[Congressional Record Volume 143, Number 84 (Tuesday, June 17, 1997)]
[Senate]
[Pages S5791-S5875]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. THURMOND (for himself and Mr. Hollings):
  S. 915. A bill to amend the Harmonized Tariff schedule of the United 
States to suspend temporarily the duty on certain manufacturing 
equipment; to the Committee on Finance.


                      duty suspension legislation

  Mr. THURMOND. Mr. President, I rise today to introduce, along with 
Senator Hollings, a bill which will suspend the duties imposed on 
certain equipment used to manufacture earthmoving tires. Currently, 
these machines are not manufactured in the United States nor is a 
substitute readily available. Therefore, suspending the duties on these 
items would not adversely affect domestic industries.
  Mr. President, suspending the duty on these machines will benefit the 
consumers of earthmoving tires. Currently, demand for these tires 
exceeds supply and this suspension would not harm other manufacturers. 
I hope the Senate will consider this measure expeditiously.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 915

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

     SECTION 1. SUSPENSION OF DUTY ON CERTAIN MANUFACTURING 
                   EQUIPMENT.

       (a) In General.--Subchapter II of chapter 99 of the 
     Harmonized Tariff Schedule of the United States is amended by 
     inserting in numerical sequence the following new headings:

  ``9902.84.79  Calendaring or      Free    No        No       On or
                 other rolling               change    change   before
                 machines for                                   12/31/
                 rubber, valued at                              2000
                 not less than
                 $2,200,000 each,
                 numerically
                 controlled, or
                 parts thereof
                 (provided for in
                 subheading
                 8420.10.90,
                 8420.91.90, or
                 8420.99.90) and
                 material holding
                 devices or
                 similar
                 attachments
                 thereto..........
    9902.84.81  Shearing machines   Free    No        No       On or
                 used to cut                 change    change   before
                 metallic tissue                                12/31/
                 capable of a                                   2000
                 straight cut of 5
                 m or more, valued
                 at not less than
                 $750,000 each,
                 numerically
                 controlled
                 (provided for in
                 subheading
                 8462.31.00)......
    9902.84.83  Machine tools for   Free    No        No       On or
                 working wire of             change    change   before
                 iron or steel for                              12/31/
                 use in products                                2000
                 provided for in
                 subheading
                 4011.20.10,
                 valued at not
                 less than
                 $375,000 each,
                 numerically
                 controlled, or
                 parts thereof
                 (provided for in
                 subheading
                 8463.30.00)......
    9902.84.85  Extruders of a      Free    No        No       On or
                 type used for               change    change   before
                 processing                                     12/31/
                 rubber, valued at                              2000
                 not less than
                 $2,000,000 each,
                 numerically
                 controlled, or
                 parts thereof
                 (provided for in
                 subheading
                 8477.20.00 or
                 8477.90.80)......
    9902.84.87  Machinery for       Free    No        No       On or
                 molding,                    change    change   before
                 retreading, or                                 12/31/
                 otherwise forming                              2000
                 uncured,
                 unvulcanized
                 rubber for use in
                 processing
                 products provided
                 for in subheading
                 4011.20.10,
                 valued at not
                 less than
                 $800,000 each,
                 capable of
                 holding cylinders
                 measuring 114
                 centimeters or
                 more in diameter,
                 numerically
                 controlled, or
                 parts thereof
                 (provided for in
                 subheading
                 8477.51.00 or
                 8477.90.80)......
    9902.84.89  Sector mold press   Free    No        No       On or
                 machines used for           change    change   before
                 curing or                                      12/31/
                 vulcanizing                                    2000
                 rubber, valued at
                 not less than
                 $1,000,000 each,
                 weighing 135,000
                 kg or more,
                 numerically
                 controlled, or
                 parts thereof
                 (provided for in
                 subheading
                 8477.90.80)......
    9902.84.91  Sawing machines,    Free    No        No       On or
                 valued at not               change    change   before
                 less than                                      12/31/
                 $600,000 each,                                 2000.''
                 weighing 18,000
                 kg or more, for
                 working cured,
                 vulcanized rubber
                 described in
                 heading 4011
                 (provided for in
                 subheading
                 8465.91.00)......
 

       (b) Effective Date.--
       (1) General rule.--The amendment made by subsection (a) 
     applies with respect to goods entered, or withdrawn from 
     warehouse for consumption, on the date that is 15 days after 
     the date of enactment of this Act.
       (2) Retroactive application to certain entries.--
     Notwithstanding section 514 of the Tariff Act of 1930 (19 
     U.S.C. 1514) or any other provision of law, upon proper 
     request filed with the Customs Service before the 90th day 
     after the date of enactment of this Act, any entry, or 
     withdrawal from warehouse for consumption, of any goods 
     described in subheading 9902.84.79, 9902.84.81, 9902.84.83, 
     9902.84.85, 9902.84.87, 9902.84.89, or 9902.84.91 of the 
     Harmonized Tariff Schedule of the United States (as added by 
     subsection (a)) that was made--
       (A) on or after May 1, 1997; and
       (B) before the 15th day after the date of enactment of this 
     Act;

     shall be liquidated or reliquidated as though such entry or 
     withdrawal occurred on the date that is 15 days after the 
     date of enactment of this Act.

  Mr. HOLLINGS. Madam President, today, I, along with Senator Thurmond, 
introduce duty suspension legislation designed to permit the import of 
certain tire manufacturing equipment into the United States duty free. 
U.S. companies do not manufacture the custom equipment to be imported, 
and therefore its importation will not displace domestic sourcing. 
Moreover, because the product at issue is manufacturing equipment, it 
will assist in the creation of additional jobs in the tire 
manufacturing industry.
  I believe that this is the most appropriate use of duty suspension 
legislation. The custom imported product will not displace any product 
manufactured in the United States. Moreover, the imported product will 
assist in creating more productive capacity in the United States. This 
equipment will be used to manufacture a product that heretofore was not 
made in the United States. I am therefore hopeful that this new 
capacity can be used to supply both domestic and foreign needs and will 
increase employment in the tire manufacturing industry.
                                 ______
                                 
      By Mr. COCHRAN:
  S. 916. A bill to designate the U.S. Post Office building located at 
750 Highway 28 East in Taylorsville, MS, as the ``Blaine H. Eaton Post 
Office Building''; to the Committee on Governmental Affairs.


    THE BLAINE H. EATON POST OFFICE BUILDING DESIGNATION ACT OF 1997

  Mr. COCHRAN. Mr. President, I am pleased to introduce legislation 
designating the U.S. Post Office facility located in Taylorsville, MS, 
as the ``Blaine H. Eaton Post Office Building.''

[[Page S5792]]

  A native of Smith County, Mississippi, Mr. Eaton attended Jones 
Junior College from 1932-34 and was named Alumni of the Year in 1984. 
He also attended the University of Mississippi and George Washington 
Law School.
  He began his professional career as a farmer and cotton buyer for 
Anderson-Clayton Co. and in 1942, he became the first executive 
secretary to my predecessor in the Senate, U.S. Senator James O. 
Eastland. Blaine Eaton served our Nation in the U.S. Navy from 1944 to 
1946. Upon returning home from the war, he was elected to serve in the 
Mississippi State House of Representatives, and he effectively served 
the people of Smith County for 12 years. His leadership as chairman of 
the Highway and Highway Finance Committee resulted in the successful 
passage of the Farm-to-Market legislation that is still benefiting 
Mississippians today as the State Aid Road Program. After leaving 
public office in 1958, Blaine became the manager of the Southern Pine 
Electric Power Association. His outstanding service and accomplishments 
were recognized by the National Rural Electric Cooperative Association 
with the Clyde T. Ellis Award for distinguished service and outstanding 
leadership.
  Although retiring from his professional career in 1982, Blaine 
remained active in community service and enriched the lives of many by 
volunteering his time and leadership abilities to such organizations as 
the Lions International, the Hiram Masonic Lodge, the Southeast 
Mississippi Livestock Association and the Economic Development 
Foundation. He was also a loyal member of the First Baptist Church of 
Taylorsville where he taught Sunday School classes for 25 years.
  With the death of Blaine Eaton in 1995, our State lost one of its 
finest citizens. Designating the Taylorsville Post Office as the 
``Blaine H. Eaton Post Office Building'' will commemorate the public 
service of this extraordinary Mississippian who dedicated his life to 
the betterment of the community and State he loved so much.
  Mr. President, I ask unanimous consent the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 916

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

     SECTION 1. DESIGNATION OF BLAINE H. EATON POST OFFICE 
                   BUILDING.

       The United States Post Office building located at 750 
     Highway 28 East in Taylorsville, Mississippi, shall be known 
     and designated as the ``Blaine H. Eaton Post Office 
     Building''.

     SEC. 2. REFERENCES.

       Any reference in a law, map, regulation, document, paper, 
     or other record of the United States to the United States 
     Post Office building referred to in section 1 shall be deemed 
     to be a reference to the ``Blaine H. Eaton Post Office 
     Building''.
                                 ______
                                 
      By Mr. TORRICELLI (for himself and Mrs. Feinstein):
  S. 917. A bill to amend section 6105 of title 38, United States Code, 
to expand the range of criminal offenses resulting in forfeiture of 
veterans benefits; to the Committee on Veterans Affairs.


                  THE NATIONAL CEMETERIES SANCTITY ACT

  Mr. TORRICELLI. Mr. President, I rise today, on behalf of myself and 
the distinguished ranking member of the Terrorism Subcommittee Senator 
Feinstein, to introduce the Protection of the Sanctity of National 
Cemeteries Act.
  In so doing, I urge my colleagues to join me in my effort to close a 
huge loophole in our laws, which will allow Timothy McVeigh a hero's 
burial in a national cemetery--even after the Federal Government puts 
him to death for his heinous act of terrorism.
  Mr. President, current law lists a whole host of criminal acts by 
which even an honorably discharged veteran loses the right to burial in 
a national cemetery. These acts include espionage, treason, sedition, 
sabotage, rebellion and disclosure of national secrets, among other 
offenses.
  But for some reason, the use of a weapon of mass destruction against 
the property or persons of the U.S. Government is not included in this 
list. Nor is the murder of Federal law enforcement officers or the rest 
of the offenses already included in the definition of a Federal crime 
of terrorism. Each of these offenses is as clear a threat to the 
National Security of the United States as the crimes already listed, 
and should clearly disqualify the perpetrator from an honorable burial 
at Government expense.
  Because of this gaping loophole in the law, Timothy McVeigh--
amazingly--remains entitled to burial next to true national heroes--men 
and women who have fought and died to defend this country and 
everything it stands for. He remains entitled to this hero's burial 
despite having committed the worst act of terrorism ever perpetrated on 
American soil.
  This situation is unacceptable. It is an insult to the memories of 
the 168 victims killed in the Oklahoma City blast. It is an insult to 
the memories of the truly courageous men and women who have earned and 
maintained the right to a hero's burial by the Federal Government. And 
it is an insult to justice, plain and simple.
  Today, I am introducing a bill to close this loophole once and for 
all. My bill would amend current law to include every crime listed as a 
Federal crime of terrorism, including McVeigh's crimes, in the list of 
disqualifiers for military burial. We should not provide honorable 
burials for persons who commit acts of terrorism against the U.S. 
Government. I urge my colleagues to support this bill, I ask unanimous-
consent that the full text of the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 917

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``National Cemeteries Sanctity 
     Act''.

     SEC. 2. EXPANSION OF CRIMINAL OFFENSES RESULTING IN 
                   FORFEITURE OF VETERANS BENEFITS.

       (a) In General.--Section 6105 of title 38, United States 
     code, is amended--
       (1) in subsection (b)--
       (A) in paragraph (2)--
       (i) by inserting ``32, 37, 81, 175,'' before ``792,''; and
       (ii) by inserting ``831, 842(m), 842(n), 844(e), 844(f), 
     844(i), 930(c), 956, 1114, 1116, 1203, 1361, 1363, 1366, 
     1751, 1992, 2152, 2280, 2281, 2332, 2332a, 2332b, 2332c, 
     2339A, 2339B, 2340A,'' after ``798,'';
       (B) in paragraph (3)--
       (i) by striking out ``and 226'' and inserting in lieu 
     thereof ``226, and 236'';
       (ii) by striking out ``and 2276'' and inserting in lieu 
     thereof ``2276, and 2284''; and
       (iii) by striking out ``and'' at the end;
       (C) by redesignating paragraph (4) as paragraph (5); and
       (D) by inserting after paragraph (3) the following new 
     paragraph (4):
       ``(4) sections 46502 and 60123(b) of title 49; and''; and
       (2) in the second sentence of subsection (c), by striking 
     out ``or (4)'' and inserting in lieu thereof ``(4), or (5)''.
       (b) conforming Amendments.--(1) The section heading for 
     such section is amended to read as follows:

     ``Sec. 6105. Forfeiture: subversive activities; terrorist 
       activities; other criminal activities''.

       (2) The table of sections at the beginning of chapter 61 of 
     that title is amended by striking out the item relating to 
     section 6105 and inserting in lieu thereof the following new 
     item:

``6105. Forfeiture: subversive activities; terrorist activities; other 
              criminal activities.''.

       (c) Applicability.--The amendments made to section 6105 of 
     title 38, United States Code, by subsection (a) shall apply 
     to any person convicted under a provision of law added to 
     such section by such amendments after December 31, 1996.
                                 ______
                                 
      By Mr. KERRY (for himself, Mr. Wellstone, Mr. Glenn, Mr. Biden 
        and Mr. Leahy):
  S. 918. A bill to reform the financing of Federal elections; to the 
Committee on Rules and Administration.


                  THE CLEAN MONEY CLEAN ELECTIONS ACT

  Mr. KERRY. Mr. President, the Fourth of July will occur in a little 
over 2 weeks. That is the date by which the President challenged the 
Congress to act on campaign finance reform in this first session of the 
105th Congress. I regret I must announce the obvious: not only has 
neither house of the Congress addressed this issue in serious floor 
debate and legislative action; there is virtually no prospect that 
either house will do so by the time we leave for the July 4 recess. Nor 
is it clear when or if the 105th Congress will address this issue.
  The Fourth of July has other implications, of course, Mr. President--
and

[[Page S5793]]

some of these, too, are related to campaign finance reform. This is a 
peculiarly American holiday, when Americans throughout the Nation take 
time out to gather in parks and back yards, at barbecues and picnics 
and family reunions and community parades, to celebrate our democracy, 
our freedom.
  But I think there would be widespread agreement, as we do this in 
1997, that there is an unease across the Nation about the political 
process. The American people are concerned. Their concern is not 
primarily about who their elected officials are. Their frustration, 
cynicism, and anger run deep and broad--directed, as most of us 
realize, at the entire political system.
  Americans believe that their Government has been hijacked by special 
interests, that the political system responds to the needs of wealthy 
special interests, not the interests of ordinary, hard-working 
citizens. They sense, in many ways, that the Congress is not 
necessarily ``the people's house.''
  We see evidence of this in the feeling of powerlessness described by 
many Americans, and in the great gulf that grows wider between the 
American people and their elected officials. You can see it expressed 
frequently in town meetings and in various polls. The people feel that 
Congress all too often fails to represent the real concerns of real 
Americans, and they sense that they are being left out.
  The result is that more and more Americans are checking out of the 
system. If their democracy isn't going to respond to their concerns, 
then they ask themselves why they should respond to the request that 
they participate meaningfully in the political process. The reason for 
the disconnect is very simple, Mr. President. The amount of money in 
politics--money given to office seekers to campaign for office--
disenfranchises the average person who knows that he or she can never 
hope to have the same kind of access as that money achieves for those 
who give it.
  Special interest money is moving and dictating and governing the 
agenda of American politics, and most Americans understand that.
  A few findings from a bipartisan poll tell the story: 49 percent of 
registered voters believe that lobbyists and special interests control 
the Federal Government; 92 percent of registered voters believe that 
special interest contributions affect the votes of Members of Congress; 
and 88 percent believe that people who make large campaign 
contributions get special favors from politicians.
  The evidence of public discontent could hardly be more compelling, 
yet the Congress drifts on, with no apparent sense of urgency in trying 
to respond to that discontent. We all understand there are differences 
on each side of the aisle about the best way to address the problem, 
but I do not see how anyone can say in good conscience that there is a 
bona fide effort under way involving the leadership of both parties in 
the U.S. Congress to even try to work out those differences.
  If we want to regain the respect and confidence of the American 
people and if we want to reconnect to them and reconnect them to our 
democracy, we have to get the special interest money out of politics. 
As my friend Ross Perot says, ``It's just that simple.''
  The American people, however, are skeptical about either our 
willingness or ability to do that, and it doesn't help that the 105th 
Congress has yet to take up campaign finance reform. It doesn't help 
that the President and the Speaker of the House shook hands in a very 
public way 2 years ago and promised to do something about campaign 
finance, and nothing has transpired between then and now to fulfill 
that commitment, and from the perspective of the ordinary citizen who 
wants to see the special interest money removed from politics, it 
really looks like a conspiracy of inaction. Those who profit from the 
current system --special interests who know how to play the game, and 
politicians who know how to play the game--seem to be shutting down any 
prospect of real change.

  Mr. President, I know why people feel that way. I have been working 
on campaign finance reform since I came to the Senate. I have worked 
for years with my colleagues Joe Biden and Robert Byrd and others, and 
with former Senators such as George Mitchell, David Boren, and Bill 
Bradley--searching for the right equation to bring about change. 
Although from my arrival in the Senate I have advocated sweeping 
overhaul of the system, in recent times I have been a strong supporter 
of the proposal advanced by John McCain and Russ Feingold, even though 
it is incremental in design, because they succeeded in assembling a 
package of reforms that bridged the party divide that so often has been 
permitted to poison this debate and prevent meaningful action--and 
because I believe so fervently that we must succeed to whatever extent 
it is possible in moving toward what should be our objective.
  Throughout these years of activity--the 12 years of my service as a 
Senator--my goal has always been the same, to get special interest 
influence and special interest access out of politics.
  Mr. President, we come to the floor this afternoon on an auspicious 
day--or, perhaps more accurately, an inauspicious day. In any event it 
is a red-letter day for America. It was the day 25 years ago that was 
the beginning of two very difficult years in American history. It was 
25 years ago today that the famous burglary at the Watergate complex 
overlooking the Potomac in Washington, DC, took place, followed by 
coverup activities that reached into the Oval Office and resulted in 
the resignation in disgrace of an American President.
  During the investigation of the illegal activities, there were 
multiple revelations of huge amounts of cash moving in brown paper bags 
and leather briefcases. The public revulsion triggered real reform, 
although that reform, sadly, was directed primarily toward only the 
Presidential election financing system. But even that spirit of reform, 
and the significant alterations of the system to which it led, has been 
broken by those who want to trample it with the exploitation of every 
loophole possible in the campaign finance system.
  It is unfortunately fitting, then, Mr. President, that we return our 
attention on this day to that nemesis of the democratic process, the 
corrosive effect of money in politics.
  This time, 25 years later, it is the no-holds-barred pursuit of quite 
stunning amounts of money by both parties in the 1996 Presidential and 
congressional elections that captures the attention and the 
condemnation of the American people--and the allegations that many of 
those who gave large sums to one or the other party, or one candidate 
or another, expected favors in return, ranging from the trivial to the 
significant.
  The American people are not stupid. They know that there is no such 
thing as a free lunch. They believe--with considerable justification--
that the scores of millions of dollars that flow from well-to-do 
individuals and special interest organizations usually are not donated 
out of absolute disinterested patriotism, admiration for the 
candidates, and support for our electoral system.
  They watch repeatedly as public policy decisions made by the Congress 
and the Executive Branch appear to be influenced by those who have made 
the contributions. They conclude--again, I fear, with considerable good 
reason--that either those contributions directly affected the decision-
making process, or, at the very least, purchased for those contributors 
a greater degree of access to the elected officials who make the 
decisions, so that the contributors can more effectively and 
persuasively make their case.

  During this past election, 1996, not only in congressional races but 
also, distressingly, in the Presidential campaign--and it is especially 
distressing because many of us thought the Watergate reform legislation 
of 1974 had suitably repaired the system of presidential campaign 
finance--we saw a flood of special interest money the likes of which 
have never previously been seen here or anywhere.
  Every day during the past year, it has been impossible to open a 
newspaper or turn on a television without being confronted by yet 
another new revelation about an alleged campaign finance irregularity 
or abuse--or a defense of the actions at which the charges are leveled.
  And, I must say, the defenses are generally pretty lame. Those 
against whom the allegations are leveled may be able to find protection 
in the letter

[[Page S5794]]

of the law, but they are unsuccessful in avoiding the opprobrium of the 
American people and consequent cynicism about our government system.
  I am one who believes we absolutely must do something to reverse the 
trend if we are to save our precious democratic system. And I also have 
concluded that the forces arrayed against the kind of partial public 
financing approaches we previously have pushed are so strong that we 
must find a new approach behind which it will be possible to develop 
such strong consensus support across the nation that the Congress will 
be unable to resist it.
  To the extent competent polling and other public opinion assessment 
techniques can make a reliable determination, the evidence is 
persuasive that, while the American people are willing to embrace 
radical change of campaign financing--to take all special interest 
money and heave it over the side and shoulder all reasonable campaign 
costs--they have only passing interest and precious little enthusiasm 
for half-way measures. Their judgment appears to be that it would be a 
waste of effort and tax dollars to invest public resources in a system 
that retains any significant degree of special interest funding. They 
see such an approach as playing them for chumps--while the influence of 
special interests would remain as strong as it currently is.
  What does seem to capture the attention and imagination--and 
support--of a significant majority of Americans is sweeping reform of 
campaign finance that removes all special interest money from the 
system. This is not a notion dreamed up here in Washington--either here 
on Capitol Hill or in an organization's office downtown. Activities to 
implement such an approach to campaign finance reform have been 
underway in a number of States, including my own State of 
Massachusetts. Maine voters took the boldest step, approving such a 
concept for State elections. Now Vermont has followed suit with a 
provision applying to the Governor's office, and Governor Howard Dean 
is poised to sign the proposal into law. Other State-level efforts are 
in various stages of advancement.
  Paul Wellstone and John Glenn came early-on to the same conclusion to 
which I came--that we want to champion such an approach at the federal 
level. And we have been joined by Joe Biden and Pat Leahy, and other 
Senators are studying the idea carefully and we hope and trust we will 
be joined by some of them in the near future.
  We come to the floor today to introduce the Clean Money, Clean 
Elections Act, a bill that, as its most important feature, takes all 
special interest money out of Federal elections. This initiative will 
offer a set amount of funding, based on a State's voting-age 
population, to each candidate who agrees to foreswear private 
contributions. It not only removes all special interest money from the 
system, but also removes the necessity for candidates to spend a huge 
amount of time fundraising and to pour massive amounts of the money 
they do raise into further fundraising efforts.
  In addition, this legislation will shut down the so-called soft 
money, or unregulated money, loopholes that have permitted massive 
amounts of special interest money to enter the electoral process around 
even those restrictions that now exist.
  This process takes a major step forward today with the introduction 
of this legislation. Comparable efforts are underway in the House of 
Representatives, and I understand a similar bill will be introduced 
there in coming weeks.
  We believe the people are, once again, ahead of Washington--and, once 
again, ahead of the politicians. And we believe that ultimately this or 
a derivative approach is the only way effectively to restore people's 
confidence that, in America, anybody truly can run, and win--not just 
those who have access to wealth or who are wealthy themselves.
  This is a bill to restore our own democracy and preserve what we 
think is the heart of our precious system. We hope and believe that--
with a strong assist from their constituents--increasing numbers of our 
colleagues, over time, will come to recognize this and support the 
bill.
  This will not be a rapidly completed process, Mr. President. We 
introduce this bill with the knowledge that it would not attract more 
than perhaps a quarter of the votes in the Senate today. This will be a 
journey, a journey of mobilizing the American people to require their 
elected representatives to take needed action. Our bill will be the 
objective, and it also will be the rallying point. And with the 
commitment of the organizations and individuals who advocate this 
approach, a movement will develop which cannot be stopped. Just as in 
Maine and now in Vermont, the support will grow to critical mass and 
these reforms will succeed.
  I look forward to walking this road with all who support this 
approach--both my colleagues in the Senate and friends outside the 
Senate. We who introduce this bill are committed to fundamentally 
changing our electoral system, and returning control of our elected 
officials and their agenda to the people after wresting it back from 
the special interests.
  I believe we will succeed, and can look back on this day--the 25th 
anniversary of a lamentable event in American history--as an important 
beginning point in that endeavor.
  I want to commend those colleagues who join in introducing this 
legislation today--Senators Wellstone, Glenn, Biden, and Leahy. I 
particularly want to compliment Senator Wellstone's capable staff, 
especially Brian Ahlberg, who have invested countless hours in the 
effort that is so essential but often unnoticed, of transforming 
complex policy objectives into legislative language, working hand-in-
hand with Senate Legislative Counsel staff and representatives of 
organizations which have been developing this idea at the State level. 
My staff has greatly appreciated their contributions to this effort and 
enjoyed working with them, as I have enjoyed the cooperative efforts 
with Senator Wellstone and my other colleagues.
  Mr. President, before I yield to Senator Wellstone and then, in turn, 
to other Senators who may wish to make remarks about this legislation, 
I ask unanimous consent that the full text of the bill be printed in 
the Record at the conclusion of my remarks, followed by a summary of 
the bill and a chart depicting the qualifying contribution requirement 
and the ``Clean Money'' allocation and spending limit for a general 
election that would apply to a candidate participating in the ``Clean 
Money, Clean Election'' system in each State.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                 S. 918

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Clean 
     Money, Clean Elections Act''.
       (b) Table of Contents.--

Sec. 1. Short title; table of contents.

      TITLE I--CLEAN MONEY FINANCING OF SENATE ELECTION CAMPAIGNS

Sec. 101. Findings and declarations.
Sec. 102. Eligibility requirements and benefits of clean money 
              financing of Senate election campaigns.
Sec. 103. Reporting requirements for expenditures of private money 
              candidates.
Sec. 104. Transition rule for current election cycle.

      TITLE II--INDEPENDENT EXPENDITURES; COORDINATED EXPENDITURES

Sec. 201. Reporting requirements for independent expenditures.
Sec. 202. Definition of independent expenditure.
Sec. 203. Limit on expenditures by political party committees.
Sec. 204. Party independent expenditures and coordinated expenditures.

                      TITLE III--VOTER INFORMATION

Sec. 301. Free broadcast time.
Sec. 302. Broadcast rates and preemption.
Sec. 303. Campaign advertisements; issue advertisements.
Sec. 304. Limit on congressional use of the franking privilege.

           TITLE IV--SOFT MONEY OF POLITICAL PARTY COMMITTEES

Sec. 401. Soft money of political party committee.
Sec. 402. State party grassroots funds.
Sec. 403. Reporting requirements.

   TITLE V--RESTRUCTURING AND STRENGTHENING OF THE FEDERAL ELECTION 
                               COMMISSION

Sec. 501. Appointment and terms of commissioners.
Sec. 502. Audits.
Sec. 503. Authority to seek injunction.

[[Page S5795]]

Sec. 504. Standard for investigation.
Sec. 505. Petition for certiorari.
Sec. 506. Expedited procedures.
Sec. 507. Filing of reports using computers and facsimile machines.
Sec. 508. Power to issue subpoena without signature of chairperson.
Sec. 509. Prohibition of contributions by individuals not qualified to 
              vote.

                        TITLE VI--EFFECTIVE DATE

Sec. 601. Effective date.
      TITLE I--CLEAN MONEY FINANCING OF SENATE ELECTION CAMPAIGNS

     SEC. 101. FINDINGS AND DECLARATIONS.

       (a) Undermining of Democracy by Campaign Contributions From 
     Private Sources.--The Senate finds and declares that the 
     current system of privately financed campaigns for election 
     to the Senate undermines democracy in the United States by--
       (1) violating the democratic principle of ``one person, one 
     vote'' and diminishing the meaning of the right to vote by 
     allowing monied interests to have a disproportionate and 
     unfair influence within the political process;
       (2) diminishing a Senator's accountability to constituents 
     by compelling legislators to be accountable to the major 
     contributors who finance their election campaigns;
       (3) creating a conflict of interest, perceived and real, by 
     encouraging Senators to take money from private interests 
     that are directly affected by Federal legislation;
       (4) imposing large, unwarranted costs on taxpayers through 
     legislative and regulatory outcomes shaped by unequal access 
     to lawmakers for campaign contributors;
       (5) driving up the cost of election campaigns, making it 
     difficult for qualified candidates without personal fortunes 
     or access to campaign contributions from monied individuals 
     and interest groups to mount competitive Senate election 
     campaigns;
       (6) disadvantaging challengers, because large campaign 
     contributors tend to give their money to incumbent Senators, 
     thus causing Senate elections to be less competitive; and
       (7) burdening incumbents with a preoccupation with 
     fundraising and thus decreasing the time available to carry 
     out their public responsibilities.
       (b) Enhancement of Democracy by Providing Clean Money.--The 
     Senate finds and declares that the replacement of private 
     campaign contributions with clean money financing for all 
     primary, runoff, and general elections to the Senate would 
     enhance American democracy by--
       (1) helping to eliminate access to wealth as a determinant 
     of a citizen's influence within the political process and to 
     restore meaning to the principle of ``one person, one vote'';
       (2) increasing the accountability of Senators to the 
     constituents who elect them;
       (3) eliminating the inherent conflict of interest caused by 
     the private financing of the election campaigns of public 
     officials, thus restoring public confidence in the fairness 
     of the electoral and legislative processes;
       (4) reversing the escalating cost of elections and saving 
     taxpayers billions of dollars that are currently misspent due 
     to legislative and regulatory agendas skewed by the influence 
     of contributions;
       (5) creating a more level playing field for incumbents and 
     challengers, creating genuine opportunities for all Americans 
     to run for the Senate, and encouraging more competitive 
     elections; and
       (6) freeing Senators from the constant preoccupation with 
     raising money, and allowing them more time to carry out their 
     public responsibilities.

     SEC. 102. ELIGIBILITY REQUIREMENTS AND BENEFITS OF CLEAN 
                   MONEY FINANCING OF SENATE ELECTION CAMPAIGNS.

       The Federal Election Campaign Act of 1971 (2 U.S.C. 431 et 
     seq.) is amended by adding at the end the following:
     ``TITLE V--CLEAN MONEY FINANCING OF SENATE ELECTION CAMPAIGNS

     ``SEC. 501. DEFINITIONS.

       ``In this title:
       ``(1) Allowable contribution.--The term `allowable 
     contribution' means a qualifying contribution or seed money 
     contribution.
       ``(2) Clean money.--The term `clean money' means funds that 
     are made available by the Commission to a clean money 
     candidate under this title.
       ``(3) Clean money candidate.--The term `clean money 
     candidate' means a candidate for the Senate who is certified 
     under section 505 as being eligible to receive clean money.
       ``(4) Clean money qualifying period.--The term `clean money 
     qualifying period' means the period beginning on the date 
     that is 270 days before the date of the primary election and 
     ending on the date that is 30 days before the date of the 
     general election.
       ``(5) General election period.--The term `general election 
     period' means, with respect to a candidate, the period 
     beginning on the day after the date of the primary or primary 
     runoff election for the specific office that the candidate is 
     seeking, whichever is later, and ending on the earlier of--
       ``(A) the date of the general election; or
       ``(B) the date on which the candidate withdraws from the 
     campaign or otherwise ceases actively to seek election.
       ``(6) General runoff election period.--The term `general 
     runoff election period' means, with respect to a candidate, 
     the period beginning on the day following the date of the 
     last general election for the specific office that the 
     candidate is seeking and ending on the date of the runoff 
     election for that office.
       ``(7) Immediate family.--The term `immediate family' 
     means--
       ``(A) a candidate's spouse;
       ``(B) a child, stepchild, parent, grandparent, brother, 
     half-brother, sister, or half-sister of the candidate or the 
     candidate's spouse; and
       ``(C) the spouse of any person described in subparagraph 
     (B).
       ``(8) Major party candidate.--The term `major party 
     candidate' means a candidate of a political party of which a 
     candidate for Senator, for President, or for Governor in the 
     preceding 5 years received, as a candidate of that party, 25 
     percent or more of the total number of popular votes received 
     in the State by all candidates for the same office.
       ``(9) Personal funds.--The term `personal funds' means an 
     amount that is derived from--
       ``(A) the personal funds of the candidate or a member of 
     the candidate's immediate family; and
       ``(B) proceeds of indebtedness incurred by the candidate or 
     a member of the candidate's immediate family.
       ``(10) Personal use.--
       ``(A) In general.--The term `personal use' means the use of 
     funds to fulfill a commitment, obligation, or expense of a 
     person that would exist irrespective of the candidate's 
     election campaign or individual's duties as a holder of 
     Federal office.
       ``(B) Inclusions.--The term `personal use' includes--
       ``(i) a home mortgage, rent, or utility payment;
       ``(ii) a clothing purchase;
       ``(iii) a noncampaign-related automobile expense;
       ``(iv) a country club membership;
       ``(v) a vacation or other noncampaign-related trip;
       ``(vi) a household food item;
       ``(vii) a tuition payment;
       ``(viii) admission to a sporting event, concert, theater, 
     or other form of entertainment not associated with an 
     election campaign; and
       ``(ix) dues, fees, and other payments to a health club or 
     recreational facility.
       ``(11) Primary election period.--The term `primary election 
     period' means the period beginning on the date that is 90 
     days before the date of the primary election and ending on 
     the date of the primary election.
       ``(12) Primary runoff election period.--The term `primary 
     runoff election period' means, with respect to a candidate, 
     the period beginning on the day following the date of the 
     last primary election for the specific office that the 
     candidate is seeking and ending on the date of the runoff 
     election for that office.
       ``(13) Private money candidate.--The term `private money 
     candidate' means a candidate for the Senate other than a 
     clean money candidate.
       ``(14) Qualifying contribution.--The term `qualifying 
     contribution' means a contribution that--
       ``(A) is in the amount of $5 exactly;
       ``(B) is made by an individual who is registered to vote in 
     the candidate's State;
       ``(C) is made during the clean money qualifying period; and
       ``(D) meets the requirements of section 502(a)(2)(D).
       ``(15) Seed money contribution.--The term `seed money 
     contribution' means a contribution (or contributions in the 
     aggregate made by any 1 person) of not more than $100.
       ``(16) Senate election fund.--The term `Senate Election 
     Fund' means the fund established by section 507(a).

     ``SEC. 502. ELIGIBILITY FOR CLEAN MONEY.

       ``(a) Primary Election Period and Primary Runoff Election 
     Period.--
       ``(1) In general.--A candidate qualifies as a clean money 
     candidate during the primary election period and primary 
     runoff election period if the candidate files with the 
     Commission a declaration, signed by the candidate and the 
     treasurer of the candidate's principal campaign committee, 
     that the candidate--
       ``(A) has complied and will comply with all of the 
     requirements of this title;
       ``(B) will not run in the general election as a private 
     money candidate; and
       ``(C) meets the qualifying contribution requirement of 
     paragraph (2).
       ``(2) Qualifying contribution requirement.--
       ``(A) Major party candidates.--The requirement of this 
     paragraph is met if, during the clean money qualifying 
     period, a major party candidate receives the greater of--
       ``(i) 1,000 qualifying contributions; or
       ``(ii) a number of qualifying contributions equal to 0.25 
     percent of the voting age population of the candidate's 
     State.
       ``(B) Candidates that are not major party candidates.--The 
     requirement of this paragraph is met if, during the clean 
     money qualifying period, a candidate that is not a major 
     party candidate receives a number of qualifying contributions 
     that is at least 150 percent of the number of qualifying 
     contributions that a major party candidate in the same 
     election is required to receive under subparagraph (A).
       ``(C) Receipt of qualifying contribution.--A qualifying 
     contribution shall--
       ``(i) be accompanied by the contributor's name and home 
     address;

[[Page S5796]]

       ``(ii) be accompanied by a signed statement that the 
     contributor understands the purpose of the qualifying 
     contribution;
       ``(iii) be made by a personal check or money order payable 
     to the Senate Election Fund or by cash; and
       ``(iv) be acknowledged by a receipt that is sent to the 
     contributor with a copy kept by the candidate for the 
     Commission and a copy kept by the candidate for the election 
     authorities in the candidate's State.
       ``(D) Deposit of qualifying contributions in senate 
     election fund.--
       ``(i) In general.--Not later than the date that is 1 day 
     after the date on which the candidate is certified under 
     section 505, a candidate shall remit all qualifying 
     contributions to the Commission for deposit in the Senate 
     Election Fund.
       ``(ii) Candidates that are not certified.--Not later than 
     the last day of the clean money qualifying period, a 
     candidate who has received qualifying contributions and is 
     not certified under section 505 shall remit all qualifying 
     contributions to the Commission for deposit in the Senate 
     Election Fund.
       ``(3) Time to file declaration.--A declaration under 
     paragraph (1) shall be filed by a candidate not later than 
     the date that is 30 days before the date of the primary 
     election.
       ``(b) General Election Period.--
       ``(1) In general.--A candidate qualifies as a clean money 
     candidate during the general election period if--
       ``(A)(i) the candidate qualified as a clean money candidate 
     during the primary election period (and primary runoff 
     election period, if applicable); or
       ``(ii) the candidate files with the Commission a 
     declaration, signed by the candidate and the treasurer of the 
     candidate's principal committee, that the candidate--
       ``(I) has complied and will comply with all the 
     requirements of this title; and
       ``(II) meets the qualifying contribution requirement of 
     subsection (a)(2);
       ``(B) the candidate files with the Commission a written 
     agreement between the candidate and the candidate's political 
     party in which the political party agrees not to make any 
     expenditures in connection with the general election of the 
     candidate in excess of the limit in section 315(d)(3)(C); and
       ``(C) the candidate's party nominated the candidate to be 
     placed on the ballot for the general election or the 
     candidate qualified to be placed on the ballot as an 
     independent candidate, and the candidate is qualified under 
     State law to be on the ballot.
       ``(2) Time to file declaration or statement.--A declaration 
     or statement required to be filed under paragraph (1) shall 
     be filed by a candidate not later than the date that is 30 
     days before the date of the general election.
       ``(c) General Runoff Election Period.--A candidate 
     qualifies as a clean money candidate during the general 
     runoff election period if the candidate qualified as a clean 
     money candidate during the general election period.

     ``SEC. 503. REQUIREMENTS APPLICABLE TO CLEAN MONEY 
                   CANDIDATES.

       ``(a) Obligation To Comply.--A clean money candidate who 
     accepts benefits during the primary election period shall 
     comply with all the requirements of this Act through the 
     primary runoff election period, the general election period, 
     and the general runoff election period (if applicable) 
     whether the candidate continues to accept benefits or not.
       ``(b) Contributions and Expenditures.--
       ``(1) Prohibition of private contributions.--Except as 
     otherwise provided in this title, during the election cycle 
     of a clean money candidate, the candidate shall not accept 
     contributions other than clean money from any source.
       ``(2) Prohibition of expenditures from private sources.--
     Except as otherwise provided in this title, during the 
     election cycle of a clean money candidate, the candidate 
     shall not make expenditures from any amounts other than clean 
     money amounts.
       ``(c) Use of Personal Funds.--
       ``(1) In general.--A clean money candidate shall not use 
     personal funds to make an expenditure except as provided in 
     paragraph (2).
       ``(2) Exceptions.--A seed money contribution or qualifying 
     contribution from the candidate or a member of the 
     candidate's immediate family shall not be considered to be 
     use of personal funds.
       ``(d) Debates.--
       ``(1) Number of debates.--A clean money candidate shall 
     participate in at least--
       ``(A) 1 public debate with other clean money candidates 
     from the same party for the same office during the primary 
     election period; and
       ``(B) 2 public debates with other clean money candidates 
     for the same office during the general election period.
       ``(2) Regulation.--The Commission shall promulgate a 
     regulation as necessary to carry out paragraph (1).

     ``SEC. 504. SEED MONEY.

       ``(a) Seed Money Limit.--A clean money candidate may accept 
     seed money contributions in an aggregate amount not 
     exceeding--
       ``(1) $50,000; plus
       ``(2) if there is more than 1 congressional district in the 
     candidate's State, an amount that is equal to $5,000 times 
     the number of additional congressional districts.
       ``(b) Contribution Limit.--Except as provided in section 
     502(a)(2), a clean money candidate shall not accept a 
     contribution from any person except a seed money contribution 
     (as defined in section 501).
       ``(c) Records.--A clean money candidate shall maintain a 
     record of the contributor's name, street address, and amount 
     of the contribution.
       ``(d) Use of Seed Money.--
       ``(1) In general.--A clean money candidate may expend seed 
     money for any election campaign-related costs, including 
     costs to open an office, fund a grassroots campaign, or hold 
     community meetings.
       ``(2) Prohibited uses.--A clean money candidate shall not 
     expend seed money for--
       ``(A) a television or radio broadcast; or
       ``(B) personal use.
       ``(e) Report.--Unless a seed money contribution or 
     expenditure made with a seed money contribution has been 
     reported previously under section 304, a clean money 
     candidate shall file with the Commission a report disclosing 
     all seed money contributions and expenditures not later than 
     48 hours after--
       ``(1) the earliest date on which the Commission makes funds 
     available to the candidate for an election period under 
     paragraph (1) or (2) of section 506(b); or
       ``(2) the end of the clean money qualifying period,

     whichever occurs first.
       ``(f) Time to Accept and Expend Seed Money Contributions.--
     A clean money candidate may accept and expend seed money 
     contributions for an election during the time period 
     beginning on the day after the date of the previous general 
     election for the office to which the candidate is seeking 
     election and ending on the earliest date on which the 
     Commission makes funds available to the candidate for an 
     election period under paragraph (1) or (2) of section 506(b).
       ``(g) Deposit of Unspent Seed Money Contributions.--A clean 
     money candidate shall remit any unspent seed money to the 
     Commission, for deposit in the Senate Election Fund, not 
     later than the earliest date on which the Commission makes 
     funds available to the candidate for an election period under 
     paragraph (1) or (2) of section 506(b).
       ``(h) Not Considered an expenditure.--An expenditure made 
     with seed money shall not be treated as an expenditure for 
     purposes of section 506(f)(2).

     ``SEC. 505. CERTIFICATION BY COMMISSION.

       ``(a) In General.--Not later than 5 days after a candidate 
     files a declaration under section 502, the Commission shall--
       ``(1) determine whether the candidate meets the eligibility 
     requirements of section 502; and
       ``(2) certify whether or not the candidate is a clean money 
     candidate.
       ``(b) Revocation of Certification.--The Commission may 
     revoke a certification under subsection (a) if a candidate 
     fails to comply with this title.
       ``(c) Repayment of Benefits.--If certification is revoked 
     under subsection (b), the candidate shall repay to the Senate 
     Election Fund an amount equal to the value of benefits 
     received under this title.

     ``SEC. 506. BENEFITS FOR CLEAN MONEY CANDIDATES.

       ``(a) In General.--A clean money candidate shall be 
     entitled to--
       ``(1) a clean money amount for each election period to make 
     or obligate to make expenditures during the election period 
     for which the clean money is provided, as provided in 
     subsection (c);
       ``(2) media benefits under section 315 of the 
     Communications Act of 1934 (47 U.S.C. 315); and
       ``(3) an aggregate amount of increase in the clean money 
     amount in response to certain independent expenditures and 
     expenditures of a private money candidate under subsection 
     (d) that, in the aggregate, are in excess of 125 percent of 
     the clean money amount of the clean money candidate.
       ``(b) Payment of Clean Money Amount.--
       ``(1) Primary election.--The Commission shall make funds 
     available to a clean money candidate on the later of--
       ``(A) the date on which the candidate is certified as a 
     clean money candidate under section 505; or
       ``(B) the date on which the primary election period begins.
       ``(2) General election.--The Commission shall make funds 
     available to a clean money candidate not later than 48 hours 
     after--
       ``(A) certification of the primary election or primary 
     runoff election result; or
       ``(B) the date on which the candidate is certified as a 
     clean money candidate under section 505 for the general 
     election,

     whichever occurs first.
       ``(3) Runoff election.--The Commission shall make funds 
     available to a clean money candidate not later than 48 hours 
     after the certification of the primary or general election 
     result (as applicable).
       ``(c) Clean Money Amounts.--
       ``(1) Primary election clean money amount.--
       ``(A) Major party candidates.--The primary election clean 
     money amount with respect to a clean money candidate who is a 
     major party candidate is 67 percent of the general election 
     clean money amount with respect to the clean money candidate.
       ``(B) Candidates that are not major party candidates.--The 
     primary election clean money amount with respect to a clean 
     money candidate who is not a major party candidate is 25 
     percent of the general election clean money amount with 
     respect to the clean money candidate.
       ``(2) Primary runoff election clean money amount.--The 
     primary runoff election

[[Page S5797]]

     clean money amount with respect to a clean money candidate is 
     25 percent of the primary election clean money amount with 
     respect to the clean money candidate.
       ``(3) General election clean money amount.--
       ``(A) In general.--The general election clean money amount 
     with respect to a clean money candidate is the lesser of--
       ``(i) $4,400,000; or
       ``(ii) the greater of--

       ``(I) $760,000; or
       ``(II) $320,000; plus

       ``(aa) 24 cents multiplied by the voting age population not 
     in excess of 4,000,000; and
       ``(bb) 20 cents multiplied by the voting age population in 
     excess of 4,000,000.
       ``(B) Exception.--In the case of an eligible Senate 
     candidate in a State that has not more than 1 transmitter for 
     a commercial Very High Frequency (VHF) television station 
     licensed to operate in that State, subparagraph (A)(ii)(II) 
     shall be applied by substituting--
       ``(i) `64 cents' for `24 cents' in item (aa); and
       ``(ii) `56 cents' for `20 cents' in item (bb).
       ``(C) Indexing.--The clean money amount under subparagraphs 
     (A) and (B) shall be increased as of the beginning of each 
     calendar year based on an increase in the price index 
     determined under section 315(c), except that the base period 
     shall be calendar year 1997.
       ``(4) General runoff election clean money amount.--The 
     general runoff election clean money amount with respect to a 
     clean money candidate is 25 percent of the general election 
     clean money amount with respect to the clean money candidate.
       ``(5) Unopposed candidates.--Except for a candidate 
     receiving amounts under paragraph (1)(B), a clean money 
     candidate in a primary or general election in which there is 
     no opposing candidate shall receive a clean money amount with 
     respect to that election equal to 25 percent of the full 
     clean money amount that the candidate would receive in a 
     contested election.
       ``(d) Matching Funds in Response to Independent 
     Expenditures and Expenditures of Private Money Candidates.--
       ``(1) In general.--If the Commission--
       ``(A) receives notification under--
       ``(i) subparagraphs (A) or (B) of section 304(c)(2) that a 
     person has made or obligated to make an independent 
     expenditure in an aggregate amount of $1,000 or more in an 
     election period or that a person has made or obligated to 
     make an independent expenditure in an aggregate amount of 
     $500 or more during the 20 days preceding the date of an 
     election in support of another candidate or against a clean 
     money candidate; or
       ``(ii) section 304(d)(1) that a private money candidate has 
     made or obligated to make expenditures in an aggregate amount 
     in excess of 100 percent of the amount of clean money 
     provided to a clean money candidate who is an opponent of the 
     private money candidate in the same election; and
       ``(B) determines that the aggregate amount of expenditures 
     reported under subparagraph (A) in an election period is in 
     excess of 125 percent of the amount of clean money provided 
     to a clean money candidate who is an opponent of the private 
     money candidate in the same election or against whom the 
     independent expenditure is made,

     the Commission shall make available to the clean money 
     candidate, not later than 24 hours after receiving a 
     notification under subparagraph (A), an aggregate amount of 
     increase in clean money in an amount equal to the aggregate 
     amount of expenditures that is in excess of 125 percent of 
     the amount of clean money provided to the clean money 
     candidate as determined under subparagraph (B).
       ``(2) Clean money candidates opposed by more than 1 private 
     money candidate.--For purposes of paragraph (1), if a clean 
     money candidate is opposed by more than 1 private money 
     candidate in the same election, the Commission shall take 
     into account only the amount of expenditures of the private 
     money candidate that expends, in the aggregate, the greatest 
     amount (as determined each time notification is received 
     under section 304(d)(1)).
       ``(3) Clean money candidates opposed by clean money 
     candidates.--If a clean money candidate is opposed by a clean 
     money candidate, the increase in clean money amounts under 
     paragraph (1) shall be made available to the clean money 
     candidate if independent expenditures are made against the 
     clean money candidate or in behalf of the opposing clean 
     money candidate in the same manner as the increase would be 
     made available for a clean money candidate who is opposed by 
     a private money candidate.
       ``(e) Limits on Matching Funds.--The aggregate amount of 
     clean money that a clean money candidate receives to match 
     independent expenditures and the expenditures of private 
     money candidates under subsection (d) shall not exceed 200 
     percent of the clean money amount that the clean money 
     candidate receives under subsection (c).
       ``(f) Expenditures Made with Clean Money Amounts.--
       ``(1) In general.--The clean money amount received by a 
     clean money candidate shall be used only for the purpose of 
     making or obligating to make expenditures during the election 
     period for which the clean money is provided.
       ``(2) Expenditures in excess of clean money amount.--A 
     clean money candidate shall not make expenditures or incur 
     obligations in excess of the clean money amount.
       ``(3) Prohibited uses.--The clean money amount received by 
     a clean money candidate shall not be--
       ``(A) converted to a personal use; or
       ``(B) used in violation of law.
       ``(4) Petty cash fund.--
       ``(A) In general.--A candidate may establish a petty cash 
     fund, to be used to pay expenses such as the costs of food, 
     newspapers, magazines, pay telephone calls and other minor 
     necessary expenses, that contains, on any day, not more 
     than--
       ``(i) $200; plus
       ``(ii) if there is more than 1 congressional district in 
     the candidate's State, an amount that is equal to $20 times 
     the number of additional congressional districts.
       ``(B) Receipt.--An expenditure from the petty cash fund in 
     an amount greater than $25 shall be evidenced by a receipt 
     describing the item purchased, the purpose and cost of the 
     item, and the name and street address of the seller.
       ``(5) Penalty.--A person that uses a clean money amount in 
     violation of this subsection shall be imprisoned not more 
     than 5 years, fined not more than $15,000, or both.
       ``(g) Remitting of Clean Money Amounts.--Not later than the 
     date that is 14 days after the last day of the applicable 
     election period, a clean money candidate shall remit any 
     unspent clean money amount to the Commission for deposit in 
     the Senate Election Fund.

     ``SEC. 507. ADMINISTRATION OF CLEAN MONEY.

       ``(a) Senate Election Fund.--
       ``(1) Establishment.--There is established in the Treasury 
     a fund to be known as the `Senate Election Fund'.
       ``(2) Deposits.--The Commission shall deposit unspent seed 
     money contributions, qualifying contributions, penalty 
     amounts received under this title, and amounts appropriated 
     for clean money financing in the Senate Election Fund.
       ``(3) Funds.--The Commission shall withdraw the clean money 
     amount for a clean money candidate from the Senate Election 
     Fund.
       ``(b) Regulations.--The Commission shall promulgate a 
     regulation to--
       ``(1) effectively and efficiently monitor and enforce the 
     limits on use of private money by clean money candidates;
       ``(2) effectively and efficiently monitor use of publicly 
     financed amounts under this title; and
       ``(3) enable clean money candidates to monitor expenditures 
     and comply with the requirements of this title.

     ``SEC. 508. EXPENDITURES MADE FROM FUNDS OTHER THAN CLEAN 
                   MONEY.

       ``If a clean money candidate makes an expenditure using 
     funds other than funds provided under this title, the 
     Commission shall assess a civil penalty against the candidate 
     in an amount that is not more than 10 times the amount of the 
     expenditure.

     ``SEC. 509. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to the Senate 
     Election Fund such sums as are necessary to carry out this 
     title.''.

     SEC. 103. REPORTING REQUIREMENTS FOR EXPENDITURES OF PRIVATE 
                   MONEY CANDIDATES.

       Section 304 of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 434) is amended by adding at the end the following:
       ``(d) Private Money Candidates.--
       ``(1) Expenditures in excess of clean money amounts.--Not 
     later than 48 hours after making or obligating to make an 
     expenditure, a private money candidate (as defined in section 
     501) that makes or obligates to make expenditures during an 
     election period (as defined by section 501), in an aggregate 
     amount in excess of 100 percent of the amount of clean money 
     provided to a clean money candidate (as defined in section 
     501), who is an opponent of the private money candidate shall 
     file with the Commission a report stating the amount of each 
     expenditure (in increments of an aggregate amount of $1,000) 
     made or obligated to be made.
       ``(2) Place of filing; Notification.--
       ``(A) Place of filing.--A report under this subsection 
     shall be filed with the Commission.
       ``(B) Notification of clean money candidates.--Not later 
     than 24 hours after receipt of a report under this 
     subsection, the Commission shall notify each clean money 
     candidate seeking nomination for election to, or election to, 
     the office in question, of the receipt of the report.
       ``(3) Determinations by the commission.--
       ``(A) In general.--The Commission may, on a request of a 
     candidate or on its own initiative, make a determination that 
     a private money candidate has made, or has obligated to make, 
     expenditures in excess of the applicable amount in paragraph 
     (1).
       ``(B) Notification.--In the case of such a determination, 
     the Commission shall notify each clean money candidate 
     seeking nomination for election to, or election to, the 
     office in question, of the making of the determination not 
     later than 24 hours after making the determination.
       ``(C) Time to comply with request for determination.--A 
     determination made at the request of a candidate shall be 
     made not later than 48 hours after the date of the 
     request.''.

     SEC. 104. TRANSITION RULE FOR CURRENT ELECTION CYCLE.

       (a) In General.--During the election cycle in effect on the 
     date of enactment of this Act, a candidate may be certified 
     as a clean money candidate (as defined in section 501 of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 431)), 
     notwithstanding the acceptance

[[Page S5798]]

     of contributions or making of expenditures from private funds 
     before the date of enactment that would, absent this section, 
     disqualify the candidate as a clean money candidate.
       (b) Private Funds.--A candidate may be certified as a clean 
     money candidate only if any private funds accepted and not 
     expended before the date of enactment of this Act are--
       (1) returned to the contributor; or
       (2) submitted to the Federal Election Commission for 
     deposit in the Senate Election Fund (as defined in section 
     501 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
     431)).
      TITLE II--INDEPENDENT EXPENDITURES; COORDINATED EXPENDITURES

     SEC. 201. REPORTING REQUIREMENTS FOR INDEPENDENT 
                   EXPENDITURES.

       (a) Independent Expenditures.--Section 304(c) of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 434(c)) is 
     amended--
       (1) by striking ``(c)(1) Every person'' and inserting the 
     following:
       ``(c) Independent Expenditures.--
       ``(1) In general.--
       ``(A) Required filing.--Except as provided in paragraph 
     (2), every person'';
       (2) in paragraph (2), by redesignating subparagraphs (A), 
     (B), and (C) as clauses (i), (ii), and (iii), respectively, 
     and adjusting the margins accordingly;
       (3) by redesignating paragraphs (2) and (3) as 
     subparagraphs (B) and (C), respectively, and adjusting the 
     margins accordingly;
       (4) by adding at the end the following:
       ``(2) Senate elections with a clean money candidate.--
       ``(A) Independent expenditures more than 20 days before an 
     election.--
       ``(i) In general.--Not later than 48 hours after making or 
     obligating to make an independent expenditure, more than 20 
     days before the date of an election, in support of an 
     opponent of or in opposition to a clean money candidate (as 
     defined in section 501), a person that makes independent 
     expenditures in an aggregate amount in excess of $1,000 
     during an election period (as defined in section 501) shall 
     file with the Commission a statement containing the 
     information described in clause (ii).
       ``(ii) Contents of statement.--A statement under 
     subparagraph (A) shall include a certification, under penalty 
     of perjury, that contains the information required by 
     subsection (b)(6)(B)(iii).
       ``(iii) Additional statements.--An additional statement 
     shall be filed for each aggregate of independent expenditures 
     that exceeds $1,000.
       ``(B) Independent expenditures during the 20 days preceding 
     an election.--Not later than 24 hours after making or 
     obligating to make an independent expenditure in support of 
     an opponent of or in opposition to a clean money candidate in 
     an aggregate amount in excess of $500, during the 20 days 
     preceding the date of an election, a person that makes or 
     obligates to make the independent expenditure shall file with 
     the Commission a statement stating the amount of each 
     independent expenditure made or obligated to be made.
       ``(C) Place of filing; notification.--
       ``(i) Place of filing.--A report or statement under this 
     paragraph shall be filed with the Commission.
       ``(ii) Notification of clean money candidates.--Not later 
     than 24 hours after receipt of a statement under this 
     paragraph, the Commission shall notify each clean money 
     candidate seeking nomination for election to, or election to, 
     the office in question of the receipt of a statement.
       ``(D) Determination by the commission.--
       ``(i) In general.--The Commission may, on request of a 
     candidate or on its own initiative, make a determination that 
     a person has made or obligated to make independent 
     expenditures with respect to a candidate that in the 
     aggregate exceed the applicable amount under subparagraph 
     (A).
       ``(ii) Notification.--Not later than 24 hours after making 
     a determination under clause (i), the Commission shall notify 
     each clean money candidate in the election of the making of 
     the determination.
       ``(iii) Time to comply with request for determination.--A 
     determination made at the request of a candidate shall be 
     made not later than 48 hours after the date of the 
     request.''.

     SEC. 202. DEFINITION OF INDEPENDENT EXPENDITURE.

       (a) In General.--Section 301 of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 431) is amended by striking 
     paragraph (17) and inserting the following:
       ``(17) Independent expenditure.--
       ``(A) In general.--The term `independent expenditure' means 
     an expenditure made by a person other than a candidate or 
     candidate's authorized committee--
       ``(i) that is made for a communication that contains 
     express advocacy; and
       ``(ii) is made without the participation or cooperation of 
     and without coordination with a candidate (within the meaning 
     of section 301(8)(A)(iii)).
       ``(B) Express advocacy.--The term `express advocacy' means 
     a communication that is made through a broadcast medium, 
     newspaper, magazine, billboard, direct mail, or similar type 
     of general public communication or political advertising and 
     that--
       ``(i) advocates the election or defeat of a clearly 
     identified candidate, including any communication that--

       ``(I) contains a phrase such as `vote for', `re-elect', 
     `support', `cast your ballot for', `(name of candidate) for 
     Congress', `(name of candidate) in 1997', `vote against', 
     `defeat', `reject'; or
       ``(II) contains campaign slogans or individual words that 
     in context can have no reasonable meaning other than to 
     recommend the election or defeat of 1 or more clearly 
     identified candidates; or

       ``(ii)(I) involves aggregate disbursements of $5,000 or 
     more;
       ``(II) refers to a clearly identified candidate; and
       ``(III) is made not more than 60 days before the date of a 
     general election.''.
       (b) Definition Applicable When Provision Not in Effect.--
     For purposes of the Federal Election Campaign Act of 1971, 
     during any period beginning after the effective date of this 
     Act in which the definition, or any part of the definition, 
     under section 301(17)(B) of that Act (as added by subsection 
     (a)) is not in effect, the definition of ``express advocacy'' 
     shall mean, in addition to the part of the definition that is 
     in effect, a communication that clearly identifies a 
     candidate and--
       (1) taken as a whole and with limited reference to external 
     events, such as proximity to an election, expresses 
     unmistakable support for or opposition to 1 or more clearly 
     identified candidates; or
       (2) is made for the clear purpose of advocating the 
     election or defeat of the candidate, as shown by the 
     existence of each of the following factors:
       (A) A statement or action by the person making the 
     communication.
       (B) The targeting or placement of the communication.
       (C) The use by the person making the communication of 
     polling, demographic, or other similar data relating to the 
     candidate's campaign for election.

     SEC. 203. LIMIT ON EXPENDITURES BY POLITICAL PARTY 
                   COMMITTEES.

       Section 315(d)(3) of the Federal Election Campaign Act of 
     1971 (2 U.S.C. 441a(d)(3)) is amended--
       (1) in subparagraph (A)(ii)--
       (A) by inserting ``except an election in which 1 or more of 
     the candidates is a clean money candidate (as defined in 
     section 501)'' after ``Senator''; and
       (B) by striking ``and'' at the end;
       (2) in subparagraph (B), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(C) in the case of an election to the office of Senator 
     in which 1 or more candidates is a clean money candidate (as 
     defined in section 501), 10 percent of the amount of clean 
     money that a clean money candidate is eligible to receive for 
     the general election period.''.

     SEC. 204. PARTY INDEPENDENT EXPENDITURES AND COORDINATED 
                   EXPENDITURES.

       (a) Determination to Make Coordinated Expenditures.--
     Section 315(d) of the Federal Election Campaign Act of 1971 
     (2 U.S.C. 441a(d)) is amended--
       (1) in paragraph (1)--
       (A) by inserting ``coordinated'' after ``make''; and
       (B) by striking ``(2) and (3)'' and inserting ``(2), (3), 
     and (4)''; and
       (2) by adding at the end the following:
       ``(4)(A) Before a committee of a political party makes a 
     coordinated expenditure in connection with a general election 
     campaign for Federal office in excess of $5,000, the 
     committee shall file with the Commission a certification, 
     signed by the treasurer, that the committee has not made and 
     will not make any independent expenditures in connection with 
     that campaign for Federal office. A party committee that 
     determines to make a coordinated expenditure shall not make 
     any transfer of funds in the same election cycle to, or 
     receive any transfer of funds in the same election cycle 
     from, any other party committee that determines to make 
     independent expenditures in connection with the same campaign 
     for Federal office.
       ``(B) A committee of a political party shall be considered 
     to be in coordination with a candidate of the party if the 
     committee--
       ``(i) makes a payment for a communication or anything of 
     value in coordination with the candidate, as described in 
     section 301(8)(A)(iii);
       ``(ii) makes a coordinated expenditure under this 
     subsection on behalf of the candidate;
       ``(iii) participates in joint fundraising with the 
     candidate or in any way solicits or receives a contribution 
     on behalf of the candidate;
       ``(iv) communicates with the candidate, or an agent of the 
     candidate (including a pollster, media consultant, vendor, 
     advisor, or staff member), acting on behalf of the candidate, 
     about advertising, message, allocation of resources, 
     fundraising, or other campaign matters related to the 
     candidate's campaign, including campaign operations, 
     staffing, tactics or strategy; or
       ``(v) provides in-kind services, polling data, or anything 
     of value to the candidate.
       ``(C) For purposes of this paragraph, all political 
     committees established and maintained by a national political 
     party (including all congressional campaign committees) and 
     all political committees established by State political 
     parties shall be considered to be a single political 
     committee.
       ``(D) For purposes of subparagraph (A), any coordination 
     between a committee of a political party and a candidate of 
     the party after

[[Page S5799]]

     the candidate has filed a statement of candidacy constitutes 
     coordination for the period beginning with the filing of the 
     statement of candidacy and ending at the end of the election 
     cycle.''.
       (b) Definitions.--
       (1) Amendment of definition of contribution.--Section 
     301(8) of the Federal Election Campaign Act of 1971 (2 U.S.C. 
     431(8)) is amended--
       (A) in subparagraph (A)--
       (i) by striking ``or'' at the end of clause (i);
       (ii) by striking the period at the end of clause (ii) and 
     inserting ``; or''; and
       (iii) by adding at the end the following:
       ``(iii) a payment made for a communication or anything of 
     value that is for the purpose of influencing an election for 
     Federal office and that is made in coordination with a 
     candidate.''; and
       (B) by adding at the end the following:
       ``(C) For the purposes of subparagraph (A)(iii), the term 
     `payment made in coordination with a candidate' includes--
       ``(i) a payment made by a person in cooperation, 
     consultation, or concert with, at the request or suggestion 
     of, or pursuant to any general or particular understanding 
     with a candidate, the candidate's authorized committee, or an 
     agent acting on behalf of a candidate or authorized 
     committee;
       ``(ii) a payment made by a person for the dissemination, 
     distribution, or republication, in whole or in part, of any 
     broadcast or any written, graphic, or other form of campaign 
     material prepared by a candidate, a candidate's authorized 
     committee, or an agent of a candidate or authorized committee 
     (not including a communication described in paragraph 
     (9)(B)(i) or a communication that expressly advocates the 
     candidate's defeat);
       ``(iii) a payment made based on information about a 
     candidate's plans, projects, or needs provided to the person 
     making the payment by the candidate or the candidate's agent 
     who provides the information with a view toward having the 
     payment made;
       ``(iv) a payment made by a person if, in the same election 
     cycle in which the payment is made, the person making the 
     payment is serving or has served as a member, employee, 
     fundraiser, or agent of the candidate's authorized committee 
     in an executive or policymaking position;
       ``(v) a payment made by a person if the person making the 
     payment has served in any formal policy or advisory position 
     with the candidate's campaign or has participated in 
     strategic or policymaking discussions with the candidate's 
     campaign relating to the candidate's pursuit of nomination 
     for election, or election, to Federal office, in the same 
     election cycle as the election cycle in which the payment is 
     made; and
       ``(vi) a payment made by a person if the person making the 
     payment retains the professional services of an individual or 
     person who has provided or is providing campaign-related 
     services in the same election cycle to a candidate in 
     connection with the candidate's pursuit of nomination for 
     election, or election, to Federal office, including services 
     relating to the candidate's decision to seek Federal office, 
     and the payment is for services of which the purpose is to 
     influence that candidate's election.
       ``(D) For purposes of subparagraph (C)(vi), the term 
     `professional services' includes services in support of a 
     candidate's pursuit of nomination for election, or election, 
     to Federal office such as polling, media advice, direct mail, 
     fundraising, or campaign research.''.
       (2) Definition of contribution in section 315(a)(7).--
     Section 315(a)(7) of the Federal Election Campaign Act of 
     1971 (2 U.S.C. 441a(a)(7)) is amended by striking paragraph 
     (B) and inserting the following:
       ``(B)(i) Except as provided in clause (ii), a payment made 
     in coordination with a candidate (as described in section 
     301(8)(A)(iii)) shall be considered to be a contribution to 
     the candidate, and, for the purposes of any provision of this 
     Act that imposes a limitation on the making of expenditures 
     by a candidate, shall be treated as an expenditure by the 
     candidate for purposes of this paragraph.
       ``(ii) In the case of a clean money candidate (as defined 
     in section 501), a payment made in coordination with a 
     candidate by a committee of a political party shall not be 
     treated as a contribution to the candidate for purposes of 
     section 503(b)(1) or an expenditure made by the candidate for 
     purposes of section 503(b)(2).''.
       (c) Meaning of Contribution or Expenditure for the Purposes 
     of Section 316.--Section 316(b)(2) of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 441b(b)(2)) is amended by 
     striking ``shall include'' and inserting ``includes a 
     contribution or expenditure (as those terms are defined in 
     section 301) and also includes''.
                      TITLE III--VOTER INFORMATION

     SEC. 301. FREE BROADCAST TIME.

       Section 315 of the Communications Act of 1934 (47 U.S.C. 
     315) is amended--
       (1) in subsection (a), in the third sentence, by striking 
     ``within the meaning of this subsection'' and inserting 
     ``within the meaning of this subsection or subsection (c)'';
       (2) by redesignating subsections (c) and (d) as subsections 
     (d) and (e), respectively;
       (3) by inserting after subsection (b) the following:
       ``(c) Free Broadcast Time.--
       ``(1) Amount of time.--A clean money candidate shall be 
     entitled to receive--
       ``(A) 30 minutes of free broadcast time during each of the 
     primary election period and the primary runoff election 
     period; and
       ``(B) 60 minutes of free broadcast time during the general 
     election period.
       ``(2) Time during which the broadcast is aired.--The 
     broadcast time under paragraph (1) shall be--
       ``(A) with respect to a television broadcast, the time 
     between 6:00 p.m. and 10:00 p.m. on any day that falls on 
     Monday through Friday; and
       ``(B) with respect to a radio broadcast, the time between 
     7:00 a.m. and 9:30 a.m. or between 4:30 p.m. and 7:00 p.m. on 
     any day that falls on Monday through Friday.
       ``(3) Maximum required of any station.--The amount of free 
     broadcast time that any 1 station is required to make 
     available to any 1 clean money candidate during each of the 
     primary election period, primary runoff election period, and 
     general election period shall not exceed 15 minutes.
       ``(4) Content of broadcast.--A broadcast under this 
     subsection shall be more than 30 seconds and less than 5 
     minutes in length.''; and
       (4) in subsection (d) (as redesignated by paragraph (1))--
       (A) by striking ``and'' at the end of paragraph (1);
       (B) by striking the period at the end of paragraph (2) and 
     inserting a semicolon, and by redesignating that paragraph as 
     paragraph (4);
       (C) by inserting after paragraph (1) the following:
       ``(2) the term `clean money candidate' has the meaning 
     given in section 501 of the Federal Election Campaign Act of 
     1971;
       ``(3) the term `general election period' has the meaning 
     given in section 501 of the Federal Election Campaign Act of 
     1971;''; and
       (D) by adding at the end the following:
       ``(5) the term `primary election period' has the meaning 
     given in section 501 of the Federal Election Campaign Act of 
     1971;
       ``(6) the term `private money candidate' has the meaning 
     given in section 501 of the Federal Election Campaign Act of 
     1971; and
       ``(7) the term `primary runoff election period' has the 
     meaning given in section 501 of the Federal Election Campaign 
     Act of 1971.''.

     SEC. 302. BROADCAST RATES AND PREEMPTION.

       (a) Broadcast Rates.--Section 315(b) of the Communications 
     Act of 1934 (47 U.S.C. 315(b)) is amended--
       (1) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively, and adjusting the 
     margins accordingly;
       (2) by striking ``The charges'' and inserting the 
     following:
       ``(1) In general.--Except as provided in paragraph (2), the 
     charges''; and
       (3) by adding at the end the following:
       ``(2) Clean money candidates.--In the case of a clean money 
     candidate, the charges for the use of a television 
     broadcasting station shall not exceed 50 percent of the 
     lowest charge described in paragraph (1)(A) during--
       ``(A) the 30 days preceding the date of a primary or 
     primary runoff election in which the candidate is opposed; 
     and
       ``(B) the 60 days preceding the date of a general or 
     special election in which the candidate is opposed.
       ``(3) Rate cards.--A licensee shall provide to a Senate 
     candidate a rate card that discloses--
       ``(A) the rate charged under this subsection; and
       ``(B) the method that the licensee uses to determine the 
     rate charged under this subsection.''.
       (b) Preemption.--Section 315 of the Communications Act of 
     1934 (47 U.S.C. 315) (as amended by section 301) is amended--
       (1) by redesignating subsections (d) and (e) as subsections 
     (e) and (f), respectively; and
       (2) by inserting after subsection (d) the following:
       ``(d) Preemption.--
       ``(1) In general.--Except as provided in paragraph (2), a 
     licensee shall not preempt the use of a broadcasting station 
     by a legally qualified candidate for the United States Senate 
     who has purchased and paid for such use.
       ``(2) Circumstances beyond control of licensee.--If a 
     program to be broadcast by a broadcasting station is 
     preempted because of circumstances beyond the control of the 
     broadcasting station, any candidate advertising spot 
     scheduled to be broadcast during that program may also be 
     preempted.''.

     SEC. 303. CAMPAIGN ADVERTISEMENTS; ISSUE ADVERTISEMENTS.

       (a) Contents of Campaign Advertisements.--Section 318 of 
     the Federal Election Campaign Act of 1971 (2 U.S.C. 441d) is 
     amended--
       (1) in subsection (a)--
       (A) in the matter preceding paragraph (1)--
       (i) by striking ``Whenever'' and inserting ``Whenever a 
     political committee makes a disbursement for the purpose of 
     financing any communication through any broadcasting station, 
     newspaper, magazine, outdoor advertising facility, mailing, 
     or any other type of general public political advertising, or 
     whenever'';
       (ii) by striking ``an expenditure'' and inserting ``a 
     disbursement''; and
       (iii) by striking ``direct''; and
       (B) in paragraph (3), by inserting ``and permanent street 
     address'' after ``name''; and
       (2) by adding at the end the following:
       ``(c) Any printed communication described in subsection (a) 
     shall be--
       ``(1) of sufficient type size to be clearly readable by the 
     recipient of the communication;

[[Page S5800]]

       ``(2) contained in a printed box set apart from the other 
     contents of the communication; and
       ``(3) consist of a reasonable degree of color contrast 
     between the background and the printed statement.
       ``(d)(1) Any broadcast or cablecast communication described 
     in subsection (a)(1) or subsection (a)(2) shall include, in 
     addition to the requirements of those subsections, an audio 
     statement by the candidate that identifies the candidate and 
     states that the candidate has approved the communication.
       ``(2) If a broadcast or cablecast communication described 
     in paragraph (1) is broadcast or cablecast by means of 
     television, the communication shall include, in addition to 
     the audio statement under paragraph (1), a written statement 
     which--
       ``(A) appears at the end of the communication in a clearly 
     readable manner with a reasonable degree of color contrast 
     between the background and the printed statement, for a 
     period of at least 4 seconds; and
       ``(B) is accompanied by a clearly identifiable photographic 
     or similar image of the candidate.
       ``(e) Any broadcast or cablecast communication described in 
     subsection (a)(3) shall include, in addition to the 
     requirements of those subsections, in a clearly spoken 
     manner, the following statement: `________ is responsible for 
     the content of this advertisement.' (with the blank to be 
     filled in with the name of the political committee or other 
     person paying for the communication and the name of any 
     connected organization of the payor). If broadcast or 
     cablecast by means of television, the statement shall also 
     appear in a clearly readable manner with a reasonable degree 
     of color contrast between the background and the printed 
     statement, for a period of at least 4 seconds.
       ``(f) Any broadcast or cablecast communication described in 
     subsection (a)(1), made by or on behalf of a private money 
     candidate (as defined in section 501), shall include, in 
     addition to the requirements of this subsection, in a clearly 
     spoken manner, the following statement: `This candidate has 
     chosen not to participate in the Clean Money, Clean Elections 
     Act and is receiving campaign contributions from private 
     sources'.''.
       (b) Reporting Requirements for Issue Advertisements.--
     Section 304 of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 434) (as amended by section 103) is amended by adding 
     at the end the following:
       ``(e) Issue Advertisements.--
       ``(1) In general.--A person that makes or obligates to make 
     a disbursement to purchase an issue advertisement shall file 
     a report with the Commission not later than 48 hours after 
     making or obligating to make the disbursement, containing the 
     following information--
       ``(A) the amount of the disbursement;
       ``(B) the information required under subsection (b)(3)(A) 
     for each person that makes a contribution, in an aggregate 
     amount of $5,000 or greater in a calendar year, to the person 
     who makes the disbursement;
       ``(C) the name and address of the person making the 
     disbursement; and
       ``(D) the purpose of the issue advertisement.
       ``(2) Definition of issue advertisement.--In this 
     subsection, the term `issue advertisement' means a 
     communication through a broadcasting station, newspaper, 
     magazine, outdoor advertising facility, mailing, or any other 
     type of general public political advertising--
       ``(A) the purchase of which is not an independent 
     expenditure or a contribution;
       ``(B) that contains the name or likeness of a Senate 
     candidate;
       ``(C) that is communicated during an election year; and
       ``(D) that recommends a position on a political issue.''.

     SEC. 304. LIMIT ON CONGRESSIONAL USE OF THE FRANKING 
                   PRIVILEGE.

       Section 3210(a)(6) of title 39, United States Code, is 
     amended by striking subparagraph (A) and inserting the 
     following:
       ``(A)(i) Except as provided in clause (ii), a Member of 
     Congress shall not mail any mass mailing as franked mail 
     during a year in which there will be an election for the seat 
     held by the Member during the period between January 1 of 
     that year and the date of the general election for that 
     office, unless the Member has made a public announcement that 
     the Member will not be a candidate for reelection in that 
     year or for election to any other Federal office.
       ``(ii) A Member of Congress may mail a mass mailing as 
     franked mail if--
       ``(I) the purpose of the mailing is to communicate 
     information about a public meeting; and
       ``(II) the content of the mailed matter includes only the 
     candidate's name, and the date, time, and place of the public 
     meeting.''.
           TITLE IV--SOFT MONEY OF POLITICAL PARTY COMMITTEES

     SEC. 401. SOFT MONEY OF POLITICAL PARTY COMMITTEE.

       Title III of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 431 et seq.) is amended by adding at the end the 
     following:

     ``SEC. 324. SOFT MONEY OF PARTY COMMITTEES.

       ``(a) National Committees.--A national committee of a 
     political party (including a national congressional campaign 
     committee of a political party but not including an entity 
     regulated under subsection (b)) shall not solicit or receive 
     any contributions, donations, or transfers of funds, or spend 
     any funds, that are not subject to the limitations, 
     prohibitions, and reporting requirements of this Act.
       ``(b) State, District, and Local Committees.--
       ``(1) In general.--A State, district, or local committee of 
     a political party shall not expend or disburse any amount 
     during a calendar year in which a Federal election is held 
     for any activity that might affect the outcome of a Federal 
     election, including any voter registration or get-out-the-
     vote activity, any generic campaign activity, and any 
     communication that refers to a candidate (regardless of 
     whether a candidate for State or local office is also 
     mentioned or identified) unless the amount is subject to the 
     limitations, prohibitions, and reporting requirements of this 
     Act.
       ``(2) Activity excluded from paragraph (1).--
       ``(A) In general.--Paragraph (1) shall not apply to an 
     expenditure or disbursement made by a State, district, or 
     local committee of a political party for--
       ``(i) a contribution to a candidate for State or local 
     office if the contribution is not designated or otherwise 
     earmarked to pay for an activity described in paragraph (1);
       ``(ii) the costs of a State, district, or local political 
     convention;
       ``(iii) the non-Federal share of a State, district, or 
     local party committee's administrative and overhead expenses 
     (but not including the compensation in any month of any 
     individual who spends more than 20 percent of the 
     individual's time on activities during the month that may 
     affect the outcome of a Federal election), except that for 
     purposes of this paragraph, the non-Federal share of a party 
     committee's administrative and overhead expenses shall be 
     determined by applying the ratio of the non-Federal 
     disbursements to the total Federal expenditures and non-
     Federal disbursements made by the committee during the 
     previous presidential election year to the committee's 
     administrative and overhead expenses in the election year in 
     question;
       ``(iv) the costs of grassroots campaign materials, 
     including buttons, bumper stickers, and yard signs that name 
     or depict only a candidate for State or local office; and
       ``(v) the cost of any campaign activity conducted solely on 
     behalf of a clearly identified candidate for State or local 
     office, if the candidate activity is not an activity 
     described in paragraph (1).
       ``(B) Fundraising costs.--A national, State, district, or 
     local committee of a political party shall not expend any 
     amount to raise funds that are used, in whole or in part, to 
     pay the costs of an activity described in paragraph (1) 
     unless the amount is subject to the limitations, 
     prohibitions, and reporting requirements of this Act.
       ``(c) Tax-exempt Organizations.--A national, State, 
     district, or local committee of a political party (including 
     a national congressional campaign committee of a political 
     party) shall not solicit any funds for or make any donations 
     to an organization that is exempt from Federal taxation under 
     section 501(a) of the Internal Revenue Code of 1986 and that 
     is described in section 501(c) of such Code.
       ``(d) Candidates.--
       ``(1) In general.--A candidate, individual holding Federal 
     office, or agent of a candidate or individual holding Federal 
     office shall not--
       ``(A) solicit, receive, transfer, or spend funds in 
     connection with an election for Federal office unless the 
     funds are subject to the limitations, prohibitions, and 
     reporting requirements of this Act;
       ``(B) solicit, receive, or transfer funds that are to be 
     expended in connection with any election other than a Federal 
     election unless the funds--
       ``(i) are not in excess of the amounts permitted with 
     respect to contributions to candidates and political 
     committees under section 315(a) (1) and (2); and
       ``(ii) are not from sources prohibited by this Act from 
     making contributions with respect to an election for Federal 
     office; or
       ``(C) solicit, receive, or transfer any funds on behalf of 
     any person that are not subject to the limitations, 
     prohibitions, and reporting requirements of this Act if the 
     funds are for use in financing any campaign-related activity 
     or any communication that refers to a clearly identified 
     candidate for Federal office.
       ``(2) Exception.--Paragraph (1) does not apply to the 
     solicitation or receipt of funds by an individual who is a 
     candidate for a State or local office if the solicitation or 
     receipt of funds is permitted under State law for the 
     individual's State or local campaign committee.
       ``(e) Definition of Committee.--In this section, the term 
     `committee of a political party' includes an entity that is 
     directly or indirectly established, financed, maintained, or 
     controlled by a committee or its agent, an entity acting on 
     behalf of a committee, and an officer or agent acting on 
     behalf of any such committee or entity.''.

     SEC. 402. STATE PARTY GRASSROOTS FUNDS.

       (a) Individual Contributions.--Section 315(a)(1) of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 441a(a)(1)) 
     is amended--
       (1) in subparagraph (B) by striking ``or'' at the end;
       (2) by redesignating subparagraph (C) as subparagraph (D); 
     and
       (3) by inserting after subparagraph (B) the following:

[[Page S5801]]

       ``(C) to--
       ``(i) a State Party Grassroots Fund established and 
     maintained by a State committee of a political party in any 
     calendar year which, in the aggregate, exceed $20,000;
       ``(ii) any other political committee established and 
     maintained by a State committee of a political party in any 
     calendar year which, in the aggregate, exceed $5,000;

     except that the aggregate contributions described in this 
     subparagraph that may be made by a person to the State Party 
     Grassroots Fund and all committees of a State Committee of a 
     political party in any State in any calendar year shall not 
     exceed $20,000; or''.
       (b) Limits.--
       (1) In general.--Section 315(a) of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 441a(a)) is amended by 
     striking paragraph (3) and inserting the following:
       ``(3) Overall limits.--
       ``(A) Individual limit.--No individual shall make 
     contributions during any calendar year that, in the 
     aggregate, exceed $25,000.
       ``(B) Calendar year.--No individual shall make 
     contributions during any calendar year--
       ``(i) to all candidates and their authorized political 
     committees that, in the aggregate, exceed $25,000; or
       ``(ii) to all political committees established and 
     maintained by State committees of a political party that, in 
     the aggregate, exceed $20,000.
       ``(C) Nonelection years.--For purposes of subparagraph 
     (B)(i), any contribution made to a candidate or the 
     candidate's authorized political committees in a year other 
     than the calendar year in which the election is held with 
     respect to which the contribution is made shall be treated as 
     being made during the calendar year in which the election is 
     held.''.
       (c) Definitions.--Section 301 of the Federal Election 
     Campaign Act of 1970 (2 U.S.C. 431) is amended by adding at 
     the end the following:
       ``(20) The term `generic campaign activity' means a 
     campaign activity that promotes a political party and does 
     not refer to any particular Federal or non-Federal candidate.
       ``(21) The term `State Party Grassroots Fund' means a 
     separate segregated fund established and maintained by a 
     State committee of a political party solely for purposes of 
     making expenditures and other disbursements described in 
     section 326(d).''.
       (d) State Party Grassroots Funds.--Title III of the Federal 
     Election Campaign Act of 1971 (2 U.S.C. 431 et seq.) (as 
     amended by section 401) is amended by adding at the end the 
     following:

     ``SEC. 325. STATE PARTY GRASSROOTS FUNDS.

       ``(a) In General.--A State committee of a political party 
     shall only make disbursements and expenditures from the 
     committee's State Party Grassroots Fund that are described in 
     subsection (d).
       ``(b) Transfers.--
       ``(1) In general.--Notwithstanding section 315(a)(4), a 
     State committee of a political party shall not transfer any 
     funds from the committee's State Party Grassroots Fund to any 
     other State Party Grassroots Fund or to any other political 
     committee, except as provided in paragraph (2).
       ``(2) Exception.--A committee of a political party may 
     transfer funds from the committee's State Party Grassroots 
     Fund to a district or local committee of the same political 
     party in the same State if the district or local committee--
       ``(A) has established a separate segregated fund for the 
     purposes described in subsection (d); and
       ``(B) uses the transferred funds solely for those purposes.
       ``(c) Amounts Received by Grassroots Funds From State and 
     Local Candidate Committees.--
       ``(1) In general.--Any amount received by a State Party 
     Grassroots Fund from a State or local candidate committee for 
     expenditures described in subsection (d) that are for the 
     benefit of that candidate shall be treated as meeting the 
     requirements of 324(b)(1) and section 304(d) if--
       ``(A) the amount is derived from funds which meet the 
     requirements of this Act with respect to any limitation or 
     prohibition as to source or dollar amount specified in 
     section 315(a) (1)(A) and (2)(A)(i); and
       ``(B) the State or local candidate committee--
       ``(i) maintains, in the account from which payment is made, 
     records of the sources and amounts of funds for purposes of 
     determining whether those requirements are met; and
       ``(ii) certifies that the requirements were met.
       ``(2) Determination of compliance.--For purposes of 
     paragraph (1)(A), in determining whether the funds 
     transferred meet the requirements of this Act described in 
     paragraph (1)(A)--
       ``(A) a State or local candidate committee's cash on hand 
     shall be treated as consisting of the funds most recently 
     received by the committee; and
       ``(B) the committee must be able to demonstrate that its 
     cash on hand contains funds meeting those requirements 
     sufficient to cover the transferred funds.
       ``(3) Reporting.--Notwithstanding paragraph (1), any State 
     Party Grassroots Fund that receives a transfer described in 
     paragraph (1) from a State or local candidate committee shall 
     be required to meet the reporting requirements of this Act, 
     and shall submit to the Commission all certifications 
     received, with respect to receipt of the transfer from the 
     candidate committee.
       ``(d) Disbursements and Expenditures.--A State committee of 
     a political party may make disbursements and expenditures 
     from its State Party Grassroots Fund only for--
       ``(1) any generic campaign activity;
       ``(2) payments described in clauses (v), (ix), and (xi) of 
     paragraph (8)(B) and clauses (iv), (viii), and (ix) of 
     paragraph (9)(B) of section 301;
       ``(3) subject to the limitations of section 315(d), 
     payments described in clause (xii) of paragraph (8)(B), and 
     clause (ix) of paragraph (9)(B), of section 301 on behalf of 
     candidates other than for President and Vice President;
       ``(4) voter registration; and
       ``(5) development and maintenance of voter files during an 
     even-numbered calendar year.
       ``(e) Definition.--In this section, the term `State or 
     local candidate committee' means a committee established, 
     financed, maintained, or controlled by a candidate for other 
     than Federal office.''.

     SEC. 403. REPORTING REQUIREMENTS.

       (a) Reporting Requirements.--Section 304 of the Federal 
     Election Campaign Act of 1971 (2 U.S.C. 434) (as amended by 
     section 303(b)) is amended by adding at the end the 
     following:
       ``(f) Political Committees.--
       ``(1) National and congressional political committees.--The 
     national committee of a political party, any congressional 
     campaign committee of a political party, and any subordinate 
     committee of either, shall report all receipts and 
     disbursements during the reporting period, whether or not in 
     connection with an election for Federal office.
       ``(2) Other political committees to which section 324 
     applies.--A political committee to which section 324(b)(1) 
     applies shall report all receipts and disbursements made for 
     activities described in section 324(b) (1) and (2)(A)(iii).
       ``(3) Other political committees.--Any political committee 
     to which paragraph (1) or (2) does not apply shall report any 
     receipts or disbursements that are used in connection with a 
     Federal election.
       ``(4) Itemization.--If a political committee has receipts 
     or disbursements to which this subsection applies from any 
     person aggregating in excess of $200 for any calendar year, 
     the political committee shall separately itemize its 
     reporting for the person in the same manner as required in 
     paragraphs (3)(A), (5), and (6) of subsection (b).
       ``(5) Reporting periods.--Reports required to be filed 
     under this subsection shall be filed for the same time 
     periods as reports are required for political committees 
     under subsection (a).''.
       (b) Building Fund Exception to the Definition of 
     Contribution.--Section 301(8) of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 431(8)) is amended--
       (1) by striking clause (viii); and
       (2) by redesignating clauses (ix) through (xiv) as clauses 
     (viii) through (xiii), respectively.
       (c) Reports by State Committees.--Section 304 of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 434) (as 
     amended by subsection (a)) is amended by adding at the end 
     the following:
       ``(g) Filing of State Reports.--In lieu of any report 
     required to be filed by this Act, the Commission may allow a 
     State committee of a political party to file with the 
     Commission a report required to be filed under State law if 
     the Commission determines that such reports contain 
     substantially the same information.''.
       (d) Other Reporting Requirements.--
       (1) Authorized committees.--Section 304(b)(4) of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 434(b)(4)) is 
     amended--
       (A) by striking ``and'' at the end of subparagraph (H);
       (B) by inserting ``and'' at the end of subparagraph (I); 
     and
       (C) by adding at the end the following:
       ``(J) in the case of an authorized committee, disbursements 
     for the primary election, the general election, and any other 
     election in which the candidate participates;''.
       (2) Names and addresses.--Section 304(b)(5)(A) of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 434(b)(5)(A)) 
     is amended by striking ``operating expense'' and inserting 
     ``operating expenditure, and the election to which the 
     operating expenditure relates''.
   TITLE V--RESTRUCTURING AND STRENGTHENING OF THE FEDERAL ELECTION 
                               COMMISSION

     SEC. 501. APPOINTMENT AND TERMS OF COMMISSIONERS.

       (a) In General.--Section 306(a) of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 437c(a)) is amended--
       (1) in paragraph (1)--
       (A) by striking ``(1) There is established'' and inserting 
     ``(1)(A) There is established'';
       (B) by striking the second sentence and inserting the 
     following:
       ``(B) Composition of Commission.--The Commission is 
     composed of 6 members appointed by the President, by and with 
     the advice and consent of the Senate, and 1 member appointed 
     by the President from among persons recommended by the 
     Commission as provided in subparagraph (D).'';
       (C) by striking ``No more than'' and inserting the 
     following:
       ``(C) Party affiliation.--Not more than''; and
       (D) by adding at the end the following:
       ``(D) Nomination by Commission of Additional Member.--
       ``(i) In general.--The members of the Commission shall 
     recommend to the President, by a vote of 4 members, 3 persons 
     for the appointment to the Commission.

[[Page S5802]]

       ``(ii) Vacancy.--On vacancy of the position of the member 
     appointed under this subparagraph, a member shall be 
     appointed to fill the vacancy in the same manner as provided 
     in clause (i).'';
       (2) in paragraph (2)(A) by striking ``terms of 6 years'' 
     and inserting ``not more than 1 term of 6 years;''; and
       (3) in paragraphs (3) and (4), by striking ``(other than 
     the Secretary of the Senate and the Clerk of the House of 
     Representatives)''.
       (b) Transition Rule.--Not later than 90 days after the date 
     of enactment of this Act, the Commission shall recommend 
     persons for appointment under section 306(a)(1)(D) of the 
     Federal Election Campaign Act of 1971, as added by section 
     501(a)(1)(D) of this Act.

     SEC. 502. AUDITS.

       (a) Random audit.--Section 311(b) of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 438(b)) is amended--
       (1) by inserting ``(1)'' before ``The Commission''; and
       (2) by adding at the end the following:
       ``(2) Random audits.--
       ``(A) In general.--Notwithstanding paragraph (1), after 
     every primary, general, and runoff election, the Commission 
     may conduct random audits and investigations to ensure 
     voluntary compliance with this Act.
       ``(B) Selection of subjects.--The subjects of audits and 
     investigations under this paragraph shall be selected on the 
     basis of impartial criteria established by a vote of at least 
     4 members of the Commission.
       ``(C) Exclusion.--This paragraph does not apply to an 
     authorized committee of a candidate for President or Vice 
     President subject to audit under chapter 95 or 96 of the 
     Internal Revenue Code of 1986.''.

     SEC. 503. AUTHORITY TO SEEK INJUNCTION.

       Section 309(a) of the Federal Election Campaign Act of 1971 
     (2 U.S.C. 437g(a)) is amended--
       (1) by adding at the end the following:
       ``(13) Authority to seek injunction.--
       ``(A) In general.--If, at any time in a proceeding 
     described in paragraph (1), (2), (3), or (4), the Commission 
     believes that--
       ``(i) there is a substantial likelihood that a violation of 
     this Act is occurring or is about to occur;
       ``(ii) the failure to act expeditiously will result in 
     irreparable harm to a party affected by the potential 
     violation;
       ``(iii) expeditious action will not cause undue harm or 
     prejudice to the interests of others; and
       ``(iv) the public interest would be best served by the 
     issuance of an injunction;

     the Commission may initiate a civil action for a temporary 
     restraining order or preliminary injunction pending the 
     outcome of proceedings under paragraphs (1), (2), (3), and 
     (4).
       ``(B) Venue.--An action under subparagraph (A) shall be 
     brought in the United States district court for the district 
     in which the defendant resides, transacts business, or may be 
     found, or in which the violation is occurring, has occurred, 
     or is about to occur.'';
       (2) in paragraph (7), by striking ``(5) or (6)'' and 
     inserting ``(5), (6), or (13)''; and
       (3) in paragraph (11), by striking ``(6)'' and inserting 
     ``(6) or (13)''.

     SEC. 504. STANDARD FOR INVESTIGATION.

       Section 309(a)(2) of the Federal Election Campaign Act of 
     1971 (2 U.S.C. 437f(a)(2)) is amended by striking ``reason to 
     believe that'' and inserting ``reason to open an 
     investigation on whether''.

     SEC. 505. PETITION FOR CERTIORARI.

       Section 307(a)(6) of the Federal Election Campaign Act of 
     1971 (2 U.S.C. 437d(a)) is amended by inserting ``(including 
     a proceeding before the Supreme Court on certiorari)'' after 
     ``appeal''.

     SEC. 506. EXPEDITED PROCEDURES.

       Section 309(a) of the Federal Election Campaign Act of 1971 
     (2 U.S.C. 437g(a)) (as amended by section 503) is amended by 
     adding at the end the following:
       ``(14) Expedited procedure.--
       ``(A) 60 days before a general election.--If the complaint 
     in a proceeding was filed within 60 days before the date of a 
     general election, the Commission may take action described in 
     this subparagraph.
       ``(B) Resolution before an election.--If the Commission 
     determines, on the basis of facts alleged in the complaint 
     and other facts available to the Commission, that there is 
     clear and convincing evidence that a violation of this Act 
     has occurred, is occurring, or is about to occur and it 
     appears that the requirements for relief stated in clauses 
     (ii), (iii), and (iv) of paragraph (13)(A) are met, the 
     Commission may--
       ``(i) order expedited proceedings, shortening the time 
     periods for proceedings under paragraphs (1), (2), (3), and 
     (4) as necessary to allow the matter to be resolved in 
     sufficient time before the election to avoid harm or 
     prejudice to the interests of the parties; or
       ``(ii) if the Commission determines that there is 
     insufficient time to conduct proceedings before the election, 
     immediately seek relief under paragraph (13)(A).
       ``(C) Meritless complaints.--If the Commission determines, 
     on the basis of facts alleged in the complaint and other 
     facts available to the Commission, that the complaint is 
     clearly without merit, the Commission may--
       ``(i) order expedited proceedings, shortening the time 
     periods for proceedings under paragraphs (1), (2), (3), and 
     (4) as necessary to allow the matter to be resolved in 
     sufficient time before the election to avoid harm or 
     prejudice to the interests of the parties; or
       ``(ii) if the Commission determines that there is 
     insufficient time to conduct proceedings before the election, 
     summarily dismiss the complaint.''.

     SEC. 507. FILING OF REPORTS USING COMPUTERS AND FACSIMILE 
                   MACHINES.

       Section 302(g) of the Federal Election Campaign Act of 1971 
     (2 U.S.C. 432(g)) is amended by adding at the end the 
     following:
       ``(5) Filing of reports using computers and facsimile 
     machines.--
       ``(A) Computers.--The Commission, in consultation with the 
     Secretary of the Senate and the Clerk of the House of 
     Representatives, shall issue a regulation under which a 
     person required to file a designation, statement, or report 
     under this Act--
       ``(i) is required to maintain and file the designation, 
     statement, or report for any calendar year in electronic form 
     accessible by computers if the person has, or has reason to 
     expect to have, aggregate contributions or expenditures in 
     excess of a threshold amount determined by the Commission; 
     and
       ``(ii) may maintain and file the designation, statement, or 
     report in that manner if not required to do so under a 
     regulation under clause (i).
       ``(B) Facsimile machines.--The Commission, in consultation 
     with the Secretary of the Senate and the Clerk of the House 
     of Representatives, shall prescribe a regulation that allows 
     a person to file a designation, statement, or report required 
     by this Act through the use of a facsimile machine.
       ``(C) Verification.--In a regulation under this paragraph, 
     the Commission shall provide methods (other than requiring a 
     signature on the document being filed) for verifying a 
     designation, statement, or report. Any document verified 
     under any of the methods shall be treated for all purposes 
     (including penalties for perjury) in the same manner as a 
     document verified by signature.
       ``(D) Compatibility of systems.--The Secretary of the 
     Senate and the Clerk of the House of Representatives shall 
     ensure that any computer or other system that the Secretary 
     or the Clerk may develop and maintain to receive 
     designations, statements, and reports in the forms required 
     or permitted under this paragraph is compatible with any 
     system that the Commission may develop and maintain.''.

     SEC. 508. POWER TO ISSUE SUBPOENA WITHOUT SIGNATURE OF 
                   CHAIRPERSON.

       Section 307(a)(3) of the Federal Election Campaign Act of 
     1971 (2 U.S.C. 437d(a)(3)) is amended by striking ``, signed 
     by the chairman or the vice chairman,''.

     SEC. 509. PROHIBITION OF CONTRIBUTIONS BY INDIVIDUALS NOT 
                   QUALIFIED TO VOTE.

       (a) Prohibition.--Section 319 of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 441e) is amended--
       (1) in the heading by adding ``AND INDIVIDUALS NOT 
     QUALIFIED TO REGISTER TO VOTE'' at the end; and
       (2) in subsection (a)--
       (A) by striking ``(a) It shall'' and inserting the 
     following:
       ``(a) Prohibitions.--
       ``(1) Foreign nationals.--It shall''; and
       (B) by adding at the end the following:
       ``(2) Individuals not qualified to vote.--It shall be 
     unlawful for an individual who is not qualified to register 
     to vote in a Federal election to make a contribution, or to 
     promise expressly or impliedly to make a contribution, in 
     connection with a Federal election; or for any person to 
     solicit, accept, or receive a contribution in connection with 
     a Federal election from an individual who is not qualified to 
     register to vote in a Federal election.''.
       (b) Inclusion in Definition of Identification.--Section 
     301(13) of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 431(13)) is amended--
       (1) in subparagraph (A)--
       (A) by striking ``and'' the first place it appears; and
       (B) by inserting ``, and an affirmation that the individual 
     is an individual who is not prohibited by section 319 from 
     making a contribution'' after ``employer''; and
       (2) in subparagraph (B) by inserting ``and an affirmation 
     that the person is a person that is not prohibited by section 
     319 from making a contribution'' after ``such person''.
                        TITLE VI--EFFECTIVE DATE

     SEC. 601. EFFECTIVE DATE.

       This Act and the amendments made by this Act take effect on 
     January 1, 1998.
                                  ____


   The Clean Money, Clean Elections Act--Section-by-Section Analysis


               Section 1. Short title; table of contents.

      TITLE I--CLEAN MONEY FINANCING OF SENATE ELECTION CAMPAIGNS

           (pp 2-32)

     SECTION 101. FINDINGS AND DECLARATIONS.

          Section 101 states the premises for the legislation.

     SECTION 102. ELIGIBILITY REQUIREMENTS AND BENEFITS OF ``CLEAN 
                   MONEY'' FINANCING OF SENATE ELECTION CAMPAIGNS.

       Section 102 of the bill would create a new Title V in the 
     1971 Federal Election Campaign Act (2 U.S.C. 431). It defines 
     ``clean money;'' establishes the requirements for a major 
     party or other candidate to qualify to receive clean money; 
     establishes the dates and methods for receiving clean money; 
     places restrictions, including spending limits, on clean 
     money candidates; establishes the amounts of clean money to 
     be provided

[[Page S5803]]

     to candidates for primary and general elections; and allows 
     for providing additional clean money to match expenditures by 
     and on behalf of an opponent which exceed a trigger-amount 
     above the voluntary spending limit adopted by the clean money 
     candidate.
       The section defines clean money as the funds provided to a 
     qualifying clean money candidate. Clean money will be 
     provided from a Senate Election Fund established in the 
     Treasury and composed of unspent seed money contributions, 
     qualifying contributions, penalties, and amounts appropriated 
     for clean money financing of Senate election campaigns.
       The clean money candidate qualifying period begins 270 days 
     prior to the date of the primary election. To qualify for 
     clean money financing for a primary or a general election, a 
     candidate must be certified as qualified by 30 days prior to 
     the date of that election. Prior to the candidate receiving 
     clean money from the Senate Election Fund, a candidate 
     wishing to qualify as a clean money candidate may spend only 
     ``seed money.'' Seed money contributions are private 
     contributions of not more than $100 in the aggregate by a 
     person. It is the only private money a clean money candidate 
     may receive as a contribution, and spend. A candidate's seed 
     money contributions are limited to a total of $50,000 plus an 
     additional $5,000 for every congressional district in the 
     state over one. Seed money can be spent for campaign-related 
     costs such as to open an office, fund a grassroots campaign 
     or hold community meetings, but cannot be spent for a 
     television or radio broadcast or for personal use. At the 
     time that a clean money candidate receives clean money, all 
     unspent seed money shall be remitted to the Commission to be 
     deposited in the Senate Election Fund
       To qualify for clean money financing, a major party 
     candidate must gather a number of qualifying contributions 
     equal to one-quarter of 1 percent of the state's voting age 
     population, or 1,000 qualifying contributions, whichever is 
     greater. A qualifying contribution is $5, made by an 
     individual registered to vote in the candidate's state, and 
     is made during the qualifying period. Qualifying 
     contributions are made to the Senate Election Fund by check, 
     money order or cash. They shall be accompanied by the 
     contributor's name and address and a signed statement that 
     the purpose of the contribution is to allow the named 
     candidate to qualify as a clean money candidate.
       A major party candidate is the candidate of a party whose 
     candidate for Senator, President or Governor in the preceding 
     5 years received, as a candidate of that party, 25 percent or 
     more of the total popular vote in that state for all 
     candidates for that office.
       Clean money candidates qualify for clean money for both the 
     primary and the general election. A qualifying candidate will 
     receive clean money for the primary election upon being 
     certified by the Commission, and once the ``primary election 
     period'' has begun. A candidate will be certified within 5 
     days of filing for certification if the candidate has 
     gathered the threshold number of qualifying contributions, 
     has not spent private money other than seed money, and is 
     eligible to be on the primary ballot. The primary election 
     period is from 90 days prior to the primary election date 
     until the primary election date. The qualifying period begins 
     180 days before the beginning of the primary election period. 
     A candidate must be certified as a clean money candidate by 
     30 days prior to the primary election in order to receive 
     clean money financing for the primary election.
       A clean money candidate who wins the party primary and is 
     eligible to be placed on the ballot for the general election 
     will receive clean money financing for the general election. 
     A candidate not of a major party who does not qualify as a 
     clean money candidate in time to receive clean money 
     financing for the primary election period may still qualify 
     for clean money financing for the general election by 
     gathering the threshold number of qualifying contributions by 
     30 days prior to the general election and qualifying to be on 
     the ballot.
       The amount of clean money a qualified candidate receives 
     for the primary and the general election is also the spending 
     limit for clean money candidates for each respective 
     election. The clean money amount for the general election for 
     a qualified clean money candidate is established according to 
     a formula based on a state's voting age population. The 
     formula results in clean money financing for primary and 
     general elections for major party candidates in contested 
     elections which equals 80 percent of the spending limits for 
     primary and general elections established by S. 25, the 
     McCain-Feingold bill.
       The section establishes a clean money ceiling for the 
     general election of $4.4 million, and a floor of $760,000. 
     The clean money amount for a contested major party primary is 
     67 percent of the clean money amount for the general 
     election. In the case of an uncontested primary or general 
     election, the clean money amount is 25 percent of the amount 
     provided in the case of a contested election.
       To qualify for clean money financing, a candidate who is 
     not a major party candidate must collect 150 percent of the 
     number of qualifying contributions that a major party 
     candidate in the same election is required to collect. A 
     candidate who is not a major party candidate must otherwise 
     qualify for clean money financing according to the same 
     requirements, restrictions and deadlines as does a major 
     party candidate. A candidate who is not a major party 
     candidate who qualifies as a clean money candidate in the 
     primary election period will receive 25 percent of the 
     regular clean money amount for a major party candidate in the 
     primary. A candidate who is not a major party candidate who 
     qualifies as a clean money candidate will receive the same 
     clean money amount in the general election as will a major 
     party candidate.
       Additional clean money financing, above the regular clean 
     money amount, will be provided to a clean money candidate to 
     match aggregate expenditures by a private money candidate, 
     and independent expenditures against the clean money 
     candidate or on behalf of an opponent of the clean money 
     candidate, which are, separately or combined, in excess of 
     125 percent of the clean money spending limit. The total 
     amount of matching clean money financing received by a 
     candidate shall not exceed 200 percent of the regular clean 
     money spending limit.
       The section establishes penalties for misuse of clean money 
     and for expenditure by a clean money candidate of money other 
     than clean money.

     SECTION 103. REPORTING REQUIREMENTS FOR PRIVATE MONEY 
                   CANDIDATES.

       Section 103 requires private money candidates facing clean 
     money opponents to report within 48 hours expenditures which 
     in aggregate exceed the amount of clean money provided to a 
     clean money candidate. A report of additional expenditures, 
     in aggregate increments of $1,000, will also be required.

     SECTION 104. TRANSITION RULE FOR CURRENT ELECTION CYCLE.

       Section 104 allows a candidate who received private 
     contributions or made private expenditures prior to enactment 
     of the Act not to be disqualified as a clean money candidate.

     TITLE II--INDEPENDENT EXPENDITURES; COORDINATED EXPENDITURES.

         (pp 33-47.)

     SECTION 201. REPORTING REQUIREMENTS FOR INDEPENDENT 
                   EXPENDITURES.

       Section 201 amends Section 304 (c) of the 1971 FECA (2 
     U.S.C. 434 (c)) to require reporting of independent 
     expenditures made or obligated to be made in support of an 
     opponent of or in opposition to a clean money candidate. 
     Prior to 20 days before the date of the election, each such 
     independent expenditure which exceeds in aggregate $1,000 by 
     a person shall be reported within 48 hours. After 20 days 
     prior to the date of the election, each such independent 
     expenditure made or obligated to be made which exceeds in 
     aggregate $500 shall be reported within 24 hours.

     SECTION 202. DEFINITION OF INDEPENDENT EXPENDITURE.

       Section 202 amends section 301 of the 1971 FECA (2 U.S.C. 
     431) to create a new definition of independent expenditure. 
     An independent expenditure would be an expenditure made by a 
     person other than a candidate or candidate's authorized 
     committee: That is made for a communication that contains 
     express advocacy; and is made without the participation or 
     cooperation of, and without coordination with, a candidate.
       The section defines express advocacy as a communication 
     that is made through a broadcast medium, newspaper, magazine, 
     billboard, direct mail or other general public communication 
     or political advertising and that: Advocates the election or 
     defeat of a clearly identified candidate, including a 
     communication that: Contains a phrase such as ``vote for'', 
     ``re-elect'', ``support'', ``cast your ballot for'', ``(name 
     of candidate) for Congress'', ``(name of candidate) in 
     1998'', ``vote against'', ``defeat'', ``reject''; or contains 
     campaign slogans or individual words that in context can have 
     no reasonable meaning other than to recommend the election or 
     defeat of a clearly identified candidate; or involves 
     aggregate disbursements of $5,000 or more; refers to a 
     clearly identified candidate; and is made within the last 60 
     days before the date of a general election.
       The section provides a fall back definition of express 
     advocacy should a portion of the above definition not be in 
     effect. The fall back definition would be in addition to any 
     portion of the above still in effect. The fall back 
     definition establishes that express advocacy would be a 
     communication that clearly identifies a candidate and: Taken 
     as a whole, with limited reference to external events, 
     expresses unmistakable support for or opposition to the 
     candidate; or is made for the clear purpose of advocating 
     the election or defeat of the candidate, as shown by a 
     statement or action by the person making the 
     communication, the targeting or placement of the 
     communication, and the use by the person making the 
     communication of polling, demographic or other similar 
     data relating to the candidate's campaign for election.

     SECTION 203. LIMIT ON EXPENDITURES BY POLITICAL PARTY 
                   COMMITTEES.

       The section amends section 315(d)(3) of the 1971 FECA (2 
     U.S.C. 441a(d)(3)) to limit a party's coordinated 
     expenditures in a race involving a clean money candidate. In 
     the case of any Senate election in which 1 or more candidates 
     is a clean money candidate, the amount that any party may 
     spend in connection with that race or in coordination with 
     that candidate is limited to 10 percent of the amount of 
     clean money a clean money candidate is eligible to receive 
     for the general election.

     SECTION 204. PARTY INDEPENDENT EXPENDITURES AND COORDINATED 
                   EXPENDITURES.

       The section, modeled after S. 25, the McCain-Feingold bill, 
     strictly tightens the

[[Page S5804]]

     definition of party coordination with a candidate in numerous 
     ways. The section also requires a party which makes a 
     coordinated expenditure in connection with a general election 
     campaign for Federal office in excess of $5,000 to file a 
     certification that the party will not make any independent 
     expenditures in connection with that campaign. The section 
     further strictly tightens the definition of coordinated 
     expenditure by persons other than a party. And it establishes 
     that coordinated expenditures shall be considered to be 
     contributions made to a candidate (with an exception that 
     allows the limited party coordinated expenditures on behalf 
     of a clean money candidate as provided in Section 203).

                     TITLE III--VOTER INFORMATION.

           (pp 47-57)

     SECTION 301. FREE BROADCAST TIME.

       The section provides clean money candidates with 30 minutes 
     of free broadcast time during the primary election period and 
     60 minutes of free broadcast time during the general election 
     period. The broadcasts shall be between 30 seconds and 5 
     minutes in length, aired during prime time for television or 
     drive time for radio. Any one station shall not be required 
     to provide a clean money candidate with more than 15 minutes 
     of free time during an election period.

     SECTION 302. BROADCAST RATES AND PREEMPTION.

       A clean money candidate in a contested election shall be 
     charged 50 percent of the lowest charge described in section 
     315(b) of the Communications Act of 1934 (47 U.S.C.315(b)) 
     for purchased broadcast time during the 30 days preceding 
     the primary and 60 days preceding the general election.

     SECTION 303. CAMPAIGN ADVERTISING.

       The section requires that campaign advertisements contain 
     sufficient information clearly identifying the candidate on 
     whose behalf the advertisements are placed. The information 
     shall include an audio statement by the candidate where 
     applicable which states that the candidate approves the 
     communication, and a clearly identifiable photographic or 
     similar image of the candidate where applicable. Private 
     money candidates shall include the following statement: 
     ``This candidate has chosen not to participate in the Clean 
     Money, Clean Elections Act and is receiving campaign 
     contributions from private sources.''
       The section also establishes new reporting requirements for 
     issue advertisements, including the amount of the 
     disbursement for an issue advertisement, the name and address 
     of the person making the disbursement, donors of $5,000 or 
     more to the person during the calendar year, and the purpose 
     of the advertisement. An issue advertisement is an 
     advertisement which is not an independent expenditure or a 
     contribution, that contains the name or likeness of a Senate 
     candidate during an election year, and recommends a position 
     on a political issue.

     SECTION 304. LIMIT ON CONGRESSIONAL USE OF THE FRANKING 
                   PRIVILEGE.

       The section prohibits franked mass mailings during an 
     election year by a Senate candidate who holds Congressional 
     office, except for a notice of public meeting which contains 
     only the candidate's name, and the date, time and place of 
     the public meeting.

           TITLE IV--SOFT MONEY OF POLITICAL PARTY COMMITTEES

           (pp 57-71)
       This title prohibits political party soft money and is 
     taken from S. 25, the McCain-Feingold bill.

     SECTION 401. SOFT MONEY OF POLITICAL PARTY COMMITTEE.

       The section prohibits national parties from soliciting or 
     receiving contributions or spending funds not subject to the 
     Federal Election Campaign Act. It prohibits state, district 
     or local committees of a political party from spending money 
     during an election year for activity that might affect the 
     outcome of a Federal election unless the money is subject to 
     the FECA. The section establishes certain activities excluded 
     from the above prohibition, which are legitimate or necessary 
     activities of the committees.
       The section prohibits parties or their committees from 
     soliciting funds for, or making any donation to, a tax-exempt 
     organization. It also prohibits candidates and Federal 
     officeholders from receiving or spending funds not subject to 
     the FECA.

     SECTION 402. STATE PARTY GRASSROOTS FUNDS.

       The section allows establishment of state party grassroots 
     funds solely for the purpose of generic campaign activity, 
     voter registration, other activities specified in the FECA 
     and the development and maintenance of voter files. The fund 
     shall be separate and segregated

     SECTION 403. REPORTING REQUIREMENTS.

       The section establishes new reporting requirements for 
     national parties and congressional campaign committees for 
     all receipts and disbursements.

   TITLE V--RESTRUCTURING AND STRENGTHENING OF THE FEDERAL ELECTION 
                               COMMISSION

           (pp 71-81)

     SECTION 501. APPOINTMENT AND TERMS OF COMMISSIONERS.

       The President shall appoint 6 members of the Commission 
     with the advice and consent of the Senate and 1 member from 
     among persons recommended by the Commission.

     SECTION 502. AUDITS.

       The section authorizes random audits and investigations by 
     the Commission to ensure voluntary compliance with the FECA. 
     The subjects of such audits and investigations shall be 
     selected on the basis of impartial criteria established by a 
     vote of at least 4 members of the Commission.

     SECTION 503. AUTHORITY TO SEEK INJUNCTION.

       The section authorizes and sets out standards for 
     initiation by the Commission of a civil action for a 
     temporary restraining order or preliminary injunction.

     SECTION 504. STANDARD FOR INVESTIGATION.

       The section grants the Commission greater discretion in 
     opening an investigation.

     SECTION 505. PETITION FOR CERTIORARI.

       The section allows petition to the Supreme Court on 
     certiorari.

     SECTION 506. EXPEDITED PROCEDURES.

       The section allows the Commission to order expedited 
     proceedings based on clear and convincing evidence that a 
     violation of the FECA has occurred, is occurring, or is about 
     to occur, to avoid harm or prejudice to the interests of the 
     parties.

     SECTION 507. FILING OF REPORTS USING COMPUTERS AND FACSIMILE 
                   MACHINES.

       The section instructs the Commission to require the filing 
     of reports in electronic form in certain cases, and instructs 
     the Commission to allow the filing of reports by facsimile 
     machine.

     SECTION 508. POWER TO ISSUE SUBPOENA WITHOUT SIGNATURE OF 
                   CHAIRPERSON.

       The section allows the Commission to issue a subpoena 
     without the signature of the chairperson or vice chairperson.

     SECTION 509. PROHIBITION OF CONTRIBUTIONS BY INDIVIDUALS NOT 
                   QUALIFIED TO VOTE.

       The section prohibits contributions in connection with a 
     Federal election by an individual who is not qualified to 
     register to vote in a Federal election, and prohibits 
     receiving contributions from any such individual.

                        TITLE VI--EFFECTIVE DATE

           (p. 81)

     SECTION 601. EFFECTIVE DATE.

       The Act would take effect on January 1, 1998.

   SENATE CLEAN MONEY--CLEAN ELECTIONS BILL--KERRY, WELLSTONE, GLENN,
                              BIDEN, LEAHY
------------------------------------------------------------------------
                                                               General
                                  Voting age    Qualifying     election
             State                population   contribution  clean money
                                     \1\         threshold    amount \3\
----------------------------------------------------\2\-----------------
Alabama.......................     3,197,000          7,993   $1,087,280
Alaska........................       423,000          1,058      760,000
Arizona.......................     3,278,000          8,195    1,106,720
Arkansas......................     1,850,000          4,625      764,000
California....................    23,012,000         57,530    4,400,000
Colorado......................     2,825,000          7,063      998,000
Connecticut...................     2,476,000          6,190      914,240
Delaware......................       549,000          1,373      760,000
Florida.......................    10,977,000         27,443    2,515,400
Georgia.......................     5,401,000         13,503    1,400,200
Hawaii........................       877,000          2,193      760,000
Idaho.........................       841,000          2,103      760,000
Illinois......................     8,691,000         21,728    2,058,200
Indiana.......................     4,342,000         10,855    1,188,400
Iowa..........................     2,132,000          5,330      831,680
Kansas........................     1,885,000          4,713      772,400
Kentucky......................     2,915,000          7,288    1,019,600
Louisiana.....................     3,117,000          7,793    1,068,080
Maine.........................       944,000          2,360      760,000
Maryland......................     3,785,000          9,463    1,228,400
Massachusetts.................     4,670,000         11,675    1,254,000
Michigan......................     7,057,000         17,643    1,731,400
Minnesota.....................     3,411,000          8,528    1,138,640
Mississippi...................     1,960,000          4,900      790,400
Missouri......................     3,964,000          9,910    1,271,360
Montana.......................       647,000          1,618      760,000
Nebraska......................     1,210,000          3,025      760,000
Nevada........................     1,186,000          2,965      760,000
New Hampshire.................       867,000          2,168      760,000
New Jersey....................     6,001,000         15,003    1,520,200
New Mexico....................     1,212,000          3,030      760,000
New York......................    13,644,000         34,110    3,048,800
North Carolina................     5,489,000         13,723    1,417,800
North Dakota..................       475,000          1,188      760,000
Ohio..........................     8,325,000         20,813    1,985,000
Oklahoma......................     2,420,000          6,050      900,800
Oregon........................     2,395,000          5,988      894,800
Pennsylvania..................     9,161,000         22,903    2,152,200
Rhode Island..................       755,000          1,888      760,000
South Carolina................     2,761,000          6,903      982,640
South Dakota..................       528,000          1,320      760,000
Tennessee.....................     3,997,000          9,993    1,279,280
Texas.........................    13,676,000         34,190    3,055,200
Utah..........................     1,322,000          3,305      760,000
Vermont.......................       442,000          1,105      760,000
Virginia......................     5,044,000         12,610    1,328,800
Washington....................     4,096,000         10,240    1,139,200
West Virginia.................     1,404,000          3,510      760,000
Wisconsin.....................     3,817,000          9,543    1,236,080
Wyoming.......................       348,000          1,000      760,000
------------------------------------------------------------------------
\1\ Data certified by the Federal Elections Commission; current through
  July 1, 1996.
\2\ Number of $5 qualifying contributions to Senate Election Fund in
  candidate's name.
\3\ Clean money amount is also the spending limit for clean money
  candidates. Clean money amount for a contested major party primary is
  67 percent of the clean money amount for the general election.

                   Clean Money Amount (CMA) Made Easy


                           floor and ceiling

       The Clean Money Amount (CMA) is never greater than $4.4 
     million.
       The CMA is never less than $760 thousand.


                                formulas

       A. If the Voting Age Population (VAP) is less than 4 
     million:
           $320,000 + VAP (.24) = CMA
       B. If the VAP is greater than 4 million:
           $320,000 + VAP (.2) = CMA


                                samples

Minnesota...........................    3,411,000     8,528   $1,138,640
  VAP = 3,411,000
  $320,000 + 3,411,000 (.24) = $1,138,640
Massachusetts.......................    4,670,000    11,675   $1,254,000
  VAP = 4,670,000
  $320,000 + 4,670,000 (.2) = $1,254,000
California..........................   23,012,000    57,530   $4,400,000
Rhode Island........................      755,000     1,888     $760,000
 

  Mr. WELLSTONE. Mr. President, I join my colleague today, Senator 
Kerry, as well as Senators Glenn, Biden, and Leahy, in introducing the 
Clean Money Clean Elections Act of 1997.
  One of the most important ethical issues of this Congress is the way 
in

[[Page S5805]]

which money has come to dominate politics. That is why we are 
introducing this legislation to address what has become a systemic 
corruption, a corruption which results from the sharp disparity of 
power between those who are able to mobilize and invest large amounts 
of campaign cash on one hand, and ordinary citizens on the other. Our 
proposal would provide sweeping and simple reform. It would sever the 
direct connection between big-money special interests and Senate 
candidates.
  American democracy needs elections, not auctions. But our current 
campaign finance system locks most citizens out of participation. Most 
citizens don't believe they can be players when it comes to the really 
important policy decisions that affect their lives. They don't believe 
they have a real voice. They are not even sure that their vote counts 
for much.
  At the same time, our current system makes sure that big givers and 
heavy hitters always have a seat at the table. That is why so many 
believe, with reason, that we have a pseudo-democracy, not authentic 
democracy. They see the subversion of democracy, the loss of the 
principle of one-person, one-vote. They are losing faith in the idea 
that Government is supposed to be on their side.
  In this system, what's legal is a scandal.
  To address this mix of money and politics which is corrupting our 
politics, my colleagues and I are proposing an approach to reform 
called ``Clean Money, Clean Elections.'' I believe our proposal is 
ambitious and innovative. I am sure that it is needed.
  Citizens around the country are turning up the heat in a push for 
this vision of real reform. Voters in Maine chose this approach to the 
finance of election campaigns. And now legislators and the Governor in 
Vermont have decided to pursue it. A number of States will be 
considering the Clean Money Clean Elections approach during the coming 
months. I strongly endorse these actions at the State level. And I hope 
that citizens around the country will continue to keep comprehensive 
campaign finance reform at the front of the Nation's political agenda.
  This Congress needs pressure. It needs a jolt. What it needs is a 
counterbalancing pressure to ensure that the voices who believe in 
reform are heard above the voices of those who march on Washington 
every day--the monied interests who far too often determine what issues 
are on the table in American politics, and who far too often shape the 
outcomes within that agenda. The American people should turn up the 
heat. This is the only way reform will happen.
  Reform can happen. When we passed lobby reform and a gift ban during 
the last Congress, despite great resistance, it was because Members of 
Congress were forced to vote, with the people of America watching. Now, 
we plan to take this proposal to the American people--State by State, 
townhall by townhall, to build the support needed to enact true reform. 
The people are watching. When the time comes to vote, Members of 
Congress will need to vote the right way.
  We all know that campaigns currently cost far too much money. Our 
bill will set a voluntary spending limit on the campaigns of clean 
money candidates. The spending limit is based on a formula tied to each 
State's voting-age population. We have adopted the McCain-Feingold 
bill's formula, except that we subtract 20 percent from the upper 
limit. We subtract 20 percent because that is approximately the amount 
most candidates now spend to raise money. Under our bill they won't 
have to spend that time and money to raise money. In Minnesota, the 
clean money amount, which also is the spending limit for a clean money 
candidate, will be about $1.14 million for the general election. In a 
contested primary, the amount will be about $764,000. That adds up to 
a total clean money amount of $1.9 million in Minnesota for a clean 
money Senate candidate.

  Less than $2 million is enough in Minnesota:
  If we also ban soft money to the parties, which this bill does; and 
if we close loopholes on independent expenditures and so-called 
``issue'' ads which are really election ads, which this bill does.
  Our provisions on these items are similar to those in S. 25, the 
McCain-Feingold bill, a bill which I am proud to have co-authored. I 
continue to support that bill.
  But we really need to go further. The Clean Money Clean Elections Act 
does so. It takes special-interest money out of campaigns. It gives the 
country's electoral system back to the people.
  Americans know that the current campaign finance system works for the 
monied special interests, not for them. They're paying too much now for 
our elections. Too much in special favors, whether it's tax breaks for 
huge companies, tobacco politics that threaten the health of children, 
unneeded spending, and misdirected national policy. These result in the 
systemic corruption that is enshrined in our present system of 
financing campaigns. That's why we need to change it.
  We need to take the special interest money out, and replace it with 
Clean Money Campaigns. Clean Money Campaigns would:
  Level the playing field for non-incumbents, including those who are 
not major party candidates; allow candidates to focus on seeking office 
and serving the public once in office, rather than spending an 
inordinate amount of time raising money; and utilize free media time to 
allow candidates to get their message out.
  Candidates who meet our bill's rigorous standard for showing serious 
public support will receive full public financing in contested primary 
and general elections. They will receive the full amount of the 
spending limit for their State. In Minnesota, to qualify as a clean 
money candidate, a major-party candidate would have to gather about 
8,500 signatures, each accompanied by a $5 check to the Senate Election 
Fund. That is a tough standard of seriousness, but it is realistic. A 
candidate who is not seeking the nomination of, or who has not received 
the nomination of, a major party can also receive clean money financing 
for his or her campaign. That candidate must gather 150 percent of the 
qualifying contributions that a major party candidate needs to gather 
in the same State. Again, it requires that a candidate demonstrate 
genuinely broad support, but it is an achievable threshold.
  The American people can no longer afford what has been called ``The 
Best Congress Money Can Buy.'' That is why we have to take special-
interest money out of campaigns. The roughly $160 million of annual 
cost of Senate elections under our proposal can be easily offset with 
reductions in current corporate welfare or other unneeded expenditures.
  Are Americans willing to fight for and put in the budget clean 
elections that really belong to them--that belong to the people? I 
believe they are. So do the many groups endorsing our bill: Public 
Campaign, Public Citizen, League of Women Voters, Citizen Action, 
USPIRG, National Council of Churches of Christ in the USA, United 
Church of Christ, Office for Church and Society. Still other 
organizations support our approach, even if they do not endorse 
specific pieces of legislation.
  Mr. President, the Senate needs to consider comprehensive campaign 
finance reform soon--before we leave this summer. This bill shows us 
the direction to go. It is workable, and it is needed. I urge my 
colleagues who have not yet read the bill to consider cosponsoring it. 
I am hopeful that this bill and a similar proposal to be introduced 
during the coming weeks in the House of Representatives will contribute 
to real momentum for genuine reform during this Congress.
  Mr. President, let me say that I am pleased to introduce this bill 
today with my colleagues, Senators Kerry, Glenn, Biden, and Leahy. And 
I am confident there will be other Senators in the future who support 
this approach to reform.
  There are other worthy and important efforts going on here, the 
McCain-Feingold bill being one of them, to try to reduce the amount of 
money that is flowing in and affecting the politics of our country. I 
personally think, and I think the majority of people in this country 
agree, that this is a core issue, a core problem. Many things which 
could happen here don't happen because they get trumped by money, big 
money in politics.
  The ethical issue of our time is the way money has come to dominate 
politics. If you believe each person should

[[Page S5806]]

count as one, and no more than one, which is the standard of 
representative democracy, that is a harsh verdict.
  I do think we have corruption, but I don't like bashing colleagues. I 
am not talking about individual colleagues. The vast majority of 
Senators and Representatives with whom I serve--Democrats and 
Republicans alike--believe in public service and do their very best to 
serve people. Still, there is a systemic corruption. We have such a 
huge imbalance between those people at the top who have economic 
resources and access to power and the vast majority of people who just 
feel locked out.
  Mr. President, I have a friend--Jim Hightower, who used to be 
Agriculture Commissioner in Texas. He has a wonderful way of putting 
things. Jim Hightower says you don't have to be who's who to know 
what's what. The what's what is that a lot of people in the country 
think there has been a hostile takeover of our electoral and Government 
processes by big money interests. Many people don't feel a part of this 
system any longer. When that is the case, there is not anything more 
important that can be done than to pass a reform bill.
  The goals of the clean money/clean elections bill are simple: 
dramatically reduce the amount of money that is spent, get the 
interested dollars and private money out, have a level playing field, 
try to eliminate, or come as possible to eliminating special interest 
access, have real elections as opposed to auctions, don't have Senators 
spending so much of their time raising money, instead they should be 
trying to be good legislators. I think people want to turn this system, 
which they think is a rotten system, not upside down, it is upside down 
now, but right side up.
  What our bill does, with agreed-upon spending limits, so candidates 
don't have to go out and raise all the private money, is we break the 
link between private money and our votes and work as legislators. Under 
our bill, the money is no longer interested money. We dramatically 
reduce spending by setting voluntary limits, then campaign spending by 
clean money candidates comes from this Senate election fund. We tighten 
the definition when it comes to independent expenditures. And we do the 
same for issue advocacy ads, some of which are barely disguised 
campaign ads. Our bill includes free broadcast time. If you really want 
to have a system where the vast majority of the people feel like they 
can be a part of it, we are going to have to take this journey.
  Mr. President, two final points. If we can pass McCain-Feingold, that 
moves our country forward, that would be an important step. But this 
piece of legislation, which won't pass immediately, has a lot of energy 
behind it, too. We introduce it as part of the debate, as part of the 
energy behind reform. I have met with the people who were involved in 
the Maine effort, and they passed a clean effort option. I met with 
legislators and a lot of people in Vermont, and they are going to pass 
it. I met with people in the Midwest. There is a lot of energy in the 
Midwest and New England. It may be States which pass this kind of 
reform at first. You are going to see a lot of pressure on people here 
from the grassroots.
  We need to have a galvanized public. We are going to have to have an 
external jolt to this Congress to pass a reform bill, but there is no 
more important thing that we can do than to pass such a reform bill. 
This clean money/clean elections bill would represent an enormous step 
forward for our country, toward real elections as opposed to auctions, 
toward authentic democracy as opposed to pseudo democracy, toward a 
Government of, by and for the people, not of, by and for those who have 
the wealth and economic resources.
  I think people in this country yearn for a political process they can 
believe in. They yearn for reform, and I don't agree with one person 
who says, ``Look, people don't seem to care that much.'' People care 
deeply, they care desperately, they care about issues that affect 
themselves and their families. They have hopes for themselves and their 
families and their communities, but right now I think most people 
believe that they there is not a heck of a lot they can do on the 
issues that are most important to them, because our political process 
has essentially been dominated by big money, not people's needs.
  Mr. President, we have given people entirely too much justification 
for that point of view. We have to make some big changes. Some of us 
are going to be fighting hard on the floor for reform. I think there 
will be plenty of pressure building around the country. It will be a 
tough fight, but I cannot think of a more important fight as a Senator 
from Minnesota.
  I yield the floor.
  Mr BIDEN. Mr. President, the single most significant thing we can do 
in Congress today is to reform the way we fund political campaigns in 
this country. I have been saying it for 24 years now, and while some 
things are better than they used to be--large amounts of cash are no 
longer being passed under the table in brown paper bags--many things 
are worse--large checks are being passed over the table, or in the 
Chamber of the House of Representatives, in the clear light of day. 
But, regardless of what's better and what's worse, the fundamental 
problem, in my view, remains.
  That problem will not be fixed by tinkering at the edges, or making a 
small reform here and a small reform there--because the fundamental 
problem is not a flaw in the system's construction. The fundamental 
problem is the system itself--a system where the amount of private 
money is out of control and is not susceptible to be controlled in the 
public interest. Until we get private money completely out of the 
system, we will not completely reform the system.
  That is why, Mr. President, I have been pushing for public funding of 
congressional campaigns for my entire career, and that is why I am 
pleased today to join several of my colleagues in introducing the Clean 
Money, Clean Elections Act.
  When I first came to the United States Senate, 24 years ago, in 
speeches on this floor and in testimony before the Rules Committee, I 
outlined three principles of a better system. All three are contained 
in this important proposal.
  First and foremost, we must have a system of public funding. Let me 
explain why that is so crucial. When they asked Willy Sutton why he 
robbed banks, he said that was where the money was. Politicians do not 
rob banks, but they, like Willy Sutton, must go where the money is. You 
will not get very far in this business by asking for contributions from 
people who do not have money. So, inevitably, people running for office 
find themselves on the doorsteps of the wealthy and the special 
interests. Or, they are wealthy enough to fund their own campaigns.
  The result is that other old saying--he who pays the piper calls the 
tune. Those who pay the bills ultimately, when you get right down to 
it, are the ones who decide who runs for office. And, they are the 
ones, at least in the mind of the public, to whom elected officials are 
beholden.
  No matter what other reforms you enact, unless you get private money 
out of the system, that is the way it will continue. I submit that it 
would be better to let the American people decide--on the merits--who 
runs for office. And, I submit that it would be far better for America 
to make sure that elected officials are beholden to no one but the 
people who elected them.
  Second, we need to level the playing field between incumbents and 
challengers. I have, Mr. President, been both an incumbent and a 
challenger. And, I can tell you that being an incumbent has its 
disadvantages. But, the biggest advantage of incumbency is in the money 
chase. It is such an advantage that if I were looking out only for my 
own self-interest, I would not support this proposal. I do pretty well 
in raising money, and the thought that my opponent would have the same 
amount of money as I do is not exactly an appealing notion.
  But, there is something much bigger at stake here than my own 
electoral future. What is at stake is nothing less than a healthy, 
vibrant democracy. What is at stake is whether election to office will 
be based on the merits of the individuals, not on who is the best 
fundraiser.
  Third, we need to limit the overall amount of money that can be spent 
in political campaigns. Back in 1976, all candidates for all 
congressional races--Senate and House--spent $99 million in

[[Page S5807]]

the general election. In 1996, all candidates for Congress in the 
general election spent over $626 million--more than six times as much. 
In just the last 4 years, the total amount of money given to political 
parties has increased 73 percent--in just the last 4 years.
  Unfortunately, the Supreme Court has ruled--in what is, in my view, a 
wrong decision, but one that we are bound by--that spending money is 
the same thing as speech. Thus, Congress cannot limit spending in 
political campaigns, unless a candidate is offered some benefit in 
return for voluntarily agreeing to a spending limit.
  Enter the ``Clean Money, Clean Elections Act.'' This significant 
proposal that we are introducing today would, as I said a moment ago, 
meet the three principles I just outlined. It would limit spending in 
campaigns--in a constitutional way--by providing public funding and 
free media time to candidates who agreed to abide by those limits. And, 
it would be full public funding for both challengers and incumbents--so 
that private money is eliminated from the system and so that both 
challengers and incumbents are on the same level playing field.
  I am not so naive, Mr. President, to believe this bill is going to 
pass today--or even without a fight. I have been down this road too 
many times before. Too many special interests have too many vested 
interests in the status quo. But, if we are to reverse the tide of 
cynicism and mistrust that surrounds political campaigns--and even our 
institutions of government--then we must change the system so that the 
only interests we are all concerned about are the interests of the 
American people.
  Mr. GLENN. Mr. President, I appreciate the opportunity today to 
support my colleagues, Senators Kerry and Wellstone, in cosponsoring 
this much needed reform of our campaign finance system. I believe that 
simple principles should be applied in our democracy. We should 
encourage the active participation of the greatest possible number of 
citizens and restrain the undue influence of narrow and divisive 
factions and special interests.
  I believe that our democracy must be built on common rather than 
special interests and that our elections should depend upon common 
sense rather than dollars and cents. Only through an open and fair 
election system can we guarantee that our democracy will be open and 
fair. Only then can the notion of consent of the governed have any true 
meaning.
  I believe that many of the statements made here today underscore the 
need to reform our current system. I have been working with Senators 
Kerry and Wellstone to provide a workable alternative that will go a 
long way toward bringing long overdue improvements to our electoral 
process.
  Let's face facts. Our current system of paying the bills for American 
elections is awash in money, largely unregulated and often unreported. 
The improvements made a generation ago to provide partial public 
financing for presidential campaigns and contribution and spending 
limits for all federal elections have been eroded and are now 
overwhelmed by Supreme Court decisions, overly partisan competition for 
money, increased costs of advertising and special interest 
contributions. Nothing undermines the legitimacy and integrity of our 
elections more than the belief that special interests have special 
privileges.
  Many American voters believe that campaigns are too expensive, that 
special interests wield too much influence, while the average voter has 
too little, and that elected officials spend too much time raising 
money and not enough time solving the Nation's problems.
  The McCain-Feingold proposal to provide voluntary campaign spending 
limits is supported by a number of Senators and I am pleased to be a 
cosponsor. However, even with the much needed improvements in that 
legislation, I believe that the only way to eliminate any doubt about 
who influences elections is to provide financing underwritten by the 
American people.
  The Clean Money, Clean Elections Act built upon the plan proposed in 
Maine would limit campaign spending, prohibit special interest 
contributions to candidates, eliminate fund raising efforts, provide 
equal funding and a level playing field for all candidates, and end 
many of the loopholes that have wrecked our current system.
  Let's end this current abuse and establish a system that leaves no 
doubt that only the clean money of the American people pays for 
American elections.
  Building on that Maine ballot initiative, nearly 20 States are now 
reviewing how they can improve their elections. Federal legislation is 
needed to bring these reforms to Federal elections and we propose to 
bring those improvements into the congressional debate on campaign 
finance reform.
  This proposal will provide:

       The most comprehensive reform of all the proposals 
     currently under consideration; the lowest spending limits: 
     the most free time and discounted media; the strictest limits 
     on special interest money and influence; the most competitive 
     election financing; an end to the money chase and dialing for 
     dollars.

  As the Nation's attention turns to the campaign finance investigation 
in the Senate Governmental Affairs Committee, I want everyone to 
understand that highlighting these issues will be of little use if 
action is not taken. Certainly, the investigation should be conducted 
in a full and fair manner. But at the end of day, I believe that we owe 
it to ourselves as a people to end our current campaign finance system 
and bring true reform.
  I am pleased to join my colleagues who are long time advocates of 
serious campaign finance reform and look forward to working together to 
enact this important legislation.
                                 ______
                                 
      By Mr. KOHL (for himself and Mr. Brownback):
  S. 919. A bill to establish the Independent Bipartisan Commission on 
Campaign Finance Reform to recommend reforms in the law relating to 
elections for Federal office; to the Committee on Rules and 
Administration.


  THE INDEPENDENT BIPARTISAN COMMISSION ON CAMPAIGN FINANCE REFORM ACT

  Mr. KOHL. Mr. President, I rise today to introduce legislation to 
address the serious problem within our campaign finance system. I have 
made similar remarks earlier this year, so I will not belabor the 
problems again.
  The American public is demanding that Congress reform our campaign 
finance system, and many doubt whether we are ready or even able to 
meet that demand. I am support S. 25, introduced by Senators McCain and 
Feingold. This bipartisan legislation is the best bill moving through 
the Congress to reform our campaign system. However, there are signs 
that Congress may not pass this legislation.
  Therefore, if, and only if S. 25 is not passed, I think the 105th 
Congress must put in place a process for reforming the campaign finance 
system. The legislation I introduce today for myself and Mr. Brownback 
of Kansas would establish an independent, bipartisan commission to 
reform our campaign finance laws. Earlier this year I introduced 
similar legislation, also as a fall-back measure if S. 25 is not 
passed.
  This measure, like the bill I introduced earlier this year, 
establishes a commission similar to the Base Closure and Realignment 
Commission. The Commission would have a limited time to make 
recommendations, Congress would be forced to vote up or down on their 
proposals, and would not have the power to amend the legislation.
  Mr. President, I sincerely hope that Congress does not have to turn 
over this matter to an independent commission. But, if we do not pass 
meaningful campaign finance reform this year, I believe it is the next 
best alternative. And, if we do create a campaign finance reform 
commission, it must be a real commission, with real powers, and not 
another advisory committee.
  Congress has created many panels in the past to make recommendations 
about reforming campaign finance laws. But, for reform to genuinely 
take place, we must empower the Commission with the ability to create a 
package of reforms that Congress cannot change. Like the successful 
Base Closure and Realignment Commission, Congress should have only the 
power to vote up or down on the recommendations.
  Mr. President, we should not allow another Congress to come and go 
without passing meaningful campaign finance reform. Let this be the 
year that Congress responds to cry from the grassroots and restore 
America's faith in our election system.

[[Page S5808]]

  Mr. BROWNBACK. Mr. President, I am proud today to be offering a 
bipartisan proposal for campaign finance reform with my distinguished 
colleague, the senior Senator from Wisconsin, Herb Kohl.
  Mr. President, those of us who have spent the balance of our 
congressional careers working to build public trust in the political 
system know of the difficulties in offering constructive alternatives. 
Any legislation which fundamentally alters the way public officials 
seek election is bound to attract their attention and intense 
scrutiny--as it should.
  Mr. President, Senator Kohl and I believe this proposal offers a 
hopeful avenue for progress. Recognizing that any reform effort must be 
bipartisan to succeed, the legislation we are offering establishes a 
fair and independent process to bring this issue to the floor of the 
Congress for consideration. Without prejudging any outcomes, this bill 
would help to break the logjam which threatens to prevent even 
meaningful consideration of alternatives for reform.
  Mr. President, Senator Kohl and I do not claim to have all the 
answers, but we believe that through this vehicle, we can take the next 
step in accomplishing substantial progress on this important matter.
                                 ______
                                 
      By Mr. WYDEN:
  S. 920. A bill to require the Secretary of Health and Human Services 
to issue an annual report card on the performance of the States in 
protecting children placed for adoption in foster care, or with a 
guardian, and for other purposes; to the Committee on Labor and Human 
Resources.


                  THE ADOPTION REPORT CARD ACT OF 1997

  Mr. WYDEN. Mr. President, I rise today to introduce the Adoption 
Report Card Act of 1997 to redress the poor quality of national data on 
adoption and foster care.
  According to the American Public Welfare Association, the population 
of children in foster care is growing 33 times faster than the United 
States child population in general. During the past 10 years, more 
children have entered the foster care system than have exited. Every 
year, 15,000 children graduate from foster care by turning 18 with no 
permanent family. According to the American Civil Liberties Union, 40 
percent of all foster children leaving the system end up on welfare.
  In addition to the 50,000 children who today are legally free to be 
adopted, there are hundreds of thousands more who drift for days, 
months, or years within the state-run system--a system that too often 
lets down some of society's most vulnerable--our children.
  I have already introduced legislation to promote kinship care as one 
solution to this problem. However, more still needs to be done. Part of 
the problem is we simply don't have any data on where children are in 
the system. No one knows how long our children are languishing in the 
foster care system, or how long it takes a State to find adoptive 
placements for children. Finding comprehensive data for each State is a 
challenge and, until recently, the Department of Health and Human 
Services [HHS] did not collect comprehensive national data on adoption 
from every State.
  The legislation I offer in the Senate today will require HHS to issue 
an annual report card on the performance of each State in protecting 
children placed for adoption, in foster care or with a guardian.
  My bill will require HHS to develop outcome measures, a rating system 
for each State and make recommendations on how States can improve their 
efforts to move children from foster care to loving families.
  It is high time we started holding those responsible for children in 
foster care accountable for the treatment of these children. I believe 
an annual report card will give us the information we need to improve 
the care and quality of life for these children.
  I ask unanimous consent that my statement and a copy of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 920

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Adoption Report Card Act of 
     1997''.

     SEC. 2. ANNUAL REPORT CARD ON STATE PERFORMANCE IN PROTECTING 
                   CHILDREN.

       (a) In General.--Part E of title IV of the Social Security 
     Act (42 U.S.C. 670 et seq.) is amended by adding at the end 
     the following:

     ``SEC. 479A. ANNUAL REPORT CARD.

       ``(a) In General.--The Secretary shall issue an annual 
     report card containing ratings of the performance of each 
     State in protecting children who are placed for adoption, in 
     foster care, or with a guardian, in the State. The report 
     card shall include ratings on outcome measures for categories 
     related to the family conditions of the children.
       ``(b) Outcome Measures.--
       ``(1) In general.--The Secretary shall develop, after 
     consulting with child advocacy organizations, a set of 
     outcome measures to be used in preparing the report card.
       ``(2) Categories.--In developing the outcome measures, the 
     Secretary shall develop measures for categories relating to--
       ``(A) the number of placements for adoption, in foster 
     care, or with a guardian;
       ``(B) the number of children who leave foster care at the 
     age of majority without having been adopted or placed with a 
     guardian;
       ``(C) the median and mean length of stay in foster care;
       ``(D) the median and mean length of time between the 
     availability of a child for adoption and the adoption of the 
     child;
       ``(E) the median and mean length of time between the 
     beginning of foster care for a child and the finalization of 
     a placement plan for the child by the agency involved;
       ``(F) the number of children in foster care, specifying, in 
     the case of a child in foster care who is a child with 
     special needs, each factor or condition that makes the child 
     a child with special needs (including the age and ethnicity 
     of the child), as determined by the State in accordance with 
     section 473(c);
       ``(G) the average annual costs for a child in foster care, 
     and costs for any alternative living arrangements for a child 
     who would otherwise be in foster care and how there costs are 
     allocated;
       ``(H) the median and average length of time required to 
     terminate parental rights for a child after the child enters 
     foster care;
       ``(I) the number of parents whose parental rights have been 
     terminated;
       ``(J) the number of children that are affected due to the 
     termination of parental rights;
       ``(K) the median and average length of time required to 
     place a child for adoption once parental rights are 
     terminated for the child;
       ``(L) the average number of times a child is placed in 
     foster care before the child is permanently adopted and the 
     number of placements the child experiences; and
       ``(M) the number of deaths of children in foster care, and 
     substantiated cases of abuse or neglect among children in 
     foster care.
       ``(3) Measures.--In developing the outcome measures, the 
     Secretary shall use measures from the Adoption and Foster 
     Care Analysis and Reporting System established under section 
     479 to the maximum extent possible.
       ``(c) Rating System.--The Secretary shall develop a system 
     (including using State census data and poverty rates) to rate 
     the performance of each State based on the outcome measures.
       ``(d) Information.--In order to receive funds under this 
     part, a State shall annually provide to the Secretary such 
     adoption, foster care, and guardianship information as the 
     Secretary may determine to be necessary to issue the report 
     card for the State.
       ``(e) Preparation and Issuance.--On October 1, 1998, and 
     annually thereafter, the Secretary shall prepare, submit to 
     Congress, and issue to the States the report card described 
     in subsection (a). Each report card shall rate the 
     performance of a State on each outcome measure developed 
     under subsection (b), include an explanation of the rating 
     system developed under subsection (c) and the way in which 
     scores are determined under the rating system, analyze high 
     and low performances for the State, and make recommendations 
     to the State for improvement.''.
       (b) Conforming Amendments.--Section 471(a) of the Social 
     Security Act (42 U.S.C. 671(a)) is amended--
       (1) by striking ``and'' at the end of paragraph (17);
       (2) by striking the period at the end of paragraph (18) (as 
     added by section 1808(a) of the Small Business Job Protection 
     Act of 1996 (Public Law 104-188; 110 Stat. 1903)) and 
     inserting ``; and'';
       (3) by redesignating paragraph (18) (as added by section 
     505(3) of the Personal Responsibility and Work Opportunity 
     Reconciliation Act of 1996 (Public Law 104-193; 110 Stat. 
     2278)) as paragraph (19); and
       (4) by adding at the end the following:
       ``(20) provides that the State shall annually provide to 
     the Secretary the information required under section 479A.''.
       By Mr. COVERDELL (for himself, Mr. Dodd and Mr. DeWine):
  S. 921. A bill to immunize donations made in the form of charitable 
gift annuities and charitable remainder trusts from the anti-trust laws 
and State laws similar to the antitrust laws; to the Committee on 
Banking, Housing, and Urban Affairs.

[[Page S5809]]

             the charitable donation antitrust immunity act

  Mr. COVERDELL. Mr. President, today I rise to introduce legislation 
that is critical to our Nation's charities, the Charitable Donation 
Antitrust Immunity Act of 1997. This legislation is designed to make 
minor modifications to a bill that was passed by Congress in 1995 with 
unprecedented bipartisan support. The House passed the bill on a 
rollcall vote of 427 to 0, and the Senate immediately passed the 
measure by unanimous consent. I am hopeful that we can move this bill 
as quickly.
  The Charitable Gift Annuity Antitrust Relief Act of 1995 was enacted 
in response to a lawsuit that threatened, and still threatens, the 
financial well being of thousands of charities. The 1995 act exempts 
charities from the antitrust laws which use the same annuity rate for 
the purpose of issuing charitable gift annuities. For more than 100 
years, the issuance of gift annuities by thousands of charities across 
the country has played a major role in raising billions of dollars for 
our nation's charities. The 1995 act ensures that the billions of 
dollars donated to charities is spent serving their constituencies, not 
on defending lawsuits.
  The legislation I am introducing today amends the Charitable Gift 
Annuity Antitrust Relief Act of 1995 to address technical issues raised 
by the Fifth Circuit Court of Appeals. The court recently ruled that 
charities are not protected by the act if lawyers or other for-profit 
entities administer or assist with the charities' gift annuities. This 
legislation clarifies the 1995 act by replacing the current antitrust 
exemption for charities issuing gift annuities with antitrust immunity 
for charitable gift annuities. Charities have spent more than $20 
million defending themselves from a single lawsuit. This clarification 
is critical in order to protect our Nation's charities from spending 
millions of dollars more on litigation instead of charitable purposes.
  Mr. President, the antitrust laws are intended to protect investors, 
not to frustrate gifts to charities. Faced with a continuing expensive 
lawsuit against Americans charities, and the threat of many more 
lawsuits to follow, Congress must make this technical change in the 
1995 law to fulfill its original intent. Without this legislation, 
charitable organizations will lose a much needed and useful tool for 
raising funds precisely at a time when we must encourage this type of 
gift giving.
  I urge my colleagues to support this legislation.
  Mr. DODD. Mr. President, I rise to join with Senator Coverdell in 
introducing the Charitable Donation Antitrust Immunity Act. The bill 
would strengthen the Charitable Gift Annuity Antitrust Relief Act, 
which enjoyed broad bipartisan support when it passed the Congress in 
1995.
  Every day across this country, charitable organizations help build 
better lives for millions of Americans. They are on the front lines in 
the effort to provide food, clothing, shelter, medicine, and 
educational support to less fortunate individuals. Their efforts help 
prevent our social fabric from fraying.
  Over the years, charities have used gift annuities as a means of 
making it easier for people to donate money. Generally, these 
transactions work as follows: a person donates money or some other 
asset to a charity and receives a tax deduction. The charity then 
invests the money and makes fixed, periodic payments to the donor. When 
the donor dies, the remainder of the gift goes to the charity. These 
arrangements help both donors and charities, and it was never the 
intent of Congress to unduly restrict their use.
  Regrettably, the benevolent endeavors of charities have been 
jeopardized by a lawsuit, Ozee and Richie versus The American Council 
on Gift Annuities. The lawsuit alleges that the use of annuity rates 
published by the Council constitutes price fixing, and thus a violation 
of the antitrust laws. The suit also alleges violations of securities 
and insurance laws. The plaintiffs ask that money donated to charities 
through charitable gift annuities be returned, along with additional 
damages. I have heard from a broad spectrum of charitable organizations 
in Connecticut and across the country who say that this lawsuit is 
undermining their ability to raise funds and continue their work.
  In order to save our Nation's charities millions of dollars in legal 
fees, and to preserve a critically important fundraising tool for 
charities, I joined with Senator Hutchison and introduced the 
Charitable Gift Annuity Antitrust Relief Act of 1995. With the help of 
many of my colleagues in both the House and Senate, we passed that 
measure quickly. The intent of the legislation was to exempt the use of 
charitable gift annuities from antitrust laws. Regrettably, the U.S. 
Court of Appeals for the Fifth Circuit did not interpret the 
legislation in this manner and the lawsuit continues.
  Consequently, we now need to make a few technical changes to clarify 
the intent of the law. Although these changes would put an end to the 
litigation and ensure that charities can continue to do their good 
work, they will not make it easier for charities to commit fraud. The 
legislation would not change the antifraud provisions in Federal 
securities law or affect Federal tax laws relating to fraud. People 
could still bring appropriate lawsuits against cheats or swindlers 
attempting to disguise themselves as charities, or charities acting 
fraudulently.
  Mr. President, charitable organizations work hard every day to help 
fill some of the gaps in the American safety net. We must support their 
efforts. The Charitable Donation Antitrust Immunity Act will help. I 
applaud Senator Coverdell's work on this legislation, and I urge all of 
my Senate colleagues to help move it forward expeditiously.
                                 ______
                                 
      By Mr. LAUTENBERG:
  S. 922. A bill to require the Secretary of the Treasury, acting 
through the Director of the Bureau of Alcohol, Tobacco and Firearms, to 
issue minimum safety and security standards for dealers of firearms; to 
the Committee on the Judiciary.


                      GUN SHOP SAFETY ACT OF 1997

  Mr. LAUTENBERG. Mr. President, today I am introducing legislation, 
the Gun Shop Safety Act of 1997, to require the Bureau of Alcohol, 
Tobacco and Firearms to issue minimum safety and security standards for 
federally licensed firearms dealers.
  Mr. President, incredible as it may seem, there are no Federal 
minimum standards for security of premises and merchandise at gun 
shops. In fact, a gun dealer must meet only minimal qualifications to 
obtain a gun dealers' license. An applicant need only be 21 years of 
age, not be prohibited by law from possessing or transporting firearms, 
and maintain a business premises in compliance with any State law. Once 
a dealer gets a license, the only Federal requirements are that dealers 
keep accurate records of purchases and sales, and have the books 
available for yearly inspection by the ATF. Basically, that is it. No 
safety or security requirements, no safety inspections.
  This is simply not good enough. Guns are being stolen from licensed 
gun dealers at an alarming rate. These guns pose an increasingly 
significant public safety problem. Clearly, by definition stolen guns 
are available to criminals. In fact, studies have found that between 10 
and 32 percent of guns used in the commission of a crime are obtained 
as a direct result of theft, while an approximately equal number of 
guns used during a criminal act were stolen before being used in a 
crime.
  Mr. President, stolen guns from gun shops are a significant source of 
guns used in violent street crimes. For example, everywhere we see the 
growing problem of the so-called ``smash and grab'' burglaries from 
retail gun outlets, where thieves either drive through or otherwise 
smash the windows of gun shops and steal large quantities of firearms 
in a matter of minutes.
  During the 1992 Los Angeles riots, 19 gun stores were looted and 
robbed of about 4,000 guns. One pawnshop lost 970 guns, while another 
outlet was robbed of 1,150 guns. An ATF report reveals that these guns 
continue to be recovered on the street.
  Mr. President, guns are not stolen from licensed gun dealers only 
during a riot. Recently, it has been reported that thieves stole 75 
firearms from a store in Washington State after killing the owner, and 
then sold about 40 of the stolen guns on the streets of Seattle that 
night.
  In my own State of New Jersey, we also recently witnessed a sickening

[[Page S5810]]

murder committed with a gun stolen from a gun shop. This past April, 
24-year-old Jeremy Giordano and 24-year-old Georgio Gallara of Sussex 
County, NJ were shot down in cold blood by two young thugs. No robbery 
was involved, no motive discovered, just murder for the sake of murder. 
And these killings were only possible because the murderers were able 
to steal two high-powered handguns from a local shop. They simply 
smashed the store's front window and smashed the locked glass display 
case where the guns were stored overnight. The theft was over in a few 
brief minutes, the criminals long gone by the time the police arrived 
at the gun shop.
  Mr. President, there must be a better way. It is time that our laws 
recognize that guns are not ordinary merchandise--they are deadly 
weapons. It is just common sense that criminals should be denied easy 
access to an arsenal of weapons.
  Mr. President, this country is already awash in a sea of gun 
violence. Every 2 minutes, someone in the United States is shot. Every 
14 minutes, someone dies from a gunshot wound. In 1994 alone, over 
15,000 people in our country were killed by handguns. Compare that to 
countries like Canada, where 90 people were killed by handguns that 
year, or Great Britain, which had 68 handgun fatalities.
  Mr. President, the Federal Centers for Disease Control and Prevention 
estimate that by the year 2003, gunfire will have surpassed auto 
accidents as the leading cause of injury-related deaths in the United 
States. In fact, this is already the case in seven States.
  Mr. President, given the severity of our Nation's gun violence 
problem, we need to find new ways to reduce the number of guns on our 
streets. Although we cannot totally end gun theft, there is much we can 
and should do. We can prevent predators from getting guns so freely and 
frequently through theft.
  So, Mr. President, this bill will require the ATF to use its 
expertise to craft reasonable and needed regulations to ensure that gun 
shops better secure the weapons and ammunition they sell from theft.
  I hope this proposal will receive strong, bipartisan support, even 
from those hostile to any gun-related legislation. This bill will help 
keep guns out of the hands of criminals. This is a goal I believe all 
of us share. And this legislation is the least we can do.
  I hope my colleagues will support the bill, and ask unanimous consent 
that a copy of the legislation be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 922

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Gun Shop Safety Act of 
     1997''.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) crimes committed with firearms threaten the peace and 
     domestic tranquility of the United States and reduce the 
     security and general welfare of the Nation and its people;
       (2) crimes committed with firearms impose a substantial 
     burden on interstate commerce and lead to a reduction in 
     productivity and profitability for business around the Nation 
     whose workers, suppliers, and customers are adversely 
     affected by gun violence;
       (3) all stolen firearms are available to criminals by 
     definition;
       (4) licensed gun dealers have reported nearly 30,000 
     firearms stolen from their shops since 1994, when a Federal 
     law was enacted requiring the reporting of such thefts;
       (5) between 10 and 32 percent of firearms used in the 
     commission of a crime are obtained directly through theft, 
     while an approximately equal number of firearms used in the 
     commission of a crime have been stolen at some point before 
     ultimately being used in the commission a crime; and
       (6) all Americans have a right to be protected from crime 
     and violence from stolen firearms, regardless of their State 
     of residence.

     SEC. 3. MINIMUM SAFETY AND SECURITY STANDARDS FOR GUN SHOPS.

       (a) In General.--Section 923 of title 18, United States 
     Code, is amended by adding at the end the following:
       ``(m) Safety and Security Standards for Gun Shops.--
       ``(1) In general.--Not later than 1 year after the date of 
     enactment of the Gun Shop Safety Act of 1997, the Secretary 
     of the Treasury, acting through the Director of the Bureau of 
     Alcohol, Tobacco, and Firearms, shall issue final regulations 
     that establish minimum firearm safety and security standards 
     that shall apply to dealers who are issued a license under 
     this section.
       ``(2) Minimum standards.--The regulations issued under this 
     subsection shall include minimum safety and security 
     standards for--
       ``(A) a place of business in which a dealer covered by the 
     regulations conducts business or stores firearms;
       ``(B) windows, the front door, storage rooms, containers, 
     alarms, and other items of a place of business referred to in 
     subparagraph (A) that the Secretary of the Treasury, acting 
     through the Director of the Bureau of Alcohol, Tobacco and 
     Firearms, determines to be appropriate; and
       ``(C) the storage and handling of the firearms contained in 
     a place of business referred to in subparagraph (A).''.
       (b) Inspections.--Section 923(g)(1) of title 18, United 
     States Code, is amended--
       (1) in subparagraph (A)--
       (A) in clause (i), by striking ``, and'' and inserting a 
     semicolon;
       (B) in clause (ii), by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(iii) with respect the place of business of a licensed 
     dealer, the safety and security measures taken by the dealer 
     to ensure compliance with the regulations issued under 
     subsection (m).''; and
       (2) in subparagraph (B)--
       (A) in the matter preceding clause (i), by inserting ``and 
     the place of business of a licensed dealer'' after ``licensed 
     dealer'';
       (B) in clause (ii), by striking ``or'' at the end;
       (C) in clause (iii), by striking the period at the end and 
     inserting ``; or''; and
       (D) by adding at the end the following:
       ``(iv) not more than once during any 12-month period, for 
     ensuring compliance by a licensed dealer with the regulations 
     issued under subsection (m).''.
       (c) Penalties.--Section 924(a)(1) of title 18, United 
     States Code, is amended--
       (1) in subparagraph (C), by striking ``or'' at the end;
       (2) by redesignating subparagraph (D) as subparagraph (E); 
     and
       (3) by inserting after subparagraph (C) the following:
       ``(D) being a licensed dealer, knowingly fails to comply 
     with any applicable regulation issued under section 923(m); 
     and''.
                                 ______
                                 
      By Mr. SPECTER:
  S. 923. A bill to deny veterans benefits to persons convicted of 
Federal capital offenses; to the Committee on Veterans' Affairs.


                 veterans' benefits denial legislation

  Mr. SPECTER. Mr. President, in the Veterans' Affairs Committee, which 
I chair, we have been considering the situation of Mr. Timothy McVeigh, 
who has certain entitlements as a veteran. Curiously, the committee has 
concluded that a conviction for murder in the first degree does not 
significantly affect Mr. McVeigh's entitlements or benefits as a 
veteran.
  Veterans who are convicted of certain criminal offenses forfeit their 
benefits. Those offenses, however, are limited to convictions for 
mutiny and aiding the enemy; spying; certain national security crimes, 
such as treason, sabotage, disclosing classified or defense 
information, interfering with the Armed Forces during a time of war, 
communications of classified information by a Government employee to an 
agent of a foreign government; and certain nuclear material crimes, 
such as the unauthorized possession or transfer of nuclear material or 
receipt and communication of restricted data.
  Surprisingly, my staff on the Veterans' Affairs Committee has 
concluded that Mr. Timothy McVeigh would be entitled to veterans 
benefits, notwithstanding his conviction on 11 counts including the 
murder of some 168 people in the Oklahoma City bombing of the Federal 
building. He remains eligible for such benefits, including burial 
benefits, since he was not convicted of any of the crimes I just 
listed.
  Because of that, I now introduce legislation which would deny veteran 
benefits to any person who is convicted of a State or Federal capital 
offense. The specific provision would be:

       Notwithstanding any other provision of law, a person who is 
     convicted of a Federal or State capital offense is ineligible 
     for benefits provided to veterans of the Armed Forces of the 
     United States pursuant to title 38, United States Code.

  This bill would prevent Mr. McVeigh from having any veterans benefits 
in light of his conviction on 11 counts, including murder in the first 
degree. I send this bill to the desk and ask that it be filed with the 
appropriate authority.
                                 ______
                                 
      By Mr. THURMOND:
  S. 924. An original bill to authorize appropriations for fiscal year 
1998 for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe personnel strengths for such fiscal year

[[Page S5811]]

for the Armed Forces, and for other purposes; from the Committee on 
Armed Services; placed on the calendar.


      the national defense authorization act for fiscal year 1998

  Mr. THURMOND. Mr. President, I am pleased to report out from the 
Committee on Armed Services an original bill, the national defense 
authorization bill for fiscal year 1998.
  The members of the Committee on Armed Services have put a great deal 
of work into this bill, which continues the long bipartisan tradition 
of the Senate in dealing with the vital issues of the Nation's 
security.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 924

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

     SECTION 1. SHORT TITLE.

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

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

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

Sec. 1. Short title.
Sec. 2. Organization of Act into divisions; table of contents.
Sec. 3. Congressional defense committees defined.

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

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

                       Subtitle B--Army Programs

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

                       Subtitle C--Navy Programs

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

                     Subtitle D--Air Force Programs

Sec. 131. B-2 bomber aircraft program.

                       Subtitle E--Other Matters

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

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

              Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.

    Subtitle B--Program Requirements, Restrictions, and Limitations

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

             Subtitle C--Ballistic Missile Defense Programs

Sec. 221. National Missile Defense program.
Sec. 222. Reversal of decision to transfer procurement funds from the 
              Ballistic Missile Defense Organization.

                       Subtitle D--Other Matters

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

                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

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

                   Subtitle B--Depot-Level Activities

Sec. 311. Definition of depot-level maintenance and repair.
Sec. 312. Restrictions on contracts for performance of depot-level 
              maintenance and repair at certain facilities.
Sec. 313. Core logistics functions of Department of Defense.
Sec. 314. Percentage limitation on performance of depot-level 
              maintenance of materiel.
Sec. 315. Centers of Industrial and Technical Excellence.
Sec. 316. Clarification of prohibition on management of depot employees 
              by constraints on personnel levels.
Sec. 317. Annual report on depot-level maintenance and repair.
Sec. 318. Report on allocation of core logistics activities among 
              Department of Defense facilities and private sector 
              facilities.
Sec. 319. Review of use of temporary duty assignments for ship repair 
              and maintenance.
Sec. 320. Repeal of a conditional repeal of certain depot-level 
              maintenance and repair laws and a related reporting 
              requirement.
Sec. 321. Extension of authority for naval shipyards and aviation 
              depots to engage in defense-related production and 
              services.

                  Subtitle C--Environmental Provisions

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

  Subtitle D--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 351. Funding sources for construction and improvement of 
              commissary store facilities.
Sec. 352. Integration of military exchange services.

                       Subtitle E--Other Matters

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

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Permanent end strength levels to support two major regional 
              contingencies.

                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the 
              reserves.

[[Page S5812]]

              Subtitle C--Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.

                   TITLE V--MILITARY PERSONNEL POLICY

                    Subtitle A--Personnel Management

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

           Subtitle B--Matters Relating to Reserve Components

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

              Subtitle C--Education and Training Programs

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

                   Subtitle D--Decorations and Awards

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

              Subtitle E--Military Personnel Voting Rights

Sec. 541. Short title.
Sec. 542. Guarantee of residency.
Sec. 543. State responsibility to guarantee military voting rights.

                       Subtitle F--Other Matters

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

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                            Subtitle A--Pay

Sec. 601. Military pay raise for fiscal year 1998.

         Subtitle B--Subsistence, Housing, and Other Allowances

           Part I--Reform of Basic Allowance for Subsistence

Sec. 611. Revised entitlement and rates.
Sec. 612. Transitional basic allowance for subsistence.
Sec. 613. Effective date and termination of transitional authority.

           Part II--Reform of Housing and Related Allowances

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

           Part III--Other Amendments Relating to Allowances

Sec. 626. Revision of authority to adjust compensation necessitated by 
              reform of subsistence and housing allowances.
Sec. 627. Deadline for payment of Ready Reserve muster duty allowance.

           Subtitle C--Bonuses and Special and Incentive Pays

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

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

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

                       Subtitle E--Other Matters

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

                   TITLE VII--HEALTH CARE PROVISIONS

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

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

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

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

                    Subtitle B--Contract Provisions

Sec. 811. Contractor guarantees of major systems.
Sec. 812. Vesting of title in the United States under contracts paid 
              under progress payment arrangements or similar 
              arrangements.

              Subtitle C--Acquisition Assistance Programs

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

                 Subtitle D--Administrative Provisions

Sec. 831. Retention of expired funds during the pendency of contract 
              litigation.
Sec. 832. Protection of certain information from disclosure.
Sec. 833. Content of limited selected acquisition reports.

[[Page S5813]]

Sec. 834. Unit cost reports.
Sec. 835. Central Department of Defense point of contact for 
              contracting information.

                       Subtitle E--Other Matters

Sec. 841. Defense business combinations.
Sec. 842. Lease of nonexcess property of Defense Agencies.
Sec. 843. Promotion rate for officers in an Acquisition Corps.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

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

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

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

                Subtitle B--Naval Vessels and Shipyards

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

                  Subtitle C--Counter-Drug Activities

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

                    Subtitle D--Reports and Studies

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

                       Subtitle E--Other Matters

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

           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

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

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.

                            TITLE XXI--ARMY

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

                            TITLE XXII--NAVY

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

                         TITLE XXIII--AIR FORCE

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

                      TITLE XXIV--DEFENSE AGENCIES

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

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                PROGRAM

Sec. 2501. Authorized NATO construction and land acquisition projects.
Sec. 2502. Authorization of appropriations, NATO.

            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

Sec. 2601. Authorized Guard and Reserve construction and land 
              acquisition projects.
Sec. 2602. Authorization of Army National Guard construction project, 
              aviation support facility, Hilo, Hawaii, for which funds 
              have been appropriated.

[[Page S5814]]

        TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

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

                    TITLE XXVIII--GENERAL PROVISIONS

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

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

                      Subtitle B--Land Conveyances

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

                       Subtitle C--Other Matters

Sec. 2831. Disposition of proceeds of sale of Air Force Plant No. 78, 
              Brigham City, Utah.

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

      TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

         Subtitle A--National Security Programs Authorizations

Sec. 3101. Weapons activities.
Sec. 3102. Environmental restoration and waste management.
Sec. 3103. Other defense activities.
Sec. 3104. Defense environmental management privatization.
Sec. 3105. Defense nuclear waste disposal.

                Subtitle B--Recurring General Provisions

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

   Subtitle C--Program Authorizations, Restrictions, and Limitations

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

                       Subtitle D--Other Matters

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

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

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

                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

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

                  TITLE XXXV--PANAMA CANAL COMMISSION

     Subtitle A--Authorization of Expenditures From Revolving Fund

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

          Subtitle B--Facilitation of Panama Canal Transition

Sec. 3511. Short title; references.
Sec. 3512. Definitions relating to Canal transition.

    Part I--Transition Matters Relating to Commission Officers and 
                               Employees

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

Part II--Transition Matters Relating to Operation and Administration of 
                                 Canal

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

     SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

       For purposes of this Act, the term ``congressional defense 
     committees'' means--
       (1) the Committee on Armed Services and the Committee on 
     Appropriations of the Senate; and
       (2) the Committee on National Security and the Committee on 
     Appropriations of the House of Representatives.
            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS
                          TITLE I--PROCUREMENT
              Subtitle A--Authorization of Appropriations

     SEC. 101. ARMY.

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

     SEC. 102. NAVY AND MARINE CORPS.

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

[[Page S5815]]

       (b) Marine Corps.--Funds are hereby authorized to be 
     appropriated for fiscal year 1998 for procurement for the 
     Marine Corps in the amount of $554,806,000.

     SEC. 103. AIR FORCE.

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

     SEC. 104. DEFENSE-WIDE ACTIVITIES.

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

     SEC. 105. RESERVE COMPONENTS.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1998 for procurement of aircraft, vehicles, 
     communications equipment, and other equipment for the reserve 
     components of the Armed Forces as follows:
       (1) For the Army National Guard, $100,000,000.
       (2) For the Air National Guard, $186,300,000.
       (3) For the Army Reserve, $40,000,000.
       (4) For the Naval Reserve, $40,000,000.
       (5) For the Air Force Reserve, $246,700,000.
       (6) For the Marine Corps Reserve, $40,000,000.

     SEC. 106. DEFENSE INSPECTOR GENERAL.

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

     SEC. 107. CHEMICAL DEMILITARIZATION PROGRAM.

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

     SEC. 108. DEFENSE HEALTH PROGRAMS.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1998 for the Department of Defense for procurement for 
     carrying out health care programs, projects, and activities 
     of the Department of Defense in the total amount of 
     $274,068,000.

     SEC. 109. DEFENSE EXPORT LOAN GUARANTEE PROGRAM.

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

     SEC. 111. ARMY HELICOPTER MODERNIZATION PLAN.

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

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

       Beginning with the fiscal year 1998 program year, the 
     Secretary of the Army may, in accordance with section 2306b 
     of title 10, United States Code, enter into a multiyear 
     procurement contract for the procurement of the AH-64D 
     Longbow Apache fire control radar.
                       Subtitle C--Navy Programs

     SEC. 121. NEW ATTACK SUBMARINE PROGRAM.

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

     SEC. 122. NUCLEAR AIRCRAFT CARRIER PROGRAM.

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

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

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

     SEC. 124. AIRBORNE SELF-PROTECTION JAMMER PROGRAM.

       (a) Limitation on Resumption of Serial Production.--Serial 
     production of the airborne self-protection jammer may not be 
     resumed until the Director of Operational Test and Evaluation 
     of the Department of Defense has certified in writing to 
     Congress that--
       (1) the capabilities of the airborne self-protection jammer 
     exceed the capabilities of the integrated defensive 
     electronics countermeasure system that is under development 
     for use in F/A-18E/F aircraft;
       (2) the units of the airborne self-protection jammer to be 
     produced are to be used in F/A-18E/F aircraft; and

[[Page S5816]]

       (3) the deficiencies in the airborne self-protection jammer 
     noted by the Director before the date of the enactment of 
     this Act have been eliminated.
       (b) Limitation on Obligation of Funds.--No funds authorized 
     to be appropriated by this or any other Act may be obligated 
     for serial production of the airborne self-protection jammer 
     until the Secretary of Defense has certified in writing to 
     Congress that funding is programmed for serial production of 
     the airborne self-protection jammer in the future-years 
     defense program.
                     Subtitle D--Air Force Programs

     SEC. 131. B-2 BOMBER AIRCRAFT PROGRAM.

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

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

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

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

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

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

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

     SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

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

     SEC. 211. JOINT STRIKE FIGHTER PROGRAM.

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

     SEC. 212. F-22 AIRCRAFT PROGRAM.

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

[[Page S5817]]

     SEC. 213. HIGH ALTITUDE ENDURANCE UNMANNED VEHICLE PROGRAM.

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

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

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

     SEC. 215. FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTERS.

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

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

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

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

       (a) In General.--In addition to the transfer authority 
     provided in section 1001, upon determination by the Secretary 
     of Defense that such action is necessary in the national 
     interest, the Secretary may transfer amounts of 
     authorizations made available to

[[Page S5818]]

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

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

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

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

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

     SEC. 221. NATIONAL MISSILE DEFENSE PROGRAM.

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

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

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

     SEC. 231. MANUFACTURING TECHNOLOGY PROGRAM.

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

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

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

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

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

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

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

[[Page S5819]]

                  TITLE III--OPERATION AND MAINTENANCE
              Subtitle A--Authorization of Appropriations

     SEC. 301. OPERATION AND MAINTENANCE FUNDING.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1998 for the use of the Armed Forces and other 
     activities and agencies of the Department of Defense for 
     expenses, not otherwise provided for, for operation and 
     maintenance, in amounts as follows:
       (1) For the Army, $17,194,284,000.
       (2) For the Navy, $21,681,330,000.
       (3) For the Marine Corps, $2,379,445,000.
       (4) For the Air Force, $18,861,685,000.
       (5) For Defense-wide activities, $10,280,838,0000.
       (6) For the Army Reserve, $1,212,891,000.
       (7) For the Naval Reserve, $834,711,000.
       (8) For the Marine Corps Reserve, $110,366,000.
       (9) For the Air Force Reserve, $1,624,420,000.
       (10) For the Army National Guard, $2,288,932,000.
       (11) For the Air National Guard, $2,991,219,000.
       (12) For the Defense Inspector General, $136,580,000.
       (13) For the United States Court of Appeals for the Armed 
     Forces, $6,952,000.
       (14) For Environmental Restoration, Army, $350,337,000.
       (15) For Environmental Restoration, Navy, $257,500,000.
       (16) For Environmental Restoration, Air Force, 
     $351,900,000.
       (17) For Environmental Restoration, Defense-Wide, 
     $25,900,000.
       (18) For Environmental Restoration, Formerly Used Defense 
     Sites, $188,300,000.
       (19) For Overseas Contingency Operations, $1,467,500,000.
       (20) For Drug Interdiction and Counter-drug Activities, 
     Defense-wide, $660,882,000.
       (21) For Medical Programs, Defense, $9,954,782,000.
       (22) For Former Soviet Union Threat Reduction programs, 
     $322,000,000.
       (23) For Overseas Humanitarian Demining and CINC Initiative 
     activities, $40,130,000.
       (24) For the Kaho'olawe Island Conveyance, Remediation, and 
     Environmental Restoration Trust Fund, $10,000,000.

     SEC. 302. WORKING-CAPITAL FUNDS.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1998 for the use of the Armed Forces and other 
     activities and agencies of the Department of Defense for 
     providing capital for working-capital and revolving funds in 
     amounts as follows:
       (1) For the Defense Working-Capital Fund, $33,400,000.
       (2) For the National Defense Sealift Fund, $516,126,000.
       (3) For the Military Commissary Fund, $938,552,000.

     SEC. 303. ARMED FORCES RETIREMENT HOME.

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

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

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

     SEC. 305. FISHER HOUSE TRUST FUNDS.

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

     SEC. 311. DEFINITION OF DEPOT-LEVEL MAINTENANCE AND REPAIR.

       (a) Depot-Level Maintenance and Repair Defined.--Chapter 
     146 of title 10, United States Code, is amended by inserting 
     before section 2461 the following new section:

     ``Sec. 2460. Definition of depot-level maintenance and repair

       ``(a) In General.--In this chapter, the term `depot-level 
     maintenance and repair' means materiel maintenance or repair 
     requiring the overhaul or rebuilding of parts, assemblies, or 
     subassemblies, and the testing and reclamation of equipment 
     as necessary, regardless of the source of funds for the 
     maintenance or repair. The term includes all aspects of 
     software maintenance and such portions of interim contractor 
     support, contractor logistics support, or any similar 
     contractor support for the performance of services that are 
     described in the preceding sentence.
       ``(b) Exception.--The term does not include the following:
       ``(1) Ship modernization activities that were not 
     considered to be depot-level maintenance and repair 
     activities under regulations of the Department of Defense in 
     effect on March 30, 1997.
       ``(2) A procurement of a modification or upgrade of a major 
     weapon system.''
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting before the 
     item relating to section 2461 the following new item:

``2460. Definition of depot-level maintenance and repair.''.

     SEC. 312. RESTRICTIONS ON CONTRACTS FOR PERFORMANCE OF DEPOT-
                   LEVEL MAINTENANCE AND REPAIR AT CERTAIN 
                   FACILITIES.

       Section 2469 of title 10, United States Code, is amended--
       (1) in subsections (a) and (b), by striking out ``or 
     repair'' and inserting in lieu thereof ``and repair''; and
       (2) by adding at the end the following new subsection:
       ``(d) Restriction on Contracts at Certain Facilities.--
       ``(1) Restriction.--The Secretary of Defense may not enter 
     into any contract for the performance of depot-level 
     maintenance and repair of weapon systems or other military 
     equipment of the Department of Defense, or for the 
     performance of management functions related to depot-level 
     maintenance and repair of such systems or equipment, at any 
     military installation of the Air Force where a depot-level 
     maintenance and repair facility was approved in 1995 for 
     closure or realignment under the Defense Base Closure and 
     Realignment Act of 1990 (part A of title XXIX of Public Law 
     101-510; 10 U.S.C. 2687 note). In the preceding sentence, the 
     term `military installation of the Air Force' includes a 
     former military installation closed or realigned under the 
     Act that was a military installation of the Air Force when it 
     was approved for closure or realignment under the Act.
       ``(2) Exception.--Paragraph (1) shall not apply with 
     respect to an installation or former installation described 
     in such paragraph if the Secretary of Defense certifies to 
     Congress, not later than 45 days before entering into a 
     contract for performance of depot-level maintenance and 
     repair at the installation or former installation, that--
       ``(A) not less than 75 percent of the capacity at each of 
     the depot-level maintenance and repair activities of the Air 
     Force is being utilized on an ongoing basis to perform 
     industrial operations in support of the depot-level 
     maintenance and repair of weapon systems and other military 
     equipment of the Department of Defense;
       ``(B) the Secretary has determined, on the basis of a 
     detailed analysis (which the Secretary shall submit to 
     Congress with the certification), that the total amount of 
     the costs of the proposed contract to the Government, both 
     recurring and nonrecurring and including any costs associated 
     with planning for and executing the proposed contract, would 
     be less than the costs that would otherwise be incurred if 
     the depot-level maintenance and repair to be performed under 
     the contract were performed using equipment and facilities of 
     the Department of Defense;
       ``(C) all of the information upon which the Secretary 
     determined that the total costs to the Government would be 
     less under the contract is available for examination; and
       ``(D) none of the depot-level maintenance and repair to be 
     performed under the contract was considered, before July 1, 
     1995, to be a core logistics capability of the Air Force 
     pursuant to section 2464 of this title.
       ``(3) Capacity of depot-level activities.--For purposes of 
     paragraph (2)(A), the capacity of depot-level maintenance and 
     repair activities shall be considered to be the same as the 
     maximum potential capacity identified by the Defense Base 
     Closure and Realignment Commission for purposes of the 
     selection in 1995 of military installations for closure or 
     realignment under the Defense Base Closure and Realignment 
     Act of 1990, without regard to any limitation on the maximum 
     number of Federal employees (expressed as full time 
     equivalent employees or otherwise) in effect after 1995, 
     Federal employment levels after 1995, or the actual 
     availability of equipment to support depot-level maintenance 
     and repair after 1995.
       ``(4) GAO review.--At the same time that the Secretary 
     submits the certification and analysis to Congress under 
     paragraph (2), the Secretary shall submit a copy of the 
     certification and analysis to the Comptroller General. The 
     Comptroller General shall review the analysis and the 
     information referred to in subparagraph (C) of paragraph (2) 
     and, not later than 30 days after Congress receives the 
     certification, submit to Congress a report containing a 
     statement regarding whether the Comptroller General concurs 
     with the determination of the Secretary included in the 
     certification pursuant to subparagraph (B) of that paragraph.
       ``(5) Application.--This subsection shall apply with 
     respect to any contract described

[[Page S5820]]

     in paragraph (1) that is entered into, or proposed to be 
     entered into, after January 1, 1997.''.

     SEC. 313. CORE LOGISTICS FUNCTIONS OF DEPARTMENT OF DEFENSE.

       Section 2464(a) of title 10, United States Code, is 
     amended--
       (1) in paragraph (1), by striking out ``a logistics 
     capability (including personnel, equipment, and facilities)'' 
     and inserting in lieu thereof ``a core logistics capability 
     that is Government-owned and Government-operated (including 
     Federal Government personnel and Government-owned and 
     Government-operated equipment and facilities)'';
       (2) in paragraph (2)--
       (A) by inserting ``core'' before ``logistics''; and
       (B) by adding at the end the following: ``Each year, the 
     Secretary of Defense shall submit to Congress a report 
     describing each logistics capability that the Secretary 
     identifies as a core logistics capability.''; and
       (3) by adding at the end the following new paragraphs:
       ``(3) Those core logistics activities identified under 
     paragraphs (1) and (2) shall include the capability, 
     facilities, and equipment to maintain and repair the types of 
     weapon systems and other military equipment (except systems 
     and equipment under special access programs and aircraft 
     carriers) that are identified by the Secretary, in 
     consultation with the Joint Chiefs of Staff, as necessary to 
     enable the armed forces to fulfill the contingency plans 
     prepared under the responsibility of the Chairman of the 
     Joint Chiefs of Staff set forth in section 153(a)(3) of this 
     title.
       ``(4) The Secretary of Defense shall require the 
     performance of core logistics functions identified under 
     paragraphs (1), (2), and (3) at Government-owned, Government-
     operated facilities of the Department of Defense (including 
     Government-owned, Government-operated facilities of a 
     military department) and shall assign such facilities the 
     minimum workloads necessary to ensure cost efficiency and 
     technical proficiency in peacetime while preserving the surge 
     capacity and reconstitution capabilities necessary to support 
     fully the contingency plans referred to in paragraph (3).''.

     SEC. 314. PERCENTAGE LIMITATION ON PERFORMANCE OF DEPOT-LEVEL 
                   MAINTENANCE OF MATERIEL.

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

     SEC. 315. CENTERS OF INDUSTRIAL AND TECHNICAL EXCELLENCE.

       (a) Designation and Purpose.--(1) Chapter 146 of title 10, 
     United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 2474. Centers of Industrial and Technical Excellence: 
       designation; public-private partnerships

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

``2474. Centers of Industrial and Technical Excellence: designation; 
              public-private partnerships.''.

       (b) Reporting Requirement.--Not later than March 1, 1998, 
     the Secretary of Defense shall submit to Congress a report 
     describing the policies established by the Secretary pursuant 
     to section 2474 of title 10, United States Code (as added by 
     subsection (a)), to carry out that section.

     SEC. 316. CLARIFICATION OF PROHIBITION ON MANAGEMENT OF DEPOT 
                   EMPLOYEES BY CONSTRAINTS ON PERSONNEL LEVELS.

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

     SEC. 317. ANNUAL REPORT ON DEPOT-LEVEL MAINTENANCE AND 
                   REPAIR.

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

     SEC. 318. REPORT ON ALLOCATION OF CORE LOGISTICS ACTIVITIES 
                   AMONG DEPARTMENT OF DEFENSE FACILITIES AND 
                   PRIVATE SECTOR FACILITIES.

       (a) Report.--Not later than May 31, 1998, the Secretary of 
     Defense shall submit to Congress a report on the allocation 
     among facilities of the Department of Defense and facilities 
     in the private sector of the logistics activities that are 
     necessary to maintain and repair the weapon systems and other 
     military equipment identified by the Secretary, in 
     consultation with the Joint Chiefs of Staff, as being 
     necessary to enable the Armed Forces to conduct a strategic 
     or major theater war.
       (b) Elements.--The report under subsection (a) shall set 
     forth the following:
       (1) The systems or equipment identified under subsection 
     (a) that must be maintained and repaired in Government-owned, 
     Government-operated facilities, using personnel and equipment 
     of the Department, as a result of the Secretary's 
     determination that--
       (A) the work involves unique or valuable workforce skills 
     that should be maintained in the public sector in the 
     national interest;
       (B) the base of private sector sources having the 
     capability to perform the workloads includes industry sectors 
     that are vulnerable to work stoppages;
       (C) the private sector sources having the capability to 
     perform the workloads have insufficient workforce levels or 
     skills to perform the depot-level maintenance and repair 
     workloads--
       (i) in the quantity necessary, or as rapidly as the 
     Secretary considers necessary, to enable the armed forces to 
     fulfill the national military strategy; or
       (ii) without a significant disruption or delay in the 
     maintenance and repair of equipment;
       (D) the need for performance of workloads is too 
     infrequent, cyclical, or variable to sustain a reliable base 
     of private sector sources having the workforce levels or 
     skills to perform the workloads;
       (E) the market conditions or workloads are insufficient to 
     ensure that the price of private sector performance of the 
     workloads can be controlled through competition or other 
     means;
       (F) private sector sources are not adequately responsive to 
     the requirements of the Department for rapid, cost-effective, 
     and flexible response to surge requirements or other 
     contingency situations, including

[[Page S5821]]

     changes in the mix or priority of previously scheduled 
     workloads and reassignment of employees to different 
     workloads without the requirement for additional contractual 
     negotiations;
       (G) private sector sources are less willing to assume 
     responsibility for performing the workload as a result of the 
     possibility of direct military or terrorist attack; or
       (H) private sector sources cannot maintain continuity of 
     workforce expertise as a result of high rates of employee 
     turnover.
       (2) The systems or equipment identified under subsection 
     (a) that must be maintained and repaired in Government-owned 
     facilities, whether Government operated or contractor-
     operated, as a result of the Secretary's determination that--
       (A) the work involves facilities, technologies, or 
     equipment that are unique and sufficiently valuable that the 
     facilities, technologies, or equipment must be maintained in 
     the public sector in the national interest;
       (B) the private sector sources having the capability to 
     perform the workloads have insufficient facilities, 
     technology, or equipment to perform the depot-level 
     maintenance and repair workloads--
       (i) in the quantity necessary, or as rapidly as the 
     Secretary considers necessary, to enable the armed forces to 
     fulfill the national military strategy; or
       (ii) without a significant disruption or delay in the 
     maintenance and repair of equipment; or
       (C) the need for performance of workloads is too 
     infrequent, cyclical, or variable to sustain a reliable base 
     of private sector sources having the facilities, technology, 
     or equipment to perform the workloads.
       (3) The systems or equipment identified under subsection 
     (a) that may be maintained and repaired in private sector 
     facilities.
       (4) The approximate percentage of the total maintenance and 
     repair workload of the Department of Defense necessary for 
     the systems and equipment identified under subsection (a) 
     that would be performed at Department of Defense facilities, 
     and at private sector facilities, as a result of the 
     determinations made for purposes of paragraphs (1), (2), and 
     (3).

     SEC. 319. REVIEW OF USE OF TEMPORARY DUTY ASSIGNMENTS FOR 
                   SHIP REPAIR AND MAINTENANCE.

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

     SEC. 320. REPEAL OF A CONDITIONAL REPEAL OF CERTAIN DEPOT-
                   LEVEL MAINTENANCE AND REPAIR LAWS AND A RELATED 
                   REPORTING REQUIREMENT.

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

     SEC. 321. EXTENSION OF AUTHORITY FOR NAVAL SHIPYARDS AND 
                   AVIATION DEPOTS TO ENGAGE IN DEFENSE-RELATED 
                   PRODUCTION AND SERVICES.

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

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

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

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

       (a) Annual Reports.--Section 2706(b)(2) of title 10, United 
     States Code, is amended by adding at the end the following:
       ``(H) A statement of the fines and penalties imposed or 
     assessed against the Department of Defense under Federal, 
     State, or local environmental law during the fiscal year 
     preceding the fiscal year in which the report is submitted, 
     which statement sets forth--
       ``(i) each Federal environmental statute under which a fine 
     or penalty was imposed or assessed during the fiscal year;
       ``(ii) with respect to each such statute--

       ``(I) the aggregate amount of fines and penalties imposed 
     or assessed during the fiscal year;
       ``(II) the aggregate amount of fines and penalties paid 
     during the fiscal year;
       ``(III) the total amount required to meet commitments to 
     environmental enforcement authorities under agreements 
     entered into by the Department of Defense during the fiscal 
     year for supplemental environmental projects agreed to in 
     lieu of the payment of fines or penalties; and
       ``(IV) the number of fines and penalties imposed or 
     assessed during the fiscal year that were--

       ``(aa) $10,000 or less;
       ``(bb) more than $10,000, but not more than $50,000;
       ``(cc) more than $50,000, but not more than $100,000; and
       ``(dd) more than $100,000; and
       ``(iii) with respect to each fine or penalty set forth 
     under clause (ii)(IV)(dd)--

       ``(I) the installation or facility to which the fine or 
     penalty applies; and
       ``(II) the agency that imposed or assessed the fine or 
     penalty.''.

       (b) Report in Fiscal Year 1998.--The statement submitted by 
     the Secretary of Defense under subparagraph (H) of section 
     2706(b)(2) of title 10, United States Code, as added by 
     subsection (a), in 1998 shall, to the maximum extent 
     practicable, include the information required by that 
     subparagraph for each of fiscal years 1994 through 1997.

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

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

[[Page S5822]]

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

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

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

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

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

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

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

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

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

       (a) Authority.--(1) The Secretary of Defense may, in 
     consultation with the Administrator of General Services, 
     carry out a pilot program to assess the feasibility and 
     advisability of the sale of economic incentives for the 
     reduction of emission of air pollutants attributable to a 
     facility of a military department.
       (2) The Secretary may carry out the pilot program during 
     the period beginning on October 1, 1997, and ending on 
     September 30, 1999.
       (b) Incentives Available for Sale.--(1) Under the pilot 
     program, the Secretary may sell economic incentives for the 
     reduction of emission of air pollutants attributable to a 
     facility of a military department only if such incentives are 
     not otherwise required for the activities or operations of 
     the military department.
       (2) The Secretary may not, under the pilot program, sell 
     economic incentives attributable to the closure or 
     realignment of a military installation under a base closure 
     law.
       (3) If the Secretary determines that additional sales of 
     economic incentives are likely to result in amounts available 
     for allocation under subsection (c)(2) in a fiscal year in 
     excess of the limitation set forth in subparagraph (B) of 
     that subsection, the Secretary shall not carry out such 
     additional sales in that fiscal year.
       (c) Use of Proceeds.--(1) The proceeds of sale of economic 
     incentives attributable to a facility of a military 
     department shall be credited to the funds available to the 
     facility for the costs of identifying, quantifying, or 
     valuing economic incentives for the reduction of emission of 
     air pollutants. The amount credited shall be equal to the 
     cost incurred in identifying, quantifying, or valuing the 
     economic incentives sold.
       (2)(A)(i) If after crediting under paragraph (1) a balance 
     remains, the amount of such balance shall be available to the 
     Department of Defense for allocation by the Secretary to the 
     military departments for programs, projects, and activities 
     necessary for compliance with Federal environmental laws, 
     including the purchase of economic incentives for the 
     reduction of emission of air pollutants.
       (ii) To the extent practicable, amounts allocated to the 
     military departments under this subparagraph shall be made 
     available to the facilities that generated the economic 
     incentives providing the basis for the amounts.
       (B) The total amount allocated under this paragraph in a 
     fiscal year from sales of economic incentives may not equal 
     or exceed $500,000.
       (3) If after crediting under paragraph (1) a balance 
     remains in excess of an amount equal to the limitation set 
     forth in paragraph (2)(B), the amount of the excess shall be 
     covered over into the Treasury as miscellaneous receipts.
       (4) Funds credited under paragraph (1) or allocated under 
     paragraph (2) shall be merged with the funds to which 
     credited or allocated, as the case may be, and shall be 
     available for the same purposes and for the same period as 
     the funds with which merged.
       (d) Definitions.--In this section:
       (1) The term ``base closure law'' means the following:
       (A) Section 2687 of title 10, United States Code.
       (B) Title II of the Defense Authorization Amendments and 
     Base Closure and Realignment Act (Public Law 100-526; 10 
     U.S.C. 2687 note).
       (C) The Defense Base Closure and Realignment Act of 1990 
     (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 
     note).
       (2) The term ``economic incentives for the reduction of 
     emission of air pollutants'' means any transferable economic 
     incentives (including marketable permits and emission rights) 
     necessary or appropriate to meet air quality requirements 
     under the Clean Air Act (42 U.S.C. 7401 et seq.).

     SEC. 339. TAGGING SYSTEM FOR IDENTIFICATION OF HYDROCARBON 
                   FUELS USED BY THE DEPARTMENT OF DEFENSE.

       (a) Authority To Conduct Pilot Program.--The Secretary of 
     Defense may conduct a pilot program using existing technology 
     to determine--
       (1) the feasibility of tagging hydrocarbon fuels used by 
     the Department of Defense for

[[Page S5823]]

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

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

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

     SEC. 352. INTEGRATION OF MILITARY EXCHANGE SERVICES.

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

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

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

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

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

[[Page S5824]]

       (ii) the integrity of any program of the Department of 
     Defense or of any official involved in such a program.
       (B) The Secretary shall prescribe written guidance setting 
     forth the criteria to be used in determining whether or not 
     the acceptance of a foreign gift or donation would have a 
     result described in subparagraph (A).
       (3) Funds accepted by the Secretary under paragraph (1) 
     shall be credited to appropriations available to the 
     Department of Defense for the Center. Funds so credited shall 
     be merged with the appropriations to which credited and shall 
     be available for the Center for the same purposes and the 
     same period as the appropriations with which merged.
       (e) Funding for Fiscal Year 1998.--Of the funds authorized 
     to be appropriated under section 301, $5,000,000 shall be 
     available for the Center for Excellence in Disaster 
     Management and Humanitarian Assistance.

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

       (a) Congressional Notification.--Chapter 101 of title 10, 
     United States Code, is amended by adding at the end the 
     following:

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

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

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

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

       (a) Authority.--Chapter 1 of title 32, United States Code, 
     is amended by adding at the end the following:

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

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

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

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

       (a) Authority.--Chapter 443 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

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

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

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

     SEC. 366. INVENTORY MANAGEMENT.

       (a) Schedule for Implementation of Best Inventory Practices 
     at Defense Logistics Agency.--(1) The Director of the Defense 
     Logistics Agency shall develop and submit to Congress a 
     schedule for implementing within

[[Page S5825]]

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

     SEC. 367. WARRANTY CLAIMS RECOVERY PILOT PROGRAM.

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

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

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

     SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

       The Armed Forces are authorized strengths for active duty 
     personnel as of September 30, 1998, as follows:
       (1) The Army, 485,000, of whom not more than 80,300 shall 
     be officers.
       (2) The Navy, 390,802, of whom not more than 55,695 shall 
     be officers.
       (3) The Marine Corps, 174,000, of whom not more than 17,978 
     shall be officers.
       (4) The Air Force, 371,577, of whom not more than 72,732 
     shall be officers.

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

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

     SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

       (a) Fiscal Year 1998.--The Armed Forces are authorized 
     strengths for Selected Reserve personnel of the reserve 
     components as of September 30, 1998, as follows:
       (1) The Army National Guard of the United States, 361,516.
       (2) The Army Reserve, 208,000.
       (3) The Naval Reserve, 94,294.
       (4) The Marine Corps Reserve, 42,000.
       (5) The Air National Guard of the United States, 107,377.
       (6) The Air Force Reserve, 73,431.
       (7) The Coast Guard Reserve, 8,000.
       (b) Adjustments.--The end strengths prescribed by 
     subsection (a) for the Selected Reserve of any reserve 
     component for a fiscal year shall be proportionately reduced 
     by--
       (1) the total authorized strength of units organized to 
     serve as units of the Selected Reserve of such component 
     which are on active duty (other than for training) at the end 
     of the fiscal year, and
       (2) the total number of individual members not in units 
     organized to serve as units of the Selected Reserve of such 
     component who are on active duty (other than for training or 
     for unsatisfactory participation in training) without their 
     consent at the end of the fiscal year.

     Whenever such units or such individual members are released 
     from active duty during any fiscal year, the end strength 
     prescribed for such fiscal year for the Selected Reserve of 
     such reserve component shall be proportionately increased by 
     the total authorized strengths of such units and by the total 
     number of such individual members.

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

       Within the end strengths prescribed in section 411(a), the 
     reserve components of the Armed Forces are authorized, as of 
     September 30, 1998, the following number of Reserves to be 
     serving on full-time active duty or full-time duty, in the 
     case of members of the National Guard, for the purpose of 
     organizing, administering, recruiting, instructing, or 
     training the reserve components:
       (1) The Army National Guard of the United States, 22,310.
       (2) The Army Reserve, 11,500.
       (3) The Naval Reserve, 16,136.
       (4) The Marine Corps Reserve, 2,559.
       (5) The Air National Guard of the United States, 10,616.
       (6) The Air Force Reserve, 963.
              Subtitle C--Authorization of Appropriations

     SEC. 421. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY 
                   PERSONNEL.

       There is hereby authorized to be appropriated to the 
     Department of Defense for military personnel for fiscal year 
     1998 a total of $69,264,962,000. The authorization in the 
     preceding sentence supersedes any other authorization of 
     appropriations (definite or indefinite) for such purpose for 
     fiscal year 1998.
                   TITLE V--MILITARY PERSONNEL POLICY
                    Subtitle A--Personnel Management

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

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

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

       Paragraph (2) of section 777(d) of title 10, United States 
     Code, is amended to read as follows:
       ``(2) The number of officers of an armed force on the 
     active-duty list who are authorized as described in 
     subsection (a) to wear the insignia for a grade to which a 
     limitation

[[Page S5826]]

     on total number applies under section 523(a) of this title 
     for a fiscal year may not exceed--
       ``(A) in the case of the grade of major, lieutenant 
     colonel, lieutenant commander, or commander, 1 percent of the 
     total number provided for the officers in that grade in that 
     armed force in the administration of the limitation under 
     that section for that fiscal year; and
       ``(B) in the case of the grade of colonel or captain, 2 
     percent of the total number provided for the officers in that 
     grade in that armed force in the administration of the 
     limitation under that section for that fiscal year.''.

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

       (a) Eligibility of Officers on Retired List.--(1) Section 
     5142(b) of title 10, United States Code, is amended by 
     striking out ``, who are not on the retired list,'' in the 
     second sentence.
       (2) Section 5142a of such title is amended by striking out 
     ``, who is not on the retired list,''.
       (b) Authority To Defer Retirement.--(1) Chapter 573 of 
     title 10, United States Code, is amended by adding at the end 
     the following new section:

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

       ``The Secretary of the Navy may defer the retirement under 
     section 1251(a) of this title of an officer of the Chaplain 
     Corps if during the period of the deferment the officer will 
     be serving as the Chief of Chaplains or the Deputy Chief of 
     Chaplains. A deferment under this subsection may not extend 
     beyond the first day of the month following the month in 
     which the officer becomes 68 years of age.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following:

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

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

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

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

       (a) Termination.--(1) Chapter 1214 of title 10, United 
     States Code, is amended by adding at the end the following;

     ``Sec. 12533. Termination of program authority

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

``12533. Termination of program authority.''.

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

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

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

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

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

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

       (a) In General.--(1) Chapter 1 of title 32, United States 
     Code, as amended by section 364, is further amended by adding 
     at the end the following new section:

     ``Sec. 114. Honor guard functions at funerals for veterans

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

``114. Honor guard functions at funerals for veterans.''.

       (b) Funding for Fiscal Year 1997.--Section 114 of title 32, 
     United States Code, as added by subsection (a), does not 
     authorize additional appropriations for fiscal year 1997. Any 
     expenses of the National Guard that are incurred by reason of 
     such section during fiscal year 1997 may be paid from 
     existing appropriations available for the National Guard.
              Subtitle C--Education and Training Programs

     SEC. 521. SERVICE ACADEMIES FOREIGN EXCHANGE STUDY PROGRAM.

       (a) United States Military Academy.--(1) Chapter 403 of 
     title 10, United States Code, is amended by inserting after 
     section 4344 the following new section:

     ``Sec. 4345. Exchange program with foreign military academies

       ``(a) Agreement Authorized.--The Secretary of the Army may 
     enter into an agreement with an official of a foreign 
     government authorized to act for that foreign government to 
     carry out a military academy foreign exchange study program.
       ``(b) Terms of Agreement.--(1) An agreement with a foreign 
     government under this section shall provide for the 
     following:
       ``(A) That, on an exchange basis, the Secretary provide 
     students of military academies of the foreign government with 
     instruction at the Academy and the foreign government provide 
     cadets of the Academy with instruction at military academies 
     of the foreign government.
       ``(B) That the number of cadets of the Academy provided 
     instruction under the exchange program and the number of 
     students of military academies of the foreign government 
     provided instruction at the Academy under the exchange 
     program during an academic year be equal.
       ``(C) That the duration of the period of exchange study for 
     each student not exceed one academic semester (or an 
     equivalent academic period of a host foreign military 
     academy).
       ``(2) An agreement with a foreign government under this 
     section may provide for the

[[Page S5827]]

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

``4345. Exchange program with foreign military academies.''.

       (b) United States Naval Academy.--(1) Chapter 603 of title 
     10, United States Code, is amended by inserting after section 
     6957 the following new section:

     ``Sec. 6957a. Exchange program with foreign military 
       academies

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

``6957a. Exchange program with foreign military academies.''.

       (c) United States Air Force Academy.--(1) Chapter 903 of 
     title 10, United States Code, is amended by inserting after 
     section 9344 the following new section:

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

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

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

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

       (a) Programs for Instructors at Air Force Training 
     Schools.--Section 9315 of title 10, United States Code, is 
     amended--
       (1) in subsection (b), by striking out ``(b) Subject to 
     subsection (c)'' and inserting in lieu thereof ``(b) 
     Conferment of Degree.--(1) Subject to paragraph (2)'';
       (2) by redesignating subsection (c) as paragraph (2) and in 
     such paragraph, as so redesignated--
       (A) by striking out ``(1) the'' and inserting in lieu 
     thereof ``(A) the''; and

[[Page S5828]]

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

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

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

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

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

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

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

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

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

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

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

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

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

     SEC. 541. SHORT TITLE.

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

     SEC. 542. GUARANTEE OF RESIDENCY.

       Article VII of the Soldiers' and Sailors' Civil Relief Act 
     of 1940 (50 U.S.C. App. 590 et seq.) is amended by adding at 
     the end the following:
       ``Sec. 704. (a) For purposes of voting for an office of the 
     United States or of a State, a person who is absent from a 
     State in compliance with military or naval orders shall not, 
     solely by reason of that absence--
       ``(1) be deemed to have lost a residence or domicile in 
     that State;
       ``(2) be deemed to have acquired a residence or domicile in 
     any other State; or
       ``(3) be deemed to have become resident in or a resident of 
     any other State.
       ``(b) In this section, the term `State' includes a 
     territory or possession of the United States, a political 
     subdivision of a State, territory, or possession, and the 
     District of Columbia.''.

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

       (a) Registration and Balloting.--Section 102 of the 
     Uniformed and Overseas Absentee Voting Act (42 U.S.C. 1973ff-
     1) is amended--
       (1) by inserting ``(a) Elections for Federal Offices.--'' 
     before ``Each State shall--''; and
       (2) by adding at the end the following:
       ``(b) Elections for State and Local Offices.--Each State 
     shall--
       ``(1) permit absent uniformed services voters to use 
     absentee registration procedures and to vote by absentee 
     ballot in general, special, primary, and runoff elections for 
     State and local offices; and
       ``(2) accept and process, with respect to any election 
     described in paragraph (1), any otherwise valid voter 
     registration application from an absent uniformed services 
     voter if the application is received by the appropriate State 
     election official not less than 30 days before the 
     election.''.
       (b) Conforming Amendment.--The heading for title I of such 
     Act is amended by striking out ``FOR FEDERAL OFFICE''.
                       Subtitle F--Other Matters

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

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

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

       (a) Establishment.--There is established a commission to be 
     known as the Commission on Gender Integration in the 
     Military.

[[Page S5829]]

       (b) Membership.--
       (1) In general.--The commission shall be composed of 11 
     members appointed from among private citizens of the United 
     States who have appropriate and diverse experiences, 
     expertise, and historical perspectives on training, 
     organizational, legal, management, military, and gender 
     integration matters.
       (2) Specific qualifications.--Of the 11 members, at least 
     two shall be appointed from among persons who have superior 
     academic credentials, at least four shall be appointed from 
     among former members and retired members of the Armed Forces, 
     and at least two shall be appointed from among members of the 
     reserve components of the Armed Forces.
       (c) Appointments.--
       (1) Authority.--The President pro tempore of the Senate 
     shall appoint the members in consultation with the chairman 
     of the Committee on Armed Services, who shall recommend six 
     persons for appointment, and the ranking member of the 
     Committee on Armed Services, who shall recommend five persons 
     for appointment. The appointments shall be made not later 
     than 45 days after the date of the enactment of this Act.
       (2) Period of appointment.--Members shall be appointed for 
     the life of the commission.
       (3) Vacancies.--A vacancy in the membership shall not 
     affect the commission's powers, but shall be filled in the 
     same manner as the original appointment.
       (d) Meetings.--
       (1) Initial meeting.--The Commission shall hold its first 
     meeting not later than 30 days after the date on which all 
     members have been appointed.
       (2) When called.--The Commission shall meet upon the call 
     of the chairman.
       (3) Quorum.--A majority of the members of the Commission 
     shall constitute a quorum, but a lesser number may hold 
     meetings.
       (e) Chairman and Vice Chairman.--The Commission shall 
     select a chairman and a vice chairman from among its members.
       (f) Authority of Individuals To Act for Commission.--Any 
     member or agent of the Commission may, if authorized, by the 
     Commission, take any action which the Commission is 
     authorized to take under this title.
       (g) Duties.--The Commission shall--
       (1) review the current practices of the Armed Forces, 
     relevant studies, and private sector training concepts 
     pertaining to gender-integrated training;
       (2) review the laws, regulations, policies, directives, and 
     practices that govern personal relationships between men and 
     women in the armed forces and personal relationships between 
     members of the armed forces and non-military personnel of the 
     opposite sex;
       (3) assess the extent to which the laws, regulations, 
     policies, and directives have been applied consistently 
     throughout the Armed Forces without regard to the armed 
     force, grade, or rank of the individuals involved;
       (4) provide an independent assessment of the reports of the 
     independent panel, the Department of Defense task force, and 
     the review of existing guidance on adultery announced by the 
     Secretary of Defense; and
       (5) examine the experiences, policies, and practices of the 
     armed forces of other industrialized nations regarding 
     gender-integrated training.
       (h) Reports.--
       (1) Initial report.--Not later than April 15, 1998, the 
     Commission shall submit to the Committee on Armed Services of 
     the Senate an initial report setting forth the activities, 
     findings, and recommendations of the Commission. The report 
     shall include any recommendations for congressional action 
     and administrative action that the Commission considers 
     appropriate.
       (2) Final report.--Not later than September 16, 1998, the 
     Commission shall submit to the Committee on Armed Services a 
     final report setting forth the activities, findings, and 
     recommendations of the Commission, including any 
     recommendations for congressional action and administrative 
     action that the Commission considers appropriate.
       (i) Powers.--
       (1) Hearings, et cetera.--The Commission may hold such 
     hearings, sit and act at such times and places, take such 
     testimony, and receive such evidence as the Commission 
     considers advisable to carry out its duties.
       (2) Information from federal agencies.--The Commission may 
     secure directly from the Department of Defense and any other 
     department or agency of the Federal Government such 
     information as the Commission considers necessary to carry 
     out its duties. Upon the request of the chairman of the 
     Commission, the head of a department or agency shall furnish 
     the requested information expeditiously to the Commission.
       (3) Postal services.-- The Commission may use the United 
     States mails in the same manner and under the same conditions 
     as other departments and agencies of the Federal Government.
       (j) Administrative Support.--The Secretary of Defense 
     shall, upon the request of the chairman of the Commission, 
     furnish the Commission any administrative and support 
     services that the Commission may require.
       (k) Commission Personnel Matters.--
       (1) Compensation of members.--Each member of the Commission 
     may be compensated at a rate equal to the daily equivalent of 
     the annual rate of basic pay prescribed for level IV of the 
     Executive Schedule under section 5315 of title 5, United 
     States Code, for each day (including travel time) during 
     which such member is engaged in performing the duties of the 
     Commission.
       (2) Travel on military conveyances.--Members and personnel 
     of the Commission may travel on aircraft, vehicles, or other 
     conveyances of the Armed Forces when travel is necessary in 
     the performance of a duty of the Commission except when the 
     cost of commercial transportation is less expensive.
       (3) Travel expenses.--The members of the Commission may be 
     allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for employees of agencies 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from their homes or regular places of 
     business in the performance of services for the Commission.
       (4) Staff.--The chairman of the Commission may, without 
     regard to civil service laws and regulations, appoint and 
     terminate an executive director and up to three additional 
     staff members as necessary to enable the Commission to 
     perform its duties. The chairman of the Commission may fix 
     the compensation of the executive director and other 
     personnel without regard to the provisions of chapter 51, and 
     subchapter III of chapter 53, of title 5, United States Code, 
     relating to classification of positions and General Schedule 
     pay rates, except that the rate of pay may not exceed the 
     rate payable for level V of the executive schedule under 
     section 5316 of such title.
       (5) Detail of government employees.--Upon the request of 
     the chairman of the Commission, the head of any department or 
     agency of the Federal Government may detail, without 
     reimbursement, any personnel of the department or agency to 
     the Commission to assist in carrying out its duties. A detail 
     of an employee shall be without interruption or loss of civil 
     service status or privilege.
       (6) Temporary and intermittent services.--The chairman of 
     the Commission may procure temporary and intermittent 
     services under section 3109(b) of title 5, United States 
     Code, at rates for individuals that do not exceed the daily 
     equivalent of the annual rate of basic pay prescribed for 
     level IV of the Executive Schedule under section 5315 of such 
     title.
       (l) Termination.--The Commission shall terminate 90 days 
     after the date on which it submits the final report under 
     subsection (h)(2).
       (m) Funding.--
       (1) From department of defense appropriations.--Upon the 
     request of the chairman of the Commission, the Secretary of 
     Defense shall make available to the Commission, out of funds 
     appropriated for the Department of Defense, such amounts as 
     the Commission may require to carry out its duties.
       (2) Period of availability.--Funds made available to the 
     Commission shall remain available, without fiscal year 
     limitation, until the date on which the Commission 
     terminates.

     SEC. 553. SEXUAL HARASSMENT INVESTIGATIONS AND REPORTS.

       (a) Investigations.--Any commanding officer or officer in 
     charge of a unit, vessel, facility, or area who receives from 
     a member of the command or a civilian employee under the 
     supervision of the officer a complaint alleging sexual 
     harassment by a member of the Armed Forces or a civilian 
     employee of the Department of Defense shall, to the extent 
     practicable--
       (1) within 72 hours after receipt of the complaint--
       (A) forward the complaint or a detailed description of the 
     allegation to the next superior officer in the chain of 
     command who is authorized to convene a general court-martial;
       (B) commence, or cause the commencement of, an 
     investigation of the complaint; and
       (C) advise the complainant of the commencement of the 
     investigation;
       (2) ensure that the investigation of the complaint is 
     completed not later than 14 days after the investigation is 
     commenced; and
       (3) either--
       (A) submit a final report on the results of the 
     investigation, including any action taken as a result of the 
     investigation, to the next superior officer referred to in 
     paragraph (1) within 20 days after the investigation is 
     commenced; or
       (B) submit a report on the progress made in completing the 
     investigation to the next superior officer referred to in 
     paragraph (1) within 20 days after the investigation is 
     commenced and every 14 days thereafter until the 
     investigation is completed and, upon completion of the 
     investigation, then submit a final report on the results of 
     the investigation, including any action taken as a result of 
     the investigation, to that next superior officer.
       (b) Reports.--(1) Not later than January 1 of each of 1998 
     and 1999, each officer receiving any complaint forwarded in 
     accordance with subsection (a) during the preceding year 
     shall submit to the Secretary of the military department 
     concerned a report on all such complaints and the 
     investigations of such complaints (including the results of 
     the investigations, in cases of investigations completed 
     during such preceding year).
       (2)(A) Not later than March 1 of each of 1998 and 1999, 
     each Secretary receiving a report under paragraph (1) for a 
     year shall submit to the Secretary of Defense a report on all 
     such reports so received.

[[Page S5830]]

       (B) Not later than the April 1 following receipt of a 
     report for a year under subparagraph (A), the Secretary of 
     Defense shall transmit to Congress all such reports received 
     for the year under subparagraph (A) together with the 
     Secretary's assessment of each such report.
       (c) Sexual Harassment Defined.--In this section, the term 
     `sexual harassment' means--
       (1) a form of sex discrimination that--
       (A) involves unwelcome sexual advances, requests for sexual 
     favors, and other verbal or physical conduct of a sexual 
     nature when--
       (i) submission to such conduct is made either explicitly or 
     implicitly a term or condition of a person's job, pay, or 
     career;
       (ii) submission to or rejection of such conduct by a person 
     is used as a basis for career or employment decisions 
     affecting that person; or
       (iii) such conduct has the purpose or effect of 
     unreasonably interfering with an individual's work 
     performance or creates an intimidating, hostile, or offensive 
     working environment; and
       (B) is so severe or pervasive that a reasonable person 
     would perceive, and the victim does perceive, the work 
     environment as hostile or offensive;
       (2) any use or condonation, by any person in a supervisory 
     or command position, of any form of sexual behavior to 
     control, influence, or affect the career, pay, or job of a 
     member of the Armed Forces or a civilian employee of the 
     Department of Defense; and
       (3) any deliberate or repeated unwelcome verbal comment, 
     gesture, or physical contact of a sexual nature in the 
     workplace by any member of the Armed Forces or civilian 
     employee of the Department of Defense.

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

       (a) Army.--(1) Chapter 345 of title 10, United States Code, 
     is amended by adding at the end:

     ``Sec. 3583. Requirement of exemplary conduct

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

``3583. Requirement of exemplary conduct.''.

       (b) Air Force.--(1) Chapter 845 of title 10, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 8583. Requirement of exemplary conduct

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

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

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

       (a) Authority.--Chapter 53 of title 10, United States Code, 
     is amended by inserting after section 1060a the following new 
     section:

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

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

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

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

       Section 14317(d) of title 10, United States Code, is 
     amended by striking out ``section 14314'' in the first 
     sentence and inserting in lieu thereof ``section 14315''.
          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS
                            Subtitle A--Pay

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

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

           PART I--REFORM OF BASIC ALLOWANCE FOR SUBSISTENCE

     SEC. 611. REVISED ENTITLEMENT AND RATES.

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

[[Page S5831]]

     administration of this section. Before prescribing the 
     regulations, the Secretary shall consult with each Secretary 
     concerned.
       ``(2) The regulations shall include the rates of basic 
     allowance for subsistence.''.
       (f) Stylistic and Conforming Amendments.--
       (1) Subsection headings.--Such section is amended--
       (A) in subsection (a), by inserting ``Entitlement.--'' 
     after ``(a)''; and
       (B) in subsection (d), by inserting ``Coast Guard.--'' 
     after ``(d)''.
       (2) Travel status exception to entitlement.--Section 404 of 
     title 37, United States Code, is amended--
       (A) by striking out subsection (g); and
       (B) by redesignating subsections (h), (i), (j), and (k) as 
     subsections (g), (h), (i), and (j), respectively.

     SEC. 612. TRANSITIONAL BASIC ALLOWANCE FOR SUBSISTENCE.

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

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

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

           PART II--REFORM OF HOUSING AND RELATED ALLOWANCES

     SEC. 616. ENTITLEMENT TO BASIC ALLOWANCE FOR HOUSING.

       (a) Redesignation of BAQ.--Section 403 of title 37, United 
     States Code, is amended by striking out ``basic allowance for 
     quarters'' each place it appears, except in subsections (f) 
     and (m), and inserting in lieu thereof ``basic allowance for 
     housing''.
       (b) Rates.--Subsection (a) of such section is amended by 
     striking out ``section 1009'' and inserting in lieu thereof 
     ``section 403a''.
       (c) Temporary Housing Allowance While in Travel or Leave 
     Status.--Subsection (f) of such section is amended to read as 
     follows:
       ``(f) Temporary Housing Allowance While in Travel or Leave 
     Status.--A member of a uniformed service who is in pay grade 
     above E-4 (four or more years of service) or above is 
     entitled to a temporary housing allowance (at a rate 
     determined under section 403a of this title) while the member 
     is in a travel or leave status between permanent duty 
     stations, including time granted as delay en route or proceed 
     time, when the member is not assigned to quarters of the 
     United States.''.
       (d) Determinations Necessary for Administering Authority 
     for all Members.--Subsection (h) of such section is amended 
     by striking out ``enlisted'' each place it appears.
       (e) Entitlement of Members Not Entitled to Pay.--Subsection 
     (i) of such section is amended by striking out ``enlisted''.
       (f) Temporary Housing and Allowance for Survivors of Active 
     Duty Members.--
       (1) Continuation of occupancy.--Paragraph (1) of subsection 
     (l) of such section is amended by striking out ``in line of 
     duty'' and inserting in lieu thereof ``on active duty''.
       (2) Allowance.--Paragraph (2) of such subsection is amended 
     to read as follows:
       ``(2)(A) The Secretary concerned may pay a basic allowance 
     for housing (at the rate determined under section 403a of 
     this title) to the dependents of a member of the uniformed 
     services who dies while on active duty and whose dependents--
       ``(i) are not occupying a housing facility under the 
     jurisdiction of a uniformed service on the date of the 
     member's death;
       ``(ii) are occupying such housing on a rental basis on such 
     date; or
       ``(iii) vacate such housing sooner than 180 days after the 
     date of the member's death.
       ``(B) The payment of the allowance under this subsection 
     shall terminate 180 days after the date of the member's 
     death.''.
       (g) Entitlement of Member Paying Child Support.--Subsection 
     (m) of such section is amended to read as follows:
       ``(m) Members Paying Child Support.--(1) A member of a 
     uniformed service with dependents may not be paid a basic 
     allowance for housing at the with dependents rate solely by 
     reason of the payment of child support by the member if--
       ``(A) the member is assigned to a housing facility under 
     the jurisdiction of a uniformed service; or
       ``(B) the member is in a pay grade above E-4, is assigned 
     to sea duty, and elects not to occupy assigned quarters for 
     unaccompanied personnel.

[[Page S5832]]

       ``(2) A member of a uniformed service assigned to quarters 
     of the United States or a housing facility under the 
     jurisdiction of a uniformed service who is not otherwise 
     authorized a basic allowance for housing and who pays child 
     support is entitled to the basic allowance for housing 
     differential (at the rate applicable under section 403a of 
     this title) to the members' pay grade except for months for 
     which the amount payable for the child support is less than 
     the rate of the differential. Payment of a basic allowance 
     for housing differential does not affect any entitlement of 
     the member to a partial allowance for quarters under 
     subsection (o).''.
       (h) Replacement of VHA by Basic Allowance for Housing.--
       (1) Members not accompanied by dependents outside conus.--
     Such section is further amended by adding at the end the 
     following:
       ``(n) Members Not Accompanied by Dependents Outside 
     CONUS.--(1) A member of a uniformed service with dependents 
     who is assigned to an unaccompanied tour of duty outside the 
     continental United States is eligible for a basic allowance 
     for housing as provided in paragraph (2).
       ``(2)(A) For any period during which the dependents of a 
     member referred to in paragraph (1) reside in the United 
     States where, if the member were residing with them, the 
     member would be entitled to receive a basic allowance for 
     housing, the member is entitled to a basic allowance for 
     housing at the rate applicable under section 403a of this 
     title to the member's pay grade and the location of the 
     residence of the member's dependents.
       ``(B) A member referred to in paragraph (1) may be paid a 
     basic allowance for housing at the rate applicable under 
     section 403a of this title to the members's pay grade and 
     location.
       ``(3) Payment of a basic allowance for housing to a member 
     under paragraph (2)(B) shall be in addition to any allowance 
     or per diem to which the member otherwise may be entitled 
     under this title.''.
       (2) Members not accompanied by dependents inside conus.--
     Paragraph (2) of section 403a(a) of title 37, United States 
     Code, is transferred to the end of section 403 of such title 
     and, as transferred, is amended--
       (A) by striking out ``(2)'' and inserting in lieu thereof 
     ``(o) Members Not Accompanied by Dependents Inside CONUS.--
     '';
       (B) by striking out ``variable housing allowance'' each 
     place it appears and inserting in lieu thereof ``basic 
     allowance for housing'';
       (C) by striking out ``(under regulations prescribed under 
     subsection (e))'' in the matter following subparagraph (B) 
     and inserting in lieu thereof ``(under regulations prescribed 
     by the Secretary of Defense)''; and
       (D) by redesignating subparagraphs (A) and (B) as 
     paragraphs (1) and (2), respectively.
       (3) Repeal of vha allowance.--Section 403a of title 37, 
     United States Code, is repealed.
       (i) Members Without Dependents.--Section 403 of such title, 
     as amended by subsection (f), is further amended by adding at 
     the end the following:
       ``(p) Partial Allowance for Members Without Dependents.--A 
     member of a uniformed service without dependents who is not 
     entitled to receive a basic allowance for housing under 
     subsection (b) or (c) is entitled to a partial allowance for 
     quarters determined under section 403a of this title.''.
       (j) Stylistic Amendments.--Section 403 of title 37, United 
     States Code, as amended by this section, is further amended--
       (1) in subsection (a), by striking out ``(a)(1)'' and 
     inserting in lieu thereof ``(a) General Entitlement.--(1)'';
       (2) in subsection (b), by striking out ``(b)(1)'' and 
     inserting in lieu thereof ``(b) Members Assigned to 
     Quarters.--(1)'';
       (3) in subsection (c), by striking out ``(c)(1)'' and 
     inserting in lieu thereof ``(c) Ineligibility During Initial 
     Field Duty or Sea Duty.--(1)'';
       (4) in subsection (d), by striking out ``(d)(1)'' and 
     inserting in lieu thereof ``(d) Prohibited Grounds for 
     Denial.--(1)'';
       (5) in subsection (e), by inserting ``Rental of Public 
     Quarters.--'' after ``(e)'';
       (6) in subsection (g), by inserting ``Aviation Cadets.--'' 
     after ``(g)'';
       (7) in subsection (h), by inserting ``Necessary 
     Determinations.--'' after ``(h)'';
       (8) in subsection (i), by inserting ``Entitlement of Member 
     Not Entitled to Pay.--'' after ``(i)'';
       (9) in subsection (j), by striking out ``(j)(1)'' and 
     inserting in lieu thereof ``(j) Administrative Authority.--
     (1)'';
       (10) in subsection (k), by inserting ``Parking Facilities 
     Not Considered Quarters.--'' after ``(k)''; and
       (11) in subsection (l), by striking out ``(l)(1)'' and 
     inserting in lieu thereof ``(l) Dependents of Members Dying 
     on Active Duty.--(1)''.
       (k) Section Heading.--The heading of section 403 of title 
     37, United States Code, is amended to read as follows:

     ``Sec. 403. Basic allowance for housing: eligibility''.

     SEC. 617. RATES OF BASIC ALLOWANCE FOR HOUSING.

       Chapter 7 of title 37, United States Code, is amended by 
     inserting after section 403 the following new section 403a:

     ``Sec. 403a. Basic allowance for housing: rates

       ``(a) Rates Prescribed by Secretary of Defense.--The 
     Secretary of Defense shall prescribe monthly rates of basic 
     allowance for housing payable under section 403 of this 
     title. The Secretary shall specify the rates, by pay grade 
     and dependency status, for each geographic area defined in 
     accordance with subsection (b).
       ``(b) Geographic Basis for Rates.--(1) The Secretary shall 
     define the areas within the United States and the areas 
     outside the United States for which rates of basic allowance 
     for housing are separately specified.
       ``(2) For each area within the United States that is 
     defined under paragraph (1), the Secretary shall determine 
     the costs of housing in that area that the Secretary 
     considers adequate for civilians residents of that area whose 
     relevant circumstances the Secretary considers as being 
     comparable to those of members of the uniformed services.
       ``(3) For each area outside the United States defined under 
     paragraph (1), the Secretary shall determine the costs of 
     housing in that area that the Secretary considers adequate 
     for members of the uniformed services.
       ``(c) Rates Within the United States.--(1) Subject to 
     paragraph (2), the monthly rate of basic allowance for 
     housing for members of the uniformed services of a particular 
     grade and dependency status for an area within the United 
     States shall be the amount equal to the excess of--
       ``(A) the monthly cost of housing determined applicable for 
     members of that grade and dependency status for that area 
     under subsection (b), over
       ``(B) the amount equal to 15 percent of the average of the 
     monthly costs of housing determined applicable for members of 
     the uniformed services of that grade and dependency status 
     for all areas of the United States under subsection (b).
       ``(2) The rates of basic allowance for housing determined 
     under paragraph (1) shall be reduced as necessary to comply 
     with subsection (g).
       ``(d) Rates Outside the United States.--The monthly rate of 
     basic allowance for housing for members of the uniformed 
     services of a particular grade and dependency status for an 
     area outside the United States shall be an amount appropriate 
     for members of the uniformed services of that grade and 
     dependency status for that area, as determined by the 
     Secretary on the basis of the costs of housing in that area.
       ``(e) Adjustments When Rates of Basic Pay Increased.--The 
     Secretary of Defense shall periodically redetermine the 
     housing costs for areas under subsection (b) and adjust the 
     rates of basic allowance for housing as appropriate on the 
     basis of the redetermination of costs. The effective date of 
     any adjustment in rates of basic allowance for housing for an 
     area as a result of such a redetermination shall be the same 
     date as the effective date of the next increase in rates of 
     basic pay for members of the uniformed services after the 
     redetermination.
       ``(f) Savings of Rate.--The rate of basic allowance for 
     housing payable to a particular member for an area within the 
     United States may not be reduced during a continuous period 
     of eligibility of the member to receive a basic allowance for 
     housing for that area by reason of--
       ``(1) a general reduction of rates of basic allowance for 
     housing for members of the same grade and dependency status 
     for the area taking effect during the period; or
       ``(2) a promotion of the member during the period.
       ``(g) Fiscal Year Limitation on Total Allowances Paid for 
     Housing Inside the United States.--(1) The total amount that 
     may be paid for a fiscal year for the basic allowance for 
     housing for areas within the United States authorized members 
     of the uniformed services by section 403 of this title is the 
     product of--
       ``(A) the total amount authorized to be paid for the 
     allowance for such areas for the preceding fiscal year (as 
     adjusted under paragraph (2)); and
       ``(B) the fraction--
       ``(i) the numerator of which is the average of the costs of 
     housing determined by the Secretary under subsection (b)(2) 
     for the areas of the United States for June of the preceding 
     fiscal year; and
       ``(ii) the denominator of which is the average of the costs 
     of housing determined by the Secretary under subsection 
     (b)(2) for the areas of the United States for June of the 
     fiscal year before the preceding fiscal year.
       ``(2) In making a determination under paragraph (1) for a 
     fiscal year, the Secretary shall adjust the amount authorized 
     to be paid for the preceding fiscal year for the basic 
     allowance for housing to reflect changes (during the fiscal 
     year for which the determination is made) in the number, 
     grade distribution, and dependency status of members of the 
     uniformed services entitled to the basic allowance for 
     housing from the number of such members during such preceding 
     fiscal year.
       ``(h) Members En Route Between Permanent Duty Stations.--
     The Secretary of Defense shall prescribe in regulations the 
     rate of the temporary housing allowance to which a member is 
     entitled under section 403(f) of this title while the member 
     is in a travel or leave status between permanent duty 
     stations.
       ``(i) Survivors of Members Dying on Active Duty.-- The rate 
     of the basic allowance for housing payable to dependents of a 
     deceased member under section 403(l)(2) of this title shall 
     be the rate that is payable for members of the same grade and 
     dependency status as the deceased member for the area where 
     the dependents are residing.
       ``(j) Members Paying Child Support.--(1) The basic 
     allowance for housing differential

[[Page S5833]]

     to which a member is entitled under section 403(m)(2) of this 
     title is the amount equal to the excess of--
       ``(A) the rate of the basic allowance for quarters (with 
     dependents) for the member's pay grade, as such rate was in 
     effect on December 31, 1997, under section 403 of this title 
     (as such section was in effect on such date), over
       ``(B) the rate of the basic allowance for quarters (without 
     dependents) for the member's pay grade, as such rate was in 
     effect on December 31, 1997, under section 403 of this title 
     (as such section was in effect on that date).
       ``(2) Whenever the rates of basic pay for members of the 
     uniformed services are increased, the monthly amount of the 
     basic allowance for housing differential shall be increased 
     by the average percent increase in the rates of basic pay. 
     The effective date of the increase shall be the same date as 
     the effective date in the increase in the rates of basic pay.
       ``(k) Partial Allowance for Quarters.--The rate of the 
     partial allowance for quarters to which a member without 
     dependents is entitled under section 403(p) of this title is 
     the partial rate of basic allowance for quarters for the 
     member's pay grade as such partial rate was in effect on 
     December 31, 1997, under section 1009(c)(2) of this title (as 
     such section was in effect on such date).''.

     SEC. 618. DISLOCATION ALLOWANCE.

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

     SEC. 619. FAMILY SEPARATION AND STATION ALLOWANCES.

       (a) Family Separation Allowance.--
       (1) Repeal of authority for allowance equal to baq.--
     Section 427 of title 37, United States Code, is amended by 
     striking out subsection (a).
       (2) Conforming amendments.--Subsection (b) of such section 
     is amended--
       (A) by striking out ``(b) Additional Separation 
     Allowance.--'';
       (B) by redesignating paragraphs (1), (2), (3), (4), and 
     (5), as subsections (a), (b), (c), (d), and (e), 
     respectively;
       (C) in subsection (a), as so redesignated--
       (i) by inserting ``Entitlement.--'' after ``(a)'';
       (ii) by striking out ``, including subsection (a),''; and
       (iii) by redesignating subparagraphs (A), (B), (C), and (D) 
     as paragraphs (1), (2), (3), and (4), respectively;
       (D) in subsection (b), as redesignated by paragraph (2)--
       (i) by inserting ``Effective Date for Separation Due to 
     Cruise or Temporary Duty.--'' after ``(b)'';
       (ii) by striking out ``subsection by virtue of duty 
     described in subparagraph (B) or (C) of paragraph (1)'' and 
     inserting in lieu thereof ``section by virtue of duty 
     described in paragraph (2) or (3) of subsection (a)'';
       (iii) by redesignating subparagraphs (A) and (B) as 
     paragraphs (1) and (2), respectively; and
       (iv) in paragraph (2), as so redesignated--

       (I) by striking out ``subsection'' and inserting in lieu 
     thereof ``section''; and
       (II) by striking out ``subparagraphs'' and inserting in 
     lieu thereof ``paragraphs'';

       (E) in subsection (c), as redesignated by paragraph (2)--
       (i) by inserting ``Entitlement When No Residence or 
     Household Maintained for Dependents.--'' after ``(c)''; and
       (ii) by striking out ``subsection'' and inserting in lieu 
     thereof ``section'';
       (F) in subsection (d), as redesignated by paragraph (2)--
       (i) by inserting ``Effect of Election of Unaccompanied 
     Tour.--'' after ``(d)''; and
       (ii) by striking out ``paragraph (1)(A) of this 
     subsection'' and inserting in lieu thereof ``subsection 
     (a)(1)''; and
       (G) in subsection (e), as redesignated by paragraph (2)--
       (i) by inserting ``Entitlement While Dependent Entitled to 
     Basic Pay.--'' after ``(e)''; and
       (ii) by striking out ``paragraph (1)(D)'' each place it 
     appears and inserting in lieu thereof ``subsection (a)(4)''.
       (b) Station Allowance.--
       (1) Repeal of authority.--Section 405 of title 37, United 
     States Code, is amended by striking out subsection (b).
       (2) Conforming amendment.--Such section is further amended 
     by redesignating subsections (c) and (d) as subsections (b) 
     and (c), respectively.

     SEC. 620. OTHER CONFORMING AMENDMENTS.

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

     SEC. 621. CLERICAL AMENDMENT.

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

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

     SEC. 622. EFFECTIVE DATE.

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

           PART III--OTHER AMENDMENTS RELATING TO ALLOWANCES

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

       (a) Conforming Repeal of Authority Relating to BAS and 
     BAQ.--
       (1) In general.--Section 1009 of title 37, United States 
     Code, is amended to read as follows:

     ``Sec. 1009. Adjustments of monthly basic pay

       ``(a) Adjustment Required.--Whenever the General Schedule 
     of compensation for Federal classified employees as contained 
     in section 5332 of title 5 is adjusted upward, the President 
     shall immediately make an upward adjustment in the monthly 
     basic pay authorized members of the uniformed services by 
     section 203(a) of this title.
       ``(b) Effectiveness of Adjustment.--An adjustment under 
     this section shall--
       ``(1) have the force and effect of law; and
       ``(2) carry the same effective date as that applying to the 
     compensation adjustments provided General Schedule employees.
       ``(c) Equal Percentage Increase for All Members.--Subject 
     to subsection (d), an adjustment under this section shall 
     provide all eligible members with an increase in the monthly 
     basic pay which is of the same percentage as the overall 
     average percentage increase in the General Schedule rates of 
     basic pay for civilian employees.
       ``(d) Allocation of Increase Among Pay Grades and Years-of-
     Service.--(1) Subject to paragraph (2), whenever the 
     President determines such action to be in the best interest 
     of the Government, he may allocate the overall percentage 
     increase in the monthly basic pay under subsection (a) among 
     such pay grade and years-of-service categories as he 
     considers appropriate.
       ``(2) In making any allocation of an overall percentage 
     increase in basic pay under paragraph (1)--
       ``(A) the amount of the increase in basic pay for any given 
     pay grade and years-of-service category after any allocation 
     made under this subsection may not be less than 75 percent of 
     the amount of the increase in the monthly basic pay that 
     would otherwise have been effective with respect to such pay 
     grade and years-of-service category under subsection (c); and
       ``(B) the percentage increase in the monthly basic pay in 
     the case of any member of the uniformed services with four 
     years or less service may not exceed the overall percentage 
     increase in the General Schedule rates of basic pay for 
     civilian employees.
       ``(e) Notice of Allocations.--Whenever the President plans 
     to exercise his authority under subsection (d) with respect 
     to any anticipated increase in the monthly basic pay of 
     members of the uniformed services, he shall advise Congress, 
     at the earliest practicable time prior to the effective date 
     of

[[Page S5834]]

     such increase, regarding the proposed allocation of such 
     increase.
       ``(f) Quadrennial Assessment of Allocations.--The 
     allocations of increases made under this section shall be 
     assessed in conjunction with the quadrennial review of 
     military compensation required by section 1008(b) of this 
     title.''.
       (2) Clerical amendment.--The item relating to such section 
     in the table of sections at the beginning of chapter 19 of 
     such title is amended to read as follows:

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

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

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

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

       (a) Special Pay for Critically Short Wartime Health 
     Specialists.--Section 302g(f) of title 37, United States 
     Code, is amended by striking out ``September 30, 1998'' and 
     inserting in lieu thereof ``September 30, 1999''.
       (b) Selected Reserve Reenlistment Bonus.--Section 308b(f) 
     of title 37, United States Code, is amended by striking out 
     ``September 30, 1998'' and inserting in lieu thereof 
     ``September 30, 1999''.
       (c) Selected Reserve Enlistment Bonus.--Section 308c(e) of 
     title 37, United States Code, is amended by striking out 
     ``September 30, 1998'' and inserting in lieu thereof 
     ``September 30, 1999''.
       (d) Special Pay for Enlisted Members Assigned to Certain 
     High Priority Units.--Section 308d(c) of title 37, United 
     States Code, is amended by striking out ``September 30, 
     1998'' and inserting in lieu thereof ``September 30, 1999''.
       (e) Selected Reserve Affiliation Bonus.--Section 308e(e) of 
     title 37, United States Code, is amended by striking out 
     ``September 30, 1998'' and inserting in lieu thereof 
     ``September 30, 1999''.
       (f) Ready Reserve Enlistment and Reenlistment Bonus.--
     Section 308h(g) of title 37, United States Code, is amended 
     by striking out ``September 30, 1998'' and inserting in lieu 
     thereof ``September 30, 1999''.
       (g) Prior Service Enlistment Bonus.--Section 308i(i) of 
     title 37, United States Code, is amended by striking out 
     ``September 30, 1998'' and inserting in lieu thereof 
     ``September 30, 1999''.
       (h) Repayment of Education Loans for Certain Health 
     Professionals Who Serve in the Selected Reserve.--Section 
     16302(d) of title 10, United States Code, is amended by 
     striking out ``October 1, 1998'' and inserting in lieu 
     thereof ``October 1, 1999''.

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

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

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

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

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

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

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

                               ``Phase II

                                                              ``Monthly
``Years of service as an officer:                                  rate
  ``Over 22.......................................................$585 
  ``Over 23........................................................495 
  ``Over 24........................................................385 
  ``Over 25......................................................250''.

       (b) Effective Date and Applicability.--The amendments made 
     by subsection (a) shall take effect on October 1, 1998, and 
     shall apply with respect to months beginning on or after that 
     date.

     SEC. 635. AVIATION CONTINUATION PAY.

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

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

       (a) Addition of Dental Officers.--Section 301d of title 37, 
     United States Code, is amended--
       (1) in subsection (a)(1), by inserting ``or dental'' after 
     ``medical''; and
       (2) in subsection (b)--
       (A) in paragraph (1)--
       (i) by inserting ``or Dental Corps'' after ``Medical 
     Corps''; and
       (ii) by inserting ``or dental'' after ``medical''; and
       (B) in paragraph (3), by inserting ``or dental'' after 
     ``medical''.
       (b) Conforming Amendment and Related Clerical Amendment.--
     (1) The heading of such section is amended to read as 
     follows:

     ``Sec. 301d. Multiyear retention bonus: medical and dental 
       officers of the armed forces''.

       (2) The item relating to such section in the table of 
     sections at the beginning of chapter 5 of title 37, United 
     States Code, is amended to read as follows:

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

     SEC. 637. INCREASED SPECIAL PAY FOR DENTAL OFFICERS.

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

[[Page S5835]]

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

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

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

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

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

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

[[Page S5836]]

     States Code, on or after the effective date of the 
     amendments.

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

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

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

       (a) Election To Discontinue Within One Year After Second 
     Anniversary of Commencement of Payment of Retired Pay.--(1) 
     Subchapter II of chapter 73 of title 10, United States Code, 
     is amended by inserting after section 1448 the following:

     ``Sec. 1448a. Election to discontinue participation: one-year 
       opportunity after second anniversary of commencement of 
       payment of retired pay

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

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

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

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

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

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

     SEC. 654. ANNUITIES FOR CERTAIN MILITARY SURVIVING SPOUSES.

       (a) Survivor Annuity.--(1) The Secretary concerned shall 
     pay an annuity to the qualified surviving spouse of each 
     member of the uniformed services who--
       (A) died before March 21, 1974, and was entitled to retired 
     or retainer pay on the date of death; or
       (B) was a member of a reserve component of the Armed Forces 
     during the period beginning on September 21, 1972, and ending 
     on October 1, 1978, and at the time of his death would have 
     been entitled to retired pay under chapter 67 of title 10, 
     United States Code (as in effect before December 1, 1994), 
     but for the fact that he was under 60 years of age.
       (2) A qualified surviving spouse for purposes of this 
     section is a surviving spouse who has not remarried and who 
     is not eligible for an annuity under section 4 of Public Law 
     92-425 (10 U.S.C. 1448 note).
       (b) Amount of Annuity.--(1) An annuity under this section 
     shall be paid at the rate of $165 per month, as adjusted from 
     time to time under paragraph (3).
       (2) An annuity paid to a surviving spouse under this 
     section shall be reduced by the amount of any dependency and 
     indemnity compensation (DIC) to which the surviving spouse is 
     entitled under section 1311(a) of title 38, United States 
     Code.
       (3) Whenever after the date of the enactment of this Act 
     retired or retainer pay is increased under section 
     1401a(b)(2) of title 10, United States Code, each annuity 
     that is payable under this section shall be increased at the 
     same time and by the same total percent. The amount of the 
     increase shall be

[[Page S5837]]

     based on the amount of the monthly annuity payable before any 
     reduction under this section.
       (c) Application Required.--No benefit shall be paid to any 
     person under this section unless an application for such 
     benefit is filed with the Secretary concerned by or on behalf 
     of such person.
       (d) Definitions.--For purposes of this section:
       (1) The terms ``uniformed services'' and ``Secretary 
     concerned'' have the meanings given such terms in section 101 
     of title 37, United States Code.
       (2) The term ``surviving spouse'' has the meaning given the 
     terms ``widow'' and ``widower'' in paragraphs (3) and (4) of 
     section 1447 of title 10, United States Code.
       (e) Prospective Applicability.--(1) Annuities under this 
     section shall be paid for months beginning after the month in 
     which this Act is enacted.
       (2) No benefit shall accrue to any person by reason of the 
     enactment of this section for any period before the first 
     month that begins after the month in which this Act is 
     enacted.
       (f) Expiration of Authority.--The authority to pay 
     annuities under this section shall expire on September 30, 
     2001.
                       Subtitle E--Other Matters

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

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

     ``Sec. 1204. Members on active duty for 30 days or less or on 
       inactive-duty training: retirement''.

       (2) The heading of section 1206 of such title is amended to 
     read as follows:

     ``Sec. 1206. Members on active duty for 30 days or less or on 
       inactive-duty training: separation''.

       (3) The table of sections at the beginning of chapter 61 of 
     such title is amended--
       (A) by striking out the item relating to section 1204 and 
     inserting in lieu thereof the following:

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

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

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

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

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

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

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

       (a) Authority.--Chapter 55 of title 10, United States Code, 
     is amended by adding at the end the following:

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

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

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

[[Page S5838]]

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

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

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

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

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

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

     SEC. 705. COLLECTION OF DENTAL INSURANCE PREMIUMS.

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

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

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

     SEC. 707. PROSTHETIC DEVICES FOR DEPENDENTS.

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

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

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

     SEC. 802. RESTRICTION ON UNDEFINITIZED CONTRACT ACTIONS.

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

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

       (a) Expanded Authority.--Section 2410a of title 10, United 
     States Code, is amended to read as follows:

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

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

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

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

       (a) Certain Compensation Not Allowable as Costs Under 
     Defense Contracts.--(1) Subsection (e)(1) of section 2324 of 
     title 10, United States Code, is amended by adding at the end 
     the following:
       ``(P) Costs of compensation of senior executives of 
     contractors for a fiscal year, to the extent that such 
     compensation exceeds the benchmark compensation amount 
     determined applicable for the fiscal year by the 
     Administrator for Federal Procurement Policy under section 39 
     of the Office of Federal Procurement Policy Act (41 U.S.C. 
     435).''.
       (2) Subsection (l) of such section is amended by adding at 
     the end the following:
       ``(4) The term `compensation', for a fiscal year, means the 
     total amount of wages, salary, bonuses and deferred 
     compensation for the fiscal year, whether paid, earned, or 
     otherwise accruing, as recorded in an employer's cost 
     accounting records for the fiscal year.
       ``(5) The term `senior executive', with respect to a 
     contractor, means--
       ``(A) the chief executive officer of the contractor or any 
     individual acting in a similar capacity for the contractor;
       ``(B) the five most highly compensated employees in 
     management positions of the contractor other than the chief 
     executive officer; and

[[Page S5839]]

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

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

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

``Sec. 39. Levels of compensation of certain contractor personnel not 
              allowable as costs under certain contracts.''.

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

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

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

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

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

     SEC. 807. ELIMINATION OF CERTIFICATION REQUIREMENT FOR 
                   GRANTS.

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

[[Page S5840]]

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

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

     SEC. 811. CONTRACTOR GUARANTEES OF MAJOR SYSTEMS.

       (a) Revision of Requirement.--Section 2403 of title 10, 
     United States Code, is amended to read as follows:

     ``Sec. 2403. Major systems: contractor guarantees

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

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

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

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

     SEC. 821. PROCUREMENT TECHNICAL ASSISTANCE PROGRAMS.

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

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

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

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

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

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

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

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

       (a) In General.--Chapter 141 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

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

       ``(a) Retention of Funds.--Notwithstanding sections 1552(a) 
     and 3302(b) of title 31, any amount, including interest, 
     collected from a contractor as a result of a claim made by an 
     executive agency under the Contract Disputes Act of 1978 (41 
     U.S.C. 601 et seq.), shall remain available in accordance 
     with this section to pay--
       ``(1) any settlement of the claim by the parties;
       ``(2) any judgment rendered in the contractor's favor on an 
     appeal of the decision on that claim to the Armed Services 
     Board of Contract Appeals under section 7 of such Act (41 
     U.S.C. 606); or
       ``(3) any judgment rendered in the contractor's favor in an 
     action on that claim in a court of the United States.
       ``(b) Period of Availability.--(1) The period of 
     availability of an amount under subsection (a), in connection 
     with a claim--
       ``(A) expires 180 days after the expiration of the period 
     for bringing an action on that claim in the United States 
     Court of Federal Claims under section 10(a) of the Contract 
     Disputes Act of 1978 (41 U.S.C. 609(a)) if, within that 180-
     day period--
       ``(i) no appeal on the claim in commenced at the Armed 
     Services Board of Contract Appeals under section 7 of the 
     Contract Disputes Act of 1978; and
       ``(ii) no action on the claim is commenced in a court of 
     the United States; or
       ``(B) if not expiring under subparagraph (A), expires--

[[Page S5841]]

       ``(i) in the case of a settlement of the claim, 180 days 
     after the date of the settlement; or
       ``(ii) in the case of a judgment rendered on the claim in 
     an appeal to the Armed Services Board of Contract Appeals 
     under section 7 of the Contract Disputes Act of 1978 or an 
     action in a court of the United States, 180 days after the 
     date on which the judgment becomes final and not appealable.
       ``(2) While available under this section, an amount may be 
     obligated or expended only for the purpose described in 
     subsection (a).
       ``(3) Upon the expiration of the period of availability of 
     an amount under paragraph (1), the amount shall be deposited 
     in the Treasury as miscellaneous receipts.
       ``(c) Reporting Requirement.--Each year, the Under 
     Secretary of Defense (Comptroller) shall submit to Congress a 
     report on the amounts, if any, that are available for 
     obligation pursuant to this section. The report shall 
     include, at a minimum, the following:
       ``(1) The total amount available for obligation.
       ``(2) The total amount collected from contractors during 
     the year preceding the year in which the report is submitted.
       ``(3) The total amount disbursed in such preceding year and 
     a description of the purpose for each disbursement.
       ``(4) The total amount returned to the Treasury in such 
     preceding year.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 141 of title 10, United States Code, is 
     amended by adding at the end the following new item:

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

     SEC. 832. PROTECTION OF CERTAIN INFORMATION FROM DISCLOSURE.

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

     SEC. 833. CONTENT OF LIMITED SELECTED ACQUISITION REPORTS.

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

     SEC. 834. UNIT COST REPORTS.

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

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

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

     SEC. 841. DEFENSE BUSINESS COMBINATIONS.

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

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

       (a) Authority.--Chapter 159 of title 10, United States 
     Code, is amended by inserting after section 2667 the 
     following:

     ``Sec. 2667a. Leases: non-excess property of Defense Agencies

       ``(a) Authority.--Whenever the Director of a Defense Agency 
     considers it advantageous to the United States, he may lease 
     to such lessee and upon such terms as he considers will 
     promote the national defense or to be in the public interest, 
     personal property that is--
       ``(1) under the control of the Defense Agency;
       ``(2) not for the time needed for public use; and
       ``(3) not excess property, as defined by section 3 of the 
     Federal Property and Administrative Services Act of 1949 (40 
     U.S.C. 472).
       ``(b) Limitation, Terms, and Conditions.--A lease under 
     subsection (a)--
       ``(1) may not be for more than five years unless the 
     Director of the Defense Agency concerned determines that a 
     lease for a longer period will promote the national defense 
     or be in the public interest;
       ``(2) may give the lessee the first right to buy the 
     property if the lease is revoked to allow the United States 
     to sell the property under any other provision of law;
       ``(3) shall permit the Director to revoke the lease at any 
     time, unless he determines that the omission of such a 
     provision will promote the national defense or be in the 
     public interest; and
       ``(4) may provide, notwithstanding any other provision of 
     law, for the improvement, maintenance, protection, repair, 
     restoration, or replacement by the lessee, of the property 
     leased as the payment of part or all of the consideration for 
     the lease.
       ``(c) Disposition of Money Rent.--Money rentals received 
     pursuant to leases entered into by the Director of a Defense 
     Agency

[[Page S5842]]

     under subsection (a) shall be deposited in a special account 
     in the Treasury established for such Defense Agency. Amounts 
     in a Defense Agency's special account shall be available, to 
     the extent provided in appropriations Acts, solely for the 
     maintenance, repair, restoration, or replacement of the 
     leased property.''.
       (b) Conforming Amendment.--The heading of section 2667 of 
     such title is amended to read as follows:

     ``Sec. 2667. Leases: non-excess property of military 
       departments''.

       (c) Clerical Amendment.--The table of sections at the 
     beginning of chapter 159 of such title is amended by striking 
     out the item relating to section 2667 and inserting in lieu 
     thereof the following:

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

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

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

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

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

     SEC. 902. PROFESSIONAL MILITARY EDUCATION SCHOOLS.

       (a) Component Institutions of the National Defense 
     University.--(1) Chapter 108 of title 10, United States Code, 
     is amended by adding at the end the following:

     ``Sec. 2165. National Defense University

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

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

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

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

     SEC. 904. TRANSFER OF TIARA PROGRAMS.

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

     SEC. 1001. TRANSFER AUTHORITY.

       (a) Authority To Transfer Authorizations.--(1) Upon 
     determination by the Secretary of Defense that such action is 
     necessary in the national interest, the Secretary may 
     transfer amounts of authorizations made available to the 
     Department of Defense in this division for fiscal year 1998 
     between any such authorizations for that fiscal year (or any 
     subdivisions thereof). Amounts of authorizations so 
     transferred shall be merged with and be available for the 
     same purposes as the authorization to which transferred.
       (2) The total amount of authorizations that the Secretary 
     of Defense may transfer under the authority of this section 
     may not exceed $2,500,000,000.
       (b) Limitations.--The authority provided by this section to 
     transfer authorizations--
       (1) may only be used to provide authority for items that 
     have a higher priority than the items from which authority is 
     transferred; and
       (2) may not be used to provide authority for an item that 
     has been denied authorization by Congress.
       (c) Effect on Authorization Amounts.--A transfer made from 
     one account to another under the authority of this section 
     shall be deemed to increase the amount authorized for the 
     account to which the amount is transferred by an amount equal 
     to the amount transferred.
       (d) Notice to Congress.--The Secretary shall promptly 
     notify Congress of each transfer made under subsection (a).

     SEC. 1002. AUTHORITY FOR OBLIGATION OF CERTAIN UNAUTHORIZED 
                   FISCAL YEAR 1997 DEFENSE APPROPRIATIONS.

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

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

       Amounts authorized to be appropriated to the Department of 
     Defense for fiscal year 1997 in the National Defense 
     Authorization Act for Fiscal Year 1997 (Public Law 104-201) 
     are hereby adjusted, with respect to any such authorized 
     amount, by the amount by which appropriations pursuant to 
     such authorization were increased (by a supplemental 
     appropriation) or decreased (by a rescission), or both, in 
     the 1997 Emergency Supplemental Appropriations Act for 
     Recovery from Natural Disasters, and for Overseas 
     Peacekeeping Efforts, Including Those in Bosnia (Public Law 
     105-18).

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

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

     SEC. 1005. BIENNIAL FINANCIAL MANAGEMENT STRATEGIC PLAN.

       (a) Biennial Plan.--(1) Chapter 23 of title 10, United 
     States Code, is amended by adding at the end the following:

     ``Sec. 483. Biennial financial management strategic plan

       ``(a) Plan Required.--Not later than September 30 of each 
     even-numbered year, the Secretary of Defense shall submit to 
     Congress a strategic plan to improve the financial management 
     within the Department of Defense. The strategic plan shall 
     address all aspects of financial management within the 
     Department of Defense, including the finance systems, 
     accounting systems, and

[[Page S5843]]

     feeder systems that support financial functions.
       ``(b) Definitions.--In this section, the term `feeder 
     system' means an automated or manual system that provides 
     input to a financial management or accounting system.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following:

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

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

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

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

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

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

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

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

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

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

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

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

       (a) Transfers by Sale.--The Secretary of the Navy is 
     authorized to transfer vessels to foreign countries on a sale 
     basis under section 21 of the Arms Export Control Act (22 
     U.S.C. 2761) as follows:
       (1) To the Government of Brazil, the submarine tender 
     Holland (AS 32) of the Hunley class.
       (2) To the Government of Chile, the oiler Isherwood (T-AO 
     191) of the Kaiser class.
       (3) To the Government of Egypt:
       (A) The following frigates of the Knox class:
       (i) The Paul (FF 1080).
       (ii) The Miller (FF 1091).
       (iii) The Jesse L. Brown (FFT 1089).
       (iv) The Moinester (FFT 1097).
       (B) The following frigates of the Oliver Hazard Perry 
     class:
       (i) The Fahrion (FFG 22).
       (ii) The Lewis B. Puller (FFG 23).
       (4) To the Government of Israel, the tank landing ship 
     Peoria (LST 1183) of the Newport class.
       (5) To the Government of Malaysia, the tank landing ship 
     Barbour County (LST 1195) of the Newport class.

[[Page S5844]]

       (6) To the Government of Mexico, the frigate Roark (FF 
     1053) of the Knox class.
       (7) To the Taipei Economic and Cultural Representative 
     Office in the United States (the Taiwan instrumentality that 
     is designated pursuant to section 10(a) of the Taiwan 
     Relations Act), the following frigates of the Knox class:
       (A) The Whipple (FF 1062).
       (B) The Downes (FF 1070).
       (8) To the Government of Thailand, the tank landing ship 
     Schenectady (LST 1185) of the Newport class.
       (b) Costs of Transfers.--Any expense incurred by the United 
     States in connection with a transfer authorized by subsection 
     (a) shall be charged to the recipient.
       (c) Repair and Refurbishment in United States Shipyards.--
     To the maximum extent practicable, the Secretary of the Navy 
     shall require, as a condition of the transfer of a vessel 
     under this section, that the country to which the vessel is 
     transferred have such repair or refurbishment of the vessel 
     as is needed, before the vessel joins the naval forces of 
     that country, performed at a shipyard located in the United 
     States, including a United States Navy shipyard.
       (d) Expiration of Authority.--The authority to transfer a 
     vessel under subsection (a) shall expire at the end of the 2-
     year period beginning on the date of the enactment of this 
     Act.
                  Subtitle C--Counter-Drug Activities

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

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

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

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

     SEC. 1031. REPEAL OF REPORTING REQUIREMENTS.

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

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

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

     SEC. 1033. REPORT ON OVERSEAS DEPLOYMENT.

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

[[Page S5845]]

       (B) the number engaged in United States military joint 
     exercises; and
       (C) the number engaged in training with allied units.
       (3) The number of personnel deployed overseas on each date 
     who were engaged in contingency operations (including 
     peacekeeping or humanitarian assistance missions) or other 
     activities.

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

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

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

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

[[Page S5846]]

     of the Armed Forces as a result of the modifications.
       (5) An assessment whether or not the risks of diminished 
     military capability associated with implementation of the 
     readiness posture exceed the risks of diminished military 
     capability associated with the modifications of the current 
     force structure necessary to achieve cost savings equivalent 
     to the best case for cost savings resulting from the 
     implementation of the readiness posture.
       (d) Form of Report.--The report under this section shall be 
     submitted in unclassified form, but may contain a classified 
     annex.
       (e) Definitions.--In this section:
       (1) The term ``state of high readiness'', in the case of a 
     military force, means the capability to mobilize first-to-
     arrive units of the force within 18 hours and last-to-arrive 
     units within 120 days of a particular event.
       (2) The term ``state of low readiness'', in the case of a 
     military force, means the capability to mobilize first-to-
     arrive units within 90 days and last-to-arrive units within 
     180 days of a particular event.

     SEC. 1036. OVERSEAS INFRASTRUCTURE REQUIREMENTS.

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

     SEC. 1037. REPORT ON AIRCRAFT INVENTORY.

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

     SEC. 1038. DISPOSAL OF EXCESS MATERIALS.

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

     SEC. 1039. REVIEW OF FORMER SPOUSE PROTECTIONS.

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

[[Page S5847]]

     legislation that the Secretary considers appropriate.

     SEC. 1040. COMPLETION OF GAO REPORTS FOR CONGRESS.

       (a) Priority.--(1) Subchapter II of chapter 7 of title 31, 
     United States Code, is amended by adding at the end the 
     following:

     ``Sec. 721. Priority for completion of certain audits, 
       evaluations, other reviews, and reports

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


``721. Priority for completion of certain audits, evaluations, other 
              reviews, and reports.''.

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

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

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

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

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

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

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

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

       (a) Funding Limitation.--Funds available to the Department 
     of Defense may not be obligated or expended during fiscal 
     year 1998 for retiring or dismantling, or for preparing to 
     retire or dismantle, any of the following strategic nuclear 
     delivery systems below the specified levels:
       (1) 71 B-52H bomber aircraft.
       (2) 18 Trident ballistic missile submarines.
       (3) 500 Minuteman III intercontinental ballistic missiles.
       (4) 50 Peacekeeper intercontinental ballistic missiles.
       (b) Waiver Authority.--If the START II Treaty enters into 
     force during fiscal year 1997 or fiscal year 1998, the 
     Secretary of Defense may waive the application of the 
     limitation under subsection (a) to the extent that the 
     Secretary determines necessary in order to implement the 
     treaty.
       (c) Funding Limitation on Early Deactivation.--(1) If the 
     limitation under subsection (a) ceases to apply by reason of 
     a waiver under subsection (b), funds available to the 
     Department of Defense may nevertheless not be obligated or 
     expended during fiscal year 1998 to implement any agreement 
     or understanding to undertake substantial early deactivation 
     of a strategic nuclear delivery system specified in 
     subsection (a) until 30 days after the date on which the 
     President submits to Congress a report concerning such 
     actions.
       (2) For purposes of this subsection, a substantial early 
     deactivation is an action during fiscal year 1998 to 
     deactivate a substantial number of strategic nuclear delivery 
     systems specified in subsection (a) by--
       (A) removing nuclear warheads from those systems; or
       (B) taking other steps to remove those systems from combat 
     status.
       (3) A report under this subsection shall include the 
     following:
       (A) The text of any understanding or agreement between the 
     United States and the Russian Federation concerning 
     substantial early deactivation of strategic nuclear delivery 
     systems under the START II Treaty.
       (B) The plan of the Department of Defense for implementing 
     the agreement.

[[Page S5848]]

       (C) An assessment of the Secretary of Defense of the 
     adequacy of the provisions contained in the agreement for 
     monitoring and verifying compliance of Russia with the terms 
     of the agreement.
       (D) A determination by the President as to whether the 
     deactivations to occur under the agreement will be carried 
     out in a symmetrical, reciprocal, or equivalent manner.
       (E) An assessment by the President of the effect of the 
     proposed early deactivation on the stability of the strategic 
     balance and relative strategic nuclear capabilities of the 
     United States and the Russian Federation at various stages 
     during deactivation and upon completion.
       (d) Contingency Plan for Sustainment of Systems.--(1) Not 
     later then February 15, 1998, the Secretary of Defense shall 
     submit to the congressional defense committees a plan for the 
     sustainment beyond October 1, 1999, of United States 
     strategic nuclear delivery systems and alternative Strategic 
     Arms Reduction Treaty force structures in the event that a 
     strategic arms reduction agreement subsequent to the 
     Strategic Arms Reduction Treaty does not enter into force 
     before 2004.
       (2) The plan shall include a discussion of the following 
     matters:
       (A) The actions that are necessary to sustain the United 
     States strategic nuclear delivery systems, distinguishing 
     between the actions that are planned for and funded in the 
     future-years defense program and the actions that are not 
     planned for and funded in the future-years defense program.
       (B) The funding necessary to implement the plan, indicating 
     the extent to which the necessary funding is provided for in 
     the future-years defense program and the extent to which the 
     necessary funding is not provided for in the future-years 
     defense program.
       (e) START Treaties Defined.--In this section:
       (1) The term ``Strategic Arms Reduction Treaty'' means the 
     Treaty Between the United States of America and the United 
     Soviet Socialist Republics on the Reduction and Limitation of 
     Strategic Offensive Arms (START), signed at Moscow on July 
     31, 1991, including related annexes on agreed statements and 
     definitions, protocols, and memorandum of understanding.
       (2) The term ``START II Treaty'' means the Treaty Between 
     the United States of America and the Russian Federation on 
     Further Reduction and Limitation of Strategic Offensive Arms, 
     signed at Moscow on January 3, 1993, including the following 
     protocols and memorandum of understanding, all such documents 
     being integral parts of and collectively referred to as the 
     ``START II Treaty'' (contained in Treaty Document 103-1):
       (A) The Protocol on Procedures Governing Elimination of 
     Heavy ICBMs and on Procedures Governing Conversion of Silo 
     Launchers of Heavy ICBMs Relating to the Treaty Between the 
     United States of America and the Russian Federation on 
     Further Reduction and Limitation of Strategic Offensive Arms 
     (also known as the ``Elimination and Conversion Protocol'').
       (B) The Protocol on Exhibitions and Inspections of Heavy 
     Bombers Relating to the Treaty Between the United States and 
     the Russian Federation on Further Reduction and Limitation of 
     Strategic Offensive Arms (also known as the ``Exhibitions and 
     Inspections Protocol'').
       (C) The Memorandum of Understanding on Warhead Attribution 
     and Heavy Bomber Data Relating to the Treaty Between the 
     United States of America and the Russian Federation on 
     Further Reduction and Limitation of Strategic Offensive Arms 
     (also known as the ``Memorandum on Attribution'').

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

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

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

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

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

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

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

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

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

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

[[Page S5849]]

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

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

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

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

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

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

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

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

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

       (a) Findings.--Congress makes the following findings:
       (1) The Global Positioning System, with its multiple uses, 
     makes significant contributions to the attainment of the 
     national security and foreign policy goals of the United 
     States, the safety and efficiency of international 
     transportation, and the economic growth, trade, and 
     productivity of the United States.
       (2) The infrastructure for the Global Positioning System, 
     including both space and ground segments of the 
     infrastructure, is vital to the effectiveness of United 
     States and allied military forces and to the protection of 
     the national security interests of the United States.
       (3) In addition to having military uses, the Global 
     Positioning System has essential civil, commercial, and 
     scientific uses.
       (4) Driven by the increasing demand of civil, commercial, 
     and scientific users of the Global Positioning System--
       (A) there has emerged in the United States a new commercial 
     industry to provide Global Positioning System equipment and 
     related services to the many and varied users of the system; 
     and
       (B) there have been rapid technical advancements in Global 
     Positioning System equipment and services that have 
     contributed significantly to reductions in the cost of the 
     Global Positioning System and increases in the technical 
     capabilities and availability of the system for military 
     uses.
       (5) It is in the national interest of the United States for 
     the United States--
       (A) to support continuation of the multiple-use character 
     of the Global Positioning System;
       (B) to promote broader acceptance and use of the Global 
     Positioning System and the technological standards that 
     facilitate expanded use of the system for civil purposes;
       (C) to coordinate with other countries to ensure--
       (i) efficient management of the electromagnetic spectrum 
     utilized for the Global Positioning System; and
       (i) protection of that spectrum in order to prevent 
     disruption of, and interference with, signals from the 
     system; and
       (D) to encourage open access in all international markets 
     to the Global Positioning System and supporting equipment, 
     services, and techniques.
       (b) Sustainment and Operation for Military Purposes.--The 
     Secretary of Defense shall--
       (1) provide for the sustainment of the Global Positioning 
     System capabilities, and the operation of basic Global 
     Positioning System services, that are beneficial for the 
     national security interests of United States;
       (2) develop appropriate measures for preventing hostile use 
     of the Global Positioning System that make it unnecessary to 
     use the selective availability feature of the system 
     continuously and do not hinder the use of the Global 
     Positioning System by the United States and its allies for 
     military purposes; and
       (3) ensure that United States military forces have the 
     capability to use the Global Positioning System effectively 
     despite hostile attempts to prevent the use of the system by 
     such forces.
       (c) Sustainment and Operation for Civilian Purposes.--The 
     Secretary of Defense shall--
       (1) provide for the sustainment and operation of basic 
     Global Positioning System services for peaceful civil, 
     commercial, and scientific uses on a continuous worldwide 
     basis free of direct user fees;
       (2) provide for the sustainment and operation of basic 
     Global Positioning System services in order to meet the 
     performance requirements of the Federal Radionavigation Plan 
     jointly issued by the Secretary of Defense and the Secretary 
     of Transportation;
       (3) coordinate with the Secretary of Transportation 
     regarding the development and implementation by the Federal 
     Government of

[[Page S5850]]

     augmentations to the basic Global Positioning System that 
     achieve or enhance uses of the system in support of 
     transportation;
       (4) coordinate with the Secretary of Commerce, the United 
     States Trade Representative, and other appropriate officials 
     to facilitate the development of new and expanded civil uses 
     for the Global Positioning System; and
       (5) develop measures for preventing hostile use of the 
     Global Positioning System in a particular area without 
     hindering peaceful civil use of the system elsewhere.
       (d) Federal Radionavigation Plan.--The Secretary of Defense 
     and the Secretary of Transportation shall continue to prepare 
     the Federal Radionavigation Plan every two years as 
     originally provided for in the International Maritime 
     Satellite Telecommunications Act (title V of the 
     Communications Satellite Act of 1962; 47 U.S.C. 751 et seq.).
       (e) International Cooperation.--Congress urges the 
     President to promote the security of the United States and 
     its allies, the public safety, and commercial interests by--
       (1) undertaking a coordinated effort within the executive 
     branch to seek to establish the Global Positioning System, 
     and augmentations to the system, as a worldwide resource;
       (2) seeking to enter into international agreements to 
     establish signal and service standards that protect the 
     Global Positioning System from disruption and interference; 
     and
       (3) undertaking efforts to eliminate any barriers to, and 
     other restrictions of foreign governments on, peaceful uses 
     of the Global Positioning System.
       (f) Prohibition of Support of Foreign System.--None of the 
     funds authorized to be appropriated under this Act may be 
     used to support the operation and maintenance or enhancement 
     of any satellite navigation system operated by a foreign 
     country.
       (g) Report.--(1) Not later than 30 days after the end of 
     each even numbered fiscal year (beginning with fiscal year 
     1998), the Secretary of Defense shall submit to the 
     Committees on Armed Services and on Appropriations on the 
     Senate and the Committees on National Security and on 
     Appropriations of the House of Representatives a report on 
     the Global Positioning System. The report shall include a 
     discussion of the following matters:
       (A) The operational status of the Global Positioning 
     System.
       (B) The capability of the system to satisfy effectively--
       (i) the military requirements for the system that are 
     current as of the date of the report; and
       (ii) the performance requirements of the Federal 
     Radionavigation Plan.
       (C) The most recent determination by the President 
     regarding continued use of the selective availability feature 
     of the Global Positioning System and the expected date of any 
     change or elimination of use of that feature.
       (D) The status of cooperative activities undertaken by the 
     United States with the governments of other countries 
     concerning the capability of the Global Positioning System or 
     any augmentation of the system to satisfy civil, commercial, 
     scientific, and military requirements, including a discussion 
     of the status and results of activities undertaken under any 
     regional international agreement.
       (E) Any progress made toward establishing the Global 
     Positioning System as an international standard for 
     consistency of navigational service.
       (F) Any progress made toward protecting the Global 
     Positioning System from disruption and interference.
       (G) The effects of use of the Global Positioning System on 
     national security, regional security, and the economic 
     competitiveness of United States industry, including the 
     Global Positioning System equipment and service industry and 
     user industries.
       (2) In preparing the parts of the report required under 
     subparagraphs (D), (E), (F), and (G) of paragraph (1), the 
     Secretary of Defense shall consult with the Secretary of 
     Commerce, Secretary of Transportation, and Secretary of 
     Labor.
       (h) Basic Global Positioning System Services Defined.--In 
     this section, the term ``basic global positioning system 
     services'' means the following components of the Global 
     Positioning System that are operated and maintained by the 
     Department of Defense:
       (1) The constellation of satellites.
       (2) The navigation payloads that produce the Global 
     Positioning System signals.
       (3) The ground stations, data links, and associated command 
     and control facilities.

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

       (a) Authority.--Chapter 81 of title 10, United States Code, 
     is amended by inserting after section 1585 the following new 
     section:

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

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

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

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

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

     SEC. 1067. POW/MIA INTELLIGENCE ANALYSIS CELL.

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

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

       (a) Disclosures to Officials Cleared for Access.--Section 
     2302(b) of title 5, United States Code, is amended--
       (1) in paragraph (8)--
       (A) by striking out ``or'' at the end of subparagraph (A);
       (B) by inserting ``or'' at the end of subparagraph (B)(ii); 
     and
       (C) by adding at the end the following:
       ``(C) a disclosure by an employee or applicant of 
     information required by law or Executive order to be kept 
     secret in the interest of national defense or the conduct of 
     foreign affairs which the employee or applicant reasonably 
     believes to provide direct and specific evidence of--
       ``(i) a violation of any law, rule, or regulation,
       ``(ii) gross mismanagement, a gross waste of funds, abuse 
     of authority, or a substantial and specific danger to public 
     health or safety, or
       ``(iii) a false statement to Congress on an issue of 
     material fact,

     if the disclosure is made to a member of a committee of 
     Congress having a primary responsibility for oversight of a 
     department, agency, or element of the Federal Government to 
     which the disclosed information relates, to any other Member 
     of Congress who is authorized to receive information of the 
     type disclosed, or to an employee of the executive branch or 
     Congress who has the appropriate security clearance for 
     access to the information disclosed;''; and
       (2) by striking out the matter following paragraph (11).
       (b) Dissemination of Information on New Protection.--Not 
     later than 30 days after the date of the enactment of this 
     Act, the President shall--
       (1) take such action as is necessary to ensure that 
     employees of the executive branch

[[Page S5851]]

     having access to classified information receive notice that 
     the disclosure of such information to Congress is not 
     prohibited by law, executive order, or regulation, and is not 
     otherwise contrary to public policy when the information is 
     disclosed under the circumstances described in subparagraph 
     (C) of section 2302(b)(8) of title 5, United States Code (as 
     added by subsection (a)); and
       (2) submit to Congress a report on the actions taken to 
     carry out paragraph (1).
       (c) Effective Date and Applicability.--The amendments made 
     by subsection (a) shall take effect on October 1, 1998, and 
     shall apply to a taking, failing to take, or threat to take 
     or fail to take a personnel action on or after such date 
     because of a disclosure described in subparagraph (C) of 
     section 2302(b)(8) of title 5, United States Code (as added 
     by subsection (a)), that is made before, on, or after such 
     date.

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

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

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

       (a) Authority.--The Secretary of the Air Force may convey, 
     without consideration, to the Planes of Fame Museum, Chino, 
     California (hereafter in this section referred to as the 
     ``museum''), all right, title, and interest of the United 
     States in and to the B-17 aircraft known as the ``Picadilly 
     Lilly'', an aircraft that has been in the possession of the 
     museum since 1959.
       (b) Condition of Aircraft.--Before conveying ownership of 
     the aircraft, the Secretary shall alter the aircraft as 
     necessary to ensure that the aircraft does not have any 
     capability for use as a platform for launching or releasing 
     munitions or any other combat capability that it was designed 
     to have. The Secretary is not required to repair or alter the 
     condition of the aircraft in any other way before conveying 
     the ownership.
       (c) Condition for Conveyance.--A conveyance of ownership of 
     the aircraft under this section shall be subject to the 
     condition that the museum not convey any ownership interest 
     in, or transfer possession of, the aircraft to any other 
     party without the advance approval of the Secretary of the 
     Air Force.
       (d) Reversion.--If the Secretary of the Air Force 
     determines at any time that the museum has conveyed an 
     ownership interest in, or transferred possession of, the 
     aircraft to any other party without the advance approval of 
     the Secretary, all right, title, and interest in and to the 
     aircraft, including any repairs or alterations of the 
     aircraft, shall revert to the United States, and the United 
     States shall have the right of immediate possession of the 
     aircraft.
       (e) Additional Terms and Conditions.--The Secretary of the 
     Air Force may require such additional terms and conditions in 
     connection with the conveyance under this section as the 
     Secretary considers appropriate to protect the interests of 
     the United States.
       (f) Clarification of Liability.--Notwithstanding any other 
     provision of law, the United States shall not be liable for 
     any death, injury, loss, or damages that result from any use 
     of the aircraft conveyed under this section by any person 
     other than the United States after the conveyance is 
     complete.

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

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

     SEC. 1072. TREATMENT OF MILITARY FLIGHT OPERATIONS.

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

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

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

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

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

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

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

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

       (a) Expanded Authority.--Subsections (a) and (c) of section 
     7478 of title 10, United States Code, are amended by striking 
     out ``the Marine Corps Command and Staff College'' and 
     inserting in lieu thereof ``a school of the Marine Corps 
     University''.

[[Page S5852]]

       (b) Clerical Amendments.--(1) The heading of such section 
     is amended to read as follows:

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

       (2) The table of sections at the beginning of chapter 643 
     of such title is amended by striking out the item relating to 
     section 7478 and inserting in lieu thereof the following new 
     item:

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

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

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

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

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

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

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

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

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


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

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

     SEC. 2001. SHORT TITLE.

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

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

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

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

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

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

     SEC. 2102. FAMILY HOUSING.

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

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

[[Page S5853]]

 
                                        Fort Hood................  130 Units....................     $18,800,000
                                                                                                 ---------------
                                                                     Total:.....................    $120,450,000
----------------------------------------------------------------------------------------------------------------

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

     SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

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

     SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

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

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

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

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

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

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

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

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

     SEC. 2202. FAMILY HOUSING.

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

[[Page S5854]]



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

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

     SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

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

     SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

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

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

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

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

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

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

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

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

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

                  Air Force: Outside the United States
------------------------------------------------------------------------
                                       Installation or
              Country                     location            Amount
------------------------------------------------------------------------
Germany...........................  Spangdahlem Air Base     $18,500,000
Italy.............................  Aviano Air Base.....     $15,220,000
Korea.............................  Kunsan Air Base.....     $10,325,000

[[Page S5855]]

 
Portugal..........................  Lajes Field, Azores.      $4,800,000
United Kingdom....................  Royal Air Force,         $11,400,000
                                     Lakenheath.
Overseas Classified...............  Classified Location.     $29,100,000
                                                         ---------------
                                      Total:............     $89,345,000
------------------------------------------------------------------------

     SEC. 2302. FAMILY HOUSING.

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

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

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

     SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

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

     SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

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

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

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

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

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

               Defense Agencies: Inside the United States
------------------------------------------------------------------------
                                       Installation or
              Agency                      location            Amount
------------------------------------------------------------------------
Defense Commissary Agency.........  Fort Lee, Virginia..      $9,300,000
Defense Finance & Accounting        Naval Station, Pearl     $10,000,000
 Service.                            Harbor, Hawaii.....
                                    Columbus Center,          $9,722,000
                                     Ohio...............
                                    Naval Air Station,        $6,906,000
                                     Millington,
                                     Tennessee..........
                                    Naval Station,           $12,800,000
                                     Norfolk, Virginia..
Defense Intelligence Agency.......  Redstone Arsenal,        $32,700,000
                                     Alabama............
                                    Bolling Air Force         $7,000,000
                                     Base, District of
                                     Columbia...........
Defense Logistics Agency..........  Elmendorf Air Force      $21,700,000
                                     Base, Alaska.......
                                    Naval Air Station,        $9,800,000
                                     Jacksonville,
                                     Florida............
                                    Westover Air Reserve      $4,700,000
                                     Base, Massachusetts
                                    Defense Distribution     $15,500,000
                                     New Cumberland--
                                     DDSP, Pennsylvania.
                                    Defense Distribution     $16,656,000
                                     Depot--DDNV,
                                     Virginia...........
                                    Defense Fuel Support     $22,100,000
                                     Point, Craney
                                     Island, Virginia...
                                    Defense General           $5,200,000
                                     Supply Center,
                                     Richmond, Virginia.
                                    Defense Fuel Support      $4,500,000
                                     Center, Truax
                                     Field, Wisconsin...
                                    CONUS Various, CONUS     $11,275,000
                                     Various............
Defense Medical Facility Office...  Naval Station, San        $2,100,000
                                     Diego, California..
                                    Naval Submarine           $2,300,000
                                     Base, New London,
                                     Connecticut........

[[Page S5856]]

 
                                    Naval Air Station,        $2,750,000
                                     Pensacola, Florida.
                                    Robins Air Force         $19,000,000
                                     Base, Georgia......
                                    Fort Campbell,           $13,600,000
                                     Kentucky...........
                                    Fort Detrick,             $4,650,000
                                     Maryland...........
                                    McGuire Air Force        $35,217,000
                                     Base, New Jersey...
                                    Holloman Air Force        $3,000,000
                                     Base, New Mexico...
                                    Wright-Patterson Air      $2,750,000
                                     Force Base, Ohio...
                                    Lackland Air Force        $3,000,000
                                     Base, Texas........
                                    Hill Air Force Base,      $3,100,000
                                     Utah...............
                                    Marine Corps Combat      $19,000,000
                                     Development
                                     Command, Quantico,
                                     Virginia...........
                                    Naval Station,            $7,500,000
                                     Everett, Washington
National Security Agency..........  Fort Meade, Maryland     $29,800,000
Special Operations Command........  Naval Amphibious          $7,400,000
                                     Base, North Island,
                                     California.........
                                    Eglin Auxiliary          $11,200,000
                                     Field 3, Florida...
                                    Hurlburt Field,           $2,450,000
                                     Florida............
                                    Fort Benning,             $9,814,000
                                     Georgia............
                                    Hunter Army Air           $2,500,000
                                     Field, Fort
                                     Stewart, Georgia...
                                    Naval Station, Pearl      $7,400,000
                                     Harbor, Hawaii.....
                                    Mississippi Army          $9,900,000
                                     Ammunition Plant,
                                     Mississippi........
                                    Fort Bragg, North         $9,800,000
                                     Carolina...........
                                                         ---------------
                                      Total:............    $408,090,000
------------------------------------------------------------------------

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

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

     SEC. 2402. MILITARY HOUSING PLANNING AND DESIGN.

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

     SEC. 2403. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

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

     SEC. 2404. ENERGY CONSERVATION PROJECTS.

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

     SEC. 2405. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

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

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

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

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

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

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

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

[[Page S5857]]

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

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

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

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

     SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.

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

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

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

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

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

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

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

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

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

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


  


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


  


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


  

[[Page S5858]]




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


  


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


  


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

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

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

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

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

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

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

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

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

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


[[Page S5859]]

     SEC. 2706. EFFECTIVE DATE.

       Titles XXI, XXII, XXIII, XXIV, XXV, and XXVI shall take 
     effect on the later of--
       (1) October 1, 1997; or
       (2) the date of the enactment of this Act.
                    TITLE XXVIII--GENERAL PROVISIONS
 Subtitle A--Military Construction Program and Military Family Housing 
                                Changes

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

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

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

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

     ``Sec. 2695. Sale of utility systems

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

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

       (a) In General.--(1) Chapter 159 of title 10, United States 
     Code, as amended by section 2802 of this Act, is further 
     amended by adding at the end the following:

     ``Sec. 2696. Administrative expenses relating to certain real 
       property transactions

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

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

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

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

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

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

[[Page S5860]]

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

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

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

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

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

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

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

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

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

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

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

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

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

       (a) Conveyance Authorized.--The Secretary of the Air Force 
     may convey, without consideration, to the Greater Box Elder 
     Area Economic Development Corporation, Box Elder, South 
     Dakota (in this section referred to as the ``Corporation''), 
     all right, title, and

[[Page S5861]]

     interest of the United States in and to the parcels of real 
     property located at Ellsworth Air Force Base, South Dakota, 
     referred to in subsection (b).
       (b) Covered Property.--(1) Subject to paragraph (2), the 
     real property referred to in subsection (a) is the following:
       (A) A parcel of real property, together with any 
     improvements thereon, consisting of approximately 53.32 acres 
     and comprising the Skyway Military Family Housing Area.
       (B) A parcel of real property, together with any 
     improvements thereon, consisting of approximately 137.56 
     acres and comprising the Renal Heights Military Family 
     Housing Area.
       (C) A parcel of real property, together with any 
     improvements thereon, consisting of approximately 14.92 acres 
     and comprising the East Nike Military Family Housing Area.
       (D) A parcel of real property, together with any 
     improvements thereon, consisting of approximately 14.69 acres 
     and comprising the South Nike Military Family Housing Area.
       (E) A parcel of real property, together with any 
     improvements thereon, consisting of approximately 14.85 acres 
     and comprising the West Nike Military Family Housing Area.
       (2) The real property referred to in subsection (a) does 
     not include the portion of the real property referred to in 
     paragraph (1)(B) that the Secretary determines to be required 
     for the construction of an access road between the main gate 
     of Ellsworth Air Force Base and an interchange on Interstate 
     Route 90 located in the vicinity of mile marker 67 in South 
     Dakota.
       (c) Conditions of Conveyance.--The conveyance of the real 
     property referred to in subsection (b) shall be subject to 
     the following conditions:
       (1) That the Corporation, and any person or entity to which 
     the Corporation transfers the property, comply in the use of 
     the property with the applicable provisions of the Ellsworth 
     Air Force Base Air Installation Compatible Use Zone Study.
       (2) That the Corporation convey a portion of the real 
     property referred to in paragraph (1)(A) of that subsection, 
     together with any improvements thereon, consisting of 
     approximately 20 acres to the Douglas School District, South 
     Dakota, for use for education purposes.
       (d) Reversionary Interest.--If the Secretary determines 
     that any portion of the real property conveyed under 
     subsection (a) is not being utilized in accordance with the 
     applicable provision of subsection (c), all right, title, and 
     interest in and to that portion of the real property shall 
     revert to the United States, and the United States shall have 
     the right of immediate entry thereon.
       (e) Legal Description.--The exact acreage and legal 
     description of the property conveyed under subsection (a) 
     shall be determined by a survey satisfactory to the 
     Secretary. The cost of the survey shall be borne by the 
     Corporation.
       (f) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.
                       Subtitle C--Other Matters

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

       Notwithstanding the provisions of section 204(h)(2)(A) of 
     the Federal Property and Administrative Services Act of 1949 
     (40 U.S.C. 485(h)(2)(A)), the entire amount deposited by the 
     Administrator of General Services in the account in the 
     Treasury under section 204 of that Act as a result of the 
     sale of Air Force Plant No. 78, Brigham City, Utah, shall be 
     available to the Secretary of the Air Force for maintenance 
     and repair of facilities, or environmental restoration, at 
     other industrial plants of the Air Force.
 DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND 
                          OTHER AUTHORIZATIONS
      TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS
         Subtitle A--National Security Programs Authorizations

     SEC. 3101. WEAPONS ACTIVITIES.

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

     SEC. 3102. ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT.

       (a) Environmental Restoration.--Funds are hereby authorized 
     to be appropriated to the Department of Energy for fiscal 
     year 1998 for environmental restoration in carrying out 
     environmental restoration and waste management activities 
     necessary for national security programs in the amount of 
     $1,748,073,000.
       (b) Waste Management.--Funds are hereby authorized to be 
     appropriated to the Department of Energy for fiscal year 1998 
     for waste management in carrying out environmental 
     restoration and waste management activities necessary for 
     national security programs in the amount of $1,559,644,000, 
     to be allocated as follows:
       (1) For operation and maintenance, $1,478,876,000.
       (2) For plant projects (including maintenance, restoration, 
     planning, construction, acquisition, modification of 
     facilities, and the continuation of projects authorized in 
     prior years, and land acquisition related thereto), 
     $80,768,000, to be allocated as follows:
       Project 98-D-401, H-tank farm storm water systems upgrade, 
     Savannah River Site, Aiken, South Carolina, $1,000,000.
       Project 97-D-402, tank farm restoration and safe 
     operations, Richland, Washington, $13,961,000.
       Project 96-D-408, waste management upgrades, various 
     locations, $8,200,000.
       Project 95-D-402, install permanent electrical service, 
     Waste Isolation Pilot Plant, Carlsbad, New Mexico, $176,000.
       Project 95-D-405, industrial landfill V and construction/
     demolition landfill VII, Y-12 Plant, Oak Ridge, Tennessee, 
     $3,800,000.
       Project 95-D-407, 219-S secondary containment upgrade, 
     Richland, Washington, $2,500,000.
       Project 94-D-404, Melton Valley storage tank capacity 
     increase, Oak Ridge National Laboratory, Oak Ridge, 
     Tennessee, $1,219,000.
       Project 94-D-407, initial tank retrieval systems, Richland, 
     Washington, $15,100,000.

[[Page S5862]]

       Project 93-D-187, high-level waste removal from filled 
     waste tanks, Savannah River Site, Aiken, South Carolina, 
     $17,520,000.
       Project 92-D-172, hazardous waste treatment and processing 
     facility, Pantex Plant, Amarillo, Texas, $5,000,000.
       Project 89-D-174, replacement high-level waste evaporator, 
     Savannah River Site, Aiken, South Carolina, $1,042,000.
       Project 86-D-103, decontamination and waste treatment 
     facility, Lawrence Livermore National Laboratory, Livermore, 
     California, $11,250,000.
       (c) Technology Development.--Funds are hereby authorized to 
     be appropriated to the Department of Energy for fiscal year 
     1998 for technology development in carrying out environmental 
     restoration and waste management activities necessary for 
     national security programs in the amount of $252,881,000.
       (d) Nuclear Material and Facility Stabilization.--Funds are 
     hereby authorized to be appropriated to the Department of 
     Energy for fiscal year 1998 for nuclear material and facility 
     stabilization in carrying out environmental restoration and 
     waste management activities necessary for national security 
     programs in the amount of $1,265,481,000, to be allocated as 
     follows:
       (1) For operation and maintenance, $1,181,114,000.
       (2) For plant projects (including maintenance, restoration, 
     planning, construction, acquisition, modification of 
     facilities, and the continuation of projects authorized in 
     prior years, and land acquisition related thereto), 
     $84,367,000, to be allocated as follows:
       Project 98-D-453, plutonium stabilization and handling 
     system for plutonium finishing plant, Richland, Washington, 
     $8,136,000.
       Project 98-D-700, road rehabilitation, Idaho National 
     Engineering and Environmental Laboratory, Idaho, $500,000.
       Project 97-D-450, actinide packaging and storage facility, 
     Savannah River Site, Aiken, South Carolina, $18,000,000.
       Project 97-D-451, B-Plant safety class ventilation 
     upgrades, Richland, Washington, $2,000,000.
       Project 97-D-470, environmental monitoring laboratory, 
     Savannah River Site, Aiken, South Carolina, $5,600,000.
       Project 97-D-473, health physics site support facility, 
     Savannah River Site, Aiken, South Carolina, $4,200,000.
       Project 96-D-406, spent nuclear fuels canister storage and 
     stabilization facility, Richland, Washington, $16,744,000.
       Project 96-D-461, electrical distribution upgrade, Idaho 
     National Engineering and Environmental Laboratory, Idaho, 
     $2,927,000.
       Project 96-D-464, electrical and utility systems upgrade, 
     Idaho Chemical Processing Plant, Idaho National Engineering 
     and Environmental Laboratory, Idaho, $14,985,000.
       Project 96-D-471, chlorofluorocarbon heating, ventilation, 
     and air conditioning and chiller retrofit, Savannah River 
     Site, Aiken, South Carolina, $8,500,000.
       Project 95-D-155, upgrade site road infrastructure, 
     Savannah River Site, Aiken, South Carolina, $2,173,000.
       Project 95-D-456, security facilities consolidation, Idaho 
     Chemical Processing Plant, Idaho National Engineering and 
     Environmental Laboratory, Idaho, $602,000.
       (e) Policy and Management.--Funds are hereby authorized to 
     be appropriated to the Department of Energy for fiscal year 
     1998 for policy and management in carrying out environmental 
     restoration and waste management activities necessary for 
     national security programs in the amount of $18,104,000.
       (f) Environmental Management Science Program.--Funds are 
     hereby authorized to be appropriated to the Department of 
     Energy for fiscal year 1998 for environmental science and 
     risk policy in carrying out environmental restoration and 
     waste management activities necessary for national security 
     programs in the amount of $40,000,000.
       (g) Program Direction.--Funds are hereby authorized to be 
     appropriated to the Department of Energy for fiscal year 1998 
     for program direction in carrying out environmental 
     restoration and waste management activities necessary for 
     national security programs in the amount of $373,251,000.

     SEC. 3103. OTHER DEFENSE ACTIVITIES.

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

     SEC. 3104. DEFENSE ENVIRONMENTAL MANAGEMENT PRIVATIZATION.

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

     SEC. 3105. DEFENSE NUCLEAR WASTE DISPOSAL.

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

     SEC. 3121. REPROGRAMMING.

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

     SEC. 3122. LIMITS ON GENERAL PLANT PROJECTS.

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

     SEC. 3123. LIMITS ON CONSTRUCTION PROJECTS.

       (a) In General.--(1) Except as provided in paragraph (2), 
     construction on a construction project may not be started or 
     additional obligations incurred in connection with the 
     project above the total estimated cost, whenever the current 
     estimated cost of the construction project, which is 
     authorized by sections 3101, 3102, or 3103, or which is in 
     support of national security programs of the Department of 
     Energy and was authorized by any previous Act, exceeds by 
     more than 25 percent the higher of--
       (A) the amount authorized for the project; or
       (B) the amount of the total estimated cost for the project 
     as shown in the most recent budget justification data 
     submitted to Congress.
       (2) An action described in paragraph (1) may be taken if--
       (A) the Secretary of Energy has submitted to the 
     congressional defense committees a

[[Page S5863]]

     report on the actions and the circumstances making such 
     action necessary; and
       (B) a period of 30 days has elapsed after the date on which 
     the report is received by the committees.
       (3) In the computation of the 30-day period under paragraph 
     (2), there shall be excluded any day on which either House of 
     Congress is not in session because of an adjournment of more 
     than 3 days to a day certain.
       (b) Exception.--Subsection (a) shall not apply to any 
     construction project which has a current estimated cost of 
     less than $5,000,000.

     SEC. 3124. FUND TRANSFER AUTHORITY.

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

     SEC. 3125. AUTHORITY FOR CONCEPTUAL AND CONSTRUCTION DESIGN.

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

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

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

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

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

     SEC. 3128. AVAILABILITY OF FUNDS.

       When so specified in an appropriation Act, amounts 
     appropriated for operation and maintenance or for plant 
     projects may remain available until expended.
   Subtitle C--Program Authorizations, Restrictions, and Limitations

     SEC. 3131. DEFENSE ENVIRONMENTAL MANAGEMENT PRIVATIZATION 
                   PROJECTS.

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

[[Page S5864]]

     SEC. 3132. INTERNATIONAL COOPERATIVE STOCKPILE STEWARDSHIP 
                   PROGRAMS.

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

     SEC. 3133. MODERNIZATION OF ENDURING NUCLEAR WEAPONS COMPLEX.

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

     SEC. 3134. TRITIUM PRODUCTION.

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

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

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

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

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

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

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

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

       (a) Prohibition.--The Department of Energy may not recover 
     from a party described in subsection (b) any costs of 
     response actions, for an actual or threatened release of 
     hazardous substances that occurred before the date of 
     enactment of this Act, at a site included in the Formerly 
     Utilized Site Remedial Action Project program other than

[[Page S5865]]

     the costs stipulated in a written, legally binding agreement 
     with the party with respect to the site as referred to in 
     that subsection.
       (b) Covered Parties.--A party referred to in subsection (a) 
     is any party that has entered into a written, legally binding 
     agreement with the Department before August 28, 1996, which 
     agreement stipulates a formula for the sharing by the party 
     and the Department of the costs of response actions at a site 
     referred to in that subsection.
                       Subtitle D--Other Matters

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

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

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

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

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

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

     SEC. 3154. SUBMITTAL OF BIENNIAL WASTE MANAGEMENT REPORTS.

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

     SEC. 3155. REPEAL OF OBSOLETE REPORTING REQUIREMENTS.

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

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

       (a) Establishment.--There is hereby established a 
     commission to be known as the Commission on Safeguards and 
     Security at Department of Energy Facilities (in this section 
     referred to as the ``Commission'').
       (b) Organizational Matters.--(1)(A) The Commission shall be 
     composed of eight members appointed from among individuals in 
     the public and private sectors who have significant 
     experience in matters relating to the safeguarding and 
     security of nuclear weapons and materials, as follows:
       (i) Two shall be appointed by the chairman of the Committee 
     on Armed Services of the Senate, in consultation with the 
     ranking member of the committee.
       (ii) One shall be appointed by the ranking member of the 
     Committee on Armed Services of the Senate, in consultation 
     with the chairman of the committee.
       (iii) Two shall be appointed by the chairman of the 
     Committee on National Security of the House of 
     Representatives, in consultation with the ranking member of 
     the committee.
       (iv) One shall be appointed by the ranking member of the 
     Committee on National Security of the House of 
     Representatives, in consultation with the chairman of the 
     committee.
       (v) Two shall be appointed by the Secretary of Energy.
       (B) Members shall be appointed for the life of the 
     Commission. Any vacancy in the Commission shall not affect 
     its powers, but shall be filled in the same manner as the 
     original appointment.
       (C) The chairman of the Commission shall be designated from 
     among the members of the Commission by the chairman of the 
     Committee on Armed Services of the Senate, in consultation 
     with the chairman of the Committee on National Security of 
     the House of Representatives, the ranking member of the 
     committee on Armed Services of the Senate, and the ranking 
     member of the Committee on National Security of the House of 
     Representatives.
       (D) Members shall be appointed not later than 60 days after 
     the date of enactment of this Act.
       (2) The members of the Commission shall establish 
     procedures for the activities of the Commission, including 
     procedures for calling meetings, requirements for quorums, 
     and the manner of taking votes.
       (c) Duties.--(1) The Commission shall--
       (A) visit various Department facilities, including the 
     Rocky Flats Plant, Colorado, Los Alamos National Laboratory, 
     New Mexico, the Savannah River Site, South Carolina, the 
     Pantex Plant, Texas, Oak Ridge National Laboratory, 
     Tennessee, and the Hanford Reservation, Washington, in order 
     to assess the adequacy of safeguards and security with 
     respect to nuclear weapons and materials at such facilities;
       (B) evaluate the specific concerns with respect to the 
     safeguarding and security of nuclear weapons and materials 
     raised in the report of the Office of Safeguards and Security 
     of the Department of Energy entitled ``Status of Safeguards 
     and Security for 1996''; and
       (C) review applicable orders and other requirements 
     governing the safeguarding and security of nuclear weapons 
     and materials at Department facilities.
       (d) Report.--(1) Not later than February 15, 1998, the 
     Commission shall submit to the Secretary and to the 
     congressional defense committees a report on the review 
     conducted under subsection (c).
       (2) The report may include--
       (A) recommendations regarding any modifications of policy 
     or procedures applicable

[[Page S5866]]

     to Department facilities that the Commission considers 
     appropriate to provide adequate safeguards and security for 
     nuclear weapons and materials at such facilities without 
     impairing the mission of such facilities;
       (B) recommendations for modifications in funding priorities 
     necessary to ensure basic funding for the safeguarding and 
     security of such weapons and materials at such facilities; 
     and
       (C) such other recommendations for additional legislation 
     or administrative action as the Commission considers 
     appropriate.
       (e) Personnel Matters.--(1)(A) Each member of the 
     Commission who is not an officer or employee of the Federal 
     Government shall be compensated at a rate equal to the daily 
     equivalent of the annual rate of basic pay prescribed for 
     Level IV of the Executive Schedule under section 53115 of 
     title 5, United States Code, for each day (including travel 
     time) during which such member is engaged in the performance 
     of the duties of the Commission.
       (B) All members of the Commission who are officers or 
     employees of the United States shall serve without 
     compensation in addition to that received for their services 
     as officers or employees of the United States.
       (2) The members of the Commission shall be allowed travel 
     expenses, including per diem in lieu of subsistence, at rates 
     authorized for employees of agencies under subchapter I of 
     chapter 57 of title 5, United States Code, while away from 
     their homes or regular places of business in the performance 
     of services for the Commission.
       (3)(A) The Commission may, without regard to the civil 
     service laws and regulations, appoint and terminate such 
     personnel as may be necessary to enable the Commission to 
     perform its duties.
       (B) The Commission may fix the compensation of the 
     personnel of the Commission without regard to the provisions 
     of chapter 51 and subchapter III of chapter 53 of title 5, 
     United States Code, relating to classification of positions 
     and General Schedule pay rates.
       (4) Any Federal Government employee may be detailed to the 
     Commission without reimbursement, and such detail shall be 
     without interruption or loss of civil status or privilege.
       (f) Applicability of FACA.--The provisions of the Federal 
     Advisory Committee Act (5 U.S.C. App.) shall not apply to the 
     activities of the Commission.
       (g) Termination.--The Commission shall terminate 30 days 
     after the date on which the Commission submits its report 
     under subsection (d).
       (h) Funding.--Of the amounts authorized to be appropriated 
     pursuant to section 3101, not more that $500,000 shall be 
     available for the activities of the Commission under this 
     section. Funds made available to the Commission under this 
     section shall remain available until expended.

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

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

     SEC. 3158. LAND TRANSFER, BANDELIER NATIONAL MONUMENT.

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

     SEC. 3201. AUTHORIZATION.

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

     SEC. 3301. DEFINITIONS.

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

     SEC. 3302. AUTHORIZED USES OF STOCKPILE FUNDS.

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

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

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

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

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

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

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

[[Page S5867]]

     Defense Stockpile. A transfer of funds under this subsection 
     shall be charged to any appropriation for the Department of 
     the Treasury and shall be credited to the National Defense 
     Stockpile Transaction Fund.
                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

     SEC. 3401. AUTHORIZATION OF APPROPRIATIONS.

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

     SEC. 3402. LEASING OF CERTAIN OIL SHALE RESERVES.

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

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

       Section 2 of Public Law 96-137 (42 U.S.C. 7156a) is 
     repealed.
                  TITLE XXXV--PANAMA CANAL COMMISSION
     Subtitle A--Authorization of Expenditures From Revolving Fund

     SEC. 3501. SHORT TITLE.

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

     SEC. 3502. AUTHORIZATION OF EXPENDITURES.

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

     SEC. 3503. PURCHASE OF VEHICLES.

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

     SEC. 3504. EXPENDITURES ONLY IN ACCORDANCE WITH TREATIES.

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

     SEC. 3511. SHORT TITLE; REFERENCES.

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

     SEC. 3512. DEFINITIONS RELATING TO CANAL TRANSITION.

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

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

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

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

     SEC. 3522. POST-CANAL TRANSFER PERSONNEL AUTHORITIES.

       (a) Waiver of Certain Post-employment Restrictions for 
     Commission Personnel Becoming Employees of the Panama Canal 
     Authority.--Section 1112 (22 U.S.C. 3622) is amended by 
     adding at the end the following new subsection:
       ``(e) Effective as of the Canal Transfer Date, section 207 
     of title 18, United States Code, shall not apply to an 
     individual who is an officer or employee of the Panama Canal 
     Authority, but only with respect to official acts of that 
     individual as an officer or employee of the Authority and 
     only in the case of an individual who was an officer or 
     employee of the Commission and whose employment with the 
     Commission was terminated at noon on the Canal Transfer 
     Date.''.
       (b) Consent of Congress for Acceptance by Reserve and 
     Retired Members of the Armed Forces of Employment by Panama 
     Canal Authority.--Such section is further amended by adding 
     after subsection (e), as added by subsection (a), the 
     following new subsection:
       ``(f)(1) The Congress consents to the following persons 
     accepting civil employment (and compensation for that 
     employment) with the Panama Canal Authority for which the 
     consent of the Congress is required by the last

[[Page S5868]]

     paragraph of section 9 of article I of the Constitution of 
     the United States, relating to acceptance of emoluments, 
     offices, or titles from a foreign government:
       ``(A) Retired members of the uniformed services.
       ``(B) Members of a reserve component of the armed forces.
       ``(C) Members of the Commissioned Reserve Corps of the 
     Public Health Service.
       ``(2) The consent of the Congress under paragraph (1) is 
     effective without regard to subsection (b) of section 908 of 
     title 37, United States Code (relating to approval required 
     for employment of Reserve and retired members by foreign 
     governments).''.

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

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

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

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

                        ``air transportation''.

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

     SEC. 3525. ENHANCED RECRUITMENT AND RETENTION AUTHORITIES.

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

     SEC. 3526. TRANSITION SEPARATION INCENTIVE PAYMENTS.

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

               ``transition separation incentive payments

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

[[Page S5869]]

       ``(A) may be in an amount determined by the Commission not 
     to exceed 50 percent of the basic pay of the employee; and
       ``(B) may be made (notwithstanding the limitation specified 
     in subsection (c)(2)(D) of section 663) in the case of such 
     an employee who voluntarily separates (whether by retirement 
     or resignation) during the 90-day period beginning on the 
     date of the enactment of this section; and
       ``(6) the provisions of subsection (f) of section 663 shall 
     not apply.
       ``(b) A decision by the Commission to exercise or to not 
     exercise the authority to pay a transition separation 
     incentive under this section shall not be subject to review 
     under any statutory procedure or any agency or negotiated 
     grievance procedure except under any of the laws referred to 
     in section 2302(d) of title 5, United States Code.''.

     SEC. 3527. LABOR-MANAGEMENT RELATIONS.

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

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

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

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

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

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

                        ``Chapter 1--Procurement


                          ``procurement system

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


                ``panama canal board of contract appeals

       ``Sec. 3102. (a) Establishment.--(1) The Secretary of 
     Defense, in consultation with the Commission, shall establish 
     a board of contract appeals, to be known as the Panama Canal 
     Board of Contract Appeals, in accordance with section 8 of 
     the Contract Disputes Act of 1978 (41 U.S.C. 607). Except as 
     otherwise provided by this section, the Panama Canal Board of 
     Contract Appeals (in this section referred to as the `Board') 
     shall be subject to the Contract Disputes Act of 1978 (41 
     U.S.C. 601 et seq.) in the same manner as any other agency 
     board of contract appeals established under that Act.
       ``(2) The Board shall consist of three members. At least 
     one member of the Board shall be licensed to practice law in 
     the Republic of Panama. Individuals appointed to the Board 
     shall take an oath of office, the form of which shall be 
     prescribed by the Secretary of Defense.
       ``(b) Exclusive Jurisdiction To Decide Appeals.--
     Notwithstanding section 10(a)(1) of the Contract Disputes Act 
     of 1978 (41 U.S.C. 609(a)(1)) or any other provision of law, 
     the Board shall have exclusive jurisdiction to decide an 
     appeal from a decision of a contracting officer under section 
     8(d) of such Act (41 U.S.C. 607(d)).
       ``(c) Exclusive Jurisdiction To Decide Protests.--The Board 
     shall decide protests submitted to it under this subsection 
     by interested parties in accordance with subchapter V of 
     title 31, United States Code. Notwithstanding section 3556 of 
     that title, section 1491(b) of title 28, United States Code, 
     and any other provision of law, the Board shall have 
     exclusive jurisdiction to decide such protests. For purposes 
     of this subsection--
       ``(1) except as provided in paragraph (2), each reference 
     to the Comptroller General in sections 3551 through 3555 of 
     title 31, United States Code, is deemed to be a reference to 
     the Board;
       ``(2) the reference to the Comptroller General in section 
     3553(d)(3)(C)(ii) of such title is deemed to be a reference 
     to both the Board and the Comptroller General;
       ``(3) the report required by paragraph (1) of section 
     3554(e) of such title shall be submitted to the Comptroller 
     General as well as the committees listed in such paragraph;

[[Page S5870]]

       ``(4) the report required by paragraph (2) of such section 
     shall be submitted to the Comptroller General as well as 
     Congress; and
       ``(5) section 3556 of such title shall not apply to the 
     Board, but nothing in this subsection shall affect the right 
     of an interested party to file a protest with the appropriate 
     contracting officer.
       ``(d) Procedures.--The Board shall prescribe such 
     procedures as may be necessary for the expeditious decision 
     of appeals and protests under subsections (b) and (c).
       ``(e) Commencement.--The Board shall begin to function as 
     soon as it has been established and has prescribed procedures 
     under subsection (d), but not later than January 1, 1999.
       ``(f) Transition.--The Board shall have jurisdiction under 
     subsection (b) and (c) over any appeals and protests filed on 
     or after the date on which the Board begins to function. Any 
     appeals and protests filed before such date shall remain 
     before the forum in which they were filed.
       ``(g) Other Functions.--The Board may perform functions 
     similar to those described in this section for such other 
     matters or activities of the Commission as the Commission may 
     determine and in accordance with regulations prescribed by 
     the Commission.''.

     SEC. 3542. TRANSACTIONS WITH THE PANAMA CANAL AUTHORITY.

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

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

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

     SEC. 3544. TOLLS FOR SMALL VESSELS.

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

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

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

     SEC. 3546. APPOINTMENT OF NOTARIES PUBLIC.

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

     SEC. 3547. COMMERCIAL SERVICES.

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

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

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

     SEC. 3549. ENHANCED PRINTING AUTHORITY.

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

     SEC. 3550. TECHNICAL AND CONFORMING AMENDMENTS.

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

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

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

                        ``Chapter 1--Procurement

``Sec. 3101. Procurement system.
``Sec. 3102. Panama Canal Board of Contract Appeals.''.
       (b) Amendment To Reflect Prior Change in Compensation of 
     Administrator.--Section 5315 of title 5, United States Code, 
     is amended by striking out the following:
       ``Administrator of the Panama Canal Commission.''.
       (c) Amendments To Reflect Change in Travel and 
     Transportation Expenses Authority.--(1) Section 5724(a)(3) of 
     title 5, United States Code, is amended by striking out ``, 
     the Commonwealth of Puerto Rico,'' and all that follows 
     through ``Panama Canal Act of 1979'' and inserting in lieu 
     thereof ``or the Commonwealth of Puerto Rico''.
       (2) Section 5724a(j) of such title is amended--
       (A) by inserting ``and'' after ``Northern Mariana 
     Islands,''; and
       (B) by striking out ``United States, and'' and all that 
     follows through the period at the end and inserting in lieu 
     thereof ``United States.''.
       (3) The amendments made by this subsection shall take 
     effect on January 1, 1999.
       (d) Miscellaneous Technical Amendments.--
       (1) Section 3(b) (22 U.S.C. 3602(b)) is amended by striking 
     out ``the Canal Zone Code'' and all that follows through 
     ``other laws'' and inserting in lieu thereof ``laws of the 
     United States and regulations issued pursuant to such laws''.
       (2)(A) The following provisions are each amended by 
     striking out ``the effective date of this Act'' and inserting 
     in lieu thereof ``October 1, 1979'': sections 3(b), 3(c), 
     1112(b), and 1321(c)(1).
       (B) Section 1321(c)(2) is amended by striking out ``such 
     effective date'' and inserting in lieu thereof ``October 1, 
     1979''.
       (C) Section 1231(c)(3)(A) (22 U.S.C. 3671(c)(3)(A)) is 
     amended by striking out ``the day before the effective date 
     of this Act'' and inserting in lieu thereof ``September 30, 
     1979''.
       (3) Section 1102a(h), as redesignated by section 
     3546(a)(1), is amended by striking out ``section 1102B'' and 
     inserting in lieu thereof ``section 1102b''.
       (4) Section 1110(b)(2) (22 U.S.C. 3620(b)(2)) is amended by 
     striking out ``section 16 of the Act of August 1, 1956 (22 
     U.S.C. 2680a),'' and inserting in lieu thereof ``section 207 
     of the Foreign Service Act of 1980 (22 U.S.C. 3927)''.
       (5) Section 1212(b)(3) (22 U.S.C. 3652(b)(3)) is amended by 
     striking out ``as last in effect before the effective date of 
     section 3530 of the Panama Canal Act Amendments of 1996'' and 
     inserting in lieu thereof ``as in effect on September 22, 
     1996''.
       (6) Section 1243(c)(2) (22 U.S.C. 3681(c)(2)) is amended by 
     striking out ``retroactivity'' and inserting in lieu thereof 
     ``retroactively''.
       (7) Section 1341(f) (22 U.S.C. 3751(f)) is amended by 
     striking out ``sections 1302(c)'' and inserting in lieu 
     thereof ``sections 1302(b)''.
                                 ______
                                 
      By Mr. COVERDELL:
  S. 925. A bill to provide authority for women' business centers to 
enter into contracts with Federal departments and agencies to provide 
specific assistance to women and other underserved small business 
concerns; to the Committee on Small Business.


            THE WOMEN'S SMALL BUSINESS PROGRAMS ACT OF 1997

  Mr. COVERDELL. Mr. President, I rise today to introduce the Support 
for Women's Small Business Programs Act of 1997. As a member of the 
Senate's Small Business Committee, I have focused on helping small 
businesses succeed in an increasingly competitive environment. Women-
owned small businesses have made impressive strides in recent years. To 
me, this is no surprise.

[[Page S5871]]

  Women-owned businesses are an increasingly important part of our 
Nation's economy. In 1996, they accounted for an estimated $2.3 
trillion in sales and employed one out of every four workers totaling 
18.5 million employees. According to the National Foundation of Women 
Business Owners, the growth of women-owned business continues to 
outpace overall business growth nearly 2 to 1. In my home State of 
Georgia, there are 143,045 women-owned businesses both full time and 
part time.
  I believe it is important the Federal Government continue to support 
the development of these small businesses and assist them in overcoming 
the unique challenges facing them. Currently, the Office of Women 
Business Ownership administers women's demonstration sites where women-
owned small businesses can find critical support. These demonstration 
women business development centers at these sites are required to be 
completely self-sufficient a short period of time. I hope we succeed in 
the coming Small Business Administration reauthorization legislation to 
make these centers permanent.
  My legislation is simple. It allows these women business development 
centers to enter into contracts with other Federal departments and 
agencies to provide specific assistance to small business concerns. It 
expands their pool of available resources they can use to nurture 
women-owned small business.
  I have been working with the Senate Small Business Committee on this 
matter, and it is my understanding this proposal will become part of 
this year s SBA Reauthorization bill. I look forward to working with 
the committee to ensure the Federal Government provides women's 
business centers this critical support.
                                 ______
                                 
      By Mr. HARKIN (for himself and Mrs. Murray):
  S. 926. A bill to amend the Internal Revenue Code of 1986 to expand 
the child and dependent care credit, and for other purposes; to the 
Committee on Finance.


          THE WORKING FAMILY CHILD CARE TAX RELIEF ACT OF 1997

  Mr. HARKIN. Mr. President, today, I rise to introduce the Working 
Family Child Care Tax Relief Act of 1977. This legislation is targeted 
to those families most in need of a tax break--working families with 
child or dependent adult care expenses. The need for child care 
continues to grow, 60 percent of women in the workforce have children 
under 6 years of age. Moreover, hard working families throughout Iowa 
and across America are struggling to meet the escalating costs of child 
care. A family with a preschool-age child spent an average of $15 more 
per week on child care in 1993 than in 1986. Currently, average child 
care costs for a working family in Iowa run about $3,000 to $6,000 per 
year.

  Today, there is a child care tax credit available for many working 
families--but that credit hasn't been increased since 1982--and it 
wasn't even adequate then. Inflation has reduced the value of the 
credit by about 60 percent since it was last adjusted in 1982. Under 
current law, families with $10,000 in adjusted gross income are 
eligible for a 30-percent credit on the first $2,400 in child care 
expenses for one child or $4,800 for two children. The credit phases 
down to 20 percent at $28,000 and all incomes above that level. Because 
the child care tax credit is not refundable, few families actually 
qualify for the full 30 percent credit under current law. Families with 
an income of less than $10,000 do not have a tax liability against 
which they can apply the credit.
  This legislation would expand the child care tax credit and make it 
available for more working families. The amount of child care expenses 
eligible for the credit would be increased to $4,000 for one child or 
other dependent and $8,000 for two or more dependents. For example, my 
proposal would provide a 30-percent refundable credit for working 
couples with an adjusted gross income of up to $50,000 on the first 
$8,000 in child care expenses for two or more children or other 
dependents. For families earning between $50,000 and $80,000, the 
credit gradually phases down to current level. Families earning more 
than $80,000 would be eligible for the same level of benefits they 
receive under current law.
  Although we must continue our efforts to reach a balanced budget, we 
must also realize that American families with child or dependent care 
expenses deserve a tax break. But I am not talking about doling out 
huge new tax breaks for those on top who don't need it. This 
legislation is targeted directly to families in the middle--they are 
not on welfare and they are not rich. They work hard, they care about 
their families and their jobs, and they deserve a break.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 926

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

     SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE.

       (a) Short Title.--This Act may be cited as the ``Working 
     Family Child Care Tax Relief Act of 1997''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this Act 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 Internal 
     Revenue Code of 1986.

     SEC. 2. EXPANSION OF CHILD AND DEPENDENT CARE CREDIT.

       (a) Increse in Credit.--Paragraph (2) of section 21(a) 
     (relating to credit for expenses for household and dependent 
     care services necessary for gainful employment) is amended to 
     read as follows:
       ``(2) Applicable percentage defined.--For purposes of 
     paragraph (1), the term `applicable percentage' means 30 
     percent reduced (but not below 20 percent) by 1 percentage 
     point for each $3,000 (or fraction thereof) by which the 
     taxpayer's adjusted gross income exceeds $50,000.''
       (b) Increase in Maximum Amount Creditable.--
       (1) In general.--Section 21(c) (relating to dollar limit on 
     amount creditable) is amended--
       (A) by striking ``$2,400'' in paragraph (1) and inserting 
     ``$4,000'', and
       (B) by striking ``$4,800'' in paragraph (2) and inserting 
     ``$8,000''.
       (2) Phaseout for taxpayers with adjusted gross income in 
     excess of $50,000.--
       (A) In general.--Section 21(c) is amended by adding at the 
     end the following new paragraph:
       ``(2) Limitation based on adjusted gross income.--If the 
     taxpayer's adjusted gross income for the taxable year exceeds 
     $50,000, the applicable dollar amount under paragraph (1) 
     shall be reduced as follows:
       ``(A) the $4,000 amount under paragraph (1)(A) shall be 
     reduced (but not below $2,400) by $53.33 for each $1,000 (or 
     fraction thereof) of such excess.
       ``(B) the $8,000 amount under paragraph (1)(B) shall be 
     reduced (but not below $4,800) by $106.66 for each $1,000 (or 
     fraction thereof) of such excess.''
       (2) Conforming amendments.--Section 21(c), as amended by 
     subsection 9(b), is amended--
       (A) by striking ``The amount'' and inserting:
       ``(1) In general.--The amount'',
       (B) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively, and
       (C) by striking ``paragraph (1) or (2)'' and inserting 
     ``subparagraph (A) or (B)''.
       (c) Credit Made Refundable.--
       (1) In general.--Section 21 (relating to credit for 
     expenses for household and dependent care services), as 
     amended by this section, is transferred to subpart C of part 
     IV of subchapter A of chapter 1, inserted after section 35, 
     and redesignated as section 36.
       (2) Conforming amendments.--
       (A) Section 129 is amended--
       (i) by striking ``21(e)'' in subsection (a)(2)(C) and 
     inserting ``36(e)'',
       (ii) by striking ``21(d)(2)'' in subsection (b)(2) and 
     inserting ``36(d)(2)'', and
       (iii) by striking ``21(b)(2)'' in subsection (e)(1) and 
     inserting ``36(b)(2)''.
       (B) Section 213(e) is amended by striking ``section 21'' 
     and inserting ``section 36''.
       (3) Clerical amendments.--
       (A) The table of sections for subpart A of part IV of 
     subchapter A of chapter 1 is amended by striking the item 
     relating to section 21.
       (B) The table of sections for subpart C of part IV of 
     subchapter A of chapter 1 is amended by adding at the end the 
     following new item:

``Sec. 36. Expenses for household and dependent care services necessary 
              for gainful employment.''

       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     1997.
                                 ______
                                 
      By Ms. SNOWE (for herself, Mr. Hollings, Mr. Gregg, Mr. Kerry, 
        Mr. Breaux, Mr. Reed, and Mr. Glenn):
  S. 927. A bill to reauthorize the Sea Grant Program.

[[Page S5872]]

       THE OCEAN AND COASTAL RESEARCH REVITALIZATION ACT OF 1997

  Ms. SNOWE. Mr. President, today I am introducing legislation to 
reauthorize the National Sea Grant College Program. I am pleased to be 
joined in this effort by Senator Hollings, the ranking member on the 
Committee on Commerce, Science, and Transportation, and by Senators 
Gregg, Kerry, Reed, Glenn, and Breaux.
  Since its establishment in 1966, the National Sea Grant College 
Program has provided an invaluable service to the citizens of our 
Nation, and particularly to those who depend on our Nation's coastal 
and marine resources. Sea Grant operates programs in concert with 29 
academic institutions covering the entire marine coastline of the 
United States, the Great Lakes region, and Puerto Rico. It serves as a 
kind of cooperative research and extension program for States and 
localities with a direct interest in ocean, coastal, and Great Lakes 
resources. Sea Grant is unique in the breadth of its programs, bringing 
together the natural and social sciences as well as educational 
institutions, the private sector, and State and local governments. By 
facilitating these interactions across institutional boundaries, Sea 
Grant makes important contributions to the development of management 
programs that effectively address both resource conservation and the 
needs of communities who use these resources.
  In my home State of Maine, the decline in groundfish populations has 
had a devastating impact on the fishing community. The joint Maine/New 
Hampshire Sea Grant Program has supported research looking at the 
economic and social impacts of this decline, as well as biological 
investigations into the ecology of the fisheries. With the results of 
these studies, Maine has been able to mitigate some of the losses these 
citizens have suffered. Management programs have been adapted to better 
account for the needs of local residents and the vagaries of an ever-
changing ocean. In all of their programs, Maine Sea Grant has 
consistently reinvested in local communities, providing knowledge and 
tools for working with the sea.
  I know from my colleagues that the work I have witnessed in Maine is 
representative of the quality work Sea Grant programs are doing across 
the country. The wealth of benefits Sea Grant provides comes from a 
small Federal investment. By requiring matching grants, State Sea Grant 
Programs use their partnerships with industry and academia to generate 
a high return on every Federal dollar expended. This investment, in 
turn, helps to stimulate industry productivity and increase the 
efficiency of coastal management programs. In these cost-conscious 
times, Sea Grant is a model of being able to do more with less.
  This legislation will allow Sea Grant to continue its work by 
reauthorizing the program for 3 years. It caps the national 
administrative costs of the program at 5 percent of the total budget, 
and it repeals an international program and a postdoctoral fellowship 
program which have never been funded. The bill also responds to a 
National Research Council Report by clarifying the responsibilities of 
the Sea Grant director and streamlining the process for reviewing State 
program proposals.
  This bill is supported by the Sea Grant Association, whose membership 
includes many of the land grant universities and other institutions 
with an interest in the program, and it was drafted in close 
consultation with the Clinton administration. The legislation is 
deserving of broad bipartisan support in the Senate, and I look forward 
to working with my colleagues for its quick passage. Mr. President, I 
ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 927

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

     SECTION 1. SHORT TITLE.

       This act may be cited as the ``Ocean and Coastal Research 
     Revitalization Act of 1997''.

     SEC. 2. AMENDMENT OF NATIONAL SEA GRANT COLLEGE PROGRAM ACT.

       Except as otherwise expressly provided, whenever in this 
     Act an amendment or repeal is expressed in terms of an 
     amendment or repeal 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 National Sea Grant College 
     Program Act (33 U.S.C. 1121 et seq.).

     SEC. 3. FINDINGS.

       (a) Section 202(a)(1) (33 U.S.C. 1121(a)(1)) is amended--
       (1) by redesignating subparagraphs (D) and (E) as 
     subparagraphs (E) and (F), respectively; and
       (2) by inserting after subparagraph (C) the following:
       ``(D) encourage the development of forecast and analysis 
     systems for coastal hazards;''.
       (b) Section 202(a)(6) (33 U.S.C. 1121(a)(6)) is amended by 
     striking the second sentence and inserting the following: 
     ``The most cost-effective way to promote such activities is 
     through continued and increased Federal support of the 
     establishment, development, and operation of programs and 
     projects by sea grant colleges, sea grant institutes, and 
     other institutions.''.

     SEC. 4. DEFINITIONS.

       (a) Section 203 (33 U.S.C. 1122) is amended--
       (1) in paragraph (3)--
       (A) by striking ``their university or'' and inserting ``his 
     or her''; and
       (B) by striking ``college, programs, or regional 
     consortium'' and inserting ``college or sea grant 
     institute'';
       (2) by striking paragraph (4) and inserting the following:
       ``(4) The term `field related to ocean, coastal, and Great 
     Lakes resources' means any discipline or field, including 
     marine affairs, resource management, technology, education, 
     or science, which is concerned with or likely to improve the 
     understanding, assessment, development, utilization, or 
     conservation of ocean, coastal, or Great Lakes resources.'';
       (3) by redesignating paragraphs (6) through (15) as 
     paragraphs (7) through (16), respectively, and inserting 
     after paragraph (5) the following:
       ``(6) The term `institution' means any public or private 
     institution of higher education, institute, laboratory, or 
     State or local agency.'';
       (4) by striking ``regional consortium, institution of 
     higher education, institute, or laboratory'' in paragraph 
     (10) (as redesignated) and inserting ``institute or other 
     institution'';
       (5) by striking paragraphs (11) through (16) (as 
     redesignated) and inserting after paragraph (10) the 
     following:
       ``(11) The term `project' means any individually described 
     activity in a field related to ocean, coastal, and Great 
     Lakes resources involving research, education, training, or 
     advisory services administered by a person with expertise in 
     such a field.
       ``(12) The term `sea grant college' means any institution, 
     or any association or alliance of two or more such 
     institutions, designated as such by the Secretary under 
     section 207 (33 U.S.C. 1126) of this Act.
       ``(13) The term `sea grant institute' means any 
     institution, or any association or alliance of two or more 
     such institutions, designated as such by the Secretary under 
     section 207 (33 U.S.C. 1126) of this Act.
       ``(14) The term `sea grant program' means a program of 
     research and outreach which is administered by one or more 
     sea grant colleges or sea grant institutes.
       ``(15) The term `Secretary' means the Secretary of 
     Commerce, acting through the Under Secretary of Commerce for 
     Oceans and Atmosphere.
       ``(16) The term `State' means any State of the United 
     States, the District of Columbia, the Commonwealth of Puerto 
     Rico, the Virgin Islands, Guam, American Samoa, the 
     Commonwealth of the Mariana Islands, or any other territory 
     or possession of the United States.''.
       (b) The Act is amended--
       (1) in section 209(b) (33 U.S.C. 1128(b)), as amended by 
     this Act, by striking ``, the Under Secretary,''; and
       (2) by striking ``Under Secretary'' every other place it 
     appears and inserting ``Secretary''.

     SEC. 5. NATIONAL SEA GRANT COLLEGE PROGRAM.

       Section 204 (33 U.S.C. 1123) is amended to read as follows:

     ``SEC. 204. NATIONAL SEA GRANT COLLEGE PROGRAM.

       ``(a) Program Maintenance.--The Secretary shall maintain 
     within the Administration, a program to be known as the 
     national sea grant college program. The national sea grant 
     college program shall be administered by a national sea grant 
     office within the Administration.
       ``(b) Program Elements.--The national sea grant college 
     program shall consist of the financial assistance and other 
     activities authorized in this subchapter, and shall provide 
     support for the following elements--
       ``(1) sea grant programs which comprise a national sea 
     grant college program network, including international 
     projects conducted within such programs;
       ``(2) administration of the national sea grant college 
     program and this Act by the national sea grant office, the 
     Administration, and the panel;
       ``(3) the fellowship program under section 208; and
       ``(4) any national strategic investments developed with the 
     approval of the panel, the sea grant colleges, and the sea 
     grant institutes.
       ``(c) Responsibilities of the Secretary.--
       ``(1) The Secretary, in consultation with the panel, sea 
     grant colleges, and sea grant

[[Page S5873]]

     institutes, shall develop a long-range strategic plan which 
     establishes priorities for the national sea grant college 
     program and which provides an appropriately balanced response 
     to local, regional, and national needs.
       ``(2) Within 6 months of the date of enactment of the Ocean 
     and Coastal Research Revitalization Act of 1997, the 
     Secretary, in consultation with the panel, sea grant 
     colleges, and sea grant institutes, shall establish 
     guidelines related to the activities and responsibilities of 
     sea grant colleges and sea grant institutes. Such guidelines 
     shall include requirements for the conduct of merit review by 
     the sea grant colleges and sea grant institutes of proposals 
     for grants and contracts to be awarded under section 205, 
     providing, at a minimum, for standardized documentation of 
     such proposals and peer review of all research projects.
       ``(3) The Secretary shall by regulation prescribe the 
     qualifications required for designation of sea grant colleges 
     and sea grant institutes under section 207.
       ``(4) To carry out the provisions of this subchapter, the 
     Secretary may--
       ``(A) appoint, assign the duties, transfer, and fix the 
     compensation of such personnel as may be necessary, in 
     accordance with civil service laws; except that one position 
     in addition to the Director may be established without regard 
     to the provisions of Title 5 governing appointments to the 
     competitive service, at a rate payable under section 5376 of 
     title 5, United States Code;
       ``(B) make appointments with respect to temporary and 
     intermittent services to the extent authorized by section 
     3109 of title 5, United States Code;
       ``(C) publish or arrange for the publication of, and 
     otherwise disseminate, in cooperation with other offices and 
     programs in the Administration and without regard to section 
     501 of title 44, any information of research, educational, 
     training or other value in fields related to ocean, coastal, 
     or Great Lakes resources;
       ``(D) enter into contracts, cooperative agreements, and 
     other transactions without regard to section 5 of title 41, 
     United States Code;
       ``(E) notwithstanding section 1342 of title 31, United 
     States Code, accept donations and voluntary and uncompensated 
     services;
       ``(F) accept funds from other Federal departments and 
     agencies, including agencies within the Administration, to 
     pay for and add to grants made and contracts entered into by 
     the Secretary;
       ``(G) promulgate such rules and regulations as may be 
     necessary and appropriate.
       ``(d) Director of the National Sea Grant College Program.--
       ``(1) The Secretary shall appoint, as the Director of the 
     National Sea Grant College Program, a qualified individual 
     who has appropriate administrative experience and knowledge 
     or expertise in fields related to ocean, coastal, and Great 
     Lakes resources. The Director shall be appointed and 
     compensated, without regard to the provisions of title 5 
     governing appointments in the competitive service, at a rate 
     payable under section 5376 of title 5, United States Code.
       ``(2) Subject to the supervision of the Secretary, the 
     Director shall administer the national sea grant college 
     program and oversee the operation of the national sea grant 
     office. In addition to any other duty prescribed by law or 
     assigned by the Secretary, the Director shall--
       ``(A) facilitate and coordinate the development of a long-
     range strategic plan under subsection (c)(1);
       ``(B) advise the Secretary with respect to the expertise 
     and capabilities which are available within or through the 
     national sea grant college program and encourage the use of 
     such expertise and capabilities, on a cooperative or other 
     basis, by other offices and activities within the 
     Administration, and other Federal departments and agencies;
       ``(C) advise the Secretary on the designation of sea grant 
     colleges and sea grant institutes, and, if appropriate, on 
     the termination or suspension of any such designation; and
       ``(D) encourage the establishment and growth of sea grant 
     programs, and cooperation and coordination with other Federal 
     activities in fields related to ocean, coastal, and Great 
     Lakes resources.
       ``(3) With respect to sea grant colleges and sea grant 
     institutes, the Director shall--
       ``(A) evaluate the programs of sea grant colleges and sea 
     grant institutes, using the priorities, guidelines, and 
     qualifications established by the Secretary;
       ``(B) subject to the availability of appropriations, 
     allocate funding among sea grant colleges and sea grant 
     institutes so as to--
       ``(i) promote healthy competition among sea grant colleges 
     and institutes;
       ``(ii) encourage successful implementation of sea grant 
     programs; and
       ``(iii) to the maximum extent consistent with other 
     provisions of this Act, provide a stable base of funding for 
     sea grant colleges and institutes; and
       ``(C) ensure compliance with the guidelines for merit 
     review under subsection (c)(2).''.

     SEC. 6. REPEAL OF SEA GRANT INTERNATIONAL PROGRAM.

       Section 3 of the Sea Grant Program Improvement Act of 1976 
     (33 U.S.C. 1124a) is repealed.

     SEC. 7. SEA GRANT COLLEGES AND SEA GRANT INSTITUTES.

       Section 207 (33 U.S.C. 1126) is amended to read as follows:

     ``SEC. 207. SEA GRANT COLLEGES AND SEA GRANT INSTITUTES.

       ``(a) Designation.--
       ``(1) A sea grant college or sea grant institute shall meet 
     the following qualifications:
       ``(A) have an existing broad base of competence in fields 
     related to ocean, coastal, and Great Lakes resources;
       ``(B) make a long-term commitment to the objective in 
     section 202(b), as determined by the Secretary;
       ``(C) cooperate with other sea grant colleges and 
     institutes and other persons to solve problems or meet needs 
     relating to ocean, coastal, and Great Lakes resources;
       ``(D) have received financial assistance under section 205 
     of this title (33 U.S.C. 1124); and
       ``(E) meet such other qualifications as the Secretary, in 
     consultation with the panel, considers necessary or 
     appropriate.
       ``(2) The Secretary may designate an institution, or an 
     association or alliance of two or more such institutions, as 
     a sea grant college if the institution, association, or 
     alliance --
       ``(A) meets the qualifications in paragraph (1); and
       ``(B) maintains a program of research, advisory services, 
     training, and education in fields related to ocean, coastal, 
     and Great Lakes resources.
       `(3) The Secretary may designate an institution, or an 
     association or alliance of two or more such institutions, as 
     a sea grant institute if the institution, association, or 
     alliance--
       ``(A) meets the qualifications in paragraph (1); and ``(B) 
     maintains a program which includes, at a minimum, research 
     and advisory services.
       ``(b) Existing Designees.--Any institution, or association 
     or alliance of two or more such institutions, designated as a 
     sea grant college or awarded institutional program status by 
     the Director prior to the date of enactment of this Act, 
     shall not have to reapply for designation as a sea grant 
     college or sea grant institute, respectively, after the date 
     of enactment of this act, if the Director determines that the 
     institution, or assocation or alliance of institutions, meets 
     the qualifications in subsection (a).
       ``(c) Suspension or Termination of Designation.--The 
     Secretary may, for cause and after an opportunity for 
     hearing, suspend or terminate any designation under 
     subsection (a).
       ``(d) Duties.--Subject to any regulations prescribed or 
     guidelines established by the Secretary, it shall be the 
     responsibility of each sea grant college and sea grant 
     institute--
       ``(1) to develop and implement, in consultation with the 
     Secretary and the panel, a program that is consistent with 
     the guidelines and priorities established under section 
     204(c); and
       ``(2) to conduct a merit review of all proposals for grants 
     and contracts to be awarded under section 205.''.

     SEC. 8. REPEAL OF POSTDOCTORAL FELLOWSHIP PROGRAM.

       Section 208(c) (33 U.S.C. 208(c)) is repealed.

     SEC. 9. SEA GRANT REVIEW PANEL.

       (a) Section 209(a)(33 U.S.C. 1128(a)) is amended--
       (1) by striking ``; commencement date''; and
       (2) by striking the second sentence.
       (b) Section 209(b)(33 U.S.C. 1128(b)) is amended--
       (1) by striking ``The Panel'' and inserting ``The panel'';
       (2) by striking ``and section 3 of the Sea Grant College 
     Program Improvement Act of 1976'' in paragraph (1); and
       (3) by striking ``regional consortia'' in paragraph (3) and 
     inserting ``institutes''.
       (c) Section 209(c)(33 U.S.C. 1128(c)) is amended--
       (1) in paragraph (1) by striking ``college, sea grant 
     regional consortium, or sea grant program'' and inserting 
     ``college or sea grant institute'';
       (2) by striking paragraph (5)(A) and inserting the 
     following:
       ``(A) receive compensation at a rate established by the 
     Secretary, not to exceed the maximum daily rate payable under 
     section 5376 of title 5, United States Code, when actually 
     engaged in the performance of duties for such panel; and''.

     SEC. 10. AUTHORIZATION OF APPROPRIATIONS.

       (a) Grants, Contracts, and Fellowships.--Section 212(a) (33 
     U.S.C. 1131(a)) is amended to read as follows:
       ``(a) Authorization.--There is authorized to be 
     appropriated to carry out this Act--
       (1) $55,400,000 for fiscal year 1998;
       ``(2) $56,500,000 for fiscal year 1999;
       ``(3) $57,600,000 for fiscal year 2000;
       ``(4) $58,800,000 for fiscal year 2001; and
       ``(5) $59,900,000 for fiscal year 2002.''.
       (b) Limitation on Certain Funding.--Section 212(b)(1)(33 
     U.S.C. 1131(b)(1)) is amended to read as follows:
       ``(b) Program Elements.--
       ``(1) Limitation.--Of the amount appropriated for each 
     fiscal year under subsection (a), no more than 6 percent may 
     be used to fund both the program element contained in section 
     204(b)(2) and any small business innovation research.''.

  Mr. HOLLINGS. Mr. President, I am pleased to join my colleagues in 
introducing this important bill to reauthorize the National Sea Grant 
College Program. Last year marked the 30th anniversary of the Sea Grant 
Program, so it is especially fitting that we propose

[[Page S5874]]

legislation today that will revitalize the program and continue its 
effective operation into the next century.
  At its core, Sea Grant is a program that brings competitive, high-
quality science to bear on problems affecting our Nation's oceans and 
coasts. Sea Grant's top priority is creating new economic opportunities 
by forging alliances among academia, government, and industry to 
transfer information and technology into the hands of people who can 
truly use it. For example, Sea Grant led the development of hybrid 
striped bass aquaculture, which has grown from a university 
demonstration project to a $6 million fish farming industry in just 6 
years. In addition, Sea Grant has an extraordinary record of success in 
balancing development with sound marine conservation, working with 
citizen-volunteers to clean beaches and monitor environmental quality, 
and promoting the effective management of fisheries and other marine 
resources for the benefit of future generations.
  Sea Grant is a national leader in the field of marine biotechnology, 
which has shown enormous promise in truly revolutionizing our use of 
marine resources. Marine biotechnology research funded by Sea Grant has 
already succeeded in discovering new pharmaceuticals from the sea, 
developing new, environmentally-friendly products with a wide range of 
applications, improving fisheries management and stock assessments 
through advances at the molecular level, and enhancing environmental 
remediation through the development of compounds that combat oil spills 
and other toxic substances in the marine environment. In South 
Carolina, a study on how the Eastern oyster builds its shell laid the 
groundwork for the development of alternatives to non-biodegradable 
water treatment compounds and detergent additives. Based on this 
research, the Donlor Corporation was formed to synthesize and market 
these new materials. The company's 50,000 square foot plant will soon 
begin operations.
  A results-oriented point of exchange, Sea Grant brings Federal and 
State managers together providing an opportunity for local and regional 
needs to receive national attention. Conversely, national initiatives 
are placed on local and regional agendas. This legislation will bolster 
such exchanges by giving members of the Sea Grant network throughout 
the country a larger voice in planning national initiatives.
  Moreover, Sea Grant is training the next century's leaders in marine 
policy. Sea Grant graduate student fellowships give marine policy 
training to tomorrow's scientists and managers. Efforts like South 
Carolina's Sea Partners, a joint program sponsored by the South 
Carolina Sea Grant Consortium and the U.S. Coast Guard, reach out to 
kindergarten through high school students regarding the problem of 
marine pollution. Through such programs, young people become interested 
in ocean and coastal issues and develop life-long respect for 
conserving the marine environment.
  Mr. President, more than a quarter-century ago, the Stratton 
Commission outlined a seminal vision for the benefits this Nation could 
derive from the oceans and coasts. The Sea Grant Program has played a 
vital part in realizing this vision through the application of sound 
scientific research to problems affecting our publicly-owned marine 
resources. The legislation we are introducing today will strengthen the 
Sea Grant Program, improve the procedures by which it operates, clarify 
the respective roles of the Federal Government and the universities 
that participate in the program, and reduce administrative costs. I 
urge all of my colleagues to join me in supporting this important 
program and this excellent bill.
                                 ______
                                 
      By Mr. JEFFORDS:
  S. 928. A bill to provide for a regional education and workforce 
training system in the metropolitan Washington area, to improve the 
school facilities of the District of Columbia, and to fund such 
activities in part by an income tax on nonresident workers in the 
District of Columbia, to be offset by tax credits; to the Committee on 
Finance.


  the metropolitan washington education and workforce training act of 
                                  1997

  Mr. JEFFORDS. Mr. President, I am introducing legislation today to 
address a problem that has enormous significance for the future of this 
Nation and the prosperity of our citizens. This legislation will create 
a regional Education and Workforce Training Partnership for the 
Washington Metropolitan Area. The partnership created in the Washington 
Metropolitan region would serve as a national model and would address 
the infrastructure crisis that exists in the District of Columbia 
Public Schools. Let me take a moment to explain the importance of this 
legislation as a national model.
  We face a national economic crisis if we fail to prepare our 
workforce for the high-paying technology jobs of the future. As a 
nation, we are currently enjoying an extended period of economic 
strength, and that is terrific. But we mustn't be lulled into a false 
sense of complacency. We have all read and digested the theory of how 
the foundation of our economy is shifting from a manufacturing base to 
what is now called the global knowledge economy. In the global 
knowledge economy, the ability to use critical thinking skills with 
advanced technology and information will be at a premium. Technology 
proficiency will be required to get and keep a good job. Now, I ask 
you, are we really prepared as a nation to be a leader in the global 
knowledge economy? Will our workers be surpassed by the workforces of 
our competitors overseas?
  At present there are 190,000 unfilled high-skilled information 
technology jobs at large and mid-sized U.S. companies. These vacancies 
are almost equally divided between information technology (IT) and non-
IT companies that rely heavily on advanced technology skills to get the 
job done. This shows us, that as we approach the 21st century 
technology skills are a must.
  In the Washington Metropolitan Area alone there are at least 50,000 
jobs--with an average annual salary of $40,000--that cannot be filled 
by the local labor market. Local area students are not being prepared 
to fill these jobs. Companies have complained to me in meeting after 
meeting that they are forced to recruit from other States or from other 
countries to try and find people for these positions--and that tactic 
is entirely too cost-prohibitive.
  The Metropolitan Washington Education and Workforce Training 
Improvement Act of 1997 authorizes the establishment of a regional 
education and work force training partnership. This partnership is to 
be composed of 13 members representing business and education, together 
with a government official from the District of Columbia, Maryland, and 
Virginia. The partnership will chart a course for reforms and 
investments in education and work force training for the D.C. 
metropolitan area, making recommendations to the Secretaries of 
Education and Labor for grants to fund specific activities so that the 
skills of the regional work force will meet the needs of the regions 
employers.
  By filling the 50,000 IT jobs in the Washington metropolitan area an 
additional $3.5 billion annually would be injected into the region's 
economy. And, the partnership created by this legislation with its 
unique focus on business-education collaboration, would serve as a 
model for other regions in the Nation that are facing the same pending 
crisis in labor market shortage and economic development.
  In addition, this legislation will fulfill another long awaited 
promise that we as national leaders living and working in Washington 
must see through. I believe we have an obligation to make the Nation's 
Capital a model of what education must be as we enter the next century. 
The D.C. schools have made administrative progress recently, but the 
infrastructure problems are still appalling--requiring, according to a 
1996 GSA report, an additional $2 billion for reconstruction and repair 
of dilapidated buildings. We must not let the students of the District 
of Columbia be sentenced to learning in buildings that would be found 
in a war zone. We owe more to the students of our Nation's Capital.
  I want to be clear that this legislation would provide initial 
Federal funding to help finance the bonding required to reconstruct the 
D.C. school infrastructure. No funds would be used towards the present 
school administration as they have adequate receipts. The legislation 
would also provide funding for the D.C. school reform legislation 
passed by the Congress last session.

[[Page S5875]]

  I want to see this Metropolitan Washington Education and Workforce 
Training Act enacted to help correct our regional labor market shortage 
and to serve as a model for the Nation. Through this legislation we can 
help fill the high-paying jobs we have available in this region, known 
as the Golden Crescent of Maryland, Virginia, and the District, and in 
so doing we will make our capital's education system one that is 
effective and one we can be proud of. I urge my colleagues to join me 
in this important effort.

                          ____________________