivery of Enhanced Fiber 
         Optic Guided Missile (EFOG-M) system (sec. 224)
       The House bill contained a provision (sec. 243) that would 
     amend Section 272(a)(2) of the National Defense Authorization 
     Act for fiscal year 1996 (Public Law 104-106; 110 Stat. 239) 
     by striking out ``September 30, 1998,'' and insert 
     ``September 30, 1999'' that would extend the deadline for 
     delivery of the EFOG-M systems.
       The Senate amendment contained no similar provisions.
       The Senate recedes.
     Hydra-70 rocket product improvement program (sec. 225)
       The budget request included $6.2 million for enhancements 
     to existing missile programs.
       The House bill included a provision (sec. 218) that would 
     authorize an increase of $15.0 million for at least one 
     composite motor type Hydra-70 missile evaluation on the 
     Apache helicopter.
       The Senate amendment would authorize an increase of $9.0 
     million for a Hydra-70 missile evaluation and an additional 
     $4.5 million to develop and qualify an insensitive rocket 
     motor as well as to support minor software improvements for 
     the Hellfire missile.
       The conferees agree to a provision (sec. 225) that would 
     authorize $9.0 million for the Hydra-70 evaluation. An 
     additional $3.9 million is authorized for Hellfire missile 
     insensitive rocket motor development, for a total of $19.1 
     million in PE 23802A.
     Federally-funded research and development centers (sec. 226)
       The Senate amendment contained a provision (sec. 222) that 
     would impose a combined ceiling on the funding that may be 
     provided to both federally-funded research and development 
     centers (FFRDCs) and university-affiliated research centers 
     (UARCs) fiscal year 1997 at the same level as that imposed 
     for fiscal year 1996.
       The House bill contained no similar provision.
       The House recedes with an amendment that would remove the 
     UARCs from the ceiling and would limit the statutory funding 
     ceiling for FFRDCs at the level reflected in projected 
     expenditures for studies and analyses FFRDCs in the fiscal 
     year 1997 budget request. The conferees direct that funds 
     expended by an FFRDC on recapitalization not be limited by 
     the amount of the ceiling allocated to that FFRDC by the 
     Department of Defense. The conferees direct that management 
     of the FFRDCs be undertaken consistent with the direction in 
     the House report (104-563) and Senate report (104-267).
       The conferees note the continued importance of maintaining 
     within the FFRDC community an international trade and 
     technology support capability as described in the Senate 
     report (104-112) to accompany the National Defense 
     Authorization Act for Fiscal Year 1996. The conferees urge 
     the Under Secretary of Defense for Acquisition and Technology 
     to ensure that this capability is continued at an appropriate 
     FFRDC and that sufficient funding be allocated to maintain it 
     at a robust level of effort.
     Demilitarization of conventional munitions, rockets, and 
         explosives (sec. 227)
       The House bill contained a provision (sec. 214) that would 
     authorize $15.0 million for the demilitarization of 
     conventional munitions, explosives and rockets, and would 
     require the Secretary of Defense to establish a five year 
     program for the development and demonstration of 
     environmentally compliant technologies for the disposal and 
     demilitarization of conventional munitions, explosives, and 
     rockets.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Research activities of the Defense Advanced Research Projects 
         Agency relating to chemical and biological warfare 
         defense technology (sec. 228)
       The House bill contained a provision (sec. 215) that would 
     amend provisions of Title XVII of the National Defense 
     Authorization Act of Fiscal Year 1994 (Public Law 103-160) to 
     clarify the role of the Defense Advanced Research Projects 
     Agency in the Department of Defense's research and 
     developments efforts related to chemical and biological 
     warfare defense technologies.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Certification of capability of United States to prevent 
         illegal importation of nuclear, biological, or chemical 
         weapons (sec. 229)
       The House bill contained a provision (sec. 224) that would 
     require the President to certify to the Congress whether or 
     not the United States has the capability (as of the date of 
     certification) to prevent the illegal importation of nuclear, 
     biological, or chemical weapons into the United States and 
     its possessions.
       The Senate amendment contained no similar provision.
       The Senate recedes.
       The Office of the Secretary of Defense report, titled 
     ``Proliferation: Threat and Defense'', dated April 1996, 
     cites the growing threat posed by the proliferation of 
     weapons of mass destruction and the spread of technology for 
     their production. According to the report, one of the most 
     volatile and frightening scenarios for U.S. defense planning 
     would be based on a terrorist group that might attempt to 
     smuggle nuclear, chemical, or biological weapons materials 
     into the United States and attack U.S. domestic targets. The 
     conferees believe that the capability of the United States to 
     deal with the potential threat posed by the illegal 
     importation of nuclear, biological, or chemical weapons into 
     the United States should be acknowledged, so that U.S. 
     citizens might understand the seriousness of the threat and 
     that increased emphasis might be placed on meeting the 
     threat.
     Nonlethal weapons and technologies program (sec. 230)
       The House bill contained a provision (sec. 222) that would 
     provide $3.0 million in PE 63640M for the nonlethal weapons 
     research and development program.
       The Senate amendment contained a provision (sec. 220) that 
     would provide $15.0 million for a joint service research, 
     development, test and evaluation program for nonlethal 
     weapons and nonlethal technologies, and would require the 
     establishment of a new program element to be administered by 
     the program's designated executive agent. The provision would 
     also place limits on the funds authorized for the foreign 
     comparative testing program and the NATO research and 
     development program until the funds authorized for the joint 
     service nonlethal weapons and nonlethal technologies program 
     in the National Defense Authorization Act for Fiscal Year 
     1996 (Public Law 104-106), and additional funding for 
     nonlethal weapons and technologies authorized for fiscal year 
     1997, are released to the executive agent for obligation. 
     Additionally, a second Senate provision (sec. 313) would 
     authorize $2.0 million in operations and maintenance funds 
     for the Army and $3.0 million in operations and maintenance 
     funds for the Marine Corps for procurement of nonlethal 
     weapons capabilities to meet existing deficiencies in current 
     nonlethal weapons inventories.
       The House recedes with an amendment.
       Last year, $37.2 million was authorized for the nonlethal 
     weapons technologies program. The conferees have been 
     troubled by the reluctance of the DOD to release the funds 
     for execution and implementation of this program. Nonlethal 
     weapons can enhance significantly the flexibility and 
     operational effectiveness of forward deployed forces. As the 
     military services become increasingly involved in unorthodox, 
     non-traditional military operations, nonlethal weapons can 
     help to manage, contain, and defuse certain volatile and low-
     intensity situations. The conferees do not accept or condone 
     the Department's failure to make these funds available to the 
     executive agent for obligation.
       Currently, the Department's plan for execution of funds 
     authorized in fiscal year 1996 includes a total of $15.95 
     million for nonlethal weapons technologies, with $10.45 
     million for research, development, test and evaluation, and 
     $5.4 million for procurement. On July 17, 1996, the Under 
     Secretary of Defense for Acquisition and Technology forwarded 
     correspondence pledging to make available an additional 
     $11.09 million in nonlethal funding during fiscal year 1996. 
     Specifically, the Department agrees to prepare a 
     reprogramming action that would transfer funding from the 
     Defense Advanced Research Projects Agency (DARPA) to the 
     various services, as follows: $5.4 million to reimburse the 
     services ($1.0 million to the Army, $2.1 million to the 
     Marine Corps, and $2.3 million

[[Page H9248]]

     to the Air Force); $1.04 million for research, development, 
     test and evaluation for additional investment; and $4.65 
     million to accommodate current nonlethal priorities for use 
     at the discretion of the executive agent.
       The conferees understand that the fiscal year 1997 budget 
     submission includes $10.2 million for the various services 
     and DOD nonlethal initiatives. The conferees agree to an 
     investment strategy utilizing additional funds authorized by 
     this provision, allocated as follows: $13.74 million for 
     research, development, test and evaluation, as outlined in 
     the July 17, 1996 letter from the Under Secretary of Defense 
     for Acquisition and Technology; $1.26 million available to 
     the executive agent for research, development, test and 
     evaluation activities, at his discretion; and $5.0 million 
     for training and replenishment of nonlethal technology needs 
     ($2.0 million for the Army and $3.0 million for the Marine 
     Corps).
       The conferees emphasize that the revised Department plan 
     for fiscal year 1996 does not bring the Department into 
     compliance with Section 219 of the National Defense 
     Authorization Act for Fiscal Year 1996 (Public Law 104-106). 
     However, it does represent a reasonable effort to ensure the 
     immediate and near term nonlethal requirements of the 
     military services. The conferees will closely monitor the 
     formulation of the fiscal year 1996 nonlethal reprogramming 
     list, and expect the Department to coordinate this effort 
     with the relevant congressional committees to ensure its 
     prompt approval.
       The conferees agree to eliminate the provision that would 
     prohibit the obligation or expenditure of funds authorized 
     for the foreign comparative testing program and the NATO 
     research and development program. That decision was reached 
     with the understanding that the Department will fully 
     implement and execute the nonlethal weapons technologies 
     program for fiscal years 1996 and 1997, as agreed to in the 
     July 17, 1996 letter from the Under Secretary of Defense for 
     Acquisition and Technology.
       The conferees direct the Department to consult with the 
     Congress on a regular basis, and to include in its 
     consultation a review of the joint and individual service 
     mission needs and operational requirements for nonlethal 
     weapons systems and technologies. Additionally, the conferees 
     expect the fiscal year 1998 budget submission to include the 
     funds necessary to continue this effort. The conferees 
     further direct the Department of Defense to notify Congress 
     15 days in advance of obligation or expenditure of fiscal 
     year 1997 operations and maintenance funds provided to the 
     Army and the Marine Corps for procurement of nonlethal 
     weapons.
       The conferees are aware that the Office of Technology 
     Assessment (OTA) had underway, when it closed on October 2, 
     1995, a major assessment of technology with applications 
     related to peace operations, with particular emphasis on non-
     lethal weapons technology. Whereas in excess of $250,000 was 
     expended and substantial progress had been made by OTA, no 
     report was issued. The conferees direct that up to $70,000 of 
     the funds authorized for the non-lethal program in fiscal 
     year 1997 be used by the Department to complete a report on 
     non-lethal weapons technology based on the work begun at OTA.
     Counterproliferation support program (secs. 231 and 1309)
       The Senate amendment contained a provision (sec. 221) that 
     would authorize $176.2 million for the counterproliferation 
     support program, a $82.5 million increase to the budget 
     request. Of this increase, $75.0 million would be authorized 
     for the tactical antisatellite technologies program, and $7.5 
     million would be authorized for the high frequency active 
     auroral research program (HAARP). A second provision (sec. 
     230) would make available $3.0 million from the 
     counterproliferation support program for a surgical strike 
     vehicle to defeat hardened and deep underground structures.
       The House bill contained no similar provisions, but would 
     authorize the budget request for the counterproliferation 
     support program.
       The House recedes with an amendment that would authorize 
     $186.2 million for the counterproliferation support program, 
     a $92.5 million increase to the budget request. Of those 
     funds, $75.0 million is authorized for the tactical 
     antisatellite technologies program; $7.5 million is 
     authorized for the high frequency active auroral research 
     program (HAARP); $10.0 million is authorized for a 
     nonproliferation and counterproliferation research and 
     development program to enhance efforts at interdicting and 
     detecting nuclear, radiological, chemical and biological 
     weapons and related materials; and $3.0 million would be 
     available to the Air Combat Command for research and 
     development of a near-term capability to defeat hardened and 
     deeply buried targets, including tunnels and deeply buried 
     facilities for the production and storage of chemical, 
     biological and nuclear weapons and their delivery systems. 
     Additionally, the conferees agree that $4.0 million from 
     funds authorized for the Air Force operation and maintenance 
     account be made available for U.S. Strategic Command 
     (USSTRATCOM) mission planning and analysis.
       The conferees agree that funds authorized in this Act for 
     the technical studies and analyses program (PE 605104D) may 
     not be obligated until funds authorized for the tactical 
     antisatellite technologies program in this Act and in the 
     National Defense Authorization Act for Fiscal Year 1996 have 
     been released for obligation by the executive agent.
     Joint Committee for Review of Counterproliferation Program of 
         the United States
       The conferees agree to a provision (sec. 1309) that would 
     extend the authority of the Joint Committee for Review of 
     Counterproliferation Programs (CRCP) of the United States to 
     September 30, 2000, and require annual reports to the 
     congressional defense committees on the activities of the 
     committee by May 1 of each year. The provision would also 
     modify the composition of the committee by designating the 
     Assistant to the Secretary of Defense for Nuclear, Chemical 
     and Biological Defense as executive secretary for the 
     committee.

             Subtitle C--Ballistic Missile Defense Programs


                     legislative provisions adopted

     Funding for ballistic missile defense programs for fiscal 
         year 1997 (sec. 241)
       The House bill contained a provision (sec. 231) that would 
     authorize funding for ballistic missile defense research and 
     development activities in fiscal year 1997.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would authorize 
     the following amounts for the following programs:
       (1) $621.8 million for the Theater High Altitude Area 
     Defense System;
       (2) $304.2 for the Navy Upper Tier system;
       (3) $858.4 for National Missile Defense;
       (4) $56.2 for the Corps Surface-to-Air Missile (SAM)/Medium 
     Extended Air Defense (MEADS) program.
     The amended provision would also include the following 
     limitations: (1) a limitation on the use of funds for the 
     Office of the Under Secretary of Defense for Acquisition and 
     Technology for official representation until the Secretary of 
     Defense certifies that the above specified funds have been 
     made available for obligation and the Secretary has included 
     the Navy Upper Tier system in the theater missile defense 
     core program; and (2) a limitation on the obligation of more 
     than $15.0 million for the Corps SAM program until the 
     Secretary of Defense submits to Congress an initial program 
     estimate, a report on Corps SAM alternatives, and a 
     certification that there will be no increase in overall U.S. 
     funding commitment as a result of the withdrawal of France 
     from the project definition and validation phase of the 
     program.
     Certification of capability of United States to defense 
         against single ballistic missile (sec. 242)
       The House bill contained a provision (sec. 232) that would 
     require the President to submit to the Congress a 
     certification stating whether the United States has the 
     military capability to intercept and destroy a single 
     ballistic missile launched at the territory of the United 
     States.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Report on ballistic missile defense and proliferation (sec. 
         243)
       The House bill contained a provision (sec. 235) that would 
     direct the Secretary of Defense to submit a report to 
     Congress by December 31, 1996, on ballistic missile defense 
     and proliferation.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Revision to annual report on ballistic missile defense and 
         proliferation (sec. 244)
       The House bill contained a provision (sec. 236) that would 
     update the requirement for the annual ballistic missile 
     defense report to Congress.
       The Senate amendment contained a similar provision.
       The Senate recedes.
     Report on Air Force National Missile Defense Plan (sec. 245)
       The Senate amendment contained no similar provision (sec. 
     238) that expressed the sense of the Senate that the Air 
     Force National Missile Defense (NMD) plan is an important NMD 
     option and is worthy of serious consideration. The provision 
     would also require the Secretary of Defense to submit to 
     Congress a report on the Air Force NMD plan not later than 
     120 days after enactment of this Act.
       The House bill contained no similar provision.
       The House recedes with an amendment that would omit the 
     sense of the Senate language and require the report specified 
     in the Senate provision.
     Capability of National Missile Defense system (sec. 246)
       The House bill contained a provision (sec. 238) that would 
     direct the Secretary of Defense to ensure that any national 
     missile defense system deployed by the United States is 
     capable of defeating the threat posed by the Taepo Dong II 
     missile of North Korea.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Actions to limit adverse effects on private sector employment 
         of establishment of National Missile Defense Joint 
         Program Office (sec. 247)
       The Senate amendment contained a provision (sec. 908) that 
     would require the Director of the Ballistic Missile Defense 
     Organization to take such actions as are necessary in

[[Page H9249]]

     connection with the establishment of the National Missile 
     Defense (NMD) Joint Program Office to ensure that 
     establishment of that office does not make it necessary for a 
     Federal Government contractor to reduce the number of persons 
     employed by the contractor for supporting the NMD program at 
     any particular location outside the National Capitol Region.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Director of the Ballistic Missile Defense Organization to 
     take such actions as are necessary in connection with the 
     establishment of the NMD Joint Program Office to ensure that 
     establishment of that office does not make it necessary for a 
     Federal Government contractor to significantly reduce the 
     number of persons employed by the contractor for supporting 
     the NMD program at any particular location outside the 
     National Capitol Region.
     ABM Treaty defined (sec. 248)
       The House bill contained a provision (sec. 237) that would 
     define the Anti-Ballistic Missile Treaty.
       The Senate amendment contained a similar provision.
       The Senate recedes.

                       Subtitle D--Other Matters


                     legislative provisions adopted

     Maintenance and repair at Air Force installations (sec. 261)
       The House bill contained a provision (sec. 241) that would 
     require that the Secretary of the Air Force establish 
     consistent procedures and criteria to allocate real property 
     maintenance and repair funds at all bases and facilities. The 
     absence of consistency leaves the Air Force test and 
     evaluation bases and facilities at a significant disadvantage 
     in the allocation of resources.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Report relating to Small Business Innovation Research program 
         (sec. 262)
       The House bill contained a provision (sec. 242) that would 
     require the Secretary of Defense to ensure that the Small 
     Business Innovation Research (SBIR) program be managed and 
     executed by the individual program managers of programs for 
     which $20.0 million or more has been authorized for a fiscal 
     year. The provision would also require a report on the Small 
     Business Innovation Research program, as to whether there has 
     been a demonstrable reduction in the quality of research.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would eliminate 
     the requirement that program managers individually manage and 
     execute the SBIR program and would expand the reporting 
     requirements to include the degree to which competitive 
     procedures are being used and the degree to which the 
     technologies developed are being used in military programs.
     Amendment to University Research Initiative Support program 
         (sec. 263)
       The House bill contained an amendment (sec. 244) that would 
     propose changes in the data base for calculation of 
     university eligibility for the University Research Initiative 
     Support program.
       The Senate contained an identical provision (sec. 243).
       The Senate amendment includes this provision.
     Amendments to Defense Experimental Program to Stimulate 
         Competitive Research (sec. 264)
       The House bill contained a provision (sec. 245) that would 
     allow the Department more flexibility to customize the 
     Defense Experimental Program to Stimulate Competitive 
     Research (DEPSCoR) program for defense needs and help to 
     improve the administration of the program.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Elimination of report on the use of competitive procedures 
         for the award of certain contracts to colleges and 
         universities (sec. 265)
       The House bill contained a provision (sec. 246) that would 
     eliminate the annual reporting requirement on the use of 
     competitive procedures for award of research and development 
     contracts, and the award of construction contracts to 
     colleges and universities, primarily because this report 
     duplicates information already required in other reports.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Pilot program for transfer of defense technology information 
         to private industry (sec. 266)
       The Senate amendment contained a provision (sec. 813) that 
     would authorize the use of $3.0 million of the funds 
     available in the University Research Initiative program (PE 
     61103D) for the establishment of a pilot program at a 
     university to demonstrate online transfers of information on 
     defense technologies to businesses in the private sector and 
     through an interactive data network involving Small Business 
     Development Centers.
       The House bill contained no similar provision.
       The House recedes.
       The conferees direct that all applicable competitive 
     procedures be used in the award of any contract, grant or 
     other agreement under this pilot program and that cost 
     sharing requirements for non-Federal participants be utilized 
     where appropriate.
     Research under transactions other than contracts and grants 
         (sec. 267)
       The Senate amendment contained a provision (sec. 810) that 
     would modify section 2371 of title 10, United States Code, to 
     clarify when the authority under the section may be used. The 
     provision would also modify the annual reporting requirement 
     in section 2371 and specify certain information that would 
     not be required to be disclosed under section 552 of title 5, 
     United States Code.
       The House bill contained a similar provision (sec. 203).
       The House recedes.
       The conferees direct the services to follow the example of 
     the Defense Advanced Research Projects Agency in the 
     aggressive use of this authority under section 2371.
     Desalting technologies (sec. 268)
       The Senate amendment contained a sense of the Senate 
     provision (sec. 244) that recognized the importance of 
     desalting technologies and encouraged the Secretary of 
     Defense to place greater emphasis on making funds available 
     for research and development into efficient and economical 
     processes and methods for converting saline water to fresh 
     water.
       The House bill contained no similar provision.
       The House recedes.
     Evaluation of digital video network equipment used in Olympic 
         games (sec. 269)
       The House bill contained a provision (sec. 1050) that would 
     require the Secretary of Defense to evaluate the digital 
     video network equipment used in the 1996 Olympic games to 
     determine whether such equipment would be the most 
     appropriate equipment for use as a test bed for the military 
     application of off-the-shelf technology.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment to defer the report 
     date from December 31, 1996 to April 1, 1997 to allow the 
     Department time to evaluate other comparative systems.
     Annual joint warfighting science and technology plan (sec. 
         270)
       The Senate amendment contained a provision (sec. 1052) that 
     would require the Secretary of Defense to submit to the 
     congressional defense committees the annual Joint Warfighting 
     Science and Technology plan so that it may be considered in 
     the congressional review of the President's defense budget 
     request. The provision would also require that additional 
     information of interest to Congress be submitted in 
     conjunction with the plan.
       The House bill contained no similar provision.
       The House recedes.

         Subtitle E--National Oceanographic Partnership Program


                     LEGISLATIVE PROVISIONS ADOPTED

     National Oceanographic Partnership Program (sec. 282)
       The House bill contained a provision (sec. 247) that would 
     establish a National Oceanographic Partnership Program for 
     the purpose of leveraging all U.S. oceanographic efforts to 
     the benefit of the military. The Partnership Program would 
     establish a National Oceanographic Leadership Council to 
     coordinate national oceanographic programs, partnerships and 
     facilities, and coordinate policy efforts of all Federal 
     activities involved in oceanographic surveys and research. 
     The council would also provide a comprehensive plan to ensure 
     development of oceanography science and technology modeling 
     and simulation programs throughout government, universities 
     and that industry will be available to support military 
     requirements in the future. The House provision would also 
     create a national ocean data and remote sensing center to 
     centralize all unclassified, classified and sensitive 
     compartmented information databases, models and product 
     synthesis capabilities to support national oceanographic 
     requirements and a national natural littoral laboratory. The 
     House would authorize increases of $15.0 million in PE 61153N 
     and $15.0 million in PE 62435N for the National Oceanographic 
     Partnership Program.
       The Senate amendment contained a similar provision (sec. 
     252) that would provide for the establishment of a National 
     Ocean Research Leadership Council, chaired by the Secretary 
     of the Navy or his designee and composed of representatives 
     of Federal agencies, industry and academia, to coordinate 
     national oceanography programs, partnerships and facilities. 
     The Senate amendment would provide an increase of $13.0 
     million in the Navy's Oceanographic and Atmospheric 
     Technology program (PE 62435N) for support of the National 
     Oceanographic Partnership Act. The Senate amendment also 
     contained a provision that would establish national coastal 
     data centers on both the east and west coasts at existing 
     institutions of higher learning with well established 
     institutes or graduate schools of oceanography.
       The Senate recedes with an amendment that would authorize 
     an increase of $13.0 million in PE 62435N to be allocated as 
     directed in the Senate report (S. Rept. 104-267). The 
     conferees also agree to authorize $7.5 million for 
     oceanographic ship operations out of funds available in 
     operations and maintenance, project 80. The provision would 
     also direct the National Oceanographic Leadership Council to 
     review the requirement for the establishment of centers for 
     the national centralization of oceanographic research

[[Page H9250]]

     data, including coastal data centers, and to establish such 
     centers as it deems necessary.


                   LEGISLATIVE PROVISIONS NOT ADOPTED

     Joint United States-Israeli Nautilus Laser/Theater High 
         Energy Laser program
       The House bill contained a sense of Congress provision 
     (sec. 221) that would strongly support the Joint U.S.-Israeli 
     Nautilus Laser/Theater High Energy Laser program and 
     encourage the Secretary of Defense to request authorization 
     to develop these programs as agreed to April 28, 1996, in the 
     statement of intent signed by the Secretary of Defense and 
     the Prime Minister of the State of Israel.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees agree to authorize an additional $50.0 
     million for a new program element to support the Nautilus/
     Theater High Energy Laser program and the associated design 
     verification testing. The conferees understand that the 
     government of Israel is prepared to devote significant 
     resources to this effort and the committee urges the 
     administration to seek a rapid conclusion of a memorandum of 
     agreement (MOA) on the THEL program with Israel. The 
     conferees fully expect that additional funding to implement 
     such an MOA will be included in future Army budget requests.
     Policy on compliance with the ABM Treaty
       The House bill contained a provision (sec. 233) that would 
     codify the ``demonstrated capabilities'' standard for 
     assessing compliance of systems with the Anti-Ballistic 
     Missile (ABM) Treaty, state certain prohibitions, and define 
     an ABM-qualifying flight test as a test against a ballistic 
     missile with a range in excess of 3,500 kilometers and a 
     velocity in excess of five kilometers per second.
       The Senate amendment contained a provision (sec. 239) that 
     would extend by one year section 235 of the National Defense 
     Authorization Act of Fiscal Year 1996 (Public Law 104-106).
       The House and the Senate recede from their respective 
     provisions.
       The conferees note that the President's National Security 
     Advisor has stated that the Theater Missile Defense (TMD) 
     Demarcation agreement, to which the United States has 
     tentatively agreed, would modify the rights and obligations 
     of the parties and, hence, constitute a substantive change to 
     the ABM Treaty. The conferees acknowledge and reaffirm the 
     constitutional principle that any substantive treaty change 
     may be entered into only pursuant to the President's treaty 
     making power under the Constitution. The conferees note that 
     this constitutional principle is specifically codified with 
     regard to the ABM Treaty in section 232 of the National 
     Defense Authorization Act for Fiscal Year 1995 (Public Law 
     103-337).
       The conferees would take strong exception to any 
     interpretation by the administration that section 235 of the 
     National Defense Authorization Act for Fiscal Year 1996 
     ``pre-authorizes'' implementation of the TMD Demarcation 
     agreement. For example, because the agreement-in-principle 
     does not apply the ``demonstrated capabilities standard'' to 
     all TMD systems, it would not satisfy the standard specified 
     in section 235(b)(1). More importantly, section 235 does not 
     supersede the constitutional requirement to submit a 
     substantive change to the ABM Treaty to the Senate for advice 
     and consent.
       In light of the fact that the President's National Security 
     Advisor has confirmed that the draft TMD Demarcation 
     agreement would constitute a substantive change to the ABM 
     Treaty, the conferees agree that legislation requiring 
     submission of the agreement for Senate advice and consent is 
     not needed.
     Requirement that multilateralization of the ABM Treaty be 
         done only through treaty-making power
       The House bill contained a provision (sec. 234) that would 
     state that any addition of a new signatory party to the Anti-
     Ballistic Missile (ABM) Treaty (in addition to the United 
     States and the Russian Federation) constitutes an amendment 
     to the treaty that can only be agreed to by the United States 
     through the treaty making power of the United States. This 
     provision would prohibit the obligation or expenditure of 
     funds during any fiscal year for the purpose of implementing 
     or making binding upon the United States the participation of 
     any additional nation as a party to the ABM Treaty, unless 
     that nation is made a party to the treaty by an amendment to 
     the Treaty that is made in the same manner as the manner by 
     which a treaty is made.
       The Senate amendment contained a provision (sec. 231) that 
     would express the sense of the Senate that during fiscal year 
     1997 the United States shall not be bound by any 
     international agreement entered into by the President that 
     would substantively modify the ABM Treaty, including any 
     agreement that would add one or more countries as signatories 
     to the Treaty or would otherwise convert the treaty from a 
     bilateral Treaty to a multilateral treaty, unless the 
     agreement is entered pursuant to the treaty making power of 
     the President under the Constitution.
       The House and the Senate recede from their respective 
     provisions.
       The conferees acknowledge and reaffirm the constitutional 
     principle that any substantive change to a treaty may be 
     entered into only pursuant to the President's treaty making 
     power under the Constitution. The conferees note that, with 
     regard to the ABM Treaty, this constitutional principle is 
     specifically codified in section 232 of the National Defense 
     Authorization Act for Fiscal Year 1995 (Public Law 103-337). 
     In this regard, the accord on ABM Treaty succession, 
     tentatively agreed to by the administration, would constitute 
     a substantive change to the ABM Treaty, which may only be 
     entered into pursuant to the treaty making power of the 
     President under the Constitution. An explanation for this 
     conclusion is presented below.
       First, the fundamental circumstances that provided the 
     rationale for the ABM Treaty have changed. The ABM Treaty, 
     more than any other arms control agreement, was a product of 
     the bipolar Cold war confrontation between the United States 
     and the Soviet Union. With the dissolution of the Soviet 
     Union, the United States faces strategic and political 
     circumstances that are vastly different that those that 
     obtained in 1972.
       Second, by having the Soviet Union succeeded, for purposes 
     of the ABM Treaty, by some but not all of the independent 
     states of the former Soviet Union, each possessing sovereign 
     rights under the Treaty, a succession agreement would change, 
     limit, and extend certain rights and obligations previously 
     possessed by the parties. This is virtually a best book 
     definition of a treaty amendment. The rights of the United 
     States would clearly be changed given the fact that the 
     Standing Consultative Commission (SCC), the ABM Treaty's 
     implementing body, would, for the first time, be comprised of 
     several parties, all of whom would need to consent to 
     changes, clarifications or amendments to the Treaty.
       As the administration stated in a May 3, 1996, letter: 
     ``Each party will participate in implementing the Treaty as a 
     sovereign entity. This includes a full and equal voice in the 
     SCC.'' When asked if the consent of all parties would be 
     needed before the Treaty could be amended, clarified, or 
     interpreted, the administration answered: ``Yes. The U.S. has 
     insisted on a decision-making mechanism in the SCC under 
     which legally binding obligations would be adopted by 
     consensus.'' In effect, the SCC would be transformed into a 
     corporate body in which up to a dozen affirmative votes would 
     be required before the Treaty could be amended. In addition, 
     some of the new treaty partners would only have partial 
     rights. Of the former Soviet states, for example, only Russia 
     would be entitled to deploy an operational ABM system.
       Third, the functional mechanics of the ABM Treaty will be 
     changed through multilateralization. The ABM Treaty is based, 
     in part, on a geographical description of the United States 
     and the Soviet Union. For example, the Treaty states 
     specifically that certain large phased array radars may only 
     be located along the periphery of the national territory of 
     the parties. In the case of the former Soviet Union, however, 
     some radars are now located outside of Russia. The Skrunda 
     radar in Latvia, for example, is on the territory of an 
     independent country that has rejected membership in the ABM 
     Treaty. Clearly, any agreement that addresses the 
     successorship issue will also have to redefine these 
     geographic aspects of the Treaty, which will constitute 
     substantive amendments to the Treaty. In this regard, the 
     Senate will be as interested to see which states do not 
     accede to the ABM Treaty as it will be to see which countries 
     do accede.
       Fourth, all succession agreements related to existing 
     strategic arms control agreements have been addressed by the 
     Senate through the constitutional advice and consent 
     mechanism, with the exception of the Intermediate-Range 
     Nuclear Forces Treaty, which was clearly identified as an 
     exception to the rule at the time of succession.
       In the case of the Conventional Armed Forces in Europe 
     (CFE) Treaty, the Senate specifically recognized the 
     impending breakup of the Soviet Union and adopted provisions 
     that were intended to take this into account during the 
     ratification debate. The Senate was so concerned about this 
     issue with regard to the CFE Treaty that it attached a 
     condition to the resolution of ratification that specified 
     procedures for adding new states parties and for evaluating 
     the implications of the withdrawal of key newly independent 
     states from the Treaty.
       In the case of the Strategic Arms Reductions Talks (START 
     I) Treaty, the succession agreement, known as the Lisbon 
     Protocol, was approved by a two-thirds vote of the Senate as 
     part of the overall ratification process. As in the case of 
     CFE, START I was surrounded by major succession issues that 
     the Senate had to address in a formal manner. It is the view 
     of the conferees that neither CFE nor START I would have been 
     approved by the Senate but for the fact that the succession 
     issues were thoroughly addressed as part of the ratification 
     debate.
       Given the compelling case that the ABM Treaty succession 
     agreement is a substantive change to the treaty, the 
     conferees affirm that such agreement must be submitted to the 
     Senate for advice and consent.
     Funding increase for field emission flat panel technology
       The House bill included a provision (sec. 248) that would 
     authorize an additional $10.0 million for the combat vehicle 
     improvement program to fund field emission flat panel 
     technology for the M1 tank upgrade.
       The Senate amendment would also provide $10.0 million for 
     this project.
       The House recedes from its legislative provision.
       The conferees agree to recommend an additional $10.00 
     million in PE 23735A for flat panel display technology.

[[Page H9251]]

     Natural resource assessment and training delivery system
       The House bill contained a provision (sec. 249) that would 
     authorize funding to support a proposed natural resource 
     assessment and training delivery system. The purpose of the 
     program was to enhance the ability of the Department of 
     Defense to mitigate the environmental impact of its 
     operational training of forces and testing of weapons on 
     military installations more effectively and at lower costs.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees agree that there are advanced technology 
     methods such as remote sensing, satellite and aircraft 
     mounted sensors, integrated digital data sets, and advanced 
     computing resources that could offer the Department 
     efficiencies in time, cost and area coverage over personnel 
     intensive ground sampling, data processing and analysis when 
     it monitors environmental conditions at military 
     installations.
       The conferees urge the Department to investigate industrial 
     and academic capabilities to implement advance technologies 
     for environmental monitoring and training.
     Funds for research, development, test, and evaluation 
         relating to humanitarian demining technologies
       The budget request included $7.7 million for humanitarian 
     demining activities.
       The Senate amendment contained a provision (sec. 204) that 
     would make $18.0 million available for humanitarian demining 
     activities in PE 63120D, to be administered by the Assistant 
     Secretary of Defense for Special Operations and Low Intensity 
     Conflict.
       The House bill contained no similar provision, but would 
     recommend the budget request for humanitarian demining 
     activities.
       The Senate recedes.
       The conferees agree to authorize $18.0 million in PE 63120D 
     for research, development, test, and evaluation of near-term 
     and long-term technologies and capabilities relating to 
     humanitarian demining technologies. The humanitarian demining 
     program will continue to be administered by the Assistant 
     Secretary of Defense for Special Operations and Low Intensity 
     Conflict. The relationship of this program to the Defense 
     countermine program is discussed elsewhere in the report.
     Department of Defense Space Architect
       The Senate amendment contained a provision (sec. 212) that 
     would require the Secretary of Defense to include the kinetic 
     energy tactical anti-satellite (ASAT) program in the space 
     control architecture to be developed by the Department's new 
     Space Architect. The provision would prohibit the use of 
     fiscal year 1997 defense funds to support the Space Architect 
     until the Secretary certifies that he will include the ASAT 
     program in the space control architecture, that he has 
     obligated fiscal year 1996 funds for the kinetic energy ASAT, 
     and that he has made available for obligation fiscal year 
     1997 funds appropriated for the kinetic energy ASAT, 
     consistent with congressional guidance.
       The House contained no similar provision.
       The Senate recedes.
     Research for advanced submarine technology
       The Senate amendment contained a provision (sec. 214) that 
     would repeal section 132 of the National Defense 
     Authorization Act for Fiscal Year 1996.
       The House bill contained no similar provision.
       The Senate recedes.
     Tier III minus Unmanned Aerial Vehicle
       The Senate amendment contained a provision (sec. 216) that 
     would prohibit the procurement of more than three air 
     vehicles for the Tier III minus UAV program until flight 
     testing is completed.
       The House bill contained no similar provision.
       The Senate recedes.
     Defense airborne reconnaissance program
       The Senate amendment contained a provision (sec. 217) that 
     would require the Secretary of Defense to submit a report 
     comparing the Predator unmanned aerial vehicle (UAV) with the 
     Dark Star (Tier III minus) UAV.
       The House bill did not contain a similar provision.
       The Senate recedes.
     Advanced submarine technologies
       The Senate amendment contained a provision (sec. 223) that 
     would authorize $489.4 million for the submarine previously 
     designated by the Navy as the New Attack Submarine and an 
     additional $100.0 million to address the inclusion on future 
     nuclear attack submarines of core, category I, and category 
     II technologies, as such technologies are identified by the 
     Secretary of Defense in Appendix C of the ``Report on Nuclear 
     Attack Submarine Procurement and Submarine Technology'', 
     submitted to Congress on March 26, 1996.
       The House bill contained no similar provision.
       The Senate recedes.
     Funding for basic research in nuclear seismic monitoring
       The Senate amendment contained a provision (sec. 224) that 
     would make available $6.5 million for basic research in 
     nuclear seismic monitoring from funds requested for the Air 
     Force for arms control implementation.
       The House bill contained no similar provision.
       The Senate recedes.
       The budget request included $26.7 million for arms control 
     implementation in PE 35145F for research and development 
     activities to prepare the United States for implementation 
     of, and compliance with, nuclear testing treaties. Those 
     activities include the development of a national and 
     international data center, treaty implementation and 
     technical support, and nuclear monitoring techniques. The 
     conferees agree that, of those funds, $6.5 million shall be 
     available for basic research in nuclear seismic monitoring.
     Computer-assisted education and training
       The Senate amendment included a provision (sec. 226) that 
     would require that $10.0 million in the Defense Research 
     Sciences program (PE 61101E) be used for the continuation of 
     computer-assisted education and training programs in the 
     Department of Defense.
       The House bill contained no similar provision.
       The Senate recedes.
     Seamless high off-chip connectivity
       The Senate amendment included a provision (sec. 227) that 
     would require that $7.0 million in funds available for 
     research, development, test and evaluation in the Department 
     of Defense be used to continue research and development of 
     seamless high off-chip connectivity (SHOCC) programs.
       The House bill contained no similar provision.
       The Senate recedes.
     National Polar-Orbiting Operational Environmental Satellite 
         System
       The Senate amendment contained a provision (sec. 229) that 
     would authorize $29.0 million for the National Polar-Orbiting 
     Operational Environmental Satellite System (NPOESS), a 
     reduction of $5.0 million from the Department of Defense 
     portion of the NPOESS budget request.
       The House bill contained no similar provision but 
     recommended a reduction of $15.0 million.
       The Senate recedes.
       The conferees agree to authorize $29.0 million for NPOESS.
     Funding for upper tier theater missile defense systems
       The Senate amendment contained a provision (sec. 232) that 
     would authorize funds for the Theater High Altitude Area 
     Defense (THAAD) system and the Navy Upper Tier theater 
     missile defense (TMD) system. The provision would also 
     prohibit the use of funds during fiscal year 1997 by the 
     Undersecretary of Defense for Acquisition and Technology for 
     official representation activities until the Secretary of 
     Defense certifies to Congress that: (1) fiscal year 1997 
     funds for THAAD and Navy Upper Tier have been made available 
     for obligation; and (2) the Navy Upper Tier systems has been 
     included in the core TMD program.
       The House bill contained no similar provision.
       The Senate recedes.
     Scorpius space launch technology program
       The Senate amendment contained a provision (sec. 235) that 
     would provide for the use of up to $7.5 million of funds 
     authorized for the Ballistic Missile Defense Organization for 
     the Scorpius space launch technology program.
       The House bill contained no similar provision.
       The Senate recedes.
     Corps SAM/MEADS program
       The Senate amendment contained a provision (sec. 236) that 
     would authorize $56.2 million for the Corps surface-to-air/
     Medium Extended Air Defense System, and would require the 
     Secretary of Defense to submit certain items prior to 
     obligating more than $15.0 million in fiscal year 1997.
       The House bill contained no similar provision.
       The Senate recedes. Funding for Corps SAM/MEADS is 
     discussed elsewhere in this report.
     Annual report on threat of attack by ballistic missiles 
         carrying nuclear, chemical, or biological warheads
       The Senate amendment contained a provision (sec. 237) that 
     would require an annual report on the threat of attack by 
     ballistic missiles carrying weapons of mass destruction.
       The House bill contained no similar provision.
       The Senate recedes.

                  TITLE III--OPERATION AND MAINTENANCE

     Overview
       The budget request for fiscal year 1997 contained an 
     authorization of $88,859.7 million for Operation and 
     Maintenance in the Department of Defense and $1,910.9 for 
     Working Capital Fund Accounts in fiscal year 1997. The House 
     bill would authorize $90,728.8 million for Operation and 
     Maintenance and $2,070.9 for Working Capital Fund Accounts. 
     The Senate amendment would authorize $89,113.8 million for 
     Operation and Maintenance and $2,215.9 for Working Capital 
     Fund Accounts. The conferees recommended an authorization of 
     $89,871.0 million for Operation and Maintenance and $2,065.9 
     for Working Capital Fund Accounts for fiscal year 1997. 
     Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

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[[Page H9280]]

     Military Personnel Operation and Maintenance Funding


                Increased Funding For Off-Duty Education

       The conferees agreed to increases of $4.5 million in off-
     duty education funds for the U.S. Marine Corps and $9.5 
     million in tuition assistance for the U.S. Air Force.


                    Increased Funding For Recruiting

       The conferees agreed to increase funding for recruiting and 
     advertising above the amount requested in the President's 
     budget by $4.7 million for the U.S. Marine Corps and by $5.0 
     million for the U.S. Army Reserve.


                       New Parent Support Program

       The conferees agreed to fund the New Parent Support Program 
     at $20 million, and direct that it be allocated as follows: 
     Army, $7.8 million; Navy, $5.5 million; Marine Corps, $2.9 
     million; Air Force, $3.8 million.
     Active and reserve component P-3 squadrons
       The budget request included funding to sustain a maritime 
     patrol aircraft (MPA) force structure of 12 active and 8 
     reserve P-3 squadrons (12/8), a reduction of one active and 
     one reserve squadron from the fiscal year 1996 force 
     structure.
       The Senate amendment would authorize an increase of $45.3 
     million to sustain the MPA force structure at 13 active and 9 
     reserve squadrons (13/9) in fiscal year 1997. The Senate 
     report (S. Rept. 104-267) noted that the operational demands 
     placed on MPA by the unified commanders have been very heavy 
     in recent years because the P-3 has a multi-mission 
     capability that is well-suited to littoral warfare 
     operations. Despite an intense operating tempo, budget 
     pressures have forced the Navy to cut P-3 force structure in 
     its current budget request.
       The House bill would authorize the requested amount.
       The conferees agree to an increase of $23.6 million above 
     the budget request to avoid the reductions in P-3 force 
     structure that would be dictated by the budget request. Of 
     this total, $10.6 million would be for squadron operations 
     and $13.0 million would be for personnel.
     Defense Health Program
       The conferees agreed to increase the Defense Health Program 
     account within the Operation and Maintenance account by 
     $475.0 million to resolve a shortfall in the budget request.
     National defense features
       The budget request contained no funding in the National 
     Defense Sealift Fund (NDSF) for a national defense features 
     (NDF) program.
       The Senate amendment would authorize $50.0 million for the 
     NDF program, using funds made available from repeal of 
     section 132 of the National Defense Authorization Act for 
     Fiscal Year 1996.
       The House bill would authorize the requested amount for 
     NDF.
       The Senate recedes.
       The conferees direct the Secretary of Defense to establish 
     a separate line item in the NDSF budget request for the NDF 
     program. The conferees view the NDF program as a matter of 
     special interest and direct that the Secretary not transfer 
     any funds out of the NDF line item without approval of the 
     congressional defense committees.
     Maritime training ship
       The budget request for the National Defense Sealift Fund 
     (NDSF) contained no funding for the repair and refurbishment 
     of the United States Naval Ship (U.S.N.S.) Tanner prior to 
     its redesignation as a maritime training ship.
       The Senate amendment would authorize an increase of $5.0 
     million in the NDSF to complete necessary repair and 
     refurbishment of U.S.N.S. Tanner prior to its redesignation 
     as a maritime training ship.
       The House bill would authorize the requested amount.
       The House recedes.


                       Items of special interest

     Air Force automated maintenance data systems
       The conferees are aware that the Air Force is moving toward 
     a new standard maintenance data-system--the Integrated 
     Maintenance Data System (IMDS). The conferees also understand 
     that one of the first information systems to be integrated 
     into IMDS, scheduled during the second quarter of fiscal year 
     1997, will be TICARRS. While the House bill provided $10.0 
     million for TICARRS, the Air Force indicates that only $5.5 
     million is required to operate TICARRS through the second 
     quarter of fiscal year 1997. Therefore, the conferees agree 
     to provide $5.5 million for this purpose. Should schedule or 
     technical uncertainties delay the implementation of IMDS, the 
     conferees expect the Air Force to provide sufficient funding 
     to operate the legacy data maintenance systems, CAMS/REMIS 
     and TICARRS, through fiscal year 1997.
     Center for Military History
       The conferees are aware that the Army is reducing the 
     number of civilian personnel in its employ. The Congress has 
     been informed that any reduction of civilians at the Center 
     for Military History (CMH) would be commensurate with other 
     reductions within the Department of the Army. The conferees 
     are encouraged by this plan and direct the Secretary to 
     ensure that any reduction at CMH be proportional to 
     reductions made at other Army activities.
     Consolidation of integration of the military exchange systems
       The conferees are aware that the Department of Defense has 
     established a task force to examine how to achieve an 
     integrated military exchange system. The conferees recognize 
     the imperative to generate efficiencies and improve the 
     delivery of the exchange benefit. While a consolidated or 
     integrated exchange system may be an option for achieving 
     these goals, the conferees direct that no action be taken to 
     consolidate or integrate the military exchange systems 
     without approval of the Committee on Armed Services of the 
     Senate and the Committee on National Security of the House of 
     Representatives.
     Second destination transportation
       The congressional defense committees have authorized 
     expenditures of appropriated funds for second destination 
     transportation charges for the military exchanges since the 
     end of World War II. These funds are utilized to assist the 
     military exchanges in shipping items manufactured in the 
     United States to service members and their families stationed 
     in overseas locations, thereby assuring retail prices for 
     those stationed overseas as close as possible to stateside 
     prices.
       The conferees remind the Department that second destination 
     transportation expenditures are not discretionary. The 
     conferees direct the Department of Defense and the Department 
     of the Army, acting as executive agent of second destination 
     transportation, to fully fund the actual expenditures 
     necessary to fully second destination transportation charges.
       The conferees note that the Department of Defense has not 
     implemented section 334 of the National Defense Authorization 
     Act for Fiscal Year 1996 which directed the Secretary to 
     authorize the exchange systems and the Defense Commissary 
     Agency to negotiate directly with private carriers to achieve 
     the most cost effective rates for the transportation of goods 
     overseas. The current policies, procedures and methods of 
     planning and budgeting for second destination transportation 
     costs are ineffective and lead to under funding within the 
     account. The conferees direct the Secretary of Defense to 
     immediately implement the provisions of section 334 of the 
     National Defense Authorization Act for Fiscal Year 1996.
     Defense Commissary Agency designation as a performance based 
         organization
       The committee report to accompany S. 1745 (S. Rept. 104-
     267) and the committee report to accompany H. 3230 (H. Rept. 
     104-563) included comments concerning the nomination by the 
     Department of Defense to convert the defense Commissary 
     Agency (DeCA) to a Performance Based Organization. These 
     reports note that the committees strongly support the 
     commissary benefit and supports actions necessary to ensure 
     the benefit is maintained.
       The conferees concur in maintaining the commissary benefit 
     for our service members and their families. The conferees are 
     aware that the Department is studying whether the leadership 
     of DeCA should be uniformed or civilian in a Performance 
     Based Organization. The conferees believe that the military 
     services should maintain the same level of key leadership 
     within DeCA as that in effect on January 1, 1996. It is 
     imperative that the commissionary benefit not be degraded and 
     any transition plan must include safeguards to ensure that 
     trade-offs and management initiatives of a performance-based 
     organization serve the beneficiary population not the 
     organization or industry.


                         legislative provisions

              Subtitle A--Authorization of Appropriations


                     legislative provisions adopted

     Armed Forces Retirement Home (sec. 303)
       The House bill contained a provision (sec. 303) that would 
     authorize $57.3 million from the Armed Forces Retirement Home 
     Trust Fund for the operation of the Armed Forces Retirement 
     Home.
       The Senate amendment contained a similar provision (sec. 
     586) that would authorize $57.345 million from the Armed 
     Forces Retirement Home Trust Fund for the operation of the 
     Armed Forces Retirement Home.
       The Senate recedes.
     Transfer from National Defense Stockpile Transaction Fund 
         (sec. 304)
       The House bill contained a provision (sec. 304) that would 
     authorize the Secretary of Defense to transfer $250 million 
     from the National Defense Stockpile Transaction Fund to the 
     operation and maintenance accounts of the military services.
       The Senate bill contained a similar provision (sec. 304) 
     that would authorize the transfer of $150 million.
       The House recedes.
     Civil Air Patrol Corporation (sec. 305)
       The Senate amendment contained a provision (sec. 305) that 
     would permit the Department of Defense to provide the Civil 
     Air Patrol Corporation with $14.5 million. The provision 
     required that 25 percent of these funds be used for the Civil 
     Air Patrol's principal mission of search and rescue.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require that 
     $14.5 million in operation and maintenance funds be made 
     available to the Civil Air Patrol Corporation and that 25 
     percent of these funds be used to support search and rescue 
     and disaster relief operations.
     Availability of additional funds for Antiterrorism activities 
         (sec. 306)
       The conferees agree to a provision authorizing an 
     additional $14.0 million for use by

[[Page H9281]]

     the Secretary of Defense to fund emergency anti-terrorist 
     activities of the Department of Defense. These funds are in 
     addition to funds otherwise authorize to be appropriated in 
     this Act for anti-terrorism, and are to be available for the 
     Secretary of Defense to respond quickly to emergency anti-
     terrorism requirements that are identified by commanders of 
     the unified combatant commands or commanders of joint task 
     forces in response to a change in terrorist threat level.
       The conferees urge the Secretary of Defense to propose an 
     emergency anti-terrorism program as part of the fiscal year 
     1998 budget submission.
     SR-71 (sec. 308)
       The House bill contained a provision (sec. 1040) that would 
     prohibit the Secretary of Defense from carrying out any 
     aerial reconnaissance program using the SR-71 aircraft.
       The Senate amendment contained a provision (sec. 306) that 
     would provide $30.0 million in operations and maintenance 
     funding for the SR-71 contingency reconnaissance force.
       The House recedes.

                   Subtitle B--Depot-Level Activities


                     legislative provisions adopted

     Extension of authority for aviation depots and naval 
         shipyards to engage in defense-related production and 
         services (sec. 311)
       The House bill contained a provision (sec. 311) that would 
     extend the authority for aviation depots and shipyards of the 
     Department of Defense to engage in defense related production 
     and services.
       The Senate amendment contained a similar provision (sec. 
     328).
       The Senate recedes.
     Test programs for modernization through spares (sec. 312)
       The Senate amendment contained a provision (sec. 812) that 
     would require the Secretary of the Army to report to the 
     Committee on Armed Services of the Senate and the Committee 
     on National Security of the House of Representatives the 
     steps that have been taken to ensure that the Army's 
     modernization-through-spares program is conducted in 
     accordance with applicable federal laws.
       The House bill contained no similar provision.
       The House recedes.

                  Subtitle C--Environmental Provisions


                     legislative provisions adopted

     Defense contractors covered by requirement for reports on 
         contractor reimbursement costs for response actions (sec. 
         321)
       The House bill contained a provision (sec. 321) that would 
     repeal subsection (c) of section 2706 of title 10, United 
     States Code, which requires the Department of Defense to 
     submit an annual report to Congress that describes the 
     reimbursement of environmental response action costs and the 
     amount and status of pending requests for reimbursement for 
     the top 100 defense contractors.
       The Senate amendment contained a provision (sec. 342) that 
     would establish a reporting requirement that would limit data 
     collection to the top 20 defense contractors.
       The House recedes.
     Establishment of separate environmental restoration accounts 
         for each military department (sec. 322)
       The Senate amendment contained a provision (sec. 341) that 
     would devolve the Defense Environmental Restoration Account 
     (DERA), from a single transfer account administered by the 
     Department of Defense, to four separate accounts administered 
     by the individual military departments.
       The House bill contained no similar provision.
       The House recedes.
     Payments of stipulated penalties assessed under the 
         Comprehensive Environmental Response, Compensation, and 
         Liability Act (sec. 323)
       The House bill contained a provision (sec. 322) that would 
     authorize the payment from the Defense Environmental 
     Restoration Account (DERA) of stipulated civil penalties 
     assessed under the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (CERCLA) (Public Law 
     96-510) at five military installations--Fort Riley, Kansas 
     ($34,000), the Massachusetts Military Reservation ($55,000), 
     F.E. Warren Air Force Base, Wyoming ($10,000), the Naval 
     Education and Training Center, Newport, Rhode Island 
     ($30,000), and the Lake City Army Ammunition Plant, Missouri 
     ($37,500). The provision would also allow the Department of 
     Defense (DOD) to complete a supplemental environmental 
     project (SEP) ($500,000) in lieu of stipulated penalties at 
     the Massachusetts Military Reservation.
       The Senate amendment contained a similar provision (sec. 
     344).
       The Senate recedes with a technical amendment.
     Shipboard solid waste control (sec. 324)
       The House bill contained a provision (sec. 324) that would 
     adopt the administration's legislative proposal to amend 
     section 1902(c) of the Act to Prevent Pollution from Ships 
     (APPS) (33 U.S.C. 1901, et seq.) to allow for the use of 
     pulpers and shredders for the disposal of non-plastic and 
     non-floating solid waste within ``special areas'' (the Baltic 
     Sea, the North Sea, the Mediterranean Sea, the Red Sea, the 
     Persian Gulf, and the Antarctic Ocean), consistent with Annex 
     V of the International Convention for the Prevention of 
     Pollution on Ships (MARPOL).
       The Senate amendment contained a similar provision (sec. 
     348).
       The House recedes.
     Authority to develop and implement land use plans for Defense 
         Environmental Restoration Program (sec. 325)
       The House bill contained a provision (sec. 325) that would 
     permit the Secretary of Defense to conduct a limited pilot 
     program to develop and implement, as a part of the Defense 
     Environmental Restoration Program, a land use plan for up to 
     ten defense sites where the Secretary is planning or 
     implementing environmental restoration activities. In 
     developing these plans, the Secretary would be required to 
     consult with technical review committees, restoration 
     advisory boards, local land use redevelopment authorities or 
     other appropriate agencies knowledgeable about the site and 
     land use planning. The House provision would require the 
     submission of a report to Congress by December 31, 1998.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require an 
     annual report consistent with section 2706(a) of title 10, 
     United States Code. The conferees expect that cleanup 
     activities conducted at contaminated sites will be consistent 
     with the anticipated future land use.
     Pilot program to test alternative technology for limiting air 
         emissions during shipyard blasting and coating operations 
         (sec. 326)
       The House bill contained a provision (sec. 326) that would 
     direct the Secretary of the Navy to establish a pilot program 
     to test alternative technology designed to capture, destroy 
     or remove particulate emissions and volatile air pollutants 
     that occur during abrasive blasting and coating operations at 
     naval shipyards. The Secretary would be required to test the 
     validity of the technology, assess its cost effectiveness, 
     and determine the extent to which it would facilitate 
     compliance with environmental strictures. The Secretary would 
     then report to Congress and provide a recommendation 
     regarding large scale implementation of the technology at 
     naval shipyards.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of the Navy to determine the potential benefit of 
     the technology prior to initiation of the pilot program.
     Agreements for services of other agencies in support of 
         environmental technology certifications (sec. 327)
       The House bill contained a provision (sec. 328) that would 
     provide the Department of Defense with the authority to enter 
     into cooperative agreements with agencies of a State or local 
     government to obtain assistance in the demonstration, 
     validation, and regulatory certification of environmental 
     technology.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would limit the 
     authority to enter into cooperative agreements for technology 
     certification. As a prerequisite to entering into such 
     cooperative agreements, the amendment would require the 
     Secretary of Defense to determine that the technology in 
     question has the potential to benefit the Department 
     significantly and that there is no private market reasonably 
     available to facilitate regulatory certification. The 
     amendment also would expand the annual reporting requirement 
     under section 2706(a) of title 10, United States Code, to 
     ensure accountability for the use of these cooperative 
     agreements.
       The conferees agree that the purpose of this provision is 
     to expand the current practice of site specific environmental 
     technology certification and to facilitate broader regulatory 
     acceptance. The conferees expect that the use of cooperative 
     agreements will promote flexibility, cost effectiveness, and 
     efficiency in achieving regulatory acceptance and application 
     of new technologies that will help the Department meet 
     environmental requirements.
       The continuation of this new authority will be contingent 
     upon the degree to which regulatory acceptance is effectively 
     expanded. The conferees will carefully review the 
     Department's annual report to determine the effectiveness of 
     the cooperative agreement authority.
     Repeal of redundant notification and consultation 
         requirements regarding remedial investigations and 
         feasibility studies at certain installations to be closed 
         under the base closure laws (sec. 328)
       The Senate amendment contained a provision (sec. 343) that 
     would repeal section 334 of the National Defense 
     Authorization Act for Fiscal Years 1992 and 1993. Section 334 
     triggers redundant notification and consultation requirements 
     regarding remedial investigations and feasibility studies at 
     certain installations to be closed under the base closure 
     laws.
       The House bill contained no similar provision.
       The House recedes.
     Authority for agreements with Indian tribes for services 
         under the environmental restoration program (sec. 329)
       The Senate amendment contained a provision (sec. 352) that 
     would modify section 2701 of title 10, United States Code, 
     specifically to authorize the Secretary of Defense to enter 
     into agreements to obtain the reimbursable services of any 
     Indian tribe that assists the Secretary in carrying out 
     Department of Defense environmental restoration

[[Page H9282]]

     activities. Section 2701 currently authorizes the Secretary 
     to enter into such agreements with any other Federal, State 
     or local government agency. The provision would make it clear 
     that an Indian tribe may be a party to such an agreement.
       The House bill contained no similar provision.
       The House recedes.
     Authority to withhold listing of Federal facilities on the 
         National Priorities List (sec. 330)
       The Senate amendment contained a provision (sec. 345) that 
     would amend section 120(d) of the Comprehensive Environmental 
     Response, Compensation and Liability Act (CERCLA) of 1980 (42 
     U.S.C. 9620(d)) by providing the Environmental Protection 
     Agency with the discretion to withhold National Priorities 
     List designation of a Federal facility cleanup action if the 
     site is already subject to an approved Federal or State 
     cleanup plan.
       The House bill contained no similar provision.
       The House recedes.
     Clarification of meaning of uncontaminated property for 
         purposes of transfer by the United States (sec. 331)
       The Senate amendment contained a provision (sec. 347) that 
     would amend section 120(h)(4)(A) of the Comprehensive 
     Environmental Response, Compensation and Liability Act 
     (CERCLA) of 1980 (42 U.S.C. 9620(h)) to expand the scope of 
     clean parcel determinations.
       The House bill contained no similar provision.
       The House recedes.
       The conferees have concluded that the Senate amendment 
     would facilitate the expeditious transfer of clean parcels on 
     closing installations, facilitating economic reuse. The 
     provision is consistent with the administration's legislative 
     proposal.
     Conservation and cultural activities (sec. 332)
       The House bill contained a provision (sec. 323) that would 
     authorize the Secretary of Defense to establish and execute a 
     ``Conservation and Readiness Program.'' The provision would 
     allow for the use of cooperative agreements and grants to 
     facilitate the participation of public and private agencies, 
     organizations, institutions, individuals, or other entities. 
     The purpose of the program would be to conduct and manage 
     coordinated conservation and cultural activities that have 
     regional or Department of Defense-side significance.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would permit the 
     Secretary of Defense to establish and carry out a program to 
     address cultural and natural resource issues that have 
     regional or Department of Defense-wide significance and that 
     involve more than one military department. The amendment 
     would eliminate the Secretary's authority to award grants and 
     would establish criteria for determining which conservation 
     and cultural activities would be eligible for the program.
       The conferees recognize that there are many conservation 
     and cultural activities that are necessary to support joint 
     military requirements. For example, assessing bird migratory 
     patterns so that operational flights may avoid high bird 
     volume transit areas at certain times of the year enhances 
     the safety of flight operations for all the services, and it 
     would not make sense for each service to perform its own 
     separate study of such migratory patterns. The military 
     departments have an ongoing obligation to ensure that there 
     is adequate funding to respond to the conservation and 
     cultural issues that arise at military installations. 
     Accordingly, the Department of Defense has developed a 
     definitive annual planning, programming, and budgeting 
     strategy for the preservation of cultural and natural 
     resources. The instant program recognizes that development.
       The conferees believe that it is also necessary to have a 
     Defense-wide program for cultural and natural resource 
     management. However, there should be specific criteria for 
     determining program eligibility in order to avoid some of the 
     abuses that have existed under the Legacy Program. Such a 
     program will allow the Department of Defense to conduct 
     regionally significant, multi-component, operationally or 
     legally compelled natural and cultural activities in a 
     coordinated, uniform, and efficient manner. Any funds 
     appropriated for the Legacy Program shall be subject to the 
     criteria set forth in this provision.
     Navy program to monitor ecological effects of organotin (sec. 
         333)
       The House bill contained a provision (sec. 327) that would 
     require the Secretary of the Navy, in consultation with the 
     Environmental Protection Agency (EPA), to develop and 
     implement a program to monitor the concentrations of 
     organotin in the water column, sediments, and aquatic 
     organisms of representative estuaries and near-coastal waters 
     of the United States, as described in Organotin Antifouling 
     Paint Control Act of 1988 (OAPCA) (Public Law 100-333). The 
     program would be designed to produce high quality data to 
     enable the EPA to develop water quality criteria concerning 
     organotin compounds. In addition, the Secretary of the Navy 
     would be required to submit to Congress, no later than June 
     1, 1997, a report explaining the monitoring program and 
     describing the results of the analysis performed pursuant to 
     that program.
       The Organotin Antifouling Paint Control Act of 1988 (OAPCA) 
     (Public Law 100-333) was enacted by Congress to protect 
     marine life by reducing the quantities of organotin, a highly 
     toxic ingredient in antifouling paints used on vessels that 
     navigate the waters of the United States. Despite the fact 
     that the Act imposed a March 30, 1989 deadline on the 
     Environmental Protection Agency (EPA) for the certification 
     of organotin release rates and water quality criteria, such 
     criteria have yet to be established. As a result, there are 
     no uniform national water quality standards for organotin. 
     The OAPCA also directed the EPA to implement a 10 year 
     organotin monitoring program and to submit annual reports to 
     Congress. Only one report has been submitted.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would limit the 
     application of the provision. The EPA would be obligated to 
     agree to provide the Navy with advance funding. The 
     requirement for Navy monitoring would terminate after five 
     years. The Navy would also submit to Congress a report 
     describing the results of its monitoring activities.
       Although the conferees agree that the Navy should not be 
     required to perform the entire organotin monitoring function 
     it does, however, appear evident that the EPA is incapable of 
     meeting its statutory mandate. The conferees agree that this 
     is a unique situation and does not set a precedent for 
     assigning environmental monitoring activities to the Navy in 
     the future. Finally, the conferees expect that, with the 
     implementation of the Navy monitoring activities, the EPA 
     will make progress toward completion of its remaining 
     responsibilities and develop water quality standards for 
     organotin.
     Authority to transfer contaminated Federal property before 
         completion of required response actions (sec. 334)
       The Senate amendment contained a provision (sec. 346) that 
     would amend section 120(h)(3)(B) of the Comprehensive 
     Environmental Response, Compensation, and Liability Act 
     (CERCLA) of 1980 (42 U.S.C. 9620) to authorize the United 
     States to transfer contaminated federal property before an 
     approved remedial design is in place. The Senate provision 
     would require a federal agency to provide remedial action 
     assurances in the deed or other agreement that is proposed to 
     govern the transfer. That approach is similar to the purchase 
     agreements used in the private sector, with the additional 
     element of regulatory participation. The Senate provision was 
     based on a legislative proposal submitted by the 
     administration to facilitate reuse of contaminated property 
     and to eliminate the disparate treatment between public and 
     private sector transfers of contaminated property.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
       Prior to the transfer of property under this provision, it 
     must be determined that the property is suitable for 
     transfer, that the intended use is consistent with protection 
     of human health and the environment, and that the deed or 
     other agreement proposed to govern the transfer contains 
     response action assurances. The conferees note that the 
     provision would allow transfers to accommodate the laws of 
     different states. Moreover, the conferees agree that the 
     provision does not change existing federal responsibility 
     with respect to response action at transferred property. 
     Although the provision amended section 120(a)(4) of CERCLA 
     (42 U.S.C. 9601 et seq.), with respect to such property, it 
     should not be construed to otherwise limit or expand the 
     sovereign immunity waiver under this section.

  Subtitle D--Commissaries and Nonappropriated Fund Instrumentalities


                     legislative provisions adopted

     Contracts with other agencies to provide or obtain goods and 
         services to promote efficient operation and management of 
         exchanges and morale, welfare, and recreation activities 
         (sec. 341)
       The House bill contained a provision (sec. 341) that would 
     provide authority for exchanges and morale, welfare and 
     recreation systems (MWR) to enter into contracts or other 
     agreements with another element of the Department of Defense 
     or another Federal department, agency or instrumentality to 
     provide goods and services beneficial to the efficient 
     management and operation of exchange and MWR systems.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Noncompetitive procurement of brand-name commercial items for 
         resale in commissary stores (sec. 342)
       The House bill contained a provision (sec. 342) that would 
     clarify that, in order to receive the exception from 
     competition in contracting requirements, a commercial item 
     has to be regularly sold outside the commissary store under 
     the same brandname as it would be sold in the commissary 
     store.
       The Senate amendment contained a similar provision (sec. 
     363).
       The Senate recedes with a clarifying amendment.
       The conferees intend that commissary stores only acquire 
     items for resale under the brand-name exemption to the 
     Competition in Contracting Act that are ordinarily

[[Page H9283]]

     available to the general public. The military commissary 
     system is not an appropriate vehicle to sell items for which 
     the distribution is limited to the military market unless 
     they have been acquired for resale through competitive 
     procedures. Because the dynamics of the marketplace often 
     offer significant opportunities for consumer savings during 
     the introductory sale period for new products, it is not the 
     conferees intent that these provisions limit the 
     introductions of the new items into the commissary system 
     when their release to the commissary system is simultaneous 
     with their introduction in the commercial sector.
     Prohibition of sales or rental of sexually explicit material 
         (sec. 343).
       The House bill contained a provision (sec. 343) that would 
     prohibit the sale or rental of sexually explicit written or 
     videotaped material on property under the jurisdiction of the 
     Department of Defense.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.

     Subtitle E--Performance of Functions by Private-Sector Sources


                     LEGISLATIVE PROVISIONS ADOPTED

     Extension of requirement for competitive procurement of 
         printing and duplication services (sec. 351)
       The House bill contained a provision (sec. 351) that would 
     extend section 351 of the National Defense Authorization Act 
     for Fiscal 1996 (Public Law 104-106) which directed the 
     Defense Printing Service (DPS) to competitively procure from 
     private sector sources at least 70 percent of its printing 
     and duplication work. The provision also requires a report on 
     the DPS compliance with this requirement.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Reporting Requirements under Demonstration project for 
         purchase of fire, security, police, public works, and 
         utility services from local government agencies (sec. 
         352)
       The House bill contained a provision (sec. 832) that would 
     extend the authority of the Department of Defense (DOD) to 
     conduct a demonstration project for fire, safety, and other 
     services for an additional 2 years. The provision would also 
     require the DOD to submit a report on this project to the 
     Congress during each of these two years.
       The Senate had a similar provision.
       The Senate recedes with a technical amendment.

                       Subtitle F--Other Matters


                     legislative provisions adopted

     Authority for use of appropriated funds for recruiting 
         functions (sec. 361)
       The House bill contained a provision (sec. 1034) that would 
     authorize the secretaries of the military departments to 
     expend appropriated funds for small meals and snacks during 
     recruiting functions.
       The Senate amendment contained a similar provision (sec. 
     362) that would authorize this expenditure for a five year 
     period, and specify that the refreshments be provided for 
     members of the Delayed Entry Program, other prospects, and 
     community leaders.
       The House recedes with a clarifying amendment.
     Training of members of the uniformed services at non-
         government facilities (sec. 362)
       The Senate amendment contained a provision (sec. 1065) that 
     would authorize military personnel to use the same procedures 
     for acquiring commercial training courses as civilian 
     personnel.
       The House bill contained no similar provision.
       The House recedes with an amendment that would include this 
     authority in title 10, United States Code.
     Requirement for preparation of plan for improved operation of 
         working-capital funds and effect of failure to produce an 
         approved plan (sec. 363)
       The House bill contained a provision (sec. 360) that would 
     terminate the Defense Business Operations Fund (DBOF) 
     effective October 1, 1998. It also would require the 
     Secretary of Defense to submit to the Congress a plan to 
     improve the management and performance of the industrial, 
     commercial, and support activities currently managed through 
     the DBOF not later than September 30, 1997.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would delay the 
     termination of DBOF until October 1, 1999. The conferees 
     believe strong action is in order to focus the attention of 
     the Department of Defense (DOD) upon serious financial and 
     management shortfalls in DBOF. While the conferees fully 
     support the concept of providing full visibility of the total 
     costs of industrial and support activities, the conferees 
     believe that an update to the DBOF management plan is long 
     overdue. The conferees urge DOD to develop a plan that 
     provides stability to DBOF activities, while protecting 
     unique capabilities critical during war or mobilization. It 
     is the intent of the conferees to use the report required in 
     this provision as a basis to review the decision on the 
     termination of DBOF.
     Increase in capital asset threshold under Defense Business 
         Operations Fund (sec. 364)
       The House bill contained a provision (sec. 361) that would 
     raise the capital asset threshold in a Defense Business 
     Operations Fund (DBOF) activity from $50,000 to $100,000.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Expansion of authority to donate unusable food (sec. 365)
       The House bill contained a provision (sec. 369) that would 
     expand the list of eligible recipients for donations of 
     unusable food items from the Department of Defense to state 
     and local governments, many of whom operate their own 
     shelters and food kitchens to feed homeless citizens. The 
     provision would also allow the Defense Logistics Agency (DLA) 
     to participate in this program. Currently, section 2485 of 
     title 10, United States Code; does not include state and 
     local governments among the entities eligible to receive 
     donations of unusable and surplus food items such as Meals 
     Ready To Eat (MREs), and allows only the individual military 
     departments to donate unusable food. This provision would 
     allow DLA to donate MREs and other excess food items from 
     various defense agencies to cities and states who, in turn, 
     could distribute them to homeless individuals and families.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Assistance to committees involved in inauguration of the 
         President (sec. 366)
       The Senate amendment contained a provision (sec. 365) that 
     would amend section 2543 of title 10, United States Code, to 
     allow the Secretary of Defense to provide safety, security, 
     and ceremonial assistance to the Presidential inaugural 
     committee. The Secretary would also be authorized to provide 
     other assistance deemed appropriate, but only if done on a 
     reimbursable basis.
       The House bill contained no similar provision.
       The House recedes.
     Department of Defense support for sporting events (sec. 367)
       The Senate amendment contained a provision (sec. 366) that 
     would allow the Secretary of Defense to provide assistance to 
     civilian law enforcement agencies for security and safety at 
     civilian sporting events if the Attorney General of the 
     United States certifies that such assistance is required to 
     meet essential security and safety needs. The provision would 
     also allow the Secretary of Defense to provide other 
     assistance for these events but only to the extent that the 
     assistance could not be reasonably provided by a source other 
     than the Department of Defense, does not adversely impact on 
     military preparedness, and the organization requesting such 
     assistance reimburses the Department of Defense.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Storage of motor vehicle in lieu of transportation (sec. 368)
       The House bill contained a provision (sec. 363) that would 
     provide storage, at government expense, of privately-owned 
     vehicles for service members when there are restrictions on 
     the normal shipment of these vehicles, and would also provide 
     storage of vehicles for service members who are deployed 
     between 30 and 180 consecutive days.
       The Senate amendment contained a similar provision (sec. 
     622).
       The Senate recedes with an amendment that would limit 
     storage of vehicles to those service members who are deployed 
     on contingency operations.
     Security protections at Department of Defense facilities in 
         the national capital region (sec. 369)
       The House bill contained a provision (sec. 365) that would 
     permit the Defense Protection Service (DPS) to provide 
     emergency protection and security services to sensitive 
     defense activities in the National Capital Region (NCR).
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Administration of midshipmen's store and other Naval Academy 
         support activities as nonappropriated fund 
         instrumentality (sec. 370)
       The Senate amendment contained a provision (sec. 364) that 
     would authorize the conversion of all midshipmen trust fund 
     operations that support the Naval Academy and the Brigade of 
     Midshipmen to nonappropriated fund status.
       The House bill contained no similar provision.
       The House recedes with an amendment that would specify that 
     the employment status of current employees is protected 
     during and after this conversion.
     Reimbursement under agreement for instruction of civilian 
         students at Foreign Language Institute of the Defense 
         Language Institute (sec. 371)
       The Senate amendment contained a provision (sec. 369) that 
     would authorize the Secretary of the Army to determine the 
     amount of reimbursement an educational institution would be 
     required to pay in order to permit non-government students to 
     receive instruction at the Defense Language Institute.
       The House bill contained no similar provision.
       The House recedes with an amendment that would ensure that 
     the reimbursement rate would not be less than the rate paid 
     by

[[Page H9284]]

     other governmental agencies, and would permit the Secretary 
     of the Army to accept reimbursement in-kind as part of the 
     reimbursement on a case-by-case basis.
     Assistance to local educational agencies that benefit 
         dependents of members of the Armed Forces and Department 
         of Defense civilian employees (sec. 372)
       The House bill contained a provision (sec. 367) that would 
     authorize $58.0 million for payment to local educational 
     agencies that provide educational services to Department of 
     Defense personnel and their dependents. The provision would 
     also require DOD to notify these agencies that they are 
     eligible for such assistance.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would provide 
     $35.0 million.
     Renovation of building for Defense Finance and Accounting 
         Service center, Fort Benjamin Harrison, Indian (sec. 373)
       The Senate amendment contained a provision (sec. 367) that 
     would authorize the Department of Defense to transfer 
     operating funds to the General Services Administration (GSA) 
     for purposes of renovating Building 1 at Fort Benjamin 
     Harrison, Indiana, which is occupied by the Defense Finance 
     and Accounting Service.
       The House bill contained no similar provision.
       The House recedes with an amendment that would ensure that 
     the DOD is fully reimbursed by the GSA for the funds which 
     the DOD expends on the renovation project.
     Food donation pilot program at service academies (sec. 374)
       The Senate amendment contained a provision (sec. 1073) that 
     would authorize the service academies to conduct food 
     donation programs to serve the poor and homeless people 
     consistent with those programs authorized to be conducted by 
     other military activities.
       The House bill contained no similar provision.
       The House recedes.
     Authority of Air National Guard to provide certain services 
         at Lincoln Municipal Airport, Lincoln, Nebraska (sec. 
         375)
       The Senate amendment contained a provision (sec. 370) that 
     would provide the authority for the Nebraska Air National 
     Guard to provide fire and rescue services at the Lincoln 
     Municipal Airport in Lincoln, Nebraska.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require such 
     services to be provided only if the Nebraska Air National 
     Guard and the Lincoln Municipal Airport Authority enter into 
     an agreement providing reimbursement to the Air National 
     Guard for the cost of providing such services. The agreement 
     must also provide an indemnification from any claim for 
     damages or injury to any person or property arising out of 
     the provision of such services or the failure to provide such 
     services.
     Technical amendment regarding impact aid program (sec. 376)
       The Senate amendment contained a provision (sec. 1086) that 
     would amend the special rule for impact aid payments for 
     eligible federally connected children and would prohibit the 
     Secretary of Education from making payments to school 
     districts when the eligibility is associated with property 
     used for Department of Defense activities, unless such funds 
     are transferred from the Department of Defense.
       The House bill contained no similar provision.
       The House recedes with an amendment that would strike the 
     portion of the provision that required funds to be 
     transferred from the Department of Defense.


                   legislative provisions not adopted

     Depot-level activities
       The house bill contained a provision (sec. 312) that would 
     exclude large maintenance projects from the calculations for 
     determining the amount of depot maintenance that is performed 
     by private contractors.
       The Senate amendment contained a number of provisions 
     (secs. 321-330) that would make numerous changes to the 
     current legislation regarding the performance of depot 
     maintenance within the Department of Defense (DOD). Section 
     321 would reinforce the idea that core logistics functions of 
     the DOD should be performed at government owned depots, using 
     government owned equipment operated by government employees. 
     Section 322 would change the current 60/40 ratio, as outlined 
     in section 2466 of title 10, United States Code. Section 323 
     would require the Secretary of Defense to annually report on 
     the amount of depot maintenance performed by the public 
     sector during the previous year and the amount of maintenance 
     performed by the private sector. Section 324 would codify the 
     definition of depot maintenance.
       In addition, section 325 would require the Department of 
     Defense to provide the congressional defense committees with 
     a report outlining its plan for the performance of depot 
     maintenance at public depots and by private industry. This 
     report would require the DOD to answer some of the questions 
     that did not answer last year. Section 326 would require the 
     Department of Defense to provide the congressional defense 
     committees with a report outlining the competitive procedures 
     used by the Department of Defense in determining whether the 
     depot maintenance workload should be performed by a public 
     depot or a private entity.
       Furthermore, section 327 would require the Joint Chiefs of 
     Staff to perform a risk assessment regarding what depot 
     maintenance workloads could be performed by the private 
     sector and what workloads need to be maintained in depots 
     owned and operated by the Department of Defense. Section 329 
     would require a competition between all DOD aviation depots 
     to determine which depot can perform the depot maintenance on 
     F-18 aircraft most efficiently. Finally, section 330 would 
     require the Department of Defense to perform a competition 
     for the workload currently performed at Kelly and McClellan 
     AFB to determine if the work should be moved to another 
     public depot or to be privatized in place.
       The House and Senate recede. The conference agreement does 
     not contain any of these provisions. The conferees agree not 
     to take any action regarding these issues this year.
     Master Ship Repair Agreement
       The House bill contained a provision (sec. 352) that would 
     require the Secretary of the Navy to award complex ship 
     repairs and overhauls only to qualified shipyard contractors. 
     The current Navy requirements for Master Ship Repair 
     Agreement (MSRA) qualification includes a requirement for a 
     contractor owned dry-dock facility. This section would not 
     apply to repairs and overhauls performed on the Pacific Coast 
     of the United States.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees are aware that the Navy would like to revise 
     its requirements for MSRA certification by increasing 
     capability requirements which will demand a more robust and 
     extensive repair capability, and will delete the requirement 
     for a contractor owned dry-dock facility. Under these new 
     requirements the Navy would establish dry-dock requirements 
     on an individual repair contract solicitation basis. The 
     conferees believe that such a revision in the MSRA 
     requirements would allow more private shipyards to compete 
     for repair contracts that do not require contractor owned 
     dry-dock facilities. The conferees understand that this new 
     Navy policy for ship repair contracts is designed to insure 
     an adequate and comprehensive ship repair industrial base to 
     meet current and future Navy requirements. The conferees 
     further believe that this policy change will provide 
     stability to the Navy ship repair and overhaul program. 
     Therefore, the conferees direct the Secretary of the Navy to 
     implement this new policy as soon as possible.
     National Defense Reserve Fleet
       The budget request contained $90.0 million in the National 
     Defense Sealift Fund for the acquisition and modification of 
     roll-on/roll-off (RO/RO) ships for introduction into the 
     Ready Reserve Force (RRF) component of the National Defense 
     Reserve Fleet (NDRF).
       The Senate amendment contained a provision (sec. 312) that 
     would:
       (1) waive the current congressionally imposed restriction 
     on the acquisition of RO/ROs from the world market to permit 
     the acquisition and modification of up to five such RO/ROs 
     for introduction into the RRF; and
       (2) authorize an increase of $60.0 million above the budget 
     request for the acquisition and modification of two 
     additional RO/ROs for the RRF.
       The House bill contained no similar provision. The House 
     bill would reduce the budget request by the $90.0 million 
     included in it for the acquisition and modification of 
     foreign-built RO/ROs and apply these funds to the purchase of 
     a maritime prepositioning ship for the Marine Corps.
       The Senate recedes.
     Restriction on Coast Guard funding
       The Senate amendment contained a provision (sec. 314) that 
     would reject any authorization for the Department of Defense 
     to fund the Coast Guard through budget subfunction 054.
       The House bill contained no similar provision.
       The Senate recedes.
     Oceanography
       The Senate amendment contained a provision (sec. 315) that 
     would authorize an additional $6.2 million for oceanographic 
     ship operations and data analysis for the U.S. Navy.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees recognize the importance of the oceanographic 
     activities of the Navy and authorize an additional $6.2 
     million for this purpose in the operations and maintenance 
     account.
     Firefighting and security-guard functions at facilities 
         leased by the Government
       The Senate amendment contained a provision (sec. 361) that 
     would modify the current prohibition on contracting for 
     firefighting and security-guard services. This provision 
     would amend current legislation by clarifying the authority 
     of the Department of Defense to contract with non-federal 
     employees for these services if they are to be carried out at 
     a private facility at which a Federal Government activity is 
     located pursuant to a lease of the facility.
       The House bill contained no similar provision.
       The Senate recedes.
     Computer emergency response team
       The Senate amendment contained a provision (sec. 368) that 
     would authorize $2.0 million to be used by the Software 
     Engineering

[[Page H9285]]

     Institute for use by the Computer Emergency Response Team.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees support the important work of the Computer 
     Emergency Response Team and have agreed to authorize an 
     additional $2.0 million for this purpose in the operations 
     and maintenance tables.

              Title IV--Military Personnel Authorizations


                       items of special interest

     Military Personnel Funding
       The conferees agreed to authorize that $70.1 billion, which 
     is $273.3 million above the President's request, be 
     appropriated for military personnel. The conference agreement 
     includes that following:


                  air national guard fighter aircraft

       The conferees authorize the Air National Guard personnel 
     end strength 576 part-time personnel, 249 active guard/
     reserves and 343 military technicians above the budget 
     request and recommend an increase of $8.5 million to the 
     personnel authorization to provide Air National Guard fighter 
     squadrons with 15 primary authorized aircraft (PAA) per 
     squadron vice the requested 12.


                   air national guard c-130 aircraft

       The conferees authorize the Air National Guard personnel 
     end strength 310 part-time personnel, 25 active guard/
     reserves and 50 military technicians above the budget request 
     and recommend an increase of $2.0 million to the personnel 
     authorization to provide Air National Guard tactical airlift 
     squadrons with 12 primary authorized aircraft (PAA) per 
     squadron vice the requested 10.


     army military personnel account shortfall for fiscal year 1997

       The conferees authorized a $50.0 million addition to the 
     Army military personnel account.


                   reserve full time manning increase

       In recognition of the expanded role of both the Army and 
     Air Force Reserve in the early-deploying contingency forces 
     and day-to-day operational tempo, the conferees authorize the 
     Secretary of the Army to increase the number of Active Guard 
     and Reserve (AGR) by 254 personnel and authorize the 
     Secretary of the Air Force to increase the number of AGR by 
     30 personnel. The conferees authorize an increase of $8.0 
     million above the President's request for reserves on active 
     duty to support the reserves in the Army and $2.6 million for 
     reserves on active duty to support the reserves in the Air 
     Force.


                     navy maritime patrol aircraft

       The conferees authorize the Navy to increase the number of 
     Navy P-3C maritime patrol aircraft squadrons by two (1 
     active, 1 reserve) above the 12 active and 8 reserve 
     squadrons requested in the President's budget. As a 
     consequence, the conferees authorize the following increases: 
     Navy active personnel accounts (End Strength: 418 personnel, 
     and $9.0 million); Naval Reserve personnel accounts (End 
     Strength: 97 Training and Administration of the Reserves 
     (TAR) personnel, 266 part-time personnel, and $4.0 million).


              reserve component individual training funds

       The conferees authorize $7.5 million above the President's 
     budget request for National Guard personnel account to fund 
     schools and special training for military occupational skill 
     training. In addition, the conferees authorize funding within 
     the Army Reserve personnel account to provide troop program 
     unit professional development training, as well as individual 
     skills training, by $7.5 million.

                       Subtitle A--Active Forces


                     legislative provisions adopted

     End strengths for active forces (sec. 401)
       The House bill contained a provision (sec. 401) that would 
     authorize end strengths for active forces.
       The Senate amendment contained a similar provision (sec. 
     401).
       The Senate recedes with an amendment that includes the 
     authorized strengths for officers.

------------------------------------------------------------------------
                                               Fiscal year              
                               -----------------------------------------
                                     1996         1997         1997     
                                authorization   request   recommendation
------------------------------------------------------------------------
Army:                                                                   
    Total.....................      495,000      495,000       495,000  
    Officer...................       81,300       80,300        80,300  
Navy:                                                                   
    Total.....................      428,340      406,900       407,318  
    Officer...................       58,870       56,100        56,165  
Marine Corps:                                                           
    Total.....................      174,000      174,000       174,000  
    Officer...................       17,978       17,978        17,978  
Air Force:                                                              
    Total.....................      388,200      381,100       381,100  
    Officer...................       75,928       74,445        74,445  
------------------------------------------------------------------------

     Permanent end strength levels to support two major regional 
         contingencies (sec. 402)
       The House bill contained a provision (sec. 402) that would 
     require that annual defense budget requests submitted to 
     Congress must provide at least enough funding to maintain the 
     mainimum active end strengths prescribed in the National 
     Defense Authorization Act for Fiscal Year 1996 (Public Law 
     104-106).
       The Senate amendment contained a provision (sec. 402) that 
     would increase the flexibility afforded military services to 
     manage their active duty end strengths from 0.5 percent to 
     5.0 percent.
       The Senate recedes with an amendment that combines the two 
     provisions and provides the military services 1.0 percent 
     flexibility in order to manage their end strengths 
     effectively.
     Authorized strengths for commissioned officers on active duty 
         in grades of major, lieutenant colonel, and colonel and 
         Navy grades of lieutenant commander, commander, and 
         captain (sec. 403)
       The House bill contained a provision (sec. 403) that would 
     permanently raise the grade ceilings of active duty Army, Air 
     Force, and Marine Corps majors and lieutenant colonels and 
     active duty Navy lieutenant commanders, commanders, and 
     captains relative to the total number of commissioned 
     officers on active duty.
       The Senate amendment contained a similar provision (sec. 
     403).
       The House recedes.
     Extension of requirement for recommendations regarding 
         appointments to joint 4-star officer positions (sec. 404)
       The Senate amendment contained a provision (sec. 404) that 
     would extend, for three years, the process for exemption of 
     combatant commanders (CINCs), the Deputy Commander-in-Chief 
     of the U.S. European Command (DCINCEUR), and the Commander-
     in-Chief, U.S. Forces, Korea, from the ceiling for grades 
     above major general or rear admiral under certain conditions.
       The House bill contained no similar provision.
       The House recedes with an amendment that would extend the 
     expiration date contained in section 525(b)(5)(c) from 
     September 30, 1997 to September 30, 2000.
     Increase in authorized number of general officers on active 
         duty in the Marine Corps (sec. 405)
       The Senate amendment contained a provision (sec. 405) that 
     would increase the number of active duty general officers in 
     the Marine Corps by 12, from 68 to 80.
       The House bill contained no similar provision.
       The House recedes.
       The conferees do not intend that this action prejudice the 
     outcome of the comprehensive study of general and flag 
     officers required by section 1213 of this conference report 
     which would include these authorizations.

                       Subtitle B--Reserve Forces


                     Legislative provisions adopted

     End strengths for selected reserve (sec. 411)
       The House bill contained a provision (sec. 411) that would 
     authorize the end strength levels for the selected reserve 
     for fiscal year 1997.
       The Senate amendment contained a similar provision (sec. 
     411).
       The Senate recedes with an amendment that would authorize 
     selected reserve end strengths at the higher end strength 
     level for each component.
       The following table summarizes the authorized end strength 
     levels for the selected reserve for fiscal year 1997.

------------------------------------------------------------------------
                                               Fiscal year              
                               -----------------------------------------
                                     1996         1997         1997     
                                authorization   request   recommendation
------------------------------------------------------------------------
The Army National Guard of the                                          
 United States                      373,000      366,758       366,758  
The Army Reserve                    230,000      214,925       215,179  
The Naval Reserve                    98,894       95,941        96,304  
The Marine Corps Reserve             42,274       42,000        42,000  
The Air National Guard of the                                           
 United States                      112,707      108,018       109,178  
The Air Force Reserve                73,969       73,281        73,311  
The Coast Guard Reserve               8,000        8,000         8,000  
------------------------------------------------------------------------

     End strengths for Reserves on active duty in support of the 
         Reserves (sec. 412)
       The House bill contained a provision (sec. 412) that would 
     authorize reserve full-time support end strength levels for 
     fiscal year 1997.
       The Senate amendment contained a similar provision (sec. 
     412).
       The Senate recedes with an amendment that would authorize 
     end strengths for reserves on active duty in support of the 
     reserves at the higher end strength level for each component.
       The following table summarizes the reserve full-time 
     support end strength levels for fiscal year 1997.

------------------------------------------------------------------------
                                               Fiscal year              
                               -----------------------------------------
                                     1996         1997         1997     
                                authorization   request   recommendation
------------------------------------------------------------------------
The Army National Guard of the                                          
 United States................       23,390       22,798        22,798  
The Army Reserve..............       11,575       11,475        11,729  
The Naval Reserve.............       17,587       16,506        16,603  
The Marine Corps Reserve......        2,559        2,559         2,559  
The Air National Guard of the                                           
 United States................       10,066       10,129        10,403  
The Air Force Reserve.........          628          625           655  
------------------------------------------------------------------------

     End strengths for military technicians (sec. 413)
       The House bill contained a provision (sec. 413) that would 
     authorize military technician end strength levels for fiscal 
     year 1997.
       The Senate amendment contained a provision (sec. 518) that 
     would modify the authorization for military technicians in 
     the Air National Guard for fiscal year 1997.
       The Senate recedes with an amendment that adds the 
     technician levels in the Senate amendment to those in the 
     House bill.
       The following table summarizes the authorized end strength 
     levels for military technicians for fiscal year 1997.

[[Page H9286]]



------------------------------------------------------------------------
                                                 Fiscal year            
                                   -------------------------------------
                                       1996       1997         1997     
                                     program    request   recommendation
------------------------------------------------------------------------
The Army National Guard of the                                          
 United States....................     25,500     25,500        25,500  
The Army Reserve..................      6,630      6,799         6,799  
The Air National Guard of the                                           
 United States....................     22,906     22,281        23,299  
The Air Force Reserve.............      9,802      9,704         9,802  
------------------------------------------------------------------------

     Assurance of continued assignment of military personnel to 
         serve in Selective Service System (sec. 414)
       The Senate amendment contained a provision (sec. 413) that 
     would exempt from end strength ceilings military personnel 
     assigned to duties in support of the Selective Service 
     System.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     services to support the Selective Service System at the 
     requirement level set by the Director, Selective Service. The 
     requirement level would not exceed 745 military personnel.

                   Title V--Military Personnel Policy


                       items of special interest

     General and flag officer career patterns
       The conferees are concerned about the career patterns of 
     officers once they are selected for promotion to general and 
     flag officer grades. The current general and flag officer 
     selection, assignment and development process may not 
     effectively contribute to the preparation of those officers 
     for increasing levels of responsibility and maximum 
     performance efficiency at each level of assignment. Specific 
     concerns include: 1) the length of time officers spend on 
     promotion lists to grades 0-7 and 0-8 before they are 
     actually promoted; 2) the tempo with which general and flag 
     officers are rotated through important positions; 3) the 
     effect of this tempo both on the effectiveness of individual 
     officers in each position to which they are assigned and on 
     the overall value these officers add in each position to 
     which they are assigned; and 4) the consequences of requiring 
     general and flag officers to retire upon completion of 35 
     years of service.
       The conferees direct the Secretary of Defense to review the 
     career patterns of general and flag officers and report to 
     the Committee on Armed Services of the Senate and the 
     Committee on National Security of the House of 
     Representatives not later than April 1, 1997. The report 
     should address, at a minimum:
       (1) Average time-in-grade at the time of selection for 
     promotion to each general and flag officer grade. Average 
     time-in-grade should be reported by fiscal year, by service, 
     by competitive category and by grade. For the purposes of 
     this report, the time of selection should reflect the date 
     the respective promotion board report is approved by the 
     official authorized to approve such report;
       (2) Average time-in-grade at the time of promotion to each 
     general and flag officer grade. Average time-in-grade should 
     be reported by fiscal year, by service, by competitive 
     category and by grade;
       (3) Average tour lengths for general and flag officers who 
     changed positions or assignments during fiscal years 1991 
     through 1995. Tour lengths should be reported by fiscal year, 
     by service, and by grade. Joint tours should be addressed 
     separately from non-joint tours; and
       (4) Assessment of the continued appropriateness of the 
     mandatory retirement of officers after 35 years of 
     commissioned service as required by section 636 of title 10, 
     United States Code.
       The conferees do not expect the Secretary of Defense to 
     delegate the conduct of this review or the preparation of the 
     required report to the individual military departments, the 
     uniformed services or to the Joint Staff.


                         LEGISLATIVE PROVISIONS

                  Subtitle A--Officer Personnel Policy


                     LEGISLATIVE PROVISION ADOPTED

     Grade of Chief of Naval Research (sec. 501)
       The Senate amendment contained a provision (sec. 506) that 
     would establish that an officer, while serving in the Office 
     of Naval Research as Chief of Naval Research, have at least 
     the grade of rear admiral (upper half).
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
       The conferees do not intend that this action prejudice the 
     outcome of the comprehensive study of general and flag 
     officers required by section 1213 of this conference report 
     which would include this position.
     Chief and Assistant Chief of Army Nurse Corps and Air Force 
         Nurse Corps (sec. 502)
       The Senate amendment contained two provisions (sec. 540 and 
     541) that would establish the grade of the Chief of the Army 
     Nurse Corps and Chief of the Air Force Nurse Corps as a 
     Brigadier General, and the Assistant Chief of the Army Nurse 
     Corps and Assistant Chief of the Air Force Nurse Corps as a 
     Colonel.
       The House bill contained no similar provision.
       The House recedes with an amendment to combine the two 
     provisions.
       The conferees do not intend that this action prejudice the 
     outcome of the comprehensive study of general and flag 
     officer required by section 1213 of this conference report 
     which will include these positions.
     Navy spot promotion authority for certain lieutenants with 
         critical skills (sec. 503)
       The House bill contained a provision (sec. 503) that would 
     make permanent the authority for the Navy to temporarily 
     promote certain lieutenants in skills for which there is a 
     shortage of qualified officers.
       The Senate amendment contained a provision (sec. 501) that 
     would extend the authority for the Navy to promote 
     temporarily, without Senate confirmation, lieutenants in 
     certain positions from September 30, 1996 until September 30, 
     1997.
       The Senate recedes with an amendment that would make 
     permanent the authority for the Navy to promote temporarily 
     certain lieutenants having certain skills and serving in 
     certain positions, limit the number who may be promoted under 
     this authority to 325, and make such temporary promotions 
     subject to the advice and consent of the Senate.
     Time for award of degrees by unaccredited educational 
         institutions for graduates to be considered educationally 
         qualified for appointment as reserve officers in grade 0-
         3 (sec. 504)
       The Senate amendment contained a provision (sec. 503) that 
     would increase the number of years that the Department of 
     Defense could recognize a baccalaureate degree awarded by 
     qualifying educational institution from three years to eight 
     years.
       The House bill contained no similar provision.
       The House recedes.
     Exception to baccalaureate degree requirement for appointment 
         in the Naval Reserve in grades above 0-2 (sec. 505)
       The House bill contained a provision (sec. 514) that would 
     provide members of the Naval Reserve participating in the 
     Seaman to Admiral program and exception to the requirement 
     for reserve officers to hold a baccalaureate degree in order 
     to be promoted above the grade of lieutenant (junior grade).
       The Senate amendment contained a similar provision (sec. 
     502).
       The conference agreement includes this provision.
     Chief Warrant Officer promotions (sec. 506)
       The Senate amendment contained a provision (sec. 504) that 
     would permit below the zone selection for promotion to Chief 
     Warrant Officer, W-3, and would reduce the time-in-grade 
     requirement for warrant officer promotions from three years 
     to two years.
       The House bill contained no similar provision.
       The House recedes.
     Service credit for senior ROTC cadets and midshipmen in 
         simultaneous membership program (sec. 507)
       The Senate amendment contained a provision (sec. 507) that 
     would provide service credit for longevity and pay to 
     individuals who are simultaneously Senior ROTC Cadets or 
     Midshipmen and enlisted members in the Selected Reserve under 
     the Simultaneous Membership Program (SMP).
       The House bill contained no similar provision.
       The House recedes.
     Continuation on active status for certain reserve officers of 
         the Air Force (sec. 508)
       The House bill contained a provision (sec. 507) that would 
     authorize the Secretary of the Air Force to retain up to 50 
     reserve officers who are designated judge advocates beyond 
     dates of mandatory retirement for years of service.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Reports on response to recommendations concerning 
         improvements to Department of Defense joint manpower 
         process (sec. 509)
       The House bill contained a provision (sec. 504) that would 
     require the Secretary of Defense to provide a semi-annual 
     report to Congress on the status of actions taken to 
     implement the Inspector General recommendations resulting 
     from inspection of the joint manpower process. The provision 
     would also require that the General Accounting Office assess 
     the adequacy and completeness of the Department's corrective 
     actions.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Frequency of reports to Congress on joint officer management 
         policies (sec. 510)
       The House bill contained a provision (sec. 505) that would 
     change the requirement that the Secretary of Defense report 
     to Congress every six months on the promotion rates of 
     officers currently or formerly serving in joint duty 
     assignments.
       The Senate amendment contained a similar provision (sec. 
     505).
       The conference agreement includes this provision.

                 Subtitle B--Enlisted Personnel Policy


                     legislative provisions adopted

     Career service reenlistments for members with at least 10 
         years of service (sec. 511)
       The House bill contained a provision (sec. 501) that would 
     permit the secretaries of the military departments to 
     reenlist noncommissioned officers with 10 or more years of 
     service for indefinite periods of time.
       The Senate amendment contained a similar provision (sec. 
     536).
       The House recedes.
       The conferees recognize that some services may want to 
     retain the current fixed-term enlistment system. 
     Specifically, the conferees urge the Secretary of the Navy to 
     permit the Navy and the Marine Corps to pursue

[[Page H9287]]

     either policy independent of the other service's choice.
     Authority to extend period for entry on active duty under the 
         Delayed Entry Program (sec. 512)
       The House bill contained a provision (sec. 502) that would 
     permit the secretaries of the military departments, on a 
     case-by-case basis, to extend to 18 months the maximum period 
     that a person can remain in the Delayed Entry Program.
       The Senate amendment contained a similar provision (sec. 
     535).
       The conference agreement includes this provision.

                   Subtitle C--Activation and Recall


                     legislative provisions adopted

     Limitations on recall of retired members to active duty (sec. 
         521)
       The Senate amendment contained a provision (sec. 532) that 
     would limit the number of retired officers who may be 
     recalled to active duty to 25 per service at any one time; 
     prohibit the recall of officers who retired as a result of an 
     early retirement board or who retired after being notified 
     that he or she was to be considered by an early retirement 
     board; and limit the tenure of a recall to 12 months.
       The House bill contained no similar provision.
       The House recedes with an amendment that would make the 
     provision effective on September 30, 1997.
     Clarification of definition of active status (sec. 522)
       The House bill contained a provision (sec. 513) that would 
     expand the definition of the term ``active status'' in 
     section 101(d)(4) of title 10, United States Code, to include 
     both officers and enlisted members of the reserve components 
     and make the definition consistent with other references in 
     title 10, United States Code.
       The Senate amendment contained a similar provision (sec. 
     511).
       The conference agreement includes this provision.
     Limitation of requirement for physical examinations of 
         members of National Guard called into federal service 
         (sec. 523)
       The Senate amendment contained a provision (sec. 513) that 
     would repeal the requirement that each member of the National 
     Guard receive a physical examination when called into and 
     again when mustered out of federal service.
       The House bill contained no similar provision.
       The House recedes with an amendment that would repeal the 
     requirement that each member of the National Guard receive a 
     physical examination when called into and again when mustered 
     out of federal service, except when they are mobilized for a 
     contingency operation or a national emergency.

                Subtitle D--Reserve Component Retirement


                     legislative provisions adopted

     Increase in annual limit on days of inactive duty training 
         creditable towards reserve retirement (sec. 531)
       The House bill contained a provision (sec. 631) that would 
     increase the limits on the annual amount of retirement points 
     that a reservist can earn as a result of inactive training 
     from 60 to 75.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Retirement of reserve enlisted members who qualify for active 
         duty retirement after administrative reductions in 
         enlisted grade (sec. 532)
       The House bill contained a provision (sec. 634) that would 
     permit a reserve enlisted member who qualifies for an active 
     duty retirement and who is reduced in grade for reasons other 
     than misconduct to retire in the highest enlisted grade held.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Authority for a reserve on active duty to waive retirement 
         sanctuary (sec. 533)
       The Senate amendment contained a provision (sec. 514) that 
     would permit a reservist serving on active duty for less than 
     180 days to waive the applicability of the retirement 
     sanctuary.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Eligibility of reserves for disability retirement (sec. 534)
       The House bill contained a provision (sec. 633) that would 
     authorize disability retirement benefits defined in Section 
     702 of the National Defense Authorization Act for Fiscal Year 
     1996 (Public Law 104-106), to certain reservists.
       The Senate amendment contained a similar provision (sec. 
     515).
       The House recedes with an amendment that would clarify the 
     effective date for transition of eligibility criteria for 
     reserve disability retirement and other benefits from 
     proximate result of performing duty to a determination of in 
     line of duty.

              Subtitle E--Other Reserve Component Matters


                     LEGISLATIVE PROVISIONS ADOPTED

     Training for reserves on active duty in support of the 
         reserves (sec. 541)
       The House bill contained a provision (sec. 512) that would 
     clarify that a reservist on active duty in support of the 
     reserves may receive training and professional development in 
     the same manner as any other member on active duty.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Eligibility for enrollment in Ready Reserve mobilization 
         income insurance program (sec. 542)
       The House bill contained a provision (sec. 517) that would 
     amend the Ready Reserve mobilization income insurance program 
     to permit members of the Individual Ready Reserve who 
     transfer to the selected reserve to be eligible to 
     participate in the mobilization insurance program.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Reserve credit for participation in Health Professions 
         Scholarship and Financial Assistance Program (sec. 543)
       The House bill contained a provision (sec. 555) that would 
     amend title 10, United States Code, to provide discretionary 
     authority to the secretaries of the military departments to 
     award service credit toward a non-regular retirement for 
     certain members of the armed forces health professions 
     scholarship and financial assistance programs.
       The Senate amendment contained a similar provision (sec. 
     516).
       The conference agreement includes this provision.
     Amendments to Reserve Officer Personnel Management Act 
         provisions (sec. 544)
       The Senate amendment contained a provision (sec. 512) that 
     would make several amendments to the Reserve Officer 
     Personnel Management Act.
       The House bill contained no similar provision.
       The House recedes.
       The conferees direct that the Secretary of Defense provide 
     a report on the number and category of waivers granted under 
     the authority of this provision to the Committee on Armed 
     Services of the Senate and the Committee on National Security 
     of the House of Representatives not later than March 31, 
     1998.
     Report on number of advisers in active component support of 
         reserves pilot program (sec. 545)
       The House bill contained a provision (sec. 515) that would 
     require the Secretary of Defense to determine the appropriate 
     number of active component advisors and recommend such number 
     to Congress.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Sense of Congress and report regarding reemployment rights 
         for mobilized reservists employed in foreign countries 
         (sec. 546)
       The House bill contained a provision (sec. 516) that would 
     express the sense of Congress that there is a lack of 
     reemployment rights afforded reservists who now live in 
     foreign countries and work for U.S. or foreign companies. The 
     provision would also direct the Secretary of Defense, 
     together with the Secretaries of State and Labor, to provide 
     the Congress with recommendations to alleviate the 
     reemployment problems of this group of reservists.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.

                 Subtitle F--Officer Education Programs


                     legislative provisions adopted

     Payment of premiums under mobilization income insurance 
         program (sec. 547)
       The conferees recommend a provision that would clarify how 
     premiums are to be paid under the reserve mobilization income 
     insurance program.
     Oversight and management of Senior Reserve Officers' Training 
         Corps program (sec. 551)
       The House bill contained a provision (sec. 552) that would 
     give priority for enrollment in ROTC to students who were 
     qualified for advanced training, and would prohibit anyone 
     who was ineligible for advanced training from participating 
     in practical military training, field training, or practice 
     cruises, unless the ineligibility was waived by the service 
     secretary. The section would also permit civilians attending 
     ROTC or other courses of military instruction to wear 
     military uniforms only when the individual service 
     regulations specifically authorize such wear.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would ensure 
     uniform application of any criteria that would limit 
     acceptance in ROTC.
     Prohibition on reorganization of Army ROTC Cadet Command or 
         termination of senior ROTC units pending report on ROTC 
         (sec. 552)
       The Senate contained a provision (sec. 523) that would 
     prohibit the reorganization, restructuring, or termination of 
     any Reserve Officers' Training Corps Cadet Command or Senior 
     Reserve Officers Training Corps until 180 days after the 
     issuance of a report on various aspects of the selection for 
     termination process.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.

[[Page H9288]]

     Pilot program to test expansion of ROTC program to include 
         graduate students (sec. 553)
       The House bill contained a provision (sec. 554) that would 
     permit the initial award of Reserve Officers' Training Corps 
     (ROTC) scholarships to people who already have received a 
     baccalaureate degree, provided the recipient executes the 
     required contractual commitments, including enrollment in the 
     ROTC advanced course.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would limit the 
     number of scholarships which could be awarded to graduate 
     students, place a 3-year limit on duration of the program, 
     and require a report from the Secretary of Defense.
     Demonstration project for instruction and support of Army 
         ROTC units by members of the Army Reserve and National 
         Guard (sec. 554)
       The Senate contained a provision (sec. 522) that would 
     require the Secretary of the Army to conduct a demonstration 
     program in order to assess the feasibility and advisability 
     of providing instruction and support to units of the Reserve 
     Officers' Training Corps (ROTC) that use members of the Army 
     Reserve, including the Individual Ready Reserve and the Army 
     National Guard.
       The House bill contained no similar provision.
       The House recedes with an amendment that would limit the 
     demonstration program to three years.
     Extension of maximum age for appointment as a cadet or 
         midshipman in the Senior Reserve Officers' Training Corps 
         and the service academies (sec. 555)
       The House bill contained a provision (sec. 551) that would 
     increase the maximum age for appointment in the Senior 
     Reserve Officers' Training Corps (ROTC), permitting the 
     appointment of persons under 27 years of age. The section 
     would also permit former enlisted members who had served on 
     active duty to be appointed in the Senior ROTC program even 
     though they were older than 27, so long as on the date of 
     their commissioning they would be under 30 years of age. This 
     section would also increase the maximum allowable age of 
     entry into the service academies to 23.
       The Senate amendment contained a similar provision (sec. 
     521).
       The Senate recedes.
     Expansion of eligibility for education benefits to include 
         certain Reserve Officers' Training Corps (ROTC) 
         participants (sec. 556)
       The House bill contained a provision (sec. 556) that would 
     would expand the eligibility for the Montgomery GI Bill 
     education benefits to include ROTC scholarship students who 
     received scholarships with values of less than $2,000 
     annually.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Comptroller General report on cost and policy implications of 
         permitting up to five percent of service academy 
         graduates to be assigned directly to reserve duty upon 
         graduation (sec. 557)
       The House bill contained a provision (sec. 557) that would 
     require the Comptroller General to analyze and report to 
     Congress the cost and policy implications of requiring up to 
     five percent of the graduating class of each of the service 
     academies to serve in the reserve components, and that there 
     be a corresponding increase in the number of Reserve 
     Officers' Training Corps (ROTC) graduates each year placed on 
     active duty.
       The Senate amendment contained no similar provision.
       The Senate recedes.

                   Subtitle G--Decorations and Awards


                     legislative provisions adopted

     Authority for award of medal of honor to certain African 
         American soldiers who served during World War II (sec. 
         561)
       The House bill contained a provision (sec. 1035) that would 
     authorize the Secretary of the Army to award the Medal of 
     Honor to African American former service members who served 
     in the United States Army during World War II and for whom 
     the Army recommended the award of the Medal of Honor after a 
     congressionally mandated review of their records.
       The Senate amendment contained a similar provision (sec. 
     539).
       The Senate recedes.
     Waiver of time limitations for award of certain decorations 
         to specified persons (sec. 562)
       The Senate amendment contained a provision (sec. 542) that 
     would waive the statutory time limitations for the award of 
     military decorations to provide for the award of the 
     Distinguished Flying Cross to certain individuals who have 
     been recommended by the Secretary of the Navy for receipt of 
     this award.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Replacement of certain American Theater Campaign Ribbons 
         (sec. 565)
       The House bill contained a provision (sec. 563) that would 
     authorize the Secretary of the Army to replace, upon request, 
     the American Theater Campaign Ribbon awarded to certain 
     veterans of World War II.
       The Senate amendment contained no similar provision.
       The Senate recedes.

                       Subtitle H--Other Matters


                     legislative provisions adopted

     Hate crimes in the military (sec. 571)
       The House bill contained a provision (sec. 561) that would 
     direct the Secretary of Defense to require each of the 
     military services to conduct human relations training 
     designed to promote a thorough awareness of equal opportunity 
     issues, as well as a sensitivity to ``hate group'' activity. 
     It also would require the Secretary to ensure that 
     prospective recruits, both officer and enlisted, understand 
     the full implications of the oath of office or oath of 
     enlistment in terms of the equal protection and civil 
     liberties protection of the Constitution. Finally, this 
     section would require the Secretary to conduct an annual 
     survey on race relations, gender discrimination and hate 
     group activity.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Disability coverage for members granted excess leave for 
         educational or emergency purposes (sec. 572)
       The Senate amendment contained a provision (sec. 533) that 
     would provide disability coverage for officers who are on 
     excess leave while participating in a educational program.
       The House bill contained no similar provision.
       The House recedes with an amendment that would extend 
     disability coverage to enlisted members on excess leave for 
     emergency purposes.
     Clarification of authority of a reserve judge advocate to act 
         as a military notary public when not in a duty status 
         (sec. 573)
       The House bill contained a provision (sec. 562) that would 
     authorize all judge advocates of the armed forces, adjutants, 
     assistant adjutants, personnel adjutants, and other members 
     of the armed forces designated by regulations of the armed 
     forces to have the same notary public authority without 
     regard to whether they are on active duty or performing 
     inactive duty for training.
       The Senate amendment contained a similar provision (sec. 
     1064).
       The Senate recedes with an amendment that would not permit 
     the authority to apply prior to the date of enactment.
     Panel on jurisdiction of courts-martial for the National 
         Guard when not in Federal service (sec. 574)
       The House bill contained provisions (sec. 531-539) that 
     would make several changes to the law governing the 
     jurisdiction and powers of courts-martial conducted by the 
     National Guard when not in federal service.
       The Senate amendment contained no similar provisions.
       The House recedes with an amendment that would direct the 
     Secretary of Defense to establish a panel to study the 
     jurisdiction of such courts-martial. Matters reviewed by the 
     panel would include the extent of use of courts-martial and 
     nonjudicial punishment in the National guard when not in 
     federal service and the extent to which such courts-martial 
     and nonjudicial punishments were conducted under authority 
     provided by title 32, United States Code or state law. The 
     conference agreement would require a report to Congress no 
     later than March 1, 1997.
     Authority to expand law enforcement placement program to 
         include firefighters (sec. 575)
       The Senate amendment contained a provision (sec. 571) that 
     would include federal firefighters in the program established 
     by the Secretary of Defense to assist eligible members and 
     former members of the armed forces and eligible civilian 
     employees of the Department of Defense to obtain employment 
     in public safety jobs.
       The House bill contained no similar provision.
       The House recedes.
     Improvements to program to assist separated military and 
         civilian personnel to obtain employment as teachers or 
         teachers' aides (sec. 576)
       The Senate amendment contained two provisions (sec. 572 and 
     sec. 1122) pertaining to the Troops-to-Teachers program. 
     These provisions would permit service members retiring under 
     the temporary early retirement authority to participate in 
     the program and would reduce the teaching obligation, 
     incentive grant, and local education authority reimbursement 
     periods from five years to two years.
       The House bill contained no similar provision.
       The House recedes with an amendment that would combine the 
     two Senate provisions into a single provision.
     Retirement at grade to which selected for promotion when a 
         physical disability is found at any physical examination 
         (sec. 577)
       The House bill contained a provision (sec. 632) that would 
     permit disability retirements for service members at the 
     grade to which they would have been promoted had it not been 
     for an intervening physical disability.
       The Senate contained a similar provision (sec. 531).
       The conference agreement includes this provision.
     Revisions to missing persons authorities (sec. 578)
       The Senate amendment contained a provision (sec. 537) that 
     would repeal certain provisions in the Missing Persons Act in 
     the National Defense Authorization Act for Fiscal Year 1996.

[[Page H9289]]

       The House bill contained no similar provision.
       The House recedes with an amendment that would strike the 
     repeal of the requirement that a counsel be appointed for the 
     missing person; strike the repeal of the right to judicial 
     review; and modify the mandatory review of preenactment and 
     special interests cases to include missing persons from the 
     Korean War era.

      Subtitle I--Commissioned Corps of the Public Health Service


                     legislative provisions adopted

     Applicability to Public Health Service of prohibition on 
         crediting cadet or midshipmen service at the service 
         academies (sec. 581)
       The Senate amendment contained a provision (sec. 561) that 
     would clarify that commissioned officers of the Public Health 
     Service, like members of the Armed Forces, do not receive 
     length-of-service credit for service as a student at a 
     service military academy.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Exception to strength limitations for Public Health Service 
         officers assigned to the Department of Defense (sec. 582)
       The House bill contained a provision (sec. 742) that would 
     amend section 207, title 42, United States Code, to exclude 
     commissioned officers of the Public Health Service (PHS) 
     assigned to duty in the Department of Defense from being 
     counted when computing the maximum number of commissioned PHS 
     officers authorized by law.
       The Senate amendment contained a similar provision (sec. 
     562).
       The Senate recedes.
     Authority to provide legal assistance to Public Health 
         Service officers (sec. 583)
       The House bill contained a provision (sec. 563) that would 
     authorize active duty or retired officers of the Commissioned 
     Corps of the Public Health Service and their dependents to be 
     eligible for legal assistance at military installations.
       The Senate amendment contained no similar provision.
       The Senate recedes.


                   LEGISLATIVE PROVISIONS NOT ADOPTED

     Repeal of requirement that commissioned officers be initially 
         appointed in a reserve grade
       The House bill contained a provision (sec. 506) that would 
     repeal the requirement that all commissioned officers be 
     appointed initially as reserve officers.
       The Senate amendment contained no similar provision.
       The House recedes.
     Individual Ready Reserve activation authority
       The House bill contained a provision (sec. 511) that would 
     authorize the President, under Presidential Selection Reserve 
     Call-up, to recall up to 30,000 members of a new category of 
     the Individual Ready Reserve (IRR) that would be created by 
     this section. The new category of the IRR would consist of 
     those personnel in the military skills and occupations, 
     designated by the Secretary of Defense, who had volunteered 
     prior to leaving active duty.
       The Senate amendment contained no similar provision.
       The House recedes.
     ROTC scholarship student participation in simultaneous 
         membership program
       The House bill contained a provision (sec. 553) that would 
     direct the Secretary of Defense to establish a program to 
     permit Reserve Officers' Training Corps (ROTC) scholarship 
     cadets to serve simultaneously as a member of a Selected 
     Reserve unit.
       The Senate amendment contained no similar provision.
       The House recedes.
     Restoration of regulations prohibiting service of homosexuals 
         in the armed forces
       The House bill contained a provision (sec. 566) that would 
     rescind the current Department of Defense policy and relative 
     directive and regulations concerning homosexuality in the 
     armed forces and related Department of Defense and military 
     department regulations, and would reinstate the regulations 
     that were in effect on January 19, 1993.
       The Senate amendment contained no similar provision.
       The House recedes.
     Reenactment and modification of mandatory separation from 
         service for members diagnosed with HIV-1 virus
       The House bill contained a provision (sec. 567) that would 
     restate, with modifications, section 5676 of the National 
     Defense Authorization Act for Fiscal Year 1996 (Public Law 
     104-106) to require the separation of members determined to 
     be HIV-positive.
       The Senate amendment contained no similar provision.
       The House recedes.
     Uniform policy regarding retention of members who are 
         permanently nonworldwide assignable
       The Senate amendment contained a provision (sec. 534) that 
     would require the Secretary of Defense to prescribe 
     regulations and directives establishing uniform policies and 
     procedures regarding the retention of members of the armed 
     forces who are permanently nonworldwide assignable for 
     medical reasons.
       The House bill contained no similar provision.
       The Senate recedes.
     Period for filing a claim for correction of military records 
         not be extended by reason of military service
       The Senate amendment contained a provision (sec. 538) that 
     would clarify that the three-year statute of limitations for 
     the filing of a request for relief before the Boards for 
     Correction of Military Records is not waived by the Soldiers' 
     and Sailors' Civil Relief Act.
       The House bill contained no similar provision.
       The Senate recedes.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS


                         legislative provisions

                     Subtitle A--Pay and Allowances


                     legislative provisions adopted

     Military pay raise for fiscal year 1997 (sec. 601)
       The House bill contained a provision (sec. 601) that would 
     provide a 3.0 percent military pay raise and a 4.6 percent 
     increase in the rate of the basic allowance for quarters.
       The Senate amendment contained a similar provision (sec. 
     601) that would increase the rates of basic pay and the basic 
     allowance for subsistence for members of the uniformed 
     services by 3.0 percent. The provision would increase the 
     rate of the basic allowance for quarters for members of the 
     uniformed services by 4.0 percent.
       The Senate recedes.
     Adjustment of rate of cadet and midshipman pay (sec. 602)
       The Senate amendment contained a provision (sec. 602) that 
     would repeal a provision in title 37, United States Code, 
     that links the rate of cadet and midshipman pay to changes in 
     military pay.
       The House bill contained no similar provision.
       The House recedes.
     Pay of senior noncommissioned officers while hospitalized 
         (sec. 603)
       The Senate amendment contained a provision (sec. 603) that 
     would authorize the senior enlisted member of an armed force 
     to continue to receive the basic pay authorized for that 
     position for no more than 180 days while no longer in that 
     position and hospitalized prior to retirement.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Availability of basic allowance for quarters for certain 
         members without dependents who serve on sea duty (sec. 
         604)
       The House bill contained a provision (sec. 602) that would 
     authorize several changes concerning the payment of basic 
     allowance for quarters and variable housing allowance for 
     service members assigned to sea duty.
       The Senate amendment contained a similar provision (sec. 
     604).
       The Senate recedes with an amendment that would clarify 
     payment of basic allowance for quarters to military couples 
     assigned to sea duty, and payment of variable housing 
     allowance to members above the grade of E-4 assigned to sea 
     duty.
     Uniform applicability of discretion to deny an election not 
         to occupy government quarters (sec. 605)
       The House bill contained a provision (sec. 651) that would 
     clarify the authority for the secretaries of the military 
     departments to deny the election not to occupy inadequate 
     government quarters made by a service member in the grade of 
     E-6.
       The Senate amendment contained a similar provision (sec. 
     605).
       The conference agreement includes this provision.
     Establishment of minimum monthly amount of variable housing 
         allowance for high housing cost areas (sec. 606)
       The House bill contained a provision (sec. 603) that would 
     require the Secretary of Defense to establish a minimum 
     amount of variable housing allowance.
       The Senate amendment contained no similar provision.
       The Senate recedes.
       The conferees direct the Secretary of Defense to perform a 
     comprehensive review of all housing allowances and submit a 
     legislative recommendation that would reform and streamline 
     the housing allowances while dealing with housing costs in a 
     more effective manner. The report and legislative 
     recommendations shall be submitted to the Committee on Armed 
     Services of the Senate and the Committee on National Security 
     of the House of Representatives not later than March 1, 1997.
     Family separation allowance for members separated by military 
         orders from spouses who are members (sec. 607)
       The Senate amendment contained a provision (sec. 606) that 
     would authorize payment of the family separation allowance to 
     the senior of two service members who are married to each 
     other and who would normally reside with each other but are 
     separated by military orders.
       The House bill contained no similar provision.
       The House recedes.
     Waiver of time limitations for claim for pay and allowances 
         (sec. 608)
       The Senate amendment contained a provision (sec. 607) that 
     would provide the Comptroller General authority, upon the 
     request of a service secretary, to waive the time limits in 
     the case of a claim for pay and allowances up to a maximum of 
     $25,000, subject to the availability of appropriations.

[[Page H9290]]

       The House bill contained no similar provision.
       The House recedes.

           Subtitle B--Bonuses and Special and Incentive Pays


                     LEGISLATIVE PROVISIONS ADOPTED

     One-year extension of certain bonuses and special pay 
         authorities for reserve forces (sec. 611)
       The House bill contained a provision (sec. 611) that would 
     extend the authority for the selected reserve reenlistment 
     bonus, the selected reserve enlistment bonus, the selected 
     reserve affiliation bonus, the ready reserve enlistment and 
     reenlistment bonus, and the prior service enlistment bonus 
     until September 30, 1998.
       The Senate amendment contained a similar provision (sec. 
     611).
       The conference agreement includes this provision.
     One-year extension of certain bonuses and special pay 
         authorities for nurse officer candidates, registered 
         nurses, and nurse anesthetists (sec. 612)
       The House bill contained a provision (sec. 612) that would 
     extend the authority to pay certain bonuses and special pay 
     for nurse officer candidates, registered nurses, and nurse 
     anesthetists until September 30, 1998.
       The Senate amendment contained a similar provision (sec. 
     612).
       The conference agreement includes this provision.
     One-year extension of authorities relating to payment of 
         other bonuses and special pays (sec. 613)
       The House bill contained a provision (sec. 613) that would 
     extend the authority to pay the aviation officer retention 
     bonus, reenlistment bonus for active members, enlistment 
     bonus for critical skills, special pay for nuclear qualified 
     officers extending period of active service, nuclear career 
     accession bonus, nuclear career annual incentive bonus, and 
     repayment of education loans for certain health professionals 
     who serve in the selected reserve until September 30, 1998.
       The Senate amendment contained a similar provision (sec. 
     613).
       The conference agreement includes this provision.
     Special pay for certain Public Health Service officers (sec. 
         614)
       The Senate amendment contained two provisions (secs. 615 
     and 616) that would authorize retention special pay for 
     optometrists in regular and reserve components of the 
     Commissioned Corps of the Public Health Service (PHS) and 
     special pay for nonphysician health care providers in the 
     Commissioned Corps of the PHS.
       The House bill contained no similar provisions.
       The House recedes with an amendment that would combine the 
     two provisions.
     Special incentives to recruit and retain dental officers 
         (sec. 615)
       The House bill contained a provision (sec. 614) that would 
     increase the amount of special pay for dental officers, to 
     establish an entitlement to special pay for reserve dental 
     officers consistent with special pay entitlements for 
     physicians, and to establish an accession bonus for dental 
     officers. Additionally, this section would require the 
     Secretary of Defense to report to Congress on the feasibility 
     of increasing dental participation in the Armed Forces Health 
     Professions Scholarship and Financial Assistance Program.
       The Senate amendment contained a similar provision (sec. 
     614) that would increase the special pay, additional special 
     pay, and board certified pay for certain dental officers of 
     the armed forces.
       The Senate recedes.
     Foreign language proficiency pay for Public Health Service 
         and National Oceanic and Atmospheric Administration 
         officers (sec. 616)
       The Senate amendment contained a provision (sec. 617) that 
     would extend foreign language proficiency pay now authorized 
     for members of the armed services to any member of the 
     uniformed services whose duties require such language 
     proficiency.
       The House bill contained no similar provision.
       The House recedes.

            Subtitle C--Travel and Transportation Allowances


                     legislative provisions adopted

     Allowance in connection with shipping motor vehicle at 
         government expense (sec. 621)
       The House bill contained a provision (sec. 622) that would 
     authorize travel allowances for travel to and from a port 
     while transporting motor vehicles at government expense in 
     conjunction with a permanent change of station move between 
     the continental United States and overseas locations.
       The Senate amendment contained a similar provision (sec. 
     621).
       The conference agreement includes this provision.
     Dislocation allowance at a rate equal to two and one half 
         months basic allowance for quarters (sec. 622)
       The House bill contained a provision (sec. 623) that would 
     increase the amount of dislocation allowance paid to service 
     members from two months of basic allowance for quarters to 
     two and one half months basic allowance for quarters.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Allowance for travel performed in connection with leave 
         between consecutive overseas tours (sec. 623)
       The House bill contained a provision (sec. 624) that would 
     authorize the service secretaries to defer the travel and 
     transportation allowances that accrue in conjunction with 
     service members being ordered to consecutive overseas tours 
     when participation in a contingency mission precludes 
     completion of the travel within one year.
       The Senate amendment contained a similar provision (sec. 
     623).
       The conference agreement includes this provision.
     Funding for transportation of household effects of Public 
         Health Service officers (sec. 624)
       The Senate amendment contained a provision (sec. 624) that 
     would extend the authorization to be reimbursed for ``do-it-
     yourself'' moves currently authorized for members of the 
     armed forces to the Public Health Service.
       The House bill contained no similar provision.
       The House recedes.

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


                     LEGISLATIVE PROVISIONS ADOPTED

     Effective date for military retiree cost-of-living adjustment 
         for fiscal year 1998 (sec. 631)
       The Senate amendment contained a provision (sec. 631) that 
     would establish the date of the military retirement cost-of-
     living adjustment in fiscal year 1998 as January 1, 1998.
       The House bill contained no similar provision.
       The House recedes.
     Clarification of initial computation of retiree COLAs after 
         retirement (sec. 632)
       The House bill contained a provision (sec. 635) that would 
     make a technical correction to the method used to calculate 
     the initial cost-of-living adjustment for certain new 
     retirees.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Suspension of payment of retired pay of members who are 
         absent from the United States to avoid prosecution (sec. 
         633)
       The House bill contained a provision (sec. 1044) that would 
     require the Secretary of Defense to develop uniform 
     procedures under which a member or former member of the 
     uniformed services would forfeit retired pay if they 
     willingly remain outside the United States to avoid criminal 
     or civil prosecution or civil liability.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Nonsubstantive restatement of Survivor Benefit Plan statute 
         (sec. 634)
       The House bill contained a provision (sec. 639) that would 
     restate the Military Survivor Benefit Plan statute 
     (subchapter II of chapter 73 of title 10, United States Code) 
     in its entirety to include amendments to the statute through 
     the National Defense Authorization Act for Fiscal Year 1996.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Increases in Survivor Benefit Plan contributions to be 
         effective concurrently with payment of retired pay cost-
         of-living increases (sec. 635)
       The Senate amendment contained a provision (sec. 633) that 
     would require that annual cost-of-living increases to 
     Survivor Benefit Plan premiums be effective on the date on 
     which the retired pay cost-of-living increase is effective.
       The House bill contained no similar provision.
       The House recedes.
     Amendments to the Uniformed Services Former Spouses' 
         Protection Act (sec. 636)
       The House bill contained a provision (sec. 637) that would 
     amend the Uniformed Services Former Spouses' Protection Act 
     (Public Law 97-252) to simplify the processing of court 
     orders related to retirement pay. The section would also 
     clarify that the Secretary of Defense could not accept a 
     court order from a state that modifies a previous court order 
     from another state unless the court issuing the modifying 
     court order has jurisdiction over both the military member 
     and the spouse or former spouse.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Prevention of circumvention of court order by waiver of 
         retired pay to enhance civil service retirement annuity 
         (sec. 637)
       The Senate amendment contained a provision (sec. 636) that 
     would provide that a former spouse of a military retiree, 
     whose military retired pay is part of a divorce settlement, 
     would continue to receive the amount of money directed by 
     court order if the military retiree becomes a federal 
     employee and waives military retired pay in favor of having 
     military service count towards civil service retirement 
     benefits.
       The House bill contained no similar provision.
       The House recedes with an amendment that would make the 
     provision prospective, taking effect after January 1, 1997 
     and prohibit back pay or lump sum restitution.
     Administration of benefits for so-called minimum income 
         widows (sec. 638)
       The House bill contained a provision (sec. 638) that would 
     transfer the responsibility

[[Page H9291]]

     for making payments under the minimum income widows program 
     to the Department of Defense with payments from pension 
     programs for widows of veterans paid by the Department of 
     Veterans' Affairs.
       The Senate amendment contained a similar provision (sec. 
     635) that would adjust the maximum level of annual income at 
     which eligibility for minimum income widows payments end.
       The Senate recedes with an amendment that would combine the 
     two provisions.

                       Subtitle E--Other Matters


                     legislative provisions adopted

     Discretionary allotment of pay including retired or retainer 
         pay (sec. 651)
       The Senate amendment contained a provision (sec. 632) that 
     would require the Secretary of Defense to establish 
     procedures to allow military retirees a maximum of six 
     retiree pay allotments.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Reimbursement for adoption expenses incurred in adoptions 
         through private placements (sec. 652)
       The Senate amendment contained a provision (sec. 641) that 
     would extend the authority to reimburse adoption expenses to 
     those service members who adopt through private agencies if 
     the adoption is supervised by the court.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Waiver of recoupment of amounts withheld for tax purposes 
         from certain separation pay (sec. 653)
       The Senate amendment contained a provision (sec. 642) that 
     would for involuntarily separated members, waive the 
     recoupment of the amount of separation pay withheld for tax 
     purposes if the separation pay is later recouped.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Technical correction clarifying limitation on furnishing 
         clothing or allowances to enlisted National Guard 
         technicians (sec. 654)
       The House bill contained a provision (sec. 652) that would 
     clarify the circumstances under which uniforms could be 
     furnished to enlisted National Guard technicians.
       The Senate amendment contained a similar provision (sec. 
     1103).
       The conference agreement includes this provision.
     Technical correction to prior authority for payment of back 
         pay to certain persons (sec. 655)
       The House bill contained a provision (sec. 636) that would 
     make a technical correction to section 634 of the National 
     Defense Authorization Act for Fiscal Year 1996 (Public Law 
     104-106) to clarify the level of compensation to be paid to 
     certain veterans.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Compensation for persons awarded prisoner of war medal who 
         did not previously receive compensation as a prisoner of 
         war (sec. 656)
       The House bill contained a provision (sec. 1036) that would 
     require the secretaries of the military departments to pay 
     subsistence and other allowances authorized to be paid to 
     prisoners of war interned by a government of a nation with 
     which the United States has been at war to former service 
     members who were awarded the Prisoner of War Medal as a 
     result of being interned by a nation with which the United 
     States was not at war.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Payments to certain persons captured and interned by North 
         Vietnam (sec. 657)
       The Senate amendment contained a provision (sec. 643) that 
     would authorize a payment of $40,000 to a person, or the 
     survivor of a person, who demonstrates that he or she served 
     as a Vietnamese operative pursuant to OPLAN 34A, was 
     captured, and remained in captivity after 1973, and has not 
     received any payment for the period spent in captivity.
       The House bill contained no similar provision.
       The House recedes with an amendment that would: increase 
     the payment to $50,000 for those persons who can demonstrate 
     that they spent more than 20 years in prison; include persons 
     who served in Laos pursuant to OPLAN 35; limit disbursement 
     only to locations in the United States or its territories, or 
     in a manner prescribed by the person eligible for the 
     payment; and make the authorization subject to appropriation.


                   legislative provisions not adopted

     Temporary lodging expenses of member in connection with first 
         permanent change of station
       The House bill contained a provision (sec. 621) that would 
     authorize service members traveling to their first permanent 
     duty station to receive a temporary lodging expense 
     allowance.
       The Senate amendment contained no similar provision.
       The House recedes.
     Annuities for certain military surviving spouses
       The Senate amendment contained a provision (sec. 634) that 
     would require the Secretary of Defense to pay an annuity to 
     the surviving spouses of retired service members who died 
     before March 21, 1974.
       The House bill contained no similar provision.
       The Senate recedes.

                   Title VII--Health Care Provisions


                       items of special interest

     Programs for hospital and health facilities medical 
         management in the Department of Defense
       The conferees are concerned that the medical facilities of 
     the Department of the Army, the Department of the Air Force 
     and the Department of the Navy may not be implementing cost-
     containment programs similar to those in the private sector. 
     The conferees note that private sector medical facilities 
     have developed and are using such programs for equipment 
     maintenance management, equipment and utilization tracking, 
     quality outcomes benchmarks and protocols and clinical 
     pathways for both managing care and for reporting results.
       The conferees urge the Secretary of Defense to establish a 
     program comparable to those in use in the private sector to 
     measure the performance of military facilities. The conferees 
     suggest that such a program be initially established in 
     several large military medical facilities (500 bed 
     facilities) and later expanded to all medical facilities as 
     the program matures. The conferees direct the Secretary to 
     submit a report on the progress of this effort not later 
     April 15, 1997 to the Committee on Armed Services of the 
     Senate and the Committee on National Security of the House of 
     Representatives.


                         legislative provisions

                    Subtitle A--Health Care Services


                     legislative provisions adopted

     Preventive health care screening for colon and prostate 
         cancer (sec. 701)
       The House bill contained a provision (sec. 702) that would 
     establish that male members and former members of the 
     uniformed services are entitled to preventative health care 
     screening for colon and prostate cancer.
       The Senate amendment contained a similar provision (sec. 
     710) which also would add colon cancer screening to the 
     preventative health care services available to female mambers 
     and former members.
       The Senate recedes with a clarifying amendment.
     Implementation of requirement for Selected Reserve dental 
         insurance plan (sec. 702)
       The Senate amendment contained a provision (sec. 701) that 
     would extend the implementation date of the selected reserve 
     dental insurance program from October 1, 1996 into fiscal 
     year 1997 and stipulate a full and open competition for the 
     award of the contract or contracts.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
       Though this section would extend the implementation date 
     for the reserve dental insurance program, the conferees are 
     disappointed that a Request For Proposal has not yet been 
     issued. The conferees urge the Department to proceed 
     expeditiously with procurement of a contract for reserve 
     dental care.
     Dental insurance plan for military retirees and unremarried 
         surviving spouses and certain other dependents of 
         military retirees (sec. 703)
       The Senate amendment contained a provision (sec. 702) that 
     would establish a dental insurance plan for military retirees 
     and certain dependents. The program, which would be available 
     to eligible beneficiaries not later than October 1, 1997, 
     would be based on voluntary enrollment and would require 
     premiums to be paid by the participants.
       The House bill contained no similar provision.
       The House recedes with an amendment that would prohibit 
     discretionary premium sharing by the Secretary of Defense.
     Plan for health care coverage for children with medical 
         conditions caused by parental exposure to chemical 
         munitions while serving as members of the armed forces 
         (sec. 704)
        The Senate amendment contained a provision (sec. 709) that 
     would authorize 10.0 million dollars to be available for 
     research on the possible causal relationship between ``Gulf 
     War Syndrome'' and exposure to chemical agents and hazardous 
     materials during military service in the Persian Gulf. The 
     provision would also establish medical and dental benefits 
     for children of Gulf War veterans who are born with 
     congenital defects and illnesses. The provision would waive 
     the CHAMPUS fees, deductibles, and copayments for children 
     entitled to care under this section.
       The House bill contained no similar provision.
       The House recedes with an amendment that would eliminate 
     the entitlement to health care for the children of those who 
     are no longer eligible for health care within the Military 
     Health Care System. Additionally, the amendment would require 
     the Secretary of Defense, in coordination with the Secretary 
     of Veterans Affairs, to develop a plan for ensuring that 
     children who have a congenital defect or catastrophic 
     illness, proven

[[Page H9292]]

     to a reasonable degree of scientific certainty to have 
     resulted from exposure of the service member to a chemical 
     warfare agent or other hazardous material during military 
     service, are provided medical care.
       Since the end of the Persian Gulf War, over 17,000 veterans 
     have reported suffering from a wide range of symptoms 
     collectively referred to as ``Gulf War Syndrome.'' Some of 
     these veterans believe their illnesses may be the result of 
     exposure to chemical warfare agents.
       The conferees are concerned that exposure to chemical 
     warfare agents may be a causal factor of the Gulf War 
     Syndrome and congenital birth defects or catastrophic illness 
     among children born to service members who served in the Gulf 
     War, particularly in light of the Department of Defense's 
     recent disclosure that some Persian Gulf War veterans may 
     have been exposed to chemical agents during the war.
       As a result, the conferees believe the Department of 
     Defense should expeditiously arrange for independent research 
     to determine whether exposure to low levels of chemical 
     warfare agents could have caused the symptoms associated with 
     Gulf War Syndrome. Furthermore, the conferees believe the 
     Department should study the possible health implications of 
     administering a ``cocktail mix'' of inoculations and using 
     investigational new drugs, as was done during the Persian 
     Gulf deployment. The Department of Defense has a 
     responsibility to current military members, former members, 
     and their children, to invesigate fully any possible links 
     between exposure to chemical agents or the use of combined 
     inoculations and illnesses suffered by these members or their 
     offspring.

                      Subtitle B--TRICARE Program


                     legislative provisions adopted

     CHAMPUS payment limits for TRICARE Prime enrollees (sec. 711)
       The House bill contained a provision (sec. 712) that would 
     permit health care providers who are not participating in the 
     TRICARE network to be paid higher amounts than now permitted 
     in certain limited circumstances in which they provide care 
     to TRICARE Prime enrollees.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Improved information exchange between military treatment 
         facilities and TRICARE Program contractors (sec. 712)
       The House bill contained a provision (sec. 713) that would 
     require the Secretary of Defense to field a uniform version 
     of the Composite Health Care System (CHCS) throughout the 
     military health services system.
       The Senate amendment contained a similar provision (sec. 
     703).
       The Senate recedes with an amendment that would include a 
     definition of the Department of Defense managed-care program.
     Plans for Medicare subvention demonstration programs (sec. 
         713)
       The Senate amendment contained a provision (sec. 708) that 
     would require the Secretary of Defense and the Secretary of 
     Health and Human Services to devise and submit to the 
     Congress a plan for the implementation of a demonstration 
     program under which the Department of Defense would be 
     reimbursed by Medicare for medical care provided to Medicare-
     eligible beneficiaries in military medical facilities. The 
     provision would also require the Secretary of Defense to 
     conduct a study of the feasibility and advisability of 
     providing fee-for-service reimbursement and would also 
     authorize $75.0 million for a Medicare subvention 
     demonstration program, should one be authorized in the 104th 
     Congress.
       The House bill contained no similar provision.
       The House recedes with an amendment that would eliminate 
     the authorization for funding.

          Subtitle C--Uniformed Services Treatment Facilities


                     legislative provisions adopted

     Definitions (sec. 721)
       The House bill contained a prevision (sec. 721) that would 
     define various terms pertaining to the Uniformed Services 
     Treatment Facilities.
       The Senate amendment contained an identical provision (sec. 
     721).
       The conference agreement includes this provision.
     Inclusion of designated providers in uniformed services 
         health care delivery system (sec. 722)
       The House bill contained a provision (sec. 722) that would 
     provide for the inclusion of the Uniformed Services Treatment 
     Facilities (USTFs) in the health care delivery system of the 
     uniformed services and would establish the terms under which 
     the USTFs would become designated providers of managed health 
     care services to military beneficiaries.
       The Senate amendment contained a similar provision (sec. 
     722).
       The conference agreement includes this provision.
     Provision of uniform benefit by designated providers (sec. 
         723)
       The House bill contained a provision (sec. 723) that would 
     require the designated providers to implement the TRICARE 
     uniform benefit, including the uniform cost-sharing 
     requirements, upon implementation of TRICARE in the 
     designated provider's region or October 1, 1997, whichever 
     date is later.
       The Senate amendment contained a similar provision (sec. 
     723) which would require the implementation of the uniform 
     benefit either on the date of implementation of the TRICARE 
     program in the designated provider's region or October 1, 
     1996, whichever is later.
       The Senate recedes.
     Enrollment of covered beneficiaries (sec. 724)
       The House bill contained a provision (sec. 724) that would 
     establish several controls on the number of beneficiaries 
     enrolled in managed care programs of designated providers. 
     The provision also would prohibit the disenrollment of 
     current participants, except in certain cases, and would 
     establish additional enrollment criteria for designated 
     providers.
       The Senate amendment contained an identical provision (sec. 
     724).
       The conference agreement includes this provision.
     Application of CHAMPUS payment rules (sec. 725)
       The House bill contained a provision (sec. 725) that would 
     clarify that the Civilian Health and Medical Care Program of 
     the Uniformed Services (CHAMPUS) rules may apply in 
     situations when the health care provided to military 
     beneficiaries is not provided outside the Uniformed Services 
     Treatment Facility's catchment area.
       The Senate amendment contained an identical provision (sec. 
     725).
       The conference agreement includes this provision.
     Payments for services (sec. 726)
       The House bill contained a provision (sec. 726) that would 
     require the payments made to designated providers to be full-
     risk capitation based on the utilization experience of 
     enrollees and competitive market rates for equivalent health 
     care services. It also would limit payments to a designated 
     provider to no more than the government would pay if 
     enrollees received their care through the TRICARE program or 
     through Medicare.
       The Senate amendment contained an identical provision (sec. 
     726).
       The conference agreement includes this provision.
     Repeal of superseded authorities (sec. 727)
       The House bill contained a provision (sec. 727) that would 
     repeal previous Uniformed Services Treatment Facility's 
     (USTFs) legislative provisions, effective October 1, 1997, 
     the date on which the USTFs would become ``designated 
     providers'' under the TRICARE program.
       The Senate amendment contained a similar provision (sec. 
     727).
       The Senate recedes with a clarifying amendment.

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


                     legislative provisions adopted

     Authority to waive CHAMPUS exclusion regarding nonmedically 
         necessary treatment in connection with certain clinical 
         trials (sec. 731)
       The House bill contained a provision (sec. 731) that would 
     permit the Secretary of Defense, pursuant to an agreement 
     with the Secretary of Health and Human Services, to waive the 
     exclusion of nonmedically necessary treatment with respect to 
     clinical trials sponsored or approved by the National 
     Institutes of Health.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Exception to maximum allowable payments to individual health-
         care providers under CHAMPUS (sec. 732)
       The House bill contained a provision (sec. 732) that would 
     provide the Secretary of Defense the authority to authorize 
     the commander of a military treatment facility, a TRICARE 
     lead agent, or a civilian, at-risk health care contractor to 
     modify the CHAMPUS payment limitations to ensure the 
     availability of care for military beneficiaries.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Codification of annual authority to credit CHAMPUS refunds to 
         current year appropriation (sec. 733)
       The House bill contained a provision (sec. 734) that would 
     make permanent the authority that allows the Civilian Health 
     and Medical Program of the Uniformed Services (CHAMPUS) to 
     credit refunds and similar collections to the current-year 
     appropriations and thus be available to pay current-year 
     obligations.
       The Senate amendment contained a similar provision (sec. 
     705).
       The conference agreement includes this provision.
     Exceptions to requirements regarding obtaining 
         nonavailability-of-health-care statements (sec. 734)
       The House bill contained a provision (sec. 735) that would 
     prohibit the requirement for non-availability statements for 
     outpatient services for military beneficiaries who chose the 
     TRICARE Standard (fee-for-service) option.
       The Senate amendment contained no similar provision.
       The Senate recedes.

[[Page H9293]]

     Enhancement of third-party collection and secondary payer 
         authorities under CHAMPUS (sec. 735)
       The House bill contained a provision (sec. 736) that would 
     refine the Third Party Collection Program under which 
     military medical facilities collect from third party payers 
     for health care services provided to beneficiaries who have 
     additional coverage by a third-party plan or the CHAMPUS 
     Double Coverage Program.
       The Senate amendment contained a similar provision (sec. 
     704).
       The conference agreement includes this provision.

                       Subtitle E--Other Matters


                     legislative provisions adopted

     Alternatives to active duty service obligation under Armed 
         Forces Health Professions Scholarship and Financial 
         Assistance Program and Uniformed Services University of 
         the Health Sciences (sec. 741)
       The House bill contained a provision (sec. 741) that would 
     establish four alternative obligations for members of the 
     Health Professions Scholarship and Financial Assistance 
     Program who do not, or cannot, complete their active-duty 
     service obligations.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would establish 
     that the alternatives be: (1) service in another armed force 
     for a period of time not less than the remaining obligation; 
     (2) service in a reserve component assignment of a duration 
     twice as long as the remaining active-duty obligation; or (3) 
     repayment of a percentage of the total cost incurred by the 
     Department under the program equal to the percentage of the 
     member's total active-duty service obligation being relieved, 
     plus interest. The provision would also establish that 
     members relieved of an active duty service obligation due to 
     a physical disability may fulfill the obligation as a health 
     professional civil service employee in a facility of the 
     uniformed services.
     External peer review for Defense Health Program extramural 
         medical research involving human subjects (sec. 742)
       The conferees recommend a provision that would establish 
     that research projects that involve human subjects, that are 
     conducted solely by a non-Federal entity, and are funded 
     through the Defense Health Program (DHP), would be required 
     to undergo a peer review process, established by the 
     Secretary of Defense, to ensure the precept of basic 
     scientific merit and the protection of subjects before DHP 
     funds be obligated or expended.
     Comptroller General review of health care activities of the 
         Department of Defense relating to Gulf War illnesses 
         (sec. 744)
       The Senate amendment contained a provision (sec. 706) that 
     would require the Comptroller General to conduct several 
     reviews related to Persian Gulf Illnesses.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Report regarding specialized treatment facility program (sec. 
         745)
       The House bill contained a provision (sec. 745) that would 
     require the Secretary of Defense to provide Congress with a 
     report on the impact of reducing the catchment areas for 
     specialized treatment facilities from 200 miles to 100 miles.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Study of means of ensuring uniformity in provision of medical 
         and dental care for members of reserve components (sec. 
         746)
       The House bill contained a provision (sec. 701) that would 
     define the entitlement to medical and dental care for reserve 
     component members in a specific military duty status.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to conduct a review of the provision of 
     medical and dental care to members of the reserve components 
     on active duty, including active duty for training and annual 
     duty training, members on inactive duty training, and members 
     on full-time National Guard duty. The report should include 
     recommendations for a comprehensive plan for ensuring that 
     the medical treatment, active-duty entitlements, and 
     consideration for disability evaluation available to reserve 
     component members is sufficient and in parity with that 
     provided to members of the active component.
     Sense of Congress regarding tax treatment of Armed Forces 
         Health Professions Scholarship and Financial Assistance 
         Program (sec. 747)
       The House bill contained a provision (sec. 744) that would 
     express the sense of Congress that the Secretary of Defense 
     should continue to work with the Secretary of the Treasury to 
     seek relief from the taxable status of tuition and related 
     expenses as taxable income subject to withholdings.
       The Senate amendment contained no similar provision.
       The Senate recedes.
       The conferees, recognizing the extraordinary benefit to the 
     Armed Services, believe that tuition and related expenses 
     provided under the Armed Forces Health Professions 
     Scholarship Program or the Financial Assistance Program 
     should not be considered taxable income. The current 
     situation is the result of an Internal Revenue Service ruling 
     which reversed longstanding practice that payments under 
     these programs were not considered taxable income. The 
     conferees believe that the President can and should direct 
     the Internal Revenue Service to reverse the current ruling 
     and return to the previous policy. Further, the conferees 
     believe that any action to collect taxes from those personnel 
     who participated in the Armed Forces Health Professions 
     Scholarship Program or the Financial Assistance Program while 
     the previous policy was in effect should be terminated.


                   legislative provisions not adopted

     Definition of TRICARE Program
       The House bill contained a provision (sec. 711) that would 
     define the managed-care program of the Department of Defense 
     known as TRICARE.
       The Senate amendment contained no similar provision.
       The House recedes.
     Authority to waive or reduce CHAMPUS deductible amounts for 
         reservist called to active duty in support of contingency 
         operations
       The House bill contained a provision (sec. 732) that would 
     provide the Secretary of Defense the authority to waive or 
     reduce CHAMPUS deductible amounts in the case of the 
     dependents of a member of a reserve component of the 
     uniformed services who is on active duty under a call or 
     order to active duty of less than one year.
       The Senate amendment contained no similar provision.
       The House recedes.
     Restoration of previous policy regarding restrictions on use 
         of Department of Defense Medical Facilities
       The Senate amendment contained a provision (sec. 707) that 
     would repeal the restriction on the use of Department of 
     Defense funds to perform abortions in overseas medical 
     facilities.
       The House bill contained no similar provision.
       The Senate recedes.

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


                         LEGISLATIVE PROVISIONS

                   Subtitle A--Acquisition Management


                     LEGISLATIVE PROVISIONS ADOPTED

     Procurement technical assistance programs (sec. 801)
       The Senate amendment contained a provision (sec. 801) that 
     would provide an increase of $12.0 million to continue the 
     procurement technical assistance center program in fiscal 
     year 1997.
       The House bill contained an increase of $8.0 million for 
     the continuation of this program with no legislative 
     language.
       The House recedes. The conferees believe that the 
     Department of Defense should continue to administer this 
     program and urge the Secretary of Defense to continue to 
     utilize the infrastructure of the procurement technical 
     assistance centers to support the implementation of 
     acquisition streamlining initiatives in the Federal 
     Acquisition Streamlining Act of 1994 such as electric 
     commerce.
     Extension of pilot Mentor-Protege program (sec. 802)
       The Senate amendment contained a provision (sec. 802) that 
     would extend the period in which mentor firms under the 
     Mentor-Protege program may incur costs for furnishing 
     developmental assistance under the program until September 
     30, 1999. The provision would also extend the period during 
     which new agreements can be entered into until September 30, 
     1998.
       The House bill contained a provision (sec. 808) that would 
     extend the pilot Mentor-Protege program through fiscal year 
     1997.
       The House recedes.
     Authority to waive certain requirements for defense 
         acquisition pilot programs (sec. 803)
       The House bill contained a provision (sec. 801) that would 
     expand existing authorities provided to the Secretary of 
     Defense to waive or modify certain acquisition laws in 
     executing programs designated as defense acquisition pilot 
     programs.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Modification of authority to carry out certain prototype 
         projects (sec. 804)
       The House bill contained a provision (sec. 804) that would 
     reauthorize the authority provided by section 845 of the 
     National Defense Authorization Act for Fiscal Year 1994 
     (Public Law 103-160) to allow additional flexibility in the 
     acquisition of prototype technologies and systems. The 
     provision would also expand this authority to the military 
     services.
       The Senate amendment contained a similar provision (sec. 
     803).
       The Senate recedes.
     Increase in threshold amounts for major systems (sec. 805)
       The House bill contained a provision (sec. 804) that would 
     update the existing statutory dollar amount threshold for the 
     definition of ``major systems'' to fiscal year 1990 constant 
     dollars from fiscal year 1980 dollars. It would

[[Page H9294]]

     also allow the Secretary of Defense to further adjust this 
     threshold for inflation after notification to the 
     congressional defense committees. These changes would conform 
     the definition for ``major systems'' to that used for ``major 
     defense acquisition program'' in title 10, United States 
     Code.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment clarifying that any 
     subsequent adjustment in the threshold should be rounded to 
     the nearest $5.0 million.
     Revision in information required to be included in Selected 
         Acquisition Reports (sec. 806)
       The House bill contained a provision (sec. 805) that would 
     adjust and improve the terminology and references used in the 
     acquisition reporting process of major defense acquisition 
     programs. The provision would add ``procurement unit cost'' 
     as an additional reporting element of the Selected 
     Acquisition Report to provide a more meaningful measure of 
     recurring unit cost. The provision would also eliminate the 
     reporting element for completion status for a program 
     because, as currently defined, it provides statistical 
     measures of only marginal utility for program oversight.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Increase in simplified acquisition threshold for humanitarian 
         or peacekeeping operations (sec. 807)
       The House bill contained a provision (sec. 806) that would 
     expand the current authority that doubles the simplified 
     acquisition threshold, for purchases made outside of the 
     United States in support of a contingency operation, to cover 
     humanitarian and peacekeeping operations.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would expand the 
     authority to all Federal agencies.
     Expansion of audit reciprocity among Federal agencies to 
         include post-award audits (sec. 808)
       The House bill contained a provision (sec. 807) that would 
     expand current statutory authorities in two ways in order to 
     reduce administrative burdens and duplications of efforts by 
     different governmental entities. First, it would extend audit 
     reciprocity considerations to post-award audit to expedite 
     the contract closeout process and the issuance of final 
     contract payments. Second, it would require the Office of 
     Management and Budget to issue guidance to ensure that State 
     and local entities accept cognizant Federal agency audits in 
     order to minimize duplication of effort and reduce cost for 
     contractors engaged in contracting at various levels of 
     government.
       The Senate amendment contained no similar provision.
       The Senate recedes. The conferees expect that guidance 
     implementing this provision will provide that a contracting 
     officer consult, as necessary, with the available resident 
     audit authority in making a determination that the objectives 
     of indirect cost audit can be met by accepting the results of 
     the prior audit.
     Compensation of certain contractor personnel prohibited (sec. 
         809)
       The Senate amendment contained a provision (sec. 1076) that 
     would modify the statutory cost principles to limit annual 
     reimbursement of individual compensation to $200,000.
       The House bill contained no similar provision.
       The House recedes with an amendment raising the individual 
     compensation limit to $250,000 and modifying such limitation 
     to apply only in fiscal year 1997. The conferees have also 
     limited the restriction to officers of the firm to be defined 
     in regulation. The conferees intend this term to include 
     individuals in senior management positions with 
     responsibility for the management of a firm or a major 
     segment thereof.
       The conferees also agree to language clarifying the 
     definition of compensation for the purposes of this 
     limitation. In this definition, compensation is defined as 
     wages and elective deferred compensation. Further, the 
     conferees intend for this provision to be applied in a manner 
     that results in the $250,000 compensation limit being the 
     aggregate total limit that any one individual may submit for 
     reimbursement. The conferees acknowledge the difficulty of 
     determining a general policy for the treatment of deferred 
     compensation under a cost reimbursement limitation of this 
     nature.
       The conferees intend this provision to be an interim 
     approach pending the development and consideration of a 
     permanent change to the statutory cost principles. The 
     conferees have included a provision requiring the 
     Administrator of the Office of Federal Procurement Policy, in 
     consultation with the Secretary of the Treasury and the 
     Secretary of Defense, to provide to Congress no later than 
     March 1, 1997, a legislative proposal to address, in an 
     equitable and clear fashion, the limitation of reimbursement 
     of individual compensation under government contracts. The 
     proposal shall include a definition of compensation, 
     including the treatment of deferred compensation, to be 
     covered by such limitation as may be proposed. In developing 
     such legislative proposal, the Administrator shall make every 
     effort to develop an approach that allows contractors to 
     avoid using internal tracking procedures other than those 
     currently used for the purposes of complying with accepted 
     accounting practices and current tax law.
     Exception to prohibition on procurement of foreign goods 
         (sec. 810)
       The House bill contained a provision (sec. 831) that would 
     delay the expiration of the current statutory domestic source 
     restriction for valves and machine tools from October 1, 1996 
     to October 1, 2001.
       The Senate amendment contained a provision (sec. 806) that 
     would amend section 2534 of title 10, United States Code, by 
     providing additional authority for the Secretary of Defense 
     to waive limitations on the procurement of goods other than 
     United States goods. The amendment would authorize the 
     Secretary to waive a limitation in a case where he determines 
     that the application of the limitation would impede the 
     reciprocal procurement of defense items under a memorandum of 
     understanding entered into under section 2531 of title 10, 
     United States Code.
       The House recedes.
       The conferees note that the Defense Federal Acquisition 
     Regulation Supplement interprets the domestic source 
     limitation in section 2534(a)(5) of title 10, United States 
     Code, for ball bearings and roller bearings ``in accordance 
     with subpart 225.71 of part 225 of the Defense Federal 
     Acquisition Regulation Supplement, as in effect on October 
     23, 1992'' as allowing only those waivers that were included 
     in the cited DFARS subpart, rather than the general waivers 
     in section 2534(d) of title 10, United States Code, to be 
     applied to the domestic source restrictions for ball and 
     roller bearings. The conferees do not intend the new 
     provision to have any effect on the Department's 
     interpretation.

                       Subtitle B--Other Matters


                     legislative provisions adopted

     Prohibition on release of contractor proposals under Freedom 
         of Information Act (sec. 821)
       The House bill contained a provision (sec. 822) that would 
     exempt contractor proposals provided to the Federal 
     government from release under the Freedom of Information Act 
     (Public Law 89-554). This provision is intended to allow 
     Federal agencies to dispense with the lengthy line-by-line 
     reviews that are currently required to arrive at the non-
     disclosure determination for this material. This provision is 
     not intended to affect information available to tbe placed 
     under a General Accounting Office protective order pursuant 
     to section 3553(f) of title 31, United States Code.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment clarifying the status 
     of those portions of contractor proposals included in a 
     government contract.
     Amendments relating to reports on procurement regulatory 
         activity (sec. 822)
       The House bill contained a provision (sec. 824) that would 
     repeal the requirement for the Administrator for Federal 
     Procurement Policy to publish a semiannual regulatory 
     activity report on procurement regulations.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would make the 
     semiannual reporting requirement an annual requirement and 
     modify the required content of the report.
     Amendment of multi-year limitation on contracts for 
         inspection, maintenance, and repair (sec. 823)
       The House bill contained a provision (sec. 825) that would 
     repeal the current statutory limitation on multi-year 
     contracts for inspection, maintenance, and repair functions 
     thereby enabling the multi-year policy provisions of the 
     Federal Acquisition Streamlining Act of 1994 (Public Law 103-
     355) to govern such contracts.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment extending the 
     limitation period to not more than five years, vice three 
     years.
     Streamlined notice requirements to contractors and employees 
         regarding termination or substantial reductions in 
         contracts under major defense programs (sec. 824)
       The House bill contained a provision (sec. 826) that would 
     streamline and simplify the notification process resulting 
     from termination or substantial reduction in defense contract 
     funding required by the Defense Conversion, Reinvestment, and 
     Transition Assistance Act of 1992 (Division D of Public Law 
     102-484). This provision would modify the notification 
     process to occur upon actual contract termination or 
     substantial reduction rather than prematurely during the 
     budget process as currently required.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Repeal of notice requirements for substantially or seriously 
         affected parties in downsizing efforts (sec. 825)
       The House bill contained a provision (sec. 827) that would 
     repeal the requirement for the Secretary of Defense to notify 
     Federal, state, county, local and labor officials if the 
     President's annual budget submission, or long-term guidance 
     documents, or public announcements of base or facility 
     closures or realignments, or cancellation or curtailment of a 
     major contract will affect them seriously and substantially.

[[Page H9295]]

       The Senate amendment contained no similar provision.
       The Senate recedes.
     Study of effectiveness of defense mergers (sec. 826)
       The House bill contained a provision (sec. 833) that would 
     require a study conducted by the Secretary of Defense on the 
     effect of defense mergers and acquisitions in the defense 
     sector. The study would address the effectiveness of defense 
     mergers and acquisitions in eliminating excess capacity 
     within the defense industry, the degree of change in the 
     dependence of defense contractors on defense-related Federal 
     contracts after mergers, and the effect on defense industry 
     employment resulting from defense mergers and acquisitions.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment adding the effect on 
     competition for defense contracts as a matter to be 
     addressed.
     Annual report relating to Buy American Act (sec. 827)
       The House bill contained a provision (sec. 1053) that would 
     require the Secretary of Defense to submit an annual report 
     on the amount of purchases by the Department of Defense from 
     foreign entities in that fiscal year. The report would also 
     include the dollar value of items for which the Buy American 
     Act of 1933 (41 U.S.C. 10) was waived.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment extending the date the 
     report is required to be submitted to 120 days after the end 
     of the fiscal year.
     Foreign environmental technology (sec. 828)
       The Senate amendment contained a provision (sec. 3165) that 
     would allow the Secretary of Energy to waive the prohibition 
     under section 2536(b) of title 10, United States Code, on 
     award of certain Department of Defense and Department of 
     Energy contracts to companies owned by an entity controlled 
     by a foreign government. The provision would authorize the 
     waiver if the Secretary of Energy determines that it is 
     essential to the national security or advances the 
     environmental restoration objectives of the Department, 
     without harm to the national security interests of the United 
     States. Moreover, the waiver only applies if the entity is 
     controlled by a foreign government with which the Secretary 
     is authorized to exchange restricted data under section 
     144(c) of the Atomic Energy Act of 1954 (42 U.S.C. 2164(c)).
       The House bill contained no similar provision.
       The House recedes with an amendment that would extend the 
     waiver authority to the Secretary of Defense.
       The conferees direct the Secretary of Defense to provide a 
     report to the congressional defense committees on whether the 
     standards identified in this new waiver authority should be 
     modified or expanded.
     Assessment of national defense technology and industrial base 
         and dependency of base on supplies available only from 
         foreign countries (sec. 829)
       The Senate amendment contained a provision (sec. 804) that 
     would substantially amend the requirements in chapter 148 of 
     title 10, United States Code, for analysis, assessment and 
     planning concerning the national technology and industrial 
     base. The amendments would clarify that the Secretary of 
     Defense has responsibility for preparing periodic and 
     selected assessments of the capability of the national 
     technology and industrial base to attain the national 
     security objectives outlined in section 2501(a) of title 10, 
     United States Code. The provision would also establish a 
     requirement that the Secretary prepare and submit to Congress 
     an annual report describing the assessment and analyses used 
     to identify and address concerns about national technology 
     and industrial base capabilities as well as each program in 
     the annual budget request designed to sustain such 
     capabilities.
       The House bill contained a provision (sec. 829) that would 
     direct the Department of Defense to conduct an assessment of 
     the degree of dependency on foreign sources for key 
     components of defense systems.
       The House recedes with an amendment that would require 
     foreign dependency risk assessments be included as part of 
     the periodic selected industrial base assessments conducted 
     by the Secretary of Defense. In assessing whether a case of 
     foreign dependency constitutes an unacceptable risk, the 
     Secretary should take into consideration the overall degree 
     of dependence by the national technology and industrial base 
     on the item or supply in question, the production or 
     development risks that could result from the disruption of 
     access to such item or supply, and the programs and 
     initiatives in place to reduce dependence on such item or 
     supply.
     Expansion of report on implementation of automated 
         information systems to include additional matters 
         regarding information resources management (sec. 830)
       The Senate amendment contained a provision (sec. 809) that 
     would require the Secretary of Defense to report to Congress 
     on the establishment of the integrated management framework 
     for the implementation of the Information Technology 
     Management Reform Act of 1996 (division E of Public Law 104-
     106) and to provide the Department's overall strategic 
     information resources management plan.
       The House bill contained no similar provision.
       The House recedes with an amendment that would make 
     technical and clarifying changes and that would break out the 
     section of the provision concerning the ``year 2000 issue'' 
     into a separate provision discussed elsewhere in this report.
     Year 2000 software conversion (sec. 831)
       The Senate amendment contained a provision (sec. 809(b)) 
     that addressed the potential problem of converting date 
     fields in software code an embedded systems in the year 2000 
     and directed the Department of Defense (DOD) to assess the 
     risk to DOD information systems, and report to Congress on 
     the resources necessary to complete conversion by the year 
     2000. The Senate amendment also directed the Secretary of 
     Defense to ensure that after September 30, 1996 all 
     information technology purchased by the Department will 
     operate in the year 2000 without technical modifications.
       The House had no similar provision.
       The House recedes with a clarifying amendment. The 
     conferees agree it is critical for the Department to address 
     immediately the matter of ``year 2000 compliance'', and to 
     ensure to the greatest extent practicable that prospective 
     acquisitions do not include products that are non-compliant. 
     While DOD contracting personnel are authorized to consider 
     and accept offers for non-compliant products this authority 
     should be conditioned on the offerors providing and 
     committing to a timetable whereby products sold to the 
     government after September 30, 1996 will be ``year 2000 
     compliant'', or will be modified to achieve ``year 2000 
     compliance'', or will be modified to achieve ``year 2000 
     compliance'' with minimal cost to the government.
     Procurement from firms in industrial base for production of 
         small arms (sec. 382)
       The Senate amendment contained a provision (sec. 805) that 
     would authorize the Secretary of Defense to require that any 
     procurement of property or services associated with repair 
     parts for small arms, or modifications of parts to improve 
     small arms used by the armed forces, be made only from a firm 
     in the small arms industrial base. The small arms industrial 
     base would include those firms described in the plan entitled 
     ``Preservation of Critical Elements of the Small Arms 
     Industrial Base,'' dated January 8, 1994, that was prepared 
     by the Army Science Board.
       The House bill contained no similar provision.
       The House recedes with an amendment.
       The conferees support the findings in Army Science Board 
     study referred to in the Senate report (S. Rept. 104-267) and 
     include a legislative provision (sec. 832) that authorizes 
     the Secretary of Defense to limit procurement of small arms 
     repair parts and modification of parts to those firms 
     identified in the study which comprise the small arms 
     production industrial base.
     Cable television franchise agreements (sec. 833)
       The House bill contained a provision (sec. 833) that would 
     express the sense of Congress that the United States Court of 
     Federal Claims should transmit a report to Congress as 
     specified in section 823 of the National Defense 
     Authorization Act for Fiscal Year 1996 (Public Law 104-106) 
     by the date specified in that section.
       The Senate amendment contained a provision (sec. 807) that 
     would require that cable television franchise agreements with 
     the Department of Defense be considered as a contract for 
     telecommunications services for purposes of part 49 of the 
     Federal Acquisition Regulation (FAR) if the court sustained 
     that position in its report to Congress.
       The House recedes with an amendment. Section 823 of the 
     National Defense Authorization for Fiscal Year 1996 (Public 
     Law 104-106) required the United States Court of Federal 
     Claims to render and transmit to Congress an advisory opinion 
     on whether the executive branch is empowered to treat cable 
     television franchise agreements as contracts under the FAR 
     without violating title VI of the Cable Act (47 U.S.C. 521 et 
     seq.) and, if so, whether the executive branch is required by 
     law to treat such agreements as contracts. The court 
     transmitted its advisory opinion to Congress on July 15, 
     1996,. The court found that, as a matter of law, cable 
     television franchise agreements are contracts subject to part 
     49 of the FAR. The conferees agree to a provision which 
     reflects the opinion of the court.
       The conferees do not intend that this section should in any 
     way interfere with arrangements between cable television 
     operators on military bases that have closed and the public 
     or private parties that have taken possession of these base 
     properties after closure.


                   legislative provisions not adopted

     Exclusion from certain post-education duty assignments for 
         members of the acquisition corps
       The House bill contained a provision (sec. 802) that would 
     authorize the Secretary of Defense to exclude from the 
     mandatory joint duty requirement military members of the 
     acquisition corps who have graduated from the senior 
     acquisition course at the Industrial College of the Armed 
     Forces (ICAF).
       The Senate amendment contained no similar provision.
       The House recedes.

[[Page H9296]]

     Implementation of information technology management reform
       The House bill contained a provision (sec. 821) that would 
     expand the definition of national security systems items 
     exempt from the application of the centralized management 
     provisions of the Information Technology Management Reform 
     Act of 1996 (Division E of Public Law 104-106) to include all 
     classified systems.
       The Senate amendment contained a provision (sec. 1081) that 
     would limit the definition of national security systems items 
     exempt from the application of the centralized management 
     provisions of the Information Technology Management Reform 
     Act of 1996.
       The House and Senate recede from their respective 
     provisions.
     Repeal of annual report by advocate for competition
       The House bill contained a provision (sec. 823) that would 
     repeal the requirement for agency competition advocates to 
     submit an annual report to agency senior procurement 
     executives.
       The Senate amendment contained no similar provision.
       The House recedes.
     Testing of defense acquisition programs
       The House bill contained a provision (sec. 828) that would 
     modify existing statutes governing live fire testing of major 
     defense systems.
       The Senate amendment contained no similar provision.
       The House recedes.
     Remedies for reprisal against contractor whistleblowers
       The Senate amendment contained a provision (sec. 808) that 
     would modify the remedies in current law available to a 
     contractor employee who is wrongfully terminated because he 
     reported wrongdoing. The amendment would also allow for the 
     payment of back pay and other compensation in the event the 
     employee is not reinstated.
       The House bill contained no similar provision.
       The Senate recedes.

      Title IX--Department of Defense Organization and management


                         legislative provisions

                      Subtitle A--General Matters


                     legislative provisions adopted

     Repeal of reorganization of Office of Secretary of Defense 
         (secs. 901 and 903)
       The House bill contained a provision (sec. 902) that would 
     clarify that the 25 percent, five year reduction in personnel 
     assigned to the Office of the Secretary of Defense required 
     by section 901 of the National Defense Authorization Act for 
     Fiscal Year 1996 (Public Law 104-106) must be implemented on 
     an annual basis.
       The Senate amendment contained a provision (sec. 901) that 
     would repeal sections 901 and 903 of the National Defense 
     Authorization Act for Fiscal Year 1996 which directed the 
     reorganization of the Office of the Secretary of Defense.
       The House recedes with an amendment that would retain 
     section 901 of the National Defense Authorization Act for 
     Fiscal Year 1996 and include the annual reductions required 
     by section 901 of the House bill.
       The conferees note that section 901 required the Secretary 
     of Defense to conduct a review of the organization and 
     functions of the Office of the Secretary of Defense and to 
     submit a report not later than March 1, 1996. The Secretary 
     has failed to comply with this statutory requirement. The 
     conferees direct the Secretary to complete the review and to 
     submit the required report immediately.
       The conferees agreed to strike the repeal of the statutory 
     basis for certain Presidential appointment positions. The 
     conferees expect that the Secretary will include in the 
     review of the organization and functions a zero-based review 
     of the structure of the Office of the Secretary of Defense, 
     and propose legislative changes, as necessary, if there is a 
     recommendation to eliminate any of the current statutorily-
     required positions.
     Additional required reduction in defense acquisition 
         workforce (sec. 902)
       The House bill contained a provision (sec. 901) that would 
     require a reduction in the number of personnel assigned to 
     defense acquisition organizations of 25,000 during fiscal 
     year 1997.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment limiting the number of 
     required reductions to 15,000 in fiscal year 1997 and 
     clarifying that the reductions are required to be made in 
     numbers of acquisition personnel rather than in acquisition 
     positions. The conferees agree that the impact of the 
     reductions required to date in this specific category should 
     be properly and fully assessed prior to the consideration of 
     further cuts of such magnitude.
     Report on military department headquarters staffs (sec. 904)
       The House bill contained a provision (sec. 903) that would 
     require the Secretary of Defense to conduct a comprehensive 
     assessment on the management and functional responsibilities 
     of the offices of the military department secretaries and 
     chiefs of staff.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Matters to be considered in next assessment of current 
         missions, responsibilities, and force structure of the 
         unified combatant commands (sec. 905)
       The Senate amendment contained a provision (sec. 907) that 
     would direct the Chairman of the Joint Chiefs of Staff to 
     consider various matters (including geographic size, 
     population, and threats) as part of the next review by the 
     Chairman of the missions, responsibilities, and force 
     structure of the unified combatant commands.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Transfer of authority to control transportation systems in 
         time of war (sec. 906)
       The House bill contained a provision (sec. 364) that would 
     shift the responsibility for all systems of transportation 
     during time of war from the Secretaries of the Army and the 
     Air Force to the Secretary of Defense.
       The Senate amendment contained a similar provision (sec. 
     904).
       The House recedes.
     Codification of requirements relating to continued operation 
         of the Uniformed Services University of the Health 
         Sciences (sec. 907)
       The House bill contained a provision (sec. 743) that would 
     restate the directive to the Secretary of Defense to budget 
     for ongoing operations at the Uniformed Services University 
     of the Health Sciences (USUHS).
       The Senate amendment contained a provision (sec. 902) that 
     would codify in title 10, United States Code, those portions 
     of the National Defense Authorization Acts for Fiscal Years 
     1995 and 1996 that prohibit the closure of the Uniformed 
     Services University of the Health Sciences (USUHS).
       The House recedes.
     Joint Requirements Oversight Council (sec. 908)
       The House bill contained a provision (sec. 904) that would 
     delay the effective date of the statutory charter for the 
     Joint Requirements Oversight Council (JROC) from January 1, 
     1997 to January 1, 1998.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would amend the 
     JROC charter to specify that the Secretary of Defense is 
     required to provide Congress with analysis and rationale for 
     programmatic recommendations that were accepted by the 
     Secretary. The amendment would retain the January 1, 1997 
     effective date.
     Membership of the Ammunition Storage Board (sec. 909)
       The House bill contained a provision (sec. 906) that would 
     permit qualified federal civilian employees to serve as board 
     members on the Department of Defense ammunition storage 
     board.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Removal of Secretary of the Army from membership on the 
         Foreign Trade Zone Board (sec. 910)
       The House bill contained a provision (sec. 905) that would 
     repeal the requirement for membership of the Secretary of the 
     Army on the Foreign Trade Zone Board.
       The Senate amendment contained no similar provision.
       The Senate recedes.
       The conferees encourage the Department of Defense to advise 
     the Board on infrastructure improvements and environmental 
     evaluations, as appropriate.
     Composition of aircraft accident investigation boards (sec. 
         911)
       The House bill contained a provision (sec. 1033) that would 
     require the Secretaries of the military departments to 
     appoint a minimum of one representative of the service's 
     safety center as a voting member on all aircraft accident 
     investigation boards and to appoint a majority of the 
     membership of accident investigation boards from units 
     outside the chain of command of the unit involved in the 
     mishap.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would eliminate 
     the requirement that a representative of the service's safety 
     center be a member of an investigation board and would 
     authorize the Secretary to select other individuals 
     possessing knowledge or expertise that might prove useful to 
     those conducting the investigation. The amended provision 
     also allows the Secretary to waive the requirement to appoint 
     a member or members from outside the command if the crash 
     site is remote; the need to conduct the investigation is 
     urgent; or the aircraft is very unique and limited in number 
     to the extent that it is not feasible to locate, within the 
     military department, another unit whose personnel have 
     sufficient knowledge.
     Mission of the White House Communications Agency (sec. 912)
       The House bill contained a provision (sec. 1051) that would 
     require the Secretary of Defense to ensure that the 
     activities of the White House Communications Agency of the 
     Department of Defense are limited to the provision of 
     telecommunications support to the President and Vice 
     President and related elements such as the National Security 
     Council.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would: (1) permit 
     the White House Communications Agency to provide services 
     other than telecommunications so long as the Department of 
     Defense is reimbursed for

[[Page H9297]]

     the cost of providing those services, (2) delay the effective 
     date until October 1, 1997, and (3) require a series of 
     reports during fiscal year 1997 on support provided by the 
     White House Communications Agency.

                   Subtitle B--Force Structure Review


                     LEGISLATIVE PROVISIONS ADOPTED

     Force Structure Review (secs. 921-926)
       The Senate amendment contained a number of provisions 
     (secs. 1091-1096) in subtitle G of title 10, referred to as 
     the ``Armed Forces Force Structure Review Act of 1996.'' This 
     Act would require the Secretary of Defense, in consultation 
     with the Chairman of the Joint Chiefs of Staff, to conduct a 
     Quadrennial Defense Review (QDR) as recommended by the 
     Commission on Roles and Missions of the Armed Forces. This 
     review would be a complete re-examination of the defense 
     strategy, force structure, force modernization plans, budget 
     plans, infrastructure, and other elements of the defense 
     program and policies with a view toward determining and 
     expressing the defense strategy of the United States, and 
     establishing a national defense program, as we enter the 21st 
     Century.
       In carrying out this review, the Department would examine 
     the potential near- and long-term threats to U.S. national 
     security including:
       (a) the proliferation of weapons of mass destruction and 
     the means to deliver them;
       (b) conventional threats across a spectrum of conflicts;
       (c) the vulnerability of our information systems and other 
     advanced technologies to non-traditional threats;
       (d) domestic and international terrorism; and
       (e) the potential emergence of a major adversary.
       The Act would also create an independent, non-partisan 
     panel of defense experts (to be known as the National Defense 
     Panel) that would provide the Secretary of Defense and the 
     Congress alternative recommendations regarding the optimal 
     force structure required to meet the national security needs 
     of the United States. This panel would be appointed by the 
     Secretary of Defense after consultation with the Chairmen and 
     Ranking Members of the Committee on Armed Services of the 
     Senate and the Committee on National Security of the House of 
     Representatives.
       The creation of the National Defense Panel is intended to 
     help ensure the validity of the process by playing a very 
     active role in reviewing and commenting on the QDR from the 
     early stages of its development. The Panel is designed to 
     provide the Congress, and the Secretary of Defense, with an 
     independent review of the national security requirements of 
     the United States, including the force structure necessary to 
     meet those requirements. This will, hopefully, allow the 
     Congress and the Secretary to consider alternative options 
     when making decisions affecting the security of the United 
     States.
       Upon completion of the QDR, the Act would require that the 
     Chairman of the Joint Chiefs of Staff and the Chairman of the 
     National Defense Panel prepare and submit to the Secretary of 
     Defense, for inclusion in the Secretary's report to the 
     Congress, their assessment of the QDR. The Secretary's report 
     would also include a comprehensive discussion of the defense 
     strategy of the United States, and the assumptions regarding 
     the threats to our national security, mission sharing, levels 
     of acceptable risk, warning times, and intensity and duration 
     of the conflict. In addition, the report would address the 
     effect on the force structure of preparations for, and 
     participation in, peace operations and military operations 
     other than war. It also would require a discussion of the 
     effects which emerging technologies will have on the U.S. 
     force structure and a number of other matters.
       The House bill contained no similar provision.
       The House recedes.
       The conferees believe this is an appropriate time to review 
     the strategy and force structure necessary to protect the 
     interests of the United States in any future conflict. The 
     pace of global change requires that the United States 
     reexamine its military capabilities with a view toward 
     preparing the military services for the 21st Century.

                      Title X--General Provisions


                         legislative provisions

                     Subtitle A--Financial Matters


                     legislative provisions adopted

     Transfer authority (sec. 1001)
       The House bill contained a provision (sec. 1001) that would 
     provide the authority for reprogramming involving the 
     transfer of authorization between amounts authorized as set 
     out in bill language.
       The Senate amendment contained an identical provision.
       The conference agreement includes this provision.
     Incorporation of classified annex (sec. 1002)
       The House bill contained a provision (sec. 1002) that would 
     incorporate the classified annex prepared by the Committee on 
     National Security into this Act.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment providing 
     that the classified annex prepared by the committee of 
     conference is incorporated into this Act.
     Authority for obligation of certain unauthorized fiscal year 
         1996 defense appropriations (sec. 1003)
       The House bill contained a provision (sec. 1003) that would 
     authorize fiscal year 1996 programs that received 
     appropriations but no authorization.
       The Senate amendment contained an identical provision.
       The conference agreement includes this provision.
     Authorization of prior emergency supplemental appropriations 
         for fiscal year 1996 (sec. 1004)
       The House bill contained a provision (sec. 1004) that would 
     extend authorization to those items appropriated by the 
     fiscal year 1996 emergency supplemental appropriations 
     legislation.
       The Senate amendment contained an identical provision.
       The conference agreement includes this provision.
     Format for budget requests for Navy/Marine Corps and Air 
         Force ammunition accounts (sec. 1005)
       The House bill contained a provision (sec. 1005) that would 
     require the President to request funding for ammunition for 
     the Navy and the Marine Corps, and ammunition for the Air 
     Force in separate appropriation accounts.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Defense airborne reconnaissance program (DARP) (sec. 1006)
       The House bill contained a provision (sec. 1006) that would 
     require the Secretary of Defense to identify all DARP 
     research and development (R&D) programs, projects, or 
     activities, with a unique program element number and 
     procurement line item number, respectively, for all future 
     budget requests beginning with fiscal year 1998.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment.
       The conferees agree that the consolidated Defense Airborne 
     Reconnaissance Office (DARO) budget request does not provide 
     sufficient funding detail for the numerous DARO programs to 
     enable the congressional defense committees to conduct 
     necessary oversight. The major DARO programs currently 
     consolidated in one R&D program element identification number 
     and spread across three procurement line item identification 
     number include: tactical unmanned aerial vehicles; endurance 
     unmanned aerial vehicles; airborne reconnaissance systems; 
     manned reconnaissance systems; and distributed common ground 
     systems. The conferees therefore include a legislative 
     provision that would require the Secretary of Defense to 
     identify at least these major DARP R&D and procurement 
     programs by unique program element identification number and 
     procurement line item identification number, respectively, 
     for all future budget requests beginning with the fiscal year 
     1998.
     Limitation on use of Department of Defense funds transferred 
         to the Coast Guard (sec. 1007)
       The Senate amendment contained a provision (sec. 1004) that 
     would require the Secretary of Defense and the Secretary of 
     Transportation to jointly certify to the Congress that the 
     funds transferred from the Department of Defense to the Coast 
     Guard will be used for the national security functions of the 
     Coast Guard.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Fisher House Trust Fund for the Department of the Navy (sec. 
         1008)
       The Senate amendment contained a provision (sec. 1008) that 
     would would establish a trust fund in the U.S. Treasury for 
     the Navy Fisher Houses.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Designation and liability of disbursing and certifying 
         officials for the Coast Guard (sec. 1009)
       The Senate amendment contained a provision (sec. 1009) that 
     would extend the authorization for the designation and 
     appointment of disbursing and certifying officials within the 
     Department of Defense to the Secretary of Transportation for 
     the Coast Guard. The Department of Defense was authorized to 
     designate and appoint disbursing and certifying officials in 
     the National Defense Authorization Act for Fiscal Year 1996. 
     The recommended provision would extend these financial 
     management authorities to the Coast Guard.
       The House bill contained no similar provision.
       The House recedes.
     Authority to suspend or terminate collection actions against 
         deceased members of the Coast Guard (sec. 1010)
        The Senate amendment contained a provision (sec. 1010) 
     that would rescind the requirement to initiate and pursue 
     collection actions against the estates of members of the 
     Coast Guard who die while on active duty and are indebted to 
     the government.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.

[[Page H9298]]

     Department of Defense disbursing official check cashing and 
         exchange transactions (sec. 1011)
       The House bill contained a provision (sec. 907) that would 
     permit Department of Defense disbursing officials to provide 
     check cashing services and exchange services to U.S. 
     chartered federal credit unions serving U.S. military 
     personnel and their dependents in foreign countries where 
     military banking facilities are not available.
       The Senate amendment contained a similar provision (sec. 
     1011).
       The Senate recedes with a clarifying amendment.

                Subtitle B--Naval Vessels and Shipyards


                     Legislative provisions adopted

     Repeal of requirement for continuous applicability of 
         contracts for phased maintenance of AE class ships (sec. 
         1021)
       The Senate amendment contained a provision (sec. 1023) that 
     would repeal section 1016 of the National Defense 
     Authorization Act of Fiscal Year 1996.
       The House bill contained no similar provision.
       The House recedes.
     Funding for second and third maritime prepositioning ships 
         out of National Defense Sealift Fund (sec. 1022)
       The budget request included $963.0 million in the National 
     Defense Sealift Fund (NDSF) for strategic sealift, including 
     $603.8 million for the procurement of two large medium speed 
     roll-on/roll-off (LMSR) ships, $260.8 million for operations 
     and maintenance of the ready reserve force (RRF), $90.0 
     million for acquisition of additional ships for the RRF, and 
     $8.4 million for sealift research and development
       The Senate amendment contained a provision (sec. 311) that 
     would authorize an increase of $240.0 million in the NDSF for 
     the purchase and conversion, or construction if it is 
     competitive based on price and timeliness, of two additional 
     ships for the Marine Corps maritime prepositioning force 
     enhancement (MPF(E)) program. Acquisition of these two ships 
     would satisfy the Marine Corps MPF(E) threshold operational 
     requirement. The Senate report (S. Rept. 104-267), which was 
     published on May 13, 1996, provided the rationale for this 
     provision. A subsequent MPF(E) life cycle cost comparison was 
     undertaken by the Congressional Research Service (CRS) at the 
     request of the Committee on Armed Services of the Senate and 
     completed on June 21, 1996. CRS evaluated a number of 
     possible options, including purchase and conversion of an 
     existing hull, a new construction variant of the Army's LMSR, 
     and a lengthened version of a national defense features roll-
     on/roll-off design that was developed as a maritime 
     technology initiative. The study concluded that, with a 
     threshold operational requirement and any time horizon from 
     fiscal year 2009 out to thirty years of service life as the 
     benchmarks, the purchase and conversion of an existing ship 
     to satisfy the Marine Corps threshold requirement for an 
     MPF(E) ship would be the most cost effective option.
       The House bill contained no similar provision. However, the 
     House bill would authorize an increase of $160.0 million for 
     the purpose of procuring a second MPF(E) ship. The House bill 
     also included a separate provision, discussed elsewhere in 
     this statement of managers, that would ensure that the second 
     and third ships acquired to satisfy the MPF(E) requirement 
     are new vessels constructed in U.S. shipyards.
       The House recedes.
     Transfer of certain obsolete tugboats of the Navy (sec. 1023)
       The Senate amendment contained a provision (sec. 1022) that 
     would authorize the Secretary of the Navy to transfer six 
     obsolete tugboats from the Navy to an instrumentality of the 
     State of Wisconsin, the Northeast Wisconsin Railroad 
     Transportation Commission, if the Secretary determines that 
     the tugboats are not needed for transfer, donation, or other 
     disposal under title II of the Federal Property and 
     Administrative Services Act of 1949 (40 U.S.C. 481 et seq.). 
     The transfer would be at no expense to the Navy. The 
     provision would also direct the Secretary to require, as a 
     condition of transfer, that use of the vessels by the 
     Commission not commence until the terms of any necessary 
     environmental compliance letter have been met.
       The House bill contained no similar provision.
       The House recedes with an amendment that will clarify the 
     terms under which the transfer could be made.
     Transfer of the U.S.S. Drum to city of Vallejo, California 
         (sec. 1024)
       The House bill contained a provision (sec. 1049) that would 
     authorize the Secretary of the Navy to transfer the U.S.S. 
     Drum (SSN-677) to the City of Vallejo, California, upon 
     satisfactory completion of a ship donation application. This 
     transfer would be at no cost to the government.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Sense of Congress concerning LCS 102 (LSSL 102) (sec. 1025)
       The Senate amendment contained a provision (sec. 1025) that 
     would express the sense of the Senate that the Secretary of 
     Defense should use existing authorities in law to seek 
     return, upon completion of service, of the former U.S.S. LCS 
     102 (LSSL 102) from the Government of Thailand in order for 
     the ship to be transferred to the United States Shipbuilding 
     Museum.
       The House bill contained no similar provision.
       The House recedes.
       The conferees agree to adopt the Senate provision as a 
     sense of Congress.

                  Subtitle C--Counter-Drug Activities


                     legislative provisions adopted

     Overview
       The budget request for drug interdiction and other 
     counterdrug activities of the Department of Defense totals 
     $782.2 million. This includes the $642.7 million drug 
     interdiction account, and $139.5 million in the military 
     services' operating budgets for counterdrug operations. This 
     compares with a total of $810.9 million for these activities 
     during fiscal year 1996, including $679.4 million for the 
     drug interdiction account and $131.5 million in the 
     services's operating budgets.
       The conferees recommend an additional $153.8 million for 
     the counterdrug initiatives of the Department of Defense. 
     These increases, along with the budget request for counter-
     narcotics activities, are shown in the table below.

 Drug Interdiction & Counterdrug Activities Operations and Maintenance

         [in thousands of dollars; may not add due to rounding]

Fiscal Year 1997 Drug and Counterdrug Request...................782,200
  Source Nation Support.........................................154,000
  Detection and Monitoring......................................232,100
  Disruption of Drug Mafia Organizations.........................57,100
  Law Enforcement Agency........................................255,000
  Demand Reduction...............................................84,000
Increases:
  Support for Military Counterdrug Units of Mexico................8,000
  Laser Strike....................................................8,000
  Riverine Operations in South America............................4,000
  Signal Intelligence Equipment for Southwest Border..............2,500
  Southwest Border Fence..........................................5,000
  Refurbish and Install TPS-70 Radar.............................15,000
  P-3B AEW Retrofit (2 a/c)......................................98,000
  Non-Intrusive Inspection Systems................................6,000
  Gulf States Counterdrug Initiative..............................2,800
  Multi-Jurisdictional Task Force.................................1,000
  C-26 Upgrades...................................................3,500
Recommendation..................................................936,000

       The increase in funding will enable the Department of 
     Defense and the Federal Government to more rigorously pursue 
     its counter-narcotics efforts including priority programs 
     identified by the Office of National Drug Control Policy.
     Mexico-Southwest Border Initiative
       The conferees recognize that a substantial quantity of the 
     narcotics entering the United States from South America 
     continues to come across the southwest border. Some reports 
     put this quantity as high as 70 percent. The conferees urge 
     the Department to increase its effort in working with the 
     Government of Mexico to stem the flow of narcotics across 
     this border and recommend an increase of $8.0 million in 
     fiscal year 1997 to be used for this purpose.
       The conferees are encouraged by the Department's 
     intelligence gathering activities related to the prevention 
     of drug-smuggling across the southwest border. The conferees 
     recommend an increase of $2.5 million for the purchase of 
     signal intelligence equipment to be used for communications 
     intercept activities along the southwest border.
       The conferees continue to have an interest in facilitating 
     support for the border fence project along the San Diego-
     Tijuana border area in Southern California. The conferees are 
     aware of the efforts of JTF-6 and the California National 
     Guard in sustaining an adequate level of support to enhance 
     this barrier. The conferees endorse the decision to fund the 
     effort to enhance the fence from within the immigration 
     control budget. However, to ensure that the existing program 
     to extend the length of fence coverage is not unnecessarily 
     interrupted, the conferees recommend an additional $5.0 
     million for continued support of this national project.
       In addition, the conferees recommend an additional $6.0 
     million for the purchase of non-intrusive inspection devices 
     to be deployed at major ports of entry along the southwest 
     border. This will help to ensure that the U.S. war on drugs 
     in this region is provided with the most up to date detection 
     equipment.
     Caribbean and South American Initiative
       The conferees are aware that the Department's request is 
     insufficient to provide full funding of Operation Laser 
     Strike in fiscal year 1997. Laser Strike will build on the 
     success of Operation Green Clover and involves a sustained 
     level of U.S. detection, monitoring and tracking resources, 
     as well as assessments and training, to support expanded 
     interdiction and law enforcement efforts by nations of the 
     source region. The conferees support this important operation 
     and recommend an increase of $8.0 million in order to provide 
     full funding.
       The conferees are also aware that drug traffickers are 
     making greater use of the vast river network in the Andean 
     region to transport processed cocaine and pre-cursor 
     materials. Currently, the governments in the source nations 
     are ill-prepared to interdict

[[Page H9299]]

     drug trafficking on their rivers and waterways. Therefore, 
     the conferees recommend an increase of $4.0 million for 
     assistance to the governments of the source nations in their 
     efforts to stem the flow of narcotics moving on these rivers.
       The conferees are encouraged by the level of success 
     achieved by the Department in reducing the movement of 
     narcotics by air. The conferees recommend an additional $15.0 
     million for the installation of a TPS-70 radar which will 
     assist the Department, and those cooperative governments of 
     the source nations, in efforts to further reduce the amount 
     of drugs that smugglers are moving with the use of aircraft. 
     In addition, the conferees recommend an additional $98.0 
     million for the retrofitting of two P-3B aircraft with 
     airborne radars which will provide the U.S. Customs Service 
     with additional detection and monitoring capability.
     Domestic Counter-Narcotics Initiative
       The conferees have learned that the number of OH-58D 
     helicopters in the Army National Guard will be reduced 
     dramatically under the Army's Aviation Restructure 
     Initiative. These helicopters, with their forward looking 
     infrared radar (FLIR), are particularly useful in the 
     National Guard's detection of illicit marijuana fields. The 
     conferees have been advised that the Department of Defense's 
     Office of Drug Enforcement Policy and Support is reviewing 
     this situation with a view towards the retention of 
     additional OH-58D helicopters, as appropriate, within 
     existing funding resources. The conferees support this 
     initiative and direct that Office, in coordination with the 
     Department of the Army and the National Guard Bureau, to 
     ensure the allocation of additional helicopters to those 
     states that have historically used these assets for the 
     detection and destruction of illicit marijuana fields.
       The conferees are aware of a shortfall in funding for the 
     National Guard C-26 aircraft photo reconnaissance and 
     infrared surveillance upgrade program. Therefore, the 
     conferees recommend an increase of $3.5 million to restore 
     the number of aircraft involved in the C-26 photo 
     reconnaissance upgrade program to its previous level.
       The conferees continue to support the Gulf States 
     Counterdrug Initiative (GSCI) and are pleased to note that 
     the budget request contains $3.2 million for this initiative. 
     However, the conferees are concerned that this funding level 
     does not adequately cover the required costs for the Regional 
     Counterdrug Training Academy, integrating the state of 
     Georgia into the program and other priority initiatives. 
     Therefore, the committee recommends an increase of $2.8 
     million over the requested amount. The committee strongly 
     believes that funds provided for this program should remain 
     focused on training and improving command, control, 
     communications, and computer capabilities.
       The conferees continue to support the efforts of the Multi-
     Jurisdiction Task Force to provide valuable counter-narcotics 
     training to our nation's state and local law enforcement 
     agencies. The conferees recommend an additional $1.0 help in 
     these efforts.
     Legislative Provisions (secs. 1031-1032)
       In order to facilitate the Department's ability to carry 
     out these initiatives, the conferees recommend two 
     provisions. The first provision would authorize the transfer 
     of both the non-intrusive inspection devices and 2 P-3B 
     aircraft to the U.S. Customs Service. Prior to the obligation 
     of funds for the P-3B aircraft, the Secretary would have to 
     certify to Congress that the transfer of these aircraft to 
     the U.S. Customs Service will significantly reduce the level 
     of support that would otherwise be requested of the 
     Department's E-3 AWACS aircraft.
       The conferees also include a provision from the Senate 
     amendment (sec. 1031) that would grant the Secretary of 
     Defense the authority to provide additional support for the 
     counter-drug activities of the Government of Mexico. This 
     provision would authorize the Secretary to transfer non-
     lethal protective and utility personnel equipment, spare 
     parts, and non-lethal specialized equipment, such as 
     navigation equipment, communications equipment, and photo 
     equipment, to Mexico.The conferees wish to make clear that 
     the Secretary would only be authorized to transfer equipment 
     specified by this provision and in no way could use this 
     authority to transfer helicopters or other aircraft.
     Transfer of excess personal property to support law 
         enforcement activities (sec. 1033)
       The House bill contained a provision (sec. 362) that would 
     provide permanent authority for the Department of Defense 
     (DOD) to provide excess personal property to state and local 
     law enforcement agencies. This property includes vehicles, 
     helicopters, weapons, ammunition and other property that is 
     needed by law enforcement agencies. Section 1208 of the 
     National Defense Authorization Act for Fiscal Years 1990 and 
     1991 (Public Law 101-189) estabished a one year program to 
     provide excess personal property to law enforcement agencies 
     for use in drug enforcement activities. This provision was 
     extended until September 30, 1997 by section 1005 of the 
     National Defense Authorization Act for Fiscal Year 1991 
     (Public Law 101-510). This provision would make the section 
     1208 program permanent and expand it to all law enforcement 
     activities with a priority to counter-narcotics activities.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment which would give 
     priority to counter-narcotics and counter-terrorist law 
     enforcement activities. The amendment would also ensure that 
     DOD would incur no cost of transferring this excess equipment 
     to these law enforcement agencies except the cost associated 
     with the management of the program within DOD.
     Sale by Federal departments or agencies of chemicals used to 
         manufacture controlled substances (sec. 1034)
       The Senate amendment contained a provision (sec. 1082) that 
     would prevent the sale of chemicals that could be used in the 
     manufacture of controlled substances. These chemicals could 
     be sold, however, if the head of the department or agency 
     certifies that there is no reasonable cause to believe the 
     sale will result in an improper use.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.

                    Subtitle D--Reports and Studies


                     LEGISLATIVE PROVISIONS ADOPTED

     Annual report on Operation Provide Comfort and Operation 
         Enhanced Southern Watch (sec. 1041)
       The House bill contained a provision (sec. 1021) that would 
     require a consolidated annual report on the conduct of 
     Operations Provide Comfort and Enhanced Southern Watch over 
     and within Iraq. This annual report would be required to be 
     submitted to the Congress so long as the operations continue.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Annual report on emerging operational concepts (sec. 1042)
       The Senate amendment contained a provision (sec. 1051) that 
     would require the Chairman of the Joint Chiefs of Staff to 
     provide an annual report to Congress describing the process 
     of defining emerging operational concepts in each of the 
     services and the manner in which the services' processes are 
     coordinated in matters of doctrine, operational concepts, 
     organization and acquisition strategy.
       The House bill contained no similar provision.
       The House recedes with an amendment requiring the Secretary 
     of Defense to prepare and submit the report in consultation 
     with the chairman of the Joint Chiefs of Staff.
     Report on Department of Defense military child care programs 
         (sec. 1043)
       The Senate amendment contained a provision (sec. 1078) that 
     would express the sense of the Senate that the Department of 
     Defense should share its experiences with providing child 
     care services with other federal, state, and local agencies.
       The House bill contained no similar provision.
       The House recedes with an amendment that would express the 
     sense of the Congress.
     Report on Department of Defense military youth programs (sec. 
         1044)
       The Senate amendment contained a provision (sec. 1077) that 
     would express the sense of the Senate that the Department of 
     Defense should share its experiences in conducting youth 
     programs with other federal, state, and local agencies.
       The House bill contained no similar provision.
       The House recedes with an amendment that would express the 
     sense of the Congress.
     Quarterly reports regarding coproduction agreements (sec. 
         1045)
       The House bill contained a provision (sec. 1046) that would 
     amend the Arms Export Control Act (22 U.S.C. 2776(a)) to 
     require that quarterly reports to the Congress required by 
     this statute include information on specified government-to-
     government agreements on foreign co-production of defense 
     articles.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Report on witness interview procedures for Department of 
         Defense criminal investigations (sec. 1046)
       The House bill contained a provision (sec. 1023) that would 
     require the Comptroller General to survey and report on the 
     policies and practices of all military criminal investigative 
     agencies with respect to the manner in which interviews of 
     witnesses and suspects are conducted.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would narrow the 
     focus of the survey to the subject of procurement fraud 
     investigations in the Department of the Navy.
     Report on military readiness requirements of the Armed Forces 
         (sec. 1047)
       The Senate amendment contained a provision (sec. 1053) that 
     would establish a requirement for a one-time report from the 
     Chairman of the Joint Chiefs of Staff on the military 
     readiness requirements of all U.S. armed forces, including 
     active and reserve components as well as support units, using 
     a tiered readiness system. The provision would also direct 
     the service chiefs and the Commander-in-Chief of the U.S. 
     Special Operations Command to prepare the report for the 
     Chairman. The report which they prepare should assign each 
     force unit, described by type rather than unit name, to one 
     of three tiers of combat readiness which are defined in the 
     provision. The provision establishes parameters for the 
     assessment. The

[[Page H9300]]

     provision would also direct the Chairman to provide a listing 
     of all forces that are not assigned to one of the three 
     readiness tiers. After the service chiefs provide the 
     Chairman with this report, the Chairman shall provide the 
     report to the congressional defense committees together with 
     his comments. The report is required to be submitted by 
     January 31, 1997.
       The Senate bill also contained a provision (sec. 517) that 
     would require the Secretary of Defense to provide a report on 
     the role of specific Guard and Reserve units in the current 
     force structure.
       The House bill contained no similar provisions.
       The House recedes with an amendment that would combine the 
     two reports and would require the Secretary of Defense to 
     report to the Committee on Armed Services of the Senate and 
     the Committee on National Security of the House of 
     Representatives. The Chairman of the JCS and the service 
     chiefs would prepare the report. The Chairman of the JCS 
     would consult with the commander of the U.S. Special 
     Operations Command in preparation of the report.
     Report on NATO enlargement (sec. 1048)
       The Senate amendment contained a provision (sec. 1047) that 
     would require the President to submit a report on enlargement 
     of the membership of North Atlantic Treaty Organization 
     (NATO) to Congress by December 1, 1996. The provision would 
     also require the appointment of congressional members to 
     serve on a bipartisan review group of nongovernmental experts 
     to conduct an independent assessment of the enlargement of 
     NATO, and to report to Congress by December 1, 1996.
       The House bill contained no similar provision.
       The House recedes with an amendment that would change the 
     date from December 1, 1996 to February 1, 1997 for the 
     President's report on NATO enlargement. Additionally, the 
     conferees agree to eliminate the legislative requirement for 
     a congressionally-appointed group of nongovernmental experts 
     to conduct an independent assessment of NATO enlargement.
       The conferees expect that Congress will conduct its own 
     independent assessment on the issue of NATO enlargement.

         Subtitle E--Management of Armed Forces Retirement Home


                     LEGISLATIVE PROVISIONS ADOPTED

     Retirement home boards of directors (sec. 1051)
       The House bill contained an amendment (sec. 366) that would 
     amend the Armed Forces Retirement Home Act of 1991 (Public 
     Law 101-510) to update the terms of office for members of the 
     armed forces or federal civilians who are appointed as 
     members of the Retirement Home Board, authorize the disposal 
     of real property, and establish annual evaluation procedures 
     for the directors of the individual retirement homes.
       The Senate amendment contained a provision (sec. 581) to 
     clarify references to the Armed Forces Retirement Home Act of 
     1991.
       The Senate amendment also contained a provision (sec. 584) 
     that would enable members of the Armed Forces Retirement Home 
     (AFRH) Board and local boards to be reappointed under certain 
     conditions. The provision also would permit a change in the 
     method by which certain AFRH employees are compensated.
       The Senate recedes on both provisions.
     Acceptance of uncompensated services (sec. 1052)
       The Senate amendment contained a provision (sec. 582) that 
     would enable the Chairman of the Armed Forces Retirement Home 
     (AFRH) Board, or the directors of the individual homes, to 
     accept uncompensated or gratuitous services from volunteers 
     under procedures similar to those currently in place in the 
     Department of Defense.
       The House bill contained no similar provision.
       The House recedes.
     Disposal of tract of real property in the District of 
         Columbia (sec. 1053)
       The House bill contained a provision (sec. 366) that would 
     amend the Armed Forces Retirement Home Act of 1991 (Public 
     Law 101-510) to authorize the disposal of real property, and 
     establish annual evaluation procedures for the directors of 
     the individual retirement homes.
       The Senate amendment contained a provision (sec. 583) that 
     would authorize the disposal of a 49 acre parcel of real 
     property at the Armed Forces Retirement Home (AFRH) in 
     accordance with title 24, United States Code.
       The Senate recedes with an amendment that would establish a 
     procedure under which the Congress is notified about 
     proceedings on the sale of property.

                       Subtitle F--Other Matters


                     LEGISLATIVE PROVISIONS ADOPTED

     Policy on protection of national information infrastructure 
         against strategic attack (sec. 1061)
       The House bill contained a provision (sec. 1022) that would 
     require the President to submit a report to Congress setting 
     forth national policy on protecting the national information 
     infrastructure. The provision would require a number of 
     specific issues to be addressed in the report which would be 
     required to be submitted no later than 180 days after the 
     date of enactment of this Act.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Information systems security program (sec. 1062)
       The House bill contained a provision (sec. 1031) that would 
     require the Secretary of Defense to allocate an increasing 
     percentage of funds appropriated for the defense information 
     infrastructure to security beginning in fiscal year 1998.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would delay 
     implementation of the percentage allocation formula until 
     fiscal year 1999, and require a report in 1997 from the 
     Secretary of Defense on the Department's information security 
     objectives, strategy, and investment preferences. If the 
     Secretary submits an investment plan that adequately 
     addresses current and projected shortfalls and 
     vulnerabilities of the information infrastructure, the 
     conferees will reconsider the necessity of allowing this 
     legislative provision to take effect.
     Authority to accept services from foreign governments and 
         international organizations for defense purposes (sec. 
         1063)
       The House bill contained a provision (sec. 1307) that would 
     amend section 2608(a) of title 10, United States Code, to 
     authorize the Department of Defense to accept services, money 
     and property from foreign governments and international 
     organizations. The funds and services from these additional 
     sources would be used to defray the costs of U.S. military 
     forces participating in multi-national operations.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Prohibition on collection and release of detailed satellite 
         imagery relating to Israel (sec. 1064)
       The Senate amendment contained a provision (sec. 1044) that 
     would limit the collection and release of satellite imagery 
     of Israel or other countries or geographical areas designated 
     by the President.
       The House bill contained no similar provision.
       The House recedes with an amendment.
     George C. Marshall European Center for Strategic Security 
         Studies (sec. 1065)
       The House bill contained a provision (sec. 1037) that would 
     authorize the Secretary of Defense to accept contributions of 
     money or services from any foreign nation intended to defray 
     the cost of, or enhance the operations of, the George G. 
     Marshall European Center For Strategic Studies. This 
     provision would also authorize the Secretary of Defense to 
     approve the participation of European or Eurasian nations in 
     Marshall Center programs.
       The Senate amendment contained a provision (sec. 1068) that 
     would authorize the George C. Marshall Center for Strategic 
     Security to accept contributions from foreign governments, 
     foundations, charitable organizations, and individuals in 
     foreign countries.
       The Senate recedes with an amendment that would combine the 
     two provisions.
     Authority to award to civilian participants in the defense of 
         Pearl Harbor the congressional medal previously 
         authorized only for military participants in the defense 
         of Pearl Harbor (sec. 1066)
       The Senate amendment contained a provision (sec. 1069) that 
     would extend to civilians who participated in the defense of 
     Pearl Harbor eligibility for award for a bronze medal to 
     commemorate the services of those persons.
       The House bill contained no similar provision.
       The House recedes.
     Assimilative crimes authority for traffic offenses on 
         military installations (sec. 1067)
       The Senate amendment contained a provision (sec. 1079) that 
     would allow the Secretary of Defense or his designee to 
     promulgate rules or regulations concerning traffic offenses 
     committed on military installations and apply the surrounding 
     community's authorized punishments to those offenses in 
     specified circumstances.
       The House bill contained no similar provision.
       The House recedes.
     Uniform Code of Military Justice amendments (sec. 1068)
       The Senate amendment contained a provision (sec. 1061) that 
     would make a series of amendments to the Uniform Code of 
     Military Justice: a technical amendment to existing 
     legislation governing forfeitures adjudged at special courts-
     martial to conform 10 U.S.C. 858b(a)(1) to the maximum 
     punishment currently prescribed by law; and a provision that 
     would amend Article 143(c) of the Uniform Code of Military 
     Justice (10 U.S.C. 943(c)) to allow judges of the United 
     States Court of Appeals for the Armed Forces to make excepted 
     service appointments to non-attorney positions on the 
     personal staff of a judge;
       The House bill contained similar provision.
       The Senate amendment contained a provision that would 
     extend the length of one of the transitional judges on the 
     United States Court of Appeals for the Armed Forces from 13 
     years to 15 years.
       The House bill contained no similar provision.
       The House recedes with an amendment that would combine 
     Senate provision 1061 and House provision 564.
     Punishment of interstate stalking (sec. 1069)
       The Senate amendment contained a provision (sec. 543) that 
     would make it a Federal

[[Page H9301]]

     crime to stalk members of the armed forces or a member of 
     their immediate family.
       The House bill contained no similar provision.
       The House recedes with an amendment that would broaden the 
     provision to apply to any incident of stalking involving 
     interstate movement or which occurs on Federal property.
     Participation of members, dependents, and other persons in 
         crime prevention efforts at installations (sec. 1070)
       The House bill contained a provision (sec. 1038) that would 
     require the Secretary of Defense to promulgate regulations to 
     require service members, dependents, civilian employees and 
     defense contractors working on a military installation to 
     report to military law enforcement officials any criminal 
     activity that occurs on a military installation. It also 
     would require the Secretary of Defense to report to Congress 
     by February 1, 1997, on efforts to implement this provision.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to prepare an incentive-based plan to 
     encourage the reporting of crimes.
     Display of State flags at installations and facilities of the 
         Department of Defense (sec. 1071)
       The Senate amendment contained a provision (sec. 1067) that 
     would prohibit the adoption or enforcement of any rule that 
     discriminates against the display of any official state or 
     United States' Territory flag. This prohibition involves 
     official ceremonies conducted on Department of Defense 
     installations that display all state flags.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Treatment of excess operational support airlift aircraft 
         (sec. 1072)
       The Senate amendment contained a provision (sec. 1083) that 
     would require that all excess operational support airlift 
     aircraft (OSA) be placed in inactive status and stored 
     pending completion of any study or analysis of the costs and 
     benefits of disposing or operating such aircraft.
       The House bill contained no similar provision. The House 
     Report (H. Rept. 104-563) would prevent the Secretary of the 
     Army from making changes in the Army OSA program until the 
     Secretary of Defense submits a detailed plan for reducing and 
     redistributing all OSA aircraft.
       The House recedes with an amendment that would direct the 
     Secretary of Defense to ensure that attempts to reuse or sell 
     the aircraft are given precedence over reutilization or sale 
     of individual parts of those aircraft.
       The conferees understand that the Department has submitted 
     the plan and analysis directed in the House report.
     Correction to statutory references to certain Department of 
         Defense organizations (secs. 1073-1074)
       The House bill contained a provision (sec. 1039(a)) that 
     would make a number of minor technical and clerical 
     amendments.
       The Senate amendment contained similar provisions (secs. 
     112, 905, 1063).
       The conference agreement includes all provisions.
     Modification to third-party liability to United States for 
         tortious infliction of injury or disease on members of 
         the uniformed services (sec. 1075)
       The Senate amendment contained a provision (sec. 1066) that 
     would amend section one of the Medical Care Recovery Act (42 
     U.S.C. 2651) to enable the United States to recover the costs 
     of compensation provided to members of the armed forces by 
     the United States when they are unable to perform their 
     regular military duties due to circumstances in which a third 
     party has tort liability.
       The House bill contained no similar amendment.
       The House recedes.
     Chemical Stockpile Emergency Preparedness Program (sec. 1076)
       The House bill contained a provision (sec. 1045) that would 
     require the Secretary of the Army to submit a report to 
     Congress assessing the implementation and success of 
     establishing site-specific integrated product and process 
     teams as a management tool for the chemical stockpile 
     emergency preparedness program (CSEPP).
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Exemption from requirements applicable to savings 
         associations for certain savings institutions serving 
         military personnel (sec. 1077)
       The Senate amendment contained a provision (sec. 1089) that 
     would amend the Home Owners' Loan Act to permit an exemption 
     to the act for a savings association subsidiary of a savings 
     and loan holding company if not less than 90 percent of the 
     customers are active or former officers in the military 
     services or their survivors.
       The House bill contained no similar provision.
       The House recedes with an amendment that would permit these 
     savings institutions to serve all military personnel.
     Improvements to National Security Education Program (sec. 
         1078)
       The Senate amendment contained a provision (sec. 1075) that 
     would revise government service requirements for student 
     recipients of undergraduate scholarships and graduate 
     fellowships awarded under the National Security Education Act 
     of 1991 (NSEA) and administered by the National Security 
     Education Program (NSEP).
       The House bill contained no similar provision.
       The House recedes with an amendment that would clarify the 
     terms of the service agreement between the recipient and the 
     NSEP.
       The conferees support the intended purpose of NSEA to 
     promote international education and foreign language study by 
     U.S. students, who later serve in defense and intelligence 
     related positions in the U.S. government. If administered 
     effectively, the conferees regard this program as 
     constructive in assisting the education of qualified 
     students, while strengthening national security institutions 
     by introducing prospective candidates to the workforce. In 
     this light, the conferees expect the Secretary of Defense to 
     emphasize that student experience from foreign studies be 
     reinvested in the government's national security efforts, 
     establish greater awareness in the national security agencies 
     about the availability and skills of such resources, and 
     pursue an active and effective program in utilizing these 
     individuals realizing their service obligation.
     Aviation and vessel war risk insurance (sec. 1079)
       The House bill contained a provision (sec. 1032) that would 
     authorize the Department of Defense to transfer funds to the 
     Department of Transportation in the event of a loss incurred 
     incident to aviation insurance issued by the Federal Aviation 
     Administration pursuant to title 49, United States Code, or 
     vessel war risk insurance issued by the Maritime 
     Administration pursuant to title 46, United States Code, when 
     reimbursement is required by those statutes or implementing 
     agreements. In the case of a reimbursement required as the 
     result of an aviation incident, reimbursement to the 
     Secretary of Transportation would be required within 30 days 
     following the presentment of a valid claim to the 
     Administrator of the Federal Aviation Administration. For 
     vessel war risk claims, such reimbursement would be made not 
     later than 90 days following adjudication of the claim by the 
     Administrator of the maritime Administration.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would limit 
     payments to mortgage responsibilities on the lost or damaged 
     aircraft or a vessel until such time as the claim is 
     adjudicated and settled.
     Designation of memorial as National D-Day Memorial (sec. 
         1080)
       The Senate amendment contained a provision (sec. 1074) that 
     would designate the D-Day Memorial in Bedford, Virginia as 
     the National D-Day Memorial.
       The House bill contained no similar provision.
       The House recedes.
     Sense of Congress regarding semiconductor trade agreement 
         between United States and Japan (sec. 1081)
       The Senate amendment contained a sense of the Senate 
     provision (sec. 1072) urging the President to negotiate an 
     extension of the United States-Japan Semiconductor agreement 
     that is set to expire on July 31, 1996.
       The House bill contained no similar provision.
       The House recedes with an amendment making the sense of the 
     Senate a sense of Congress.
     Agreements for exchange of defense personnel between the 
         United States and foreign countries (sec. 1082)
       The Senate amendment contained a provision (sec. 1041) that 
     would authorize the Secretary of Defense to enter into 
     agreements with governments of allies of the United States 
     and other friendly countries for the exchange of military and 
     civilian personnel of the Department of Defense and military 
     and civilian personnel of the defense ministries. The purpose 
     of the agreement would be to facilitate greater 
     understanding, standardization, and interoperability.
       The House bill contained no similar provision.
       The House recedes.
       The conferees note that no funds are authorized by this 
     provision for familiarization, orientation, or certification 
     of exchange personnel.
       The conferees agree that the authority granted to the 
     Secretary by this provision shall be implemented specifically 
     as written. This authority is not to be used as a mechanism 
     to require the Department of Defense to fund visits and 
     training of military and civilian personnel from allied and 
     other foreign countries without reciprocal exchanges that 
     provide substantially equivalent benefits to the United 
     States.
     Sense of the Senate regarding Bosnia and Herzegovina (sec. 
         1083)
       The Senate amendment contained a provision (sec. 1084) that 
     would express the sense of the Senate that the price of 
     equipment transferred to Bosnia and Herzegovina should not 
     exceed the lowest level price for the same or similar 
     equipment transfer to any other country under a government 
     program.
       The House bill contained no similar provision.
       The House recedes.
     Defense burdensharing (sec. 1084)
       The House bill contained a provision (sec. 1041) that would 
     express the sense of the Congress about discrepancies between 
     U.S. and

[[Page H9302]]

     allied defense spending, concluding that the United States 
     continues to bear a greater burden for the common defense 
     than its allies. The provision would also direct the 
     President to seek increases to allied defense spending 
     through increased contributions in any of four areas: 
     increasing the cost share of all non-U.S. nations where U.S. 
     military forces are deployed by reaching specific percentages 
     by certain dates; increasing defense spending comparable to 
     that of the United States; increasing foreign assistance; or, 
     increasing the amount of military resources contributed to 
     multinational military activities. Additionally, the 
     provision would require two reports regarding actions taken 
     to increase allied burdensharing and progress in increasing 
     allied burdensharing.
       The Senate amendment contained a similar provision (sec. 
     1045) that would express the concerns of the Senate that the 
     United States is bearing a disproportionate share of the 
     common defense; directs the President to seek increases to 
     allied defense burdensharing through one or a combination of 
     four areas, similar to the four areas identified in the House 
     language. Additionally, the provision would require the 
     Department of Defense to report to Congress by March 1, 1997 
     on progress in increasing allied burdensharing and the 
     relationship of burdensharing and forward deployment of U.S. 
     military forces. In addition, the provision modifies the 
     current burdensharing reporting requirement from an annual to 
     a biannual frequency.
       The conferees agree to a provision that would provide the 
     President with the latitude to seek increases to allied 
     burdensharing in one or more of four areas; would require a 
     consolidated report to Congress addressing progress in 
     increasing allied burdensharing as well as the relationship 
     between forward deployment of United States military forces 
     outside the U.S. and allied burdensharing.
       In seeking increases in allied levels of support, the 
     conferees are mindful that the success of such efforts will 
     justifiably differ depending upon a number of variables, 
     including the gross domestic product and the unique aspects 
     of the U.S. relationship with each ally. The conferees 
     recognize for example, that a goal of securing financial 
     contributions at high levels to offset the nonpersonnel costs 
     incurred by the U.S. Government for overseas force personnel 
     may be inappropriate with regard to many U.S. allies.


                   legislative provisions not adopted

     Authority to transport health professionals seeking to 
         provide health-related humanitarian relief services
       The House bill contained a provision (sec. 1042) that would 
     provide the Department of Defense with the authority to 
     provide transportation to civilian health professionals 
     engaged in humanitarian activities.
       The Senate amendment contained no similar provision.
       The House recedes.
     Treatment of excess defense articles of Coast Guard under 
         Foreign Assistance Act of 1961
       The House bill contained a provision (sec. 1043) that would 
     permit excess property of the Coast Guard to be treated in 
     the same manner as the excess property of the other armed 
     services under the Foreign Assistance Act of 1961 (22 U.S.C. 
     2403(g)).
       The Senate amendment contained no similar provision.
       The House recedes. The intent of this provision has been 
     accomplished by separate legislation.
     Authority to transfer naval vessels
       The House bill contained a provision (sec. 1052) and the 
     Senate amendment contained a provision (sec. 1021) that would 
     authorize transfer of six Knox class frigates, one Oliver 
     Hazard Perry class guided missile frigate, one Newport class 
     tank landing ship, and two Stalwart class ocean surveillance 
     ships to various countries.
       These provisions were not included in the conference 
     agreement. The transfer of these ships has been authorized by 
     separate legislation (H.R. 3121).
     Southwest Border States Anti-drug Information System
       The House bill contained a provision (sec. 1055) that would 
     express the sense of Congress that the Federal Government 
     should support and encourage the full utilization of the 
     Southwest Border States Anti-Drug Information System.
       The Senate amendment contained no similar provision.
       The House recedes. The conferees recognize the valuable 
     contribution that the Southwest Border States Anti-Drug 
     Information System continues to make to the national 
     counterdrug effort and have agreed to fully fund the request.
     Sikes Act improvements amendments
       The House bill contained a provision (secs. 1401-1414) that 
     would amend the Sikes Act (Public Law 99-561) to address 
     issues related to the preparation and implementation of 
     integrated natural resource management plans at military 
     installations.
       The Senate amendment contained no similar provision.
       The House recedes.


                   LEGISLATIVE PROVISION NOT ADOPTED

     Use of hunting and fishing permit fees collected at closed 
         military reservations
       The House bill contained a provision (sec. 1407) that would 
     amend section 670(a) of title 16, United States Code, 
     commonly known as the ``Sikes Act'' to authorize the transfer 
     of fees collected on a closing military installation for 
     hunting and fishing permits. The provision would allow the 
     transfer of those fees collected at a closing installation to 
     another open installation for the conservation purposes 
     expressed in the Act.
       The Senate amendment contained a similar provision (sec. 
     351).
       The House recedes from its provision and the Senate recedes 
     from its provision.
     Defense and security assistance
       The House bill contained provisions (secs. 1501-1553) that 
     would amend the Foreign Assistance Act of 1961 and the Arms 
     Export Control Act, and address matters relating to 
     International Military Education and Training, anti-terrorism 
     assistance, and narcotics control assistance.
       The Senate amendment contained no similar provisions.
       The House recedes.
       The intent of this title has been accomplished by separate 
     legislation.
     General limitations
       The Senate amendment contained a provision (sec. 4) that 
     would limit the total amount authorized to be appropriated by 
     this Act for fiscal year 1997 for the national defense 
     function to $265,583,000,000.
       The House bill contained no similar provision.
       The Senate recedes.
     Fees for residents
       The Senate amendment contained a provision (sec. 585) that 
     would direct the Secretary of Defense, in conjunction with 
     the military departments and the Armed Forces Retirement Home 
     (AFRH) Board, to report to the congressional defense 
     committees on aspects of the AFRH resident fees structure and 
     the monthly assessment on active duty service members
       The House bill contained no similar provision.
       The Senate recedes.
     Military-to-Military Contacts program
       The Senate amendment contained a provision (sec. 1005) that 
     would expand the authority of the Military-to-Military 
     Contacts program within the Department of Defense in order to 
     permit the Department to use this program to pay for 
     international military education and training activities.
       The House bill contained no similar provision.
       The Senate recedes.
     Reimbursement of Department of Defense for costs of disaster 
         assistance provided outside the United States
       The Senate amendment contained a provision (sec. 1007) that 
     would express the sense of Congress that whenever the 
     President directs the Secretary of Defense to provide 
     disaster assistance outside the United States, the President 
     should also direct the Administrator of the Agency for 
     International Development (AID) to reimburse the Department 
     of Defense for the cost of the assistance provided.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees are concerned with the current practice of 
     using funds appropriated to the Department of Defense to 
     provide disaster assistance to foreign nations. The conferees 
     believe that funds appropriated to AID should be used to 
     provide such assistance. The conferees urge the Secretary of 
     Defense and the Director of AID to establish procedures to 
     reimburse the DOD for its funding of international disaster 
     assistance.
     Contract options for LMSR vessels
       The Senate amendment contained a provision (sec. 1024) that 
     would amend section 1013 of the National Defense 
     Authorization Act for Fiscal Year 1996 to prohibit the 
     Secretary of the Navy from negotiating and awarding contracts 
     or contract options for two large medium speed roll-on/roll-
     off (LMSR) vessels before fiscal year 1998.
       The House bill contained no similar provision.
       The Senate recedes.
     National Drug Intelligence Center
       The Senate amendment contained a provision (sec. 1032) that 
     would prohibit the funding of the National Drug Intelligence 
     Center by the Department of Defense. The Senate amendment 
     also contained a provision (sec. 1033) that would require an 
     investigation of the National Drug Intelligence Center by the 
     Inspectors General of the Department of Defense, the 
     Department of Justice, the Central Intelligence Agency, and 
     the Comptroller General of the United States.
       The House bill contained no similar provisions.
       The Senate recedes.
     Authority for reciprocal exchange of personnel between the 
         United States and foreign countries for flight training
       The Senate amendment contained a provision (sec. 1042) that 
     would authorize the exchange of students from U.S. military 
     flight training schools on a one-for-one basis to comparable 
     flight training schools of foreign countries.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees understand that legislation passed by both 
     the House and Senate, which amended the Foreign Assistance 
     Act of 1961 and the Arms Export Control Act to make 
     improvements to certain defense and security assistance 
     provisions under those Acts, contains a similar provision.

[[Page H9303]]

     Report on facilities used for testing launch vehicle engines
       The Senate amendment contained a provision (sec. 1056) that 
     would require the Secretary of Defense, in consultation with 
     the Administrator of the National Aeronautics and Space 
     Administration, to provide a report to Congress on the 
     facilities used for testing launch vehicle engines.
       The House bill contained no similar provision.
       The Senate recedes.
     Equitable treatment for the generic drug industry
       The Senate amendment contained a provision (sec. 1080) that 
     would allow companies that successfully demonstrate that they 
     have made a ``substantial investment'' in certain generic 
     drugs before adoption of the 1994 changes to General 
     Agreement on Tariffs and Trade (GATT) to market those drugs 
     despite a three-year patent extension granted by GATT that 
     would otherwise block their marketing.
       The House bill contained no similar provision.
       The Senate recedes.
     Facility for military dependent children with disabilities, 
         Lackland Air Force Base, Texas
       The Senate amendment contained a provision (sec. 1087) that 
     would authorize the Secretary of the Air Force to transfer 
     $2.0 million to the Children's Association for Maximum 
     Potential (CAMP) for the construction of a facility for 
     military dependent children with disabilities at Lackland Air 
     Force Base, Texas. The grant is contingent upon an agreement 
     between the Secretary and CAMP that would specify a 25-year 
     lease for the facility and, as consideration for the lease 
     CAMP, would be responsible for operations and maintenance 
     cost of the facility.
       The House bill amendment contained no similar provision.
       The Senate recedes.
     Prohibition on the distribution of information relating to 
         explosive materials for a criminal purpose
       The Senate amendment contained a provision (sec. 1088) that 
     would prohibit the teaching or demonstration of the 
     manufacture of explosive materials to certain individuals. 
     Violations of this section would be punishable by fines and 
     imprisonment.
       The House bill contained no similar provision.
       The Senate recedes.
     Sense of the Senate regarding the reopening of Pennsylvania 
         Avenue
       The Senate amendment contained a provision (sec. 3601) that 
     would express the sense of the Senate that the President 
     should request the Department of the Treasury and the Secret 
     Service to work with the Government of the District of 
     Columbia to develop a plan to reopen Pennsylvania Avenue in 
     front of the White House to vehicular traffic. The Secretary 
     of the Treasury and the Secret Service would be required to 
     certify that the plan protects the people who live and work 
     in the White House.
       The House bill contained no similar provision.
       The Senate recedes.

             Title XI--National Imagery and Mapping Agency

     National Imagery and Mapping Agency (secs. 1101-1124)
       The Senate amendment contained provisions (secs. 911-934) 
     that would establish a new organization known as the National 
     Imagery and Mapping Agency (NIMA).
       The House bill contained no similar provision.
       The House recedes with an amendment that would: (1) address 
     NIMA's support for the all-source analysis and production 
     process; (2) address NIMA's personnel provisions in a 
     consolidated Department of Defense Intelligence Personnel 
     provision, discussed elsewhere in this report; and (3) 
     establish a uniform standard (in a provision separate from 
     the NIMA legislation) regarding the Secretary of Defense's 
     recommendation to the President on the appointment of the 
     Directors of NIMA, the National Security Agency, and the 
     National Reconnaissance Office.
       The conferees expect that the creation of NIMA will enhance 
     support to the all source analysis and production process. 
     Because of the importance attached to the achievement of this 
     goal, the conferees agree to highlight it as one of the key 
     mission areas to be reviewed in the overall review of NIMA's 
     performance of its assigned national missions.
       The conferees endorse the grant of authority recently given 
     to the Director of the National Security Agency by the Deputy 
     Secretary of Defense over research and development and urge 
     the Secretary of Defense and the Director of Central 
     Intelligence to grant to the Director of NIMA similar 
     approval authority over tactical imagery programs and 
     intelligence agency investment programs.
       NIMA will provide a single agency focus for imagery and 
     geospatial information within the United States Government. 
     NIMA would: (1) be the focal point for the growing and 
     diverse number and types of customers of imagery and 
     geospatial information; (2) ensure visibility and 
     accountability for imagery and geospatial resources; (3) 
     harness, leverage, and focus rapid technological developments 
     to serve imagery, imagery intelligence, and geospatial 
     information customers; and (4) identify and advocate customer 
     needs for this growing and diverse customer pool. The term 
     ``imagery'', as defined and used in this Act, includes 
     products produced from space-based national intelligence 
     reconnaissance systems, in accordance with Executive Order 
     12951 and any successor or superseding Orders.
       Although NIMA would carry out its mission responsibilities 
     under the authority, direction, and control of the Secretary 
     of Defense, with the advice of the Chairman of the Joint 
     Chiefs of Staff, it would have a vital ``national'' mission 
     to serve the imagery and geospatial information needs of 
     consumers outside the Department of Defense. It would carry 
     out its responsibilities to national intelligence customers 
     in accordance with the policies and priorities of the 
     Director of Central Intelligence (DCI). The Central 
     Intelligence Agency (CIA) would have clear, affirmative 
     authorization to provide administrative and contracting 
     services to the NIMA to insure accomplishment of the national 
     mission of the NIMA or the performance of intelligence 
     community activities of common concern, notwithstanding 
     provisions of law that would otherwise limit such an 
     authorization. The CIA also would be permitted to provide 
     security police services for NIMA facilities, notwithstanding 
     any limitations on jurisdiction of such personnel contained 
     in section 15 of the Central Intelligence Agency Act of 1949.
       NIMA would be established by bringing together various 
     agencies and organizations already in existence within the 
     Department of Defense and the Intelligence Community. 
     Specifically, NIMA would be made up of: the Defense Mapping 
     Agency; the Central Imagery Office; other elements of the 
     Department of Defense identified in the classified annex to 
     this Act; the National Photographic Interpretation Center of 
     the CIA; and other elements of the CIA identified in the 
     classified annex to this Act.
       NIMA would be responsible for imagery requirements 
     management, exploitation, dissemination, and archiving. It 
     would define and recommend policies on imagery and geospatial 
     information, and coordinate requirements for an end-to-end 
     architecture, integrated into the National and Defense 
     Information Infrastructure, to satisfy customer needs and to 
     ensure appropriate interoperability.
       NIMA would not be responsible for developing, procuring, or 
     operating imagery collection systems, which are 
     responsibilities currently held by the National 
     Reconnaissance Office, the Defense Airborne Reconnaissance 
     Office, and the intelligence elements of the military 
     services. Nor would NIMA include or replace current 
     organizations for tactical military exploitation and use of 
     imagery products. In effect, NIMA would provide a coherent 
     and uniform linkage between these two ends of the imagery 
     spectrum.
       NIMA would not replace or diminish the current 
     responsibilities of Federal civilian agencies for mapping, 
     charting, and geodesy, or change their existing 
     responsibilities for disaster or emergency response or civil 
     imagery archives. Rather, NIMA would facilitate their access 
     to critical national security information, when appropriate, 
     and promote technology exchange through established 
     interagency mechanisms, such as the Civil Applications 
     Committee. The ability of all members of the intelligence 
     community to obtain both imagery intelligence support 
     regarding matters of common concern and support necessary for 
     individual agency requirements would be maintained and 
     expanded, as appropriate.
       The conferees believe that the legislative charter for NIMA 
     contained in this Act strikes an appropriate balance between 
     the needs of ``national'' intelligence and combat support. As 
     a Combat Support Agency, NIMA must be under the clear 
     authority, direction, and control of the Secretary of 
     Defense. But the charter also provides for a clear and 
     prominent role for the DCI to task imagery systems and 
     exploit imagery products in support of the national mission. 
     The committee notes that the Director of Central Intelligence 
     strongly supports establishment of NIMA as a Combat Support 
     Agency in Title 10, United States Code. The DCI has testified 
     that his peacetime imagery tasking authorities are protected 
     under this arrangement and that he does not believe that 
     support to national customers will be in any way jeopardized. 
     Except as otherwise provided in this Act, establishment of 
     NIMA will not derogate from the existing authorities of the 
     Secretary of Defense or the DCI.
       The conferees also note that the Commission on the Roles 
     and Capabilities of the United States Intelligence Community 
     strongly endorsed the establishment of NIMA as a combat 
     support agency within the Department of Defense. The 
     conferees share the Commission's conclusion that NIMA will 
     significantly improve imagery support to both military 
     operations and planning, as well as to national consumers of 
     intelligence.
       The conferees note that limited collective bargaining would 
     be permitted in NIMA. Collective bargaining units that were 
     recognized by the Defense Mapping Agency at the time its 
     employees and positions were transferred to NIMA would 
     continue to represent the same categories of employees in the 
     NIMA, although expansion of those units or the creation of 
     new bargaining units in NIMA would be prohibited. Positions 
     determined at any time to be engaged in intelligence, 
     counterintelligence, investigative, or security work directly 
     affecting national security would be excluded, at the 
     discretion of the NIMA Director. Permitting continuation of 
     limited collective bargaining in NIMA would not be intended 
     to be a precedent affecting current

[[Page H9304]]

     or future employees or agencies of the Intelligence 
     Community. It would be a one-time solution to a unique 
     situation.

                Title XII--Reserve Forces Revitalization

     Short title (sec. 1201)
       The House bill contained a provision (sec. 1201) that would 
     establish the short title for the follow-on sections as the 
     Reserve Forces Revitalization Act of 1996.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Purpose (sec. 1202)
       The House bill contained a provision (sec. 1202) that would 
     establish the purpose of the Reserve Forces Revitalization 
     Act for 1996.
       The Senate amendment contained no similar provision
       The Senate recedes.


                         LEGISLATIVE PROVISIONS

                Subtitle A--Reserve Component Structure


                     LEGISLATIVE PROVISIONS ADOPTED

     Reserve component commands (sec. 1211)
       The House bill contained a provision (sec. 1211) that would 
     establish separate reserve commands and commanders for the 
     Army, Navy, Marine Corps and Air Force reserves. The section 
     would also delineate the forces to be assigned to each 
     reserve command, as well as prescribe the subsequent 
     assignment of the reserve forces to the commanders-in-chief 
     (CINCs) of the joint combatant commands.
       The Senate amendment contained a provision (sec. 903) that 
     would codify the requirement for the United States Army 
     Reserve Command. The recommended provision would establish 
     that the chain of command for the United States Army Reserve 
     Command shall be prescribed by the Secretary of the Army.
       The House recedes with an amendment that would strike the 
     portion of the House provision pertaining to the Army Reserve 
     Command and include the Senate language pertaining to the 
     Army Reserve Command.
     Reserve component chiefs (sec. 1212)
       The House bill contained a provision (sec. 1212) that would 
     establish separate offices of the military reserve chiefs as 
     part of the staffs of the senior military headquarters of 
     each of the services. In addition, the section would also 
     prescribe the appointment criteria and procedures, and term 
     of office, for the reserve chiefs, and would also assign 
     budget, annual reporting, and other management 
     responsibilities to the reserve component chiefs.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Review of active duty and reserve general and flag officer 
         authorizations (sec. 1213)
       The House bill contained a provision (sec. 1213) that would 
     require the Secretary of Defense to conduct a comprehensive 
     review of the existing statutory reserve and active general 
     and flag officer authorizations and report to Congress any 
     recommendations for revisions to those authorizations, as 
     well as recommendations for the statutory designation of 
     other general and flag officers. the section would also 
     require the Secretary to report on whether reserve component 
     general and flag officers should be exempt from existing 
     active duty general officer ceilings.
       The Senate amendment contained no similar provision.
       The Senate recedes.
       The conferees stress that the Comptroller General has a 
     broad right of access to Agency records under section 716 of 
     title 31, United States Code. Accordingly, it is expected 
     that the Department of Defense will provide the Comptroller 
     General with timely access, before the due date for the 
     Secretary's report to Congress, to all analyses, memoranda, 
     drafts, reports, and other documents prepared or used by the 
     Department in connection with meeting the requirements of 
     this section.
     Guard and reserve technicians (sec. 1214)
       The House bill contained a provision (sec. 1214) that would 
     mandate that military technicians be authorized and accounted 
     for as a separate category of civilian employees who are 
     exempt from general civilian personnel reductions in the 
     Department of Defense. The section would permit military 
     technician reductions only if the reductions were related to 
     force structure changes.
       The Senate amendment contained no similar provision.
       The Senate recedes.

              Subtitle B--Reserve Component Accessibility


                     legislative provisions adopted

     Report to Congress on measures to improve national guard and 
         reserve ability to respond to emergencies (sec. 1231)
       The House bill contained a provision (sec. 1231) that would 
     require the Secretary of Defense to report comprehensively on 
     the measures taken or planned to improve the timeliness, 
     adequacy, and effectiveness of reserve component responses to 
     domestic emergencies. The section would also require the 
     Secretary of Defense to assess the recommendations of the 
     1995 RAND report, ``Assessing the State and Federal Missions 
     of the National Guard.''
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Report to Congress concerning tax incentives for employers of 
         members of reserve components (sec. 1232)
       The House bill contained a provision (sec. 1232) that would 
     require the Secretary of Defense to report to Congress on tax 
     incentives for employers of members of the reserve 
     components.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Report to Congress concerning income insurance program for 
         activated reservists (sec. 1233)
       The House bill contained a provision (sec. 1233) that would 
     require the Secretary of Defense to report to Congress on 
     income insurance programs for activated reservists.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Report to Congress concerning small business loans for 
         members released from reserve service during contingency 
         operations (sec. 1234)
       The House bill contained a provision (sec. 1234) that would 
     would require the Secretary of Defense to report to Congress 
     on small business loans for reservists released from active 
     duty following contingency operations.
       The Senate amendment contained no similar provision.
       The Senate recedes.

                 Subtitle C--Reserve Forces Sustainment


                     Legislative provisions adopted

     Report concerning tax deductibility of nonreimbursable 
         expenses (sec. 1351)
       The House bill contained a provision (sec. 1251) that would 
     require the Secretary of Defense to sumbit a report to 
     Congress that includes recommended legislation to restore tax 
     deductibility of nonreimbursable expenses incurred by members 
     of the reserve components in conjunction with military 
     service.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Authority to pay transient housing charges for members 
         performing active duty for training (sec. 1252)
       The House bill contained a provision (sec. 1252) that would 
     authorize reimbursement of housing service charges incurred 
     by reserve component personnel while participating in active 
     duty training. It would authorize the reserve component 
     personnel participating in active duty training to stay in 
     contract quarters at no expense to the member.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that strikes the 
     authority for reserve component personnel participating in 
     active duty training to stay in contract quarters.
       The conferees believe that military personnel should use 
     on-base transient lodging facilities when training or on 
     temporary duty away from their home station. The conferees 
     direct the Secretary of Defense to review the current 
     policies and practices concerning use of on-base facilities 
     and provision of contract lodging and to report the results 
     of that review, including any recommended legislative 
     changes, to the Committee on Armed of the Senate and the 
     Committee on National Security of the House of 
     Representatives not later than March 31, 1997.
     Sense of Congress concerning quarters allowance during 
         service on active duty for training (sec. 1253)
       The House bill contained a provision (sec. 1253) that would 
     express the sense of the Congress that members of the reserve 
     components should receive appropriate quarters allowances 
     during periods of service on active duty for training.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Sense of Congress concerning military leave policy (sec. 
         1254)
       The House bill contained a provision (sec. 1254) that would 
     express the sense of the Congress that military leave 
     policies pertaining to members of the reserve components in 
     effect upon enactment of the National Defense Authorization 
     Act for Fiscal Year 1997 should not be changed.
       The Senate amendment contained no similar provision.
       The Senate recedes.
       The conferees intend that military leave referred to in 
     this provision is the non-chargeable leave available to 
     civilian employees of federal, state or local government 
     agencies while these employees are participating in active 
     duty for training.
     Reserve Forces Policy Board (sec. 1255)
       The House bill contained a provision (sec. 1255) that would 
     commend the Reserve Forces Policy Board for its good work as 
     an independent body that provides advice to the Secretary of 
     Defense on reserve component matters.
       The Senate amendment contained a provision (sec. 1054) that 
     would correct references in title 10, United States Code, 
     pertaining to the annual report of the Armed Forces Policy 
     Board and specify that the annual report shall be a separate 
     report transmitted to the Congress by the Secretary of 
     Defense in conjunction with the Secretary's annual report.
       The Senate recedes with an amendment that would combine the 
     two provisions.
     Report on parity of benefits for active duty service and 
         reserve service (sec. 1256)
       The House bill contained a provision (sec. 1256) that would 
     require the Secretary of Defense to submit a report to the 
     Congress providing recommendations, where appropriate,

[[Page H9305]]

     to reduce disparities in pay and benefits that occur between 
     active component members and reserve component members as a 
     result of eligibility based on length of time on active duty.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Information on proposed funding for the Guard and Reserve 
         components (sec. 1257)
       The Senate amendment contained a provision (sec. 1055) that 
     would require the Secretary of Defense to specify, in each 
     year of the Future-Years Defense Plan, the estimated 
     expenditures and proposed appropriations for the procurement 
     of equipment and for military construction for each of the 
     Guard and Reserve components.
       The House bill contained no similar provision.
       The House recedes.

              Title XIII--Arms Control and Related Matters


                       items of special interest

     Implementation of arms control agreements
       The budget request included $282.3 million in procurement, 
     operation and maintenance, and research and development in 
     the defense and military service accounts for the 
     implementation of arms control agreements. The budget request 
     for these accounts is based on anticipated dates of 
     implementation of the various arms control agreements and 
     treaties.
       The conferees agree to a $24.0 million reduction to the 
     budget request due to changes in the anticipated dates of 
     implementation of the various arms control agreements and 
     treaties. The reductions are as follows: $14.0 million from 
     the operation and maintenance account for the On-Site 
     Inspection Agency (OSIA); $2.0 million from weapons 
     procurement, Navy; $7.0 million from operation and 
     maintenance, Army; and $1.0 million from operation and 
     maintenance, Air Force.
       The conferees agree that the Department of Defense shall 
     keep the Congress informed on the status of the OSIA mission 
     to implement Annex 1-B of the General Framework for Peace in 
     Bosnia and Herzegovina Agreement (known as the Dayton 
     Agreement), and any impact this mission may have on the 
     ability of OSIA to conduct its other arms control inspection 
     responsibilities.
       Additionally, the conferees reiterate the concerns that 
     were expressed in the statement of managers in the conference 
     report accompanying the National Defense Authorization Act 
     for Fiscal Year 1996 (Public Law 104-106) with regard to 
     limiting the expenditure of funds to provide reimbursement 
     for arms control implementation inspection costs borne by the 
     inspected party to a treaty or agreement. As expressed in the 
     statement of managers, funds may only be expended if the 
     Congress has been notified 30 days in advance of an agreement 
     by the President to a policy or policy agreement, and that 
     policy or policy agreement does not modify any obligation 
     imposed by the arms control agreement. Currently, the 
     Congress is aware of only two such policy agreements that 
     would reimburse Belarus, Kazakhstan, and Ukraine for the 
     costs of U.S. inspections conducted within those states. The 
     conferees understand that those reimbursements occur on a 
     six-month basis after the inspections have been conducted. 
     Those policy agreements are with regard to the Intermediate-
     Range Nuclear Forces (INF) Treaty and the Strategic Arms 
     Reduction Treaty (START), concluded in May 1994 and February 
     1995.
       Once again, the conferees express their concern that arms 
     control consultative commissions are being used as a 
     mechanism to make substantive changes or modifications to 
     arms control treaties and agreements that should be brought 
     to the Senate for its review and subsequent advice and 
     consent. There may be very good reasons for changes in 
     implementation of specific arms control treaties or 
     agreements. However, if a change or modification to the 
     treaty or agreement would result in a substantive change to 
     the understanding under which the Senate provided its advice 
     and consent prior to ratification, the Congress should be 
     consulted about the recommended change or modification in 
     advance of any agreement in the consultative commissions, and 
     must provide its subsequent agreement to the change or 
     modification.
       The conferees support the ratification and full 
     implementation by all parties of the Chemical Weapons 
     Convention (CWC), as negotiated. However, the conferees 
     remain concerned that Russia continues to engage in chemical 
     weapons activities inconsistent with the accord. In addition, 
     Iran, a signatory to the convention, has been characterized 
     by one U.S. official as having `'the most active chemical 
     weapons program'' in the Third World. Further, a number of 
     states that possess active chemical weapons programs, such as 
     Libya, are not signatories to the accord. For example, the 
     Secretary of Defense and the Director of Central Intelligence 
     have confirmed that Libya is engaged in the construction of 
     an underground chemical weapons facility carved into a 
     mountain near Tarhunah. This extensive project demonstrates 
     the Libyan commitment to the acquisition of a significant 
     chemical weapons capability and raises questions about the 
     ability of arms control agreements like the CWC to restrain 
     the rogue regimes from acquiring these types of weapons of 
     terror.
       With regard to the negotiations on a comprehensive test 
     ban, many experts believe that a Comprehensive Test Ban 
     Treaty (CTBT) is unlikely to be effectively verifiable. 
     Countries intent on cheating could identify and implement 
     evasive measures that would make it virtually impossible for 
     U.S. sensors to detect low-yield tests. This thesis is given 
     additional credibility by reports that the Russians may have 
     recently conducted a nuclear test, in violation of their 
     self-imposed moratorium, at Novaya Zemlya.
       The conferees support the budget request for arms control 
     implementation, which includes $26.7 million for research, 
     development, test and evaluation of technologies to aid in 
     the detection of nuclear tests. As discussed elsewhere in the 
     statement of mangers, the conferees recommend $6.5 million 
     for basic research on seismic nuclear monitoring, which could 
     be used to detect low-yield nuclear tests.

                                   FY 1997 ARMS CONTROL IMPLEMENTATION BUDGET                                   
----------------------------------------------------------------------------------------------------------------
                  Account                                  Program                Request     Recomm    Rec auth
----------------------------------------------------------------------------------------------------------------
WPN........................................  Arms control compliance...........     14.840     -2.000     12.840
OPAF.......................................  Spares & repairs..................      0.207      0.000      0.207
PDA........................................  OSIA..............................      3.286      0.000      3.286
RDT&E, AF..................................  Arms control implementation.......     26.786      0.000     26.786
RDT&E, DA..................................  Ver tech dem, DNA (603711)........     26.199      0.000     26.199
O&M, Army..................................  ..................................     37.255     -7.000     31.255
O&M, Navy..................................  ..................................     35.402      0.000     35.402
O&M, AF....................................  ..................................     29.331     -1.000     28.331
O&M, DA....................................  OSIA..............................    109.030    -14.000     95.030
                                                                                --------------------------------
      Total................................  ..................................    282.336    -24.000    258.336
----------------------------------------------------------------------------------------------------------------

                         LEGISLATIVE PROVISIONS

   Subtitle A--Arms Control, Counterpro- liferation Activities, and 
                            Related Matters


                     LEGISLATIVE PROVISIONS ADOPTED

     Extension of counterproliferation authorities (sec. 1301)
       The House bill contained a provision (sec. 1301) that would 
     extend the authority of the Department of Defense to provide 
     support to the United Nations Commission on Iraq (UNSCOM) 
     through the end of fiscal year 1997.
       The Senate amendment contained a similar provision (sec. 
     1043) that would extend the authority of the Department of 
     Defense to provide support to UNSCOM through the end of 
     fiscal year 1998.
       The Senate recedes with an amendment that would extend the 
     authority of the Department of Defense to provide support to 
     UNSCOM through the end of fiscal year 1997. Additionally, the 
     conferees agree to a provision that would provide the 
     Department with authority to exceed the levels authorized in 
     fiscal year 1997 for DOD support to UNSCOM in the event of a 
     significant unforeseen development. In that event, the 
     Secretary of Defense would be required to notify the 
     congressional defense committees in writing, prior to 
     providing assistance that would exceed the levels authorized 
     for DOD support. However, if the Secretary of Defense 
     determines that prior notification of such action is not 
     possible, he must notify the congressional defense committees 
     of his actions no later than 15 days after the date the 
     additional assistance was provided.
     Limitation on retirement or dismantlement of strategic 
         nuclear delivery systems (sec. 1302)
       The House bill contained a provision (sec. 1302) that would 
     prohibit the use of funds appropriated to the Department of 
     Defense during fiscal year 1997 for retiring or dismantling 
     any B-52H bombers, Trident ballistic missile submarines, 
     Minuteman III intercontinental ballistic missiles (ICBMs), or 
     Peacekeeper ICBMs.
       The Senate amendment contained a similar provision (sec. 
     1062) that would prohibit the use of funds during fiscal year 
     1997 for the retirement of B-52H bombers, Trident ballistic 
     missile submarines, Minuteman III intercontinental ballistic 
     missiles, or Peacekeeper intercontinental ballistic missiles, 
     or preparing to retire or dismantle such systems. The 
     provision would allow the Secretary of Defense to waive the 
     funding restrictions on retiring or dismantling strategic 
     nuclear delivery systems, other than for B-52H bombers, to 
     the extent necessary to implement the START II Treaty.
       The House recedes with an amendment that would limit the 
     obligation of funds during fiscal year 1997 for early 
     deactivation of

[[Page H9306]]

     U.S. strategic nuclear delivery systems until 30 days after 
     the date on which the President submits to Congress a report 
     concerning such actions. The conferees note that discussions 
     have been held between the governments of the United States 
     and the Russian Federation regarding an agreement on early 
     deactivations of strategic nuclear weapons and/or strategic 
     nuclear delivery systems, once the START II Treaty has 
     entered into force. However, the conferees have not been 
     given information about the substance of these discussions or 
     negotiations.
       In order to retain 94 B-52H aircraft in an operational 
     status (28 in attrition reserve), the conferees recommend an 
     increase of $42.9 million in Operation and Maintenance, Air 
     Force. Of the amounts available in Aircraft procurement, Air 
     Force, $42.7 million shall be available for B-52H aircraft 
     modifications. Of the amounts available in Military 
     Personnel, Air Force, $3.3 million shall be available for 
     support of the 28 attrition reserve aircraft. In making these 
     recommendations, the conferees do not intend to alter the Air 
     Force's ongoing effort to consolidate B-52 squadrons. The 
     conferees also do not intend to preclude long-range pre-
     planning, design, or evaluation efforts to allow the Navy and 
     Air Force to be ready to execute various retirement and 
     dismantlement options in an efficient manner.
     Strengthening certain sanctions against nuclear proliferation 
         activities (sec. 1303)
       The Senate amendment contained a provision (sec. 1085) that 
     would authorize the President to impose Export-Import Bank 
     sanctions against specific persons or entities that knowingly 
     aid or abet countries to acquire nuclear weapons, or nuclear 
     materials for such weapons, by amending the Export-Import 
     Bank Act of 1945 (12 U.S.C. 635(b)(4)).
       The House bill contained no similar provision.
       The House recedes with a technical and clarifying 
     amendment.
       The global spread of nuclear weapons constitutes one of the 
     gravest threats to the national security of the United States 
     and that our friends and allies. The persistent and ever-
     changing nature of this threat, together with the numerous 
     pathways available to countries to acquire these weapons, 
     require both the Congress and the Executive Branch to ensure 
     that the United States possesses tools, including necessary 
     statutes, to combat this threat.
       Current law requires the denial of Export-Import Bank 
     credits: to finance goods destined to countries that violate 
     safeguards or a U.S. nuclear agreement, to any non-nuclear 
     weapon state that has detonated a nuclear weapon or device, 
     and, to any country that has willfully aided or abetted a 
     non-nuclear weapon state to acquire or develop a nuclear 
     weapon.
       In 1996, a Chinese government-owned entity transferred 
     sensitive uranium enrichment technology to Pakistan. This 
     action raised the possibility that several billion dollars of 
     Export-Import Bank-financed credits for U.S. exports to China 
     would be denied. However, the specific entity, the China 
     Nuclear Energy Industry Corporation (CNEIC), escaped 
     sanctions under current law because the administration judged 
     that current law, which prescribes sanctions only against a 
     ``country'' that willfully aids and abets proliferation, does 
     not authorize sanctions against a person or entity, such as 
     the CNEIC.
       The conferees agree that enabling the President to target 
     sanctions against specific proliferators that are not 
     countries will provide important additional options to the 
     President and thereby strengthen the U.S. ability to use 
     sanctions as a tool to discourage future business with 
     enterprises that knowingly promote the global spread of 
     nuclear weapons and materials.
     Authority to pay certain expenses relating to humanitarian 
         and civic assistance for clearance of landmines (sec. 
         1304)
       The Senate amendment contained a provision (sec. 1006) that 
     would allow funds appropriated to the overseas humanitarian, 
     disaster, and civic assistance program to be used to pay for 
     the travel, transportation, and subsistence expenses of 
     Department of Defense personnel providing humanitarian 
     demining assistance. The provision would also allow for the 
     purchase of supplies, services, and equipment to be used in 
     providing such assistance and the transfer of this equipment 
     and supplies to a foreign country in furtherance of the 
     Department's landmine clearance program. The cost of 
     equipment and supplies transferred, or services hired to 
     support Department of Defense humanitarian demining 
     deployments, may not exceed $5.0 million in any given fiscal 
     year.
       The House bill contained a similar provision (sec. 1304).
       The House recedes.
     Report on military capabilities of People's Republic of China 
         (sec. 1305)
       The House bill contained a provision (sec. 1305) that would 
     require an unclassified report and a classified report be 
     submitted to Congress, no later than February 1, 1997, on the 
     potential for, and likelihood of, the People's Liberation 
     Army pursuing modernization of its military capabilities.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Presidential report regarding weapons proliferation and 
         policies of the People's Republic of China (sec. 1306)
       The House bill contained a provision (sec. 1048) that would 
     express the concerns of the Congress with regard to the 
     transfer by China to Pakistan of sophisticated equipment 
     important to the development of nuclear weapons in Pakistan, 
     China's compliance with nuclear proliferation regimes, and 
     the decision of the United States not to impose sanctions 
     against China for its transfers of equipment to Pakistan. The 
     provision would express the sense of the Congress that the 
     President should not have decided that the evidence of 
     China's actions was not sufficient to warrant sanctions. The 
     provision would also require the President to report to 
     Congress on the administration's response to China's transfer 
     of equipment to Pakistan, on specific information related to 
     the justification for the President's determination not to 
     enforce sanctions against China, and on subsequent actions 
     taken by the United States to enforce compliance with 
     nonproliferation and export control regimes.
       The Senate had no similar provision.
       The Senate recedes with an amendment that would express 
     congressional concerns regarding China's transfer of 
     assistance to Iran and Pakistan that could contribute to the 
     manufacture of nuclear weapons; transfer of nuclear weapons 
     technology and assistance, as well as the transfer of M-11 
     missiles, to Pakistan; and China's compliance with 
     proliferation regimes such as the nuclear Nonproliferation 
     Treaty and the Missile Technology Control Regime (MTCR). The 
     provision would also require the President to submit a report 
     to Congress within 60 days of enactment of this Act regarding 
     the transfer of nuclear weapons technology and assistance, as 
     well as their means of delivery, by China to Pakistan, 
     subsequent actions taken by the President to express concern 
     with China's compliance with nuclear proliferation regimes, 
     and information related to the specific justification by the 
     Secretary of State that there was no sufficient basis for 
     imposing sanctions against China.
     United States-People's Republic of China Joint Defense 
         Conversion Commission (sec. 1307)
       The House bill contained a provision (sec. 1306) that would 
     prohibit obligation or expenditure of fiscal year 1997 funds 
     for activities associated with the United States-People's 
     Republic of China Joint Defense Conversion Commission until 
     Congress receives reports required by section 1343 of the 
     National Defense Authorization Act for Fiscal Year 1996 
     (Public Law 104-106).
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Sense of the Congress concerning export control (sec. 1308)
       The Senate amendment contained a provision (sec. 1046) that 
     would express the sense of the Senate that an international 
     export control regime is critically important; that agreement 
     on an international export control regime should be a top 
     priority of the United States; that the United States should 
     encourage the adoption by friends and allies of a commodity 
     control list similar to the U.S. list; that enforcement 
     activities should be strengthened; and, that the United 
     States should use unilateral controls.
       The House bill contained no similar provision.
       The House recedes with a technical and clarifying 
     amendment.
       During the Cold War, the Coordinating Committee for 
     Multilateral Export Controls (COCOM) regime assisted the 
     North Atlantic Treaty Organization (NATO) in maintaining a 
     qualitative military edge over the Warsaw Pact. However, in 
     the post-Cold War era, while allies have a strong interest in 
     coordinating exports, they have rejected efforts to implement 
     restrictive procedures, such as those used in COCOM, to 
     ensure the restriction of exports of militarily significant 
     dual use technologies and commodities.
       Dual-use technologies and commodities are civilian items 
     which have military application; they are not munitions. The 
     United States controls the export of its dual use 
     technologies and commodities for national security, foreign 
     policy, and short supply purposes. The legislative framework 
     that controls the exports of these dual use items is the 
     Export Administrative Act (EAA).
       The world has changed dramatically since 1988 (the last 
     time the Export Administration Act (EAA) was revised). COCOM 
     coordinated NATO restrictions on exports of conventional 
     weapons and related dual use goods to communists countries, 
     but was disbanded in March 1994. To date, the 
     administration's effort to negotiate an effective successor 
     regime to COCOM, which would restrict exports to targeted 
     countries (Iran, Iraq, Libya and North Korea) from former 
     COCOM members and new members from neutral and eastern 
     European countries, has failed.
       Additionally, the Export Administration Act (EAA) expired 
     in August 1994 and new legislation has not been adopted by 
     Congress. Currently, the President's authority to control the 
     export of dual use technologies is exercised under Executive 
     Order 12938. Executive Order 12938 declared a national 
     emergency with respect to the threat posed to U.S. national 
     security by the proliferation of weapons of mass destruction. 
     Under this executive order the President can enforce most 
     export controls on dual use technologies and commodities that 
     would contribute to the proliferation of weapons of mass 
     destruction. The executive order, however does not provide 
     full enforcement authority.

[[Page H9307]]

       The capability to build weapons of mass destruction (WMD), 
     including nuclear, chemical and biological weapons, and 
     missiles to deliver WMD, is spreading. Without adequate 
     export controls on sensitive dual use technologies and 
     commodities, their export could enable an adversary to 
     design, develop, test, produce, stockpile or use weapons of 
     mass destruction, missile delivery systems, and other 
     significant military capabilities.
       The availability of sensitive military technologies to 
     countries, without sufficient safeguards to ensure that these 
     technologies cannot be transferred to a third country (which 
     could be a rogue nation), remains a fundamental concern to 
     the United States and should be eliminated through 
     deterrence, negotiations, and other appropriate means.
       Export controls remain part of a comprehensive approach 
     that effectively responds to U.S. national security 
     interests. The United States should continue to work with its 
     friends and allies to negotiate an agreement to restrict 
     exports of dual use technologies and commodities to foreign 
     countries that threaten U.S. national security, 
     nonproliferation, or foreign policy interests.
     Sense of Congress concerning assisting other countries to 
         improve security of fissile material (sec. 1310)
       The House bill contained a provision (sec. 1054) that would 
     express the sense of Congress that it is in the national 
     interest of the United States to take actions to assist other 
     countries in securing and accounting for plutonium and highly 
     enriched uranium from dismantled nuclear weapons.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Review by Director of Central Intelligence of National 
         Intelligence Estimate 95-19 (sec. 1311)
       The House bill contained a provision (sec. 1308) that would 
     direct the Director of Central Intelligence (DCI) to review 
     the underlying assumptions and conclusions of the November, 
     1995, National Intelligence Estimate on ``Emerging Missile 
     Threats to North America During the Next 15 Years,'' to 
     convene a panel of independent, non-governmental experts, and 
     to report the panel's findings to Congress, along with the 
     DCI's comments.
       The Senate amendment contained no similar provision.
       The Senate recedes.

 Subtitle B--Commission to Assess the Ballistic Missile Threat to the 
                             United States


                     legislative provisions adopted

     Commission to assess the ballistic missile threat to the 
         United States (secs. 1321-1329)
       The House bill contained provisions (secs. 1321-1329) that 
     would establish a commission to be known as the ``Commission 
     to Assess the Ballistic Missile Threat to the United 
     States.'' The commission's members would be private citizens 
     with knowledge and expertise in the political and military 
     aspects of proliferation of ballistic missiles and the 
     ballistic missile threat to the United States, and would have 
     access to the resources and information of the intelligence 
     community necessary to carry out their responsibilities. The 
     commission would consist of nine members appointed by the 
     Director of Central Intelligence. Consistent with the 
     consultative nature of the appointment process used by the 
     Defense Base Closure and Realignment Commission (Public Law 
     101-510), three members would be chosen in consultation with 
     the Speaker of the House of Representatives, three members 
     would be chosen in consultation with the Majority Leader of 
     the Senate, and three members would be chosen in consultation 
     with the minority leaders of the House and Senate.
       The Senate amendment contained no similar provision.
       The Senate recedes.


                   LEGISLATIVE PROVISIONS NOT ADOPTED

     Certification required before observance of moratorium on use 
         by armed forces of antipersonnel landmines
       The House bill contained a provision (sec. 1303) that would 
     require the Secretary of Defense, after consultation with the 
     Chairman of the Joint Chiefs of Staff, to certify to Congress 
     that a moratorium on the use of antipersonnel landmines would 
     not adversely affect the ability of U.S. armed forces to 
     defend against attack and that effective substitutes for 
     antipersonnel landmines exist, prior to implementation of 
     such a moratorium.
       The Senate amendment contained no similar provision.
       The House recedes with the understanding that further 
     legislation on a landmine moratorium will not be introduced 
     or enacted in the remainder of this Congress.
       The conferees support efforts to minimize and eliminate 
     post-combat civilian casualties, and note that the United 
     States has been the global leader in working toward this 
     objective. U.S. military forces use non-self-destructing 
     landmines only along internationally recognized borders or in 
     demilitarized zones within perimeter-marked areas that are 
     monitored by military personnel and protected by adequate 
     means to ensure the exclusion of civilians.
       The conferees note the announcement by the President on May 
     16, 1996, regarding U.S. military use of antipersonnel 
     landmines, that is, to cease immediately the use of non-self-
     destructing landmines, except for training purposes and 
     deployment along the demilitarized zone in Korea; and, with 
     regard to self-destructing antipersonnel landmines, a 
     commitment to cease the use of self-destructing antipersonnel 
     landmines, when an international agreement is reached, with 
     exceptions for training and in Korea.

         TITLE XIV--DEFENSE AGAINST WEAPONS OF MASS DESTRUCTION

     Cooperative threat reduction (CTR) program, domestic 
         emergency assistance programs and programs for the 
         defense against weapons of mass destruction (secs. 1401-
         1505)
       The House bill contained provisions (sec. 1101-1105) that 
     would: authorize $302.9 million for the Cooperative Threat 
     Reduction (CTR) program, a $25.0 million reduction to the 
     budget request; would specify CTR programs; allocate fiscal 
     year 1997 funding for the various CTR programs and 
     activities; prohibit the use of CTR funds for specific 
     purposes; prohibit the obligation of CTR funds until various 
     reports are submitted to Congress; and make fiscal year 1997 
     CTR funds available for three fiscal years. Additionally, the 
     House report (H. Rept. 104-563) encouraged the Secretary of 
     Defense to report to the Congress by September 30, 1996, an 
     assessment of the advisability of the Department of Defense's 
     establishing a program for enhancing the capability of the 
     Department to assist law enforcement agencies in responding 
     to terrorism or natural disasters involving chemical or 
     biological agents and recommended an increase of $12.0 
     million in PE 65160D to preserve the option of initiating 
     such a program in fiscal year 1997.
       The Senate amendment would fully fund the budget request 
     for CTR at $327.9 million. In addition, the Senate amendment 
     contained provisions (secs. 1301-1356) that would increase 
     the overall budget request for defense operation and 
     maintenance by $150.0 million, and add $85.0 million to the 
     budget request for the Department of Energy to establish a 
     comprehensive program to improve U.S. capabilities to deal 
     with the use, or threatened use, of weapons of mass 
     destruction. In that regard, the amendment would expand the 
     scope of the DOD CTR program and the DOE arms control and 
     materials, protection, control and accountability programs to 
     include additional activities, especially assistance to the 
     independent states of the former Soviet Union. Of the $235.0 
     million budget increase for DOD and DOE, $80.0 million would 
     be authorized for the establishment of a DOD and DOE domestic 
     emergency assistance program; $59.0 would be authorized for 
     domestic and international border security assistance DOD CTR 
     and DOE materials, protection, control and accountability 
     activities would be increased by $94.0 million; and $2.0 
     million would be authorized for research activities of the 
     proliferation coordinator.
       Additionally, the provision would provide the President 
     with more specific authorities than exist under current law 
     by authorizing the limited use of U.S. military forces to 
     assist the Department of Justice in domestic emergency 
     situations involving the terrorist use of WMD and by amending 
     the International Emergency Economic Powers Act.
       The House recedes with an amendment to the Senate 
     provisions.
       The Senate recedes with an amendment to the House 
     provisions.
       Since the end of the Cold War, materials and technologies 
     related to weapons of mass destruction--nuclear, 
     radiological, chemical, and biological weapons--have become 
     increasingly more available to rogue states, terrorist 
     groups, and unstable individuals. Controls over nuclear 
     materials in the former Soviet Union continue to require 
     significant improvement. Easy access to dual-use materials 
     and technologies to fabricate chemical and biological weapons 
     make the proliferation of these weapons arguably the most 
     urgent and serious threat the United States faces today.
       The United States government must improve and make 
     comprehensive the way it addresses this threat. To this end, 
     the conferees agree to a series of provisions that address 
     all aspects of the threat of the proliferation of weapons of 
     mass destruction. The conferees agree to recommend and 
     additional $201.0 million to the budget to address this 
     issue. These increased funds would: increase the budget 
     request for the Cooperative Threat Reduction (CTR) program by 
     $37.0 million; authorize a $10.0 million increase to the 
     budget request for the counterproliferation support program; 
     authorize $30.0 million for U.S. and international border 
     security activities; add $65.0 million for the establishment 
     of a domestic emergency response program; and add $57.0 for 
     DOE materials, protection, control and accountability.
     Domestic Preparedness
       Enhancing the nation's ability to prevent, and, if 
     necessary, to respond to a terrorist incident involving 
     nuclear, radiological, chemical, or biological weapons or 
     materials is the cornerstone of this program. The conferees 
     note that an interagency group, composed of the Federal 
     Response Plan signatory agencies led by the Federal Emergency 
     Management Agency (FEMA) completed and forwarded to the 
     President on July 1, 1996, a report titled ``Consequences 
     Management for Nuclear, Biological, and Chemical (NBC) 
     Terrorism.'' The report documents the inadequacy of the 
     Federal Response Plan to deal with NBC terrorist incidents 
     and makes specific recommendations regarding capability 
     enhancements. The conferees agree to a provision (sec. 1411) 
     that would require the

[[Page H9308]]

     President to take immediate action to enhance the capability 
     of the Federal Government to respond to such incidents and to 
     provide enhanced support to improve the capabilities of State 
     and local emergency response and law enforcement agencies to 
     respond to such incidents. The provision would further 
     require the President to provide to the Congress by January 
     31, 1997, a report containing an assessment of such 
     capabilities, improvements required, and measures that should 
     be taken to achieve such improvements, including additional 
     resources and legislative authority that might be necessary.
       The conferees agree to recommend $50.0 million for the 
     establishment of a domestic emergency assistance program for 
     the Department of Defense to immediately begin sharing its 
     unique expertise, experience, and equipment in dealing with 
     chemical and biological weapons and materials with local 
     emergency first respondents (firemen, policemen, and medical 
     workers).
       The conferees expect that the Secretary of Defense will 
     work expeditiously with the Secretary of Health and Human 
     Services in providing DOD resources and expertise to the 
     Office of Emergency Preparedness for the formation of 
     emergency medical teams that are trained and equipped to 
     handle incidents involving weapons of mass destruction.
       The conferees agree to provide $15.0 million for DOD to 
     conduct interagency exercises that will focus on testing and 
     improving the U.S. Government's ability to respond to 
     incidents involving weapons of mass destruction.
       The conferees have agreed to an additional provision (sec. 
     1414) that would require DOD to establish at least one 
     Chemical-Biological Emergency Response Team for rapid 
     response to domestic terrorism. The conferees expect that 
     such teams would be similar in concept to the Nuclear 
     Emergency Search Team and Accident Response Groups that are 
     maintained by DOE for response to a nuclear incident. The 
     conferees note in the joint DOD/DOE report to the Congress, 
     ``Preparedness and Response to a Nuclear, Radiological, 
     Biological, or Chemical Terrorist Attack,'' dated June 13, 
     1996, that the DOD is attempting to establish such a 
     capability. The conferees note that many of the capabilities 
     sought for such teams are already present in the Army's 
     Technical Escort Unit, Edgewood Research, Development, and 
     Engineering Center, and Chemical Defense and Infectious 
     Disease Medical Research Institutes. The conferees also note 
     the Counterproliferation Program Review Committee's ``Report 
     on Activities and Programs for Countering Proliferation'', 
     dated May 1996, which states that U.S. Marine Forces, 
     Atlantic was scheduled to activate a Department of the Navy/
     Marine Corps Chemical/Biological Incident Response Force on 
     June 1, 1996, to respond to chemical and biological incidents 
     (terrorist or otherwise) occurring on Naval installations and 
     Department of State legations worldwide. The conferees 
     understand that the unit has been activated and is now in 
     training.
       In section 1416, the conferees agree to provide authority, 
     very narrowly defined and carefully constructed, for the 
     President and the Attorney General to request military 
     support to local authorities in incidents involving chemical 
     and biological weapons. This authority is in addition to the 
     authorities otherwise provided in Chapter 18 of title 10, 
     U.S. Code. The conferees agree that the use of the military 
     in any emergency situation involving biological or chemical 
     weapons or materials should be limited both in time and scope 
     to dealing with the specific chemical or biological weapons-
     related incident.
       Finally, the conferees have included a provision (sec. 
     1417) that would require Federal Response Plan agencies to 
     develop and maintain an inventory of equipment and other 
     assets that could be made available to aid State and local 
     officials in search and rescue and other disaster management 
     and mitigation efforts associated with an emergency involving 
     weapons of mass destruction, and would require FEMA to 
     maintain a comprehensive master list of the inventory. The 
     provision would also require FEMA to establish a data base on 
     chemical and biological agent and munitions characteristics 
     and safety precautions and to develop a system to provide 
     federal, State, and local officials access to the data base 
     and to the master inventory.
     Interdiction of weapons of mass destruction and related 
         materials
       This section focuses attention on enhancing our efforts at 
     interdicting and detecting nuclear, radiological, chemical, 
     and biological weapons and related materials, the next step 
     of protecting the United States against the threat posed by 
     the proliferation of weapons of mass destruction. The 
     conferees agree to recommend $15.0 million for the DOD to 
     assist the U.S. Customs Service in interdicting these 
     materials before they enter the United States.
       As mentioned above, the conferees also agree to an increase 
     of $10.0 million to the DOD counterproliferation support 
     program and an increase of $17.0 million to the DOE 
     nonproliferation and verification research and development 
     program to conduct research and development of technical 
     means for detecting the presence, transportation, production, 
     and use of weapons of mass destruction and related materials 
     and technologies.
       Additionally, the conferees agree to provisions that would 
     amend the International Emergency Economic Powers Act to 
     provide penalties to cover attempts to import or export 
     weapons of mass destruction and related materials, and would 
     express the sense of the Congress that criminal penalties for 
     proliferation-related activities should be increased.
       Finally, the conferees agree to recommend $15.0 million for 
     DOD training and assistance to customs services and border 
     guards in the former Soviet Union, the Baltic states, and 
     Eastern Europe in detecting and interdicting the smuggling of 
     weapons of mass destruction and related materials. This 
     program is intended to be separate and distinct from the 
     existing DOD/FBI counterproliferation assistance program, 
     which focuses largely on training law enforcement officials 
     in the interdiction of these materials. The conferees believe 
     that law enforcement and Customs agents, and border guards, 
     must be familiar with proliferation issues if any 
     counterproliferation effort is to be viable. While there may 
     be some beneficial overlap between the DOD/FBI effort and the 
     DOD/Customs program envisioned in this legislation, it is the 
     view of the conferees that the most effective way to reach 
     and establish productive relations is through expanding 
     relations between analogous counterparts. The conferees 
     expect the Secretary of Defense to make DOD equipment and 
     related materials and technologies available to the 
     Commissioner of Customs for use in detecting and interdicting 
     the movement of weapons of mass destruction into the United 
     States to the extent authorized under existing law. The 
     Secretary of Defense and the U.S. Customs Commissioner shall 
     provide to Congress a joint report on the scope and impact of 
     this program and an inventory of items provided under this 
     authority. This report should also include the extent to 
     which it will interface with the DoD/FBI effort.
     Control and disposition of weapons of mass destruction and 
         related materials threatening the United States
       With regard to the DOD budget request for the CTR program 
     and the DOE budget request for materials, protection, control 
     and accountability, the conferees agree to recommend 
     authority for a variety of programs that focus on assisting 
     the states of the former Soviet Union to better control and/
     or eliminate their stockpiles of weapons of mass destruction 
     and related materials. Programs include: $15.0 million for 
     DOE MPC&A activity; $10.0 million for DOD MPC&A activity; 
     $10.0 million for a DOE program to develop technologies 
     associated with improving the verification of nuclear warhead 
     dismantlement; $15.0 million for DOD activities related to 
     the dismantlement of chemical and biological weapons-related 
     facilities; $9.0 million for DOE's Lab-to-Lab program; and 
     $6.0 million for DOE to work with the Russian government in 
     enhancing the security of fissile material used for the 
     propulsion of Russian military and civilian ships.
       It is the view of the conferees that both DOE and DOD 
     should seek to expand these activities in the former Soviet 
     Union beyond nuclear activities in Russia, Ukraine, 
     Kazakhstan, and Belarus. While programs to date have 
     appropriately focused on the most pressing strategic 
     concerns, critical work remains to be done in combating the 
     threat of proliferation at a variety of sites in the other 
     states of the former Soviet Union where nuclear, chemical, 
     and biological weapons-related materials and technologies 
     continue to be vulnerable to proliferation.
       The conferees agree to transfer $10.0 million in DOD funds 
     to DOE for activities related to the conversion of several 
     Russian nuclear core reactors so they no longer produce 
     weapons-grade plutonium. It is the view of the conferees that 
     the Secretary of Defense should transfer these funds to the 
     Secretary of Energy expeditiously so that the Department of 
     Energy can continue to move forward on this program.
     Coordination of policy and countermeasures against 
         proliferation of weapons of mass destruction
       The conferees agree that the nation's overall coordination 
     of policy, efforts, and activities addressing the threat 
     posed by the increasing availability of nuclear, chemical, 
     and biological weapons, materials, and technology must be 
     improved. The conferees agree to a provision that would 
     direct the appointment by the President of a national 
     coordinator on proliferation within the Executive Office of 
     the President, to advise the President on nonproliferation 
     and related issues regarding terrorism and international 
     organized crime. The provision would establish a committee on 
     nonproliferation, to be chaired by the coordinator, and 
     composed of members of the Executive Branch who have 
     responsibilities for crisis and consequence management, 
     nonproliferation, and related issues. This committee will 
     review and coordinate programs, policies, and directives 
     related to the proliferation of weapons of mass destruction 
     and the threat they pose to our national security. The 
     conference agreement also requires the President, through the 
     committee on nonproliferation, to submit a comprehensive 
     report for carrying out this amendment.

[[Page H9309]]

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

          TITLE XVI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL


                         legislative provisions

  Subtitle A--Miscellaneous Matters Relating to Personnel Management, 
                          Pay, and Allowances


                     legislative provisions adopted

     Modification of requirement for conversion of military 
         positions to civilian positions (sec. 1601)
       The Senate amendment contained a provision (sec. 1101) that 
     would repeal the portion of section 1032 of the National 
     Defense Authorization Act for Fiscal Year 1996 that would 
     require the Secretary of Defense to convert 7,000 military 
     positions to civilian positions during fiscal year 1997.
       The House bill contained no similar provision.
       The House recedes with an amendment that would repeal the 
     requirement for the conversion of 7,000 military positions to 
     civilian positions during fiscal year 1997, contingent on the 
     Secretary of Defense's having certified to the Committee on 
     Armed Services of the Senate and the Committee on National 
     Security of the House of Representatives that the Department 
     of Defense has completed the conversion of 3,000 military 
     positions to civilian positions during fiscal year 1996, as 
     required by section 1032 of the National Defense 
     Authorization Act for Fiscal Year 1996.
       The certification shall include: (1) a description of the 
     types and grades of positions converted; (2) the distribution 
     of converted positions across the services and defense 
     agencies; (3) the extent to which any military positions 
     converted to civilian positions were vacant when converted; 
     (4) the extent to which any newly-converted civilian 
     positions remain vacant; (5) an analysis of the follow-on 
     assignment of those military personnel whose positions were 
     converted to civilian positions; (6) a discussion of any 
     costs associated with the required conversion; and (7) the 
     effect on operational readiness, if any, caused by the 
     required conversion.
     Retention of civilian employee positions at military training 
         bases transferred to national guard (sec. 1602)
       The House bill contained a provision (sec. 368) that would 
     require the Secretary of Defense to retain civilian employee 
     positions at installations being transferred to the National 
     Guard during fiscal year 1997 to provide transitional support 
     to active and reserve component training missions on the 
     installations.
       The Senate amendment contained a provision (sec. 1102) 
     that, while similar, did not specify that the transfer of an 
     installation to the National Guard had to occur in 1997 in 
     order for the provision to have effect.
       The Senate recedes with an amendment that would retain the 
     directive nature of the House provision while eliminating the 
     requirement that transfers occur in 1997.
     Clarification of applicability of certain management 
         constraints on major range and test facility base 
         structure (sec. 1603)
       The House bill contained a provision (sec. 508) that would 
     clarify that major range and test facility base activities 
     are covered by certain limitations on the use of end 
     strengths or other personnel management caps that are used to 
     reduce personnel levels or restrict funding for Federal 
     employees. The provision would also clarify that funding 
     available to major range and test facility base activities 
     includes both direct appropriated funds and funds provided by 
     major range and test facility customers.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Travel expenses and health care for civilian employees of the 
         Department of Defense abroad (sec. 1604)
       The Senate amendment contained a provision (sec. 1104) that 
     would authorize the Secretary of Defense, under certain 
     circumstances, to pay allowances and benefits to civilian 
     personnel serving overseas comparable to those paid to 
     members of other government agencies that routinely assign 
     personnel overseas.
       The House bill contained no similar provision.
       The House recedes.
     Travel, transportation, and relocation allowances for certain 
         former nonappropriated fund employees (sec. 1605)
       The Senate amendment contained a provision (sec. 1105) that 
     would authorize a nonappropriated fund employee to receive 
     the same travel, transportation, and relocation expenses 
     authorized for appropriated fund employees.
       The House bill contained no similar provision.
       The House recedes.
     Employment and salary practices applicable to Department of 
         Defense overseas teachers (sec. 1606)
       The Senate amendment contained a provision (sec. 1106) that 
     would permit the Secretary of Defense to reclassify General 
     Schedule professional educator positions as ``overseas 
     teachers'' compensable under the Overseas Teacher Pay and 
     Personnel Act.
       The House bill contained no similar provision.
       The House recedes.
     Employment and compensation of civilian faculty members at 
         certain Department of Defense schools (sec. 1607)
       The Senate amendment contained a provision (sec. 1107) that 
     would authorize the Asia-Pacific Center for Security Studies 
     and the English Language Center of the Defense Language 
     Institute to employ and compensate the civilian faculty, 
     including the Director and Deputy Director of the Asia-
     Pacific Center, in the same manner as the George C. Marshall 
     European Center for Security Studies and other Department of 
     Defense education facilities.
       The House bill contained no similar provision.
       The House recedes.
     Reimbursement of Department of Defense domestic dependent 
         school board members for certain expenses (sec. 1608)
       The Senate amendment contained a provision (sec. 1108) that 
     would authorize Department of Defense domestic dependent 
     school board members to be reimbursed for travel and 
     transportation expenses, program fees, and activity fees that 
     the Secretary of Defense determines reasonable and necessary 
     in the performance of their duties.
       The House bill contained no similar provision.
       The House recedes with an amendment that would include 
     lodging expenses among those expenses for which domestic 
     dependent school board members could be reimbursed.
     Modification of authority for civilian employees of 
         Department of Defense to participate voluntarily in 
         reductions in force (sec. 1609)
       The House bill contained a provision (sec. 336) that would 
     extend until September 30, 2001, the authority to allow 
     employees who are not affected by a reduction-in-force (RIF) 
     to volunteer to be RIF-separated in place of other employees 
     who are scheduled for RIF separation.
       The Senate amendment contained a similar provision (sec. 
     1109).
       The conference agreement includes this provision.
     Wage-board compensatory time off (sec. 1610)
       The house bill contained a provision (sec. 333) that would 
     provide federal managers of wage-board employees the same 
     flexibility to use compensatory time off afforded federal 
     managers of general schedule employees, by authorizing agency 
     heads to grant compensatory time off in lieu of overtime pay 
     under certain circumstances.
       The Senate amendment contained a similar provision (sec. 
     1110).
       The Senate recedes with an amendment that would preclude 
     agency heads from directly or indirectly forcing employees to 
     accept compensatory time off in lieu of pay for overtime 
     work.
     Liquidation of restored annual leave that remains unused upon 
         transfer of employee from installation being closed or 
         realigned (sec. 1611)
       The Senate amendment contained a provision (sec. 1111) that 
     would require, under certain circumstances, automatic 
     liquidation of annual leave restored under section 6304(d) of 
     title 5, United States Code.
       The House bill contained no similar provision.
       The House recedes.
     Waiver of requirement for repayment of voluntary separation 
         incentive pay by former Department of Defense employees 
         reemployed by the Government without pay (sec. 1612)
       The House bill contained a provision (sec. 332) that would 
     allow civilian employees who have previously received 
     separation or incentive pay to leave federal employment to 
     volunteer for government service without the loss of their 
     separation or incentive pay.
       The Senate amendment contained a similar provision (sec. 
     1112).
       The conference agreement includes this provision.
     Simplification of rules relating to the observance of certain 
         holidays (sec. 1613)
       The House bill contained a provision (sec. 334) that would 
     allow the head of an agency within the Department of Defense 
     to change the Federal day off from Monday to an alternative 
     day for those employees who would normally have Monday off 
     under a compressed work schedule.
       The Senate amendment contained a similar provision (sec. 
     1113).
       The Senate recedes.
       The conferees intend that when a Federal holiday falls on a 
     Monday and that day is a day off for certain employees, that 
     those employees will receive the next normal work day off. 
     The conferees do not intend that this authority would be used 
     to disrupt what would have been an extended weekend break by 
     forcing employees to take a mid-week day off.
     Revision of certain travel management authorities (sec. 1614)
       The House bill contained a provision (sec. 331) that would 
     provide Department of Defense (DOD) civilian personnel with 
     the flexibility to make more efficient lodging decisions 
     based on overall mission requirements by considering overall 
     travel costs.
       The Senate amendment contained a provision (sec. 1114) that 
     would repeal a reporting requirement and repeal the 
     prohibition on paying lodging expenses to DOD civilian 
     employees who do not use adequate government quarters when 
     they are available.
       The House recedes.
       The conferees believes that these and other provisions 
     related to travel reform can assist

[[Page H9310]]

     the DOD in its ongoing efforts to simplify the travel 
     management system and, in doing so, improve efficiency and 
     reduce costs associated with official travel.
       The conferees note, however, that the success or failure of 
     travel management initiatives will not depend on the 
     relaxation of the many detailed rules and regulations which 
     have governed travel management over the years. Rather, the 
     success or failure will be a direct reflection of the courage 
     and discipline with which executives and supervisors at every 
     level approach their individual responsibilities in 
     overseeing their own official travel and lodging decisions 
     and those of their subordinates. Official travel is not a 
     prerequisite of position to be exploited. Individual 
     responsibility and the effective stewardship of official 
     travel funds must be institutionalized as fundamental 
     management principles at all levels.
     Failure to comply with veterans' preference requirements to 
         be treated as a prohibited personnel practice (sec. 1615)
       The House bill contained a provision (sec. 1047) that would 
     make failure to take, recommend or approve any personnel 
     action involving a veteran's preference a prohibited 
     personnel practice.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Pilot programs for defense employees converted to contractor 
         employees due to privatization at closed military 
         installations (sec. 1616)
       The Senate amendment contained a provision (sec. 1121) that 
     would permit certain federal workers who accept employment 
     with a contractor in conjunction with a privatization 
     initiative, referred to as ``transferred'' employees, to 
     continue to accrue years of federal service for the purpose 
     of determining eligibility for federal retirement, but not 
     for determining the amount of the employees retirement 
     benefit.
       The House bill contained no similar provision.
       The House recedes with an amendment clarifying that the 
     facility must have been recommended for privatization in 
     place by the Base Realignment and Closure Commission.

    Subtitle B--Department of Defense Intelligence Personnel Policy


                     legislative provisions adopted

     Department of Defense intelligence personnel policy (secs. 
         1631-1635)
       The Senate amendment contained several provisions (sec. 
     1131-1134) that would provide new personnel management 
     authorities to the Secretary of Defense for managing the 
     civilian personnel in the DOD intelligence community.
       These provisions would authorize the Secretary of Defense 
     to: 1) establish Senior Executive Service (SES) positions in 
     the intelligence community without regard to individual 
     service or agency caps while retaining the overall DOD cap; 
     2) establish senior-level positions in the intelligence 
     community to provide upward mobility for individuals whose 
     career patterns and areas of expertise do not afford or 
     require the management experience required of an SES; 3) 
     establish term-limited non-competitive positions for periods 
     of up to two years to permit the rapid expansion or 
     contraction of portions of the workforce to meet evolving 
     needs; 4) terminate the employment of a member of the 
     intelligence community in the interests of the United States; 
     5) adjust the size, quality and skill mix of the intelligence 
     community workforce by allowing greater weight to be given to 
     performance and skill than is currently possible under 
     existing reduction-in-force rules.
       The Senate amendment also contained several provisions 
     (secs. 921, 924, and 925) that would provide personnel 
     management authorities to the Secretary of Defense for 
     managing the civilian personnel in the National Imagery and 
     Mapping Agency that are consistent with other authorities 
     affecting the defense intelligence community.
       The House bill contained no similar provision.
       The House recedes with an amendment that would consolidate 
     those provisions addressing the management of civilian 
     personnel of the defense intelligence community including 
     those assigned to the National Imagery and Mapping Agency.
       The conferees intend that the section concerning time-
     limited appointments be used for non-competitive appointments 
     to meet crisis or surge requirements. The conferees do not 
     intend to limit the temporary limited appointment or ``not-to 
     exceed'' authorities currently in effect.


                   LEGISLATIVE PROVISIONS NOT ADOPTED

     Phased retirement
       The House bill contained a provision (sec. 335) that would 
     authorize the Department of Defense to establish a pilot 
     program to encourage some civilians to retire in stages by 
     changing current annuity offset rules.
       The Senate amendment contained no similar provision.
       The House recedes.

               Title XVII--Federal Employee Travel Reform

     Federal Employee Travel Reform (secs. 1701-1725)
       The Senate amendment contained several provisions (secs. 
     1401-1434) that would reform federal travel policy to provide 
     employees who transfer in the interest of the government more 
     effective and efficient delivery of relocation services, 
     alleviate administrative burdens associated with travel and 
     employee relocations, and reduce travel and relocation costs.
       These provisions are the product of the Joint Financial 
     Management Improvement Program: a multi-agency task force 
     that includes the Office of Management and Budget; the 
     General Accounting Office; the Department of the Treasury; 
     and the Office of Personnel Management. The provisions would: 
     (1) provide authority to offer employees a choice of methods 
     of reimbursement for house-hunting trips and reimbursement 
     for subsistence expenses when lodged in temporary quarters; 
     (2) establish a cap on reimbursement of residence transaction 
     expenses based on a percentage of the price of a home; (3) 
     provide authority for reimbursement for property management 
     services expenses; (4) authorize the transportation of an 
     employee's privately owned vehicle within the continental 
     United States under certain circumstances; and (5) authorize 
     the use of home marketing incentives and other streamlining 
     initiatives.
       The House bill contained no similar provision.
       The House recedes.
       The conferees recognize that the Committee on Government 
     Reform and Oversight of the House of Representatives has been 
     active in seeking reform of federal travel processes and has 
     developed separate legislation that incorporates many of the 
     provisions in the conference agreement. In the legislation 
     being considered by the Committee on Government Reform and 
     Oversight of the House of Representatives, there are 
     significant new measures that warrant further attention and 
     review. One such provision would require the use of the 
     government-wide travel charge card program. The conferees 
     urge that executive branch agencies, when appropriate, use 
     their discretionary authority to maximize the use of the 
     travel charge card in order to maximize the rebate the 
     government receives for the purchases of travel and travel 
     related services.

     Title XVIII--Federal Charter for the Fleet Reserve Association

     Federal Charter for the Fleet Reserve Association (secs. 
         1801-1816)
       The Senate amendment contained provisions (sec. 1201-1216) 
     that would establish a Federal charter for the Fleet Reserve 
     Association.
       The House bill contained no similar provision.
       The House bill recedes with a technical amendment.


            Division b--military construction authorizations

     Overview
       The budget request for fiscal year 1997 included 
     $9,132,311,000 for military construction and family housing.
       The House bill would authorize $10,032,311,000 for military 
     construction and family housing.
       The Senate amendment would provide $9,832,711,000 for this 
     purpose.
       The conferees recommend authorization of apppropriations of 
     $9,982,311,000 for military construction and family housing, 
     including general reductions and termination of prior year 
     projects.
       The conferees are deeply concerned about the condition of 
     the military infrastructure and troubled by the shortfalls 
     evident in the administration's budget request for fiscal 
     year 1997 for military construction and military family 
     housing programs. The conferees note that the construction 
     and modernization of facilities and their upkeep and 
     maintenance are a critical component of military readiness, 
     which has been under funded in recent years. The conferees 
     are also mindful of the serious deficiencies in facilities 
     designed to support the quality of life of military personnel 
     and their families.
       From an operational and readiness perspective, shortfalls 
     in the construction and repair and maintenance accounts have 
     exacerbated problems in the facilities infrastructure. Needed 
     improvements to basic infrastructure have often been 
     deferred, leading to the creation of a steep backlog in 
     facilities, construction and maintenance. For example, 
     approximately 20 percent of the Army's facilities are 
     unsuitable, either due to deteriorated conditions or they are 
     unable to meet mission requirements. Additionally, the Army 
     lacks 30 percent of the facilities required to meet specific 
     mission requirements, making due with work-arounds that 
     impair efficiency. To cite another example, over two-thirds 
     of the Navy's piers were constructed during the second World 
     War. According to the Navy's estimates, by the year 2010, 
     only 20 percent of existing piers and wharves would 
     adequately be able to service the fleet.
       The condition of military housing for families and 
     unaccompanied personnel and other quality of life 
     infrastructure is in a similar state of deterioration. 
     According to the Defense Science Board Task Force on Quality 
     of Life, 62 percent of barracks and dormitories are currently 
     unsuitable and 64 percent of family housing units are in the 
     same condition. In spite of these serious deficiencies, that 
     administration's budget request fails to keep pace with 
     current levels of funding to support the construction of 
     barracks and dormitories. The budget request for fiscal year 
     1997 further proposes to reduce sharply the expenditure of 
     funds on new construction of military family housing and 
     improvements to existing family housing units. The 
     administration also proposes

[[Page H9311]]

     to reduce funding for basic maintenance of family housing.
       The conferees believe the administration's budget request 
     for military construction and military family housing 
     programs for fiscal year 1997, which is $1.56 billion below 
     the fiscal year 1996 request, is seriously under funded. The 
     conferees recommend an increase in new budget authority for 
     these programs of $850,000,000. Approximately 60 percent of 
     that amount is dedicated to a major quality of life 
     initiative. The conferees recommend an additional 
     $200,816,000 for the construction of new barracks and 
     dormitories and an additional $266,170,000 for the 
     construction of military family housing and improvements to 
     existing family housing units. The conferees also recommend 
     an additional $30,410,000 for the construction of child 
     development centers. The conferees reiterate their support 
     for the military housing privatization initiative authorized 
     in section 2801 of the Military Construction Authorization 
     Act of Fiscal Year 1996 (division B of Public Law 104-106) 
     and recommend an additional $10,000,000 to support both the 
     family housing and unaccompanied housing privatization 
     initiatives.
       The conferees remain concerned about the instability in 
     funding for the military construction and military family 
     housing programs contemplated by the current Future Years 
     Defense Plan. The conferees believe the serious backlog of 
     military construction requirements can no longer be deferred. 
     The conferees urge the Secretary of Defense to address the 
     need to reduce the backlog of military construction 
     requirements affecting the operational needs of the military 
     departments and to enhance those programs that directly 
     support improvements in the quality of life for military 
     personnel and their families.
       A tabular summary of the authorizations provided in 
     Division B for fiscal year 1997 follows:

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[[Page H9339]]

                            Title XXI--Army


                            fiscal year 1997

     Overview
       The House bill would authorize $2,037,653,000 for Army 
     military construction and family housing programs for fiscal 
     year 1997.
       The Senate amendment would authorize $1,913,297,000 for 
     this purpose.
       The conferees recommend authorization of appropriations of 
     $1,942,557,000 for Army military construction and family 
     housing for fiscal year 1997.


                       items of special interest

     Improvements Of Military Family Housing, Army
       The conferees recommend that, within authorized amounts for 
     improvements of military family housing and facilities, the 
     Secretary of the Army execute the following projects: 
     $16,000,000 for Whole Neighborhood Revitalization, Phase II 
     (228 units) at Fort Rucker, Alabama; $7,800,000 for family 
     housing improvements (48 units) at Fort Richardson, Alaska; 
     $8,600,000 for family housing improvements (52 units) at Fort 
     Wainwright, Alaska; $7,300,000 for family housing 
     improvements (120 units) at Stuttgart, Germany; $4,600,000 
     for family housing improvements (64 units) at Baumholder, 
     Germany; $8,200,000 for family housing improvements (136 
     units) at Mannheim, Germany; $9,600,000 for Whole 
     Neighborhood Revitalization, Phase III (102 units) at Fort 
     Campbell, Kentucky; $7,200,000 for family housing 
     improvements (250 units) at Fort Polk, Louisiana; and 
     $2,300,000 for family housing improvements (42 units) at 
     Tobyhanna Army Depot, Pennsylvania.


                         legislative provisions

                     legislative provisions adopted

     Land acquisition, National Ground Intelligence Center, 
         Charlottesville, Virginia (sec. 2105)
       The conferees include a provision that would authorize the 
     Secretary of the Army to acquire real property for the 
     National Ground Intelligence Center, Charlottesville, 
     Virginia. The acquisition would be contingent upon the 
     Secretary certifying to the congressional defense committees 
     that the acquisition of the property would provide the most 
     cost-effective means of securing a location for the National 
     Ground Intelligence Center.


                   legislative provisions not adopted

     Correction in authorized uses of funds, Fort Irwin, 
         California
       The House bill contained a provision (sec. 2105) that would 
     correct the authorized use of funds authorized for 
     appropriation in prior years for a military construction 
     project at Fort Irwin, California. The provision would permit 
     the use of previously authorized funds to construct a 
     heliport at Fort Irwin to support the National Training 
     Center.
       The Senate amendment contained no similar provision.
       The House recedes.

                            TITLE XXII--NAVY


                            fiscal year 1997

     Overview
       The House bill would authorize $2,303,173,000 for Navy 
     military construction and family housing programs for fiscal 
     year 1997.
       The Senate amendment would authorize $2,054,793,000 for 
     this purpose.
       The conferees recommend authorization of appropriations of 
     $2,213,731,000 for Navy military construction and family 
     housing for fiscal year 1997.
       The conferees agree to a general reduction of $12,000,000 
     in the authorization of appropriations for the Navy military 
     construction account. The general reduction is to be offset 
     by savings from favorable bids, reduction in overhead costs, 
     and cancellation of projects due to force structure changes. 
     The general reduction shall not cancel any military 
     construction authorized by title XXII of this Act.


                       items of special interest

     Improvements of Military Family Housing, Navy
       The conferees recommend that, within authorized amounts for 
     improvements of military family housing and facilities, the 
     Secretary of the Navy execute the following projects: 
     $6,600,000 for Whole House Revitalization, Phase I (160 
     units) at Naval Air Station Meridian, Mississippi; $5,900,000 
     for family housing improvements (1,257 units) at Marine Corps 
     Air Station Beaufort, South Carolina; $2,400,000 for Whole 
     House Revitalization (55 units) at Joint Reserve Base Fort 
     Worth, Texas; and $6,900,000 for Whole House Revitalization 
     (100 units) at Naval Air Station Whidbey Island, Washington.


                         legislative provisions

                     legislative provisions adopted

     Beach replenishment, Naval Air Station, North Island, 
         California (sec. 2205)
       The House bill contained a provision (sec. 2205) that would 
     provide for a cost-sharing agreement between the Secretary of 
     the Navy, the State of California, and local governments 
     concerning beach replenishment executed as part of a military 
     construction project at Naval Air Station, North Island, 
     California.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.


                   legislative provisions not adopted

     Defense access roads
       The Senate amendment contained a provision (sec. 2204) that 
     would authorize the Secretary of the Navy to make advances, 
     in the amount of $300,000, to the Secretary of Transportation 
     for the construction of defense access roads at various 
     locations.
       The House bill contained no similar provision.
       The Senate recedes.

                         TITLE XXIII--AIR FORCE


                            fiscal year 1997

     Overview
       The House bill would authorize $1,823,456,000 for Air Force 
     military construction and family housing programs for fiscal 
     year 1997.
       The Senate amendment would authorize $1,844,786,000 for 
     this purpose.
       The conferees recommend authorization of appropriations of 
     $1,894,594,000 for Air Force military construction and family 
     housing for fiscal year 1997.


                       items of special interest

     Improvements of Military Family Housing, Air Force
       The conferees recommend that, within authorized amounts for 
     improvements of military family housing and facilities, the 
     Secretary of the Air Force execute the following projects: 
     $8,600,000 for family housing improvements (112 units) at 
     Eglin Air Force Base, Florida; $6,000,000 for Whole House 
     Revitalization (52 units) at Wright-Patterson Air Force Base, 
     Ohio; $13,000,000 for family housing improvements (133 units) 
     at Laughlin Air Force Base, Texas; and $7,500,000 for Whole 
     House Revitalization (92 units) at Hill Air Force Base, Utah.


                         legislative provisions

                     legislative provisions adopted

     Elimination of authority to carry out fiscal year 1995 
         project, Spangdahlem Air Force Base, Germany (sec. 2305)
       The conferees recommend a provision (sec.  ) that would 
     amend the table in 2301(b) of the Military Construction 
     Authorization Act for Fiscal Year 1995 (Division B of Public 
     Law 103-337) relating to Spangdahlem Air Force Base, Germany 
     by reducing the authorization by $2.1 million and terminating 
     the authority to upgrade the sewage and storm water system.

                      TITLE XXIV--DEFENSE AGENCIES


                            fiscal year 1997

     Overview
       The House bill would authorize $3,396,336,000 Defense 
     Agencies military construction and family housing programs 
     for fiscal year 1997.
       The Senate amendment would authorize $3,399,136,000 for 
     this purpose.
       The conferees recommend authorization of appropriations of 
     $3,379,703,000 for Defense Agencies military construction and 
     family housing for fiscal year 1997.


                         LEGISLATIVE PROVISIONS

                     legislative provisions adopted

     Reduction in amounts authorized to be appropriated for fiscal 
         year 1996 defense agencies military construction, land 
         acquisition, and military family housing functions (sec. 
         2407)
       The conferees recommended a provision (sec.  ) that would 
     amend section 2405 of the Military Construction Authorization 
     Act for Fiscal Year 1996 (Division B of Public Law 104-106) 
     by reducing the authorization of appropriations for defense 
     agencies by $7.0 million.

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                PROGRAM


                            fiscal year 1997

     Overview
       The House bill would authorize $177,000,000 for the U.S. 
     contribution to the NATO Security Investment Program for 
     fiscal year 1997.
       The Senate amendment would authorize $172,000,000 for this 
     purpose.
       The conferees authorize $172,000,000 for the U.S. 
     contribution to the NATO Security Investment Program.

            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES


                            fiscal year 1997

     Overview
       The House bill would authorize $294,693,000 for military 
     construction and land acquisition for fiscal year 1997 for 
     the Guard and Reserve components.
       The Senate amendment would authorize $451,099,000 for this 
     purpose.
       The conferees recommend authorization of appropriations of 
     $388,826,000 for military construction and land acquisition 
     for fiscal year 1997. This authorization would be distributed 
     as follows:

Army National Guard.........................................$59,194,000
Army Reserve.................................................55,543,000
Naval/Marine Corps Reserve...................................32,779,000
Air National Guard..........................................188,505,000
Air Force Reserve............................................52,805,000


                         legislative provisions

                     legislative provisions adopted

     Authorization and funding for construction and improvement of 
         Naval Reserve Centers (sec. 2602)
       The Senate amendment contained a provision (sec. 2602) that 
     would reallocate $10.4 million appropriated under the heading

[[Page H9340]]

     ``Military Construction, Naval Reserve'' in the Military 
     Construction Appropriations Act, 1995 (P.L. 103-307) for the 
     construction of a Joint Reserve Center at Fort Lawton, 
     Washington and the construction of other reserve facilities 
     in the State of Washington.
       The House bill contained no similar provision.
       The House recedes with an amendment that would broaden the 
     availability of funds for unspecified minor construction and 
     planning and design. The amendment would also make a 
     technical correction by designating a new section (sec. 2835) 
     regarding a modification to the related land conveyance 
     language in the Military Construction Appropriations Act, 
     1995.
     Upgrade Air National Guard facilities, Bangor International 
         Airport, Maine (sec. 2603)
       The conferees recommend a provision that would authorize 
     the Secretary of the Army to carry out a construction project 
     to upgrade Air National Guard Base and support facilities at 
     Bangor International Airport, Maine. The total cost of the 
     project authorized may not exceed $13,000,000. The amount 
     authorized to be appropriated for fiscal year 1997 is 
     $7,000,000.


                   legislative provisions not adopted

     Authorized Guard and Reserve construction and land 
         acquisition projects
       The Senate amendment contained a provision (sec. 
     2601(1)(A)) that would prohibit the obligation of funds 
     authorized for the combined maintenance shop at Camp 
     Guernsey, Wyoming until the Secretary of Defense certifies to 
     Congress that the project is in the current future years 
     defense program.
       The House bill contained no similar provision.
       The Senate recedes.

        Title XXVII--Expiration and Extension of Authorizations


                         legislative provisions

                     legislative provisions adopted

     Extension of authorizations of certain fiscal year 1994 
         projects (sec. 2702)
       The House bill contained a provision (sec. 2702) that would 
     provide for extension of certain fiscal year 1994 military 
     construction authorizations until October 1, 1997, or the 
     date of the enactment of an Act authorizing funds for 
     military construction for fiscal year 1997, whichever is 
     later.
       The Senate amendment contained a similar provision.
       The Senate recedes with an amendment that would add the 
     following project:
       South Carolina; Summerville; Organizational Maintenance 
     Shop; $834,000.
     Extension of authorizations of certain fiscal year 1993 
         projects (sec. 2703)
       The Senate amendment contained a provision (sec. 2703) that 
     would provide for extension of certain fiscal year 1993 
     military construction authorizations until October 1, 1997, 
     or the date of the enactment of the Act authorizing funds for 
     military construction for fiscal year 1997, whichever is 
     later.
       The House bill contained a similar provision.
       The House recedes with an amendment that would add the 
     following project:
       New Mexico; Clayton; Armory; $1,400,000.


                   legislative provisions not adopted

     Prohibition on use of funds for certain projects
       The Senate amendment contained a provision (sec. 2705) that 
     would prohibit the obligation or expenditure of funds for 
     certain military construction projects in Kentucky until the 
     Secretary of Defense certifies that the projects are included 
     in the current future years defense program.
       The House bill contained no similar provision.
       The Senate recedes.

                    Title XXVIII--General Provisions


                         legislative provisions

     Subtitle A--Military Construction and Military Family Housing


                     legislative provisions adopted

     Increase in certain thresholds for unspecified minor 
         construction projects (sec. 2801)
       The Senate amendment contained a provision (sec. 2801) that 
     would amend sections 2805 and 18233 (a) of title 10, United 
     States Code, to increase the operations and maintenance minor 
     construction limit from $300,000 to $500,000 for the active 
     and reserve components. The provision would further amend 
     section 18233 (a) to increase the reserve component minor 
     military construction limit from $400,000 to $1.5 million.
       The House bill amendment contained no similar provision.
       The House recedes.
     Redesignation of North Atlantic Treaty Organization 
         Infrastructure Program (sec. 2802)
       The Senate amendment contained a provision (sec. 2503) that 
     would amend section 2806 of title 10, United States Code, by 
     redesignating the North Atlantic Treaty Organization 
     Infrastructure Program as the North Atlantic Treaty 
     Organization Security Investment Program. The provision would 
     establish in law the name change implemented by the North 
     Atlantic Treaty Organization when it revamped the 
     infrastructure program in 1993.
       The House bill contained a similar provision.
       The House recedes.
     Improvements to military family housing units (sec. 2803)
       The House bill contained a provision (sec. 2803) that would 
     make technical changes to the calculation of cost of major 
     maintenance and repair to military housing units.
       The Senate amendment contained a similar provision.
       The Senate recedes with a technical amendment.
     Availability of funds for planning, execution, and 
         administration of contracts for family housing and 
         unaccompanied housing (sec. 2804)
       The conferees recommend an amendment to section 2883 of 
     title 10, United States Code, to make a technical correction 
     that would authorize the Department of Defense to pay 
     expenses incurred for planning, execution, and administration 
     of contracts entered into under the Military Housing 
     Privatization Initiative authority from the funds established 
     under the Initiative and from other Department of Defense 
     funds that are otherwise available for such purposes.

            Subtitle B--Defense Base Closure and Realignment


                     Legislative Provisions Adopted

     Restoration of authority for certain intragovernmental 
         transfers under 1988 Base Closure Law (sec. 2811)
       The House bill contained a provision (sec. 2811) that would 
     restore the ability of the Secretary of Defense to transfer 
     property at a closing or realigning military installation to 
     a military department, including a nonappropriated fund 
     instrumentality, or to the Coast Guard. The previous 
     authority for such transfers was inadvertently repealed in a 
     prior year through a technical drafting error.
       The Senate amendment contained a similar provision.
       The Senate recedes.
     Contracting for certain services at facilities remaining on 
         closed installations (sec. 2812)
       The House bill contained a provision (sec. 2812) that would 
     authorize the Department of Defense to contract out for 
     certain services at facilities remaining on military 
     installations closed under the base closure and realignment 
     process.
       The Senate amendment contained a provision (sec. 2812) that 
     would amend section 204(b)(8)(A) of the Defense Authorization 
     Amendments and Base Closure and Realignment Act of 1988 (P.L. 
     100-526) and section 2905(b)(8)(A) of the Defense Base 
     Closure and Realignment Act of 1990 (P.L. 101-510) to 
     increase the authority of the service secretaries to contract 
     for services, such as fire fighting or security guards, for 
     facilities not yet transferred or otherwise disposed of at 
     installations closed under the applicable closure law.
       The House recedes.
     Authority to compensate owners of manufactured housing (sec. 
         2813)
       The House bill contained a provision (sec. 2813) that would 
     authorize payments from the base closure and realignment 
     accounts to compensate owners of manufactured housing at 
     military installations to be closed or realigned. Under the 
     provision, the payment may be made if the manufactured 
     housing park is eliminated or relocated. No payment 
     authorized by this section may exceed 90 percent of the 
     purchase price of the manufactured housing unit.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Additional purpose for which adjustment and diversification 
         assistance is authorized (sec. 2814)
       The House bill contained a provision (sec. 2814) that would 
     restore the authority of the Secretary of Defense to make 
     grants, conclude cooperation agreements, and supplement other 
     Federal funds to assist base reuse planning by the States and 
     local redevelopment authorities at military installations to 
     be closed. The previous authority for such support was 
     inadvertently repealed in a prior year through a technical 
     drafting error.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Payment of stipulated penalties assessed under CERCLA in 
         connection with Loring Air Force Base, Maine (sec. 2815)
       The House bill contained a provision (sec. 2815) that would 
     authorize payments from the base closure and realignment 
     accounts for stipulated penalties assessed under the 
     Comprehensive Environmental Response, Compensation, and 
     Liability Act (CERCLA) of 1980 in connection with the closure 
     of Loring Air Force Base, Maine.
       The Senate amendment contained a similar provision.
       The Senate recedes.
     Plan for utilization, reutilization, or disposal of 
         Mississippi Army Ammunition Plant (sec. 2816)
       The House bill contained a provision (sec. 2816) that would 
     require the Secretary of the Army to submit to the Congress a 
     plan for the utilization, reutilization, or disposal of the 
     Mississippi Army Ammunition Plant. The plan shall be 
     submitted not later than 180 days after enactment of this 
     Act.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.

                      Subtitle C--Land Conveyances


                     legislative provisions adopted

                        Part I--Army Conveyances

     Transfer of lands, Arlington National Cemetery, Arlington, 
         Virginia (sec. 2821)
       The Senate amendment contained a provision (sec. 2821) that 
     would authorize the Secretary of the Interior to transfer to 
     the Secretary of the Army a parcel of real property

[[Page H9341]]

     in section 29 of the National Park System known as the 
     Arlington Cemetery Internment Zone and all those lands in the 
     area of section 29 known as the Robert E. Lee Memorial 
     Preservation Zone, except those lands in the Preservation 
     Zone that the Secretary of the Interior determines must be 
     retained because of historical significance. The conveyance 
     would be carried out in accordance with the Interagency 
     Agreement dated February 22, 1995.
       Prior to executing a transfer of property in the Robert E. 
     Lee Memorial Preservation Zone, the Secretaries would be 
     required to submit a report to Committee on Armed Services of 
     the Senate and the Committee on National Security of the 
     House of Representatives, which includes a summary of the 
     cultural resource study, a summary of any environmental 
     analysis, and a summary of the general manner in which the 
     Secretary of the Army plans to develop the property.
       The provision would further authorize the Secretary of the 
     Interior to convey to the Secretary of the Army a parcel of 
     real property and improvements containing 2.43 acres. It 
     would also authorize the Secretary of the Army to transfer to 
     the Secretary of the Interior a parcel of real property and 
     improvements containing 0.17 acre.
       The House bill contained a similar provision.
       The House recedes with an amendment that would include in 
     the summary required by paragraph (2)(A)(ii) any analysis 
     required by the National Historic Preservation Act of 1966.
     Transfer of jurisdiction and land transfer, Fort Sill, 
         Oklahoma (sec. 2822)
       The Senate amendment contained a provision (sec. 2828) that 
     would authorize the Secretary of the Army to transfer to the 
     Secretary of Veterans Affairs administrative jurisdiction of 
     approximately 400 acres of real property, comprising a 
     portion of Fort Sill, Oklahoma. The property transferred is 
     to be used as a national cemetery.
       The House bill contained no similar provision.
       The House recedes.
     Land conveyance, Army Reserve Center, Rushville, Indiana 
         (sec. 2823)
       The House bill contained a provision (sec. 2822) that would 
     authorize the Secretary of the Army to convey, without 
     consideration, a parcel of real property with improvements, 
     to the City of Rushville, Indiana. The property is to be used 
     for the benefit of public safety. The cost of any surveys 
     necessary for the conveyance shall be borne by the City.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Land conveyance, Army Reserve Center, Anderson, South 
         Carolina (sec. 2824)
       The House bill contained a provision (sec. 2823) that would 
     authorize the Secretary of the Army to convey, without 
     consideration, a parcel of real property with improvements, 
     to the County of Anderson, South Carolina. The property is to 
     be used for educational purposes. The cost of any surveys 
     necessary for the conveyance shall be borne by the County.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Land conveyance, Army Reserve Center, Montpelier, Vermont 
         (sec. 2825)
       The Senate amendment contained a provision (sec. 2823) that 
     would authorize the Secretary of the Army to convey, without 
     consideration, the Army Reserve Center, Montpelier, Vermont 
     consisting of approximately 4.3 acres and improvements, to 
     the City of Montpelier, Vermont. The provision would require 
     the City to lease, at no rental charge, to the Civil Air 
     Patrol the space that the Civil Air Patrol leases from the 
     Army at the time of enactment of the National Defense 
     Authorization Act for Fiscal Year 1997. The conveyance would 
     be contingent on a determination that no other Federal agency 
     has an interest in the property.
       The House bill contained no similar provision.
       The House recedes with an amendment that would strike the 
     language pertaining to expressions of interest by other 
     Federal agencies.
     Land conveyance, Crafts Brothers Reserve Training Center, 
         Manchester, New Hampshire (sec. 2826)
       The Senate amendment contained a provision (sec. 2832) that 
     would authorize the Secretary of the Army to convey, without 
     consideration, approximately 3.5 acres of real property 
     containing the Craft Brothers Reserves Center in Manchester, 
     New Hampshire to Saint Anselm College. The Secretary would be 
     prohibited from initiating the conveyance until the Army 
     reserve units currently located at the Craft Brothers 
     Reserves Center are relocated to the Joint Reserve Center to 
     be constructed at the Manchester Airport, New Hampshire. The 
     conveyance would be contingent on a determination that no 
     other federal agency has an interest in the property.
       The House bill contained no similar provision.
       The House recedes.
     Land conveyance, Pine Bluff Arsenal, Arkansas (sec. 2827)
       The Senate amendment contained a provision (sec. 2835) that 
     would authorize the Secretary of the Army to convey, without 
     consideration, a 1500-acre parcel of land located at Pine 
     Bluff Arsenal, Arkansas to the Economic Development Alliance 
     of Jefferson County, Arkansas for economic development. The 
     conveyance would be conditioned on the following: that the 
     Secretary of the Army must have all required permits for the 
     operation of the Chemical Demilitarization (DEMIL) facility 
     prior to the conveyance; that the Secretary of Defense must 
     certify that the proposed conveyance would not negatively 
     impact the ability of the Department of Defense to carry out 
     the DEMIL mission; and that the Federal government must be 
     reimbursed if, at any time during the 25 years after the 
     conveyance, the County sells the property.
       The House bill contained no similar provision.
        The House recedes.
     Reaffirmation of land conveyances, Fort Sheridan, Illinois 
         (sec. 2828)
       The House bill contained a provision (sec. 2824) that would 
     provide authority to the Secretary of the Army to complete, 
     as soon as practicable, the previously authorized land 
     conveyance at Fort Sheridan, Illinois.
        The Senate amendment contained an identical provision. The 
     conference agreement includes this provision.

                       Part II--Navy Conveyances

     Land transfer, Potomac Annex, District of Columbia (sec. 
         2831)
       The Senate amendment contained a provision (sec. 2822) that 
     would direct the Secretary of the Navy to transfer 
     approximately three acres of real property located at the 
     Potomac Annex in the District of Columbia to the 
     administrative jurisdiction of the United States Institute of 
     Peace. As a condition of the transfer, the Institute shall 
     agree to make available to the Navy permanent parking space 
     at the headquarters building and interim parking during 
     construction of the headquarters building.
       The House bill contained no similar provision.
       The House recedes with an amendment that would make the 
     conveyance permissive.
       The conferees urge the Secretary and the Institute to move 
     forward with the transfer and expect the Institute to proceed 
     with its plans to raise private funds for the construction of 
     a headquarters facility on the site.
     Land Exchange, St. Helena Annex, Norfolk Naval Shipyard, 
         Virginia (sec. 2832)
       The House bill contained a provision (sec. 2832) that would 
     authorize an exchange of real property, with consideration, 
     relating to Norfolk Naval Shipyard, Virginia. As 
     consideration for the real property located at the Shipyard 
     conveyed by the Secretary, the transferee shall convey to the 
     United States a parcel or parcels of real property, with 
     improvements, located in the area of Portsmouth, Virginia, 
     and shall pay to the Secretary an amount equal to the amount 
     by which the fair market value of the parcel conveyed by the 
     Secretary exceeds the fair market value of the parcel 
     conveyed to the United States. In lieu of such consideration, 
     the Secretary and the transferee may agree upon in-kind 
     consideration under which the transferee would provide for 
     the improvement, maintenance, or repair of real property 
     under the control of the Secretary in the area of Hampton 
     Roads, Virginia. The exact acreage and legal description of 
     the parcels shall be determined by a survey satisfactory to 
     the Secretary. The cost of the survey shall be borne by the 
     transferee.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Land conveyance, Calverton Pine Barrens, Naval Weapons 
         Industrial Reserve Plant, Calverton, New York (sec. 2833)
       The House bill contained a provision (sec. 2833) that would 
     authorize the Secretary of the Navy to convey a parcel of 
     real property, comprising the Calverton Pine Barrens and 
     located at the Naval Weapons Industrial Reserve Plant, 
     Calverton, New York, to the Department of Environmental 
     Conservation of the State of New York. The property is to be 
     used as a nature preserve. The cost of any surveys necessary 
     for the conveyance shall be borne by the Department of 
     Environmental Conservation.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Land conveyance, former Naval Reserve Facility, Lewes, 
         Delaware (sec. 2834)
       The Senate amendment contained a provision (sec. 2824) that 
     would authorize the Secretary of the Navy to convey, without 
     consideration, to the State of Delaware a parcel of real 
     property, consisting of approximately 16.8 acres and 
     improvements, at the former Naval Reserve Facility, Lewes, 
     Delaware. The provision would require the State to use the 
     property, in pertetuity, solely as a public park or 
     recreational area. The property would revert to the United 
     States if at any time, the Secretary of the Interior 
     determines that the property is not being used in accordance 
     with the conditions of conveyance. The conveyance would be 
     contingent on a determination that no other Federal agency 
     has an interest in the property.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of the Navy to determine that the property is not 
     being used in accordance with the conditions of conveyance. 
     The amendment would also strike the language pertaining to 
     expressions of interest by other Federal agencies.

[[Page H9342]]

     Modification of land conveyance authority, Naval Reserve 
         Center, Seattle, Washington (sec. 2835)
       The Senate amendment contained a provision (sec. 2602) that 
     would reallocate $10.4 million appropriated under the heading 
     ``Military Construction, Naval Reserve'' in the Military 
     Construction Appropriations Act, 1995 for the construction of 
     a Joint Reserve Center at Fort Lawton, Washington and the 
     construction of other reserve facilities in the State of 
     Washington.
       The House bill contained no similar provision.
       The House recedes with an amendment that would broaden the 
     availability of funds for unspecified minor construction and 
     planning and design. The amendment would also make a 
     technical correction by designating a new section regarding a 
     modification to the related land conveyance language in the 
     Military Construction Appropriations Act, 1995.
     Release of condition on reconveyance of transferred land, 
         Guam (sec. 2836)
       The House bill contained a provision (sec. 2831) that would 
     repeal section 818(b)(2) of the Military Construction 
     Authorization Act for Fiscal Year 1981 (Public Law 96-418) 
     relating to a condition on the disposal by the Government of 
     Guam of real property conveyed by the United States.
       The Senate bill contained no similar provision.
       The Senate recedes.
     Lease to facilitate construction of reserve center, Naval Air 
         Station, Meridian, Mississippi (sec. 2837)
       The House bill contained a provision (sec. 2206) that would 
     permit the Secretary of the Navy to lease to the State of 
     Mississippi, without reimbursement, approximately five acres 
     of real property at Naval Air Station, Meridian, Mississippi. 
     The State shall use the property to construct a reserve 
     center and ancillary supporting facilities. The section also 
     would provide for a leaseback of the reserve center by the 
     Navy.
       The Senate amendment contained a similar provision.
       The Senate recedes.

                    Part III--Air Force Conveyances

     Land conveyance, Radar Bomb Scoring Site, Belle Fourche, 
         South Dakota (sec. 2841)
       The House bill contained a provision (sec. 2842) that would 
     authorize the Secretary of the Air Force to convey, without 
     consideration, approximately 37 acres of real property and 
     improvements to the Belle Fourche School District, Belle 
     Fourche, South Dakota. The property is to be used for 
     educational, economic development, and housing purposes. The 
     cost of any surveys necessary for the coveyance shall be 
     borne by the School District.
       The Senate amendment contained a similar provision.
       The Senate recedes.
     Conveyance of primate research complex and Air Force-owned 
         chimpanzees, Holloman Air Force Base, New Mexico (sec. 
         2842)
       The Senate amendment contained a provision (sec. 2826) that 
     would authorize the Secretary of the Air Force to convey, on 
     a competitve basis and at no cost to the Air Force, the 
     primate research complex and the colony of Air Force-owned 
     chimpanzees located at Holloman Air Force Base, New Mexico. 
     The authorized conveyance would not include the real property 
     on which the research complex is sited. The Secretary, in 
     cooperation with the Department of Agriculture and the 
     National Institutes of Health, would be required to develop 
     standards of care and use of the primate research complex and 
     of the chimpanzees, to be used in solicitation of bids. The 
     conditions of conveyance would require that the recipient use 
     the chimpanzees for scientific research, medical research, or 
     retire and provide adequate care for the chimpanzees.
       The House bill contained a similar provision.
       The House recedes with an amendment that would: clarify 
     that the Air Force-owned chimpanzees are included in the 
     transfer; specify competitive negotiations required in the 
     disposal; make the recipient of the complex and chimpanzees 
     subject to the existing lease; and make certain technical 
     corrections.

                       Part IV--Other Conveyances

     Land conveyance, Tatum Salt Dome Test Site, Mississippi (sec. 
         2851)
       The House bill contained a provision (sec. 2851) that would 
     authorize the Secretary of Energy to convey the Tatum Salt 
     Dome Test Site to the State of Mississippi after 
     certification by the Administrator of the Environmental 
     Protection Agency and the State that any contamination of the 
     property has been remediated in accordance with applicable 
     Federal and state statutory and regulatory requirements. The 
     property is to be used by the State as a wildlife refuge and 
     is to be designated as the Jamie Whitten Wilderness Area.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would designate 
     the property as the Jamie Whitten Forest Management Area and 
     specify that all subsurface estate be retained by the United 
     States.
     Land conveyance, William Langer Jewel Bearing Plant, Rolla, 
         North Dakota (sec. 2852)
       The House bill contained a provision (sec. 2852) that would 
     authorize the Administrator of the General Services 
     Administration to convey, without consideration, 
     approximately 9.77 acres of real property with improvements 
     comprising the formerly Army-owned William Langer Jewel 
     Bearing Plant, Rolla, North Dakota to the Job Development 
     Authority of the City of Rolla, North Dakota. The property is 
     to be used for economic development. The cost of any surveys 
     necessary for the conveyance shall be borne by the Authority.
       The Senate Amendment contained a similar provision.
       The House recedes with an amendment that would make the 
     funds made available under the Department of Defense 
     Appropriations Act, 1995 (Public Law 103-335) for the 
     maintenance of the William Langer Jewel Bearing Plant 
     available pending the conveyance of the plant.
     Land conveyance, Air Force Plant No. 85, Columbus, Ohio (sec. 
         2853)
       The Senate amendment contained a provision (sec. 2834) that 
     would authorize the Secretary of the Air Force to instruct 
     the Administrator of General Services to convey, without 
     consideration, a parcel of real property consisting of 
     approximately 240 acres of land and improvements, known as 
     Air Force Plant No. 85, to the Columbus Municipal Airport 
     Authority. The conveyance would be contingent on a 
     determination that no other Federal agency has an interest in 
     the property.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Modification of boundaries of White Sands National Monument 
         and White Sands Missile Range (sec. 2854)
       The Senate amendment contained a provision (sec. 2836) that 
     would authorize the Secretary of the Interior and the 
     Secretary of the Army to exchange administrative jurisdiction 
     of certain parcels of real property to facilitate the 
     administration of the White Sands National Monument and the 
     White Sands Missile Range, New Mexico.
       The House bill contained no similar provision.
       The House recedes with an amendment that would make the 
     exchange permissive.

                       Subtitle D--Other Matters


                     Legislative Provisions Adopted

     Authority to grant easements for rights-of-way (sec. 2861)
       The Senate amendment contained a provision (sec. 2803) that 
     would amend section 2668(a) of title 10, United States Code, 
     by including poles, lines, structures, and facilities used 
     for transmission or distribution of electrical power and 
     communication signals in the authority for which the 
     Secretary may grant easements on military installations. The 
     provision would also make section 2668(a) the only easement 
     authority for the military departments.
       The House bill contained a similar provision.
       The House recedes.
     Authority to enter into cooperative agreements for the 
         management of cultural resources on military 
         installations (sec. 2862)
       The House bill contained a provision (sec. 2862) that would 
     authorize the military departments to enter into cooperative 
     agreements for the management of cultural resources. In the 
     absence of specific statutory authority, the military 
     departments have been reluctant to enter into such 
     cooperative agreements. The Sikes Act (Public Law 99-561) 
     currently authorizes the Secretary of Defense to plan, 
     develop, maintain, and coordinate wildlife conservation and 
     rehabilitation efforts on Department of Defense installations 
     through the use of cooperative agreements.
       The Senate amendment contained a similar provision (sec. 
     349).
       The Senate recedes.
     Demonstration project for installation and operation of 
         electric power distribution systems at Youngstown Air 
         Reserve Station, Ohio (sec. 2863)
       The House bill contained a provision (sec. 2863) that would 
     authorize the Secretary of the Air Force to carry out a 
     demonstration project to assess the feasibility of permitting 
     private entities to install, operate, and maintain electric 
     power distribution systems at military installations. The 
     demonstration project would be conducted at Youngstown Air 
     Reserve Station, Ohio.
       The Senate amendment contained a similar provision.
       The Senate recedes with an amendment that would specify the 
     source of funding to support the demonstration project and 
     would establish a reporting requirement.
     Renovation of the Pentagon Reservation (sec. 2864)
       The Senate amendment contained a provision (sec. 2829) that 
     would reduce, by $100.0 million, the $1.2 billion cap on the 
     renovation of the Pentagon.
       The House bill contained no similar provision.
       The House recedes.
     Plan for repairs and stabilization of the historic district 
         at the Forest Glen Annex of the Walter Reed Medical 
         Center, Maryland (sec. 2865)
       The Senate amendment contained a provision (sec. 2105) that 
     would require the Secretary of the Army to submit to the 
     congressional defense committees a comprehensive plan for 
     basic repairs and stabilization measures for the historic 
     district at the Forest

[[Page H9343]]

     Glen Annex of Walter Reed Army Medical Center, Maryland, 
     together with funding options for implementing the plan. The 
     provision would require the report to be submitted not later 
     than 30 days after the date of enactment of the National 
     Defense Authorization Act for Fiscal Year 1997.
       The House bill contained no similar provision.
       The House recedes with an amendment that would extend the 
     report submission time to 120 days.
     Naming of range at Camp Shelby, Mississippi (sec. 2866)
       The House bill contained a provision (sec. 2602) that would 
     designate the Multi-Purpose Range Complex (Heavy) at Camp 
     Shelby, Mississippi as the ``G.V. (Sonny) Montgomery Range''. 
     The provision would take effect at noon, January 3, 1997, or 
     the first day on which G.V. Montgomery otherwise ceases to be 
     a Member of the House of Representatives.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Designation of Michael O'Callaghan Military Hospital (sec. 
         2867)
       The House bill contained a provision (sec. 2864) that would 
     designate the Nellis Federal Hospital, Las Vegas, Nevada, as 
     the Michael O'Callaghan Military Hospital.
       The Senate amendment contained a similar provision (sec. 
     1070).
       The Senate recedes.
     Naming of building at the Uniformed Services University of 
         the Health Sciences (sec. 2868)
       The Senate amendment contained a provision (sec. 1071) that 
     would express the sense of the Senate that the Secretary of 
     Defense name Building A at the Uniformed Services University 
     of the Health Sciences the ``David Packard Building.''
       The House bill contained no similar provision.
       The House recedes with an amendment that would express the 
     sense of the Congress.


                   legislative provisions not adopted

     Authority to demolish excess facilities
       The House bill contained a provision (sec. 2802) that would 
     authorize a program to demolish excess facilities. Funds 
     authorized for appropriation under the authorities contained 
     in this section may not be used for the demolition of 
     military family housing, facilities involved in a base 
     closure and realignment action, or facilities which would be 
     demolished as an integral part of a specific military 
     construction project.
       The Senate amendment contained no similar provision.
       The House recedes.
     Land transfer, Vernon Ranger District, Kisatchie National 
         Forest, Louisiana
       The Senate amendment contained a provision (sec. 2833) that 
     would direct the Secretary of Agriculture to transfer 85,000 
     acres of the Kisatchie National Forest in Louisiana to the 
     Secretary of the Army for use as training and maneuver space 
     at Fort Polk, Louisiana. Within 6 months of enactment of the 
     Act, the transfer shall occur unless the two Secretaries 
     reach an agreement on land management and conservation 
     activities related to National Forest land available for 
     military training activities. The deadline may be extended by 
     6 months. If after the last deadline an agreement is not 
     reached, the Secretary of Agriculture shall transfer the 
     property to the Army for training use.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees recognize the requirement for expanded 
     training acreage to accommodate the training mission at Fort 
     Polk. The conferees also recognize the administration's 
     concern for addressing the Army's needs and note the 
     administration's commitment to reaching an agreement between 
     the Department of the Army and the Department of Agriculture 
     through other than legislative means.
       The conferees understand that the Department of the Army 
     and the Department of Agriculture have agreed on a statement 
     of principles which will be incorporated in a Memorandum of 
     Agreement for the use of Kisatchie National Forest lands for 
     Army training at Fort Polk. The conferees also understand 
     that the Departments are committed to reaching an agreement 
     on a final Memorandum of Agreement by August 1, 1996. The 
     conferees support this effort and request that the 
     administration provide a copy of the Memorandum of Agreement 
     to the Committee on Armed Services of the Senate and National 
     Security Committee of the House of Representatives as soon as 
     it is available.
     Bandelier National Monument
       The Senate amendment contained a provision (sec. 2837) that 
     would authorize the Secretary of the Interior and the 
     Secretary of Energy to exchange administrative jurisdiction 
     over certain parcels of land to facilitate the administration 
     of the Bandelier National Monument.
       The House bill contained no similar provision.
       The Senate recedes.

                 Title XXIX--Military Land Withdrawals


                         Legislative Provisions

     Subtitle A--Fort Carson-Pinon Canyon Military Lands Withdrawal


                     Legislative Provisions Adopted

     Fort Carson-Pinon Canyon military lands withdrawal (sec. 
         2901-2913)
       The House bill contained provisions (sec. 2901-2913) that 
     would: withdraw and reserve, subject to valid existing 
     rights, approximately 3,133 acres of public lands and 
     approximately 11,415 acres of mineral rights in the State of 
     Colorado for use by the Secretary of the Army for military 
     maneuvering, training, and other defense-related purposes at 
     Fort Carson, Colorado; withdraw and reserve, subject to valid 
     existing rights approximately 2,517 acres of public lands and 
     approximately 130,139 acres of mineral rights in the State of 
     Colorado for use by the Secretary of the Army for military 
     maneuvering, training, and other defense-related purposes at 
     the Pinon Canyon Maneuver Site, Colorado; require that maps 
     and legal descriptions of the lands withdrawn and reserved by 
     this subtitle be prepared and published by the Secretary of 
     the Interior; provide for the management by the Secretary of 
     the Army, in coordination with the Secretary of the Interior, 
     of the withdrawn lands under this subtitle; provide that the 
     management of withdrawn and acquired mineral resources shall 
     be conducted, as applicable, pursuant to the Military Lands 
     Withdrawal Act of 1986 (Public Law 99-606); provide that 
     hunting, fishing, and trapping activities on the lands 
     withdrawn and reserved under this subtitle shall be conducted 
     in accordance with section 2671 of title 10, United States 
     Code; and provide that the withdrawal and reservation of 
     public lands and mineral rights will terminate 15 years after 
     the date of enactment of this subtitle.
       The provisions would also: provide for procedures to permit 
     a determination of continuing military need for the withdrawn 
     and reserved public lands and mineral rights; provide for 
     procedures under which the Secretary of the Army could 
     relinquish all or part of the lands withdrawn and reserved 
     under this subtitle; provide for decontamination of the 
     withdrawn lands, both during the period of withdrawal and 
     upon relinquishment of the lands by the Department of the 
     Army; provide that the functions of the Secretary of the Army 
     and the Secretary of the Interior under this subtitle may be 
     delegated without restriction, except that an order by the 
     Department of the Interior accepting jurisdiction over 
     withdrawn lands relinquished by the Department of the Army 
     may be signed only by the Secretary of the Interior, the 
     Deputy Secretary of the Interior, or an Assistant Secretary 
     of the Interior; provide that any party conducting any 
     mining, mineral, or geothermal leasing activity on lands 
     withdrawn under this subtitle shall indemnify the Untied 
     States against any costs, fees, damages, or other liabilities 
     incurred by the United States, arising from those activities; 
     amend the Military Lands Withdrawal Act of 1986 (Public Law 
     99-606) to permit, subject to valid existing rights, military 
     use of sand, gravel, and similar construction materials on 
     the lands withdrawn by that Act; and authorize such sums as 
     may be necessary to carry out the purposes of this subtitle.
       The Senate amendment contained no similar provision.
       The Senate recedes.

       Subtitle B--El Centro Naval Air Facility Ranges Withdrawal


                     legislative provisions adopted

     El Centro Naval Air Facility ranges withdrawal (sec. 2921-
         2931)
       The House bill contained provisions (sec. 2921-2931) that 
     would: withdraw and reserve, subject to valid existing 
     rights, approximately 46,600 acres of public lands in the 
     State of California for use by the Secretary of the Navy for 
     defense-related purposes at Naval Air Facility, El Centro, 
     California; require that maps and legal descriptions of the 
     lands withdrawn and reserved be prepared and published by the 
     Secretary of the Interior; and provide for the management by 
     the Secretary of the Interior, in coordination with the 
     Secretary of the Navy.
       The provision would also provide: that the withdrawal and 
     reservation of lands at Naval Air Facility, El Centro, 
     California, shall terminate 25 years after the date of 
     enactment of this Act; that the Secretary of the Navy 
     maintain a program of decontamination of the lands; for 
     procedures to permit a determination of continuing military 
     need for the lands; for procedures under which the Secretary 
     of the Navy could relinquish all or part of the lands; that 
     the functions of the Secretary of the Navy and the Secretary 
     of the Interior under this provision may be delegated without 
     restriction, except that an order by the Department of the 
     Interior accepting jurisdiction over withdrawn lands 
     relinquished by the Department of the Navy may be signed only 
     by the Secretary of the Interior, the Deputy Secretary of the 
     Interior, or an Assistant Secretary of the Interior; that 
     hunting, fishing, and trapping activities on the lands 
     withdrawn and reserved under this subtitle shall be conducted 
     in accordance with section 2671 of title 10, United States 
     Code; and that any party conducting any mining, mineral, or 
     geothermal leasing activity on lands withdrawn under this 
     subtitle shall indemnify the United Sates against any costs, 
     fees, damages, or other liabilities incurred by the United 
     States arising from those activities.
       The Senate amendment contained no similar provision.
       The Senate recedes.

[[Page H9344]]

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

      Title XXXI--Department of Energy National Security Programs

     Overview
       The budget request for fiscal year 1977 contained an 
     authorization of $11,049.5 million for the Department of 
     Energy National Security Programs. The House bill would 
     authorize $11,214.1 million. The Senate amendment would 
     authorize $11,499.5 million. The conferees recommended an 
     authorization of $11,399.5 million. Unless noted explicitly 
     in the statement of managers, all changes are made without 
     prejudice.

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                         legislative provisions

         Subtitle A--National Security Programs Authorizations


                     legislative provisions adopted

     Weapons Activities (sec. 3101)
       The House bill contained a provision (sec. 3101) that would 
     authorize $3,935.0 million for Department of Energy (DOE) 
     weapons activities.
       The Senate amendment contained a similar provision (sec. 
     3101) that would authorize $3,949.0 million for Department of 
     Energy weapons activities.
       The Senate recedes with an amendment that would authorize 
     $3,918.0 million for weapons activities, an increase of 
     $208.0 million above the requested amount, for the following 
     activities: $1,661.8 million for stockpile stewardship 
     activities; $1,962.8 million for stockpile management 
     activities; $313.4 million for program direction. The 
     authorization includes an undistributed reduction of $20.0 
     million to be offset by the availability of prior year funds 
     that have not been obligated, or if obligated, have not been 
     expended and would not be needed for the projects that were 
     the basis for obligation.
       In balancing the stockpile stewardship and stockpile 
     management programs, the conferees continue to be concerned 
     that the Department is placing an undue reliance on the long-
     term, unproven science-based stockpile stewardship program at 
     the expense of modernizing the more traditional production, 
     engineering, and surveillance approaches needed to maintain 
     stockpile safety and reliability over the next ten to fifteen 
     years. The conferees direct the Department to seek an 
     appropriate balance between the two approaches to ensure that 
     the United States can maintain the safety, effectiveness, and 
     reliability of its nuclear stockpile.
       Of the amount made available for technology transfer and 
     education, the conferees recommend $13.0 million for the 
     American Textiles Partnership project.
       In the stockpile management program, the conferees believe 
     that the United States must maintain viable weapons 
     manufacturing capabilities and capacities to rebuild aging 
     weapons and to retain the ability to reconstitute, if 
     necessary, its nuclear forces, consistent with U.S. treaty 
     obligations. In this regard, the conferees are concerned that 
     the underlying rationale of the Department's Draft 
     Programmatic Environmental Impact Statement for Stockpile 
     Stewardship and Management could negatively impact production 
     capabilities and capacities by needlessly downsizing the 
     production plants (Y-12, Pantex, Kansas City, and Savannah 
     River Site) and stripping those facilities of unique skills 
     and expertise. The conferees also raised additional concerns 
     regarding the Department's phased approach to restore tritium 
     production elsewhere in this bill.
       Of the amounts made available for stockpile management 
     activities, the conferees authorize an additional $90.0 
     million for the four weapons production plants to begin a 
     long-term modernization and upgrade programs; an additional 
     $60.0 million for tritium production; an additional $5.0 
     million for a surety program to improve waste minimization 
     efforts in the new stockpile management modernization 
     program; an additional $6.0 million for tritium recycling 
     plant upgrades; and an additional $3.0 million for planning 
     and construction of a tritium extraction facility.
       Weapons activities program direction is authorized at 
     $313.4 million, a reduction of $21.0 million. The conferees 
     direct that this decrease be used to continue reductions in 
     Federal employee staffing, foreign and domestic travel, and 
     non-technical support service contracts. The conferees direct 
     that reductions to the Federal workforce at DOE headquarters 
     and the non-technical contract support services workforce at 
     DOE headquarters be balanced. Further, the conferees direct 
     the Secretary of Energy to submit a report to Congress 
     identifying the frequency, destination, and cost of foreign 
     travel funded by the Department through grants, cooperative 
     agreements, and subcontracts.
       The conferees note that the report required by section 3160 
     of the National Defense Authorization Act for Fiscal year 
     1996 has not been provided to the congressional defense 
     committees. The conferees direct the Secretary to provide the 
     required report not later than February 1, 1997. The 
     conferees further require that the report include information 
     relating to past instances in which safety or reliability 
     issues in the stockpile have resulted in a requirement to 
     conduct nuclear tests at yields above hydronuclear yields. 
     The described data shall include the types of problems 
     identified, the solutions to those problems, the type of 
     nuclear test deemed necessary to assure the resolution of 
     each problem, and the element of the stockpile stewardship 
     program being undertaken as a substitute for testing that 
     could provide the analytical capacity to understand, monitor, 
     and make judgements regarding the impact such a problem or 
     problems would have on the reliability of the stockpile. For 
     each such instance, the report should indicate the methods 
     that were available to address the identified problem which 
     did not rely on nuclear testing, and the confidence the 
     Department could have expected from those methods.
       The conferees direct the Secretary to update the Warhead 
     Master Plan report required under Section 3153 of the 
     National Defense Authorization Act for Fiscal Year 1996 
     (Public Law 104-106) on a biennial basis and to inform the 
     congressional defense committees of noteworthy changes in the 
     plan.
     Environmental restoration and waste management (sec. 3102)
       The House bill contained a provision (sec. 3102) that would 
     authorize funds for Department of Energy (DOE) defense 
     environmental restoration and waste management activities for 
     fiscal year 1997 at $5,409.3 million, the level of the budget 
     request.
       The Senate amendment contained a provision (sec. 3102) that 
     would authorize $5,607.3 million for DOE defense 
     environmental restoration and waste management activities for 
     fiscal year 1997.
       The conferees agree to provide $5,509.3 for DOE defense 
     environmental restoration and waste management activities for 
     fiscal year 1997 for the following activities: $1,762.1 
     million for environmental restoration; $1,578.6 million for 
     waste management; $1,291.2 million for nuclear material and 
     facility stabilization; $411.5 million for program direction; 
     $303.7 million for technology development; $23.1 million for 
     policy and management; $62.1 million for the environmental 
     science program; $185.0 million for privatization; and $50.0 
     million for closure-acceleration activities. The conferees 
     recommend approval of the Department's request for a 
     reduction of $150.4 million for prior year balances and an 
     $8.0 million offset for the Savannah River Site Pension 
     Refund.
       Of the funds authorized to be appropriated under section 
     3102(b), the conferees recommend: an additional $15.0 million 
     to accelerate Defense Waste Processing Facility operations 
     and associated high-level waste treatment; an additional 
     $20.0 million for a one-time payment to the State of New 
     Mexico pursuant to a provision contained elsewhere in this 
     bill; and an additional $7.0 million for the Waste Isolation 
     Pilot Plant to make preparations for receipt of waste 
     shipments.
       Of the funds authorized to be appropriated under section 
     3102(c), the conferees recommend an additional $43.0 million 
     for nuclear material stabilization operations at the F- and 
     H-canyon facilities and an additional $15.0 million for the 
     National Spent Nuclear Fuel Program.
       To provide additional resources for cleanup, the conferees 
     recommend reducing the budget request for the office of 
     policy and management (sec. 3102(f)) by $25.0 million. This 
     reduction would result in an authorization for this 
     subaccount that is comparable to that authorized and 
     appropriated in fiscal year 1996. Approximately $4.0 to $7.0 
     million of this reduction would be derived by eliminating the 
     requirement to submit to Congress, on an annual basis, the 
     baseline environmental management report as required by the 
     National Defense Authorization Act for Fiscal Year 1994 
     (Public Law 103-360). The conferees recommend elsewhere in 
     this title that the annual reporting requirement be converted 
     to a biennial requirement.
       The conferees recommend a reduction to the budget request 
     for program direction (sec. 3102(d)) of $35.0 million. The 
     conferees direct that the Department absorb this funding 
     reduction by reducing the number of Federal employees 
     assigned to the Department's headquarters, by reducing 
     administrative overhead and travel expenses at DOE 
     headquarters, and by reducing non-technical contract support 
     services at DOE headquarters. The conferees direct that 
     reductions to the Federal workforce at DOE headquarters and 
     the non-technical contract support services workforce at DOE 
     headquarters be balanced. The conferees encourage the 
     Department to examine options for moving programmatic 
     functions that currently reside at DOE headquarters to 
     Department field offices. Further, the conferees direct the 
     Secretary of Energy to submit a report to the congressional 
     defense committees identifying the frequency, destination, 
     and cost of foreign and domestic travel funded by the 
     Department through grants, cooperative agreements, and 
     subcontracts.
       The conferees decline to accept the recommendation to 
     create a separate budget account for the office of site 
     operations. The conferees appreciate the role of this new 
     office and have no objection to this activity being performed 
     within the office of nuclear materials and facilities 
     stabilization. The conferees recommend funding the 
     construction projects associated with the office of site 
     operations under the budget function for the office of 
     nuclear materials and facilities stabilization. All of these 
     projects have been funded in the past under the latter 
     office's budget function.
       The conferees encourage the Department to continue 
     implementation of a viable stakeholder involvement program, 
     such as site specific advisory boards and other public 
     participation initiatives, at a level of activity equivalent 
     to that in fiscal year 1996. As with section 3153, in which 
     the conferees establish a requirement to develop future use 
     plans, the conferees believe strongly that public 
     participation is critical to the development of public trust 
     and acceptance of cleanup plans and programs, and that the 
     public can be an effective partner in helping the Department 
     accelerate cleanup schedules and thereby reduce long-term 
     cleanup costs. The conferees, therefore, urge the Secretary 
     to work to preserve resources for public participation in DOE 
     cleanup activities.
       The conferees recommend the creation of a new initiative to 
     be managed by the Assistant Secretary for Environmental 
     Management to accelerate the closure of facilities or 
     significantly reduce out year mortgage costs associated with 
     management of radioactive and other hazardous materials. In 
     doing so,

[[Page H9361]]

     the conferees direct that increased funding be applied to 
     those sites in the field where actual remediation occurs. The 
     conferees recommend that resources be applied to sites such 
     as Rocky Flats, Hanford, Oak Ridge, Savannah River, and 
     Idaho, where additional funding could be used to reduce life-
     cycle costs significantly through acceleration of existing 
     activities, initiation of cost reducing deactivation and 
     decommissioning activities, and the application of innovative 
     cleanup technologies. Criteria for selection of projects 
     under this closure acceleration program are contained 
     elsewhere in this title.
       The conferees recommend funding to establish a 
     privatization program for the treatment of high and low level 
     wastes at the Hanford facility. The conferees direct that the 
     Department provide a report to the congressional defense 
     committees no later than December 31, 1996, on the projected 
     cost savings, the extent of commercial competition and 
     participation in this initiative, and a recommendation on 
     changes that should be made to Federal procurement 
     regulations to make the program more effective.
       The conferees encourage the Department to explore all 
     available options, including alternative allocation 
     processes, use of prior year balances, and other means, to 
     ensure that fiscal year 1997 funding for the Hanford 
     privatization program does not serve to slow the pace of 
     cleanup at Hanford.
       The conferees are aware that the Department will soon 
     select a new lead contractor for the Hanford facility. New 
     contract provisions should result in cost savings at this 
     site. The conferees strongly encourage the Department, to the 
     maximum extent possible, to allocate those savings that 
     result from the new management contract to the privatization 
     program discussed earlier. This approach should help to 
     diminish any potential negative budgetary impacts resulting 
     from the creation of the privatization fund in fiscal year 
     1997 and should eliminate any negative impact on current 
     cleanup activities at the Hanford facility. Creation of a 
     privatization fund is not intended to interfere with or 
     impede on-going critical stabilization, maintenance, and 
     cleanup operations at this site.
       Finally, the conferees have been advised that a small 
     number of current and former employees at the Hanford 
     facility have failed to receive credit for the total years of 
     service performed at this facility, because of changes in 
     contractors on at least four occasions. While the four 
     Hanford site pension plans have been consolidated into a 
     single pension plan, apparently all of the service has not 
     been included. The conferees direct that the Department 
     examine this issue and provide a report to the congressional 
     defense committees no later than December 31, 1996, with a 
     recommendation on how to correct this problem or certifying 
     that sufficient corrective action has been taken.
     Defense fixed asset acquisition/privatization (sec. 3103)
       The House bill contained provision (sec. 3103) that would 
     authorize $182.0 million to establish a new asset acquisition 
     and privatization program for the Department of Energy's 
     national security assets.
       The Senate amendment contained no similar provision.
       The Senate recedes.
       The conferees recommend: $77.0 million for the advanced 
     mixed waste treatment project, Idaho Falls, Idaho; $15.0 
     million for the advanced mixed waste treatment project, Oak 
     Ridge, Tennessee; $70.0 million for the transuranic waste 
     treatment project 5. Oak Ridge, Tennessee; and $20.0 million 
     for other projects. No outlays are anticipated in fiscal year 
     1997 under this program. The conferees intend that pre-
     construction planning expenditures for each of these projects 
     be funded from operating and maintenance funds authorized in 
     section 3102 of this Act.
       The conferees recommend $7.0 million in pre-construction 
     funding for the advanced mixed waste treatment project. The 
     conferees believe this project is important to fulfilling the 
     Department's agreement with the State of Idaho and the 
     Department of the Navy with respect to the interim storage of 
     Naval nuclear spent fuel in Idaho.
     Other defense activities (sec. 3104)
       The budget request included $1.548 billion for Other 
     Defense Activities of the Department of Energy (DOE) for the 
     fiscal year 1997. The House bill contained a provision (sec. 
     3104) that would authorize $1.493 billion for Other Defense 
     Activities, a reduction of $55.0 million to the budget 
     request.
       The Senate amendment contained a provision (sec. 3103) that 
     would authorize $1.561 billion for the Other Defense 
     Activities, an increase of $85.0 million to the budget 
     request.
       The conferees agree to a provision that would authorize 
     $1.590 billion for these activities.
     Verification and control technology
       The conferees agree to authorize $513.3 million for 
     verification and control technology, an increase of $57.0 
     million to the budget request. Of the funds available in 
     nonproliferation ad verification research and development, 
     the conferees agree that $10.0 million shall be available to 
     accelerate the Department's forensic analytical program to 
     develop capabilities to address the prevention, detection, 
     interception, and attribution of international nuclear 
     smuggling events. Additionally, $1.5 million shall be 
     available for the conduct of a joint DOE-National Defense 
     study on nuclear smuggling.
       The conferees agree to provide $17.0 million to carry out 
     research and development of technical means for detecting the 
     presence, transportation, production, and use of weapons of 
     mass destruction and related technologies and materials. In 
     addition, the conferees direct the Secretary of Energy to 
     produce an annual evaluation of the expected powers and 
     expected limits that define the extent to which science and 
     technology can aid the nonproliferation effort. Additionally, 
     the conferees agree to provide $10.0 million for continuing 
     and expediting cooperative activities with the Government of 
     Russia to develop: (1) technologies for improving 
     verification of nuclear warhead dismantlement; (2) 
     technologies for converting plutonium from weapons into forms 
     that are better suited for long-term storage, to facilitate 
     verification; and (3) technologies that promote openness in 
     Russian production, storage, use, and final and interim 
     disposition of weapons usable fissile material.
       With regard to arms control and control technology, the 
     budget request included $181.2 million. The conferees agree 
     to provide $246.2 million, an increase to the budget request 
     of $65.0 million for materials, protection and control 
     activities. Of these funds, the conferees agree to a $35.0 
     million increase to the budget request for the Industrial 
     Partnering Program (IPP) and $7.9 million shall be available 
     to complete the canning of spent fuel rods in North Korea, 
     pursuant to the Agreed Framework, and to initiate post-
     canning technical activities.
       The conferees recommend an increase to the budget request 
     of $9.0 million for Lab-to-Lab activities. It is the view of 
     the conferees that DOE should seek to expand these activities 
     in the former Soviet Union beyond nuclear activities in 
     Russia, Ukraine, Kazakstan, and Belarus. While programs to 
     date have appropriately focused on the most pressing, 
     strategic concerns, critical work remains to be done in 
     combating the threat of proliferation at a variety of sites 
     in the other states of the former Soviet Union where nuclear, 
     radiological, chemical, and biological weapons-related 
     materials and technologies continue to be vulnerable to 
     proliferation.
       In addition, the conferees agree to provide $6.0 million 
     for DOE to carry out cooperative activities with the 
     government of Russia to improve the security of highly 
     enriched uranium that is used for propulsion of Russian 
     military and civilian ships. The Secretary of Energy is 
     directed to develop and periodically update a plan for such 
     cooperative activities, and shall coordinate the development 
     and updating of this plan with the Secretary of Defense, who 
     shall involve the Joint Chiefs of Staff in the coordination.
     Intelligence
       The conferees recommend an authorization of $35.2 million 
     for the intelligence program, a $6.0 million increase to the 
     budget request for fiscal year 1996 to expand 
     counterintelligence activities at the nuclear weapons 
     laboratories and at other high-risk facilities, and for 
     expanded analysis of the Russian and Chinese nuclear weapons 
     programs.
     International Nuclear Safety
       In addition to the $6.0 million recommended by the 
     conferees for core conversion activities at plutonium 
     production reactors in Russia, the conferees agree that 
     Department of Defense will transfer $10.0 million to DOE for 
     the replacement of core reactors at Tomsk and Krasnoyarsk.
     Naval Reactors
       The conferees recommend an additional $18.0 million for the 
     naval reactors program to allow the prototype plant 
     inactivation plan endorsed by the Department's Office of 
     Naval Reactors to proceed.
     Defense nuclear waste disposal (sec. 3105)
       The House bill contained a provision (sec. 3105) that would 
     authorize $200.0 million for defense nuclear waste disposal 
     activities of the Department for fiscal year 1997, the 
     requested amount.
       The Senate amendment contained a similar provision (sec. 
     3104).
       The Senate recedes.

                Subtitle B--Recurring General Provisions


                     Legislative Provisions Adopted

     Reprogramming (sec. 3121)
       The House bill contained a provision (sec. 3121) that would 
     prohibit the reprogramming of funds in excess of 110 percent 
     of the amount authorized for the program, or in excess of 
     $1.0 million above the amount authorized for the program 
     until the Secretary of Energy has notified the congressional 
     defense committees and a period of 30 days has elapsed after 
     the date on which the report is received. Should the 
     Department demonstrate that it has improved its procedures 
     for handling reprogramming requests, the committee would 
     consider returning a more flexible reprogramming statute in 
     the future.
       The Senate amendment contained an identical provision (sec. 
     3121).
       The conference agreement includes this provision.
     Limits on general plant projects (sec. 3122)
       The House bill contained a provision (sec. 3122) that would 
     limit the initiation of ``general plant projects'' if the 
     current estimated cost for any project exceeded $2.0 million. 
     If the Secretary of Energy found that the estimated cost of 
     any project would exceed $2.0 million, the appropriate 
     committees of Congress would have to be notified of the 
     reasons for the cost variation.

[[Page H9362]]

       The Senate amendment contained a similar provision (sec. 
     3122) that would limit the initiation of ``general plant 
     projects'' if the current estimated cost of the project 
     exceeded $5.0 million dollars. The Senate amendment further 
     required the Secretary of Energy to conduct a study on the 
     establishment of a permanent authorization formula for 
     determining defense and civilian ``general plant projects'' 
     limitations. Such a limitation would be adjusted periodically 
     for inflation and other factors. The Senate provision would 
     require the Secretary to report to Congress on the findings 
     of the study not later than February 1, 1997.
       The Senate recedes with an amendment that would require the 
     Secretary of Energy to conduct a study and report to Congress 
     on a permanent formula for ``general plant projects'' not 
     later than February 1, 1997.
     Limits on construction projects (sec. 3123)
       The House bill contained a provision (sec. 3123) that would 
     permit any construction project to be initiated and continued 
     only if the estimated cost for the project does not exceed 
     125 percent of the higher of: (1) the amount authorized for 
     the project; or (2) the most recent total estimated cost 
     presented to the Congress as justification for such project. 
     To exceed such limits, the Secretary of Energy must report in 
     detail to the appropriate committees of Congress and the 
     report must be before the committees for 30 legislative days. 
     This provision would also specify that the 125 percent 
     limitation would not apply to projects estimated to cost 
     under $5.0 million.
       The Senate amendment contained an identical provision (sec. 
     3123).
       The conference agreement includes this provision.
     Fund transfer authority (sec. 3124)
       The House bill contained a provision (sec. 3124) that would 
     permit the transfer of authorized funds to other agencies of 
     the government for performance of work for which their funds 
     were authorized. The provision would allow the transferred 
     funds to be merged with the authorizations of the receiving 
     agency. The provision would also establish a five percent 
     limit for funds that may be transferred.
       The Senate amendment contained an identical provision (sec. 
     3124).
       The conference agreement includes this provision.
     Authority for conceptual and construction design (sec. 3125)
       The House bill contained a provision (sec. 3125) that would 
     limit the Secretary of Energy's authority to a request 
     construction funding until the Secretary has certified a 
     conceptual design. This limitation would apply to 
     construction projects with a total estimated cost in excess 
     of $2.0 million. The provision would provide an exception in 
     the case of emergencies.
       The Senate amendment contained a similar provision (sec. 
     3125) that would limit that Secretary's authority to 
     construction projects with a total estimated cost in excess 
     of $5.0 million. The Senate amendment would also require the 
     Secretary to provide a report on each conceptual design 
     completed under this paragraph.
       The House recedes with an amendment that would exempt 
     construction project with a total estimated cost of less than 
     $2.0 million.
     Authority for emergency planning, design, and construction 
         activities (sec. 3126)
       The House bill contained a provision (sec. 3126) that would 
     permit, in addition to any authorized advance planning and 
     construction design, the Secretary of Energy to perform 
     planning and design with available funds for any Department 
     of Energy national security program construction project 
     whenever the Secretary determines that the design must 
     proceed expeditiously to protect the public health and 
     safety, to meet the needs of national defense, or to protect 
     property.
       The Senate amendment contained an identical provision (sec. 
     3126).
       The conference agreement includes this provision.
     Funds available for all national security programs of the 
         Department of Energy (sec. 3127)
       The House bill contained a provision (sec. 3127) that would 
     authorize amounts appropriated for management and support 
     activities and for general plant projects to be made 
     available for use, when necessary, in connection with all 
     national security programs of the Department of Energy.
       The Senate amendment contained an identical provision (sec. 
     3127).
       The conference agreement includes this provision.
     Availability of Funds (sec. 3128)
       The House bill contained a provision (sec. 3128) that would 
     authorize amounts appropriated for operating expenses or for 
     plant and capital equipment to remain available until 
     expended.
       The Senate amendment contained an identical provision (sec. 
     3128).
       The conference agreement includes this provision.

   Subtitle C--Program Authorizations, Restrictions, and Limitations


                     legislative provisions adopted

     Stockpile Stewardship Program (sec. 3131)
       The House bill contained a provision (sec. 3131) that would 
     authorize an additional $100.0 million for various stockpile 
     stewardship activities.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would authorize 
     an additional $85.0 million for stockpile stewardship and 
     management activities.
       The conferees direct that a portion of the additional funds 
     be used for enhanced surveillance of the nuclear weapons 
     stockpile, dual revalidation of the warheads in the nuclear 
     weapons stockpile, stockpile life extension programs, 
     production capability assurance programs for critical non-
     nuclear components, accelerating capability to produce 
     prototype war reserve-quality plutonium pits, and conducting 
     subcritical tests among other programs, as the Secretary 
     shall determine.
       The conferees note the postponement of subcritical 
     experiments at the Nevada Test Site. As a result, the 
     conferees direct the Secretary to report to the Congress 
     within ninety days of enactment of this Act on the reasons 
     for the postponement of the experiments planned to be 
     conducted in fiscal year 1996. As part of this report, the 
     conferees direct that the Secretary set out the basis for the 
     requirement to undertake subcritical tests to include the use 
     of the tests to baseline aspects of an aging stockpile, the 
     date at which those aspects might be expected to manifest 
     themselves in the stockpile, how the subcritical tests will 
     add to the baseline data on the reliability of the stockpile, 
     and any other information relevant to the decision to 
     undertake subcritical tests or to further postpone tests. 
     Such a report should be submitted both in classified and 
     unclassified form.
       Although the majority of additional funds authorized for 
     stockpile stewardship would be spent at the nuclear weapons 
     laboratories, the conferees strongly endorse and encourage a 
     continued, close collaboration among the weapons laboratories 
     and the production sites.
     Manfacturing infrastructure for nuclear weapons stockpile 
         (sec. 3132)
       The House bill contained a provision (sec. 3132) that would 
     authorize an additional $125.0 million for the stockpile 
     manufacturing infrastructure program at the four Department 
     of Energy (DOE) weapons production plants (Savannah River 
     Site, South Carolina; Pantex Plant, Texas; Kansas City Plant, 
     Missouri; and Y-12 Plant, Tennessee) established in section 
     3137 of the National Defense Authorization Act for Fiscal 
     Year 1996 (Public Law 104-106). The additional funds would be 
     used to: establish and maintain the necessary capability and 
     competencies fully to support the evaluation, surveillance, 
     maintenance, repair, and dismantlement of the nuclear 
     stockpile; provide flexibility to respond to new production 
     requirements; maintain and improve the manufacturing 
     technology necessary to support fully the stockpile; and 
     achieve significant reductions in operating costs for the 
     complex. This provision would also require the Secretary of 
     Energy to submit a report to the congressional defense 
     committees on obligations under the program.
       The Senate amendment contained a similar provision (sec. 
     3133) that would require DOE to pursue modernization 
     activities within the stockpile management program to assist 
     in assuring near-term confidence in the nuclear stockpile.
       The House recedes with an amendment that would provide 
     $90.0 million above the budget request to pursue a 
     modernization initiative within the stockpile management 
     program.
       The conferees find that the ``technology capability alone'' 
     approach to the nuclear weapons infrastructure reconstitution 
     requirement of the Nuclear Posture Review is insufficient to 
     meet national security requirements. The conferees are 
     troubled that the Department has not complied with 
     congressional direction included in section 3137 of the 
     National Defense Authorization Act for Fiscal Year 1996, and 
     continue to believe that this directed initiative is not only 
     prudent, but essential to maintaining nuclear weapons core 
     competence in order to repair and refabricate weapons at a 
     START I or START II stockpile level.
       The conferees agree that funds authorized under this 
     section shall be divided approximately evenly among the four 
     plants. Furthermore, the funds allocated for the Savannah 
     River Site shall be used in part to: consolidate further the 
     tritium capabilities, beginning in fiscal year 1997, a year 
     earlier than the Department's current plans; accelerate the 
     schedule for producing tritium; support a more robust and 
     aggressive rapid reconstitution approach for plutonium pit 
     manufacturing by initiating a pre-conceptual design study for 
     a replacement pit fabrication facility; and increase core 
     stockpile management operation and maintenance (O&M) 
     activities. The funds allocated for the Y-12 Plant shall be 
     used in part to: accelerate the consolidation of facilities 
     to manufacture and disassemble secondaries; modernize 
     production plant infrastructure elements required for long-
     term operations; and increase core stockpile management O&M 
     activities. The funds allocated for the Pantex Plant shall be 
     used in part for a consolidated pit packaging system and for 
     increased core stockpile management O&M activities. The funds 
     allocated for the Kansas City Plant shall be used in part to: 
     upgrade current manufacturing technologies; replace

[[Page H9363]]

     aging processing equipment; invest in information systems 
     upgrades to maintain compatibility with advancements at the 
     DOE national laboratories; and increase core stockpile 
     management O&M activities.
     Tritium production (sec. 3133)
       The Senate amendment contained a provision (sec. 3131) that 
     would authorize $160.0 million for tritium production, an 
     increase of $60.0 million to the budget request. Increases 
     would be used to accelerate the Department of Energy's phased 
     approach to restore tritium production, including proceeding 
     in parallel with site preparation for new tritium production 
     facility.
       The House bill would authorize $100.0 million for tritium 
     production (sec. 3101), the amount requested.
       The House recedes.
       The conferees note that the Department has established a 
     tritium production program in response to congressional 
     concerns about the lack of progress in this area. The 
     conferees consider this program critical to maintaining the 
     nation's nuclear deterrent capability.
       The conferees believe that the tritium production program 
     must be accelerated to meet the requirements of the Nuclear 
     Weapons Stockpile Memorandum, which identified a new tritium 
     production date of 2005 if a reactor option is selected, or 
     2007 if an accelerator option is chosen. The conferees 
     continue to be concerned with the Department's failure to 
     develop a technically sound data base sufficient to select a 
     preferred option in fiscal year 1997, and its continuing 
     underestimates of funding requirements in this area. On this 
     basis, the conferees agree to recommend an increase of $50.0 
     million to the budget request for a total fiscal year 1997 
     program of $150.0 million.
       The conferees direct the Department to accelerate its 
     phased approach to restoring the tritium production needs of 
     the United States, including proceeding in parallel with site 
     preparation for a new tritium production facility. The 
     conferees recognize the need to enhance ongoing accelerator 
     research and development and testing programs at the Los 
     Alamos National Laboratory, in conjunction with Savannah 
     River Site personnel. The conferees support these joint 
     efforts and direct the Department to provide the 
     congressional defense committees with a report on the 
     planning and design of the accelerator.
       The conferees also direct the continued test and 
     development of tritium targets for the light water reactor 
     program option by the Idaho National Engineering Laboratory, 
     and the initiation of planning for construction of a tritium 
     extraction facility that would be located at the selected 
     site identified in the Secretary's Record of Decision 
     relating to tritium production.
       The conferees strongly support full consideration of all 
     technically feasible tritium production options, including 
     accelerator, existing commercial reactor, and multipurpose 
     reactor options; among others.
     Modernization and consolidation of tritium recycling 
         facilities (sec. 3134)
       The House bill contained a provision (sec. 3132) that 
     referred to modernization and consolidation of tritium 
     recycling facilities.
       The Senate amendment contained a provision (sec. 3132) that 
     would provide an additional $6.0 million to the budget 
     request to upgrade existing tritium recycling plant 
     facilities at the Savannah River Site.
       The House recedes with an amendment that would also direct 
     the Secretary of Energy to modernize the Savannah River 
     tritium extraction facility.
       The conferees direct that, of the amounts authorized to be 
     appropriated in section 3101, $6.0 million shall be available 
     for tritium recycling plant upgrades and $3.0 million shall 
     be available for planning and designing a tritium extraction 
     facility at the Savannah River Site.
     Production of high explosives (sec. 3135)
       The House bill contained a provision (sec. 3133) that would 
     direct that the manufacture and fabrication of high 
     explosives and energetic materials for use a components in 
     nuclear weapons systems be carried out at the Pantex Plant, 
     Amarillo, Texas. The provision would also prohibit the 
     expenditure of funds to move, or prepare to move, the 
     manufacture and fabrication of high explosives and energetic 
     materials for use as components in nuclear weapons systems 
     from the Pantex Plant to any other Department of Energy (DOE) 
     site or facility.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would prohibit 
     the obligation of expenditure of fiscal year 1997 or prior 
     year funds to move, or prepare to move, the manufacture and 
     fabrication of high explosives and energetic materials for 
     use as components in nuclear weapons systems from the Pantex 
     Plant to any other site or facility.
       Nothing in this provision should be construed to limit 
     ongoing research, development and testing activities 
     involving high explosives and energetic materials at any 
     Department of Energy national laboratory.
     Limitation on use of funds for certain research and 
         development purposes (sec. 3136)
       The House bill contained a provision (sec. 3134) that would 
     reduce beginning in fiscal year 1997 the funding percentage 
     for Laboratory-Directed Research and Development (LDRD) 
     activities to two percent. The House provision would prohibit 
     expenditure of funds authorized for LDRD activities in fiscal 
     year 1997 until 15 days after the Secretary of Energy issued 
     a report on the manner in which such funds are planned to be 
     used.
       The Senate amendment contained a provision (sec. 3134) that 
     would limit the use of LDRD and technology transfer program 
     funds appropriated or otherwise made available to the 
     Department in fiscal year 1997 under Section 3101 of this Act 
     to activities that support the national security mission of 
     the Department. This provision extends the limits described 
     in section 3141 of the National Defense Authorization Act for 
     Fiscal Year 1996 for another year.
       The House recedes.
       The conferees believe that the scientific and engineering 
     challenges embodied in the emerging stockpile stewardship and 
     stockpile management programs are sufficient to sustain the 
     preeminence of the laboratories in the areas of science and 
     engineering.
       The conferees encourage the Department of Energy national 
     laboratories to direct a significant portion of these funds 
     to validating and implementing new technology for insertion 
     in the Navy's submarine construction program for the four 
     transition submarines to built between fiscal years 1998 and 
     2003. This effort should be a cooperative venture among the 
     national laboratories, U.S. industry, and the Navy.
     Prohibition on funding nuclear weapons activities with the 
         People's Republic of China (sec. 3137)
       The House bill contained a provision (sec. 3135) that would 
     prohibit the obligation or expenditure of funds for any 
     cooperative nuclear weapons technology programs, to include 
     stockpile stewardship and safety programs with the People's 
     Republic of China (PRC). The provision would also require the 
     Department of Energy to report to Congress on past and 
     planned discussions or activities between the United States 
     and the PRC.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment making technical 
     changes and changing the date on which the report shall be 
     submitted.
       The conferees note that it is possible that United States 
     national security interests might warrant cooperation on 
     nuclear weapons use controls. The conferees request that the 
     Secretary of Defense and the Secretary of Energy report on 
     whether having authority to undertake cooperative programs 
     with regard to use controls would be in the national security 
     interest of the United States.
     International cooperative stockpile stewardship programs 
         (sec. 3138)
       The House bill contained a provision (sec. 3136) that would 
     prohibit the use of fiscal year 1997 and prior year funds to 
     conduct activities associated with international cooperative 
     stockpile stewardship programs, with the exception of 
     activities conducted with the United Kingdom and France.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would make clear 
     that the prohibition contained in subsection (a) does not 
     apply to activities carried out under the Cooperative Threat 
     Reduction (CTR) program as defined in this Act.
     Temporary authority relating to transfers of defense 
         environmental management funds (sec. 3139)
       The House bill contained a provision (sec. 3137) that would 
     direct the Secretary of Energy to grant authority to a site 
     manager to transfer up to $5.0 million between program 
     functions within his jurisdiction or to transfer a similar 
     sum between projects within his area of operation. A site 
     manager would only be authorized to conduct such a transfer 
     one time in a fiscal year to or from each program or project. 
     The provision would establish a limited expansion of the 
     Department's current reprogramming authority and would allow 
     a site manager to transfer money based on a finding that the 
     transfer is necessary to reduce a risk to health, safety, or 
     the environment, or to assure the most efficient use of site 
     environmental management funds.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would direct the 
     Secretary of Energy to report to Congress on the efficiency 
     of the authority and whether the Secretary believes that the 
     authority should be extended.
     Management structure for nuclear weapons production 
         facilities and nuclear weapons laboratories (sec. 3140)
       The House bill contained a provision (sec. 3138) that 
     would: impose a limitation on the delegation of authority; 
     require consultations with area offices of the Department of 
     Energy (DOE); require DOE area offices to report directly to 
     DOE Headquarters; require the Secretary of Energy to provide 
     a Defense Programs reorganization plan and report; and 
     require establishment of a Defense Programs Management 
     Council.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Accelerated schedule for isolating high-level nuclear waste 
         at the Defense Waste Processing Facility, Savannah River 
         Site (sec. 3141)
       The Senate amendment contained a provision (sec. 3135) that 
     would require the Secretary of Energy to accelerate the 
     schedule for the isolation of high-level nuclear waste in 
     glass canisters at the Savannah River Site, if acceleration 
     would result in long-

[[Page H9364]]

     term savings to the Federal Government and if it would 
     accelerate the removal and isolation of waste from long-term 
     storage tanks at the site.
       The House bill contained no similar provision.
       The House recedes.
       The conferees believe that accelerating the treatment and 
     stabilization of high-level wastes will significantly reduce 
     out-year waste management costs and that the Department of 
     Energy should not restrict canister production capability and 
     capacity because of limited funds within the overall 
     Environmental Management budget. Therefore, the conferees 
     authorize an additional $15.0 million for the Department to 
     maximize canister production at Savannah River if the 
     aforementioned criteria are met.
     Processing and treatment of high-level nuclear waste and 
         spent nuclear fuel rods (sec. 3142)
       The Senate amendment contained a provision (sec. 3136) that 
     would authorize an additional $43.0 million above the budget 
     request for the Department of Energy (DOE), for the F-canyon 
     and H-canyon facilities. The provision would also provide for 
     the Implementation of the Department's plan to address the 
     Defense Nuclear Facility Safety Board (DNFSB) Recommendation 
     94-1 concerning the processing of spent nuclear fuel rods and 
     other nuclear material at the Savannah River Site. An 
     additional $15.0 million above the budget request would be 
     authorized for the DOE National Spent Fuel Program to support 
     program planning, fuel characterization, transportation 
     planning, waste acceptance criteria development, and 
     technology development, that are necessary to move forward 
     toward a permanent disposition of DOE-controlled spent fuel.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require any 
     funds made available under this section to the Idaho National 
     Engineering Laboratory to be considered as partial 
     fulfillment of the settlement agreement entered into by the 
     United States with the State of Idaho on October 17, 1995.
       The conferees also incorporated portions of the Senate 
     amendment relating to ``Plans for Activities to Process 
     Nuclear Materials and Clean up Nuclear Waste at the Savannah 
     River Site'' (Sec. 3154). This provision would require the 
     Secretary of Energy to prepare a near-term plan for the 
     treatment, packaging, and disposal of spent nuclear fuel 
     located at or anticipated to be shipped to the Savannah River 
     Site. Such a plan would address any requirements for 
     upgrading and improving the F-canyon and H-canyon material 
     processing facilities necessary to meet DNFSB 
     recommendations. The provision would require the Secretary of 
     Energy to prepare a multi-year utilization plan for the F-
     canyon and H-canyon material processing facilities.
       The multi-year program plan should address how the 
     Department proposes to sue these facilities for efficient 
     management, stabilization, and disposition of nuclear 
     materials such as surplus uranium and plutonium, domestic and 
     foreign spent fuel, and any other nuclear materials requiring 
     stabilization to be received at the Savannah River Site. The 
     plan should provide options for chemical processing, 
     reduction, and isolation of nuclear materials. The plan 
     should also identify how the Department proposes to ensure 
     that any fissionable materials that may be separated or 
     purified in the canyons will not be used for nuclear weapons 
     activities.
       The provision would further require the Secretary of Energy 
     to continue operations and maintain a high state of readiness 
     at the F-canyon and H-canyon facilities, as recommended by 
     the DNFSB.
       The conferees understand that a strategic goal of the DOE 
     Environmental Management (EM) program is to manage or 
     eliminate urgent risks in the EM system. The conferees 
     believe that DOE created an urgent risk situation with the 
     fiscal year 1995 consolidation decision regarding storage of 
     DOE spent nuclear fuel rods at the Idaho National Engineering 
     Laboratory (non-aluminum clad) and at the Savannah River Site 
     (aluminum clad). The National Defense Authorization Act for 
     Fiscal Year 1996 required the initiation of a specific 
     program for the disposition of spent nuclear fuel rods. The 
     conferees continue to be concerned with the Department's 
     inadequate progress in establishing a credible program and 
     with the under-utilization of the Department's resources. A 
     clearly defined plan and commitment are necessary for the 
     safe storage, processing, and ultimate disposition of these 
     materials in a permanent repository.
       The conferees agree with the DNFSB that both F-canyon and 
     H-canyon facilities at the Savannah River Site have an 
     important future role.
     Projects to accelerate closure activities at defense nuclear 
         facilities (sec. 3143)
       The House bill contained a provision (sec. 3102) to provide 
     additional funding to Department of Energy field sites for 
     the purpose of accelerating clean up and facility closure 
     activities.
       The Senate amendment contained similar provisions in 
     various sections.
       The conferees agree to a provision that would provide more 
     detailed guidance to the Department on the criteria to be 
     used in implementing projects to accelerate the closure or 
     decommissioning of defense nuclear facilities. The conferees 
     recommend the creation of a new initiative and authorize 
     additional funding for closure acceleration projects at sites 
     such as Rocky Flats, Hanford, Oak Ridge, Savannah River, and 
     Idaho, where additional funding could be used to reduce life-
     cycle costs significantly through the acceleration of 
     existing activities, initiation of cost reducing deactivation 
     and decommissioning activities, and the application of 
     enhanced cleanup technologies.
       The conferees note that the National Defense Authorization 
     Act for Fiscal Year 1996 (Public Law 104-106) required the 
     Secretary of Energy to accelerate the schedule for remedial 
     activities at sites where the accelerated schedule will 
     achieve meaningful, long-term cost savings to the Federal 
     Government and accelerate the release of land for local 
     reuse. In reviewing the sites selected pursuant to the last 
     year's program, the conferees are concerned that the 
     additional funding provided was used on relatively small 
     projects and that the long term impact on reducing life cycle 
     costs throughout the defense nuclear complex will be minimal.
       It is for this reason that the conferees established 
     additional criteria to assure that the projects selected will 
     achieve significant long-term cost savings to the Federal 
     Government. The conferees believe that taxpayers must see 
     real progress if they are to continue to support large 
     expenditures in environmental management funds that have 
     increased five-fold in just seven years.
       To assure management discipline, the Secretary would be 
     required to develop a plan that will: define clearly the 
     delineated scope of work; demonstrate that, where required, 
     regulatory agreements are in place with appropriate 
     regulatory authorities that would allow for the successful 
     completion of the project; and demonstrate support of State 
     and local elected officials.
       Contracts for the performance of these projects should be 
     performance and incentive based and not the traditional cost 
     plus contracts. While the conferees believe that contractors 
     should bear the risk for non-performance of activities within 
     their control, it is important that provisions be made to 
     include traditional commercial force majeure and risk sharing 
     concepts. All projects selected under this program must be 
     completed within 10 years.
       Finally, with respect to the selection of projects that 
     meet the general eligibility requirements, the Secretary is 
     required to select those projects that will result in the 
     most significant long-term cost savings to the government and 
     the most significant reduction of imminent risk. Multi-year 
     contracting authority is granted to the Secretary to carry 
     out projects selected under this section and funds 
     appropriated would remain available until expended. The clear 
     intent is to identify those projects that are capable of 
     being accelerated using currently available technology and to 
     reward those sites that are aggressively seeking closure or 
     decommissioning of existing facilities. To encourage closure, 
     the conferees have made it clear that the existing budget 
     projections for sites are not to be reduced based on the 
     award of funding under this section for cleanup and closure.
       The conferees have included language to the effect that 
     nothing in this section is to be construed as modifying 
     applicable statutory or regulatory environmental restoration 
     requirements. The conferees have included initial funding for 
     this program as a separate line item in section 3102 of this 
     title.
     Payment of costs of operation and maintenance of 
         infrastructure at Nevada Test Site (sec. 3144)
       The Senate amendment contained a provision (sec. 3138) that 
     would permit the Department of Energy to defer charging the 
     Department of Defense overhead costs for work-for-others 
     activities carried out at the Nevada Test Site.
       The House bill contained no similar provision.
       The House recedes.

                       Subtitle D--Other Matters


                     legislative provisions adopted

     Report on plutonium pit production and remanufacturing plans 
         (sec. 3151)
       The House bill contained a provision (sec. 3142) that would 
     require the Secretary to submit to the congressional defense 
     committees a report on plans for achieving a capability to 
     produce and remanufacture plutonium pits.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Amendments relating to baseline environmental management 
         reports (sec. 3152)
       The House bill contained a provision (sec. 3143) that would 
     amend section 3153 of the National Defense Authorization Act 
     for Fiscal Year 1994 (Public Law 104-360) to authorize the 
     submission of the Baseline Environmental Management Report on 
     a biennial basis rather than an annual basis.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Requirement to develop future use plans for environmental 
         management program (sec. 3153)
       The House bill contained a provision (sec. 3144) that would 
     require the Secretary of Energy to develop and implement, as 
     part of the Defense Environmental Restoration and Waste 
     Management Program, a future land use plan at sites where the 
     Secretary is planning or implementing environmental 
     restoration activities. The provision would direct the 
     creation of a future use advisory

[[Page H9365]]

     board at defense nuclear facilities where the Secretary of 
     Energy intends to develop a future use plan and there is no 
     existing advisory board.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would replace 
     references to future use advisory boards with site specific 
     advisory boards.
     Report on Department of Energy liability at Department 
         Superfund sites (sec. 3154)
       The Senate amendment contained a provision (sec. 3161) that 
     would require the Secretary of Energy to carry out a study of 
     sites controlled or operated by the Department of Energy to 
     determine the extent, the valuation of the injury, the 
     destruction, or loss of natural resources under section 
     107(a)(4)(c) of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 
     9607(a)(4)(c). The Secretary would then submit a report to 
     Congress on the results of the study.
       The House bill contained no similar provision.
       The House recedes with an amendment that clarifies the 
     scope and methodology of the study.
     Requirement for annual five-year budget for the national 
         security programs of the Department of Energy (sec. 3155)
       The Senate amendment contained a provision (sec. 3151) that 
     would require the Secretary of Energy to submit an annual 
     National Security Five-Year Budget Plan to the congressional 
     defense committees. The plan would be submitted no later than 
     the day on which the President's annual budget request is 
     submitted to Congress.
       The House bill contained no similar provision.
       The House recedes.
       The Secretary shall obligate no more than ninety-five 
     percent of the Department's annual appropriation for Atomic 
     Energy Defense Activities until the plan is submitted to the 
     congressional defense committees. The conferees direct the 
     Secretary of Energy to submit the plan for fiscal years 1997-
     2001 as soon as possible, but no later than September 30, 
     1996.
     Requirements for Department of Energy weapons activities 
         budgets for fiscal years after fiscal year 1997 (sec. 
         3156)
       The Senate amendment contained a provision (sec. 3152) that 
     would require the Department of Energy to relate the elements 
     of its nuclear weapons program budget submission to the 
     specific requirements of the Nuclear Weapons Stockpile 
     Memorandum and the Nuclear Posture Review. In the context of 
     that submission, the Secretary of Energy would be required to 
     provide a long-term program plan, and a near-term program 
     plan for the certification and stewardship of the nuclear 
     stockpile.
       The House bill contained no similar provision.
       The House recedes.
     Repeal of requirement relating to accounting procedures for 
         Department of Energy funds (sec. 3157)
       The Senate amendment contained a provision (sec. 3153) that 
     would repeal section 3151 of the National Defense 
     Authorization Act for Fiscal Year 1995. In 1994, at the time 
     this provision was enacted, the Department of Energy did not 
     have adequate control of uncosted and unobligated balances in 
     a number of areas. In many instances, the Department could 
     not identify the original fiscal year for which uncosted 
     balances were appropriated.
       The House bill contained no similar provision.
       The House recedes.
       The conferees note that subsequent to the enactment of the 
     National Defense Authorization Act for Fiscal year 1995, the 
     Department succeeded in significantly reducing its uncosted 
     and unobligated balances. In addition, the Department has 
     initiated a regular reporting methodology that allows the 
     congressional defense committees to track unobligated and 
     uncosted funds appropriated for national security activities. 
     The conferees support the continued use of such reports as a 
     cost effective substitute for section 3151.
     Update of report on nuclear test readiness postures (sec. 
         3158)
       The Senate amendment contained a provision (sec. 3155) that 
     would require an update of the Nuclear Test Readiness Posture 
     Report required by the National Defense Authorization Act for 
     Fiscal Year 1996. That report pertains to the readiness and 
     maintenance of the requisite underground testing expertise at 
     the Nevada Test Site and at the Nuclear Weapons Laboratories. 
     The report would be due to the congressional defense 
     committees no later than February 15, 1997.
       The House bill contained no similar provision.
       The House recedes with an amendment to change the due date 
     of the report to June 1, 1997.
     Reports on critical difficulties at nuclear weapons 
         laboratories and nuclear weapons production plants (sec. 
         3159)
       The Senate amendment contained a provision (sec. 3156) that 
     would require the head of any nuclear weapons laboratory or 
     nuclear weapons production plant to notify the Assistant 
     Secretary for Defense Programs immediately if there is any 
     difficulty associated with the nuclear weapons complex that 
     would have a significant bearing on the confidence relating 
     to the nuclear stockpile. The provision would also require 
     the Nuclear Weapons Council to notify Congress in the event 
     that the Council become aware of any difficulties within the 
     purview of the Council.
       The House bill contained no similar provision.
       The House recedes.
     Extension of applicability of notice- and wait- required 
         regarding proposed cooperation agreements (sec. 3160)
       The Senate amendment contained a provision (sec. 3157) that 
     would extend the date by which notice is to be made to 
     Congress regarding the release of restricted data or formerly 
     restricted data pursuant to a cooperative agreement with a 
     foreign country by amending Section 3155(b) of the National 
     Defense Authorization Act for Fiscal Year 1995.
       The House bill contained no similar provision.
       The House recedes with an amendment to extend until October 
     1, 1997, the authority of the Department of Energy and the 
     Department of Defense to release data, as necessary, to 
     further fissile material and other weapons material control 
     and accountability program; to support atomic weapons control 
     and accountability; to assist in treaty verification; and to 
     assist in establishing a uniform international system of 
     classification.
     Sense of Senate relating to redesignation of Defense 
         Environmental Restoration and Waste Management Program 
         (sec. 3161)
       The Senate amendment contained a provision (sec. 3158) that 
     would express the sense of the Congress that the Department 
     of Energy (DOE) redesignate the Defense Environmental 
     Restoration and Waste Management Program (also known as the 
     Environmental Management Program) as the Defense Nuclear 
     Waste Management Program. The provision would further direct 
     the Department of Energy to prepare and transmit to the 
     congressional defense committees, no later than January 31, 
     1997, a report that describes any difficulties or problems 
     that arise as a result of the name change, including any 
     related costs.
       The House bill contained no similar provision.
       The House recedes with an amendment that would change the 
     provision to a sense of the Senate.
     Commission on Maintaining United States Nuclear Weapons 
         Expertise (sec. 3162)
       The Senate amendment contained a provision (sec. 3159) that 
     would direct the Department of Energy to organize a high 
     level commission to address problems associated with 
     attracting a new generation of nuclear weapons experts to 
     ensure the safety and reliability of the U.S. nuclear 
     stockpile.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     the Secretary of Energy to appoint two members to the 
     commission and would require that all commission appointments 
     be made no later than 60 days after the date of enactment of 
     this section.
     Sense of the Congress regarding reliability and safety of 
         remaining nuclear forces (sec. 3163)
       The Senate amendment contained a provision (sec. 3160) that 
     would express concerns about maintaining confidence in the 
     nuclear stockpile and our Nation's commitment to ensuring the 
     safety, security, reliability, and performance of U.S. 
     nuclear forces.
       The House bill contained no similar provision.
       The House recedes.
       The conferees remain concerned with the ability of the 
     Department of Defense and the Department of Energy to 
     maintain confidence in the safety and reliability of the 
     strategic nuclear weapons stockpile in the absence of 
     underground nuclear tests. As long as the United States 
     continues to depend on a deterrent nuclear force, as 
     articulated in the Nuclear Posture Review, it is necessary 
     for both the Department of Defense and the Department of 
     Energy to maintain the following: weapons production 
     capabilities and capacities; adequate funding to maintain the 
     remaining stockpile at a state of full readiness; ability to 
     meet full fabrication and tritium production requirements; 
     capabilities for tritium recycling and pit manufacturing; 
     and, to replace underground nuclear testing, a successful 
     science-based stockpile stewardship program.
     Study on worker protection at the Mound facility in (sec. 
         3164)
       The House bill contained a provision (sec. 3145) that would 
     authorize, out of existing funds, $5.0 million to be used to 
     enhance worker health and safety at the Department of 
     Energy's (DOE) Mound facility near Miamisburg, Ohio.
       The Senate amendment contained a similar provision (sec. 
     3166) that would require DOE to prepare a report on programs 
     and projects undertaken to protect worker health and safety 
     at the DOE Mound facility.
       The House recedes.
     Fiscal year 1998 funding for Greenville Road Improvement 
         Project, Livermore, California (sec. 3165)
       The Senate amendment contained a provision (sec. 3162) that 
     would require the Secretary of Energy to include in the 
     fiscal year 1998 budget a request for sufficient funds to pay 
     the United States portion of the cost of transportation 
     improvements under the Greenville Road Improvement Project, 
     Livermore, California.

[[Page H9366]]

       The House bill contained no similar provision.
       The House recedes.
     Fellowship program for development of skills critical to 
         Department of Energy nuclear weapons complex (sec. 3166)
       The Senate amendment contained a provision (sec. 3137) that 
     would require the Department of Energy (DOE) to initiate a 
     university fellowship program for recruiting engineers and 
     other technical experts at nuclear weapons plants. The 
     Department would be authorized to use up to $5.0 million of 
     the amount authorized for Stockpile Management activities to 
     carry out the plant fellowship program.
       The house bill contained no similar provision.
       The House recedes.
       In the National Defense Authorization Act for fiscal Year 
     1996, the Department was directed to initiate a university 
     fellowship program for recruiting the next generation of 
     engineers and technical experts for the modernized nuclear 
     weapons repair and refabrication plants. The Department was 
     directed to fund the program through authorized 
     appropriations within the stockpile management program. The 
     Department has not complied with this congressional 
     direction.
       Testimony before the Senate Armed Services Committee has 
     suggested that DOE's skilled workforce for nuclear weapons 
     design, fabrication, and remanufacturing is eroding, due both 
     to worker aging and limited near-term challenges. The 
     conferees do not propose a massive remanufacturing approach, 
     but they do expect that DOE will take the steps necessary to 
     attract, mentor and retain the next generation of nuclear 
     weapons refabrication experts. The absence of such a program 
     could accentuate the negative impacts of the progressing 
     ``brain drain,'' identified in testimony before the Senate 
     Armed Services Committee and could undermine long-term 
     efforts to repair and rebuild aging nuclear weapons in the 
     stockpile.

    Subtitle E--Defense Nuclear Environmental Cleanup and Management


                     legislative provisions adopted

     Defense nuclear environmental cleanup and management (sec. 
         3171-3180)
       The House bill contained a series of provisions (secs. 
     3551-3157) that would establish cost-effective management 
     mechanisms and innovative technologies for the purpose of 
     improving the Department of Energy (DOE) Defense 
     Environmental Restoration and Waste Management Program. These 
     provisions would apply to any DOE defense nuclear facility 
     with a fiscal year 1996 Environmental Management (EM) budget 
     of $350.0 million or more. The Secretary of Energy would 
     delegate oversight authority to the site manager and 
     encourage the site manager to promote deployment of 
     innovative remediation technologies. The House bill also 
     would direct the Secretary to develop and implement a program 
     to encourage the use of performance-based contracts, as 
     opposed to cost-plus contracts.
       The Senate amendment contained a series of similar 
     provisions (secs. 3171-3179) that would provide for a pilot 
     program at the Hanford Reservation that would demonstrate 
     cost-effective management mechanisms and innovative 
     technologies to be used in environmental restoration and 
     remediation at other defense nuclear facilities. Upon request 
     by a State, the Secretary of Energy would have the discretion 
     to include other defense nuclear facilities in the pilot 
     program. The Secretary would delegate oversight authority to 
     the site manager and the site manager would have the direct 
     authority to promote the demonstration, certification, and 
     implementation of innovative remediation technologies. The 
     Senate provision also included a congressional reporting 
     requirement and a sunset provision.
       The Senate recedes with an amendment that would adopt the 
     following elements for the cost-effective management and 
     innovative technologies demonstration program: delegation of 
     direct oversight authority to the site manager; automatic 
     applicability to DOE facilities with a fiscal year 1996 EM 
     budget of $350.0 million or more and applicability to other 
     facilities upon application by the governor of a State and 
     approval by the Secretary of Energy; Secretarial development 
     and implementation of performance-based contracts program; 
     site manager promotion and deployment of innovative 
     remediation technologies; a congressional reporting 
     requirement; and a program termination date.

 Subtitle F--Waste Isolation Pilot Plant Land Withdrawal Act Amendments


                     legislative provisions adopted

     Waste Isolation Pilot Plant Land Withdrawal Act amendments 
         (secs. 3181-3191)
       The Senate amendment contained a series of provisions 
     (secs. 3181-3191) that would modify the Waste Isolation Pilot 
     Plant (WIPP) Land Withdrawal Act (Public Law 102-579). 
     Requirements of the WIPP Land Withdrawal Act associated with 
     the now-canceled WIPP ``test phase'' would be eliminated. The 
     prerequisites to opening WIPP would be clarified and the 180-
     day congressional notification requirement would be reduced 
     to 30 days. The requirement that WIPP meet land disposal 
     restrictions of the Solid Waste Disposal Act (42 U.S.C. 6901 
     et seq.) would be eliminated. DOE would be granted greater 
     authority to determine whether engineered or natural barriers 
     are sufficient to meet compliance with applicable 
     environmental regulations. The Environmental Protection 
     Agency would retain its ability to conduct timely reviews of 
     DOE compliance applications. A sense of the Congress 
     provision would encourage the Secretary to pursue all 
     necessary actions to begin waste disposal operations not 
     later than November 30, 1997. Finally, the Department of 
     Energy would be authorized to make a one-time payment of 
     $20.0 million to the State of New Mexico to begin road 
     upgrades necessary to begin full scale shipping operations to 
     WIPP. This payment would be considered an advance payment of 
     amounts due to the State of New Mexico pursuant to the 
     provisions of section 15(a) of the WIPP Land Withdrawal Act.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment that would 
     add a provision that would reduce by one the total number of 
     payments due to the State of New Mexico under section 15(a) 
     of the WIPP Land Withdrawal Act and clarify that all 
     applicable health and safety regulations would be met prior 
     to commencement of disposal operations.


                   legislative provisions not adopted

     Report on Nuclear Weapons Stockpile Memorandum
       The House bill contained a provision (sec. 3141) that would 
     require the President to submit to the congressional defense 
     committees a copy of the Nuclear Weapons Stockpile 
     Memorandum, and to submit reports on any future updates or 
     changes to the Memorandum.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees direct the Department of Energy to continue 
     to provide members of Congress and congressional staff (with 
     the appropriate security clearance) with access to the 
     Nuclear Weapons Stockpile Memorandum.
     Plans for activities to process nuclear materials and clean 
         up nuclear waste at the Savannah River Site
       The Senate amendment contained a provision (sec. 3154) that 
     would require the Secretary of Energy to develop a multi-year 
     program plan to use the H-canyon and the F-canyon materials 
     processing facilities for treating Department of Energy and 
     foreign spent nuclear fuel rods. The provision would also 
     require the Secretary of Energy to develop a near-term plan 
     on F-canyon and H-canyon utilization. The Secretary would be 
     required to continue operations and maintain a high state of 
     readiness at the F-canyon and H-canyon facilities.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees combined the elements of this provision with 
     the provision regarding processing of high-level nuclear 
     waste and spent nuclear fuel.
     Opportunity for review and comment by State of Oregon 
         regarding certain remedial actions at Hanford Reservation
       The Senate amendment contained a provision (sec. 3163) that 
     would, in consultation with the signatories to the Hanford 
     Reservation, Washington, Tri-Party Agreement for site 
     remediation, require the Site Manager to provide the State of 
     Oregon with an opportunity to review and comment upon any 
     information available to the State of Washington under the 
     agreement. The provision also contained certain limitations 
     related to the State of Oregon's access to information and 
     participation in the site remediation process.
       The House bill contained no similar provision.
       The Senate recedes. The conferees determined that the 
     provision would establish a bad precedent regarding a state's 
     right to participate in remedial activities conducted at a 
     site within a neighboring state.
     Sense of Senate on Hanford memorandum of understanding
       The Senate amendment contained a provision (sec. 3164) that 
     would express the sense of Senate that the State of Oregon 
     has the authority to enter into a memorandum of understanding 
     with the State of Washington, or a memorandum of 
     understanding with the State of Washington and the Site 
     Manager of the Hanford Reservation, Washington, to address 
     issues of mutual concerns at the site.
       The House bill contained no similar provision.
       The Senate recedes.

          Title XXXII--Defense Nuclear Facilities Safety Board


                     legislative provisions adopted

                Title XXXIII--National Defense Stockpile


                         legislative provisions

        Subtitle A--Authorization of Disposals and Use of Funds


                     legislative provisions adopted

     Overview
       The budget request for fiscal year 1997 contained an 
     authorization of $17.0 million for the Defense Nuclear 
     Facilities Safety Board. The House bill would authorize $17.0 
     million. The Senate amendment would authorize $17.0 million. 
     The conferees recommended an authorization of $17.0 million. 
     Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.
     Stockpile definitions (sec. 3301)
       The House bill contained a provision (sec. 3301) that would 
     define the National Defense

[[Page H9367]]

     Stockpile and the National Defense Stockpile Transaction 
     Fund.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Authorized uses of stockpile funds (sec. 3302)
       The House bill contained a provision (sec. 3302) that would 
     authorize the National Defense Stockpile Manager to obligate 
     up to $60.0 million of the funds in the National Defense 
     Stockpile Transaction Fund for the operation of the National 
     Defense Stockpile.
       The Senate amendment contained an identical provision.
       The conference agreement includes this provision.
     Additional authority to dispose of materials in National 
         Defense Stockpile (sec. 3303)
       The Senate amendment contained a provision (sec. 3303) that 
     would authorize the Secretary of Defense to dispose of 
     specific materials in the National Defense Stockpile in order 
     to offset the lost revenues resulting from the amendments 
     made by subsection (a) of section 4303 of the National 
     Defense Authorization Act for Fiscal Year 1996 (Public Law 
     104-106).
       The House bill contained no similar provision.
       The House recedes with an amendment that would change the 
     materials authorized for disposal and use the revenues to 
     offset those lost due to amendments made by subsection (a) of 
     section 4303 of the National Defense Authorization Act for 
     Fiscal Year 1996 and other direct spending provisions in this 
     bill.

                    Subtitle B--Programmatic Change


                     legislative provisions adopted

     Biennial report on stockpile requirements (sec. 3311)
       The House bill contained a provision (sec. 3311) that would 
     amend the Strategic and Critical Materials Stock Piling Act, 
     section 3203 of the National Defense Authorization Act for 
     Fiscal Year 1988 (Public Law 100-180), concerning the 
     requirements addressed in the report provided to Congress 
     every other year by the Department of Defense (DOD).
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     report to identify the amount of materials that would be 
     necessary to replace the materiel and equipment that would be 
     required after a military conflict.
     Notification requirements (sec. 3312)
       The House bill contained a provision (sec. 3312) that would 
     update several sections of the Strategic and Critical 
     Materials Stock Piling Act, section 3203 of the National 
     Defense Authorization Act for Fiscal Year 1988 (Public Law 
     100-180), to standardize reporting requirements throughout 
     the act. The provision would establish that all legislative 
     reporting waiting periods are to be 45 days.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Importation of strategic and critical materials (sec. 3313)
       The House bill contained an amendment (sec. 3313) that 
     would amend the Strategic and Critical Materials Stock Piling 
     Act, section 3203 of the National Defense Authorization Act 
     for Fiscal Year 1988 (Public Law 100-180), to remove 
     reference to ``communist-dominated country or area.''
       The Senate amendment contained no similar provision.
       The Senate recedes.


                   legislative provisions not adopted

     Disposal of certain materials in National Defense Stockpile
       The Senate amendment contained a provision (sec. 3302) that 
     would authorize the Secretary of Defense to dispose of 
     specific materials currently in the National Defense 
     Stockpile.
       The House bill contained no similar provision.
       The Senate recedes.

                 TITLE XXXIV--NAVAL PETROLEUM RESERVES


                     legislative provisions adopted

     Authorization of appropriations (sec. 3401)
       The House bill contained a provision (sec. 3401) that would 
     authorize the appropriation of $149.5 million for fiscal year 
     1997 for the Department of Energy for the operation of the 
     Naval Petroleum Reserves.
       The Senate amendment contained a similar provision (sec. 
     3401).
       The Senate recedes.
     Price requirement on sale of certain petroleum during fiscal 
         year 1997 (sec. 3402)
       The House bill contained a provision (sec. 3402) that would 
     require the Secretary of Energy to sell petroleum produced 
     for the Navy petroleum Reserves at no less than 90 percent of 
     the price of comparable oil.
       The Senate amendment contained no similar provision.
       The Senate recedes.

                  TITLE XXXV--PANAMA CANAL COMMISSION


                         legislative provisions

                     legislative provisions adopted

     Panama Canal Commission (secs. 3501-3549)
       The House bill contained several provisions (secs. 3501-
     3504) that would authorize expenditure of funds by the Panama 
     Canal Commission to cover its operating, maintenance, 
     administrative, and capital improvement expenses, and to 
     purchase vehicles built in the United States.
       The Senate amendment contained similar provisions (secs. 
     3501-3504).
       The Senate recedes with respect to the House provisions 
     authorizing expenditure of funds to cover expenses (secs. 
     3501, 3502, and 3504). The House recedes with respect to the 
     Senate provision (sec. 3503) that would authorize the 
     purchase of vehicles without the requirement that they be 
     built in the United States. The conferees note, however, that 
     the Commission has in the past purchased only vehicles built 
     in the United States and encourage the continuation of that 
     practice.
       The House bill also included provisions (secs. 3521-3550), 
     not in the Senate amendment, that would give the Commission 
     greater autonomy to facilitate the Senate amendment, that 
     would give the Commission greater autonomy to facilitate the 
     transition of the Canal to Panamanian control in December 
     1999. Most of these provisions would expand the Commission's 
     discretion in tailoring government employee regulations to 
     the unique needs of Commission personnel.
       The Senate recedes with respect to these House provisions, 
     with an amendment that would give the Commission the 
     authority to contract with Panamanian carriers for the 
     official travel of its Panamanian employees (sec. 3528) and 
     an amendment that specifies that U.S. Government agencies in 
     Panama may elect to discontinue the applicability of 
     provisions of the Panama Canal Employment System, a system 
     which is changing to reflect the transition to Panamanian 
     control, to their civilian employees (sec. 3530).

     From the Committee on National Security, for consideration of 
     the House bill and the Senate amendment, and modifications 
     committed to conference:
     Floyd Spence,
     Bob Stump,
     Duncan Hunter,
     John R. Kasich,
     Herbert H. Bateman,
     James V. Hansen,
     Curt Weldon,
     Joel Hefley,
     Jim Saxton,
     Randy ``Duke'' Cunningham,
     Stephen E. Buyer,
     Peter G. Torkildsen,
     Tillie K. Fowler,
     John M. McHugh,
     J.C. Watts, Jr.,
     John N. Hostettler,
     Saxby Chambliss,
     Van Hilleary,
     Alcee L. Hastings,
     G.V. Montgomery,
     Ike Skelton,
     John M. Spratt, Jr.,
     Solomon P. Ortiz,
     Owen Pickett,
     Glen Browder,
     Gene Taylor,
     Frank Tejeda,
     Paul McHale,
     Patrick J. Kennedy,
     Rosa L. DeLauro,
     As additional conferees from the Permanent Select Committee 
     on Intelligence, for consideration of matters within the 
     jurisdiction of that committee under clause 2 of rule XLVIII:
     Larry Combest,
     Jerry Lewis,
     Norm Dicks,
     As additional conferees from the Committee on Banking and 
     Financial Services, for consideration of sections 1085 and 
     1089 of the Senate amendment, and modifications committed to 
     conference:
     Michael N. Castle,
     Spencer Bachus,
     Henry Gonzalez,
     As additional conferees from the Committee on Commerce, for 
     consideration of sections 601, 741, 742, 2863, 3154, and 3402 
     of the House bill, and sections 345-47, 561, 562, 601, 1080, 
     2827, 3174, 3175, and 3181-91 of the Senate amendment, and 
     modifications committed to conference:
     Thomas Bliley,
     Michael Bilirakis,
     Provided that Mr. Richardson is appointed in lieu of Mr. 
     Dingell and Mr. Schaefer is appointed in lieu of Mr. 
     Bilirakis for consideration of sections 3181-91 of the Senate 
     amendment:
     Dan Schaefer,
     Provided that Mr. Oxley is appointed in lieu of Mr. Bilirakis 
     for the consideration of section 3154 of the House bill, and 
     sections 345-47, 3174, and 3175 of the Senate amendment:
     Michael G. Oxley,
     Provided that Mr. Schaefer is appointed in lieu of Mr. 
     Bilirakis for the consideration of sections 2863 and 3402 of 
     the House bill, and section 2827 of the Senate amendment:
     Dan Schaefer,
     As additional conferees from the Committee on Government 
     Reform and Oversight, for consideration of sections 332-36, 
     362, 366, 807, 821-25, 1047, 3523-39, 3542, and 3548 of the 
     House bill, and sections 636, 809(b), 921, 924, 925, 1081, 
     1082, 1101, 1102, 1104, 1105, 1109-34, 1401-34, and 2826 of 
     the Senate amendment, and modifications committed to 
     conference:
     W.F. Clinger,
     Provided that Mr. Horn is appointed in lieu of Mr. Mica for 
     consideration of sections 362, 366, 807, and 821-25 of the 
     House bill, and sections 809(b), 1081, 1401-34, and 2826 of 
     the Senate amendment:
     Stephen Horn,
     Provided that Mr. Zeliff is appointed in lieu of Mr. Mica for 
     consideration of section 1082 of the Senate amendment:
     Bill Zeliff,
     As additional conferees from the Committee on International 
     Relations, for consideration

[[Page H9368]]

     of sections 233-34, 237, 1041, 1043, 1052, 1101-05, 1301, 
     1307, and 1501-53 of the House bill, and sections 234, 1005, 
     1021, 1031, 1041-43, 1045, 1323, 1332-35, 1337, 1341-44, and 
     1352-54 of the Senate amendment, and modifications committed 
     to conference:
     Benjamin A. Gilman,
     Doug Bereuter,
     As additional conferees from the Committee on the Judiciary, 
     for consideration of sections 537, 543, 1066, 1080, 1088, 
     1201-16, and 1313 of the Senate amendment, and modifications 
     committed to conference:
     Henry Hyde,
     Bill McCollum,
     John Conyers Jr.,
     Provided that Mr. Moorhead is appointed in lieu of Mr. 
     McCollum for consideration of sections 537 and 1080 of the 
     Senate amendment:
     Carlos J. Moorhead,
     Provided that Mr. Smith of Texas is appointed in lieu of Mr. 
     McCollum for consideration of sections 1066 and 1201-16 of 
     the Senate amendment:
     Lamar Smith,
     As additional conferees from the Committee on Resources, for 
     consideration of sections 247, 601, 2821, 1401-14, 2901-13, 
     and 2921-31 of the House bill, and sections 251-52, 351, 601, 
     1074, 2821, 2836, and 2837 of the Senate amendment, and 
     modifications committed to conference:
     James V. Hansen,
     Jim Saxton,
     As additional conferees from the Committee on Science, for 
     consideration of sections 203, 211, 245, and 247 of the House 
     bill, and sections 211, 251-52, and 1044 of the Senate 
     amendment, and modifications committed to conference:
     Robert S. Walker,
     James Sensenbrenner Jr.,
     Jane Harman,
     As additional conferees from the Committee on Transportation 
     and Infrastructure, for consideration of sections 324, 327, 
     501, and 601 of the House bill, and sections 345-48, 536, 
     601, 641, 1004, 1009, 1010, 1311, 1314, and 3162 of the 
     Senate amendment, and modifications committed to conference:
     Bud Shuster,
     Bob Stump,
     Christopher H. Smith,
     G.V. Montgomery,
                                Managers on the Part of the House.

     Strom Thurmond,
     John Warner,
     Bill Cohen,
     John McCain,
     Dan Coats,
     Bob Smith,
     Dirk Kempthorne,
     Jim Inhofe,
     Rick Santorum,
     Sheila Frahm,
     Sam Nunn,
     Carl Levin,
     Ted Kennedy,
     Jeff Bingaman,
     Robert C. Byrd,
     Chuck Robb,
     J. Lieberman,
     Richard H. Bryan,
     Managers on the Part of the Senate.

                          ____________________