[Congressional Record Volume 144, Number 127 (Tuesday, September 22, 1998)]
[House]
[Pages H8097-H8460]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                     CONFERENCE REPORT ON H.R. 3616

  Mr. SPENCE submitted the following conference report and statement on 
the bill (H.R. 3616) to authorize appropriations for fiscal year 1999 
for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe personnel strengths for such fiscal year for the Armed 
Forces, and for other purposes:

                  Conference Report (H. Rept. 105-736)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the bill (H.R. 
     3616) to authorize appropriations for fiscal year 1999 for 
     military activities of the Department of Defense, for 
     military construction, and for defense activities of the 
     Department of Energy, to prescribe personnel strengths for 
     such fiscal year for the Armed Forces, and for other 
     purposes, having met, after full and free conference, have 
     agreed to recommend and do recommend to their respective 
     Houses as follows:
       That the House recede from its disagreement to the 
     amendment of the Senate and agree to the same with an 
     amendment as follows:
       In lieu of the matter proposed to be inserted by the Senate 
     amendment, insert the following:

     SECTION 1. SHORT TITLE; FINDINGS.

       (a) Short Title.--This Act may be cited as the ``Strom 
     Thurmond National Defense Authorization Act for Fiscal Year 
     1999''.
       (b) Findings.--Congress makes the following findings:
       (1) Senator Strom Thurmond of South Carolina first became a 
     member of the Committee on Armed Services of the United 
     States Senate on January 19, 1959. Senator Thurmond's 
     continuous service on that committee covers more than 75 
     percent of the period of the existence of the committee, 
     which was established immediately after World War II, and 
     more than 20 percent of the period of the existence of 
     military and naval affairs committees of Congress, the 
     original bodies of which were formed in 1816.
       (2) Senator Thurmond came to Congress and the committee as 
     a distinguished veteran of service, including combat service, 
     in the Armed Forces of the United States.
       (3) Senator Thurmond was commissioned as a reserve second 
     lieutenant of infantry in 1924. He served with great 
     distinction with the First Army in the European Theater of 
     Operations during World War II, landing in Normandy in a 
     glider with the 82nd Airborne Division on D-Day. He was 
     transferred to the Pacific Theater of Operations at the end 
     of the war in Europe and was serving in the Philippines when 
     Japan surrendered.
       (4) Having reverted to Reserve status at the end of World 
     War II, Senator Thurmond was promoted to brigadier general in 
     the United States Army Reserve in 1954. He served as 
     President of the Reserve Officers Association beginning that 
     same year and ending in 1955. Senator Thurmond was promoted 
     to major general in the United States Army Reserve in 1959. 
     He transferred to the Retired Reserve on January 1, 1965, 
     after 36 years of commissioned service.
       (5) The distinguished character of Senator Thurmond's 
     military service has been recognized by awards of numerous 
     decorations that include the Legion of Merit, the Bronze Star 
     medal with ``V'' device, the Army Commendation Medal, the 
     Belgian Cross of the Order of the Crown, and the French Croix 
     de Guerre.
       (6) Senator Thurmond has served as chairman of the 
     Committee on Armed Services of the United States Senate since 
     1995 and served as the ranking minority member of the 
     committee from 1993 to 1995. Senator Thurmond concludes his 
     service as chairman at the end of the One Hundred Fifth 
     Congress, but is to continue to serve the committee as a 
     member in successive Congresses.

[[Page H8098]]

       (7) This Act is the fortieth annual authorization bill for 
     the Department of Defense for which Senator Thurmond has 
     taken a major responsibility as a member of the Committee on 
     Armed Services of the Senate.
       (8) Senator Thurmond, as an Army officer and a legislator, 
     has made matchless contributions to the national security of 
     the United States that, in duration and in quality, are 
     unique.
       (9) It is altogether fitting and proper that this Act, the 
     last annual authorization Act for the national defense that 
     Senator Thurmond manages in and for the United States Senate 
     as chairman of the Committee on Armed Services, be named in 
     his honor, as provided in subsection (a).

     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; findings.
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. Multiyear procurement authority for Longbow Hellfire Missile 
              program.
Sec. 112. Conditions for award of a second-source procurement contract 
              for the Family of Medium Tactical Vehicles.
Sec. 113. Armored system modernization.
Sec. 114. Reactive armor tiles.
Sec. 115. Extension of authority to carry out Armament Retooling and 
              Manufacturing Support Initiative.

                       Subtitle C--Navy Programs

Sec. 121. CVN-77 nuclear aircraft carrier program.
Sec. 122. Increase in amount authorized to be excluded from cost 
              limitation for Seawolf submarine program.
Sec. 123. Multiyear procurement authority for the Department of the 
              Navy.
Sec. 124. Annual GAO review of F/A-18E/F aircraft program.

                     Subtitle D--Air Force Programs

Sec. 131. F-22 aircraft program.
Sec. 132. C-130J aircraft program.

                       Subtitle E--Other Matters

Sec. 141. Chemical stockpile emergency preparedness program.
Sec. 142. Alternative technologies for destruction of assembled 
              chemical weapons.

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

              Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for basic and applied research.

    Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Management responsibility for Navy mine countermeasures 
              programs.
Sec. 212. Future aircraft carrier transition technologies.
Sec. 213. Manufacturing technology program.
Sec. 214. Sense of Congress on the Defense Science and Technology 
              Program.
Sec. 215. Next Generation Internet Program.
Sec. 216. Crusader self-propelled artillery system program.
Sec. 217. Airborne Laser Program.
Sec. 218. Enhanced Global Positioning System program.

                 Subtitle C--Ballistic Missile Defense

Sec. 231. Sense of Congress on National Missile Defense coverage.
Sec. 232. Limitation on funding for the Medium Extended Air Defense 
              System.
Sec. 233. Limitation on funding for Cooperative Ballistic Missile 
              Defense programs.
Sec. 234. Sense of Congress with respect to Ballistic Missile Defense 
              cooperation with Russia.
Sec. 235. Ballistic Missile Defense program elements.
Sec. 236. Restructuring of acquisition strategy for Theater High-
              Altitude Area Defense (THAAD) system.

                       Subtitle D--Other Matters

Sec. 241. Extension of authority to carry out certain prototype 
              projects.
Sec. 242. NATO alliance ground surveillance concept definition.
Sec. 243. NATO common-funded Civil Budget.
Sec. 244. Executive agent for cooperative research program of the 
              Department of Defense and the Department of Veterans 
              Affairs.
Sec. 245. Review of pharmacological interventions for reversing brain 
              injury.
Sec. 246. Pilot program for revitalizing the laboratories and test and 
              evaluation centers of the Department of Defense.
Sec. 247. Chemical warfare defense.
Sec. 248. Landmine alternatives.

                  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.

    Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 311. Refurbishment of M1-A1 tanks.
Sec. 312. Operation of prepositioned fleet, National Training Center, 
              Fort Irwin, California.
Sec. 313. Berthing space at Norfolk Naval Shipyard, Virginia.
Sec. 314. NATO common-funded military budget.

                  Subtitle C--Environmental Provisions

Sec. 321. Settlement of claims of foreign governments for environmental 
              cleanup of overseas sites formerly used by the Department 
              of Defense.
Sec. 322. Authority to pay negotiated settlement for environmental 
              cleanup of formerly used defense sites in Canada.
Sec. 323. Removal of underground storage tanks.
Sec. 324. Report regarding polychlorinated biphenyl waste under 
              Department of Defense control overseas.
Sec. 325. Modification of deadline for submittal to Congress of annual 
              reports on environmental activities.
Sec. 326. Submarine solid waste control.
Sec. 327. Arctic Military Environmental Cooperation Program.
Sec. 328. Sense of Congress regarding oil spill prevention training for 
              personnel on board Navy vessels.

               Subtitle D--Information Technology Issues

Sec. 331. Additional information technology responsibilities of Chief 
              Information Officers.
Sec. 332. Defense-wide electronic mall system for supply purchases.
Sec. 333. Priority funding to ensure year 2000 compliance of 
              information technology and national security systems.
Sec. 334. Evaluation of year 2000 compliance as part of training 
              exercises programs.
Sec. 335. Continuity of essential operations at risk of failure because 
              of information technology and national security systems 
              that are not year 2000 compliant.

         Subtitle E--Defense Infrastructure Support Improvement

Sec. 341. Clarification of definition of depot-level maintenance and 
              repair.
Sec. 342. Reporting and analysis requirements before change of 
              commercial and industrial type functions to private 
              sector performance.
Sec. 343. Notifications of determinations of military items as being 
              commercial items for purposes of the exception to 
              requirements regarding core logistics capabilities.
Sec. 344. Oversight of development and implementation of automated 
              identification technology.
Sec. 345. Contractor-operated civil engineering supply stores program.
Sec. 346. Conditions on expansion of functions performed under prime 
              vendor contracts for depot-level maintenance and repair.
Sec. 347. Best commercial inventory practices for management of 
              secondary supply items.
Sec. 348. Personnel reductions in Army Materiel Command.
Sec. 349. Inventory management of in-transit items.
Sec. 350. Review of Defense Automated Printing Service functions.
Sec. 351. Development of plan for establishment of core logistics 
              capabilities for maintenance and repair of C-17 aircraft.

  Subtitle F--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 361. Continuation of management and funding of Defense Commissary 
              Agency through the Office of the Secretary of Defense.
Sec. 362. Expansion of current eligibility of Reserves for commissary 
              benefits.
Sec. 363. Costs payable to the Department of Defense and other Federal 
              agencies for services provided to the Defense Commissary 
              Agency.
Sec. 364. Collection of dishonored checks presented at commissary 
              stores.
Sec. 365. Restrictions on patron access to, and purchases in, overseas 
              commissaries and exchange stores.
Sec. 366. Repeal of requirement for Air Force to sell tobacco products 
              to enlisted personnel.
Sec. 367. Prohibition on consolidation or other organizational changes 
              of Department of Defense retail systems.
Sec. 368. Defense Commissary Agency telecommunications.
Sec. 369. Survey of commissary store patrons regarding satisfaction 
              with commissary store merchandise.

[[Page H8099]]

                       Subtitle G--Other Matters

Sec. 371. Eligibility requirements for attendance at Department of 
              Defense domestic dependent elementary and secondary 
              schools.
Sec. 372. Assistance to local educational agencies that benefit 
              dependents of members of the Armed Forces and Department 
              of Defense civilian employees.
Sec. 373. Department of Defense readiness reporting system.
Sec. 374. Specific emphasis of program to investigate fraud, waste, and 
              abuse within Department of Defense.
Sec. 375. Condition for providing financial assistance for support of 
              additional duties assigned to the Army National Guard.
Sec. 376. Demonstration program to improve quality of personal property 
              shipments of members.
Sec. 377. Pilot program for acceptance and use of landing fees charged 
              for use of domestic military airfields by civil aircraft.
Sec. 378. Strategic plan for expansion of distance learning 
              initiatives.
Sec. 379. Public availability of operating agreements between military 
              installations and financial institutions.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Revision in permanent end strength levels.
Sec. 403. Date for submission of annual manpower requirements report.
Sec. 404. Additional exemption from percentage limitation on number of 
              lieutenant generals and vice admirals.
Sec. 405. Extension of authority for Chairman of the Joint Chiefs of 
              Staff to designate up to 12 general and flag officer 
              positions to be excluded from general and flag officer 
              grade limitations.
Sec. 406. Exception for Chief, National Guard Bureau, from limitation 
              on number of officers above major general.
Sec. 407. Limitation on daily average of personnel on active duty in 
              grades E-8 and E-9.

                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the 
              reserves.
Sec. 413. End strengths for military technicians (dual status).
Sec. 414. Increase in number of members in certain grades authorized to 
              serve on active duty in support of the reserves.
Sec. 415. Consolidation of strength authorizations for active status 
              Naval Reserve flag officers of the Navy Medical 
              Department Staff Corps.

              Subtitle C--Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Codification of eligibility of retired officers and former 
              officers for consideration by special selection boards.
Sec. 502. Involuntary separation pay denied for officer discharged for 
              failure of selection for promotion requested by the 
              officer.
Sec. 503. Streamlined selective retention process for regular officers.
Sec. 504. Permanent applicability of limitations on years of active 
              naval service of Navy limited duty officers in grades of 
              commander and captain.
Sec. 505. Tenure of Chief of the Air Force Nurse Corps.
Sec. 506.  Grade of Air Force Assistant Surgeon General for Dental 
              Services.
Sec. 507. Review regarding allocation of Naval Reserve Officers' 
              Training Corps scholarships among participating colleges 
              and universities.

                 Subtitle B--Reserve Component Matters

Sec. 511. Use of Reserves for emergencies involving weapons of mass 
              destruction.
Sec. 512. Service required for retirement of National Guard officer in 
              higher grade.
Sec. 513. Reduced time-in-grade requirement for reserve general and 
              flag officers involuntarily transferred from active 
              status.
Sec. 514. Active status service requirement for promotion consideration 
              for Army and Air Force reserve component brigadier 
              generals.
Sec. 515. Composition of selective early retirement boards for rear 
              admirals of the Naval Reserve and major generals of the 
              Marine Corps Reserve.
Sec. 516. Authority for temporary waiver for certain Army Reserve 
              officers of baccalaureate degree requirement for 
              promotion of reserve officers.
Sec. 517.  Furnishing of burial flags for deceased members and former 
              members of the Selected Reserve.

              Subtitle C--Military Education and Training

Sec. 521. Separate housing for male and female recruits during recruit 
              basic training.
Sec. 522. After-hours privacy for recruits during basic training.
Sec. 523. Sense of the House of Representatives relating to small unit 
              assignments by gender during recruit basic training.
Sec. 524. Extension of reporting dates for Commission on Military 
              Training and Gender-Related Issues.
Sec. 525. Improved oversight of innovative readiness training.

           Subtitle D--Decorations, Awards, and Commendations

Sec. 531. Study of new decorations for injury or death in line of duty.
Sec. 532. Waiver of time limitations for award of certain decorations 
              to certain persons.
Sec. 533. Commendation and commemoration of the Navy and Marine Corps 
              personnel who served in the United States Navy Asiatic 
              Fleet from 1910-1942.
Sec. 534. Appreciation for service during World War I and World War II 
              by members of the Navy assigned on board merchant ships 
              as the Naval Armed Guard Service.
Sec. 535. Sense of Congress regarding the heroism, sacrifice, and 
              service of the military forces of South Vietnam, other 
              nations, and indigenous groups in connection with the 
              United States Armed Forces during the Vietnam conflict.
Sec. 536. Sense of Congress regarding the heroism, sacrifice, and 
              service of former South Vietnamese commandos in 
              connection with United States Armed Forces during the 
              Vietnam conflict.
Sec. 537. Prohibition on members of Armed Forces entering correctional 
              facilities to present decorations to persons who have 
              committed serious violent felonies.

   Subtitle E--Administration of Agencies Responsible for Review and 
                     Correction of Military Records

Sec. 541. Personnel freeze.
Sec. 542. Professional staff.
Sec. 543. Ex parte communications.
Sec. 544. Timeliness standards.
Sec. 545. Scope of correction of military records.

                          Subtitle F--Reports

Sec. 551. Report on personnel retention.
Sec. 552. Report on process for selection of members for service on 
              courts-martial.
Sec. 553. Report on prisoners transferred from United States 
              Disciplinary Barracks, Fort Leavenworth, Kansas, to 
              Federal Bureau of Prisons.
Sec. 554.  Review and report regarding the distribution of National 
              Guard full-time support among the States.

                       Subtitle G--Other Matters

Sec. 561. Two-year extension of certain force drawdown transition 
              authorities relating to personnel management and 
              benefits.
Sec. 562. Leave without pay for suspended academy cadets and 
              midshipmen.
Sec. 563. Continued eligibility under Voluntary Separation Incentive 
              program for members who involuntarily lose membership in 
              a reserve component.
Sec. 564. Reinstatement of definition of financial institution in 
              authorities for reimbursement of defense personnel for 
              Government errors in direct deposit of pay.
Sec. 565. Increase in maximum amount for College Fund program.
Sec. 566. Central Identification Laboratory, Hawaii.
Sec. 567. Military funeral honors for veterans.
Sec. 568. Status in the Naval Reserve of cadets at the Merchant Marine 
              Academy.
Sec. 569. Repeal of restriction on civilian employment of enlisted 
              members.
Sec. 570. Transitional compensation for abused dependent children not 
              residing with the spouse or former spouse of a member 
              convicted of dependent abuse.
Sec. 571. Pilot program for treating GED and home school diploma 
              recipients as high school graduates for determinations of 
              eligibility for enlistment in the Armed Forces.
Sec. 572. Sense of Congress concerning New Parent Support Program and 
              military families.
Sec. 573. Advancement of Benjamin O. Davis, Junior, to grade of general 
              on the retired list of the Air Force.
Sec. 574. Sense of the House of Representatives concerning adherence by 
              civilians in military chain of command to the standard of 
              exemplary conduct required of commanding officers and 
              others in authority in the Armed Forces.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 1999.
Sec. 602. Rate of pay for cadets and midshipmen at the service 
              academies.
Sec. 603. Basic allowance for housing outside the United States.
Sec. 604. Basic allowance for subsistence for reserves.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. Three-month extension of certain bonuses and special pay 
              authorities for reserve forces.

[[Page H8100]]

Sec. 612. Three-month extension of certain bonuses and special pay 
              authorities for nurse officer candidates, registered 
              nurses, and nurse anesthetists.
Sec. 613. Three-month extension of authorities relating to payment of 
              other bonuses and special pays.
Sec. 614. Increased hazardous duty pay for aerial flight crewmembers in 
              certain pay grades.
Sec. 615. Aviation career incentive pay and aviation officer retention 
              bonus.
Sec. 616. Diving duty special pay for divers having diving duty as a 
              nonprimary duty.
Sec. 617. Hardship duty pay.
Sec. 618. Selective reenlistment bonus eligibility for Reserve members 
              performing active Guard and Reserve duty.
Sec. 619. Repeal of ten percent limitation on certain selective 
              reenlistment bonuses.
Sec. 620. Increase in maximum amount authorized for Army enlistment 
              bonus.
Sec. 621. Equitable treatment of Reserves eligible for special pay for 
              duty subject to hostile fire or imminent danger.
Sec. 622. Retention incentives initiative for critically short military 
              occupational specialties.

            Subtitle C--Travel and Transportation Allowances

Sec. 631. Payments for movements of household goods arranged by 
              members.
Sec. 632. Exception to maximum weight allowance for baggage and 
              household effects.
Sec. 633. Travel and transportation allowances for travel performed by 
              members in connection with rest and recuperative leave 
              from overseas stations.
Sec. 634. Storage of baggage of certain dependents.
Sec. 635. Commercial travel of Reserves at Federal supply schedule 
              rates for attendance at inactive-duty training 
              assemblies.

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

Sec. 641. Paid-up coverage under Survivor Benefit Plan.
Sec. 642. Survivor Benefit Plan open enrollment period.
Sec. 643. Effective date of court-required former spouse Survivor 
              Benefit Plan coverage effectuated through elections and 
              deemed elections.
Sec. 644. Presentation of United States flag to members of the Armed 
              Forces upon retirement.
Sec. 645. Recovery, care, and disposition of remains of medically 
              retired member who dies during hospitalization that 
              begins while on active duty.
Sec. 646. Revision to computation of retired pay for certain members.
Sec. 647. Elimination of backlog of unpaid retired pay.

                       Subtitle E--Other Matters

Sec. 651. Definition of possessions of the United States for pay and 
              allowances purposes.
Sec. 652. Accounting of advance payments.
Sec. 653. Reimbursement of rental vehicle costs when motor vehicle 
              transported at Government expense is late.
Sec. 654. Education loan repayment program for health professions 
              officers serving in Selected Reserve.
Sec. 655. Federal employees' compensation coverage for students 
              participating in certain officer candidate programs.
Sec. 656. Relationship of enlistment bonuses to eligibility to receive 
              Army college fund supplement under Montgomery GI Bill 
              Educational Assistance Program.
Sec. 657. Authority to provide financial assistance for education of 
              certain defense dependents overseas.
Sec. 658. Clarifications concerning payments to certain persons 
              captured or interned by North Vietnam.

                   TITLE VII--HEALTH CARE PROVISIONS

                    Subtitle A--Health Care Services

Sec. 701. Dependents' dental program.
Sec. 702. Expansion of dependent eligibility under retiree dental 
              program.
Sec. 703. Plan for redesign of military pharmacy system.
Sec. 704. Transitional authority to provide continued health care 
              coverage for certain persons unaware of loss of CHAMPUS 
              eligibility.

                      Subtitle B--TRICARE Program

Sec. 711. Payment of claims for provision of health care under the 
              TRICARE program for which a third party may be liable.
Sec. 712. TRICARE prime automatic enrollments and retiree payment 
              options.
Sec. 713. System for tracking data and measuring performance in meeting 
              TRICARE access standards.
Sec. 714. Establishment of appeals process for claimcheck denials.
Sec. 715. Reviews relating to accessibility of health care under 
              TRICARE.

 Subtitle C--Health Care Services For Medicare-Eligible Department of 
                         Defense Beneficiaries

Sec. 721. Demonstration project to include certain covered 
              beneficiaries within Federal Employees Health Benefits 
              Program.
Sec. 722. TRICARE as Supplement to Medicare demonstration.
Sec. 723. Implementation of redesign of pharmacy system.
Sec. 724. Comprehensive evaluation of implementation of demonstration 
              projects and TRICARE pharmacy redesign.

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

Sec. 731. Process for waiving informed consent requirement for 
              administration of certain drugs to members of Armed 
              Forces for purposes of a particular military operation.
Sec. 732. Health benefits for abused dependents of members of the Armed 
              Forces.
Sec. 733. Provision of health care at military entrance processing 
              stations and elsewhere outside medical treatment 
              facilities.
Sec. 734. Professional qualifications of physicians providing military 
              health care.

                       Subtitle E--Other Matters

Sec. 741. Enhanced Department of Defense Organ and Tissue Donor 
              program.
Sec. 742. Authorization to establish a Level 1 Trauma Training Center.
Sec. 743. Authority to establish center for study of post-deployment 
              health concerns of members of the Armed Forces.
Sec. 744. Report on implementation of enrollment-based capitation for 
              funding for military medical treatment facilities.
Sec. 745. Joint Department of Defense and Department of Veterans 
              Affairs reports relating to interdepartmental cooperation 
              in the delivery of medical care.
Sec. 746. Report on research and surveillance activities regarding Lyme 
              disease and other tick-borne diseases.

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

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

Sec. 801. Limitation on use of price preference upon achievement of 
              contract goal for small and disadvantaged businesses.
Sec. 802. Distribution of assistance under the Procurement Technical 
              Assistance Cooperative Agreement Program.
Sec. 803. Defense commercial pricing management improvement.
Sec. 804. Modification of senior executives covered by limitation on 
              allowability of compensation for certain contractor 
              personnel.
Sec. 805. Separate determinations of exceptional waivers of truth in 
              negotiation requirements for prime contracts and 
              subcontracts.
Sec. 806. Procurement of conventional ammunition.
Sec. 807. Para-aramid fibers and yarns.
Sec. 808. Clarification of responsibility for submission of information 
              on prices previously charged for property or services 
              offered.
Sec. 809. Amendments and study relating to procurement from firms in 
              industrial base for production of small arms.

                       Subtitle B--Other Matters

Sec. 811. Eligibility of involuntarily downgraded employee for 
              membership in an acquisition corps.
Sec. 812. Time for submission of annual report relating to Buy American 
              Act.
Sec. 813. Procurement of travel services for official and unofficial 
              travel under one contract.
Sec. 814. Department of Defense purchases through other agencies.
Sec. 815. Supervision of defense acquisition university structure by 
              Under Secretary of Defense for Acquisition and 
              Technology.
Sec. 816. Pilot programs for testing program manager performance of 
              product support oversight responsibilities for life cycle 
              of acquisition programs.
Sec. 817. Scope of protection of certain information from disclosure.
Sec. 818. Plan for rapid transition from completion of small business 
              innovation research into defense acquisition programs.
Sec. 819. Five-year authority for Secretary of the Navy to exchange 
              certain items.
Sec. 820. Permanent authority for use of major range and test facility 
              installations by commercial entities.
Sec. 821.  Inventory exchange authorized for certain fuel delivery 
              contract.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

      Subtitle A--Department of Defense Officers and Organization

Sec. 901. Reduction in number of Assistant Secretary of Defense 
              positions.
Sec. 902. Repeal of statutory requirement for position of Assistant 
              Secretary of Defense for Command, Control, 
              Communications, and Intelligence.
Sec. 903. Independent task force on transformation and Department of 
              Defense organization.
Sec. 904. Authority to expand the National Defense University.

[[Page H8101]]

Sec. 905. Center for Hemispheric Defense Studies.
Sec. 906. Restructuring of administration of Fisher Houses.
Sec. 907. Management reform for research, development, test, and 
              evaluation activities.

         Subtitle B--Department of Defense Financial Management

Sec. 911. Improved accounting for defense contract services.
Sec. 912. Report on Department of Defense financial management 
              improvement plan.
Sec. 913. Study of feasibility of performance of Department of Defense 
              finance and accounting functions by private sector 
              sources or other Federal sources.
Sec. 914. Limitation on reorganization and consolidation of operating 
              locations of the Defense Finance and Accounting Service.
Sec. 915. Annual report on resources allocated to support and mission 
              activities.

             Subtitle C--Joint Warfighting Experimentation

Sec. 921. Findings concerning joint warfighting experimentation.
Sec. 922. Sense of Congress concerning joint warfighting 
              experimentation.
Sec. 923. Reports on joint warfighting experimentation.

                       Subtitle D--Other Matters

Sec. 931. Further reductions in defense acquisition and support 
              workforce.
Sec. 932. Limitation on operation and support funds for the Office of 
              the Secretary of Defense.
Sec. 933. Clarification and simplification of responsibilities of 
              Inspectors General regarding whistleblower protections.
Sec. 934. Repeal of requirement relating to assignment of tactical 
              airlift mission to reserve components.
Sec. 935. Consultation with Marine Corps on major decisions directly 
              concerning Marine Corps aviation.

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Incorporation of classified annex.
Sec. 1003. Authorization of prior emergency supplemental appropriations 
              for fiscal year 1998.
Sec. 1004. Authorization of appropriations for Bosnia peacekeeping 
              operations for fiscal year 1999.
Sec. 1005. Partnership for Peace Information Management System.
Sec. 1006. United States contribution to NATO common-funded budgets in 
              fiscal year 1999.
Sec. 1007. Liquidity of working-capital funds.
Sec. 1008. Termination of authority to manage working-capital funds and 
              certain activities through the Defense Business 
              Operations Fund.
Sec. 1009. Clarification of authority to retain recovered costs of 
              disposals in working-capital funds.
Sec. 1010. Crediting of amounts recovered from third parties for loss 
              or damage to personal property shipped or stored at 
              Government expense.

                Subtitle B--Naval Vessels and Shipyards

Sec. 1011. Revision to requirement for continued listing of two Iowa-
              class battleships on the Naval Vessel Register.
Sec. 1012. Transfer of U.S.S. NEW JERSEY.
Sec. 1013. Homeporting of the U.S.S. IOWA in San Francisco, California.
Sec. 1014. Sense of Congress concerning the naming of an LPD-17 vessel.
Sec. 1015. Reports on naval surface fire-support capabilities.
Sec. 1016. Long-term charter of three vessels in support of submarine 
              rescue, escort, and towing.
Sec. 1017. Transfer of obsolete Army tugboat.

 Subtitle C--Counter Drug Activities and Other Assistance for Civilian 
                            Law Enforcement

Sec. 1021. Department of Defense support to other agencies for counter-
              drug activities.
Sec. 1022. Department of Defense support of National Guard drug 
              interdiction and counter-drug activities.
Sec. 1023. Department of Defense counter-drug activities in transit 
              zone.

       Subtitle D--Miscellaneous Report Requirements and Repeals

Sec. 1031. Repeal of unnecessary and obsolete reporting provisions.
Sec. 1032. Report regarding use of tagging system to identify 
              hydrocarbon fuels used by Department of Defense.

                Subtitle E--Armed Forces Retirement Home

Sec. 1041. Appointment of Director and Deputy Director of the Naval 
              Home.
Sec. 1042. Revision of inspection requirements relating to Armed Forces 
              Retirement Home.
Sec. 1043. Clarification of land conveyance authority, Armed Forces 
              Retirement Home.

            Subtitle F--Matters Relating to Defense Property

Sec. 1051. Plan for improved demilitarization of excess and surplus 
              defense property.
Sec. 1052. Transfer of F-4 Phantom II aircraft to foundation.

            Subtitle G--Other Department of Defense Matters

Sec. 1061. Pilot program on alternative notice of receipt of legal 
              process for garnishment of Federal pay for child support 
              and alimony.
Sec. 1062. Training of special operations forces with friendly foreign 
              forces.
Sec. 1063. Research grants competitively awarded to service academies.
Sec. 1064. Department of Defense use of frequency spectrum.
Sec. 1065. Department of Defense aviation accident investigations.
Sec. 1066. Investigation of actions relating to 174th Fighter Wing of 
              New York Air National Guard.
Sec. 1067. Program to commemorate 50th anniversary of the Korean War.
Sec. 1068. Designation of America's National Maritime Museum.
Sec. 1069. Technical and clerical amendments.

                       Subtitle H--Other Matters

Sec. 1071. Act constituting Presidential approval of vessel war risk 
              insurance requested by the Secretary of Defense.
Sec. 1072. Extension and reauthorization of Defense Production Act of 
              1950.
Sec. 1073. Requirement that burial flags furnished by the Secretary of 
              Veterans Affairs be wholly produced in the United States.
Sec. 1074. Sense of Congress concerning tax treatment of principal 
              residence of members of Armed Forces while away from home 
              on active duty.
Sec. 1075. Clarification of State authority to tax compensation paid to 
              certain employees.

           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

Sec. 1101. Defense Advanced Research Projects Agency experimental 
              personnel management program for technical personnel.
Sec. 1102. Maximum pay rate comparability for faculty members of the 
              United States Air Force Institute of Technology.
Sec. 1103. Authority for release to Coast Guard of drug test results of 
              civil service mariners of the Military Sealift Command.
Sec. 1104. Limitations on back pay awards.
Sec. 1105. Restoration of annual leave accumulated by civilian 
              employees at installations in the Republic of Panama to 
              be closed pursuant to the Panama Canal Treaty of 1977.
Sec. 1106. Repeal of program providing preference for employment of 
              military spouses in military child care facilities.
Sec. 1107. Observance of certain holidays at duty posts outside the 
              United States.
Sec. 1108. Continuation of random drug testing program for certain 
              Department of Defense employees.
Sec. 1109. Department of Defense employee voluntary early retirement 
              authority.

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

    Subtitle A--United States Armed Forces in Bosnia and Herzegovina

Sec. 1201. Findings.
Sec. 1202. Sense of Congress.
Sec. 1203. Presidential reports.
Sec. 1204. Secretary of Defense reports on operations in Bosnia and 
              Herzegovina.
Sec. 1205. Definitions.

         Subtitle B--Matters Relating to Contingency Operations

Sec. 1211. Report on involvement of Armed Forces in contingency and 
              ongoing operations.
Sec. 1212. Submission of report on objectives of a contingency 
              operation with requests for funding for the operation.

            Subtitle C--Matters Relating to NATO and Europe

Sec. 1221. Limitation on United States share of costs of NATO 
              expansion.
Sec. 1222. Report on military capabilities of an expanded NATO 
              alliance.
Sec. 1223. Reports on the development of the European security and 
              defense identity.

                       Subtitle D--Other Matters

Sec. 1231. Limitation on assignment of United States forces for certain 
              United Nations purposes.
Sec. 1232. Prohibition on restriction of Armed Forces under Kyoto 
              Protocol to the United Nations Framework Convention on 
              Climate Change.
Sec. 1233. Defense burdensharing.
Sec. 1234. Transfer of excess UH-1 Huey and AH-1 Cobra helicopters to 
              foreign countries.
Sec. 1235. Transfers of naval vessels to certain foreign countries.
Sec. 1236. Repeal of landmine moratorium.
Sec. 1237. Application of authorities under the International Emergency 
              Economic Powers Act to Communist Chinese military 
              companies.

  TITLE XIII--COOPERATIVE THREAT REDUCTION WITH STATES OF THE FORMER 
                              SOVIET UNION

Sec. 1301. Specification of Cooperative Threat Reduction Programs and 
              funds.
Sec. 1302. Funding allocations.
Sec. 1303. Prohibition on use of funds for specified purposes.
Sec. 1304. Limitation on use of funds for chemical weapons destruction 
              activities in Russia.

[[Page H8102]]

Sec. 1305. Limitation on use of funds for biological weapons 
              proliferation prevention activities in Russia.
Sec. 1306. Cooperative counter proliferation program.
Sec. 1307. Requirement to submit summary of amounts requested by 
              project category.
Sec. 1308. Report on biological weapons programs in Russia.
Sec. 1309. Report on individuals with expertise in former Soviet 
              weapons of mass destruction programs.

 TITLE XIV--DOMESTIC PREPAREDNESS FOR DEFENSE AGAINST WEAPONS OF MASS 
                              DESTRUCTION

Sec. 1401. Short title.
Sec. 1402. Domestic preparedness for response to threats of terrorist 
              use of weapons of mass destruction.
Sec. 1403. Report on domestic emergency preparedness.
Sec. 1404. Threat and risk assessments.
Sec. 1405. Advisory panel to assess domestic response capabilities for 
              terrorism involving weapons of mass destruction.

   TITLE XV--MATTERS RELATING TO ARMS CONTROL, EXPORT CONTROLS, AND 
                          COUNTERPROLIFERATION

                    Subtitle A--Arms Control Matters

Sec. 1501. One-year extension of limitation on retirement or 
              dismantlement of strategic nuclear delivery systems.
Sec. 1502. Transmission of executive branch reports providing Congress 
              with classified summaries of arms control developments.
Sec. 1503. Report on adequacy of emergency communications capabilities 
              between United States and Russia.
Sec. 1504. Russian nonstrategic nuclear weapons.

                 Subtitle B--Satellite Export Controls

Sec. 1511. Sense of Congress.
Sec. 1512. Certification of exports of missile equipment or technology 
              to China.
Sec. 1513. Satellite controls under the United States Munitions List.
Sec. 1514. National security controls on satellite export licensing.
Sec. 1515. Report on export of satellites for launch by People's 
              Republic of China.
Sec. 1516. Related items defined.

                Subtitle C--Other Export Control Matters

Sec. 1521. Authority for export control activities of the Department of 
              Defense.
Sec. 1522. Release of export information by Department of Commerce to 
              other agencies for purpose of national security 
              assessment.
Sec. 1523. Nuclear export reporting requirement.
Sec. 1524. Execution of objection authority within the Department of 
              Defense.

                Subtitle D--Counterproliferation Matters

Sec. 1531. One-year extension of counterproliferation authorities for 
              support of United Nations Special Commission on Iraq.
Sec. 1532. Sense of Congress on nuclear tests in South Asia.
Sec. 1533. Report on requirements for response to increased missile 
              threat in Asia-Pacific region.

            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. Modification of authority to carry out fiscal year 1998 
              projects.

                            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 to accept road construction project, Marine 
              Corps Base, Camp Lejeune, North Carolina.

                         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.

                      TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land 
              acquisition projects.
Sec. 2402. Improvements to military family housing units.
Sec. 2403. Energy conservation projects.
Sec. 2404. Authorization of appropriations, Defense Agencies.
Sec. 2405. Repeal of fiscal year 1997 authorization of appropriations 
              for certain military housing improvement program.
Sec. 2406. Modification of authority to carry out certain fiscal year 
              1995 projects.
Sec. 2407. Modification of authority to carry out fiscal year 1990 
              project.

   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. Modification of authority to carry out fiscal year 1998 
              project.

        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 1996 
              projects.
Sec. 2703. Extension of authorization of fiscal year 1995 project.
Sec. 2704. Effective date.

                    TITLE XXVIII--GENERAL PROVISIONS

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

Sec. 2801. Architectural and engineering services and construction 
              design.
Sec. 2802. Expansion of Army overseas family housing lease authority.
Sec. 2803. Definition of ancillary supporting facilities under 
              alternative authority for acquisition and improvement of 
              military housing.
Sec. 2804. Purchase of build-to-lease family housing at Eielson Air 
              Force Base, Alaska.
Sec. 2805. Report relating to improvement of housing for unaccompanied 
              members.

        Subtitle B--Real Property and Facilities Administration

Sec. 2811. Exceptions to real property transaction reporting 
              requirements for war and certain emergency and other 
              operations.
Sec. 2812. Restoration of Department of Defense lands used by another 
              Federal agency.
Sec. 2813. Outdoor recreation development on military installations for 
              disabled veterans, military dependents with disabilities, 
              and other persons with disabilities.
Sec. 2814. Report on leasing and other alternative uses of non-excess 
              military property.
Sec. 2815. Report on implementation of utility system conveyance 
              authority.

            Subtitle C--Defense Base Closure and Realignment

Sec. 2821. Applicability of property disposal laws to leases at 
              installations to be closed or realigned under base 
              closure laws.
Sec. 2822. Elimination of waiver authority regarding prohibition 
              against certain conveyances of property at Naval Station, 
              Long Beach, California.
Sec. 2823. Payment of stipulated penalties assessed under CERCLA in 
              connection with McClellan Air Force Base, California.

                      Subtitle D--Land Conveyances

                        Part I--Army Conveyances

Sec. 2831. Modification of land conveyance, Army Reserve Center, 
              Youngstown, Ohio.
Sec. 2832. Release of interests in real property, former Kennebec 
              Arsenal, Augusta, Maine.
Sec. 2833. Release, waiver, or conveyance of interests in real 
              property, former Redstone Army Arsenal property, Alabama.
Sec. 2834. Conveyance of utility systems, Lone Star Army Ammunition 
              Plant, Texas.
Sec. 2835. Conveyance of water rights and related interests, Rocky 
              Mountain Arsenal, Colorado, for purposes of acquisition 
              of perpetual contracts for water.
Sec. 2836. Land conveyance, Army Reserve Center, Massena, New York.
Sec. 2837. Land conveyance, Army Reserve Center, Ogdensburg, New York.
Sec. 2838. Land conveyance, Army Reserve Center, Jamestown, Ohio.
Sec. 2839. Land conveyance, Army Reserve Center, Peoria, Illinois.
Sec. 2840. Land conveyance, Army Reserve Center, Bridgton, Maine.
Sec. 2841. Land conveyance, Fort Sheridan, Illinois.
Sec. 2842. Land conveyance, Skaneateles, New York.
Sec. 2843. Land conveyance, Indiana Army Ammunition Plant, Charlestown, 
              Indiana.
Sec. 2844. Land conveyance, Volunteer Army Ammunition Plant, 
              Chattanooga, Tennessee.
Sec. 2845. Land conveyance, Stewart Army Sub-Post, New Windsor, New 
              York.

                       Part II--Navy Conveyances

Sec. 2851. Conveyance of easement, Marine Corps Base, Camp Pendleton, 
              California.
Sec. 2852. Land exchange, Naval Reserve Readiness Center, Portland, 
              Maine.
Sec. 2853. Land conveyance, Naval and Marine Corps Reserve facility, 
              Youngstown, Ohio.
Sec. 2854. Land conveyance, Naval Air Reserve Center, Minneapolis, 
              Minnesota.

[[Page H8103]]

                    Part III--Air Force Conveyances

Sec. 2861. Modification of land conveyance, Eglin Air Force Base, 
              Florida.
Sec. 2862. Modification of land conveyance, Finley Air Force Station, 
              North Dakota.
Sec. 2863. Land conveyance, Lake Charles Air Force Station, Louisiana.
Sec. 2864. Land conveyance, Air Force Housing Facility, La Junta, 
              Colorado.

                       Subtitle E--Other Matters

Sec. 2871. Modification of authority relating to Department of Defense 
              Laboratory Revitalization Demonstration Program.
Sec. 2872. Repeal of prohibition on joint use of Gray Army Airfield, 
              Fort Hood, Texas, with civil aviation.
Sec. 2873. Modification of demonstration project for purchase of fire, 
              security, police, public works, and utility services from 
              local government agencies.
Sec. 2874. Designation of building containing Navy and Marine Corps 
              Reserve Center, Augusta, Georgia.

               TITLE XXIX--JUNIPER BUTTE RANGE WITHDRAWAL

Sec. 2901. Short title.
Sec. 2902. Withdrawal and reservation.
Sec. 2903. Map and legal description.
Sec. 2904. Agency agreement.
Sec. 2905. Right-of-way grants.
Sec. 2906. Indian sacred sites.
Sec. 2907. Actions concerning ranching operations in withdrawn area.
Sec. 2908. Management of withdrawn and reserved lands.
Sec. 2909. Integrated natural resource management plan.
Sec. 2910. Memorandum of understanding.
Sec. 2911. Maintenance of roads.
Sec. 2912. Management of withdrawn and acquired mineral resources.
Sec. 2913. Hunting, fishing, and trapping.
Sec. 2914. Water rights.
Sec. 2915. Duration of withdrawal.
Sec. 2916. Environmental remediation of relinquished withdrawn lands or 
              upon termination of withdrawal.
Sec. 2917. Delegation of authority.
Sec. 2918. Hold harmless.
Sec. 2919. Authorization of appropriations.

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

                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.
Sec. 3129. Transfers of defense environmental management funds.

   Subtitle C--Program Authorizations, Restrictions, and Limitations

Sec. 3131. Permanent extension of funding prohibition relating to 
              international cooperative stockpile stewardship.
Sec. 3132. Support of ballistic missile defense activities of the 
              Department of Defense.
Sec. 3133. Nonproliferation activities.
Sec. 3134. Licensing of certain mixed oxide fuel fabrication and 
              irradiation facilities.
Sec. 3135. Continuation of processing, treatment, and disposition of 
              legacy nuclear materials.
Sec. 3136. Authority for Department of Energy federally funded research 
              and development centers to participate in merit-based 
              technology research and development programs.
Sec. 3137. Activities of Department of Energy facilities.
Sec. 3138. Hanford overhead and service center costs.
Sec. 3139. Hanford waste tank cleanup program reforms.
Sec. 3140. Hanford Health Information Network.
Sec. 3141. Hazardous materials management and emergency response 
              training program.
Sec. 3142. Support for public education in the vicinity of Los Alamos 
              National Laboratory, New Mexico.
Sec. 3143. Relocation of National Atomic Museum, Albuquerque, New 
              Mexico.
Sec. 3144. Tritium production.

                       Subtitle D--Other Matters

Sec. 3151. Study and plan relating to worker and community transition 
              assistance.
Sec. 3152. Extension of authority for appointment of certain 
              scientific, engineering, and technical personnel.
Sec. 3153. Requirement for plan to modify employment system used by 
              Department of Energy in defense environmental management 
              programs.
Sec. 3154. Department of Energy nuclear materials couriers.
Sec. 3155. Increase in maximum rate of pay for scientific, engineering, 
              and technical personnel responsible for safety at defense 
              nuclear facilities.
Sec. 3156. Extension of authority of Department of Energy to pay 
              voluntary separation incentive payments.
Sec. 3157. Repeal of fiscal year 1998 statement of policy on stockpile 
              stewardship program.
Sec. 3158. Report on stockpile stewardship criteria.
Sec. 3159. Panel to assess the reliability, safety, and security of the 
              United States nuclear stockpile.
Sec. 3160. International cooperative information exchange.
Sec. 3161. Protection against inadvertent release of restricted data 
              and formerly restricted data.
Sec. 3162. Sense of Congress regarding treatment of Formerly Utilized 
              Sites Remedial Action Program under a nondefense 
              discretionary budget function.
Sec. 3163. Reports relating to tritium production.

          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. Use of stockpile funds for certain environmental 
              remediation, restoration, waste management, and 
              compliance activities.

                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Definitions.
Sec. 3402. Authorization of appropriations.
Sec. 3403. Disposal of Naval Petroleum Reserve Numbered 2.
Sec. 3404. Disposal of Naval Petroleum Reserve Numbered 3.
Sec. 3405. Disposal of Oil Shale Reserve Numbered 2.
Sec. 3406. Administration.

                  TITLE XXXV--PANAMA CANAL COMMISSION

Sec. 3501. Short title; references to Panama Canal Act of 1979.
Sec. 3502. Authorization of expenditures.
Sec. 3503. Purchase of vehicles.
Sec. 3504. Expenditures only in accordance with treaties.
Sec. 3505. Donations to the Commission.
Sec. 3506. Agreements for United States to provide post-transfer 
              administrative services for certain employee benefits.
Sec. 3507. Sunset of United States overseas benefits just before 
              transfer.
Sec. 3508. Central examining office.
Sec. 3509. Liability for vessel accidents.
Sec. 3510. Panama Canal Board of Contract Appeals.
Sec. 3511. Restatement of requirement that Secretary of Defense 
              designee on Panama Canal Commission supervisory board be 
              a current officer of the Department of Defense.
Sec. 3512. Technical amendments.

                  TITLE XXXVI--MARITIME ADMINISTRATION

Sec. 3601. Authorization of appropriations for fiscal year 1999.
Sec. 3602. Authority to convey National Defense Reserve Fleet vessel.
Sec. 3603. Authority to convey certain National Defense Reserve Fleet 
              vessels.
Sec. 3604. Clearinghouse for maritime information.
Sec. 3605. Conveyance of NDRF vessel ex-USS LORAIN COUNTY.

 TITLE XXXVII--INCREASED MONITORING OF PRODUCTS MADE WITH FORCED LABOR

Sec. 3701. Authorization for additional customs personnel to monitor 
              the importation of products made with forced labor.
Sec. 3702. Reporting requirement on forced labor products destined for 
              the United States market.
Sec. 3703. Renegotiating memoranda of understanding on forced labor.

             TITLE XXXVIII--FAIR TRADE IN AUTOMOTIVE PARTS

Sec. 3801. Short title.
Sec. 3802. Definitions.
Sec. 3803. Re-establishment of initiative on automotive parts sales to 
              Japan.
Sec. 3804. Establishment of Special Advisory Committee on automotive 
              parts sales in Japanese and other Asian markets.
Sec. 3805. Expiration date.

                      TITLE XXXIX--RADIO FREE ASIA

Sec. 3901. Short title.
Sec. 3902. Authorization of appropriations for increased funding for 
              Radio Free Asia and Voice of America broadcasting to 
              China.
Sec. 3903. Reporting requirement.

     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.

[[Page H8104]]

            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. Multiyear procurement authority for Longbow Hellfire Missile 
              program.
Sec. 112. Conditions for award of a second-source procurement contract 
              for the Family of Medium Tactical Vehicles.
Sec. 113. Armored system modernization.
Sec. 114. Reactive armor tiles.
Sec. 115. Extension of authority to carry out Armament Retooling and 
              Manufacturing Support Initiative.

                       Subtitle C--Navy Programs

Sec. 121. CVN-77 nuclear aircraft carrier program.
Sec. 122. Increase in amount authorized to be excluded from cost 
              limitation for Seawolf submarine program.
Sec. 123. Multiyear procurement authority for the Department of the 
              Navy.
Sec. 124. Annual GAO review of F/A-18E/F aircraft program.

                     Subtitle D--Air Force Programs

Sec. 131. F-22 aircraft program.
Sec. 132. C-130J aircraft program.

                       Subtitle E--Other Matters

Sec. 141. Chemical stockpile emergency preparedness program.
Sec. 142. Alternative technologies for destruction of assembled 
              chemical weapons.

              Subtitle A--Authorization of Appropriations

     SEC. 101. ARMY.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1999 for procurement for the Army as follows:
       (1) For aircraft, $1,396,047,000.
       (2) For missiles, $1,228,229,000.
       (3) For weapons and tracked combat vehicles, 
     $1,507,551,000.
       (4) For ammunition, $1,016,255,000.
       (5) For other procurement, $3,344,932,000.

     SEC. 102. NAVY AND MARINE CORPS.

       (a) Navy.--Funds are hereby authorized to be appropriated 
     for fiscal year 1999 for procurement for the Navy as follows:
       (1) For aircraft, $7,642,200,000.
       (2) For weapons, including missiles and torpedoes, 
     $1,223,903,000.
       (3) For shipbuilding and conversion, $6,033,480,000.
       (4) For other procurement, $4,042,975,000.
       (b) Marine Corps.--Funds are hereby authorized to be 
     appropriated for fiscal year 1999 for procurement for the 
     Marine Corps in the amount of $881,896,000.
       (c) Navy and Marine Corps Ammunition.--Funds are hereby 
     authorized to be appropriated for procurement of ammunition 
     for the Navy and the Marine Corps in the amount of 
     $463,339,000.

     SEC. 103. AIR FORCE.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1999 for procurement for the Air Force as follows:
       (1) For aircraft, $8,350,617,000.
       (2) For missiles, $2,210,640,000.
       (3) For ammunition, $383,161,000.
       (4) For other procurement, $6,950,372,000.

     SEC. 104. DEFENSE-WIDE ACTIVITIES.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1999 for Defense-wide procurement in the amount of 
     $1,954,828,000.

     SEC. 105. RESERVE COMPONENTS.

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

     SEC. 106. DEFENSE INSPECTOR GENERAL.

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

     SEC. 107. CHEMICAL DEMILITARIZATION PROGRAM.

       There is hereby authorized to be appropriated for fiscal 
     year 1999 the amount of $803,000,000 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 1999 for the Department of Defense for procurement for 
     carrying out health care programs, projects, and activities 
     of the Department of Defense in the total amount of 
     $402,387,000.

     SEC. 109. DEFENSE EXPORT LOAN GUARANTEE PROGRAM.

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

                       Subtitle B--Army Programs

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

       Beginning with the fiscal year 1999 program year, the 
     Secretary of the Army may, in accordance with section 2306b 
     of title 10, United States Code, enter into a multiyear 
     procurement contract for procurement of the AGM-114 Longbow 
     Hellfire missile.

     SEC. 112. CONDITIONS FOR AWARD OF A SECOND-SOURCE PROCUREMENT 
                   CONTRACT FOR THE FAMILY OF MEDIUM TACTICAL 
                   VEHICLES.

       The Secretary of the Army may award a second-source 
     procurement contract for the production of the Family of 
     Medium Tactical Vehicles only after the Secretary certifies 
     in writing to the congressional defense committees--
       (1) that the total quantity of vehicles within the Family 
     of Medium Tactical Vehicles program that the Secretary will 
     require to be delivered (under all contracts) in any 12-month 
     period will be sufficient to enable the prime contractor to 
     maintain a minimum economic production level;
       (2) that the total cost to the Army of the procurements 
     under the prime and second-source contracts over the period 
     of those contracts will be the same as or lower than the 
     amount that would be the total cost of the procurements if 
     only one such contract were awarded; and
       (3) that the vehicles to be produced under those contracts 
     will be produced with common components that will be 
     interchangeable among similarly configured models.

     SEC. 113. ARMORED SYSTEM MODERNIZATION.

       (a) Funding.--Of the funds appropriated pursuant to the 
     authorization of appropriations in section 101(3) for M1 
     Abrams Tank Modifications--
       (1) $14,300,000 shall be obligated for procurements 
     associated with the M1A1D Applique Integration Program, of 
     which no more than $11,400,000 may be obligated before the 
     end of the 30-day period beginning on the date on which the 
     Secretary of the Army submits the report required under 
     subsection (b); and
       (2) $6,000,000 shall be obligated to develop a M1A2 risk 
     reduction program.
       (b) Report.--(1) Not later than January 31, 1999, the 
     Secretary of the Army shall submit to the congressional 
     defense committees a report on Army armored system 
     modernization programs. The report shall include--
       (A) an assessment of the current acquisition and fielding 
     strategy of the Army for the M1 Abrams Tank and M2A3 Bradley 
     Fighting Vehicle; and
       (B) a description and assessment of alternatives to that 
     strategy, including an assessment of an alternative fielding 
     strategy that provides for placing all of the armored 
     vehicles configured in the latest variant into one heavy 
     corps.
       (2) The assessment of each alternative acquisition and 
     fielding strategy under paragraph (1)(B) shall include the 
     following:
       (A) The relative effects of that strategy on warfighting 
     capabilities in terms of operational effectiveness and 
     training and support efficiencies, taking into consideration 
     the joint warfighting context.
       (B) How that strategy would facilitate the transition to 
     the Future Scout and Cavalry System, the Future Combat 
     System, or other armored systems for the future force 
     structure known as the Army After Next.
       (C) How that strategy fits into the context of overall 
     armored system modernization through 2020.
       (D) Budgetary implications.
       (E) Implications for the national technology and industrial 
     base.
       (F) Innovative techniques and alternatives for maintaining 
     M1A2 System Enhancement Program production.
       (3) The Secretary shall include in the report a draft of 
     any legislation that may be required to execute a given 
     alternative for M1A2 System Enhancement Program production.
       (c) GAO Evaluation.--The Comptroller General shall review 
     the report of the Secretary of the Army under subsection (b) 
     and, not later than 30 days after the date on which that 
     report is submitted to the congressional defense committees, 
     shall submit to those committees a report providing the 
     Comptroller General's views on the conclusions of the 
     Secretary of the Army set forth in that report.

     SEC. 114. REACTIVE ARMOR TILES.

       (a) Limitation.--None of the funds authorized to be 
     appropriated under section 101(3) or 102(b) may be obligated 
     for the procurement of reactive armor tiles until 30 days 
     after the date on which the Secretary of Defense submits to 
     the congressional defense committees the matters specified in 
     subsection (d).
       (b) Exception.--The limitation in subsection (a) does not 
     apply to the obligation of any funds for the procurement of 
     armor tiles for an armored vehicle for which the Secretary of 
     the Army or, in the case of the Marine Corps, the Secretary 
     of the Navy, had established a requirement for such tiles 
     before the date of the enactment of this Act.
       (c) Study Required.--(1) The Secretary of Defense shall 
     contract with an entity independent of the Department of 
     Defense to conduct a study of the operational requirements of 
     the Army and the Marine Corps for reactive armor tiles for 
     armored vehicles and to submit to the Secretary a report on 
     the results of the study.
       (2) The study shall include the following:
       (A) A detailed assessment of the operational requirements 
     of the Army and the Marine Corps for reactive armor tiles for 
     each of the armored vehicles presently in use, including the 
     requirements for each vehicle in its existing configurations 
     and in configurations proposed for the vehicle.

[[Page H8105]]

       (B) For each armored vehicle, an analysis of the costs and 
     benefits of the procurement and installation of the tiles, 
     including a comparison of those costs and benefits with the 
     costs and benefits of any existing upgrade program for the 
     armored vehicle.
       (3) The entity carrying out the study shall request the 
     views of the Secretary of the Army and the Secretary of the 
     Navy.
       (d) Submission to Congressional Committees.--Not later than 
     April 1, 1999, the Secretary of Defense shall submit to the 
     congressional defense committees--
       (1) the report on the study submitted to the Secretary by 
     the entity carrying out the study;
       (2) the comments of the Secretary of the Army and the 
     Secretary of the Navy on the study; and
       (3) for each vehicle for which there is a requirement for 
     reactive armor tiles, as indicated by the results of the 
     study, the Secretary's recommendations as to the number of 
     vehicles to be equipped with such tiles.

     SEC. 115. EXTENSION OF AUTHORITY TO CARRY OUT ARMAMENT 
                   RETOOLING AND MANUFACTURING SUPPORT INITIATIVE.

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

                       Subtitle C--Navy Programs

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

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

     SEC. 122. INCREASE IN AMOUNT AUTHORIZED TO BE EXCLUDED FROM 
                   COST LIMITATION FOR SEAWOLF SUBMARINE PROGRAM.

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

     SEC. 123. MULTIYEAR PROCUREMENT AUTHORITY FOR THE DEPARTMENT 
                   OF THE NAVY.

       (a) Authority for Specified Navy Aircraft Programs.--
     Beginning with the fiscal year 1999 program year, the 
     Secretary of the Navy may, in accordance with section 2306b 
     of title 10, United States Code, enter into a multiyear 
     procurement contract for procurement for the following 
     programs:
       (1) The AV-8B aircraft program.
       (2) The T-45TS aircraft program.
       (3) The E-2C aircraft program.
       (b) Authority for Marine Corps Medium Tactical Vehicle 
     Replacement.--Beginning with the fiscal year 1999 program 
     year, the Secretary of the Navy may, in accordance with 
     section 2306b of title 10, United States Code, enter into a 
     multiyear procurement contract to procure the Marine Corps 
     Medium Tactical Vehicle Replacement.

     SEC. 124. ANNUAL GAO REVIEW OF F/A-18E/F AIRCRAFT PROGRAM.

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

                     Subtitle D--Air Force Programs

     SEC. 131. F-22 AIRCRAFT PROGRAM.

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

     SEC. 132. C-130J AIRCRAFT PROGRAM.

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

                       Subtitle E--Other Matters

     SEC. 141. CHEMICAL STOCKPILE EMERGENCY PREPAREDNESS PROGRAM.

       (a) Assistance to State and Local Governments.--Section 
     1412 of the Department of Defense Authorization Act, 1986 
     (Public Law 99-145; 50 U.S.C. 1521), is amended by adding at 
     the end of subsection (c) the following:
       ``(4)(A) In coordination with the Secretary of the Army and 
     in accordance with agreements between the Secretary of the 
     Army and the Director of the Federal Emergency Management 
     Agency, the Director shall carry out a program to provide 
     assistance to State and local governments in developing 
     capabilities to respond to emergencies involving risks to the 
     public health or safety within their jurisdictions that are 
     identified by the Secretary as being risks resulting from--
       ``(i) the storage of lethal chemical agents and munitions 
     referred to in subsection (a) at military installations in 
     the continental United States; or
       ``(ii) the destruction of such agents and munitions at 
     facilities referred to in paragraph (1)(B).
       ``(B) No assistance may be provided under this paragraph 
     after the completion of the destruction of the United States' 
     stockpile of lethal chemical agents and munitions.
       ``(C) Not later than December 15 of each year, the Director 
     shall transmit a report to Congress on the activities carried 
     out under this paragraph during the fiscal year preceding the 
     fiscal year in which the report is submitted.''.
       (b) Program Funding.--Section 1412(f) of such Act (51 
     U.S.C. 1521(f)) is amended--
       (1) by striking out ``Identification of Funds.--Funds'' and 
     inserting in lieu thereof ``Identification of Funds.--(1) 
     Funds''; and
       (2) by adding at the end the following new paragraph:
       ``(2) Amounts appropriated to the Secretary for the purpose 
     of carrying out subsection (c)(4) shall be promptly made 
     available to the Director of the Federal Emergency Management 
     Agency.''.
       (c) Periodic Reports.--Section 1412(g) of such Act (50 
     U.S.C. 1521(g)) is amended--
       (1) in paragraph (2)(B)--
       (A) by striking out ``and'' at the end of clause (v);
       (B) by striking out the period at the end of clause (vi) 
     and inserting in lieu thereof ``; and''; and

[[Page H8106]]

       (C) by adding at the end the following new clause:
       ``(vii) grants to State and local governments to assist 
     those governments in carrying out functions relating to 
     emergency preparedness and response in accordance with 
     subsection (c)(3).'';
       (2) by redesignating subparagraph (B) (as amended by 
     paragraph (1)) and subparagraph (C) of paragraph (2) as 
     subparagraphs (C) and (D), respectively; and
       (3) by inserting after paragraph (2)(A) the following new 
     subparagraph (B):
       ``(B) A site-by-site description of actions taken to assist 
     State and local governments (either directly or through the 
     Federal Emergency Management Agency) in carrying out 
     functions relating to emergency preparedness and response 
     in accordance with subsection (c)(3).''.

     SEC. 142. ALTERNATIVE TECHNOLOGIES FOR DESTRUCTION OF 
                   ASSEMBLED CHEMICAL WEAPONS.

       (a) Program Management.--The program manager for the 
     Assembled Chemical Weapons Assessment shall continue to 
     manage the development and testing (including demonstration 
     and pilot-scale testing) of technologies for the destruction 
     of lethal chemical munitions that are potential or 
     demonstrated alternatives to the baseline incineration 
     program. In performing such management, the program manager 
     shall act independently of the program manager for Chemical 
     Demilitarization and shall report to the Under Secretary of 
     Defense for Acquisition and Technology.
       (b) Post-Demonstration Activities.--(1) The program manager 
     for the Assembled Chemical Weapons Assessment may carry out 
     those activities necessary to ensure that an alternative 
     technology for the destruction of lethal chemical munitions 
     can be implemented immediately after--
       (A) the technology has been demonstrated to be successful; 
     and
       (B) the Under Secretary of Defense for Acquisition and 
     Technology has submitted a report on the demonstration to 
     Congress that includes a decision to proceed with the pilot-
     scale facility phase for an alternative technology.
       (2) To prepare for the immediate implementation of any such 
     technology, the program manager may, during fiscal years 1998 
     and 1999, take the following actions:
       (A) Establish program requirements.
       (B) Prepare procurement documentation.
       (C) Develop environmental documentation.
       (D) Identify and prepare to meet public outreach and public 
     participation requirements.
       (E) Prepare to award a contract for the design, 
     construction, and operation of a pilot facility for the 
     technology to the provider team for the technology not later 
     than December 30, 1999.
       (c) Independent Evaluation.--The Under Secretary of Defense 
     for Acquisition and Technology shall provide for an 
     independent evaluation of the cost and schedule of the 
     Assembled Chemical Weapons Assessment, which shall be 
     performed and submitted to the Under Secretary not later than 
     September 30, 1999. The evaluation shall be performed by a 
     nongovernmental organization qualified to make such an 
     evaluation.
       (d) Pilot Facilities Contracts.--(1) The Under Secretary of 
     Defense for Acquisition and Technology shall determine 
     whether to proceed with pilot-scale testing of a technology 
     referred to in paragraph (2) in time to award a contract for 
     the design, construction, and operation of a pilot facility 
     for the technology to the provider team for the technology 
     not later than December 30, 1999. If the Under Secretary 
     determines to proceed with such testing, the Under Secretary 
     shall (exercising the acquisition authority of the Secretary 
     of Defense) so award a contract not later than such date.
       (2) Paragraph (1) applies to an alternative technology for 
     the destruction of lethal chemical munitions, other than 
     incineration, that the Under Secretary--
       (A) certifies in writing to Congress is--
       (i) as safe and cost effective for disposing of assembled 
     chemical munitions as is incineration of such munitions; and
       (ii) is capable of completing the destruction of such 
     munitions on or before the later of the date by which the 
     destruction of the munitions would be completed if 
     incineration were used or the deadline date for completing 
     the destruction of the munitions under the Chemical Weapons 
     Convention; and
       (B) determines as satisfying the Federal and State 
     environmental and safety laws that are applicable to the use 
     of the technology and to the design, construction, and 
     operation of a pilot facility for use of the technology.
       (3) The Under Secretary shall consult with the National 
     Research Council in making determinations and certifications 
     for the purpose of paragraph (2).
       (4) In this subsection, the term ``Chemical Weapons 
     Convention'' means the Convention on the Prohibition of 
     Development, Production, Stockpiling and Use of Chemical 
     Weapons and on their Destruction, opened for signature on 
     January 13, 1993, together with related annexes and 
     associated documents.
       (e) Plan for Pilot Program.--If the Secretary of Defense 
     proceeds with a pilot program under section 152(f) of the 
     National Defense Authorization Act for Fiscal Year 1996 
     (Public Law 104-106; 110 Stat. 214; 50 U.S.C. 1521(f)), the 
     Secretary shall prepare a plan for the pilot program and 
     shall submit to Congress a report on such plan (including 
     information on the cost of, and schedule for, implementing 
     the pilot program).
       (f) Funding.--(1) Of the amount authorized to be 
     appropriated under section 107, funds shall be available for 
     the program manager for the Assembled Chemical Weapons 
     Assessment for the following:
       (A) Demonstrations of alternative technologies under the 
     Assembled Chemical Weapons Assessment.
       (B) Planning and preparation to proceed from demonstration 
     of an alternative technology immediately into the development 
     of a pilot-scale facility for the technology, including 
     planning and preparation for--
       (i) continued development of the technology leading to 
     deployment of the technology for use;
       (ii) satisfaction of requirements for environmental 
     permits;
       (iii) demonstration, testing, and evaluation;
       (iv) initiation of actions to design a pilot plant;
       (v) provision of support at the field office or depot level 
     for deployment of the technology for use; and
       (vi) educational outreach to the public to engender support 
     for the deployment.
       (C) The independent evaluation of cost and schedule 
     required under subsection (c).
       (2) Funds authorized to be appropriated under section 
     107(1) are authorized to be used for awarding contracts in 
     accordance with subsection (d) and for taking any other 
     action authorized in this section.
       (f) Assembled Chemical Weapons Assessment Defined.--In this 
     section, the term ``Assembled Chemical Weapons Assessment'' 
     means the pilot program carried out under section 8065 of the 
     Department of Defense Appropriations Act, 1997 (section 
     101(b) of Public Law 104-208; 110 Stat. 3009-101; 50 U.S.C. 
     1521 note).

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

              Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for basic and applied research.

    Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Management responsibility for Navy mine countermeasures 
              programs.
Sec. 212. Future aircraft carrier transition technologies.
Sec. 213. Manufacturing technology program.
Sec. 214. Sense of Congress on the Defense Science and Technology 
              Program.
Sec. 215. Next Generation Internet Program.
Sec. 216. Crusader self-propelled artillery system program.
Sec. 217. Airborne Laser Program.
Sec. 218. Enhanced Global Positioning System program.

                 Subtitle C--Ballistic Missile Defense

Sec. 231. Sense of Congress on National Missile Defense coverage.
Sec. 232. Limitation on funding for the Medium Extended Air Defense 
              System.
Sec. 233. Limitation on funding for Cooperative Ballistic Missile 
              Defense programs.
Sec. 234. Sense of Congress with respect to Ballistic Missile Defense 
              cooperation with Russia.
Sec. 235. Ballistic Missile Defense program elements.
Sec. 236. Restructuring of acquisition strategy for Theater High-
              Altitude Area Defense (THAAD) system.

                       Subtitle D--Other Matters

Sec. 241. Extension of authority to carry out certain prototype 
              projects.
Sec. 242. NATO alliance ground surveillance concept definition.
Sec. 243. NATO common-funded Civil Budget.
Sec. 244. Executive agent for cooperative research program of the 
              Department of Defense and the Department of Veterans 
              Affairs.
Sec. 245. Review of pharmacological interventions for reversing brain 
              injury.
Sec. 246. Pilot program for revitalizing the laboratories and test and 
              evaluation centers of the Department of Defense.
Sec. 247. Chemical warfare defense.
Sec. 248. Landmine alternatives.

              Subtitle A--Authorization of Appropriations

     SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1999 for the use of the Department of Defense for 
     research, development, test, and evaluation as follows:
       (1) For the Army, $4,657,012,000.
       (2) For the Navy, $8,305,011,000.
       (3) For the Air Force, $13,918,728,000.
       (4) For Defense-wide activities, $9,127,187,000, of which--
       (A) $249,106,000 is authorized for the activities of the 
     Director, Test and Evaluation; and
       (B) $29,245,000 is authorized for the Director of 
     Operational Test and Evaluation.

     SEC. 202. AMOUNT FOR BASIC AND APPLIED RESEARCH.

       (a) Fiscal Year 1999.--Of the amounts authorized to be 
     appropriated by section 201, $4,179,905,000 shall be 
     available for basic research and applied research projects.
       (b) Basic Research and Applied Research Defined.--For 
     purposes of this section, the term ``basic research and 
     applied research'' means work funded in program elements for 
     defense research and development under Department of Defense 
     category 6.1 or 6.2.

    Subtitle B--Program Requirements, Restrictions, and Limitations

     SEC. 211. MANAGEMENT RESPONSIBILITY FOR NAVY MINE 
                   COUNTERMEASURES PROGRAMS.

       Section 216(a) of the National Defense Authorization Act 
     for Fiscal Years 1992 and 1993 (Public Law 102-190; 105 Stat. 
     1317, as amended) is amended by striking out ``through 1999'' 
     and inserting in lieu thereof ``through 2003''.

     SEC. 212. FUTURE AIRCRAFT CARRIER TRANSITION TECHNOLOGIES.

       Of the funds authorized to be appropriated under section 
     201(2) for Carrier System Development (program element 
     0603512N), $50,000,000

[[Page H8107]]

     shall be available only for research, development, test, 
     evaluation, and incorporation into the CVN-77 nuclear 
     aircraft carrier program of technologies designed to 
     transition to, demonstrate enhanced capabilities for, or 
     mitigate cost and technical risks of, the CV(X) aircraft 
     carrier program.

     SEC. 213. MANUFACTURING TECHNOLOGY PROGRAM.

       (a) Requirements Relating to Competition.--Subsection 
     (d)(1) of section 2525 of title 10, United States Code, is 
     amended--
       (1) by striking out ``(1) Competitive'' and inserting in 
     lieu thereof ``(1)(A) In accordance with the policy stated in 
     section 2374 of this title, competitive''; and
       (2) by adding at the end the following new subparagraph:
       ``(B) For each grant awarded and each contract, cooperative 
     agreement, or other transaction entered into on a cost-share 
     basis under the program, the ratio of contract recipient cost 
     to Government cost shall be determined by competitive 
     procedures. For a project for which the Government receives 
     an offer from only one offeror, the contracting officer shall 
     negotiate the ratio of contract recipient cost to Government 
     cost that represents the best value to the Government.''.
       (b) Requirements Relating to Cost Share Waivers.--
     Subsection (d)(2) of such section is amended--
       (1) by redesignating subparagraphs (A), (B), and (C) as 
     clauses (i), (ii), and (iii), respectively;
       (2) by inserting ``(A)'' after ``(2)''; and
       (3) by adding at the end the following new subparagraphs:
       ``(B) For any grant awarded or contract, cooperative 
     agreement, or other transaction entered into on a basis other 
     than a cost-sharing basis because of a determination made 
     under subparagraph (A), the transaction file for the project 
     concerned must document the rationale for the determination.
       ``(C) The Secretary of Defense may delegate the authority 
     to make determinations under subparagraph (A) only to the 
     Under Secretary of Defense for Acquisition and Technology or 
     a service acquisition executive, as appropriate.''.
       (c) Cost Share Goal.--Subsection (d) of such section is 
     amended--
       (1) by striking out paragraph (4); and
       (2) in paragraph (3)--
       (A) by striking out ``At least'' and inserting in lieu 
     thereof ``As a goal, at least'';
       (B) by striking out ``shall'' and inserting in lieu thereof 
     ``should''; and
       (C) by adding at the end the following: ``The Secretary of 
     Defense, in coordination with the Secretaries of the military 
     departments and upon recommendation of the Under Secretary of 
     Defense for Acquisition and Technology, shall establish 
     annual objectives to meet such goal.''.
       (d) Additional Information To Be Included in Five-Year 
     Plan.--Subsection (e)(2) of such section is amended to read 
     as follows:
       ``(2) The plan shall include the following:
       ``(A) An assessment of the effectiveness of the program.
       ``(B) An assessment of the extent to which the costs of 
     projects are being shared by the following:
       ``(i) Commercial enterprises in the private sector.
       ``(ii) Department of Defense program offices, including 
     weapon system program offices.
       ``(iii) Departments and agencies of the Federal Government 
     outside the Department of Defense.
       ``(iv) Institutions of higher education.
       ``(v) Other institutions not operated for profit.
       ``(vi) Other sources.''.

     SEC. 214. SENSE OF CONGRESS ON THE DEFENSE SCIENCE AND 
                   TECHNOLOGY PROGRAM.

       (a) Funding Requirements for the Defense Science and 
     Technology Program Budget.--It is the sense of Congress that, 
     for each of the fiscal years 2000 through 2008, it should be 
     an objective of the Secretary of Defense to increase the 
     budget for the Defense Science and Technology Program for the 
     fiscal year over the budget for that program for the 
     preceding fiscal year by a percent that is at least two 
     percent above the rate of inflation as determined by the 
     Office of Management and Budget.
       (b) Guidelines for the Defense Science and Technology 
     Program.--
       (1) Relationship of defense science and technology program 
     to university research.--It is the sense of Congress that the 
     following should be key objectives of the Defense Science and 
     Technology Program:
       (A) The sustainment of research capabilities in scientific 
     and engineering disciplines critical to the Department of 
     Defense.
       (B) The education and training of the next generation of 
     scientists and engineers in disciplines that are relevant to 
     future defense systems, particularly through the conduct of 
     basic research.
       (C) The continued support of the Defense Experimental 
     Program to Stimulate Competitive Research and research 
     programs at historically black colleges and universities and 
     minority institutions.
       (2) Relationship of the defense science and technology 
     program to commercial research and technology.--(A) It is the 
     sense of Congress that, in supporting projects within the 
     Defense Science and Technology Program, the Secretary of 
     Defense should attempt to leverage commercial research, 
     technology, products, and processes for the benefit of the 
     Department of Defense.
       (B) It is the sense of Congress that funds made available 
     for projects and programs of the Defense Science and 
     Technology Program should be used only for the benefit of the 
     Department of Defense, which includes--
       (i) the development of technology that has only military 
     applications;
       (ii) the development of militarily useful, commercially 
     viable technology; and
       (iii) the adaptation of commercial technology, products, or 
     processes for military purposes.
       (3) Synergistic management of research and development.--It 
     is the sense of Congress that the Secretary of Defense should 
     have the flexibility to allocate a combination of funds 
     available for the Department of Defense for basic and applied 
     research and for advanced development to support any 
     individual project or program within the Defense Science and 
     Technology Program, but such flexibility should not change 
     the allocation of funds in any fiscal year among basic and 
     applied research and advanced development.
       (4) Management of science and technology.--It is the sense 
     of Congress that--
       (A) management and funding for the Defense Science and 
     Technology Program for each military department should 
     receive a level of priority and leadership attention equal to 
     the level received by program acquisition, and the Secretary 
     of each military department should ensure that a senior 
     official in the department holds the appropriate title and 
     responsibility to ensure effective oversight and emphasis on 
     science and technology;
       (B) to ensure an appropriate long-term focus for 
     investments, a sufficient percentage of science and 
     technology funds should be directed toward new technology 
     areas, and annual reviews should be conducted for ongoing 
     research areas to ensure that those funded initiatives are 
     either integrated into acquisition programs or discontinued 
     when appropriate;
       (C) the Secretary of each military department should take 
     appropriate steps to ensure that sufficient numbers of 
     officers and civilian employees in the department hold 
     advanced degrees in technical fields; and
       (D) of particular concern, the Secretary of the Air Force 
     should take appropriate measures to ensure that sufficient 
     numbers of scientists and engineers are maintained to address 
     the technological challenges faced in the areas of air, 
     space, and information technology.
       (c) Study.--
       (1) Requirement.--The Secretary of Defense, in cooperation 
     with the National Research Council of the National Academy of 
     Sciences, shall conduct a study on the technology base of the 
     Department of Defense.
       (2) Matters covered.--The study shall--
       (A) result in recommendations on the minimum requirements 
     for maintaining a technology base that is sufficient, based 
     on both historical developments and future projections, to 
     project superiority in air and space weapons systems and in 
     information technology;
       (B) address the effects on national defense and civilian 
     aerospace industries and information technology of reducing 
     funding below the goal described in subsection (a); and
       (C) result in recommendations on the appropriate levels of 
     staff with baccalaureate, masters, and doctorate degrees, and 
     the optimal ratio of civilian and military staff holding such 
     degrees, to ensure that science and technology functions of 
     the Department of Defense remain vital.
       (3) Report.--Not later than 120 days after the date on 
     which the study required under paragraph (1) is completed, 
     the Secretary shall submit to Congress a report on the 
     results of the study.
       (d) Definitions.--In this section:
       (1) The term ``Defense Science and Technology Program'' 
     means basic and applied research and advanced development.
       (2) The term ``basic and applied research'' means work 
     funded in program elements for defense research and 
     development under Department of Defense category 6.1 or 6.2.
       (3) The term ``advanced development'' means work funded in 
     program elements for defense research and development under 
     Department of Defense category 6.3.

     SEC. 215. NEXT GENERATION INTERNET PROGRAM.

       (a) Funding.--Of the funds authorized to be appropriated 
     under section 201(4), $53,000,000 shall be available for the 
     Next Generation Internet program.
       (b) Limitation.--Notwithstanding the enactment of any other 
     provision of law after the date of the enactment of this Act, 
     amounts may be appropriated for fiscal year 1999 for 
     research, development, test, and evaluation by the Department 
     of Defense for the Next Generation Internet program only 
     pursuant to the authorization of appropriations under section 
     201(4).

     SEC. 216. CRUSADER SELF-PROPELLED ARTILLERY SYSTEM PROGRAM.

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

[[Page H8108]]

     avoid affordability issues associated with the current 
     schedule and to allow for maturation of weight and propellant 
     technologies.
       (c) Submission of Report.--The Secretary of the Army shall 
     submit the report not later than March 1, 1999.

     SEC. 217. AIRBORNE LASER PROGRAM.

       (a) Assessment of Technical and Operational Aspects.--The 
     Secretary of Defense shall conduct an assessment of the 
     technical and operational aspects of the Airborne Laser 
     Program. In conducting the assessment, the Secretary shall 
     establish an independent team of persons from outside the 
     Department of Defense who are experts in relevant fields to 
     review the technical and operational aspects of the Airborne 
     Laser Program. The team shall assess the following:
       (1) Whether additional ground testing or other forms of 
     data collection should be completed before initial 
     modification of a commercial aircraft to an Airborne Laser 
     configuration.
       (2) The adequacy of exit criteria for the program 
     definition and risk reduction phase of the Airborne Laser 
     Program.
       (3) The adequacy of current Airborne Laser operational 
     concepts.
       (b) Report on Assessment.--Not later than March 15, 1999, 
     the Secretary shall submit to Congress a report on the 
     assessment. The report shall include the Secretary's findings 
     and any recommendations that the Secretary considers 
     appropriate.
       (c) Funding for Program.--Of the amount authorized to be 
     appropriated under section 201(3), $235,219,000 shall be 
     available for the Airborne Laser Program.
       (d) Limitation.--Of the amount made available pursuant to 
     subsection (c), not more than $185,000,000 may be obligated 
     until 30 days after the Secretary submits the report required 
     by subsection (b).

     SEC. 218. ENHANCED GLOBAL POSITIONING SYSTEM PROGRAM.

       (a) Policy on Priority for Development of Enhanced GPS 
     System.--The development of an enhanced Global Positioning 
     System is an urgent national security priority.
       (b) Development Required.--To fulfill the requirements 
     described in section 279(b) of the National Defense 
     Authorization Act for Fiscal Year 1996 (Public Law 104-106; 
     110 Stat. 243) and section 2281 of title 10, United States 
     Code, the Secretary of Defense shall develop an enhanced 
     Global Positioning System in accordance with the priority 
     declared in subsection (a). The enhanced Global Positioning 
     System shall include the following elements:
       (1) An evolved satellite system that includes increased 
     signal power and other improvements such as regional-level 
     directional signal enhancements.
       (2) Enhanced receivers and user equipment that are capable 
     of providing military users with direct access to encrypted 
     Global Positioning System signals.
       (3) To the extent funded by the Secretary of 
     Transportation, additional civil frequencies and other 
     enhancements for civil users.
       (c) Sense of Congress Regarding Funding.--It is the sense 
     of Congress that--
       (1) the Secretary of Defense should ensure that the future-
     years defense program provides for sufficient funding to 
     develop and deploy an enhanced Global Positioning System in 
     accordance with the priority declared in subsection (a); and
       (2) the Secretary of Transportation should provide 
     sufficient funding to support additional civil frequencies 
     for the Global Positioning System and other enhancements of 
     the system for civil users.
       (d) Plan for Development of Enhanced Global Positioning 
     System.--Not later than April 15, 1999, the Secretary of 
     Defense shall submit to Congress a plan for carrying out 
     the requirements of subsection (b).
       (e) Delayed Effective Date for Limitation on Procurement of 
     Systems Not GPS-Equipped.--Section 152(b) of the National 
     Defense Authorization Act for Fiscal Year 1994 (Public Law 
     103-160; 107 Stat. 1578) is amended by striking out ``2000'' 
     and inserting in lieu thereof ``2005''.
       (f) Funding From Authorized Appropriations for Fiscal Year 
     1999.--Of the amounts authorized to be appropriated under 
     section 201(3), $44,000,000 shall be available to establish 
     and carry out an enhanced Global Positioning System program.

                 Subtitle C--Ballistic Missile Defense

     SEC. 231. SENSE OF CONGRESS ON NATIONAL MISSILE DEFENSE 
                   COVERAGE.

       It is the sense of the Congress that--
       (1) any national missile defense system deployed by the 
     United States must provide effective defense against limited, 
     accidental, or unauthorized ballistic missile attack for all 
     50 States; and
       (2) the territories of the United States should be afforded 
     effective protection against ballistic missile attack.

     SEC. 232. LIMITATION ON FUNDING FOR THE MEDIUM EXTENDED AIR 
                   DEFENSE SYSTEM.

       None of the funds appropriated for fiscal year 1999 for the 
     Ballistic Missile Defense Organization may be obligated for 
     the Medium Extended Air Defense System (MEADS) until the 
     Secretary of Defense certifies to Congress that the future-
     years defense program includes sufficient programmed funding 
     for that system to complete the design and development phase. 
     If the Secretary does not submit such a certification by 
     January 1, 1999, then (effective as of that date) the funds 
     appropriated for fiscal year 1999 for the Ballistic Missile 
     Defense Organization that are allocated for the MEADS program 
     shall be available to support alternative programmatic and 
     technical approaches to meeting the requirement for mobile 
     theater missile defense that was to be met by the MEADS 
     system.

     SEC. 233. LIMITATION ON FUNDING FOR COOPERATIVE BALLISTIC 
                   MISSILE DEFENSE PROGRAMS.

       Of the funds appropriated for fiscal year 1999 for the 
     Russian-American Observational Satellite (RAMOS) program, 
     $5,000,000 may not be obligated until the Secretary of 
     Defense certifies to Congress that the Department of Defense 
     has received detailed information concerning the nature, 
     extent, and military implications of the transfer of 
     ballistic missile technology from Russian sources to Iran.

     SEC. 234. SENSE OF CONGRESS WITH RESPECT TO BALLISTIC MISSILE 
                   DEFENSE COOPERATION WITH RUSSIA.

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

     SEC. 235. BALLISTIC MISSILE DEFENSE PROGRAM ELEMENTS.

       (a) BMD Program Elements.--(1) Chapter 9 of title 10, 
     United States Code, is amended by inserting after section 222 
     the following new section:

     ``Sec. 223. Ballistic missile defense programs: program 
       elements

       ``(a) Program Elements Specified.--In the budget 
     justification materials submitted to Congress in support of 
     the Department of Defense budget for any fiscal year (as 
     submitted with the budget of the President under section 
     1105(a) of title 31), the amount requested for activities of 
     the Ballistic Missile Defense Organization shall be set forth 
     in accordance with the following program elements:
       ``(1) The Patriot system.
       ``(2) The Navy Area system.
       ``(3) The Theater High-Altitude Area Defense system.
       ``(4) The Navy Theater Wide system.
       ``(5) The Medium Extended Air Defense System.
       ``(6) Joint Theater Missile Defense.
       ``(7) National Missile Defense.
       ``(8) Support Technologies.
       ``(9) Family of Systems Engineering and Integration.
       ``(10) Ballistic Missile Defense Technical Operations.
       ``(11) Threat and Countermeasures.
       ``(12) International Cooperative Programs.
       ``(b) Treatment of Major Defense Acquisition Programs.--
     Amounts requested for Theater Missile Defense and National 
     Missile Defense major defense acquisition programs shall be 
     specified in individual, dedicated program elements, and 
     amounts appropriated for those programs shall be available 
     only for Ballistic Missile Defense activities.
       ``(c) Management and Support.--The amount requested for 
     each program element specified in subsection (a) shall 
     include requests for the amounts necessary for the management 
     and support of the programs, projects, and activities 
     contained in that program element.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     222 the following new item:
``223. Ballistic missile defense programs: program elements.''.
       (b) Repeal of Superseded Provision.--Section 251 of the 
     National Defense Authorization Act for Fiscal Year 1996 
     (Public Law 104-106; 10 U.S.C. 221 note) is repealed.

     SEC. 236. RESTRUCTURING OF ACQUISITION STRATEGY FOR THEATER 
                   HIGH-ALTITUDE AREA DEFENSE (THAAD) SYSTEM.

       (a) Establishment of Competitive Contractor.--(1) The 
     Secretary of Defense shall take appropriate steps to 
     implement technical and price competition for the development 
     and production of the interceptor missile for the Theater 
     High-Altitude Area Defense (THAAD) system.
       (2) The Secretary shall take such steps as necessary to 
     ensure that the prime contractor (as of the date of the 
     enactment of this Act) for the THAAD system provides the 
     cooperation needed to establish the technical and price 
     competition required in subsection (a).
       (3) The Secretary shall use the authority provided in 
     section 2304(c)(2) of title 10, United States Code, to 
     expedite the implementation of paragraphs (1) and (2).
       (4) Of the amount made available under section 201(4) for 
     the THAAD System, $29,600,000 shall be available to establish 
     the technical and price competition required in paragraph 
     (1).
       (b) Cost Sharing Arrangement.--(1) The Secretary of Defense 
     shall contractually establish with the THAAD interceptor 
     prime contractor an appropriate arrangement for sharing 
     between the United States and that contractor the costs for 
     flight test failures of the interceptor missile for the THAAD 
     system beginning with the flight test numbered 9.
       (2) For purposes of paragraph (1), the term ``THAAD 
     interceptor prime contractor'' means the firm that as of May 
     14, 1998, is the prime contractor for the interceptor missile 
     for the Theater High-Altitude Area Defense system.
       (c) Engineering and Manufacturing Development Phase for 
     Other Elements of the THAAD System.--The Secretary of Defense 
     may proceed with the milestone approval process for the 
     Engineering and Manufacturing Development phase for the 
     Battle Management and Command, Control, and Communications 
     (BM/C3) element of the THAAD system and for the 
     Ground Based Radar (GBR) element for that system without 
     regard to the stage of development of the interceptor missile 
     for that system.

[[Page H8109]]

       (d) Plan for Contingency Capability.--(1) The Secretary of 
     Defense shall prepare a plan that would allow for deployment 
     of THAAD missiles and the other elements of the THAAD system 
     referred to in subsection (c) in response to theater 
     ballistic missile threats that evolve before United States 
     military forces are equipped with the objective configuration 
     of those missiles and elements.
       (2) The Secretary shall submit a report on the plan to the 
     congressional defense committees by December 15, 1998.
       (e) Limitation on Entering Engineering and Manufacturing 
     Development Phase.--(1) The Secretary of Defense may not 
     approve the commencement of the Engineering and Manufacturing 
     Development phase for the interceptor missile for the THAAD 
     system until there have been 3 successful tests of that 
     missile.
       (2) For purposes of paragraph (1), a successful test of the 
     interceptor missile of the THAAD system is a body-to-body 
     intercept by that missile of a ballistic missile target.

                       Subtitle D--Other Matters

     SEC. 241. EXTENSION OF AUTHORITY TO CARRY OUT CERTAIN 
                   PROTOTYPE PROJECTS.

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

     SEC. 242. NATO ALLIANCE GROUND SURVEILLANCE CONCEPT 
                   DEFINITION.

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

     SEC. 243. NATO COMMON-FUNDED CIVIL BUDGET.

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

     SEC. 244. EXECUTIVE AGENT FOR COOPERATIVE RESEARCH PROGRAM OF 
                   THE DEPARTMENT OF DEFENSE AND THE DEPARTMENT OF 
                   VETERANS AFFAIRS.

       The Secretary of Defense, acting through the Army Medical 
     Research and Materiel Command and the Naval Operational 
     Medicine Institute, shall be the executive agent for the use 
     of funds available from the amount authorized to be 
     appropriated by section 201(4) for the Cooperative Research 
     Program of the Department of Defense and the Department of 
     Veterans Affairs.

     SEC. 245. REVIEW OF PHARMACOLOGICAL INTERVENTIONS FOR 
                   REVERSING BRAIN INJURY.

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

     SEC. 246. PILOT PROGRAM FOR REVITALIZING THE LABORATORIES AND 
                   TEST AND EVALUATION CENTERS OF THE DEPARTMENT 
                   OF DEFENSE.

       (a) Pilot Program.--(1) The Secretary of Defense may carry 
     out a pilot program to demonstrate improved cooperative 
     relationships with universities and other private sector 
     entities for the performance of research and development 
     functions.
       (2) Under the pilot program, the Secretary of Defense shall 
     provide the director of one science and technology 
     laboratory, and the director of one test and evaluation 
     center, of each military department with authority for the 
     following:
       (A) To explore innovative methods for quickly, efficiently, 
     and fairly entering into cooperative relationships with 
     universities and other private sector entities with 
     respect to the performance of research and development 
     functions.
       (B) To waive any restrictions on the demonstration and 
     implementation of such methods that are not required by law.
       (C) To develop or expand innovative methods of operation 
     that provide more defense research for each dollar of cost, 
     including to carry out such initiatives as focusing on the 
     performance of core functions and adopting more business-like 
     practices.
       (3) In selecting the laboratories and centers for 
     participation in the pilot program, the Secretary shall 
     consider laboratories and centers where innovative management 
     techniques have been demonstrated, particularly as documented 
     under sections 1115 through 1119 of title 31, United States 
     Code, relating to Government agency performance and results.
       (4) The Secretary may carry out the pilot program at each 
     selected laboratory and center for a period of three years 
     beginning not later than March 1, 1999.
       (b) Reports.--(1) Not later than March 1, 1999, the 
     Secretary of Defense shall submit a report on the 
     implementation of the pilot program to Congress. The report 
     shall include the following:
       (A) Each laboratory and center selected for the pilot 
     program.
       (B) To the extent possible, a description of the innovative 
     concepts that are to be tested at each laboratory or center.
       (C) The criteria to be used for measuring the success of 
     each concept to be tested.
       (2) Promptly after the expiration of the period for 
     participation of a laboratory or center in the pilot program, 
     the Secretary of Defense shall submit to Congress a final 
     report on the participation of the laboratory or center in 
     the pilot program. The report shall contain the following:
       (A) A description of the concepts tested.
       (B) The results of the testing.
       (C) The lessons learned.
       (D) Any proposal for legislation that the Secretary 
     recommends on the basis of the experience at the laboratory 
     or center under the pilot program.
       (c) Commendation.--Congress commends the Secretary of 
     Defense for the progress made by the science and technology 
     laboratories and test and evaluation centers of the 
     Department of Defense and encourages the Secretary to take 
     the actions necessary to ensure continued progress for the 
     laboratories and test and evaluation centers in developing 
     cooperative relationships with universities and other private 
     sector entities for the performance of research and 
     development functions.

     SEC. 247. CHEMICAL WARFARE DEFENSE.

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

     SEC. 248. LANDMINE ALTERNATIVES.

       (a) Availability of Funds.--(1) Of the amounts authorized 
     to be appropriated in section 201, not more than $19,200,000 
     shall be available for activities relating to the 
     identification, adaptation, modification, research, and 
     development of existing and new technologies and concepts 
     that--

[[Page H8110]]

       (A) would provide a combat capability that is equivalent to 
     the combat capability provided by non-self destructing anti-
     personnel landmines;
       (B) would provide a combat capability that is equivalent to 
     the combat capability provided by anti-personnel submunitions 
     used in mixed anti-tank mine systems; or
       (C) would provide a combat capability that is equivalent to 
     the combat capability provided by current mixed mine systems.
       (2) Of the amount available under paragraph (1)--
       (A) not more than $17,200,000 shall be made available for 
     activities referred to in subparagraph (A) of that paragraph 
     for the current efforts of the Army referred to as the Non-
     Self Destruct Alternative; and
       (B) not more than $2,000,000 shall be made available for 
     activities referred to in subparagraphs (B) or (C) of that 
     paragraph that relate to anti-personnel submunitions used in 
     mixed mine systems or an alternative for mixed munitions.
       (b) Funding for Research Into Alternatives to Anti-
     Personnel Submunitions Used in Mixed Mine Systems or an 
     Alternative for Mixed Munitions.--The Secretary shall include 
     with the materials submitted to Congress with the budget for 
     fiscal year 2000 under section 1105 of title 31, United 
     States Code, an explanation of any funds requested to support 
     a search for existing and new technologies and concepts that 
     could provide a combat capability equivalent to the combat 
     capability provided by anti-personnel submunitions used in 
     mixed mine systems or an alternative to mixed munitions.
       (c) Studies.--The Secretary of Defense shall enter into two 
     contracts, each with an appropriate scientific organization--
       (1) to carry out a study on existing and new technologies 
     and concepts referred to in subsection (a); and
       (2) to submit to the Secretary a report on the study, 
     including any recommendations considered appropriate by the 
     scientific organization.
       (d) Report.--Not later than April 1 of 2000 and 2001, the 
     Secretary shall submit to the congressional defense 
     committees a report describing the progress made in 
     identifying technologies and concepts referred to in 
     subsection (a). At the same time the report is submitted, the 
     Secretary shall transmit to such committees copies of the 
     reports (and recommendations, if any) received by the 
     Secretary from the scientific organizations that carried out 
     the studies referred to in subsection (c).

                  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.

    Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 311. Refurbishment of M1-A1 tanks.
Sec. 312. Operation of prepositioned fleet, National Training Center, 
              Fort Irwin, California.
Sec. 313. Berthing space at Norfolk Naval Shipyard, Virginia.
Sec. 314. NATO common-funded military budget.

                  Subtitle C--Environmental Provisions

Sec. 321. Settlement of claims of foreign governments for environmental 
              cleanup of overseas sites formerly used by the Department 
              of Defense.
Sec. 322. Authority to pay negotiated settlement for environmental 
              cleanup of formerly used defense sites in Canada.
Sec. 323. Removal of underground storage tanks.
Sec. 324. Report regarding polychlorinated biphenyl waste under 
              Department of Defense control overseas.
Sec. 325. Modification of deadline for submittal to Congress of annual 
              reports on environmental activities.
Sec. 326. Submarine solid waste control.
Sec. 327. Arctic Military Environmental Cooperation Program.
Sec. 328. Sense of Congress regarding oil spill prevention training for 
              personnel on board Navy vessels.

               Subtitle D--Information Technology Issues

Sec. 331. Additional information technology responsibilities of Chief 
              Information Officers.
Sec. 332. Defense-wide electronic mall system for supply purchases.
Sec. 333. Priority funding to ensure year 2000 compliance of 
              information technology and national security systems.
Sec. 334. Evaluation of year 2000 compliance as part of training 
              exercises programs.
Sec. 335. Continuity of essential operations at risk of failure because 
              of information technology and national security systems 
              that are not year 2000 compliant.

         Subtitle E--Defense Infrastructure Support Improvement

Sec. 341. Clarification of definition of depot-level maintenance and 
              repair.
Sec. 342. Reporting and analysis requirements before change of 
              commercial and industrial type functions to private 
              sector performance.
Sec. 343. Notifications of determinations of military items as being 
              commercial items for purposes of the exception to 
              requirements regarding core logistics capabilities.
Sec. 344. Oversight of development and implementation of automated 
              identification technology.
Sec. 345. Contractor-operated civil engineering supply stores program.
Sec. 346. Conditions on expansion of functions performed under prime 
              vendor contracts for depot-level maintenance and repair.
Sec. 347. Best commercial inventory practices for management of 
              secondary supply items.
Sec. 348. Personnel reductions in Army Materiel Command.
Sec. 349. Inventory management of in-transit items.
Sec. 350. Review of Defense Automated Printing Service functions.
Sec. 351. Development of plan for establishment of core logistics 
              capabilities for maintenance and repair of C-17 aircraft.

  Subtitle F--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 361. Continuation of management and funding of Defense Commissary 
              Agency through the Office of the Secretary of Defense.
Sec. 362. Expansion of current eligibility of Reserves for commissary 
              benefits.
Sec. 363. Costs payable to the Department of Defense and other Federal 
              agencies for services provided to the Defense Commissary 
              Agency.
Sec. 364. Collection of dishonored checks presented at commissary 
              stores.
Sec. 365. Restrictions on patron access to, and purchases in, overseas 
              commissaries and exchange stores.
Sec. 366. Repeal of requirement for Air Force to sell tobacco products 
              to enlisted personnel.
Sec. 367. Prohibition on consolidation or other organizational changes 
              of Department of Defense retail systems.
Sec. 368. Defense Commissary Agency telecommunications.
Sec. 369. Survey of commissary store patrons regarding satisfaction 
              with commissary store merchandise.

                       Subtitle G--Other Matters

Sec. 371. Eligibility requirements for attendance at Department of 
              Defense domestic dependent elementary and secondary 
              schools.
Sec. 372. Assistance to local educational agencies that benefit 
              dependents of members of the Armed Forces and Department 
              of Defense civilian employees.
Sec. 373. Department of Defense readiness reporting system.
Sec. 374. Specific emphasis of program to investigate fraud, waste, and 
              abuse within Department of Defense.
Sec. 375. Condition for providing financial assistance for support of 
              additional duties assigned to the Army National Guard.
Sec. 376. Demonstration program to improve quality of personal property 
              shipments of members.
Sec. 377. Pilot program for acceptance and use of landing fees charged 
              for use of domestic military airfields by civil aircraft.
Sec. 378. Strategic plan for expansion of distance learning 
              initiatives.
Sec. 379. Public availability of operating agreements between military 
              installations and financial institutions.

              Subtitle A--Authorization of Appropriations

     SEC. 301. OPERATION AND MAINTENANCE FUNDING.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1999 for the use of the Armed Forces and other 
     activities and agencies of the Department of Defense for 
     expenses, not otherwise provided for, for operation and 
     maintenance, in amounts as follows:
       (1) For the Army, $17,002,563,000.
       (2) For the Navy, $21,577,702,000.
       (3) For the Marine Corps, $2,528,603,000.
       (4) For the Air Force, $18,690,633,000.
       (5) For Defense-wide activities, $10,550,076,000.
       (6) For the Army Reserve, $1,198,022,000.
       (7) For the Naval Reserve, $920,639,000.
       (8) For the Marine Corps Reserve, $117,893,000.
       (9) For the Air Force Reserve, $1,722,796,000.
       (10) For the Army National Guard, $2,564,315,000.
       (11) For the Air National Guard, $3,047,433,000.
       (12) For the Defense Inspector General, $130,764,000.
       (13) For the United States Court of Appeals for the Armed 
     Forces, $7,324,000.
       (14) For Environmental Restoration, Army, $370,640,000.
       (15) For Environmental Restoration, Navy, $274,600,000.
       (16) For Environmental Restoration, Air Force, 
     $372,100,000.
       (17) For Environmental Restoration, Defense-wide, 
     $25,091,000.
       (18) For Environmental Restoration, Formerly Used Defense 
     Sites, $195,000,000.
       (19) For Overseas Humanitarian, Disaster, and Civic Aid 
     programs, $50,000,000.
       (20) For Drug Interdiction and Counter-drug Activities, 
     Defense-wide, $725,582,000.
       (21) For the Kaho'olawe Island Conveyance, Remediation, and 
     Environmental Restoration Trust Fund, $15,000,000.
       (22) For Defense Health Program, $9,617,435,000.
       (23) For Cooperative Threat Reduction programs, 
     $440,400,000.
       (24) For Overseas Contingency Operations Transfer Fund, 
     $746,900,000.

     SEC. 302. WORKING CAPITAL FUNDS.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1999 for the use of the

[[Page H8111]]

     Armed Forces and other activities and agencies of the 
     Department of Defense for providing capital for working 
     capital and revolving funds in amounts as follows:
       (1) For the Defense Working Capital Funds, $1,076,571,000.
       (2) For the National Defense Sealift Fund, $669,566,000.

     SEC. 303. ARMED FORCES RETIREMENT HOME.

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

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

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

    Subtitle B--Program Requirements, Restrictions, and Limitations

     SEC. 311. REFURBISHMENT OF M1-A1 TANKS.

       Of the amount authorized to be appropriated pursuant to 
     section 301(1) for operation and maintenance for the Army, 
     $31,000,000 shall be available only for the refurbishment of 
     up to 70 M1-A1 tanks under the AIM-XXI program.

     SEC. 312. OPERATION OF PREPOSITIONED FLEET, NATIONAL TRAINING 
                   CENTER, FORT IRWIN, CALIFORNIA.

       Of the amount authorized to be appropriated pursuant to 
     section 301(1) for operation and maintenance for the Army, 
     $60,200,000 shall be available only to pay costs associated 
     with the operation of the prepositioned fleet of equipment 
     during training rotations at the National Training Center, 
     Fort Irwin, California.

     SEC. 313. BERTHING SPACE AT NORFOLK NAVAL SHIPYARD, VIRGINIA.

       Of the amount authorized to be appropriated pursuant to 
     section 301(2) for operation and maintenance for the Navy, 
     $6,000,000 may be available for the purpose of relocating the 
     U.S.S. WISCONSIN, which is currently in a reserve status at 
     the Norfolk Naval Shipyard, Virginia, to a suitable location 
     in order to increase available berthing space at the 
     shipyard.

     SEC. 314. NATO COMMON-FUNDED MILITARY BUDGET.

       Of the amount authorized to be appropriated pursuant to 
     section 301(1) for operation and maintenance for the Army, 
     $227,377,000 shall be available for contributions for the 
     common-funded Military Budget of the North Atlantic Treaty 
     Organization.

                  Subtitle C--Environmental Provisions

     SEC. 321. SETTLEMENT OF CLAIMS OF FOREIGN GOVERNMENTS FOR 
                   ENVIRONMENTAL CLEANUP OF OVERSEAS SITES 
                   FORMERLY USED BY THE DEPARTMENT OF DEFENSE.

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

     SEC. 322. AUTHORITY TO PAY NEGOTIATED SETTLEMENT FOR 
                   ENVIRONMENTAL CLEANUP OF FORMERLY USED DEFENSE 
                   SITES IN CANADA.

       (a) Findings.--Congress makes the following findings with 
     respect to the authorization of payment of settlement with 
     Canada in subsection (b) regarding environmental cleanup at 
     formerly used defense sites in Canada:
       (1) A unique and longstanding national security alliance 
     exists between the United States and Canada.
       (2) The sites covered by the settlement were formerly used 
     by the United States and Canada for their mutual defense.
       (3) There is no formal treaty or international agreement 
     between the United States and Canada regarding the 
     environmental cleanup of the sites.
       (4) Environmental contamination at some of the sites could 
     pose a substantial risk to the health and safety of the 
     United States citizens residing in States near the border 
     between the United States and Canada.
       (5) The United States and Canada reached a negotiated 
     agreement for an ex-gratia reimbursement of Canada in full 
     satisfaction of claims of Canada relating to environmental 
     contamination which agreement was embodied in an exchange of 
     Notes between the Government of the United States and the 
     Government of Canada.
       (6) There is a unique factual basis for authorizing a 
     reimbursement of Canada for environmental cleanup at sites in 
     Canada after the United States departure from such sites.
       (7) The basis for and authorization of such reimbursement 
     does not extend to similar claims by other nations.
       (8) The Government of Canada is committed to spending the 
     entire $100,000,000 of the reimbursement authorized in 
     subsection (b) in the United States, which will benefit 
     United States industry and United States workers.
       (b) Authority To Make Payments.--(1) Subject to subsection 
     (c), the Secretary of Defense may, using funds specified 
     under subsection (d), make a payment described in paragraph 
     (2) for each fiscal year through fiscal year 2008 for 
     purposes of the ex-gratia reimbursement of Canada in full 
     satisfaction of any and all claims asserted against the 
     United States by Canada for environmental cleanup of sites in 
     Canada that were formerly used for the mutual defense of the 
     United States and Canada.
       (2) A payment referred to in paragraph (1) is a payment of 
     $10,000,000, in constant fiscal year 1996 dollars, into the 
     Foreign Military Sales Trust Account for purposes of Canada.
       (c) Condition on Authority For Subsequent Fiscal Years.--A 
     payment may be made under subsection (b) for a fiscal year 
     after fiscal year 1999 only if the Secretary of Defense 
     submits to Congress with the budget for such fiscal year 
     under section 1105 of title 31, United States Code, evidence 
     that the cumulative amount expended by the Government of 
     Canada for environmental cleanup activities in Canada during 
     any fiscal years before such fiscal year in which a payment 
     under that subsection was authorized was an amount equal 
     to or greater than the aggregate amount of the payments 
     under that subsection during such fiscal years.
       (d) Source of Funds.--(1) The payment under subsection (b) 
     for fiscal year 1998 shall be made from amounts appropriated 
     pursuant to section 301(5) of the National Defense 
     Authorization Act for Fiscal Year 1998 (Public Law 105-85; 
     111 Stat. 1669).
       (2) The payment under subsection (b) for fiscal year 1999 
     shall be made from amounts appropriated pursuant to section 
     301(5).
       (3) For a fiscal year after fiscal year 1999, a payment may 
     be made under subsection (b) from amounts appropriated 
     pursuant to the authorization of appropriations for the 
     Department of Defense for such fiscal year for Operation and 
     Maintenance, Defense-Wide.

     SEC. 323. REMOVAL OF UNDERGROUND STORAGE TANKS.

       The Secretary of the Army may use funds available pursuant 
     to the authorization of appropriations in section 301(18) 
     (relating to environmental restoration of formerly used 
     defense sites) for the removal of underground storage tanks 
     to the extent that, and in accordance with such criteria as, 
     the Secretary determines appropriate for the use of such 
     funds.

     SEC. 324. REPORT REGARDING POLYCHLORINATED BIPHENYL WASTE 
                   UNDER DEPARTMENT OF DEFENSE CONTROL OVERSEAS.

       (a) Report Required.--(1) Not later than March 1, 1999, the 
     Secretary of Defense shall submit to the committees specified 
     in paragraph (2) a report on the status of foreign-
     manufactured polychlorinated biphenyl waste. The Secretary 
     shall prepare the report in consultation with the 
     Administrator of the Environmental Protection Agency and the 
     Secretary of State.
       (2) The committees referred to in paragraph (1) are the 
     following:
       (A) The Committee on Armed Services and the Committee on 
     Environment and Public Works of the Senate.
       (B) The Committee on National Security, the Committee on 
     Commerce, and the Committee on Transportation and 
     Infrastructure of the House of Representatives.
       (b) Elements of Report.--The report under subsection (a) 
     shall include the following:
       (1) The identity of each foreign country from which the 
     Secretary of Defense anticipates that the Department of 
     Defense will need to transport foreign-manufactured 
     polychlorinated biphenyl waste into the customs territory of 
     the United States.
       (2) For each foreign country identified under paragraph 
     (1), an inventory of the type, concentrations, and estimated 
     quantity of foreign-manufactured polychlorinated biphenyl 
     waste involved, the reasons why disposal of the 
     polychlorinated biphenyl waste in the foreign country is not 
     available, the identity of other locations or facilities 
     where disposal of the polychlorinated biphenyl waste in an 
     environmentally sound manner is available, and the 
     availability of alternative technologies and mobile units for 
     polychlorinated biphenyl waste treatment or disposal.
       (3) An accounting of all foreign-manufactured 
     polychlorinated biphenyl waste that exists as of the date of 
     the enactment of this Act and as of the date of the report.
       (4) An estimate of the volume of foreign-manufactured 
     polychlorinated biphenyl waste that is likely to be generated 
     annually in each of the next five calendar years, and the 
     basis for each such estimate.
       (5) A description of any hazards to human health or the 
     environment posed by foreign-manufactured polychlorinated 
     biphenyl waste.
       (6) A description of any international or domestic legal 
     impediments that the Department has experienced in disposing 
     of foreign-manufactured polychlorinated biphenyl waste in an 
     environmentally sound manner.
       (7) A description of any efforts undertaken by the 
     Department to seek relief from legal impediments to the 
     disposal of foreign-manufactured polychlorinated 
     biphenyl waste, including the relief available pursuant to 
     section 6(e) or 22 of the Toxic Substances Control Act (15 
     U.S.C. 2605(e), 2621).
       (8) The identity of the possible disposal or treatment 
     facilities in the United States that would be used if 
     foreign-manufactured polychlorinated biphenyl waste were 
     transported

[[Page H8112]]

     into the customs territory of the United States, and the 
     method of disposal or treatment at each such facility.
       (9) A description of Department policy and practice 
     concerning procurement or purchase of foreign-manufactured 
     polychlorinated biphenyls or materials containing foreign-
     manufactured polychlorinated biphenyls.
       (c) Recommendations.--The report shall also include such 
     recommendations as the Secretary of Defense, with the 
     concurrence of the Administrator of the Environmental 
     Protection Agency and the Secretary of State, considers 
     necessary regarding changes to United States law to allow for 
     the disposal, in an environmentally sound manner, of foreign-
     manufactured polychlorinated biphenyl waste, together with a 
     statement of whether and how such changes would be consistent 
     with international law, including the Basel Convention on the 
     Control of Transboundary Movements of Hazardous Wastes and 
     Their Disposal and the Protocol to the Convention on Long-
     Range Transboundary Air Pollution on Persistent Organic 
     Pollutants.
       (d) Definitions.--In this section:
       (1) The term ``polychlorinated biphenyl waste'' means--
       (A) polychlorinated biphenyls; and
       (B) materials containing polychlorinated biphenyls;
     that are ready for disposal.
       (2) The term ``foreign-manufactured polychlorinated 
     biphenyl waste'' means polychlorinated biphenyl waste that is 
     owned by the Department of Defense and situated outside of 
     the United States and that consists of--
       (A) polychlorinated biphenyls; or
       (B) materials containing polychlorinated biphenyls;
     that were manufactured outside of the United States.

     SEC. 325. MODIFICATION OF DEADLINE FOR SUBMITTAL TO CONGRESS 
                   OF ANNUAL REPORTS ON ENVIRONMENTAL ACTIVITIES.

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

     SEC. 326. SUBMARINE SOLID WASTE CONTROL.

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

     SEC. 327. ARCTIC MILITARY ENVIRONMENTAL COOPERATION PROGRAM.

       (a) Activities Under Program.--(1) Subject to paragraph 
     (2), activities under the Arctic Military Environmental 
     Cooperation Program of the Department of Defense shall 
     include cooperative activities on environmental matters in 
     the Arctic region with the military departments and agencies 
     of other countries, including the Russian Federation.
       (2) Activities under the Arctic Military Environmental 
     Cooperation Program may not include any activities for 
     purposes for which funds for Cooperative Threat Reduction 
     programs have been denied or are prohibited, including the 
     purposes for which funds are prohibited by section 1503 of 
     the National Defense Authorization Act for Fiscal Year 1997 
     (Public Law 104-201; 110 Stat. 2732).
       (b) Prior Notice to Congress of Obligation of Funds.--The 
     Secretary of Defense shall submit to the congressional 
     defense committees a report at least 15 days before the 
     obligation of any funds for the Arctic Military Environmental 
     Cooperation Program. Each such report shall specify--
       (1) the amount of the proposed obligation;
       (2) the activities for which the Secretary plans to 
     obligate such funds; and
       (3) the terms of the implementing agreement between the 
     United States and the foreign government concerning the 
     activity to be undertaken, including the financial and other 
     responsibilities of each government.
       (c) Availability of Fiscal Year 1999 Funds.--(1) Of the 
     amount authorized to be appropriated by section 301(5), 
     $4,000,000 shall be available for carrying out the Arctic 
     Military Environmental Cooperation Program.
       (2) Amounts available for the Arctic Military Environmental 
     Cooperation Program under paragraph (1) may not be obligated 
     or expended for that Program until 45 days after the date on 
     which the Secretary of Defense submits to the congressional 
     defense committees a plan for the Program under paragraph 
     (3).
       (3) The plan for the Arctic Military Environmental 
     Cooperation Program under this paragraph shall include the 
     following:
       (A) A statement of the overall goals and objectives of the 
     Program.
       (B) A statement of the proposed activities under the 
     Program and the relationship of such activities to the 
     national security interests of the United States.
       (C) An assessment of the compatibility of the activities 
     set forth under subparagraph (B) with the purposes of the 
     Cooperative Threat Reduction programs of the Department of 
     Defense (including with any prohibitions and limitations 
     applicable to such programs).
       (D) An estimate of the funding to be required and requested 
     in future fiscal years for the activities set forth under 
     subparagraph (B).
       (E) A proposed termination date for the Program.

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

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

               Subtitle D--Information Technology Issues

     SEC. 331. ADDITIONAL INFORMATION TECHNOLOGY RESPONSIBILITIES 
                   OF CHIEF INFORMATION OFFICERS.

       (a) In General.--(1) Chapter 131 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 2223. Information technology: additional 
       responsibilities of Chief Information Officers

       ``(a) Additional Responsibilities of Chief Information 
     Officer of Department of Defense.--In addition to the 
     responsibilities provided for in chapter 35 of title 44 and 
     in section 5125 of the Clinger-Cohen Act of 1996 (40 U.S.C. 
     1425), the Chief Information Officer of the Department of 
     Defense shall--
       ``(1) review and provide recommendations to the Secretary 
     of Defense on Department of Defense budget requests for 
     information technology and national security systems;
       ``(2) ensure the interoperability of information technology 
     and national security systems throughout the Department of 
     Defense;
       ``(3) ensure that information technology and national 
     security systems standards that will apply throughout the 
     Department of Defense are prescribed; and
       ``(4) provide for the elimination of duplicate information 
     technology and national security systems within and between 
     the military departments and Defense Agencies.
       ``(b) Additional Responsibilities of Chief Information 
     Officer of Military Departments.--In addition to the 
     responsibilities provided for in chapter 35 of title 44 and 
     in section 5125 of the Clinger-Cohen Act of 1996 (40 U.S.C. 
     1425), the Chief Information Officer of a military 
     department, with respect to the military department 
     concerned, shall--
       ``(1) review budget requests for all information technology 
     and national security systems;
       ``(2) ensure that information technology and national 
     security systems are in compliance with standards of the 
     Government and the Department of Defense;
       ``(3) ensure that information technology and national 
     security systems are interoperable with other relevant 
     information technology and national security systems of the 
     Government and the Department of Defense; and
       ``(4) coordinate with the Joint Staff with respect to 
     information technology and national security systems.
       ``(c) Definitions.--In this section:
       ``(1) The term `Chief Information Officer' means the senior 
     official designated by the Secretary of Defense or a 
     Secretary of a military department pursuant to section 3506 
     of title 44.
       ``(2) The term `information technology' has the meaning 
     given that term by section 5002 of the Clinger-Cohen Act of 
     1996 (40 U.S.C. 1401).
       ``(3) The term `national security system' has the meaning 
     given that term by section 5142 of the Clinger-Cohen Act of 
     1996 (40 U.S.C. 1452).''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:
``2223. Information technology: additional responsibilities of Chief 
              Information Officers.''.
       (b) Effective Date.--Section 2223 of title 10, United 
     States Code, as added by subsection (a), shall take effect on 
     October 1, 1998.

     SEC. 332. DEFENSE-WIDE ELECTRONIC MALL SYSTEM FOR SUPPLY 
                   PURCHASES.

       (a) Electronic Mall System Defined.--In this section, the 
     term ``electronic mall system'' means an electronic system 
     for displaying, ordering, and purchasing supplies and 
     materiel available from sources within the Department of 
     Defense and from the private sector.
       (b) Development and Management.--(1) Using systems and 
     technology available in the Department of Defense as of the 
     date of the enactment of this Act, the Joint Electronic 
     Commerce Program Office of the Department of Defense shall 
     develop a single, defense-wide electronic mall system, which 
     shall provide a single, defense-wide electronic point of 
     entry and a single view, access, and ordering capability for 
     all Department of Defense electronic catalogs. The Secretary 
     of each military department and the head of each Defense 
     Agency shall provide to

[[Page H8113]]

     the Joint Electronic Commerce Program Office the necessary 
     and requested data to ensure compliance with this 
     paragraph.
       (2) The Defense Logistics Agency, under the direction of 
     the Joint Electronic Commerce Program Office, shall be 
     responsible for maintaining the defense-wide electronic mall 
     system developed under paragraph (1).
       (c) Role of Chief Information Officer.--The Chief 
     Information Officer of the Department of Defense shall be 
     responsible for--
       (1) overseeing the elimination of duplication and overlap 
     among Department of Defense electronic catalogs; and
       (2) ensuring that such catalogs utilize technologies and 
     formats compliant with the requirements of subsection (b).
       (d) Implementation.--Within 180 days after the date of the 
     enactment of this Act, the Chief Information Officer shall 
     develop and provide to the congressional defense committees--
       (1) an inventory of all existing and planned electronic 
     mall systems in the Department of Defense; and
       (2) a schedule for ensuring that each such system is 
     compliant with the requirements of subsection (b).

     SEC. 333. PRIORITY FUNDING TO ENSURE YEAR 2000 COMPLIANCE OF 
                   INFORMATION TECHNOLOGY AND NATIONAL SECURITY 
                   SYSTEMS.

       (a) Funds for Completion of Year 2000 Conversion.--None of 
     the funds authorized to be appropriated pursuant to this Act 
     may (except as provided in subsection (b)) be obligated or 
     expended on the development or modernization of any 
     information technology or national security system of the 
     Department of Defense in use by the Department of Defense 
     (whether or not the system is a mission critical system) if 
     the date-related data processing capability of that system 
     does not meet certification level 1a, 1b, or 2 (as prescribed 
     in the April 1997 publication of the Department of Defense 
     entitled ``Year 2000 Management Plan'').
       (b) Exception for Certain Information Technology and 
     National Security Systems.--The limitation in subsection (a) 
     does not apply to an obligation or expenditure for an 
     information technology or national security system that is 
     reported to the Office of the Secretary of Defense by October 
     1, 1998, in accordance with the preparation instructions for 
     the May 1998 Department of Defense quarterly report on the 
     status of year 2000 compliance, if--
       (1) the obligation or expenditure is directly related to 
     ensuring that the reported system achieves year 2000 
     compliance;
       (2) the system is being developed and fielded to replace, 
     before January 1, 2000, a noncompliant system or a system to 
     be terminated in accordance with the May 1998 Department of 
     Defense quarterly report on the status of year 2000 
     compliance; or
       (3) the obligation or expenditure is required for a 
     particular change that is specifically required by law or 
     that is specifically directed by the Secretary of Defense.
       (c) Unallocated Reductions of Funds Not To Apply to Mission 
     Critical Systems.--Funds authorized to be appropriated 
     pursuant to this Act for mission critical systems are not 
     subject to any unallocated reduction of funds made by or 
     otherwise applicable to funds authorized to be appropriated 
     pursuant to this Act.
       (d) Current Services Operations Not Affected.--Subsection 
     (a) does not prohibit the obligation or expenditure of funds 
     for current services operations of information technology and 
     national security systems.
       (e) Waiver Authority.--The Secretary of Defense may waive 
     subsection (a) on a case-by-case basis with respect to an 
     information technology or national security system if the 
     Secretary provides the congressional defense committees with 
     written notice of the waiver, including the reasons for the 
     waiver and a timeline for the testing and certification of 
     the system as year 2000 compliant.
       (f) Required Report.--(1) Not later than December 1, 1998, 
     the Secretary of Defense shall submit to the congressional 
     defense committees a report describing--
       (A) an executable strategy to be used throughout the 
     Department of Defense to test information technology and 
     national security systems for year 2000 compliance (to 
     include functional capability tests and military exercises);
       (B) the plans of the Department of Defense for ensuring 
     that adequate resources (such as testing facilities, tools, 
     and personnel) are available to ensure that all mission 
     critical systems achieve year 2000 compliance; and
       (C) the criteria and process to be used to certify a system 
     as year 2000 compliant.
       (2) The report shall also include--
       (A) an updated list of all mission critical systems; and
       (B) guidelines for developing contingency plans for the 
     functioning of each information technology or national 
     security system in the event of a year 2000 problem in any 
     such system.
       (g) Capability Contingency Plans.--Not later than December 
     30, 1998, the Secretary of Defense shall have in place 
     contingency plans to ensure continuity of operations for 
     every critical mission or function of the Department of 
     Defense that is dependent on an information technology or 
     national security system.
       (h) Inspector General Evaluation.--The Inspector General of 
     the Department of Defense shall selectively audit information 
     technology and national security systems certified as year 
     2000 compliant to evaluate the ability of systems to 
     successfully operate during the actual year 2000, including 
     the ability of the systems to access and transmit information 
     from point of origin to point of termination.
       (i) Definitions.--For purposes of this section:
       (1) The term ``information technology'' has the meaning 
     given that term in section 5002 of the Clinger-Cohen Act of 
     1996 (40 U.S.C. 1401).
       (2) The term ``national security system'' has the meaning 
     given that term in section 5142 of such Act (40 U.S.C. 1452).
       (3) The term ``development or modernization'' has the 
     meaning given that term in paragraph E of section 180203 of 
     the Department of Defense Financial Management Regulation 
     (DOD 7000.14-R), but does not include any matter covered by 
     subparagraph 3 of that paragraph.
       (4) The term ``current services'' has the meaning given 
     that term in paragraph C of section 180203 of the Department 
     of Defense Financial Management Regulation (DOD 7000.14-R).
       (5) The term ``mission critical system'' means an 
     information technology or national security system that is 
     designated as mission critical in the May 1998 Department of 
     Defense quarterly report on the status of year 2000 
     compliance.

     SEC. 334. EVALUATION OF YEAR 2000 COMPLIANCE AS PART OF 
                   TRAINING EXERCISES PROGRAMS.

       (a) Report on Evaluation Plan.--Not later than December 15, 
     1998, the Secretary of Defense shall submit to Congress a 
     plan for the execution of a simulated year 2000 as part of 
     military exercises described in subsection (c) in order to 
     evaluate, in an operational environment, the extent to which 
     information technology and national security systems involved 
     in those exercises will successfully operate during the 
     actual year 2000, including the ability of those systems to 
     access and transmit information from point of origin to point 
     of termination.
       (b) Evaluation of Compliance in Selected Exercises.--In 
     conducting the military exercises described in subsection 
     (c), the Secretary of Defense shall ensure that--
       (1) at least 25 of those exercises (referred to in this 
     section as ``year 2000 simulation exercises'') are conducted 
     so as to include a simulated year 2000 in accordance with the 
     plan submitted under subsection (a);
       (2) at least two of those exercises are conducted by the 
     commander of each unified or specified combatant command; and
       (3) all mission critical systems that are expected to be 
     used if the Armed Forces are involved in a conflict in a 
     major theater of war are tested in at least two exercises.
       (c) Covered Military Exercises.--A military exercise 
     referred to in this section is a military exercise conducted 
     by the Department of Defense, during the period beginning on 
     January 1, 1999, and ending on September 30, 1999--
       (1) under the training exercises program known as the 
     ``CJCS Exercise Program'';
       (2) at the Naval Strike and Air Warfare Center, the Army 
     National Training Center, or the Air Force Air Warfare 
     Center; or
       (3) as part of Naval Carrier Group fleet training or Marine 
     Corps Expeditionary Unit training.
       (d) Alternative Testing Method.--In the case of an 
     information technology or national security system for which 
     a simulated year 2000 test as part of a military exercise 
     described in subsection (c) is not feasible or presents undue 
     risk, the Secretary of Defense shall test the system using a 
     functional end-to-end test or through a Defense Major Range 
     and Test Facility Base. The Secretary shall include the plans 
     for these tests in the plan required by subsection (a). Tests 
     under this subsection are in addition to the 25 tests 
     required by subsection (b).
       (e) Authority for Exclusion of Systems Not Capable of 
     Performing Reliably in Year 2000 Simulation.--(1) In carrying 
     out a year 2000 simulation exercise, the Secretary of Defense 
     may exclude a particular information technology or national 
     security system from the year 2000 simulation phase of the 
     exercise if the Secretary determines that the system would be 
     incapable of performing reliably during the year 2000 
     simulation phase of the exercise. In such a case, the system 
     excluded shall be replaced in accordance with the year 2000 
     contingency plan for the system.
       (2) If the Secretary of Defense excludes an information 
     technology or national security system from the year 2000 
     simulation phase of an exercise as provided in paragraph (1), 
     the Secretary shall notify Congress of that exclusion not 
     later than two weeks before commencing that exercise. The 
     notice shall include a list of each information technology or 
     national security system excluded from the exercise, a 
     description of how the exercise will use the year 2000 
     contingency plan for each such system, and a description of 
     the effect that continued year 2000 noncompliance of each 
     such system would have on military readiness.
       (3) An information technology or national security system 
     with cryptological applications that is not capable of having 
     its internal clock adjusted forward to a simulated later time 
     is exempt from the year 2000 simulation phase of an exercise 
     under this section.
       (f) Comptroller General Review.--Not later than January 30, 
     1999, the Comptroller General shall review the report and 
     plan submitted under subsection (a) and submit to Congress a 
     briefing evaluating the methodology to be used under the plan 
     to simulate the year 2000 and describing the potential 
     information that will be collected as a result of 
     implementation of the plan, the adequacy of the planned 
     tests, and the impact that the plan will have on military 
     readiness.
       (g) Definitions.--For the purposes of this section:
       (1) The term ``information technology'' has the meaning 
     given that term in section 5002 of the Clinger-Cohen Act of 
     1996 (40 U.S.C. 1401).
       (2) The term ``national security system'' has the meaning 
     given that term in section 5142 of such Act (40 U.S.C. 1452).
       (3) The term ``mission critical system'' means an 
     information technology or national security system that is 
     designated as mission critical in the May 1998 Department of 
     Defense quarterly report on the status of year 2000 
     compliance.

[[Page H8114]]

     SEC. 335. CONTINUITY OF ESSENTIAL OPERATIONS AT RISK OF 
                   FAILURE BECAUSE OF INFORMATION TECHNOLOGY AND 
                   NATIONAL SECURITY SYSTEMS THAT ARE NOT YEAR 
                   2000 COMPLIANT.

       (a) Report Required.--Not later than March 31, 1999, the 
     Secretary of Defense and the Director of Central Intelligence 
     shall jointly submit to the Committee on Armed Services of 
     the Senate and the Committee on National Security of the 
     House of Representatives a report on the plans of the 
     Department of Defense and the intelligence community for 
     ensuring the continuity of performance of essential 
     operations that are at risk of failure because of information 
     technology and national security systems that are not year 
     2000 compliant.
       (b) Content.--The report shall contain, at a minimum, the 
     following:
       (1) A prioritization of mission critical systems to ensure 
     that the most critical systems have the highest priority for 
     efforts to reprogram information technology and national 
     security systems to be year 2000 compliant.
       (2) A discussion of the private and other public 
     information and support systems relied on by the national 
     security community, including the intelligence community, and 
     the efforts under way to ensure that those systems are year 
     2000 compliant.
       (3) The efforts under way to repair the underlying 
     operating systems and infrastructure.
       (4) The plans for comprehensive testing of Department of 
     Defense systems, including simulated operational tests in 
     mission areas.
       (5) A comprehensive contingency plan, for the entire 
     national security community, which provides for resolving 
     emergencies resulting from a system that is not year 2000 
     compliant and includes provision for the creation of crisis 
     action teams for use in resolving such emergencies.
       (6) A discussion of the efforts undertaken to ensure the 
     continued reliability of service on the systems used by the 
     President and other leaders of the United States for 
     communicating with the leaders of other nations.
       (7) A discussion of the vulnerability of allied armed 
     forces to the failure of systems that are not, or have 
     critical components that are not, year 2000 compliant, 
     together with an assessment of the potential problems for 
     interoperability among the Armed Forces of the United States 
     and allied armed forces because of the potential for failure 
     of such systems.
       (8) An estimate of the total cost of making information 
     technology and national security systems of the Department of 
     Defense and the intelligence community year 2000 compliant.
       (9) The countries that have critical computer-based systems 
     any disruption of which, due to not being year 2000 
     compliant, would cause a significant potential national 
     security risk to the United States.
       (10) A discussion of the cooperative arrangements between 
     the United States and other nations to assist those nations 
     in identifying and correcting (to the extent necessary to 
     meet national security interests of the United States) any 
     problems in their communications and strategic systems, or 
     other systems identified by the Secretary of Defense, that 
     make the systems not year 2000 compliant.
       (11) A discussion of the threat posed to the national 
     security interests of the United States from any potential 
     failure of strategic systems of foreign countries that are 
     not year 2000 compliant.
       (c) International Cooperative Arrangements.--The Secretary 
     of Defense, with the concurrence of the Secretary of State, 
     may enter into a cooperative arrangement with a 
     representative of any foreign government to provide for the 
     United States to assist the foreign government in identifying 
     and correcting (to the extent necessary to meet national 
     security interests of the United States) any problems in 
     communications, strategic, or other systems of that foreign 
     government that render the systems not year 2000 compliant.
       (d) Definitions.--In this section:
       (1) The term ``year 2000 compliant'', with respect to an 
     information technology or national security system of the 
     United States or a computer-based system of a foreign 
     government, means that the system correctly recognizes dates 
     in years after 1999 as being dates after 1999 for the 
     purposes of system functions for which the correct date is 
     relevant to the performance of the functions, consistent with 
     certification level 1a, 1b, or 2 (as prescribed in the April 
     1997 publication of the Department of Defense entitled ``Year 
     2000 Management Plan'').
       (2) The term `information technology' has the meaning given 
     that term by section 5002 of the Clinger-Cohen Act of 1996 
     (40 U.S.C. 1401).
       (3) The term `national security system' has the meaning 
     given that term by section 5142 of the Clinger-Cohen Act of 
     1996 (40 U.S.C. 1452).

         Subtitle E--Defense Infrastructure Support Improvement

     SEC. 341. CLARIFICATION OF DEFINITION OF DEPOT-LEVEL 
                   MAINTENANCE AND REPAIR.

       Section 2460(a) of title 10, United States Code, is amended 
     by inserting before the period at the end of the first 
     sentence the following: ``or the location at which the 
     maintenance or repair is performed''.

     SEC. 342. REPORTING AND ANALYSIS REQUIREMENTS BEFORE CHANGE 
                   OF COMMERCIAL AND INDUSTRIAL TYPE FUNCTIONS TO 
                   PRIVATE SECTOR PERFORMANCE.

       (a) In General.--Section 2461 of title 10, United States 
     Code, is amended--
       (1) by redesignating subsections (c) and (g) as subsections 
     (g) and (h), respectively, and transferring subsection (g), 
     as so redesignated, to appear after subsection (f); and
       (2) by striking out subsections (a) and (b) and inserting 
     in lieu thereof the following new subsections:
       ``(a) Reporting and Analysis Requirements as Precondition 
     to Change in Performance.--A commercial or industrial type 
     function of the Department of Defense that, as of October 1, 
     1980, was being performed by Department of Defense civilian 
     employees may not be changed to performance by the private 
     sector until the Secretary of Defense fully complies with the 
     reporting and analysis requirements specified in subsections 
     (b) and (c).
       ``(b) Notification and Elements of Analysis.--(1) Before 
     commencing to analyze a commercial or industrial type 
     function described in subsection (a) for possible change to 
     performance by the private sector, the Secretary of Defense 
     shall submit to Congress a report containing the following:
       ``(A) The function to be analyzed for possible change.
       ``(B) The location at which the function is performed by 
     Department of Defense civilian employees.
       ``(C) The number of civilian employee positions potentially 
     affected.
       ``(D) The anticipated length and cost of the analysis.
       ``(E) A certification that a proposed performance of the 
     commercial or industrial type function by persons who are not 
     civilian employees of the Department of Defense is not a 
     result of a decision by an official of a military department 
     or Defense Agency to impose predetermined constraints or 
     limitations on such employees in terms of man years, end 
     strengths, full-time equivalent positions, or maximum number 
     of employees.
       ``(2) The duty to prepare a report under paragraph (1) may 
     be delegated. A report prepared below the major command or 
     claimant level of a military department, or below the 
     equivalent level in a Defense Agency, pursuant to any such 
     delegation shall be reviewed at the major command, claimant 
     level, or equivalent level, as the case may be, before 
     submission to Congress.
       ``(3) An analysis of a commercial or industrial type 
     function for possible change to performance by the private 
     sector shall include the following:
       ``(A) An examination of the cost of performance of the 
     function by Department of Defense civilian employees and by 
     one or more private contractors to demonstrate whether change 
     to performance by the private sector will result in savings 
     to the Government over the life of the contract, including in 
     the examination the following:
       ``(i) The cost to the Government, estimated by the 
     Secretary of Defense (based on offers received), for 
     performance of the function by the private sector.
       ``(ii) The estimated cost to the Government of Department 
     of Defense civilian employees performing the function.
       ``(iii) In addition to the costs referred to in clause (i), 
     an estimate of all other costs and expenditures that the 
     Government would incur because of the award of such a 
     contract.
       ``(B) An examination of the potential economic effect of 
     performance of the function by the private sector on the 
     following:
       ``(i) Employees of the Department of Defense who would be 
     affected by such a change in performance.
       ``(ii) The local community and the Government, if more than 
     75 employees of the Department of Defense perform the 
     function.
       ``(C) An examination of the effect of performance of the 
     function by the private sector on the military mission 
     associated with the performance of the function.
       ``(4)(A) A representative individual or entity at a 
     facility where a commercial or industrial type function is 
     analyzed for possible change in performance may submit to the 
     Secretary of Defense an objection to the analysis on the 
     grounds that the report required by paragraph (1) has not 
     been submitted or that the certification required by 
     paragraph (1)(E) is not included in the report submitted as a 
     condition for the analysis. The objection shall be in writing 
     and shall be submitted within 90 days after the following 
     date:
       ``(i) In the case of a failure to submit the report when 
     required, the date on which the representative individual or 
     an official of the representative entity authorized to pose 
     the objection first knew or should have known of that 
     failure.
       ``(ii) In the case of a failure to include the 
     certification in a submitted report, the date on which the 
     report was submitted to Congress.
       ``(B) If the Secretary determines that the report required 
     by paragraph (1) was not submitted or that the required 
     certification was not included in the submitted report, the 
     commercial or industrial type function covered by the 
     analysis to which objected may not be the subject of a 
     solicitation of offers for, or award of, a contract until, 
     respectively, the report is submitted or a report containing 
     the certification in full compliance with the certification 
     requirement is submitted.
       ``(c) Notification of Decision.--(1) If, as a result of the 
     completion of the examinations under subsection (b)(3), a 
     decision is made to change the commercial or industrial type 
     function that was the subject of the analysis to performance 
     by the private sector, the Secretary of Defense shall submit 
     to Congress a report describing that decision. The report 
     shall contain the following:
       ``(A) An indication that the examinations required under 
     subsection (b)(3) have been completed.
       ``(B) The Secretary's certification that the Government 
     calculation of the cost of performance of the function by 
     Department of Defense civilian employees is based on an 
     estimate of the most cost effective manner for performance of 
     the function by Department of Defense civilian employees.
       ``(C) The Secretary's certification that the examination 
     required by subsection (b)(3)(A) as

[[Page H8115]]

     part of the analysis demonstrates that the performance of the 
     function by the private sector will result in savings to the 
     Government over the life of the contract.
       ``(D) The Secretary's certification that the entire 
     analysis is available for examination.
       ``(E) A schedule for completing the change to performance 
     of the function by the private sector.
       ``(2) The change of the function to contractor performance 
     may not begin until after the submission of the report 
     required by this subsection.''.
       (b) Definition of Small Function for Waiver Purposes.--
     Subsection (d) of section 2461 of title 10, United States 
     Code, is amended by striking out ``20'' and inserting in lieu 
     thereof ``50''.
       (c) Conforming Amendments.--(1) Subsections (d) and (e) of 
     section 2461 of title 10, United States Code, are amended by 
     inserting ``and subsection (g)'' after ``Subsections (a) 
     through (c)''.
       (2) Subsections (e)(2) and (f)(1) of such section are 
     amended by striking out ``converted'' and inserting in lieu 
     thereof ``changed''.
       (3) Subsection (f)(2) of such section is amended by 
     striking out ``conversion'' and inserting in lieu thereof 
     ``change''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act, 
     but the amendments shall not apply with respect to a 
     conversion of a function of the Department of Defense to 
     performance by a private contractor concerning which the 
     Secretary of Defense provided to Congress, before the date of 
     the enactment of this Act, a notification under paragraph (1) 
     of section 2461(a) of title 10, United States Code, as in 
     effect on the day before the date of the enactment of this 
     Act.

     SEC. 343. NOTIFICATIONS OF DETERMINATIONS OF MILITARY ITEMS 
                   AS BEING COMMERCIAL ITEMS FOR PURPOSES OF THE 
                   EXCEPTION TO REQUIREMENTS REGARDING CORE 
                   LOGISTICS CAPABILITIES.

       (a) Requirement.--Section 2464 of title 10, United States 
     Code, is amended by adding at the end the following:
       ``(c) Notification of Determinations Regarding Certain 
     Commercial Items.--The first time that a weapon system or 
     other item of military equipment described in subsection 
     (a)(3) is determined to be a commercial item for the purposes 
     of the exception contained in that subsection, the Secretary 
     of Defense shall submit to Congress a notification of the 
     determination, together with the justification for the 
     determination. The justification for the determination shall 
     include, at a minimum, the following:
       ``(1) The estimated percentage of commonality of parts of 
     the version of the item that is sold or leased in the 
     commercial marketplace and the Government's version of the 
     item.
       ``(2) The value of any unique support and test equipment 
     and tools that are necessary to support the military 
     requirements if the item were maintained by the Government.
       ``(3) A comparison of the estimated life cycle logistics 
     support costs that would be incurred by the Government if the 
     item were maintained by the private sector with the estimated 
     life cycle logistics support costs that would be incurred by 
     the Government if the item were maintained by the 
     Government.''.
       (b) Applicability.--Subsection (c) of section 2464 of title 
     10, United States Code (as added by subsection (a)), shall 
     apply with respect to determinations made after the date of 
     the enactment of this Act.

     SEC. 344. OVERSIGHT OF DEVELOPMENT AND IMPLEMENTATION OF 
                   AUTOMATED IDENTIFICATION TECHNOLOGY.

       (a) Definitions.--In this section:
       (1) The term ``automated identification technology 
     program'' means a program in the Department of Defense, 
     including any pilot program, employing one or more of the 
     following technologies:
       (A) Magnetic stripe.
       (B) Bar codes, both linear and two-dimensional (including 
     matrix symbologies).
       (C) Smart Card.
       (D) Optical memory.
       (E) Personal computer memory card international association 
     carriers.
       (F) Any other established or emerging automated 
     identification technology, including biometrics and radio 
     frequency identification.
       (2) The term ``Smart Card'' means a credit card size device 
     that contains one or more integrated-circuits.
       (b) Establishment of Automated Identification Technology 
     Office.--(1) The Secretary of Defense shall establish an 
     Automated Identification Technology Office within the 
     Department of Defense that shall be responsible for--
       (A) overseeing the development and implementation of all 
     automated identification technology programs in the 
     Department; and
       (B) coordinating automated identification technology 
     programs with the Joint Staff, the Secretaries of the 
     military departments, and the directors of the Defense 
     Agencies.
       (2) After the date of the enactment of this Act, funds 
     appropriated for the Department of Defense may not be 
     obligated for an automated identification technology program 
     unless the program has been reviewed and approved by the 
     Automated Identification Technology Office. Pending the 
     establishment of the Automated Identification Technology 
     Office, the review and approval of a program by the Smartcard 
     Technology Office of the Defense Human Resources Field 
     Activity of the Department of Defense shall be sufficient to 
     satisfy the requirements of this paragraph even if the 
     approval was given before the date of the enactment of this 
     Act.
       (3) As part of its oversight responsibilities, the 
     Automated Identification Technology Office shall establish 
     standards designed--
       (A) to ensure the compatibility and interoperability of 
     automated identification technology programs in the 
     Department of Defense; and
       (B) to identify and terminate redundant, infeasible, or 
     uneconomical automated identification technology programs.
       (c) Funding for Increased Use of Smart Cards.--(1) Of the 
     funds available for the Navy for fiscal year 1999 for 
     operation and maintenance, the Secretary of the Navy shall 
     allocate sufficient amounts, up to $25,000,000, for the 
     purpose of making significant progress toward ensuring that 
     Smart Cards with a multi-application, multi-technology 
     automated reading capability are issued and used throughout 
     the Navy and the Marine Corps for purposes for which Smart 
     Cards are suitable.
       (2) Not later than June 30, 1999, the Secretary of the Navy 
     shall equip with Smart Card technology at least one carrier 
     battle group, one carrier air wing, and one amphibious 
     readiness group (including the Marine Corps units embarked on 
     the vessels of such battle and readiness groups) in each of 
     the United States Atlantic Command and the United States 
     Pacific Command.
       (3) None of the funds appropriated pursuant to any 
     authorization of appropriations in this Act may be expended 
     after June 30, 1999, for the procurement of the Joint 
     Uniformed Services Identification card for members of the 
     Navy or the Marine Corps or for the issuance of such card to 
     such members, until the Secretary of the Navy certifies in 
     writing to the Committee on Armed Services of the Senate and 
     the Committee on National Security of the House of 
     Representatives that the Secretary has completed the issuance 
     of Smart Cards in accordance with paragraph (2).
       (d) Defense-Wide Plan.--Not later than March 31, 1999, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a plan for the use of Smart Card 
     technology by each military department. The Secretary shall 
     include in the plan an estimate of the costs of the plan, the 
     savings to be derived from carrying out the plan, and a 
     description of the ways in which the Department of Defense 
     will review and revise business practices to take advantage 
     of Smart Card technology.

     SEC. 345. CONTRACTOR-OPERATED CIVIL ENGINEERING SUPPLY STORES 
                   PROGRAM.

       (a) Definitions.--In this section:
       (1) The term ``contractor-operated civil engineering supply 
     store'' means a Government-owned facility that, as of the 
     date of the enactment of this Act, is operated by a 
     contractor under the contractor-operated civil engineering 
     supply store program of the Department of the Air Force 
     (known as the ``COCESS program'') for the purpose of--
       (A) maintaining inventories of civil engineering supplies 
     on behalf of a military department; and
       (B) furnishing such supplies to the department as needed.
       (2) The term ``civil engineering supplies'' means parts and 
     supplies needed for the repair and maintenance of military 
     installations.
       (b) Findings.--Congress finds the following:
       (1) In 1970, the Strategic Air Command of the Air Force 
     began to use contractor-operated civil engineering supply 
     stores to improve the efficiency and effectiveness of 
     materials management and relieve the Air Force from having to 
     maintain large inventories of civil engineering supplies.
       (2) Contractor-operated civil engineering supply stores are 
     designed to support the civil engineering and public works 
     efforts of the Armed Forces through the provision of quality 
     civil engineering supplies at competitive prices and within a 
     reasonable period of time.
       (3) Through the use of a contractor-operated civil 
     engineering supply store, a guaranteed inventory level of 
     civil engineering supplies is maintained at a military 
     installation, which ensures that urgently needed civil 
     engineering supplies are available on site.
       (4) The contractor operating the contractor-operated civil 
     engineering supply store is an independent business 
     organization whose customer is a military department and the 
     Armed Forces and who is subject to all the rules of private 
     business and the regulations of the Government.
       (5) The use of contractor-operated civil engineering supply 
     stores ensures the best price and best buy for the 
     Government.
       (6) Ninety-five percent of the cost savings realized 
     through the use of contractor-operated civil engineering 
     supply stores is due to savings in the cost of actually 
     procuring supplies.
       (7) In the past 30 years, private contractors have never 
     lost a cost comparison conducted pursuant to the criteria set 
     forth in Office of Management and Budget Circular A-76 for 
     the provision of civil engineering supplies to the 
     Government.
       (c) Conditions on Multi-Function Contracts.--A civil 
     engineering supplies function that is performed, as of the 
     date of the enactment of this Act, by a contractor-operated 
     civil engineering supply store may not be combined with 
     another supply function or any service function, including 
     any base operating support function, for purposes of 
     competition or contracting, until 60 days after the date on 
     which the Secretary of Defense submits to Congress a report--
       (1) notifying Congress of the proposed combined competition 
     or contract; and
       (2) explaining why a combined competition or contract is 
     the best method by which to achieve cost savings and 
     efficiencies to the Government.
       (d) GAO Reviews.--Not later than 50 days after the date on 
     which the Secretary of Defense submits a report to Congress 
     under subsection (c), the Comptroller General shall review 
     the report and submit to Congress a briefing regarding

[[Page H8116]]

     whether the cost savings and efficiencies identified in the 
     report are achievable.
       (e) Relationship to Other Laws.--If a civil engineering 
     supplies function covered by subsection (c) is proposed for 
     combination with a supply or service function that is subject 
     to the study and reporting requirements of section 2461 of 
     title 10, United States Code, the Secretary of Defense may 
     include the report required under subsection (c) as part 
     of the report under such section.

     SEC. 346. CONDITIONS ON EXPANSION OF FUNCTIONS PERFORMED 
                   UNDER PRIME VENDOR CONTRACTS FOR DEPOT-LEVEL 
                   MAINTENANCE AND REPAIR.

       (a) Conditions on Expanded Use.--The Secretary of Defense 
     or the Secretary of a military department, as the case may 
     be, may not enter into a prime vendor contract for depot-
     level maintenance and repair of a weapon system or other 
     military equipment described in section 2464(a)(3) of title 
     10, United States Code, before the end of the 30-day period 
     beginning on the date on which the Secretary submits to 
     Congress a report, specific to the proposed contract, that--
       (1) describes the competitive procedures to be used to 
     award the prime vendor contract; and
       (2) contains an analysis of costs and benefits that 
     demonstrates that use of the prime vendor contract will 
     result in savings to the Government over the life of the 
     contract.
       (b) Definitions.--In this section:
       (1) The term ``prime vendor contract'' means an innovative 
     contract that gives a defense contractor the responsibility 
     to manage, store, and distribute inventory, manage and 
     provide services, or manage and perform research, on behalf 
     of the Department of Defense on a frequent, regular basis, 
     for users within the Department on request. The term includes 
     contracts commonly referred to as prime vendor support 
     contracts, flexible sustainment contracts, and direct vendor 
     delivery contracts.
       (2) The term ``depot-level maintenance and repair'' has the 
     meaning given such term in section 2460 of title 10, United 
     States Code.
       (c) Relationship to Other Laws.--Nothing in this section 
     shall be construed to exempt a prime vendor contract from the 
     requirements of section 2461 of title 10, United States Code, 
     or any other provision of chapter 146 of such title.

     SEC. 347. BEST COMMERCIAL INVENTORY PRACTICES FOR MANAGEMENT 
                   OF SECONDARY SUPPLY ITEMS.

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

     SEC. 348. PERSONNEL REDUCTIONS IN ARMY MATERIEL COMMAND.

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

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

       (a) Requirement for Plan.--Not later than March 1, 1999, 
     the Secretary of Defense shall submit to Congress a 
     comprehensive plan to ensure visibility over all in-transit 
     end items and secondary items.
       (b) End Items.--The plan required by subsection (a) shall 
     address the specific mechanisms to be used to enable the 
     Department of Defense to identify at any time the quantity 
     and location of all end items.
       (c) Secondary Items.--The plan required by subsection (a) 
     shall address the following problems with Department of 
     Defense management of inventories of in-transit secondary 
     items:
       (1) The vulnerability of in-transit secondary items to loss 
     through fraud, waste, and abuse.
       (2) Loss of oversight of in-transit secondary items, 
     including any loss of oversight when items are being 
     transported by commercial carriers.
       (3) Loss of accountability for in-transit secondary items 
     due to either a delay of delivery of the items or a lack of 
     notification of a delivery of the items.
       (d) Content of Plan.--The plan shall include for subsection 
     (b) and for each of the problems described in subsection (c) 
     the following information:
       (1) The actions to be taken by the Department.
       (2) Statements of objectives.
       (3) Performance measures and schedules.
       (4) An identification of any resources necessary for 
     implementing the required actions, together with an estimate 
     of the annual costs.
       (e) GAO Reviews.--(1) Not later than 60 days after the date 
     on which the Secretary of Defense submits the plan to 
     Congress, the Comptroller General shall review the plan and 
     submit to Congress any comments that the Comptroller General 
     considers appropriate regarding the plan.
       (2) The Comptroller General shall monitor any 
     implementation of the plan and, not later than one year after 
     the date referred to in paragraph (1), submit to Congress an 
     assessment of the extent to which the plan has been 
     implemented.

     SEC. 350. REVIEW OF DEFENSE AUTOMATED PRINTING SERVICE 
                   FUNCTIONS.

       (a) Review Required.--The Secretary of Defense shall 
     provide for a review of the functions of the Defense 
     Automated Printing Service in accordance with this section 
     and shall submit to the Committee on Armed Services of the 
     Senate and the Committee on National Security of the House of 
     Representatives the matters required under subsection (f) not 
     later than March 31, 1999.
       (b) Performance by Independent Entity.--The Secretary of 
     Defense shall select the General Accounting Office, an 
     experienced entity in the private sector, or any other entity 
     outside the Department of Defense to perform the review under 
     this section. The Comptroller General shall perform the 
     review if the Secretary selects the Comptroller General to do 
     so.
       (c) Consultation.--Regardless of the entity selected by the 
     Secretary under subsection (b) to perform the review, the 
     entity shall perform the review in consultation with persons 
     in the private sector who have expertise and experience in 
     performing in the private sector functions similar to the 
     functions performed by the Defense Automated Printing 
     Service. If such a person obtains any privileged 
     information (as defined by the Secretary of Defense) as a 
     result of participating in the review, the person may not 
     receive a contract, either through the Department of 
     Defense or the Government Printing Office, to provide 
     services for the Department of Defense similar to the 
     functions performed by the Defense Automated Printing 
     Service for a one-year period beginning on the date the 
     report is submitted to the Secretary of Defense under 
     subsection (e).
       (d) Elements of Review.--In performing the review under 
     this section, the entity selected under subsection (b) shall 
     specifically address the following:
       (1) The functions performed by the Defense Automated 
     Printing Service.
       (2) The functions of the Defense Automated Printing Service 
     that are inherently national security functions and, as such, 
     need to be performed within the Department of Defense.
       (3) The functions of the Defense Automated Printing Service 
     that are appropriate for transfer to another appropriate 
     entity to perform, including a private sector entity.
       (4) The appropriate management structure of the Defense 
     Automated Printing Service, the effectiveness of the current 
     structure of the Defense Automated Printing Service in 
     supporting current and future customer requirements, and any 
     plans to address any deficiencies in supporting such 
     requirements.
       (5) The current and future requirements of customers of the 
     Defense Automated Printing Service.
       (6) The best business practices that are used by the 
     Defense Automated Printing Service and other best business 
     practices that could be used by the Defense Automated 
     Printing Service.
       (7) Options for maximizing the Defense Automated Printing 
     Service structure and services to provide the most cost 
     effective service to its customers.
       (e) Report on Results of Review.--The entity performing the 
     review under this section shall submit to the Secretary of 
     Defense a report that sets forth the results of the review. 
     In addition to specifically addressing the matters specified 
     in subsection (d), the report shall also include the 
     following:
       (1) A list of all sites where functions of the Defense 
     Automated Printing Service are performed by the Defense 
     Automated Printing Service.
       (2) The total number of the personnel employed by the 
     Defense Automated Printing Service and the locations where 
     the personnel perform the duties as employees.
       (3) For each site identified under paragraph (1), an 
     assessment of each type of equipment at the site.
       (4) The types and explanation of the networking and 
     technology integration linking all of the sites referred to 
     in paragraph (1).
       (5) For each function of the Defense Automated Printing 
     Service determined to be an inherently national security 
     function under subsection (d)(2), a detailed justification 
     for the determination.
       (6) For each function of the Defense Automated Printing 
     Service determined to be appropriate for transfer under 
     subsection (d)(3), a detailed assessment of the costs or 
     savings associated with the transfer.
       (f) Review and Comments of Secretary of Defense.--(1) After 
     reviewing the report submitted under subsection (e), the 
     Secretary of Defense shall submit the report to Congress. The

[[Page H8117]]

     Secretary shall include with the report the following:
       (1) The Secretary's comments and recommendations regarding 
     the report.
       (2) A plan to transfer to another appropriate entity, or 
     contract with another appropriate entity for, the performance 
     of the functions of the Defense Automated Printing Service 
     that--
       (A) are not identified in the review as being inherently 
     national security functions; and
       (B) the Secretary believes should be transferred or 
     contracted for performance outside the Department of Defense 
     in accordance with law.
       (3) Any recommended legislation and any administrative 
     action that is necessary for transferring or contracting for 
     the performance of the functions.
       (g) Extension of Requirement for Competitive Procurement of 
     Services.--Section 351(a) of the National Defense 
     Authorization Act for Fiscal Year 1996 (Public Law 104-106; 
     110 Stat. 266), as amended by section 351(a) of the National 
     Defense Authorization Act for Fiscal Year 1997 (Public Law 
     104-201; 110 Stat. 2490) and section 387(a)(1) of the 
     National Defense Authorization Act for Fiscal Year 1998 
     (Public Law 105-85; 111 Stat. 1713), is further amended by 
     striking out ``1998'' and inserting in lieu thereof ``1999''.

     SEC. 351. DEVELOPMENT OF PLAN FOR ESTABLISHMENT OF CORE 
                   LOGISTICS CAPABILITIES FOR MAINTENANCE AND 
                   REPAIR OF C-17 AIRCRAFT.

       (a) Plan Required.--Not later than March 1, 1999, the 
     Secretary of the Air Force shall submit to Congress a plan 
     for the establishment of the core logistics capabilities for 
     the C-17 aircraft consistent with the requirements of section 
     2464 of title 10, United States Code.
       (b) Effect on Existing Contract.--After March 1, 1999, the 
     Secretary of the Air Force may not extend the Interim 
     Contract for the C-17 Flexible Sustainment Program before the 
     end of the 60-day period beginning on the date on which the 
     plan required by subsection (a) is received by Congress.
       (c) Comptroller General Review.--During the period 
     specified in subsection (b), the Comptroller General shall 
     review the plan required under subsection (a) and submit to 
     Congress a report evaluating the merits of the plan.

  Subtitle F--Commissaries and Nonappropriated Fund Instrumentalities

     SEC. 361. CONTINUATION OF MANAGEMENT AND FUNDING OF DEFENSE 
                   COMMISSARY AGENCY THROUGH THE OFFICE OF THE 
                   SECRETARY OF DEFENSE.

       (a) Management and Funding Responsibilities.--Section 192 
     of title 10, United States Code, is amended by adding at the 
     end the following new subsection:
       ``(d) Special Rule for Defense Commissary Agency.--
     Notwithstanding the results of any periodic review under 
     subsection (c) with regard to the Defense Commissary Agency, 
     the Secretary of Defense may not transfer to the Secretary of 
     a military department the responsibility to manage and fund 
     the provision of services and supplies provided by the 
     Defense Commissary Agency unless the transfer of the 
     management and funding responsibility is specifically 
     authorized by a law enacted after the date of the enactment 
     of this subsection.''.
       (b) Governing Board.--Section 2482 of such title is amended 
     by adding at the end the following new subsection:
       ``(c) Governing Board.--(1) Notwithstanding section 192(d) 
     of this title, the Secretary of Defense shall establish a 
     governing board for the commissary system to provide advice 
     to the Secretary regarding the prudent operation of the 
     commissary system and to assist in the overall supervision of 
     the Defense Commissary Agency. The Secretary may authorize 
     the board to have such supervisory authority as the Secretary 
     considers appropriate to permit the board to carry out its 
     responsibilities.
       ``(2) The Secretary of Defense shall determine the 
     membership of the governing board, which shall include, at a 
     minimum, appropriate representatives from each military 
     department.
       ``(3) The governing board shall be accountable only to the 
     Secretary of Defense and to the civilian officer of the 
     Department of Defense who is assigned the responsibility for 
     the overall supervision of the Defense Commissary Agency 
     pursuant to section 192(a) of this title. The Director of 
     the Defense Commissary Agency shall be accountable to and 
     report to the board.''.

     SEC. 362. EXPANSION OF CURRENT ELIGIBILITY OF RESERVES FOR 
                   COMMISSARY BENEFITS.

       (a) Days of Eligibility for Ready Reserve Members With 50 
     Creditable Points.--Section 1063 of title 10, United States 
     Code, is amended--
       (1) by striking out subsection (b); and
       (2) in subsection (a)--
       (A) by striking out ``(1)'';
       (B) by striking out ``12 days of eligibility'' and 
     inserting in lieu thereof ``24 days of eligibility''; and
       (C) by striking out ``(2) Paragraph (1)'' and inserting in 
     lieu thereof ``(b) Effect of Compensation or Type of Duty.--
     Subsection (a)''.
       (b) Days of Eligibility for Reserve Retirees Under Age 
     60.--Section 1064 of such title is amended by striking out 
     ``for 12 days each calendar year'' and inserting in lieu 
     thereof ``for 24 days each calendar year''.
       (c) Eligibility of Members of National Guard Serving in 
     Federally Declared Disaster.--Chapter 54 of such title is 
     amended by inserting after section 1063 the following new 
     section:

     ``Sec. 1063a. Use of commissary stores and MWR retail 
       facilities: members of National Guard serving in federally 
       declared disaster

       ``(a) Eligibility of Members.--A member of the National 
     Guard who, although not in Federal service, is called or 
     ordered to duty in response to a federally declared disaster 
     shall be permitted to use commissary stores and MWR retail 
     facilities during the period of such duty on the same basis 
     as members of the armed forces on active duty.
       ``(b) Eligibility of Dependents.--A dependent of a member 
     of the National Guard who is permitted under subsection (a) 
     to use commissary stores and MWR retail facilities shall be 
     permitted to use such stores and facilities, during the same 
     period as the member, on the same basis as dependents of 
     members of the armed forces on active duty.
       ``(c) Definitions.--In this section:
       ``(1) Federally declared disaster.--The term `federally 
     declared disaster' means a disaster or other situation for 
     which a Presidential declaration of major disaster is issued 
     under section 401 of the Robert T. Stafford Disaster Relief 
     and Emergency Assistance Act (42 U.S.C. 5170).
       ``(2) MWR retail facilities.--The term `MWR retail 
     facilities' has the meaning given that term in section 
     1065(e) of this title.''.
       (d) Section Headings.--(1) The heading of section 1063 of 
     such title is amended to read as follows:

     ``Sec. 1063. Use of commissary stores: members of Ready 
       Reserve with at least 50 creditable points''.

       (2) The heading of section 1064 of such title is amended to 
     read as follows:

     ``Sec. 1064. Use of commissary stores: persons qualified for 
       retired pay under chapter 1223 but under age 60''.

       (e) Clerical Amendment.--The table of sections at the 
     beginning of chapter 54 of such title is amended by striking 
     out the items relating to sections 1063 and 1064 and 
     inserting in lieu thereof the following items:
``1063. Use of commissary stores: members of Ready Reserve with at 
              least 50 creditable points.
``1063a. Use of commissary stores and MWR retail facilities: members of 
              National Guard serving in federally declared disaster.
``1064. Use of commissary stores: persons qualified for retired pay 
              under chapter 1223 but under age 60.''.

     SEC. 363. COSTS PAYABLE TO THE DEPARTMENT OF DEFENSE AND 
                   OTHER FEDERAL AGENCIES FOR SERVICES PROVIDED TO 
                   THE DEFENSE COMMISSARY AGENCY.

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

     SEC. 364. COLLECTION OF DISHONORED CHECKS PRESENTED AT 
                   COMMISSARY STORES.

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

     SEC. 365. RESTRICTIONS ON PATRON ACCESS TO, AND PURCHASES IN, 
                   OVERSEAS COMMISSARIES AND EXCHANGE STORES.

       (a) Authority to Impose Restrictions; Limitations on 
     Authority.--Chapter 147 of title 10, United States Code, is 
     amended by adding at the end the following new section:

     ``Sec. 2492. Overseas commissary and exchange stores: access 
       and purchase restrictions

       ``(a) General Authority.--(1) The Secretary of Defense may 
     establish restrictions on the ability of eligible patrons of 
     commissary and exchange stores located outside of the United 
     States to purchase certain merchandise items (or the quantity 
     of certain merchandise items) otherwise included within an 
     authorized merchandise category if the Secretary determines 
     that such restrictions are necessary to prevent the resale of 
     such merchandise in violation of treaty obligations of the 
     United States or host nation laws (to the extent such laws 
     are not inconsistent with United States laws).

[[Page H8118]]

       ``(2) In establishing a quantity or other restriction, the 
     Secretary--
       ``(A) may not discriminate among the various categories of 
     eligible patrons of the commissary and exchange system; and
       ``(B) shall ensure that the restriction is consistent with 
     the purpose of the overseas commissary and exchange system to 
     provide reasonable access for eligible patrons to purchase 
     merchandise items made in the United States.
       ``(b) Controlled Item Lists.--For each location outside the 
     United States that is served by the commissary system or the 
     exchange system, the Secretary of Defense may maintain a list 
     of controlled merchandise items, except that, after the 
     date of the enactment of this section, the Secretary may 
     not change the list to add a merchandise item unless, 
     before making the change, the Secretary submits to 
     Congress a notice of the proposed addition and the reasons 
     for the addition of the item.
       ``(c) Annual Report.--The Secretary of Defense shall submit 
     to Congress an annual report describing the host nation laws 
     and the treaty obligations of the United States, and the 
     conditions within host nations, that necessitate the use of 
     quantity or other restrictions on purchases in commissary and 
     exchange stores located outside the United States.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:
``2492. Overseas commissary and exchange stores: access and purchase 
              restrictions.''.

     SEC. 366. REPEAL OF REQUIREMENT FOR AIR FORCE TO SELL TOBACCO 
                   PRODUCTS TO ENLISTED PERSONNEL.

       (a) Repeal.--Section 9623 of title 10, United States Code, 
     is repealed.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 939 of such title is amended by striking 
     out the item relating to section 9623.

     SEC. 367. PROHIBITION ON CONSOLIDATION OR OTHER 
                   ORGANIZATIONAL CHANGES OF DEPARTMENT OF DEFENSE 
                   RETAIL SYSTEMS.

       (a) Defense Retail Systems Defined.--For purposes of this 
     section, the term ``defense retail systems'' means the 
     defense commissary system and exchange stores and other 
     revenue-generating facilities operated by nonappropriated 
     fund activities of the Department of Defense for the morale, 
     welfare, and recreation of members of the Armed Forces.
       (b) Prohibition.--The operation and administration of the 
     defense retail systems may not be consolidated or otherwise 
     merged unless the consolidation or merger is specifically 
     authorized by a law enacted after the date of the enactment 
     of this Act.
       (c) Effect on Existing Study.--Nothing in this section 
     shall be construed to prohibit the study of defense retail 
     systems, known as the ``Joint Exchange Due Diligence Study'', 
     which is underway on the date of the enactment of this Act 
     pursuant to a contract awarded by the Department of the Navy 
     on April 21, 1998, except that any recommendation contained 
     in the completed study regarding the operation or 
     administration of the defense retail systems may not be 
     implemented unless implementation of the recommendation is 
     specifically authorized by a law enacted after the date of 
     the enactment of this Act.

     SEC. 368. DEFENSE COMMISSARY AGENCY TELECOMMUNICATIONS.

       (a) Use of FTS 2000 / 2001.--The Secretary of Defense shall 
     prescribe in regulations authority for the Defense Commissary 
     Agency to meet its telecommunication requirements by 
     obtaining telecommunication services and related items under 
     the FTS 2000 / 2001 contract.
       (b) Report.--Upon the initiation of telecommunication 
     service for the Defense Commissary Agency under the FTS 2000 
     / 2001 contract, the Secretary of Defense shall submit to 
     Congress a notification that the service has been initiated.
       (c) Definition.--In this section, the term ``FTS 2000 / 
     2001 contract'' means the contract for the provision of 
     telecommunication services for the Federal Government that 
     was entered into by the Defense Information Technology 
     Contract Organization.

     SEC. 369. SURVEY OF COMMISSARY STORE PATRONS REGARDING 
                   SATISFACTION WITH COMMISSARY STORE MERCHANDISE.

       (a) Patron Survey.--The Secretary of Defense shall enter 
     into a contract with a commercial survey firm to conduct a 
     survey of eligible patrons of the commissary store system to 
     determine patron satisfaction with the merchandise sold 
     in commissary stores, including patron views on product 
     quality, prices, assortment, and such other matters as the 
     Secretary considers appropriate.
       (b) Survey Location.--The survey shall be conducted at not 
     less than three military installations in the United States 
     of each of the Armed Forces (other than the Coast Guard).
       (c) Report on Results.--The survey shall be completed, and 
     the results submitted to the Secretary of Defense, the 
     Committee on Armed Services of the Senate, and the Committee 
     on National Security of the House of Representatives, not 
     later than February 28, 1999.

                       Subtitle G--Other Matters

     SEC. 371. ELIGIBILITY REQUIREMENTS FOR ATTENDANCE AT 
                   DEPARTMENT OF DEFENSE DOMESTIC DEPENDENT 
                   ELEMENTARY AND SECONDARY SCHOOLS.

       (a) Dependents of Members Residing in Certain Areas.--
     Subsection (a) of section 2164 of title 10, United States 
     Code, is amended--
       (1) by designating the first sentence as paragraph (1);
       (2) by designating the second sentence as paragraph (2); 
     and
       (3) by adding at the end of paragraph (2) (as so 
     designated) the following new sentence: ``If a member of the 
     armed forces is assigned to a remote location or is assigned 
     to an unaccompanied tour of duty, a dependent of the member 
     who resides, on or off a military installation, in a 
     territory, commonwealth, or possession of the United States, 
     as authorized by the member's orders, may be enrolled in an 
     educational program provided by the Secretary under this 
     subsection.''.
       (b) Waiver of Five-Year Attendance Limitation.--Subsection 
     (c)(2) of such section is amended by striking out 
     subparagraph (B) and inserting in lieu thereof the following 
     new subparagraph:
       ``(B) At the discretion of the Secretary, a dependent 
     referred to in subparagraph (A) may be enrolled in the 
     program for more than five consecutive school years if the 
     dependent is otherwise qualified for enrollment, space is 
     available in the program, and the Secretary will be 
     reimbursed for the educational services provided. Any such 
     extension shall cover only one school year at a time.''.
       (c) Customs Service Employee Dependents in Puerto Rico.--
     (1) Subsection (c)(1) of such section is amended--
       (A) by inserting ``(A)'' after ``(1)''; and
       (B) by adding at the end the following new subparagraph:
       ``(B) A dependent of a United States Customs Service 
     employee who resides in Puerto Rico, but not on a military 
     installation, may enroll in an educational program provided 
     by the Secretary pursuant to subsection (a) in Puerto Rico in 
     accordance with the same rules as apply to a dependent of a 
     Federal employee residing in permanent living quarters on a 
     military installation.''.
       (2) Subsection (c)(2) of such section is further amended by 
     adding at the end the following new subparagraph:
       ``(D) Subparagraph (A) shall not apply to a dependent 
     covered by paragraph (1)(B). No requirement under this 
     paragraph for reimbursement for educational services provided 
     for the dependent shall apply with respect to the dependent, 
     except that the Secretary may require the United States 
     Customs Service to reimburse the Secretary for the cost of 
     the educational services provided for the dependent.''.
       (3) The amendments made by this subsection shall apply with 
     respect to academic years beginning on or after the date of 
     the enactment of this Act.

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

       (a) Continuation of Department of Defense Program for 
     Fiscal Year 1999.--Of the amount authorized to be 
     appropriated pursuant to section 301(5) for operation and 
     maintenance for Defense-wide activities--
       (1) $30,000,000 shall be available only for the purpose of 
     providing educational agencies assistance (as defined in 
     subsection (d)(1)) to local educational agencies; and
       (2) $5,000,000 shall be available only for the purpose of 
     making educational agencies payments (as defined in 
     subsection (d)(2)) to local educational agencies.
       (b) Notification.--Not later than June 30, 1999, the 
     Secretary of Defense shall--
       (1) notify each local educational agency that is eligible 
     for educational agencies assistance for fiscal year 1999 of 
     that agency's eligibility for such assistance and the amount 
     of such assistance for which that agency is eligible; and
       (2) notify each local educational agency that is eligible 
     for an educational agencies payment for fiscal year 1999 of 
     that agency's eligibility for such payment and the amount of 
     the payment for which that agency is eligible.
       (c) Disbursement of Funds.--The Secretary of Defense shall 
     disburse funds made available under paragraphs (1) and (2) of 
     subsection (a) not later than 30 days after the date on which 
     notification to the eligible local educational agencies is 
     provided pursuant to subsection (b).
       (d) Definitions.--In this section:
       (1) The term ``educational agencies assistance'' means 
     assistance authorized under section 386(b) of the National 
     Defense Authorization Act for Fiscal Year 1993 (Public Law 
     102-484; 20 U.S.C. 7703 note).
       (2) The term ``educational agencies payments'' means 
     payments authorized under section 386(d) of the National 
     Defense Authorization Act for Fiscal Year 1993 (Public Law 
     102-484; 20 U.S.C. 7703 note).
       (3) The term ``local educational agency'' has the meaning 
     given that term in section 8013(9) of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 7713(9)).

     SEC. 373. DEPARTMENT OF DEFENSE READINESS REPORTING SYSTEM.

       (a) Establishment of System.--(1) Chapter 2 of title 10, 
     United States Code, is amended by inserting after section 116 
     the following new section:

     ``Sec. 117. Readiness reporting system: establishment; 
       reporting to congressional committees

       ``(a) Required Readiness Reporting System.--The Secretary 
     of Defense shall establish a comprehensive readiness 
     reporting system for the Department of Defense. The readiness 
     reporting system shall measure in an objective, accurate, and 
     timely manner the capability of the armed forces to carry 
     out--
       ``(1) the National Security Strategy prescribed by the 
     President in the most recent annual national security 
     strategy report under section 108 of the National Security 
     Act of 1947 (50 U.S.C. 404a);
       ``(2) the defense planning guidance provided by the 
     Secretary of Defense pursuant to section 113(g) of this 
     title; and
       ``(3) the National Military Strategy prescribed by the 
     Chairman of the Joint Chiefs of Staff.

[[Page H8119]]

       ``(b) Readiness Reporting System Characteristics.--In 
     establishing the readiness reporting system, the Secretary 
     shall ensure--
       ``(1) that the readiness reporting system is applied 
     uniformly throughout the Department of Defense;
       ``(2) that information in the readiness reporting system is 
     continually updated, with any change in the overall readiness 
     status of a unit, an element of the training establishment, 
     or an element of defense infrastructure, that is required to 
     be reported as part of the readiness reporting system, being 
     reported within 24 hours of the event necessitating the 
     change in readiness status; and
       ``(3) that sufficient resources are provided to establish 
     and maintain the system so as to allow reporting of changes 
     in readiness status as required by this section.
       ``(c) Capabilities.--The readiness reporting system shall 
     measure such factors relating to readiness as the Secretary 
     prescribes, except that the system shall include the 
     capability to do each of the following:
       ``(1) Measure, on a monthly basis, the capability of units 
     (both as elements of their respective armed force and as 
     elements of joint forces) to conduct their assigned wartime 
     missions.
       ``(2) Measure, on a quarterly basis, the capability of 
     training establishments to provide trained and ready forces 
     for wartime missions.
       ``(3) Measure, on a quarterly basis, the capability of 
     defense installations and facilities and other elements of 
     Department of Defense infrastructure, both in the United 
     States and abroad, to provide appropriate support to forces 
     in the conduct of their wartime missions.
       ``(4) Measure, on a monthly basis, critical warfighting 
     deficiencies in unit capability.
       ``(5) Measure, on a quarterly basis, critical warfighting 
     deficiencies in training establishments and defense 
     infrastructure.
       ``(6) Measure, on a monthly basis, the level of current 
     risk based upon the readiness reporting system relative to 
     the capability of forces to carry out their wartime missions.
       ``(d) Quarterly and Monthly Joint Readiness Reviews.--(1) 
     The Chairman of the Joint Chiefs of Staff shall--
       ``(A) on a quarterly basis, conduct a joint readiness 
     review; and
       ``(B) on a monthly basis, review any changes that have been 
     reported in readiness since the previous joint readiness 
     review.
       ``(2) The Chairman shall incorporate into both the joint 
     readiness review required under paragraph (1)(A) and the 
     monthly review required under paragraph (1)(B) the current 
     information derived from the readiness reporting system and 
     shall assess the capability of the armed forces to execute 
     their wartime missions based upon their posture at the time 
     the review is conducted. The Chairman shall submit to the 
     Secretary of Defense the results of each review under 
     paragraph (1), including the deficiencies in readiness 
     identified during that review.
       ``(e) Submission to Congressional Committees.--The 
     Secretary shall each month submit to the Committee on Armed 
     Services and the Committee on Appropriations of the Senate 
     and the Committee on National Security and the Committee on 
     Appropriations of the House of Representatives a report in 
     writing containing the results of the most recent joint 
     readiness review or monthly review conducted under subsection 
     (d), including the current information derived from the 
     readiness reporting system. Each such report shall be 
     submitted in unclassified form and may, as the Secretary 
     determines necessary, also be submitted in classified form.
       ``(f) Regulations.--The Secretary shall prescribe 
     regulations to carry out this section. In those regulations, 
     the Secretary shall prescribe the units that are subject to 
     reporting in the readiness reporting system, what type of 
     equipment is subject to such reporting, and the elements of 
     the training establishment and of defense infrastructure that 
     are subject to such reporting.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     116 the following new item:
``117. Readiness reporting system: establishment; reporting to 
              congressional committees.''.
       (b) Implementation.--The Secretary of Defense shall 
     establish and implement the readiness reporting system 
     required by section 117 of title 10, United States Code, as 
     added by subsection (a), so as to ensure that the 
     capabilities required by subsection (c) of that section are 
     attained not later than January 15, 2000.
       (c) Implementation Plan.--Not later than March 1, 1999, the 
     Secretary of Defense shall submit to Congress a report 
     setting forth the Secretary's plan for implementation 
     of section 117 of title 10, United States Code, as added 
     by subsection (a).
       (d) Repeal of Quarterly Readiness Report Requirement.--(1) 
     Effective January 15, 2000, or the date on which the first 
     report of the Secretary of Defense is submitted under section 
     117(e) of title 10, United States Code, as added by 
     subsection (a), whichever is later, the Secretary of Defense 
     shall cease to submit reports under section 482 of title 10, 
     United States Code.
       (2) Effective June 1, 2001--
       (A) section 482 of title 10, United States Code, is 
     repealed; and
       (B) the table of sections at the beginning of chapter 23 of 
     such title is amended by striking out the item relating to 
     that section.

     SEC. 374. SPECIFIC EMPHASIS OF PROGRAM TO INVESTIGATE FRAUD, 
                   WASTE, AND ABUSE WITHIN DEPARTMENT OF DEFENSE.

       Section 392 of the National Defense Authorization Act for 
     Fiscal Year 1998 (Public Law 105-85; 10 U.S.C. 113 note) is 
     amended by inserting before the period the following: ``and 
     any fraud, waste, and abuse occurring in connection with 
     overpayments made to vendors by the Department of Defense, 
     including overpayments identified under section 354 of the 
     National Defense Authorization Act for Fiscal Year 1996 
     (Public Law 104-106; 10 U.S.C. 2461 note)''.

     SEC. 375. CONDITION FOR PROVIDING FINANCIAL ASSISTANCE FOR 
                   SUPPORT OF ADDITIONAL DUTIES ASSIGNED TO THE 
                   ARMY NATIONAL GUARD.

       (a) Competitive Source Selection.--Section 113(b) of title 
     32, United States Code, is amended to read as follows:
       ``(b) Covered Activities.--(1) Except as provided in 
     paragraph (2), financial assistance may be provided for the 
     performance of an activity by the Army National Guard under 
     subsection (a) only if--
       ``(A) the activity is carried out in the performance of a 
     responsibility of the Secretary of the Army under paragraph 
     (6), (10), or (11) of section 3013(b) of title 10; and
       ``(B) the Army National Guard was selected to perform the 
     activity under competitive procedures that permit all 
     qualified public-sector and private-sector sources to submit 
     offers and be considered for selection to perform the 
     activity on the basis of the offers.
       ``(2) Paragraph (1)(B) does not apply to an activity that, 
     on the date of the enactment of this subsection, was 
     performed for the Federal Government by employees of the 
     Federal Government or employees of a State.''.
       (b) Prospective Applicability.--Subsection (b)(1)(B) of 
     section 113 of title 32, United States Code (as added by 
     subsection (a) of this section), does not apply to--
       (1) financial assistance provided under that section before 
     October 1, 1998; or
       (2) financial assistance for an activity that, before May 
     9, 1998, the Secretary of the Army identified in writing as 
     being under consideration for supporting with financial 
     assistance under that section.

     SEC. 376. DEMONSTRATION PROGRAM TO IMPROVE QUALITY OF 
                   PERSONAL PROPERTY SHIPMENTS OF MEMBERS.

       (a) Definition.--In this section, the term ``current 
     demonstration program'' means the pilot program to improve 
     the movement of household goods of members of the Armed 
     Forces that is identified in the re-engineering pilot 
     solicitation of the Military Traffic Management Command 
     designated as DAMTO1-97-R-3001.
       (b) Completion of Current Demonstration Program.--The 
     Secretary of Defense shall complete the current demonstration 
     program to improve the quality of personal property shipments 
     within the Department of Defense not later than October 1, 
     1999.
       (c) Evaluations of Current and Alternative 
     Demonstrations.--(1) Not later than August 31, 1999, the 
     Secretary of Defense shall submit to Congress a report 
     evaluating the following:
       (A) Whether the current demonstration program, as 
     implemented, meets the goals for the current demonstration 
     program previously agreed upon between the Department of 
     Defense and representatives of private sector entities 
     involved in the transportation of household goods for members 
     of the Armed Forces, as such goals are contained in the 
     report of the Comptroller General designated as report 
     ``NSIAD 97-49''.
       (B) Whether the demonstration program contained in the 
     proposal prepared for the Secretary of Defense by private 
     sector entities involved in the transportation of household 
     goods for members of the Armed Forces as an alternative to 
     the current demonstration program would, if implemented, be 
     likely to meet the goals for the current demonstration 
     program.
       (2) The Secretary shall also submit to Congress interim 
     reports regarding the progress of the current demonstration 
     program not later than January 15, 1999, and April 15, 1999.
       (d) Prohibition.--The Secretary of Defense may not exercise 
     any option with respect to the current demonstration program 
     that would have the effect of extending the current 
     demonstration program after October 1, 1999, or otherwise 
     continue the current demonstration program after that date, 
     until the end of the 30-day period beginning on the date on 
     which the Secretary submits the report required under 
     subsection (c)(1).

     SEC. 377. PILOT PROGRAM FOR ACCEPTANCE AND USE OF LANDING 
                   FEES CHARGED FOR USE OF DOMESTIC MILITARY 
                   AIRFIELDS BY CIVIL AIRCRAFT.

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

[[Page H8120]]

     military department under its pilot program as of December 
     31, 1999.

     SEC. 378. STRATEGIC PLAN FOR EXPANSION OF DISTANCE LEARNING 
                   INITIATIVES.

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

     SEC. 379. PUBLIC AVAILABILITY OF OPERATING AGREEMENTS BETWEEN 
                   MILITARY INSTALLATIONS AND FINANCIAL 
                   INSTITUTIONS.

       With respect to an agreement between the commander of a 
     military installation in the United States (or the designee 
     of such an installation commander) and a financial 
     institution that permits, allows, or otherwise authorizes the 
     provision of financial services by the financial institution 
     on the military installation, nothing in the terms or nature 
     of such an agreement shall be construed to exempt the 
     agreement from the provisions of sections 552 and 552a of 
     title 5, United States Code.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Revision in permanent end strength levels.
Sec. 403. Date for submission of annual manpower requirements report.
Sec. 404. Additional exemption from percentage limitation on number of 
              lieutenant generals and vice admirals.
Sec. 405. Extension of authority for Chairman of the Joint Chiefs of 
              Staff to designate up to 12 general and flag officer 
              positions to be excluded from general and flag officer 
              grade limitations.
Sec. 406. Exception for Chief, National Guard Bureau, from limitation 
              on number of officers above major general.
Sec. 407. Limitation on daily average of personnel on active duty in 
              grades E-8 and E-9.

                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the 
              reserves.
Sec. 413. End strengths for military technicians (dual status).
Sec. 414. Increase in number of members in certain grades authorized to 
              serve on active duty in support of the reserves.
Sec. 415. Consolidation of strength authorizations for active status 
              Naval Reserve flag officers of the Navy Medical 
              Department Staff Corps.

              Subtitle C--Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.

                       Subtitle A--Active Forces

     SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

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

     SEC. 402. REVISION IN PERMANENT END STRENGTH LEVELS.

       (a) Revised End Strength Floors.--Subsection (b) of section 
     691 of title 10, United States Code, is amended--
       (1) in paragraph (1), by striking out ``495,000'' and 
     inserting in lieu thereof ``480,000'';
       (2) in paragraph (2), by striking out ``390,802'' and 
     inserting in lieu thereof ``372,696'';
       (3) in paragraph (3), by striking out ``174,000'' and 
     inserting in lieu thereof ``172,200''; and
       (4) in paragraph (4), by striking out ``371,577'' and 
     inserting in lieu thereof ``370,802''.
       (b) Revision to Flexibility Authority for the Army.--
     Subsection (e) of such section is amended by striking out ``1 
     percent or, in the case of the Army, by not more than 1.5 
     percent,'' and inserting in lieu thereof ``0.5 percent.''
       (c) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 1998.

     SEC. 403. DATE FOR SUBMISSION OF ANNUAL MANPOWER REQUIREMENTS 
                   REPORT.

       Section 115a(a) of title 10, United States Code, is 
     amended--
       (1) by striking out ``, not later than February 15 of each 
     fiscal year,'' in the first sentence; and
       (2) by striking out ``The report shall be in writing and'' 
     in the second sentence and inserting in lieu thereof ``The 
     report, which shall be in writing, shall be submitted each 
     year not later than 45 days after the date on which the 
     President submits to Congress the budget for the next fiscal 
     year under section 1105 of title 31. The report''.

     SEC. 404. ADDITIONAL EXEMPTION FROM PERCENTAGE LIMITATION ON 
                   NUMBER OF LIEUTENANT GENERALS AND VICE 
                   ADMIRALS.

       Section 525(b)(4)(B) of title 10, United States Code, is 
     amended by striking out ``six'' and inserting in lieu thereof 
     ``seven''.

     SEC. 405. EXTENSION OF AUTHORITY FOR CHAIRMAN OF THE JOINT 
                   CHIEFS OF STAFF TO DESIGNATE UP TO 12 GENERAL 
                   AND FLAG OFFICER POSITIONS TO BE EXCLUDED FROM 
                   GENERAL AND FLAG OFFICER GRADE LIMITATIONS.

       Section 526(b)(2) of title 10, United States Code, is 
     amended by striking out ``October 1, 1998'' and inserting in 
     lieu thereof ``October 1, 2002''.

     SEC. 406. EXCEPTION FOR CHIEF, NATIONAL GUARD BUREAU, FROM 
                   LIMITATION ON NUMBER OF OFFICERS ABOVE MAJOR 
                   GENERAL.

       Section 525(b) of title 10, United States Code, is amended 
     by adding at the end the following new paragraph:
       ``(6) An officer while serving as Chief of the National 
     Guard Bureau is in addition to the number that would 
     otherwise be permitted for that officer's armed force for 
     officers serving on active duty in grades above major general 
     under paragraph (1).''.

     SEC. 407. LIMITATION ON DAILY AVERAGE OF PERSONNEL ON ACTIVE 
                   DUTY IN GRADES E-8 AND E-9.

       (a) Fiscal Year Basis for Application of Limitation.--The 
     first sentence of section 517(a) of title 10, United States 
     Code, is amended--
       (1) by striking out ``a calendar year'' and inserting in 
     lieu thereof ``a fiscal year''; and
       (2) by striking out ``January 1 of that year'' and 
     inserting in lieu thereof ``the first day of that fiscal 
     year''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect on October 1, 1999.

                       Subtitle B--Reserve Forces

     SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

       (a) In General.--The Armed Forces are authorized strengths 
     for Selected Reserve personnel of the reserve components as 
     of September 30, 1999, as follows:
       (1) The Army National Guard of the United States, 357,223.
       (2) The Army Reserve, 208,003.
       (3) The Naval Reserve, 90,843.
       (4) The Marine Corps Reserve, 40,018.
       (5) The Air National Guard of the United States, 106,992.
       (6) The Air Force Reserve, 74,243.
       (7) The Coast Guard Reserve, 8,000.
       (b) Waiver Authority.--The Secretary of Defense may vary an 
     end strength authorized by subsection (a) by not more than 2 
     percent.
       (c) Adjustments.--The end strengths prescribed by 
     subsection (a) for the Selected Reserve of any reserve 
     component shall be proportionately reduced by--
       (1) the total authorized strength of units organized to 
     serve as units of the Selected Reserve of such component 
     which are on active duty (other than for training) at the end 
     of the fiscal year; and
       (2) the total number of individual members not in units 
     organized to serve as units of the Selected Reserve of such 
     component who are on active duty (other than for training or 
     for unsatisfactory participation in training) without their 
     consent at the end of the fiscal year.

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

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

       Within the end strengths prescribed in section 411(a), the 
     reserve components of the Armed Forces are authorized, as of 
     September 30, 1999, the following number of Reserves to be 
     serving on full-time active duty or full-time duty, in the 
     case of members of the National Guard, for the purpose of 
     organizing, administering, recruiting, instructing, or 
     training the reserve components:
       (1) The Army National Guard of the United States, 21,986.
       (2) The Army Reserve, 12,807.
       (3) The Naval Reserve, 15,590.
       (4) The Marine Corps Reserve, 2,362.
       (5) The Air National Guard of the United States, 10,931.
       (6) The Air Force Reserve, 992.

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

       The minimum number of military technicians (dual status) as 
     of the last day of fiscal year 1999 for the reserve 
     components of the Army and the Air Force (notwithstanding 
     section 129 of title 10, United States Code) shall be the 
     following:

[[Page H8121]]

       (1) For the Army Reserve, 5,395.
       (2) For the Army National Guard of the United States, 
     23,125.
       (3) For the Air Force Reserve, 9,761.
       (4) For the Air National Guard of the United States, 
     22,408.

     SEC. 414. INCREASE IN NUMBER OF MEMBERS IN CERTAIN GRADES 
                   AUTHORIZED TO SERVE ON ACTIVE DUTY IN SUPPORT 
                   OF THE RESERVES.

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

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

       (b) Senior Enlisted Members.--The table in section 12012(a) 
     of such title is amended to read as follows:
       

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

       (c) Effective Date.--The amendments made by this section 
     shall take efffect on October 1, 1998.

     SEC. 415. CONSOLIDATION OF STRENGTH AUTHORIZATIONS FOR ACTIVE 
                   STATUS NAVAL RESERVE FLAG OFFICERS OF THE NAVY 
                   MEDICAL DEPARTMENT STAFF CORPS.

       Section 12004(c) of title 10, United States Code, is 
     amended--
       (1) in the table in paragraph (1)--
       (A) by striking out the item relating to the Medical Corps 
     and inserting in lieu thereof the following:
    ``Medical Department staff corps..............................9''; 
     and
       (B) by striking out the items relating to the Dental Corps, 
     the Nurse Corps, and the Medical Service Corps; and
       (2) by adding at the end the following:
       ``(4)(A) For the purposes of paragraph (1), the Medical 
     Department staff corps referred to in the table are as 
     follows:
       ``(i) The Medical Corps.
       ``(ii) The Dental Corps.
       ``(iii) The Nurse Corps.
       ``(iv) The Medical Service Corps.
       ``(B) Each of the Medical Department staff corps is 
     authorized one rear admiral (lower half) within the strength 
     authorization distributed to the Medical Department staff 
     corps under paragraph (1). The Secretary of the Navy shall 
     distribute the remainder of the strength authorization for 
     the Medical Department staff corps under that paragraph among 
     those staff corps as the Secretary determines appropriate to 
     meet the needs of the Navy.''.

              Subtitle C--Authorization of Appropriations

     SEC. 421. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY 
                   PERSONNEL.

       There is hereby authorized to be appropriated to the 
     Department of Defense for military personnel for fiscal year 
     1999 a total of $70,592,286,000. The authorization in the 
     preceding sentence supersedes any other authorization of 
     appropriations (definite or indefinite) for such purpose for 
     fiscal year 1999.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Codification of eligibility of retired officers and former 
              officers for consideration by special selection boards.
Sec. 502. Involuntary separation pay denied for officer discharged for 
              failure of selection for promotion requested by the 
              officer.
Sec. 503. Streamlined selective retention process for regular officers.
Sec. 504. Permanent applicability of limitations on years of active 
              naval service of Navy limited duty officers in grades of 
              commander and captain.
Sec. 505. Tenure of Chief of the Air Force Nurse Corps.
Sec. 506. Grade of Air Force Assistant Surgeon General for Dental 
              Services.
Sec. 507. Review regarding allocation of Naval Reserve Officers' 
              Training Corps scholarships among participating colleges 
              and universities.

                 Subtitle B--Reserve Component Matters

Sec. 511. Use of Reserves for emergencies involving weapons of mass 
              destruction.
Sec. 512. Service required for retirement of National Guard officer in 
              higher grade.
Sec. 513. Reduced time-in-grade requirement for reserve general and 
              flag officers involuntarily transferred from active 
              status.
Sec. 514. Active status service requirement for promotion consideration 
              for Army and Air Force reserve component brigadier 
              generals.
Sec. 515. Composition of selective early retirement boards for rear 
              admirals of the Naval Reserve and major generals of the 
              Marine Corps Reserve.
Sec. 516. Authority for temporary waiver for certain Army Reserve 
              officers of baccalaureate degree requirement for 
              promotion of reserve officers.
Sec. 517. Furnishing of burial flags for deceased members and former 
              members of the Selected Reserve.

              Subtitle C--Military Education and Training

Sec. 521. Separate housing for male and female recruits during recruit 
              basic training.
Sec. 522. After-hours privacy for recruits during basic training.
Sec. 523. Sense of the House of Representatives relating to small unit 
              assignments by gender during recruit basic training.
Sec. 524. Extension of reporting dates for Commission on Military 
              Training and Gender-Related Issues.
Sec. 525. Improved oversight of innovative readiness training.

           Subtitle D--Decorations, Awards, and Commendations

Sec. 531. Study of new decorations for injury or death in line of duty.
Sec. 532. Waiver of time limitations for award of certain decorations 
              to certain persons.
Sec. 533. Commendation and commemoration of the Navy and Marine Corps 
              personnel who served in the United States Navy Asiatic 
              Fleet from 1910-1942.
Sec. 534. Appreciation for service during World War I and World War II 
              by members of the Navy assigned on board merchant ships 
              as the Naval Armed Guard Service.
Sec. 535. Sense of Congress regarding the heroism, sacrifice, and 
              service of the military forces of South Vietnam, other 
              nations, and indigenous groups in connection with the 
              United States Armed Forces during the Vietnam conflict.
Sec. 536. Sense of Congress regarding the heroism, sacrifice, and 
              service of former South Vietnamese commandos in 
              connection with United States Armed Forces during the 
              Vietnam conflict.
Sec. 537. Prohibition on members of Armed Forces entering correctional 
              facilities to present decorations to persons who have 
              committed serious violent felonies.

   Subtitle E--Administration of Agencies Responsible for Review and 
                     Correction of Military Records

Sec. 541. Personnel freeze.
Sec. 542. Professional staff.
Sec. 543. Ex parte communications.
Sec. 544. Timeliness standards.
Sec. 545. Scope of correction of military records.

                          Subtitle F--Reports

Sec. 551. Report on personnel retention.
Sec. 552. Report on process for selection of members for service on 
              courts-martial.
Sec. 553. Report on prisoners transferred from United States 
              Disciplinary Barracks, Fort Leavenworth, Kansas, to 
              Federal Bureau of Prisons.
Sec. 554. Review and report regarding the distribution of National 
              Guard full-time support among the States.

                       Subtitle G--Other Matters

Sec. 561. Two-year extension of certain force drawdown transition 
              authorities relating to personnel management and 
              benefits.
Sec. 562. Leave without pay for suspended academy cadets and 
              midshipmen.
Sec. 563. Continued eligibility under Voluntary Separation Incentive 
              program for members who involuntarily lose membership in 
              a reserve component.
Sec. 564. Reinstatement of definition of financial institution in 
              authorities for reimbursement of defense personnel for 
              Government errors in direct deposit of pay.
Sec. 565. Increase in maximum amount for College Fund program.
Sec. 566. Central Identification Laboratory, Hawaii.
Sec. 567. Military funeral honors for veterans.
Sec. 568. Status in the Naval Reserve of cadets at the Merchant Marine 
              Academy.
Sec. 569. Repeal of restriction on civilian employment of enlisted 
              members.
Sec. 570. Transitional compensation for abused dependent children not 
              residing with the spouse or former spouse of a member 
              convicted of dependent abuse.
Sec. 571. Pilot program for treating GED and home school diploma 
              recipients as high school graduates for determinations of 
              eligibility for enlistment in the Armed Forces.
Sec. 572. Sense of Congress concerning New Parent Support Program and 
              military families.
Sec. 573. Advancement of Benjamin O. Davis, Junior, to grade of general 
              on the retired list of the Air Force.
Sec. 574. Sense of the House of Representatives concerning adherence by 
              civilians in military chain of command to the standard of 
              exemplary conduct required of commanding officers and 
              others in authority in the Armed Forces.

                  Subtitle A--Officer Personnel Policy

     SEC. 501. CODIFICATION OF ELIGIBILITY OF RETIRED OFFICERS AND 
                   FORMER OFFICERS FOR CONSIDERATION BY SPECIAL 
                   SELECTION BOARDS.

       (a) Persons Not Considered by Promotion Boards Due to 
     Administrative Error.--Subsection (a) of section 628 of title 
     10, United States Code, is amended--
       (1) by striking out paragraph (1) (and the subsection 
     designation at the beginning of that paragraph) and inserting 
     in lieu thereof the following:

[[Page H8122]]

       ``(a) Persons Not Considered by Promotion Boards Due to 
     Administrative Error.--(1) If the Secretary of the military 
     department concerned determines that because of 
     administrative error a person who should have been considered 
     for selection for promotion by a promotion board was not so 
     considered, the Secretary shall convene a special selection 
     board under this subsection to determine whether that person 
     (whether or not then on active duty) should be recommended 
     for promotion.'';
       (2) in paragraph (2), by striking out ``the officer as his 
     record'' in the first sentence and inserting in lieu thereof 
     ``the person whose name was referred to it for consideration 
     as that record''; and
       (3) in paragraph (3), by striking out ``an officer in a 
     grade'' and all that follows through ``the officer'' and 
     inserting in lieu thereof ``a person whose name was referred 
     to it for consideration for selection for appointment to a 
     grade other than a general officer or flag officer grade, the 
     person''.
       (b) Persons Considered by Promotion Boards in Unfair 
     Manner.--Subsection (b) of such section is amended--
       (1) by striking out paragraph (1) and inserting in lieu 
     thereof the following:
       ``(b) Persons Considered by Promotion Boards in Unfair 
     Manner.--(1) If the Secretary of the military department 
     concerned determines, in the case of a person who was 
     considered for selection for promotion by a promotion board 
     but was not selected, that there was material unfairness with 
     respect to that person, the Secretary may convene a special 
     selection board under this subsection to determine whether 
     that person (whether or not then on active duty) should be 
     recommended for promotion. In order to determine that there 
     was material unfairness, the Secretary must determine that--
       ``(A) the action of the promotion board that considered the 
     person was contrary to law or involved material error of fact 
     or material administrative error; or
       ``(B) the board did not have before it for its 
     consideration material information.'';
       (2) in paragraph (2), by striking out ``the officer as his 
     record'' in the first sentence and inserting in lieu thereof 
     ``the person whose name was referred to it for consideration 
     as that record''; and
       (3) in paragraph (3)--
       (A) by striking out ``an officer'' and inserting in lieu 
     thereof ``a person''; and
       (B) by striking out ``the officer'' and inserting in lieu 
     thereof ``the person''.
       (c) Conforming Amendments.--(1) Subsection (c) of such 
     section is amended--
       (A) by inserting ``Reports of Boards.--'' after ``(c)'';
       (B) by striking out ``officer'' both places it appears in 
     paragraph (1) and inserting in lieu thereof ``person''; and
       (C) in paragraph (2), by adding the following new sentence 
     at the end: ``However, in the case of a board convened under 
     this section to consider a warrant officer or former warrant 
     officer, the provisions of sections 576(d) and 576(f) of this 
     title (rather than the provisions of section 617(b) and 618 
     of this title) apply to the report and proceedings of the 
     board in the same manner as they apply to the report and 
     proceedings of a selection board convened under section 573 
     of this title.''.
       (2) Subsection (d)(1) of such section is amended--
       (A) by inserting ``Appointment of Persons Selected by 
     Boards.--'' after ``(d)'';
       (B) by striking out ``an officer'' and inserting in lieu 
     thereof ``a person'';
       (C) by striking out ``such officer'' and inserting in lieu 
     thereof ``that person'';
       (D) by striking out ``the next higher grade'' the second 
     place it appears and inserting in lieu thereof ``that 
     grade''; and
       (E) by adding at the end the following: ``However, in the 
     case of a board convened under this section to consider a 
     warrant officer or former warrant officer, if the report of 
     that board, as approved by the Secretary concerned, 
     recommends that warrant officer or former warrant officer for 
     promotion to the next higher grade, that person shall, as 
     soon as practicable, be appointed to the next higher grade in 
     accordance with provisions of section 578(c) of this title 
     (rather than subsections (b), (c), and (d) of section 624 of 
     this title).''.
       (3) Subsection (d)(2) of such section is amended--
       (A) by striking out ``An officer who is promoted'' and 
     inserting in lieu thereof ``A person who is appointed'';
       (B) by striking out ``such promotion'' and inserting in 
     lieu thereof ``that appointment''; and
       (C) by adding at the end the following new sentence: ``In 
     the case of a person who is not on the active-duty list when 
     appointed to the next higher grade, placement of that person 
     on the active-duty list pursuant to the preceding sentence 
     shall be only for purposes of determination of eligibility of 
     that person for consideration for promotion by any 
     subsequent special selection board under this section.''.
       (d) Applicability to Deceased Persons.--Subsection (e) of 
     such section is amended to read as follows:
       ``(e) Deceased Persons.--If a person whose name is being 
     considered for referral to a special selection board under 
     this section dies before the completion of proceedings under 
     this section with respect to that person, this section shall 
     be applied to that person posthumously.''.
       (e) Recodification of Administrative Matters.--Such section 
     is further amended by adding at the end the following::
       ``(f) Convening of Boards.--A board convened under this 
     section--
       ``(1) shall be convened under regulations prescribed by the 
     Secretary of Defense;
       ``(2) shall be composed in accordance with section 612 of 
     this title or, in the case of board to consider a warrant 
     officer or former warrant officer, in accordance with section 
     573 of this title and regulations prescribed by the Secretary 
     of the military department concerned; and
       ``(3) shall be subject to the provisions of section 613 of 
     this title.
       ``(g) Promotion Board Defined.--In this section, the term 
     `promotion board' means a selection board convened by the 
     Secretary of a military department under section 573(a) or 
     611(a) of this title.''.
       (f) Ratification of Codified Practice.--The consideration 
     by a special selection board convened under section 628 of 
     title 10, United States Code, before the date of the 
     enactment of this Act of a person who, at the time of 
     consideration, was a retired officer or former officer of the 
     Armed Forces (including a deceased retired or former officer) 
     is hereby ratified.

     SEC. 502. INVOLUNTARY SEPARATION PAY DENIED FOR OFFICER 
                   DISCHARGED FOR FAILURE OF SELECTION FOR 
                   PROMOTION REQUESTED BY THE OFFICER.

       (a) Ineligibility for Separation Pay.--Section 1174(a) of 
     title 10, United States Code, is amended by adding at the end 
     the following:
       ``(3) Notwithstanding paragraphs (1) and (2), an officer 
     discharged under any provision of chapter 36 of this title 
     for twice failing of selection for promotion to the next 
     higher grade is not entitled to separation pay under this 
     section if either (or both) of those failures of selection 
     for promotion was by the action of a selection board to which 
     the officer submitted a request in writing not to be selected 
     for promotion or who otherwise directly caused his 
     nonselection through written communication to the Board under 
     section 614(b) of this title.''.
       (b) Report of Selection Board To Name Officers Requesting 
     Nonselection.--Section 617 of such title is amended by adding 
     at the end the following:
       ``(c) A selection board convened under section 611(a) of 
     this title shall include in its report to the Secretary 
     concerned the name of any regular officer considered and not 
     recommended for promotion by the board who submitted to the 
     board a request not to be selected for promotion or who 
     otherwise directly caused his nonselection through written 
     communication to the Board under section 614(b) of this 
     title.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to selection boards convened under 
     section 611(a) of title 10, United States Code, on or after 
     the date of the enactment of this Act.

     SEC. 503. STREAMLINED SELECTIVE RETENTION PROCESS FOR REGULAR 
                   OFFICERS.

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

     SEC. 504. PERMANENT APPLICABILITY OF LIMITATIONS ON YEARS OF 
                   ACTIVE NAVAL SERVICE OF NAVY LIMITED DUTY 
                   OFFICERS IN GRADES OF COMMANDER AND CAPTAIN.

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

     SEC. 505. TENURE OF CHIEF OF THE AIR FORCE NURSE CORPS.

       Section 8069(b) of title 10, United States Code, is amended 
     by striking out ``, but not for more than three years, and 
     may not be reappointed to the same position'' in the last 
     sentence.

     SEC. 506. GRADE OF AIR FORCE ASSISTANT SURGEON GENERAL FOR 
                   DENTAL SERVICES.

       Section 8081 of title 10, United States Code, is amended--
       (1) in the first sentence, by striking out ``major'' and 
     inserting in lieu thereof ``lieutenant colonel''; and
       (2) by striking out the second sentence and inserting in 
     lieu thereof the following: ``An appointee who holds a lower 
     regular grade shall be appointed in the regular grade of 
     brigadier general. The Assistant Surgeon General for Dental 
     Services serves at the pleasure of the Secretary.''.

[[Page H8123]]

     SEC. 507. REVIEW REGARDING ALLOCATION OF NAVAL RESERVE 
                   OFFICERS' TRAINING CORPS SCHOLARSHIPS AMONG 
                   PARTICIPATING COLLEGES AND UNIVERSITIES.

       (a) Review.--The Secretary of the Navy should review the 
     process and criteria used to determine the number of Naval 
     Reserve Officer Training Corps (NROTC) scholarship recipients 
     who attend each college and university participating in the 
     NROTC program and how those scholarships are allocated to 
     those schools.
       (b) Purpose of Review.--The review should seek to 
     determine--
       (1) whether the method used by the Navy to allocate NROTC 
     scholarships could be changed so as to increase the 
     likelihood that scholarship awardees attend the school of 
     their choice while maintaining the Navy's capability to 
     attain the objectives of the Naval ROTC program to meet the 
     annual requirement for newly commissioned Navy ensigns and 
     Marine Corps second lieutenants, as well as the overall 
     needs of the officer corps of the Department of the Navy; 
     and
       (2) within the determination under paragraph (1), whether 
     the likelihood of a scholarship awardee who wants to attend a 
     school of choice in the student's State of residence can be 
     increased.
       (c) Matters Reviewed.--The matters reviewed should include 
     the following:
       (1) The factors and criteria considered in the process of 
     determining the allocation of NROTC scholarships to host 
     colleges and universities.
       (2) Historical data indicating the extent to which NROTC 
     scholarship recipients attend colleges and universities they 
     have indicated a preference to attend, as opposed to 
     attending solely or mainly in order to receive an NROTC 
     scholarship.
       (3) The extent to which the process used by the Navy to 
     allocate NROTC scholarships to participating colleges and 
     universities contributes to optimizing resources available 
     for the operation of the NROTC program and improving the 
     professional education of NROTC midshipmen.
       (4) The effects that eliminating the controlled allocation 
     of scholarships to host colleges and universities, entirely 
     or by State, would have on the NROTC program.
       (d) Consultation Requirement.--In carrying out a review 
     under subsection (a), the Secretary should consult with 
     officials of interested associations and of colleges and 
     universities which host ROTC units and such other officials 
     as the Secretary considers appropriate.

                 Subtitle B--Reserve Component Matters

     SEC. 511. USE OF RESERVES FOR EMERGENCIES INVOLVING WEAPONS 
                   OF MASS DESTRUCTION.

       (a) Order to Active Duty.--(1) Section 12304 of title 10, 
     United States Code, is amended--
       (A) in subsection (a), by inserting ``or that it is 
     necessary to provide assistance referred to in subsection 
     (b)'' after ``to augment the active forces for any 
     operational mission'';
       (B) in subsection (b)--
       (i) by striking out ``(b)'' and inserting in lieu thereof 
     ``(c) Limitations.--(1)''; and
       (ii) by striking out ``, or to provide'' and inserting in 
     lieu thereof ``or, except as provided in subsection (b), to 
     provide'';
       (C) by redesignating subsection (c) as paragraph (2); and
       (D) by inserting after subsection (a) the following new 
     subsection (b):
       ``(b) Support for Responses to Certain Emergencies.--The 
     authority under subsection (a) includes authority to order a 
     unit or member to active duty to provide assistance in 
     responding to an emergency involving a use or threatened use 
     of a weapon of mass destruction.''.
       (2) Subsection (i) of such section is amended to read as 
     follows:
       ``(i) Definitions.--In this section:
       ``(1) The term `Individual Ready Reserve mobilization 
     category' means, in the case of any reserve component, the 
     category of the Individual Ready Reserve described in section 
     10144(b) of this title.
       ``(2) The term `weapon of mass destruction' has the meaning 
     given that term in section 1403 of the Defense Against 
     Weapons of Mass Destruction Act of 1996 (50 U.S.C. 
     2302(1)).''.
       (3) Such section is further amended--
       (A) in subsection (a), by inserting ``Authority.--'' after 
     ``(a)'';
       (B) in subsection (d), by inserting ``Exclusion From 
     Strength Limitations.--'' after ``(d)'';
       (C) in subsection (e), by inserting ``Policies and 
     Procedures.--'' after ``(e)'';
       (D) in subsection (f), by inserting ``Notification of 
     Congress.--'' after ``(f)'';
       (E) in subsection (g), by inserting ``Termination of 
     Duty.--'' after ``(g)''; and
       (F) in subsection (h), by inserting ``Relationship to War 
     Powers Resolution.--'' after ``(h)''.
       (b) Use of Active Guard and Reserve Personnel.--(1) Section 
     12310 of title 10, United States Code, is amended by adding 
     at the end the following new subsection:
       ``(c)(1) A Reserve on active duty as described in 
     subsection (a), or a Reserve who is a member of the National 
     Guard serving on full-time National Guard duty under section 
     502(f) of title 32 in connection with functions referred to 
     in subsection (a), may, subject to paragraph (3), perform 
     duties in support of emergency preparedness programs to 
     prepare for or to respond to any emergency involving the use 
     of a weapon of mass destruction (as defined in section 1403 
     of the Defense Against Weapons of Mass Destruction Act of 
     1996 (50 U.S.C. 2302(1))).
       ``(2) The costs of the pay, allowances, clothing, 
     subsistence, gratuities, travel, and related expenses for a 
     Reserve performing duties under the authority of paragraph 
     (1) shall be paid from the appropriation that is available to 
     pay such costs for other members of the reserve component of 
     that Reserve who are performing duties as described in 
     subsection (a).
       ``(3) A Reserve may perform duties described in paragraph 
     (1) only--
       ``(A) while assigned to the Department of Defense 
     Consequence Management Program Integration Office; or
       ``(B) while assigned to a reserve component rapid 
     assessment element team and performing those duties within 
     the geographical limits of the United States, its territories 
     and possessions, the District of Columbia, and the 
     Commonwealth of Puerto Rico.
       ``(4) The number of Reserves on active duty who are 
     performing duties described in paragraph (1) at the same time 
     may not exceed 228. Reserves on active duty who are 
     performing duties described in paragraph (1) shall be counted 
     against the annual end strength authorizations required by 
     section 115(a)(1)(B) and 115(a)(2) of this title. The 
     justification material for the defense budget request for a 
     fiscal year shall identify the number and component of the 
     Reserves programmed to be performing duties described in 
     paragraph (1) during that fiscal year.
       ``(5) A reserve component rapid assessment element team, 
     and any Reserve assigned to such a team, may not be used to 
     respond to an emergency described in paragraph (1) unless the 
     Secretary of Defense has certified to the Committee on Armed 
     Services of the Senate and the Committee on National Security 
     of the House of Representatives that that team, or that 
     Reserve, possesses the requisite skills, training, and 
     equipment to be proficient in all mission requirements.
       ``(6) If the Secretary of Defense submits to Congress any 
     request for the enactment of legislation to modify the 
     requirements of paragraph (3) or to increase the number of 
     personnel authorized by paragraph (4), the Secretary shall 
     provide with the request--
       ``(A) justification for each such requested modification or 
     for the requested additional personnel and explain the need 
     for the increase in the context of existing or projected 
     similar capabilities at the local, State, and Federal levels; 
     and
       ``(B) the Secretary's plan for sustaining the 
     qualifications of the personnel and teams described in 
     paragraph (3)(B).''.
       (2) The Secretary of Defense may not submit to Congress 
     earlier than 90 days after the date of the receipt by 
     Congress of the report required by section 1411 of this Act a 
     request for the enactment of legislation to modify the 
     requirements of paragraph (3), or to increase the number of 
     personnel authorized by paragraph (4), of section 12310(c) of 
     title 10, United States Code, as added by paragraph (1).

     SEC. 512. SERVICE REQUIRED FOR RETIREMENT OF NATIONAL GUARD 
                   OFFICER IN HIGHER GRADE.

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

     SEC. 513. REDUCED TIME-IN-GRADE REQUIREMENT FOR RESERVE 
                   GENERAL AND FLAG OFFICERS INVOLUNTARILY 
                   TRANSFERRED FROM ACTIVE STATUS.

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

     SEC. 514. ACTIVE STATUS SERVICE REQUIREMENT FOR PROMOTION 
                   CONSIDERATION FOR ARMY AND AIR FORCE RESERVE 
                   COMPONENT BRIGADIER GENERALS.

       Section 14301 of title 10, United States Code, is amended 
     by adding at the end the following new subsection:
       ``(g) A reserve component brigadier general of the Army or 
     the Air Force who is in an inactive status is eligible 
     (notwithstanding subsection (a)) for consideration for 
     promotion to major general by a promotion board convened 
     under section 14101(a) of this title if the officer--
       ``(1) has been in an inactive status for less than one year 
     as of the date of the convening of the promotion board; and
       ``(2) had continuously served for at least one year on the 
     reserve active status list or the active duty list (or a 
     combination of both) immediately before the officer's most 
     recent transfer to an inactive status.''.

[[Page H8124]]

     SEC. 515. COMPOSITION OF SELECTIVE EARLY RETIREMENT BOARDS 
                   FOR REAR ADMIRALS OF THE NAVAL RESERVE AND 
                   MAJOR GENERALS OF THE MARINE CORPS RESERVE.

       (a) In General.--Section 14705(b) of title 10, United 
     States Code, is amended--
       (1) by inserting ``(1)'' after ``(b) Boards.--''; and
       (2) by adding at the end the following:
       ``(2) In the case of such a board convened to consider 
     officers in the grade of rear admiral or major general, the 
     Secretary of the Navy may appoint the board without regard to 
     section 14102(b) of this title. In doing so, however, the 
     Secretary shall ensure that--
       ``(A) each regular commissioned officer appointed to the 
     board holds a grade higher than the grade of rear admiral or 
     major general; and
       ``(B) at least one member of the board is a reserve officer 
     who holds the grade of rear admiral or major general.''.
       (b) Technical Amendments.--Paragraph (1) of such section, 
     as designated by subsection (a)(1), is amended--
       (1) by inserting ``of officers'' after ``consideration''; 
     and
       (2) by inserting ``continuation'' after ``shall convene 
     a''.

     SEC. 516. AUTHORITY FOR TEMPORARY WAIVER FOR CERTAIN ARMY 
                   RESERVE OFFICERS OF BACCALAUREATE DEGREE 
                   REQUIREMENT FOR PROMOTION OF RESERVE OFFICERS.

       (a) Waiver Authority for Army OCS Graduates.--The Secretary 
     of the Army may waive the applicability of section 12205(a) 
     of title 10, United States Code, to any officer who before 
     the date of the enactment of this Act was commissioned 
     through the Army Officer Candidate School. Any such waiver 
     shall be made on a case-by-case basis, considering the 
     individual circumstances of the officer involved, and may 
     continue in effect for no more than two years after the 
     waiver is granted. The Secretary may provide for such a 
     waiver to be effective before the date of the waiver, as 
     appropriate in an individual case.
       (b) Expiration of Authority.--A waiver under this section 
     may not be granted after September 30, 2000.

     SEC. 517. FURNISHING OF BURIAL FLAGS FOR DECEASED MEMBERS AND 
                   FORMER MEMBERS OF THE SELECTED RESERVE.

       Section 2301 of title 38, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(f)(1) The Secretary shall furnish a flag to drape the 
     casket of each deceased member or former member of the 
     Selected Reserve (as described in section 10143 
     of title 10) who is not otherwise eligible for a flag under 
     this section or section 1482(a) of title 10--
       ``(A) who completed at least one enlistment as a member of 
     the Selected Reserve or, in the case of an officer, completed 
     the period of initial obligated service as a member of the 
     Selected Reserve;
       ``(B) who was discharged before completion of the person's 
     initial enlistment as a member of the Selected Reserve or, in 
     the case of an officer, period of initial obligated service 
     as a member of the Selected Reserve, for a disability 
     incurred or aggravated in line of duty; or
       ``(C) who died while a member of the Selected Reserve.
       ``(2) A flag may not be furnished under subparagraphs (A) 
     or (B) of paragraph (1) in the case of a person whose last 
     discharge from service in the Armed Forces was under 
     conditions less favorable than honorable.
       ``(3) After the burial, a flag furnished under paragraph 
     (1) shall be given to the next of kin or to such other person 
     as the Secretary considers appropriate.''.

              Subtitle C--Military Education and Training

     SEC. 521. SEPARATE HOUSING FOR MALE AND FEMALE RECRUITS 
                   DURING RECRUIT BASIC TRAINING.

       (a) Army.--(1) Chapter 401 of title 10, United States Code, 
     is amended by adding at the end the following new section:

     ``Sec. 4319. Recruit basic training: separate housing for 
       male and female recruits

       ``(a) Physically Separate Housing.--(1) The Secretary of 
     the Army shall provide for housing male recruits and female 
     recruits separately and securely from each other during basic 
     training.
       ``(2) To meet the requirements of paragraph (1), the 
     sleeping areas and latrine areas provided for male recruits 
     shall be physically separated from the sleeping areas and 
     latrine areas provided for female recruits by permanent 
     walls, and the areas for male recruits and the areas for 
     female recruits shall have separate entrances.
       ``(3) The Secretary shall ensure that, when a recruit is in 
     an area referred to in paragraph (2), the area is supervised 
     by one or more persons who are authorized and trained to 
     supervise the area.
       ``(b) Alternative Separate Housing.--If male recruits and 
     female recruits cannot be housed as provided under subsection 
     (a) by October 1, 2001, at a particular installation, the 
     Secretary of the Army shall require (on and after that date) 
     that male recruits in basic training at such installation be 
     housed in barracks or other troop housing facilities that are 
     only for males and that female recruits in basic training at 
     such installation be housed in barracks or other troop 
     housing facilities that are only for females.
       ``(c) Construction Planning.--In planning for the 
     construction of housing to be used for housing recruits 
     during basic training, the Secretary of the Army shall ensure 
     that the housing is to be constructed in a manner that 
     facilitates the housing of male recruits and female recruits 
     separately and securely from each other.
       ``(d) Basic Training Defined.--In this section, the term 
     `basic training' means the initial entry training program of 
     the Army that constitutes the basic training of new 
     recruits.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``4319. Recruit basic training: separate housing for male and female 
              recruits.''.

       (3) The Secretary of the Army shall implement section 4319 
     of title 10, United States Code, as added by paragraph (1), 
     as rapidly as feasible and shall ensure that the provisions 
     of that section are applied to all recruit basic training 
     classes beginning not later than the first such class that 
     enters basic training on or after April 15, 1999.
       (b) Navy and Marine Corps.--(1) Part III of subtitle C of 
     title 10, United States Code, is amended by inserting after 
     chapter 601 the following new chapter:

                   ``CHAPTER 602--TRAINING GENERALLY

``Sec.
``6931. Recruit basic training: separate housing for male and female 
              recruits.

     ``Sec. 6931. Recruit basic training: separate housing for 
       male and female recruits

       ``(a) Physically Separate Housing.--(1) The Secretary of 
     the Navy shall provide for housing male recruits and female 
     recruits separately and securely from each other during basic 
     training.
       ``(2) To meet the requirements of paragraph (1), the 
     sleeping areas and latrine areas provided for male recruits 
     shall be physically separated from the sleeping areas and 
     latrine areas provided for female recruits by permanent 
     walls, and the areas for male recruits and the areas for 
     female recruits shall have separate entrances.
       ``(3) The Secretary shall ensure that, when a recruit is in 
     an area referred to in paragraph (2), the area is supervised 
     by one or more persons who are authorized and trained to 
     supervise the area.
       ``(b) Alternative Separate Housing.--If male recruits and 
     female recruits cannot be housed as provided under subsection 
     (a) by October 1, 2001, at a particular installation, the 
     Secretary of the Navy shall require (on and after that date) 
     that male recruits in basic training at such installation be 
     housed in barracks or other troop housing facilities that are 
     only for males and that female recruits in basic training at 
     such installation be housed in barracks or other troop 
     housing facilities that are only for females.
       ``(c) Construction Planning.--In planning for the 
     construction of housing to be used for housing recruits 
     during basic training, the Secretary of the Navy shall ensure 
     that the housing is to be constructed in a manner that 
     facilitates the housing of male recruits and female recruits 
     separately and securely from each other.
       ``(d) Basic Training Defined.--In this section, the term 
     `basic training' means the initial entry training programs of 
     the Navy and Marine Corps that constitute the basic training 
     of new recruits.''.
       (2) The tables of chapters at the beginning of subtitle C, 
     and at the beginning of part III of subtitle C, of such title 
     are amended by inserting after the item relating to chapter 
     601 the following new item:
``602. Training Generally...................................6931''.....

       (3) The Secretary of the Navy shall implement section 6931 
     of title 10, United States Code, as added by paragraph (1), 
     as rapidly as feasible and shall ensure that the provisions 
     of that section are applied to all recruit basic training 
     classes beginning not later than the first such class that 
     enters basic training on or after April 15, 1999.
       (c) Air Force.--(1) Chapter 901 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 9319. Recruit basic training: separate housing for 
       male and female recruits

       ``(a) Physically Separate Housing.--(1) The Secretary of 
     the Air Force shall provide for housing male recruits and 
     female recruits separately and securely from each other 
     during basic training.
       ``(2) To meet the requirements of paragraph (1), the 
     sleeping areas and latrine areas provided for male recruits 
     shall be physically separated from the sleeping areas and 
     latrine areas provided for female recruits by permanent 
     walls, and the areas for male recruits and the areas for 
     female recruits shall have separate entrances.
       ``(3) The Secretary shall ensure that, when a recruit is in 
     an area referred to in paragraph (2), the area is supervised 
     by one or more persons who are authorized and trained to 
     supervise the area.
       ``(b) Alternative Separate Housing.--If male recruits and 
     female recruits cannot be housed as provided under subsection 
     (a) by October 1, 2001, at a particular installation, the 
     Secretary of the Air Force shall require (on and after that 
     date) that male recruits in basic training at such 
     installation be housed in barracks or other troop housing 
     facilities that are only for males and that female recruits 
     in basic training at such installation be housed in barracks 
     or other troop housing facilities that are only for females.
       ``(c) Construction Planning.--In planning for the 
     construction of housing to be used for housing recruits 
     during basic training, the Secretary of the Air Force shall 
     ensure that the housing is to be constructed in a manner that 
     facilitates the housing of male recruits and female recruits 
     separately and securely from each other.
       ``(d) Basic Training Defined.--In this section, the term 
     `basic training' means the initial entry training program of 
     the Air Force that constitutes the basic training of new 
     recruits.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:


[[Page H8125]]


``9319. Recruit basic training: separate housing for male and female 
              recruits.''.

       (3) The Secretary of the Air Force shall implement section 
     9319 of title 10, United States Code, as added by paragraph 
     (1), as rapidly as feasible and shall ensure that the 
     provisions of that section are applied to all recruit basic 
     training classes beginning not later than the first such 
     class that enters basic training on or after April 15, 1999.
       (d) GAO Review of Costs of Separate Housing Facilities for 
     Male and Female Recruits During Recruit Basic Training.--Not 
     later than March 1, 1999, the Comptroller General shall 
     submit to the Committee on Armed Services of the Senate and 
     the Committee on National Security of the House of 
     Representatives a report on the costs that would be incurred 
     by each of the military departments if required to provide 
     housing for male and female recruits during basic training in 
     separate structures. The report shall be prepared separately 
     for each of the Army, Navy, and Air Force and shall be based 
     on reviews and cost analyses prepared independently of the 
     Department of Defense.

     SEC. 522. AFTER-HOURS PRIVACY FOR RECRUITS DURING BASIC 
                   TRAINING.

       (a) Army.--(1) Chapter 401 of title 10, United States Code, 
     is amended by adding after section 4319, as added by section 
     521(a)(1), the following new section:

     ``Sec. 4320. Recruit basic training: privacy

       ``The Secretary of the Army shall require that access by 
     drill sergeants and other training personnel to a living area 
     in which recruits are housed during basic training shall be 
     limited after the end of the training day, other than in the 
     case of an emergency or other exigent circumstance, to drill 
     sergeants and other training personnel who are of the same 
     sex as the recruits housed in that living area or to 
     superiors in the chain of command of those recruits who, if 
     not of the same sex as the recruits housed in that living 
     area, are accompanied by a member (other than a recruit) who 
     is of the same sex as the recruits housed in that living 
     area.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding after the item relating to section 4319, 
     as added by section 521(a)(2), the following new item:

``4320. Recruit basic training: privacy.''.

       (3) The Secretary of the Army shall implement section 4320 
     of title 10, United States Code, as added by paragraph (1), 
     as rapidly as feasible and shall ensure that the provisions 
     of that section are applied to all recruit basic training 
     classes beginning not later than the first such class that 
     enters basic training on or after April 15, 1999.
       (b) Navy.--(1) Chapter 602 of title 10, United States Code, 
     as added by section 521(b)(1), is amended by adding at the 
     end the following new section:

     ``Sec. 6932. Recruit basic training: privacy

       ``The Secretary of the Navy shall require that access by 
     recruit division commanders and other training personnel to a 
     living area in which Navy recruits are housed during basic 
     training shall be limited after the end of the training day, 
     other than in the case of an emergency or other exigent 
     circumstance, to recruit division commanders and other 
     training personnel who are of the same sex as the recruits 
     housed in that living area or to superiors in the chain of 
     command of those recruits who, if not of the same sex as the 
     recruits housed in that living area, are accompanied by a 
     member (other than a recruit) who is of the same sex as the 
     recruits housed in that living area.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``6932. Recruit basic training: privacy.''.

       (3) The Secretary of the Navy shall implement section 6932 
     of title 10, United States Code, as added by paragraph (1), 
     as rapidly as feasible and shall ensure that the provisions 
     of that section are applied to all recruit basic training 
     classes beginning not later than the first such class that 
     enters basic training on or after April 15, 1999.
       (c) Air Force.--(1) Chapter 901 of title 10, United States 
     Code, is amended by adding after section 9319, as added by 
     section 521(c)(1), the following new section:

     ``Sec. 9320. Recruit basic training: privacy

       ``The Secretary of the Air Force shall require that access 
     by military training instructors and other training personnel 
     to a living area in which recruits are housed during basic 
     training shall be limited after the end of the training day, 
     other than in the case of an emergency or other exigent 
     circumstance, to military training instructors and other 
     training personnel who are of the same sex as the recruits 
     housed in that living area or to superiors in the chain of 
     command of those recruits who, if not of the same sex as the 
     recruits housed in that living area, are accompanied by a 
     member (other than a recruit) who is of the same sex as the 
     recruits housed in that living area.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding after the item relating to section 9319, 
     as added by section 521(c)(2), the following new item:

``9320. Recruit basic training: privacy.''.

       (3) The Secretary of the Air Force shall implement section 
     9320 of title 10, United States Code, as added by 
     paragraph (1), as rapidly as feasible and shall ensure 
     that the provisions of that section are applied to all 
     recruit basic training classes beginning not later than 
     the first such class that enters basic training on or 
     after April 15, 1999.

     SEC. 523. SENSE OF THE HOUSE OF REPRESENTATIVES RELATING TO 
                   SMALL UNIT ASSIGNMENTS BY GENDER DURING RECRUIT 
                   BASIC TRAINING.

       It is the sense of the House of Representatives that the 
     Secretary of each military department should require that 
     during recruit basic training male recruits and female 
     recruits be assigned to separate units at the small unit 
     levels designated by the different services as platoons, 
     divisions, or flights, as recommended in the report of the 
     Federal Advisory Committee on Gender-Integrated Training and 
     Related Issues, chaired by Nancy Kassebaum-Baker, that was 
     submitted to the Secretary of Defense on December 16, 1997.

     SEC. 524. EXTENSION OF REPORTING DATES FOR COMMISSION ON 
                   MILITARY TRAINING AND GENDER-RELATED ISSUES.

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

     SEC. 525. IMPROVED OVERSIGHT OF INNOVATIVE READINESS 
                   TRAINING.

       (a) In General.--Section 2012 of title 10, United States 
     Code, is amended by adding at the end the following new 
     subsection:
       ``(j) Oversight and Cost Accounting.--The Secretary of 
     Defense shall establish a program to improve the oversight 
     and cost accounting of training projects conducted in 
     accordance with this section. The program shall include 
     measures to accomplish the following:
       ``(1) Ensure that each project that is proposed to be 
     conducted in accordance with this section (regardless of 
     whether additional funding from the Secretary of Defense is 
     sought) is requested in writing, reviewed for full compliance 
     with this section, and approved in advance of initiation by 
     the Secretary of the military department concerned and, in 
     the case of a project that seeks additional funding from the 
     Secretary of Defense, by the Secretary of Defense.
       ``(2) Ensure that each project that is conducted in 
     accordance with this section is required to provide, within a 
     specified period following completion of the project, an 
     after-action report to the Secretary of Defense.
       ``(3) Require that each application for a project to be 
     conducted in accordance with this section include an analysis 
     and certification that the proposed project would not result 
     in a significant increase in the cost of training (as 
     determined in accordance with procedures prescribed by the 
     Secretary of Defense).
       ``(4) Determine the total program cost for each project, 
     including both those costs that are borne by the military 
     departments from their own accounts and those costs that are 
     borne by defense-wide accounts.
       ``(5) Provide for oversight of project execution to ensure 
     that a training project under this section is carried out in 
     accordance with the proposal for that project as approved.''.
       (b) Implementation.--The Secretary of Defense may not 
     initiate any project under section 2012 of title 10, United 
     States Code, after October 1, 1998, until the program 
     required by subsection (i) of that section (as added by 
     subsection (a)) has been established.

           Subtitle D--Decorations, Awards, and Commendations

     SEC. 531. STUDY OF NEW DECORATIONS FOR INJURY OR DEATH IN 
                   LINE OF DUTY.

       (a) Study of Need and Criteria for New Decoration.--(1) The 
     Secretary of Defense shall carry out a study of the need for, 
     and the the appropriate criteria for, two possible new 
     decorations.
       (2) The first such decoration would, if implemented, be 
     awarded to members of the Armed Forces who, while serving 
     under competent authority in any capacity with the Armed 
     Forces, are killed or injured in the line of duty as a result 
     of noncombat circumstances occurring--
       (A) as a result of an international terrorist attack 
     against the United States or a foreign nation friendly to the 
     United States;
       (B) while engaged in, training for, or traveling to or from 
     a peacetime or contingency operation; or
       (C) while engaged in, training for, or traveling to or from 
     service outside the territory of the United States as part of 
     a peacekeeping force.
       (3) The second such decoration would, if implemented, be 
     awarded to civilian nationals of the United States who, while 
     serving under competent authority in any capacity with the 
     Armed Forces, are killed or injured in the line of duty under 
     circumstances which, if they were members of the Armed 
     Forces, would qualify them for award of the Purple Heart or 
     the medal described in paragraph (2).
       (b) Recommendation to Congress.--Not later than July 31, 
     1999, the Secretary shall submit to Congress a report setting 
     forth the Secretary's recommendation concerning the need for, 
     and propriety of, each of the possible new decorations 
     referred to in subsection (a).
       (c) Coordination.--The Secretary shall carry out this 
     section in coordination with the Secretaries of the military 
     departments and the Secretary of Transportation with regard 
     to the Coast Guard.

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

       (a) Waiver.--Any limitation established by law or policy 
     for the time within which a recommendation for the award of a 
     military decoration or award must be submitted shall not 
     apply to awards of decorations described in this section, the 
     award of each such decoration having been determined by the 
     Secretary of the military department concerned to be 
     warranted in accordance with section 1130 of title 10, United 
     States Code.
       (b) Distinguished-Service Cross.--Subsection (a) applies to 
     the award of the Distinguished-Service Cross of the Army as 
     follows:

[[Page H8126]]

       (1) To Isaac Camacho of El Paso, Texas, for extraordinary 
     heroism in actions at Camp Hiep Hoa in Vietnam on November 
     24, 1963, while serving as a member of the Army.
       (2) To Bruce P. Crandall of Mesa, Arizona, for 
     extraordinary heroism in actions at Landing Zone X-Ray in 
     Vietnam on November 14, 1965, while serving as a member of 
     the Army.
       (3) To Leland B. Fair of Jessieville, Arkansas, for 
     extraordinary heroism in actions in the Philippine Islands on 
     July 4, 1945, while serving as a member of the Army.
       (c) Distinguished-Service Medal.--Subsection (a) applies to 
     the award of the Distinguished-Service Medal of the Army to 
     Richard P. Sakakida of Fremont, California, for exceptionally 
     meritorious service while a prisoner of war in the Philippine 
     Islands from May 7, 1942, to September 14, 1945, while 
     serving as a member of the Army.
       (d) Navy Cross.--Subsection (a) applies to the posthumous 
     award of the Navy Cross to Joseph F. Keenan for extraordinary 
     heroism in actions on March 26-27, 1953, while serving as a 
     member of the Navy.
       (e) Silver Star Medal.--Subsection (a) applies to the award 
     of the Silver Star Medal of the Navy to Andrew A. Bernard of 
     Methuen, Massachusetts, for gallantry in action on November 
     24, 1943, while serving as a member of the Navy.
       (f) Distinguished Flying Cross.--Subsection (a) applies to 
     the award of the Distinguished Flying Cross for service 
     during World War II or Korea (including multiple awards to 
     the same individual) in the case of each individual (not 
     covered by section 573(d) of the National Defense 
     Authorization Act for Fiscal Year 1998 (Public Law 105-85; 
     111 Stat. 1757)) concerning whom the Secretary of the Navy 
     (or an officer of the Navy acting on behalf of the Secretary) 
     submitted to the Committee on National Security of the House 
     of Representatives and the Committee on Armed Services of the 
     Senate, before the date of the enactment of this Act, a 
     notice as provided in section 1130(b) of title 10, United 
     States Code, that the award of the Distinguished Flying Cross 
     to that individual is warranted and that a waiver of time 
     restrictions prescribed by law for recommendation for such 
     award is recommended.

     SEC. 533. COMMENDATION AND COMMEMORATION OF THE NAVY AND 
                   MARINE CORPS PERSONNEL WHO SERVED IN THE UNITED 
                   STATES NAVY ASIATIC FLEET FROM 1910-1942.

       (a) Findings.--Congress makes the following findings:
       (1) The United States established the Asiatic Fleet of the 
     Navy in 1910 to protect United States nationals, policies, 
     and possessions in the Far East.
       (2) The sailors and Marines of the Asiatic Fleet ensured 
     the safety of United States and foreign nationals and 
     provided humanitarian assistance in that region during the 
     Chinese civil war, the Yangtze Flood of 1931, and the 
     outbreak of Sino-Japanese hostilities.
       (3) In 1940, due to deteriorating political relations and 
     increasing tensions between the United States and Japan, a 
     reinforced Asiatic Fleet began concentrating on the defense 
     of the Philippines and engaged in extensive training to 
     ensure maximum operational readiness for any eventuality.
       (4) Following the declaration of war against Japan in 
     December 1941, the warships, submarines, and aircraft of the 
     Asiatic Fleet courageously fought many battles against 
     superior Japanese forces.
       (5) The Asiatic Fleet directly suffered the loss of 22 
     vessels, 1,826 men killed or missing in action, and 518 men 
     captured and imprisoned under the worst of conditions, with 
     many of them dying while held as prisoners of war.
       (b) Congressional Commendation.--Congress--
       (1) commends the Navy and Marine Corps personnel who served 
     in the Asiatic Fleet of the United States Navy during the 
     period from 1910 to 1942; and
       (2) honors those who gave their lives in the line of duty 
     while serving in the Asiatic Fleet.
       (c) Commemoration of United States Navy Asiatic Fleet.--The 
     President is authorized and requested to issue a proclamation 
     designating an appropriate commemoration of the United States 
     Navy Asiatic Fleet and calling upon the people of the United 
     States to observe such commemoration with appropriate 
     programs, ceremonies, and activities.

     SEC. 534. APPRECIATION FOR SERVICE DURING WORLD WAR I AND 
                   WORLD WAR II BY MEMBERS OF THE NAVY ASSIGNED ON 
                   BOARD MERCHANT SHIPS AS THE NAVAL ARMED GUARD 
                   SERVICE.

       (a) Findings.--Congress makes the following findings:
       (1) The Navy established a special force during both World 
     War I and World War II, known as the Naval Armed Guard 
     Service, to protect merchant ships of the United States from 
     enemy attack by stationing members of the Navy and weapons on 
     board those ships.
       (2) Members of the Naval Armed Guard Service served on 
     6,236 merchant ships during World War II, of which 710 were 
     sunk by enemy action.
       (3) Over 144,900 members of the Navy served in the Naval 
     Armed Guard Service during World War II as officers, gun 
     crewmen, signalmen, and radiomen, of whom 1,810 were 
     killed in action.
       (4) The efforts of the members of the Naval Armed Guard 
     Service played a significant role in the safe passage of 
     United States merchant ships to their destinations in the 
     Soviet Union and various locations in western Europe and the 
     Pacific Theater.
       (5) The efforts of the members of the Navy who served in 
     the Naval Armed Guard Service have been largely overlooked 
     due to the rapid disbanding of the service after World War II 
     and lack of adequate records.
       (6) Recognition of the service of the naval personnel who 
     served in the Naval Armed Guard Service is highly warranted 
     and long overdue.
       (b) Sense of the Congress.--Congress expresses its 
     appreciation, and the appreciation of the American people, 
     for the dedicated service performed during World War I and 
     World War II by members of the Navy assigned as gun crews on 
     board merchant ships as part of the Naval Armed Guard 
     Service.

     SEC. 535. SENSE OF CONGRESS REGARDING THE HEROISM, SACRIFICE, 
                   AND SERVICE OF THE MILITARY FORCES OF SOUTH 
                   VIETNAM, OTHER NATIONS, AND INDIGENOUS GROUPS 
                   IN CONNECTION WITH THE UNITED STATES ARMED 
                   FORCES DURING THE VIETNAM CONFLICT.

       (a) Findings.--Congress finds the following:
       (1) South Vietnam, Australia, South Korea, Thailand, New 
     Zealand, and the Philippines contributed military forces, 
     together with the United States, during military operations 
     conducted in Southeast Asia during the Vietnam conflict.
       (2) Indigenous groups, such as the Hmong, Nung, Montagnard, 
     Kahmer, Hoa Hao, and Cao Dai contributed military forces, 
     together with the United States, during military operations 
     conducted in Southeast Asia during the Vietnam conflict.
       (3) The contributions of these combat forces continued 
     through long years of armed conflict.
       (4) As a result, in addition to the United States 
     casualties exceeding 210,000, this willingness to participate 
     in the Vietnam conflict resulted in the death and wounding of 
     more than 1,000,000 military personnel from South Vietnam and 
     16,000 from other allied nations.
       (5) The service of the Vietnamese, indigenous groups, and 
     other allied nations was repeatedly marked by exceptional 
     heroism and sacrifice, with particularly noteworthy 
     contributions being made by the Vietnamese airborne, 
     commando, infantry and ranger units, the Republic of Korea 
     marines, the Capital and White Horse divisions, the Royal 
     Thai Army Black Panther Division, the Royal Australian 
     Regiment, the New Zealand ``V'' force, and the 1st Philippine 
     Civic Action Group.
       (b) Sense of Congress.--Congress recognizes and honors the 
     members and former members of the military forces of South 
     Vietnam, the Republic of Korea, Thailand, Australia, New 
     Zealand, and the Philippines, as well as members of the 
     Hmong, Nung, Montagnard, Kahmer, Hoa Hao, and Cao Dai, for 
     their heroism, sacrifice, and service in connection with 
     United States Armed Forces during the Vietnam conflict.

     SEC. 536. SENSE OF CONGRESS REGARDING THE HEROISM, SACRIFICE, 
                   AND SERVICE OF FORMER SOUTH VIETNAMESE 
                   COMMANDOS IN CONNECTION WITH UNITED STATES 
                   ARMED FORCES DURING THE VIETNAM CONFLICT.

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

     SEC. 537. PROHIBITION ON MEMBERS OF ARMED FORCES ENTERING 
                   CORRECTIONAL FACILITIES TO PRESENT DECORATIONS 
                   TO PERSONS WHO HAVE COMMITTED SERIOUS VIOLENT 
                   FELONIES.

       (a) Prohibition.--Chapter 57 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 1132. Presentation of decorations: prohibition on 
       entering correctional facilities for presentation to 
       prisoners convicted of serious violent felonies

       ``(a) Prohibition.--A member of the armed forces may not 
     enter a Federal, State, local, or foreign correctional 
     facility to present a decoration to a person who is 
     incarcerated due to conviction of a serious violent felony.
       ``(b) Definitions.--In this section:
       ``(1) The term `decoration' means any decoration or award 
     that may be presented or awarded to a member of the armed 
     forces.
       ``(2) The term `serious violent felony' has the meaning 
     given that term in section 3559(c)(2)(F) of title 18.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of that chapter is amended by adding at the end the 
     following new item:
``1132. Presentation of decorations: prohibition on entering 
              correctional facilities for presentation to prisoners 
              convicted of serious violent felonies.''.

   Subtitle E--Administration of Agencies Responsible for Review and 
                     Correction of Military Records

     SEC. 541. PERSONNEL FREEZE.

       (a) Limitation.--During fiscal years 1999, 2000, and 2001, 
     the Secretary of a military department may not carry out any 
     reduction in the number of military and civilian personnel 
     assigned to duty with the service review agency for that 
     military department below the baseline number for that agency 
     until--

[[Page H8127]]

       (1) the Secretary submits to Congress a report that 
     describes the reduction proposed to be made, provides the 
     Secretary's rationale for that reduction, and specifies the 
     number of such personnel that would be assigned to duty with 
     that agency after the reduction; and
       (2) a period of 90 days has elapsed after the date on which 
     such report is submitted.
       (b) Baseline Number.--The baseline number for a service 
     review agency under this section is--
       (1) for purposes of the first report with respect to a 
     service review agency under this section, the number of 
     military and civilian personnel assigned to duty with that 
     agency as of October 1, 1997; and
       (2) for purposes of any subsequent report with respect to a 
     service review agency under this section, the number of such 
     personnel specified in the most recent report with respect to 
     that agency under this section.
       (c) Service Review Agency Defined.--In this section, the 
     term ``service review agency'' means--
       (1) with respect to the Department of the Army, the Army 
     Review Boards Agency;
       (2) with respect to the Department of the Navy, the Board 
     for Correction of Naval Records; and
       (3) with respect to the Department of the Air Force, the 
     Air Force Review Boards Agency.

     SEC. 542. PROFESSIONAL STAFF.

       (a) In General.--(1) Chapter 79 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 1555. Professional staff

       ``(a) The Secretary of each military department shall 
     assign to the staff of the service review agency of that 
     military department at least one attorney and at least one 
     physician. Such assignments shall be made on a permanent, 
     full-time basis and may be made from members of the armed 
     forces or civilian employees.
       ``(b) Personnel assigned pursuant to subsection (a)--
       ``(1) shall work under the supervision of the director or 
     executive director (as the case may be) of the service review 
     agency; and
       ``(2) shall be assigned duties as advisers to the director 
     or executive director or other staff members on legal and 
     medical matters, respectively, that are being considered by 
     the agency.
       ``(c) In this section, the term `service review agency' 
     means--
       ``(1) with respect to the Department of the Army, the Army 
     Review Boards Agency;
       ``(2) with respect to the Department of the Navy, the Board 
     for Correction of Naval Records; and
       ``(3) with respect to the Department of the Air Force, the 
     Air Force Review Boards Agency.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``1555. Professional staff.''.

       (b) Effective Date.--Section 1555 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. 543. EX PARTE COMMUNICATIONS.

       (a) In General.--(1) Chapter 79 of title 10, United States 
     Code, is amended by adding after section 1555, as added by 
     section 542(a)(1), the following new section:

     ``Sec. 1556. Ex parte communications prohibited

       ``(a) In General.--The Secretary of each military 
     department shall ensure that an applicant seeking corrective 
     action by the Army Review Boards Agency, the Air Force Review 
     Boards Agency, or the Board for Correction of Naval Records, 
     as the case may be, is provided a copy of all correspondence 
     and communications (including summaries of verbal 
     communications) to or from the agency or board, or a member 
     of the staff of the agency or board, with an entity or person 
     outside the agency or board that pertain directly to the 
     applicant's case or have a material effect on the applicant's 
     case.
       ``(b) Exceptions.--Subsection (a) does not apply to the 
     following:
       ``(1) Classified information.
       ``(2) Information the release of which is otherwise 
     prohibited by law or regulation.
       ``(3) Any record previously provided to the applicant or 
     known to be possessed by the applicant.
       ``(4) Any correspondence that is purely administrative in 
     nature.
       ``(5) Any military record that is (or may be) provided to 
     the applicant by the Secretary of the military department or 
     other source.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding after the item relating to 1555, as 
     added by section 542(a)(2), the following new item:

``1556. Ex parte communications prohibited.''.

       (b) Effective Date.--Section 1556 of title 10, United 
     States Code, as added by subsection (a), shall apply with 
     respect to correspondence and communications made 60 days or 
     more after the date of the enactment of this Act.

     SEC. 544. TIMELINESS STANDARDS.

       (a) In General.--Chapter 79 of title 10, United States 
     Code, is amended by adding after section 1556, as added by 
     section 543(a)(1), the following new section:

     ``Sec. 1557. Timeliness standards for disposition of 
       applications before Corrections Boards

       ``(a) Ten-Month Clearance Percentage.--Of the applications 
     received by a Corrections Board during a period specified in 
     the following table, the percentage on which final action by 
     the Corrections Board must be completed within 10 months of 
     receipt (other than for those applications considered 
     suitable for administrative correction) is as follows:
The percentage on which final Correction Board action must be completed 
    within 10 months of receipt is--
  the period of fiscal years 2001 and 2002.....................50  ....

  the period of fiscal years 2003 and 2004.....................60  ....

  the period of fiscal years 2005, 2006, and 2007..............70  ....

  the period of fiscal years 2008, 2009, and 2010..............80  ....

  the period of any fiscal year after fiscal year 2010........90.  ....

       ``(b) Clearance Deadline for All Applications.--Effective 
     October 1, 2002, final action by a Corrections Board on all 
     applications received by the Corrections Board (other than 
     those applications considered suitable for administrative 
     correction) shall be completed within 18 months of receipt.
       ``(c) Waiver Authority.--The Secretary of the military 
     department concerned may exclude an individual application 
     from the timeliness standards prescribed in subsections (a) 
     and (b) if the Secretary determines that the application 
     warrants a longer period of consideration. The authority of 
     the Secretary of a military department under this subsection 
     may not be delegated.
       ``(d) Failure To Meet Timeliness Standards Not To Affect 
     Any Individual Application.--Failure of a Corrections Board 
     to meet the applicable timeliness standard for any period of 
     time under subsection (a) or (b) does not confer any 
     presumption or advantage with respect to consideration by the 
     board of any application.
       ``(e) Reports on Failure To Meet Timeliness Standards.--The 
     Secretary of the military department concerned shall submit 
     to the Committee on Armed Services of the Senate and the 
     Committee on National Security of the House of 
     Representatives a report not later than June 1 following any 
     fiscal year during which the Corrections Board of that 
     Secretary's military department was unable to meet the 
     applicable timeliness standard for that fiscal year under 
     subsections (a) and (b). The report shall specify the reasons 
     why the standard could not be met and the corrective actions 
     initiated to ensure compliance in the future. The report 
     shall also specify the number of waivers granted under 
     subsection (c) during that fiscal year.
       ``(f) Corrections Board Defined.--In this section, the term 
     `Corrections Board' means--
       ``(1) with respect to the Department of the Army, the Army 
     Board for Correction of Military Records;
       ``(2) with respect to the Department of the Navy, the Board 
     for Correction of Naval Records; and
       ``(3) with respect to the Department of the Air Force, the 
     Air Force Board for Correction of Military Records.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding after the item 
     relating to section 1556, as added by section 543(a)(2), the 
     following new item:

``1557. Timeliness standards for disposition of applications before 
              Corrections Boards.''.

     SEC. 545. SCOPE OF CORRECTION OF MILITARY RECORDS.

       (a) Payment of Claims Arising From Correction.--Subsection 
     (c) of section 1552 of title 10, United States Code, is 
     amended in the first sentence by inserting before the period 
     the following: ``, or on account of his or another's service 
     as a civilian employee''.
       (b) Definition of Military Record.--Such section is further 
     amended by adding at the end the following new subsection:
       ``(g) In this section, the term `military record' means a 
     document or other record that pertains to (1) an individual 
     member or former member of the armed forces, or (2) at the 
     discretion of the Secretary of the military department 
     concerned, any other military matter affecting a member or 
     former member of the armed forces, an employee or former 
     employee of that military department, or a dependent or 
     current or former spouse of any such person. Such term does 
     not include records pertaining to civilian employment matters 
     (such as matters covered by title 5 and chapters 81, 83, 87, 
     108, 373, 605, 607, 643, and 873 of this title).''.
       (c) Report.--The Secretary of Defense shall submit to 
     Congress, not later than March 31, 1999, a report on the 
     effect of the six-year bar to retroactive benefits contained 
     in section 3702 of title 31, United States Code, and the 
     Secretary's recommendation as to whether it is appropriate 
     for the Secretaries of the military departments to have 
     authority to waive that limitation in selected cases 
     involving implementation of decisions of the Secretary of a 
     military department under chapter 79 of title 10, United 
     States Code. The report shall be prepared in consultation 
     with the Secretaries of the military departments.

                          Subtitle F--Reports

     SEC. 551. REPORT ON PERSONNEL RETENTION.

       (a) Report Required.--Not later than 90 days after the date 
     of the enactment of this Act, the Secretary of Defense shall 
     submit to Congress a report containing information on the 
     retention of members of the Armed Forces on active duty in 
     the combat, combat support, and combat service support forces 
     of the Army, Navy, Air Force, and Marine Corps.
       (b) Required Information.--The Secretary shall include in 
     the report information on retention of members with military 
     occupational specialties (or the equivalent) in combat, 
     combat support, or combat service support positions in each 
     of the Army, Navy, Air Force, and Marine Corps. Such 
     information shall be shown by pay grade and shall be 
     aggregated by enlisted grades and officers grades and shall 
     be shown by military occupational specialty (or the 
     equivalent). The report shall set forth separately (in 
     numbers

[[Page H8128]]

     and as a percentage) the number of members separated during 
     each such fiscal year who terminate service in the Armed 
     Forces completely and the number who separate from active 
     duty by transferring into a reserve component.
       (c) Years Covered by Report.--The report shall provide the 
     information required in the report, shown on a fiscal year 
     basis, for each of fiscal years 1989 through 1998.

     SEC. 552. REPORT ON PROCESS FOR SELECTION OF MEMBERS FOR 
                   SERVICE ON COURTS-MARTIAL.

       (a) Report Required.--Not later than April 15, 1999, the 
     Secretary of Defense shall submit to Congress a report on the 
     method of selection of members of the Armed Forces to serve 
     on courts-martial.
       (b) Consideration of Alternatives.--In preparing the 
     report, the Secretary shall examine alternatives, including 
     random selection, to the current system of selection of 
     members of courts-martial by the convening authority. Any 
     alternative examined by the Secretary shall be consistent 
     with the provisions relating to service on courts-martial 
     specified in section 825(d) of title 10, United States Code 
     (article 25(d) of the Uniform Code of Military Justice). The 
     Secretary shall include in the report the Secretary's 
     evaluation of each alternative examined.
       (c) Views of Code Committee.--In preparing the report under 
     subsection (a), the Secretary shall obtain the views of the 
     members of the committee referred to in section 946 of such 
     title (known as the ``Code Committee'').

     SEC. 553. REPORT ON PRISONERS TRANSFERRED FROM UNITED STATES 
                   DISCIPLINARY BARRACKS, FORT LEAVENWORTH, 
                   KANSAS, TO FEDERAL BUREAU OF PRISONS.

       (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, to be prepared by the General Counsel 
     of the Department of Defense, concerning the decision of 
     the Secretary of the Army in 1994 to transfer 
     approximately 500 prisoners from the United States 
     Disciplinary Barracks, Fort Leavenworth, Kansas, to the 
     Federal Bureau of Prisons.
       (b) Matters To Be Included.--The Secretary shall include in 
     the report the following:
       (1) A description of the basis for the selection of 
     prisoners to be transferred, particularly in light of the 
     fact that many of the prisoners transferred are minimum or 
     medium security prisoners, who are considered to have the 
     best chance for rehabilitation, and whether the transfer of 
     those prisoners indicates a change in Department of Defense 
     policy regarding the rehabilitation of military prisoners.
       (2) A comparison of the historical recidivism rates of 
     prisoners released from the United States Disciplinary 
     Barracks and the Federal Bureau of Prisons, together with a 
     description of any plans of the Army to track the parole and 
     recidivism rates of prisoners transferred to the Federal 
     Bureau of Prisons and whether it has tracked those factors 
     for previous transferees.
       (3) A description of the projected future flow of prisoners 
     into the new United States Disciplinary Barracks being 
     constructed at Fort Leavenworth, Kansas, and whether the 
     Secretary of the Army plans to automatically send new 
     prisoners to the Federal Bureau of Prisons without serving at 
     the United States Disciplinary Barracks if that Barracks is 
     at capacity and whether the Memorandum of Understanding 
     between the Federal Bureau of Prisons and the Army covers 
     that possibility.
       (4) A description of the cost of incarcerating a prisoner 
     in the Federal Bureau of Prisons compared to the United 
     States Disciplinary Barracks and the assessment of the 
     Secretary as to the extent to which the transfer of prisoners 
     to the Federal Bureau of Prisons by the Secretary of the Army 
     is made in order to shift a budgetary burden.
       (c) Monitoring.--During fiscal years 1999 through 2003, the 
     Secretary of the Army shall track the parole and recidivism 
     rates of prisoners transferred from the United States 
     Disciplinary Barracks, Fort Leavenworth, Kansas, to the 
     Federal Bureau of Prisons.

     SEC. 554. REVIEW AND REPORT REGARDING THE DISTRIBUTION OF 
                   NATIONAL GUARD FULL-TIME SUPPORT AMONG THE 
                   STATES.

       (a) Requirement for Review.--The Chief of the National 
     Guard Bureau shall review the process used for allocating and 
     distributing all categories of full-time support personnel 
     among the States for the National Guard of the States.
       (b) Purpose of Review.--The purpose of the review is to 
     determine whether that allocation and distribution process 
     provides for adequately meeting the full-time support 
     personnel requirements of the National Guard in the case of 
     those States that have fewer than 16 National Guard units 
     categorized in readiness tiers I, II, and III.
       (c) Matters To Be Reviewed.--The matters reviewed shall 
     include the following:
       (1) The factors considered for the process of determining 
     the distribution among the States of full-time support 
     personnel, including the weights assigned to those factors.
       (2) The extent to which that process results in full-time 
     support personnel levels for the units of the States 
     described in subsection (b) that are at the levels necessary 
     to optimize the preparedness of those units to meet the 
     mission requirements applicable to those units.
       (3) The effects that full-time support personnel at levels 
     determined under that process will have on the National Guard 
     of those States in the future, including the effects on all 
     categories of full-time support personnel, and unit 
     readiness, recruitment, and continued use of existing 
     National Guard armories and other facilities.
       (d) Report.--Not later than March 15, 1999, the Chief of 
     the National Guard Bureau shall submit to the Secretary of 
     Defense a report on the results of the review. Not later than 
     April 30, 1999, the Secretary shall transmit the report, and 
     the Secretary's evaluation of and comments on the report, to 
     the Committee on Armed Services of the Senate and the 
     Committee on National Security of the House of 
     Representatives.

                       Subtitle G--Other Matters

     SEC. 561. TWO-YEAR EXTENSION OF CERTAIN FORCE DRAWDOWN 
                   TRANSITION AUTHORITIES RELATING TO PERSONNEL 
                   MANAGEMENT AND BENEFITS.

       (a) Early Retirement Authority for Active Force Members.--
     Section 4403(i) of the National Defense Authorization Act for 
     Fiscal Year 1993 (10 U.S.C. 1293 note) is amended by striking 
     out ``October 1, 1999'' and inserting in lieu thereof 
     ``October 1, 2001''.
       (b) SSB and VSI.--Sections 1174a(h) and 1175(d)(3) of title 
     10, United States Code, are amended by striking out 
     ``September 30, 1999'' and inserting in lieu thereof 
     ``September 30, 2001''.
       (c) Selective Early Retirement Boards.--Section 638a(a) of 
     such title is amended by striking out ``during the nine-year 
     period beginning on October 1, 1990'' and inserting in lieu 
     thereof ``during the period beginning on October 1, 1990, and 
     ending on September 30, 2001''.
       (d) Time-in-Grade Requirement for Retention of Grade Upon 
     Voluntary Retirement.--Section 1370(a)(2)(A) of such title is 
     amended by striking out ``during the nine-year period 
     beginning on October 1, 1990'' and inserting in lieu thereof 
     ``during the period beginning on October 1, 1990, and ending 
     on September 30, 2001''.
       (e) Minimum Commissioned Service for Voluntary Retirement 
     as an Officer.--Sections 3911(b), 6323(a)(2), and 8911(b) of 
     such title are amended by striking out ``during the nine-year 
     period beginning on October 1, 1990'' and inserting in lieu 
     thereof ``during the period beginning on October 1, 1990, and 
     ending on September 30, 2001''.
       (f) Travel, Transportation, and Storage Benefits.--Sections 
     404(c)(1)(C), 404(f)(2)(B)(v), 406(a)(2)(B)(v), and 
     406(g)(1)(C) of title 37, United States Code, and section 
     503(c) of the National Defense Authorization Act for Fiscal 
     Year 1991 (37 U.S.C. 406 note) are amended by striking out 
     ``during the nine-year period beginning on October 1, 1990'' 
     and inserting in lieu thereof ``during the period beginning 
     on October 1, 1990, and ending on September 30, 2001''.
       (g) Educational Leave for Public and Community Service.--
     Section 4463(f) of the National Defense Authorization Act for 
     Fiscal Year 1993 (10 U.S.C. 1143a note) is amended by 
     striking out ``September 30, 1999'' and inserting in lieu 
     thereof ``September 30, 2001''.
       (h) Transitional Health Benefits.--Section 1145 of title 
     10, United States Code, is amended--
       (1) in subsections (a)(1) and (c)(1), by striking out 
     ``during the nine-year period beginning on October 1, 1990'' 
     and inserting in lieu thereof ``during the period beginning 
     on October 1, 1990, and ending on September 30, 2001''; and
       (2) in subsection (e), by striking out ``during the five-
     year period beginning on October 1, 1994'' and inserting in 
     lieu thereof ``during the period beginning on October 1, 
     1994, and ending on September 30, 2001''.
       (i) Transitional Commissary and Exchange Benefits.--Section 
     1146 of such title is amended--
       (1) by striking out ``during the nine-year period beginning 
     on October 1, 1990'' and inserting in lieu thereof ``during 
     the period beginning on October 1, 1990, and ending on 
     September 30, 2001''; and
       (2) by striking out ``during the five-year period beginning 
     on October 1, 1994'' and inserting in lieu thereof ``during 
     the period beginning on October 1, 1994, and ending on 
     September 30, 2001''.
       (j) Transitional Use of Military Housing.--Section 1147(a) 
     of such title is amended--
       (1) in paragraph (1), by striking out ``during the nine-
     year period beginning on October 1, 1990'' and inserting in 
     lieu thereof ``during the period beginning on October 1, 
     1990, and ending on September 30, 2001''; and
       (2) in paragraph (2), by striking out ``during the five-
     year period beginning on October 1, 1994'' and inserting in 
     lieu thereof ``during the period beginning on October 1, 
     1994, and ending on September 30, 2001''.
       (k) Continued Enrollment of Dependents in Defense 
     Dependents' Education System.--Section 1407(c)(1) of the 
     Defense Dependents' Education Act of 1978 (20 U.S.C. 
     926(c)(1)) is amended by striking out ``during the nine-year 
     period beginning on October 1, 1990'' and inserting in lieu 
     thereof ``during the period beginning on October 1, 1990, and 
     ending on September 30, 2001''.
       (l) Force Reduction Transition Period Definition.--Section 
     4411 of the National Defense Authorization Act for Fiscal 
     Year 1993 (10 U.S.C. 12681 note) is amended by striking out 
     ``September 30, 1999'' and inserting in lieu thereof 
     ``September 30, 2001''.
       (m) Temporary Special Authority for Force Reduction Period 
     Retirements.--Section 4416(b)(1) of the National Defense 
     Authorization Act for Fiscal Year 1993 (10 U.S.C. 12681 note) 
     is amended by striking out ``October 1, 1999'' and inserting 
     in lieu thereof ``October 1, 2001''.
       (n) Retired Pay for Non-Regular Service.--(1) Section 
     12731(f) of title 10, United States Code, is amended by 
     striking out ``September 30, 1999'' and inserting in lieu 
     thereof ``September 30, 2001''.
       (2) Section 12731a of such title is amended in subsections 
     (a)(1)(B) and (b) by striking out ``October 1, 1999'' and 
     inserting in lieu thereof ``October 1, 2001''.
       (o) Reduction of Time-in-Grade Requirement for Retention of 
     Grade Upon Voluntary Retirement.--Section 1370(d) of such 
     title is amended by adding at the end the following new 
     paragraph:

[[Page H8129]]

       ``(5) The Secretary of Defense may authorize the Secretary 
     of a military department to reduce the three-year period 
     required by paragraph (3)(A) to a period not less than two 
     years in the case of retirements effective during the period 
     beginning on the date of the enactment of this paragraph and 
     ending on September 30, 2001. The number of reserve 
     commissioned officers of an armed force in the same grade for 
     whom a reduction is made during any fiscal year in the period 
     of service-in-grade otherwise required under this paragraph 
     may not exceed the number equal to two percent of the 
     strength authorized for that fiscal year for reserve 
     commissioned officers of that armed force in an active status 
     in that grade.''.
       (p) Affiliation With Guard and Reserve Units; Waiver of 
     Certain Limitations.--Section 1150(a) of such title is 
     amended by striking out ``during the nine-year period 
     beginning on October 1, 1990'' and inserting in lieu thereof 
     ``during the period beginning on October 1, 1990, and ending 
     on September 30, 2001''.
       (q) Reserve Montgomery GI Bill.--Section 16133(b)(1)(B) of 
     such title is amended by striking out ``September 30, 1999'' 
     and inserting in lieu thereof ``September 30, 2001''.

     SEC. 562. LEAVE WITHOUT PAY FOR SUSPENDED ACADEMY CADETS AND 
                   MIDSHIPMEN.

       (a) Authority.--Section 702 of title 10, United States 
     Code, is amended--
       (1) by designating the second sentence of subsection (b) as 
     subsection (d);
       (2) by redesignating subsection (b) as subsection (c); and
       (3) by inserting after subsection (a) the following new 
     subsection (b):
       ``(b) Involuntary Leave Without Pay for Suspended Academy 
     Cadets and Midshipmen.--(1) Under regulations prescribed 
     under subsection (d), the Secretary concerned may place an 
     academy cadet or midshipman on involuntary leave for any 
     period during which the Superintendent of the Academy at 
     which the cadet or midshipman is admitted has suspended the 
     cadet or midshipman from duty at the Academy--
       ``(A) pending separation from the Academy;
       ``(B) pending return to the Academy to repeat an academic 
     semester or year; or
       ``(C) for other good cause.
       ``(2) A cadet or midshipman placed on involuntary leave 
     under paragraph (1) is not entitled to any pay under section 
     230(c) of title 37 for the period of the leave.
       ``(3) Return of an academy cadet or midshipman to a pay 
     status at the Academy concerned from involuntary leave status 
     under paragraph (1) does not restore any entitlement of the 
     cadet or midshipman to pay for the period of the involuntary 
     leave.''.
       (b) Definition.--Such section is further amended--
       (1) in subsection (c) (as redesignated by subsection 
     (a)(2)), by striking out ``cadets at'' and all that follows 
     through ``Naval Academy,'' and inserting in lieu thereof 
     ``academy cadets or midshipmen''; and
       (2) by adding at the end the following new subsection:
       ``(e) Definition.--In this section, the term `academy cadet 
     or midshipman' means--
       ``(1) a cadet of the United States Military Academy;
       ``(2) a midshipman of the United States Naval Academy;
       ``(3) a cadet of the United States Air Force Academy; or
       ``(4) a cadet of the United States Coast Guard Academy.''.
       (c) Subsection Headings.--Such section is further amended--
       (1) in subsection (a), by inserting ``Graduation Leave.--'' 
     after ``(a)'';
       (2) in subsection (c) (as redesignated by subsection 
     (a)(2)), by inserting ``Inapplicable Leave Provisions.--'' 
     after ``(c)''; and
       (3) in subsection (d) (as designated by subsection (a)(1)), 
     by inserting ``Regulations.--'' after ``(d)''.

     SEC. 563. CONTINUED ELIGIBILITY UNDER VOLUNTARY SEPARATION 
                   INCENTIVE PROGRAM FOR MEMBERS WHO INVOLUNTARILY 
                   LOSE MEMBERSHIP IN A RESERVE COMPONENT.

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

     SEC. 564. REINSTATEMENT OF DEFINITION OF FINANCIAL 
                   INSTITUTION IN AUTHORITIES FOR REIMBURSEMENT OF 
                   DEFENSE PERSONNEL FOR GOVERNMENT ERRORS IN 
                   DIRECT DEPOSIT OF PAY.

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

     SEC. 565. INCREASE IN MAXIMUM AMOUNT FOR COLLEGE FUND 
                   PROGRAM.

       (a) Increase in Maximum Rate for Active Component 
     Montgomery GI Bill Supplement.--Section 3015(d) of title 38, 
     United States Code, is amended--
       (1) by inserting ``, at the time the individual first 
     becomes a member of the Armed Forces,'' after ``Secretary of 
     Defense, may''; and
       (2) by striking out ``$400'' and all that follows through 
     ``that date'' and inserting in lieu thereof ``$950 per 
     month''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect on October 1, 1998, and shall apply with 
     respect to individuals who first become members of the Armed 
     Forces on or after that date.

     SEC. 566. CENTRAL IDENTIFICATION LABORATORY, HAWAII.

       (a) Sense of Congress.--It is the sense of Congress that 
     the Central Identification Laboratory, Hawaii, of the 
     Department of the Army is an important element of the 
     Department of Defense and is critical to the full accounting 
     of members of the Armed Forces who have been classified as 
     POW/MIAs or are otherwise unaccounted for.
       (b) Required Staffing Level.--The Secretary of Defense 
     shall provide sufficient personnel to fill all authorized 
     personnel positions of the Central Identification Laboratory, 
     Hawaii, Department of the Army. Those personnel shall be 
     drawn from members of the Army, Navy, Air Force, and Marine 
     Corps and from civilian personnel, as appropriate, 
     considering the proportion of POW/MIAs from each service.
       (c) Joint Manning Plan.--The Secretary of Defense shall 
     develop and implement, not later than March 31, 2000, a joint 
     manning plan to ensure the appropriate participation of the 
     four services in the staffing of the Central Identification 
     Laboratory, Hawaii, as required by subsection (b).
       (d) Limitation on Reductions.--The Secretary of the Army 
     may not carry out any personnel reductions (in authorized or 
     assigned personnel) at the Central Identification Laboratory, 
     Hawaii, until the joint manning plan required by subsection 
     (c) is implemented.

     SEC. 567. MILITARY FUNERAL HONORS FOR VETERANS.

       (a) Conference on Practices Concerning Military Honors at 
     Funerals for Veterans.--(1) The Secretary of Defense, in 
     consultation with the Secretary of Veterans Affairs, shall 
     convene and preside over a conference, to be completed not 
     later than December 31, 1998, for the purpose of determining 
     means of improving and increasing the availability of 
     military funeral honors for veterans. The Secretary of 
     Veterans Affairs shall also participate in the conference.
       (2) The Secretaries shall invite and encourage the 
     participation at the conference of appropriate 
     representatives of veterans service organizations.
       (3) The conference shall perform the following:
       (A) Review current policies and practices of the military 
     departments and the Department of Veterans Affairs relating 
     to the provision of military funeral honors for veterans.
       (B) Consider alternative methods for providing military 
     funeral honors for veterans and develop new strategies for 
     providing those honors.
       (C) Determine what resources may be available outside the 
     Department of Defense that could be used to provide military 
     funeral honors for veterans.
       (D) Analyze the costs associated with providing military 
     funeral honors for veterans, including the costs associated 
     with using personnel and other resources for that purpose.
       (E) Assess trends in the rate of death of veterans.
       (F) Propose, consider, and determine means of improving and 
     increasing the availability of military funeral honors for 
     veterans.
       (4) Not later than March 31, 1999, the Secretary of Defense 
     shall submit to Congress a report on the conference. The 
     report shall set forth any modifications to Department of 
     Defense directives on military funeral honors adopted as a 
     result of the conference and include any recommendations for 
     legislation that the Secretary considers appropriate as a 
     result of the conference.
       (b) Honor Guard Details at Funerals of Veterans.--(1) 
     Chapter 75 of title 10, United

[[Page H8130]]

     States Code, is amended by adding at the end the following 
     new section:

     ``Sec. 1491. Honor guard details at funerals of veterans

       ``(a) Availability.--The Secretary of a military department 
     shall, upon request, provide an honor guard detail (or ensure 
     that an honor guard detail is provided) for the funeral of 
     any veteran that occurs after December 31, 1999.
       ``(b) Composition of Honor Guard Details.--The Secretary of 
     each military department shall ensure that an honor guard 
     detail for the funeral of a veteran consists of not less than 
     three persons and (unless a bugler is part of the detail) has 
     the capability to play a recorded version of Taps.
       ``(c) Persons Forming Honor Guards.--An honor guard detail 
     may consist of members of the armed forces or members of 
     veterans organizations or other organizations approved for 
     purposes of this section under regulations prescribed by the 
     Secretary of Defense. The Secretary of a military department 
     may provide transportation, or reimbursement for 
     transportation, and expenses for a person who participates in 
     an honor guard detail under this section and is not a member 
     of the armed forces or an employee of the United States.
       ``(d) Regulations.--The Secretary of Defense shall by 
     regulation establish a system for selection of units of the 
     armed forces and other organizations to provide honor guard 
     details. The system shall place an emphasis on balancing the 
     funeral detail workload among the units and organizations 
     providing honor guard details in an equitable manner as they 
     are able to respond to requests for such details in terms of 
     geographic proximity and available resources. The Secretary 
     shall provide in such regulations that the armed force in 
     which a veteran served shall not be considered to be a factor 
     when selecting the military unit or other organization to 
     provide an honor guard detail for the funeral of the veteran.
       ``(e) Annual Report.--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 not later than January 31 of each 
     year beginning with 2001 and ending with 2005 on the 
     experience of the Department of Defense under this section. 
     Each such report shall provide data on the number of funerals 
     supported under this section, the cost for that support, 
     shown by manpower and other cost factors, and the number and 
     costs of funerals supported by each participating 
     organization. The data in the report shall be presented in 
     a standard format, regardless of military department or 
     other organization.
       ``(f) Veteran Defined.--In this section, the term `veteran' 
     has the meaning given that term in section 101(2) of title 
     38.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:
``1491. Honor guard details at funerals of veterans.''.
       (c) Treatment of Performance of Honor Guard Functions by 
     Reserves.--(1) Chapter 1215 of title 10, United States Code, 
     is amended by adding at the end the following new section:

     ``Sec. 12552. Funeral honor guard functions: prohibition of 
       treatment as drill or training

       ``Performance by a Reserve of honor guard functions at the 
     funeral of a veteran 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 
     is amended by adding at the end the following new item:
``12552. Funeral honor guard functions: prohibition of treatment as 
              drill or training.''.
       (d) Repeal of Limitation on Availability of Funds for Honor 
     Guard Functions by National Guard.--Section 114 of title 32, 
     United States Code, is amended--
       (1) by striking out ``(a)''; and
       (2) by striking out subsection (b).
       (e) Veterans Service Organization Defined.--In this 
     section, the term ``veterans service organization'' means any 
     organization recognized by the Secretary of Veterans Affairs 
     under section 5902 of title 38, United States Code.

     SEC. 568. STATUS IN THE NAVAL RESERVE OF CADETS AT THE 
                   MERCHANT MARINE ACADEMY.

       Section 1303(c) of the Merchant Marine Act, 1936 (46 U.S.C. 
     App. 1295(c)), is amended--
       (1) by inserting ``(1)'' after ``(c)'';
       (2) by striking out ``may'' and inserting in lieu thereof 
     ``shall''; and
       (3) by adding at the end the following:
       ``(2) The Secretary of the Navy shall provide for cadets of 
     the Academy who are midshipmen in the United States Naval 
     Reserve to be issued an identification card (referred to as a 
     ``military ID card'') and to be entitled to all rights and 
     privileges in accordance with the same eligibility criteria 
     as apply to other members of the Ready Reserve of the reserve 
     components of the Armed Forces.
       ``(3) The Secretary of the Navy shall carry out paragraphs 
     (1) and (2) in coordination with the Secretary.''.

     SEC. 569. REPEAL OF RESTRICTION ON CIVILIAN EMPLOYMENT OF 
                   ENLISTED MEMBERS.

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

     SEC. 570. TRANSITIONAL COMPENSATION FOR ABUSED DEPENDENT 
                   CHILDREN NOT RESIDING WITH THE SPOUSE OR FORMER 
                   SPOUSE OF A MEMBER CONVICTED OF DEPENDENT 
                   ABUSE.

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

     SEC. 571. PILOT PROGRAM FOR TREATING GED AND HOME SCHOOL 
                   DIPLOMA RECIPIENTS AS HIGH SCHOOL GRADUATES FOR 
                   DETERMINATIONS OF ELIGIBILITY FOR ENLISTMENT IN 
                   THE ARMED FORCES.

       (a) Program Required.--The Secretary of Defense shall 
     establish a pilot program to assess whether the Armed Forces 
     could better meet recruiting requirements by treating GED 
     recipients and home school diploma recipients as having 
     graduated from high school with a high school diploma for the 
     purpose of determining the eligibility of those persons to 
     enlist in the Armed Forces. The Secretary of each military 
     department shall administer the pilot program for the armed 
     force or armed forces under the jurisdiction of that 
     Secretary.
       (b) Persons Eligible Under the Pilot Program as High School 
     Graduates.--Under the pilot program, a person shall be 
     treated as having graduated from high school with a high 
     school diploma for the purpose described in subsection (a) 
     if--
       (1) the person has completed a general education 
     development program while participating in the National Guard 
     Challenge Program under section 509 of title 32, United 
     States Code, and is a GED recipient; or
       (2) the person is a home school diploma recipient and 
     provides a transcript demonstrating completion of high school 
     to the military department involved under the pilot program.
       (c) GED and Home School Diploma Recipients.--For the 
     purposes of this section--
       (1) a person is a GED recipient if the person, after 
     completing a general education development program, has 
     obtained certification of high school equivalency by meeting 
     State requirements and passing a State approved exam that is 
     administered for the purpose of providing an appraisal of the 
     person's achievement or performance in the broad subject 
     matter areas usually required for high school graduates; and
       (2) a person is a home school diploma recipient if the 
     person has received a diploma for completing a program of 
     education through the high school level at a home school, 
     without regard to whether the home school is treated as a 
     private school under the law of the State in which located.
       (d) Annual Limit on Number.--Not more than 1,250 GED 
     recipients and home school diploma recipients enlisted by an 
     armed force during a fiscal year may be treated under the 
     pilot program as having graduated from high school with a 
     high school diploma.
       (e) Duration of Pilot Program.--The pilot program shall be 
     in effect during the period beginning on October 1, 1998, and 
     ending on September 30, 2003.
       (f) Report.--Not later than February 1, 2004, 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 pilot program. The 
     report shall include the following, set forth separately for 
     GED recipients and home school diploma recipients:
       (1) The assessment of the Secretary of Defense, and any 
     assessment of any of the Secretaries of the military 
     departments, regarding the value of, and any necessity for, 
     authority to treat GED recipients and home school diploma 
     recipients as having graduated from high school with a 
     high school diploma for the purpose of determining the 
     eligibility of those persons to enlist in the Armed 
     Forces.
       (2) A comparison (shown by armed force and by each fiscal 
     year of the pilot program) of the performance of the persons 
     who enlisted during the fiscal year as GED or home school 
     diploma recipients treated under the pilot program as having 
     graduated from high school with a high school diploma with 
     the performance of the persons who enlisted in that armed 
     force during the same fiscal year after having graduated from 
     high school with a high school diploma, with respect to the 
     following:
       (A) Attrition.
       (B) Discipline.
       (C) Adaptability to military life.
       (D) Aptitude for mastering the skills necessary for 
     technical specialties.
       (E) Reenlistment rates.
       (g) State Defined.--For purposes of this section, the term 
     ``State'' includes the District of

[[Page H8131]]

     Columbia, the Commonwealth of Puerto Rico, and the 
     territories of the United States.

     SEC. 572. SENSE OF CONGRESS CONCERNING NEW PARENT SUPPORT 
                   PROGRAM AND MILITARY FAMILIES.

       (a) Sense of Congress.--It is the sense of Congress that--
       (1) the New Parent Support Program that was begun as a 
     pilot program of the Marine Corps at Camp Pendleton, 
     California, has been an effective tool in curbing family 
     violence within the military community;
       (2) such program is a model for future New Parent Support 
     Programs throughout the Marine Corps, Navy, Army, and Air 
     Force; and
       (3) in light of the pressures and strains placed upon 
     military families and the benefits of the New Parent Support 
     Program in helping ``at-risk'' families, the Department of 
     Defense should seek ways to ensure that in future fiscal 
     years funds are made available for New Parent Support 
     Programs for the Army, Navy, Air Force, and Marine Corps in 
     amounts sufficient to meet requirements for those programs.
       (b) Report.--Not later than 120 days after the date of the 
     enactment of this Act, the Secretary of Defense shall submit 
     to Congress a report on the New Parent Support Program of the 
     Department of Defense. The Secretary shall include in the 
     report the following:
       (1) A description of how the Army, Navy, Air Force, and 
     Marine Corps are each implementing a New Parent Support 
     Program and how each such program is organized.
       (2) A description of how the implementation of programs for 
     the Army, Navy, and Air Force compare to the fully 
     implemented Marine Corps program.
       (3) The number of installations that the four Armed Forces 
     have each scheduled to receive support for the New Parent 
     Support Program.
       (4) The number of installations delayed in providing the 
     program.
       (5) The number of programs terminated.
       (6) The number of programs with reduced support.
       (7) The funding provided for those programs for each of the 
     four Armed Forces for each of fiscal years 1994 through 1999 
     and the amount projected to be provided for those programs 
     for fiscal year 2000 and, if the amount provided for any of 
     those programs for any such year is less that the amount 
     needed to fully fund that program for that year, an 
     explanation of the reasons for the shortfall.

     SEC. 573. ADVANCEMENT OF BENJAMIN O. DAVIS, JUNIOR, TO GRADE 
                   OF GENERAL ON THE RETIRED LIST OF THE AIR 
                   FORCE.

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

     SEC. 574. SENSE OF THE HOUSE OF REPRESENTATIVES CONCERNING 
                   ADHERENCE BY CIVILIANS IN MILITARY CHAIN OF 
                   COMMAND TO THE STANDARD OF EXEMPLARY CONDUCT 
                   REQUIRED OF COMMANDING OFFICERS AND OTHERS IN 
                   AUTHORITY IN THE ARMED FORCES.

       It is the sense of the House of Representatives that 
     civilians in the military chain of command (as provided in 
     section 162(b) of title 10, United States Code) should (in 
     the same manner as is required by law of commanding officers 
     and others in authority in the Armed Forces)--
       (1) show in themselves a good example of virtue, honor, and 
     patriotism and subordinate themselves to those ideals;
       (2) be vigilant in inspecting the conduct of all persons 
     who are placed under their command;
       (3) guard against and put an end to all dissolute and 
     immoral practices and correct, according to the laws and 
     regulations of the Armed Forces, all persons who are guilty 
     of them; and
       (4) take all necessary and proper measures, under the laws, 
     regulations, and customs of the Armed Forces, 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.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 1999.
Sec. 602. Rate of pay for cadets and midshipmen at the service 
              academies.
Sec. 603. Basic allowance for housing outside the United States.
Sec. 604. Basic allowance for subsistence for reserves.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. Three-month extension of certain bonuses and special pay 
              authorities for reserve forces.
Sec. 612. Three-month extension of certain bonuses and special pay 
              authorities for nurse officer candidates, registered 
              nurses, and nurse anesthetists.
Sec. 613. Three-month extension of authorities relating to payment of 
              other bonuses and special pays.
Sec. 614. Increased hazardous duty pay for aerial flight crewmembers in 
              certain pay grades.
Sec. 615. Aviation career incentive pay and aviation officer retention 
              bonus.
Sec. 616. Diving duty special pay for divers having diving duty as a 
              nonprimary duty.
Sec. 617. Hardship duty pay.
Sec. 618. Selective reenlistment bonus eligibility for Reserve members 
              performing active Guard and Reserve duty.
Sec. 619. Repeal of ten percent limitation on certain selective 
              reenlistment bonuses.
Sec. 620. Increase in maximum amount authorized for Army enlistment 
              bonus.
Sec. 621. Equitable treatment of Reserves eligible for special pay for 
              duty subject to hostile fire or imminent danger.
Sec. 622. Retention incentives initiative for critically short military 
              occupational specialties.

            Subtitle C--Travel and Transportation Allowances

Sec. 631. Payments for movements of household goods arranged by 
              members.
Sec. 632. Exception to maximum weight allowance for baggage and 
              household effects.
Sec. 633. Travel and transportation allowances for travel performed by 
              members in connection with rest and recuperative leave 
              from overseas stations.
Sec. 634. Storage of baggage of certain dependents.
Sec. 635. Commercial travel of Reserves at Federal supply schedule 
              rates for attendance at inactive-duty training 
              assemblies.

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

Sec. 641. Paid-up coverage under Survivor Benefit Plan.
Sec. 642. Survivor Benefit Plan open enrollment period.
Sec. 643. Effective date of court-required former spouse Survivor 
              Benefit Plan coverage effectuated through elections and 
              deemed elections.
Sec. 644. Presentation of United States flag to members of the Armed 
              Forces upon retirement.
Sec. 645. Recovery, care, and disposition of remains of medically 
              retired member who dies during hospitalization that 
              begins while on active duty.
Sec. 646. Revision to computation of retired pay for certain members.
Sec. 647. Elimination of backlog of unpaid retired pay.

                       Subtitle E--Other Matters

Sec. 651. Definition of possessions of the United States for pay and 
              allowances purposes.
Sec. 652. Accounting of advance payments.
Sec. 653. Reimbursement of rental vehicle costs when motor vehicle 
              transported at Government expense is late.
Sec. 654. Education loan repayment program for health professions 
              officers serving in Selected Reserve.
Sec. 655. Federal employees' compensation coverage for students 
              participating in certain officer candidate programs.
Sec. 656. Relationship of enlistment bonuses to eligibility to receive 
              Army college fund supplement under Montgomery GI Bill 
              Educational Assistance Program.
Sec. 657. Authority to provide financial assistance for education of 
              certain defense dependents overseas.
Sec. 658. Clarifications concerning payments to certain persons 
              captured or interned by North Vietnam.

                     Subtitle A--Pay and Allowances

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

       (a) Waiver of Section 1009 Adjustment.--Except as provided 
     in subsection (b), the adjustment to become effective during 
     fiscal year 1999 required by section 1009 of title 37, United 
     States Code, in the rate of monthly basic pay authorized 
     members of the uniformed services by section 203(a) of such 
     title shall not be made.
       (b) Increase in Basic Pay.--Effective on January 1, 1999, 
     the rates of basic pay of members of the uniformed services 
     shall be increased by the greater of--
       (1) 3.6 percent; or
       (2) the percentage increase determined under subsection (c) 
     of section 1009 of title 37, United States Code, by which the 
     monthly basic pay of members would be adjusted under 
     subsection (a) of that section on that date in the absence of 
     subsection (a) of this section.

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

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

     SEC. 603. BASIC ALLOWANCE FOR HOUSING OUTSIDE THE UNITED 
                   STATES.

       (a) Payment of Certain Expenses Related to Overseas 
     Housing.--Section 403(c) of title 37, United States Code, is 
     amended by adding at the end the following new paragraph:
       ``(3)(A) In the case of a member of the uniformed services 
     authorized to receive an allowance under paragraph (1), the 
     Secretary concerned may make a lump-sum payment to the member 
     for required deposits and advance rent, and for expenses 
     relating thereto, that are--
       ``(i) incurred by the member in occupying private housing 
     outside of the United States; and
       ``(ii) authorized or approved under regulations prescribed 
     by the Secretary concerned.
       ``(B) Expenses for which a member may be reimbursed under 
     this paragraph may include losses relating to housing that 
     are sustained by

[[Page H8132]]

     the member as a result of fluctuations in the relative value 
     of the currencies of the United States and the foreign 
     country in which the housing is located.
       ``(C) The Secretary concerned shall recoup the full amount 
     of any deposit or advance rent payments made by the Secretary 
     under subparagraph (A), including any gain resulting from 
     currency fluctuations between the time of payment and the 
     time of recoupment.''.
       (b) Conforming Amendment.--Section 405 of title 37, United 
     States Code, is amended by striking out subsection (c).
       (c) Retroactive Application.--The reimbursement authority 
     provided by section 403(c)(3)(B) of title 37, United States 
     Code, as added by subsection (a), applies with respect to 
     losses relating to housing that are sustained, on or after 
     July 1, 1997, by a member of the uniformed services as a 
     result of fluctuations in the relative value of the 
     currencies of the United States and the foreign country in 
     which the housing is located.

     SEC. 604. BASIC ALLOWANCE FOR SUBSISTENCE FOR RESERVES.

       (a) In General.--Section 402 of title 37, United States 
     Code, is amended--
       (1) by redesignating subsections (e) and (f) as subsections 
     (f) and (g), respectively; and
       (2) by inserting after subsection (d) the following new 
     subsection:
       ``(e) Special Rule for Certain Enlisted Reserve Members.--
     Unless entitled to basic pay under section 204 of this title, 
     an enlisted member of a reserve component may receive, at the 
     discretion of the Secretary concerned, rations in kind, or a 
     part thereof, when the member's instruction or duty periods, 
     as described in section 206(a) of this title, total at least 
     eight hours in a calendar day. The Secretary concerned may 
     provide an enlisted member who could be provided rations in 
     kind under the preceding sentence with a commutation when 
     rations in kind are not available.''.
       (b) Application During Transitional Period.--Section 
     602(d)(1) of the National Defense Authorization Act for 
     Fiscal Year 1998 (Public Law 105-85; 37 U.S.C. 402 note) is 
     amended by adding at the end the following new subparagraph:
       ``(D) Special rule for certain enlisted reserve members.--
     Unless entitled to basic pay under section 204 of title 37, 
     United States Code, an enlisted member of a reserve component 
     (as defined in section 101(24) of such title) may receive, at 
     the discretion of the Secretary concerned (as defined in 
     section 101(5) of such title), rations in kind, or a part 
     thereof, when the member's instruction or duty periods (as 
     described in section 206(a) of such title) total at least 
     eight hours in a calendar day. The Secretary concerned may 
     provide an enlisted member who could be provided rations in 
     kind under the preceding sentence with a commutation when 
     rations in kind are not available.''.

           Subtitle B--Bonuses and Special and Incentive Pays

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

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

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

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

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

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

     SEC. 614. INCREASED HAZARDOUS DUTY PAY FOR AERIAL FLIGHT 
                   CREWMEMBERS IN CERTAIN PAY GRADES.

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

``E-9...............................................................240
 E-8................................................................240
 E-7................................................................240
 E-6................................................................215
 E-5................................................................190
 E-4.............................................................165''.

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

     SEC. 615. AVIATION CAREER INCENTIVE PAY AND AVIATION OFFICER 
                   RETENTION BONUS.

       (a) Definition of Aviation Service.--(1) Section 301a(a)(6) 
     of title 37, United States Code, is amended--
       (A) by redesignating subparagraphs (A), (B), and (C) as 
     subparagraphs (B), (C), and (D), respectively; and
       (B) by inserting before subparagraph (B) (as so 
     redesignated) the following new subparagraph:
       ``(A) The term `aviation service' means service performed 
     by an officer (except a flight surgeon or other medical 
     officer) while holding an aeronautical rating or designation 
     or while in training to receive an aeronautical rating or 
     designation.''.
       (2) Section 301b(j) of such title is amended by striking 
     out paragraph (1) and inserting in lieu thereof the following 
     new paragraph:
       ``(1) The term `aviation service' means service performed 
     by an officer (except a flight surgeon or other medical 
     officer) while holding an aeronautical rating or designation 
     or while in training to receive an aeronautical rating or 
     designation.''.
       (b) Amount of Incentive Pay.--Subsection (b) of section 
     301a of such title is amended to read as follows:
       ``(b)(1) A member who satisfies the requirements described 
     in subsection (a) is entitled to monthly incentive pay as 
     follows:
``Years of aviation service (including flight training) as Monthly rate
  2 or less........................................................$125
  Over 2...........................................................$156
  Over 3...........................................................$188
  Over 4...........................................................$206
  Over 6...........................................................$650
  Over 14..........................................................$840
  Over 22..........................................................$585
  Over 23..........................................................$495
  Over 24..........................................................$385
  Over 25..........................................................$250
       ``(2) An officer in a pay grade above O-6 is entitled, 
     until the officer completes 25 years of aviation service, to 
     be paid at the rates set forth in the table in paragraph (1), 
     except that--
       ``(A) an officer in pay grade O-7 may not be paid at a rate 
     greater than $200 a month; and
       ``(B) an officer in pay grade O-8 or above may not be paid 
     at a rate greater than $206 a month.
       ``(3) For a warrant officer with over 22, 23, 24, or 25 
     years of aviation service who is qualified under subsection 
     (a), the rate prescribed in the table in paragraph (1) for 
     officers with over 14 years of aviation service shall 
     continue to apply to the warrant officer.''.
       (c) References to Aviation Service.--(1) Section 301a of 
     such title is further amended--
       (A) in subsection (a)(4)--
       (i) by striking out ``22 years of the officer's service as 
     an officer'' and inserting in lieu thereof ``22 years of 
     aviation service of the officer''; and
       (ii) by striking out ``25 years of service as an officer 
     (as computed under section 205 of this title)'' and inserting 
     in lieu thereof ``25 years of aviation service''; and
       (B) in subsection (d), by striking out ``subsection (b)(1) 
     or (2), as the case may be, for the performance of that duty 
     by a member of corresponding years of aviation or officer 
     service,

[[Page H8133]]

     as appropriate,'' and inserting in lieu thereof ``subsection 
     (b) for the performance of that duty by a member with 
     corresponding years of aviation service''.
       (2) Section 301b(b)(5) of such title is amended by striking 
     out ``active duty'' and inserting in lieu thereof ``aviation 
     service''.
       (d) Conforming Amendment.--Section 615 of the National 
     Defense Authorization Act for Fiscal Year 1998 (Public Law 
     105-85; 111 Stat. 1787) is repealed.

     SEC. 616. DIVING DUTY SPECIAL PAY FOR DIVERS HAVING DIVING 
                   DUTY AS A NONPRIMARY DUTY.

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

     SEC. 617. HARDSHIP DUTY PAY.

       (a) Duty for Which Pay Authorized.--Section 305 of title 
     37, United States Code, is amended--
       (1) in subsection (a), by striking out ``on duty at a 
     location'' and all that follows through the period at the end 
     of the subsection and inserting in lieu thereof ``performing 
     duty in the United States or outside the United States that 
     is designated by the Secretary of Defense as hardship 
     duty.'';
       (2) by striking out subsections (b) and (c);
       (3) in subsection (d), by striking out ``hardship duty 
     location pay'' and inserting in lieu thereof ``hardship duty 
     pay''; and
       (4) by redesignating subsection (d) as subsection (b).
       (b) Conforming Amendment.--Section 907(d) of such title is 
     amended by striking out ``duty at a hardship duty location'' 
     and inserting in lieu thereof ``hardship duty''.
       (c) Clerical Amendments.--(1) The heading for section 305 
     of such title is amended to read as follows:

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

       (2) The item relating to such section in the table of 
     sections at the beginning of chapter 5 of such title is 
     amended to read as follows:
``305. Special pay: hardship duty pay.''.

     SEC. 618. SELECTIVE REENLISTMENT BONUS ELIGIBILITY FOR 
                   RESERVE MEMBERS PERFORMING ACTIVE GUARD AND 
                   RESERVE DUTY.

       Section 308(a)(1)(D) of title 37, United States Code, is 
     amended to read as follows:
       ``(D) reenlists or voluntarily extends the member's 
     enlistment for a period of at least three years--
       ``(i) in a regular component of the service concerned; or
       ``(ii) in a reserve component of the service concerned, if 
     the member is performing active Guard and Reserve duty (as 
     defined in section 101(d)(6) of title 10).''.

     SEC. 619. REPEAL OF TEN PERCENT LIMITATION ON CERTAIN 
                   SELECTIVE REENLISTMENT BONUSES.

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

     SEC. 620. INCREASE IN MAXIMUM AMOUNT AUTHORIZED FOR ARMY 
                   ENLISTMENT BONUS.

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

     SEC. 621. EQUITABLE TREATMENT OF RESERVES ELIGIBLE FOR 
                   SPECIAL PAY FOR DUTY SUBJECT TO HOSTILE FIRE OR 
                   IMMINENT DANGER.

       Section 310(b) of title 37, United States Code, is 
     amended--
       (1) by inserting ``(1)'' after ``(b)''; and
       (2) by adding at the end the following new paragraph:
       ``(2) A member of a reserve component who is eligible for 
     special pay under this section for a month shall receive the 
     full amount authorized in subsection (a) for that month 
     regardless of the number of days during that month on which 
     the member satisfies the eligibility criteria specified in 
     such subsection.''.

     SEC. 622. RETENTION INCENTIVES INITIATIVE FOR CRITICALLY 
                   SHORT MILITARY OCCUPATIONAL SPECIALTIES.

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

            Subtitle C--Travel and Transportation Allowances

     SEC. 631. PAYMENTS FOR MOVEMENTS OF HOUSEHOLD GOODS ARRANGED 
                   BY MEMBERS.

       (a) Monetary Allowance Authorized.--Subsection (b)(1) of 
     section 406 of title 37, United States Code, is amended--
       (1) in subparagraph (A)--
       (A) by striking out ``, or reimbursement therefor,''; and
       (B) by inserting after the second sentence the following 
     new sentence: ``Alternatively, the member may be paid 
     reimbursement or a monetary allowance under subparagraph 
     (F).''; and
       (2) by adding at the end the following new subparagraph:
       ``(F) A member entitled to transportation of baggage and 
     household effects under subparagraph (A) may, as an 
     alternative to the provision of transportation, be paid 
     reimbursement or, at the member's request, a monetary 
     allowance in advance for the cost of transportation of the 
     baggage and household effects. The monetary allowance may be 
     paid only if the amount of the allowance does not exceed the 
     cost that would be incurred by the Government under 
     subparagraph (A) for the transportation of the baggage and 
     household effects. Appropriations available to the Department 
     of Defense, the Department of Transportation, and the 
     Department of Health and Human Services for providing 
     transportation of baggage or household effects of members of 
     the uniformed services shall be available to pay a 
     reimbursement or monetary allowance under this subparagraph. 
     The Secretary concerned may prescribe the manner in which the 
     risk of liability for damage, destruction, or loss of baggage 
     or household effects arranged, packed, crated, or loaded by a 
     member is allocated among the member, the United States, and 
     any contractor when a reimbursement or monetary allowance 
     is elected under this subparagraph.''.
       (b) Repeal of Superseded Provision.--(1) Such section is 
     further amended--
       (A) by striking out subsection (j); and
       (B) by redesignating subsections (k), (l), and (m) as 
     subsections (j), (k), and (l), respectively.
       (2) Section 2634(d) of title 10, United States Code, is 
     amended by striking out ``section 406(k)'' and inserting in 
     lieu thereof ``section 406(j)''.

     SEC. 632. EXCEPTION TO MAXIMUM WEIGHT ALLOWANCE FOR BAGGAGE 
                   AND HOUSEHOLD EFFECTS.

       Section 406(b)(1)(D) of title 37, United States Code, is 
     amended in the second sentence by inserting before the period 
     the following: ``, unless the additional weight allowance in 
     excess of such maximum is intended to permit the shipping of 
     consumables that cannot be reasonably obtained at the new 
     station of the member''.

     SEC. 633. TRAVEL AND TRANSPORTATION ALLOWANCES FOR TRAVEL 
                   PERFORMED BY MEMBERS IN CONNECTION WITH REST 
                   AND RECUPERATIVE LEAVE FROM OVERSEAS STATIONS.

       (a) Provision of Transportation.--Section 411c of title 37, 
     United States Code, is amended by striking out subsection (b) 
     and inserting in lieu thereof the following new subsection:
       ``(b) When the transportation authorized by subsection (a) 
     is provided by the Secretary concerned, the Secretary may use 
     Government or commercial carriers. The Secretary concerned 
     may limit the amount of payments made to members under 
     subsection (a).''.
       (b) Clerical Amendments.--(1) The heading of such section 
     is amended to read as follows:

     ``Sec. 411c. Travel and transportation allowances: travel 
       performed in connection with rest and recuperative leave 
       from certain stations in foreign countries''.

       (2) The item relating to such section in the table of 
     sections at the beginning of chapter 7 of such title is 
     amended to read as follows:
``411c. Travel and transportation allowances: travel performed in 
              connection with rest and recuperative leave from certain 
              stations in foreign countries.''.

     SEC. 634. STORAGE OF BAGGAGE OF CERTAIN DEPENDENTS.

       Section 430(b) of title 37, United States Code, is 
     amended--
       (1) by inserting ``(1)'' after ``(b)''; and
       (2) by adding at the end the following new paragraph:
       ``(2) At the option of the member, in lieu of the 
     transportation of baggage of a dependent child under 
     paragraph (1) from the dependent's school in the continental 
     United States, the Secretary concerned may pay or reimburse 
     the member for costs incurred to store the baggage at or in 
     the vicinity of the school during the dependent's annual trip 
     between the school and

[[Page H8134]]

     the member's duty station. The amount of the payment or 
     reimbursement may not exceed the cost that the Government 
     would incur to transport the baggage.''.

     SEC. 635. COMMERCIAL TRAVEL OF RESERVES AT FEDERAL SUPPLY 
                   SCHEDULE RATES FOR ATTENDANCE AT INACTIVE-DUTY 
                   TRAINING ASSEMBLIES.

       (a) Authority.--Chapter 1217 of title 10, United States 
     Code is amended by adding at the end the following new 
     section:

     ``Sec. 12603. Attendance at inactive-duty training 
       assemblies: commercial travel at Federal supply schedule 
       rates

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

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

     SEC. 641. 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 and Age 70.--Effective 
     October 1, 2008, no reduction may be made under this section 
     in the retired pay of a participant in the Plan for any month 
     after the later of--
       ``(1) the 360th month for which the participant's retired 
     pay is reduced under this section; and
       ``(2) the month during which the participant attains 70 
     years of age.''.

     SEC. 642. SURVIVOR BENEFIT PLAN OPEN ENROLLMENT PERIOD.

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

     SEC. 643. EFFECTIVE DATE OF COURT-REQUIRED FORMER SPOUSE 
                   SURVIVOR BENEFIT PLAN COVERAGE EFFECTUATED 
                   THROUGH ELECTIONS AND DEEMED ELECTIONS.

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

     SEC. 644. PRESENTATION OF UNITED STATES FLAG TO MEMBERS OF 
                   THE ARMED FORCES UPON RETIREMENT.

       (a) Army.--(1) Chapter 353 of title 10, United States Code, 
     is amended by inserting after the table of sections the 
     following new section:

     ``Sec. 3681. Presentation of United States flag upon 
       retirement

       ``(a) Presentation of Flag.--Upon the release of a member 
     of the Army from active duty for retirement, the Secretary of 
     the Army shall present a United States flag to the member.
       ``(b) Multiple Presentations Not Authorized.--A member is 
     not eligible for a presentation of a flag under subsection 
     (a) if the member has previously been presented a flag under 
     this section or section 6141 or 8681 of this title or section 
     516 of title 14.
       ``(c) No Cost to Recipient.--The presentation of a flag 
     under this section shall be at no cost to the recipient.''.

[[Page H8135]]

       (2) The table of sections at the beginning of such chapter 
     is amended by inserting before the item relating to section 
     3684 the following new item:
``3681. Presentation of United States flag upon retirement.''.
       (b) Navy and Marine Corps.--(1) Chapter 561 of title 10, 
     United States Code, is amended by inserting after the table 
     of sections the following new section:

     ``Sec. 6141. Presentation of United States flag upon 
       retirement

       ``(a) Presentation of Flag.--Upon the release of a member 
     of the Navy or Marine Corps from active duty for retirement 
     or transfer to the Fleet Reserve or the Fleet Marine Corps 
     Reserve, the Secretary of the Navy shall present a United 
     States flag to the member.
       ``(b) Multiple Presentations Not Authorized.--A member is 
     not eligible for a presentation of a flag under subsection 
     (a) if the member has previously been presented a flag under 
     this section or section 3681 or 8681 of this title or section 
     516 of title 14.
       ``(c) No Cost to Recipient.--The presentation of a flag 
     under this section shall be at no cost to the recipient.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting before the item relating to section 
     6151 the following new item:
``6141. Presentation of United States flag upon retirement.''.
       (c) Air Force.--(1) Chapter 853 of title 10, United States 
     Code, is amended by inserting after the table of sections the 
     following new section:

     ``Sec. 8681. Presentation of United States flag upon 
       retirement

       ``(a) Presentation of Flag.--Upon the release of a member 
     of the Air Force from active duty for retirement, the 
     Secretary of the Air Force shall present a United States flag 
     to the member.
       ``(b) Multiple Presentations Not Authorized.--A member is 
     not eligible for a presentation of a flag under subsection 
     (a) if the member has previously been presented a flag under 
     this section or section 3681 or 6141 of this title or section 
     516 of title 14.
       ``(c) No Cost to Recipient.--The presentation of a flag 
     under this section shall be at no cost to the recipient.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting before the item relating to section 
     8684 the following new item:
``8681. Presentation of United States flag upon retirement.''.
       (d) Coast Guard.--(1) Chapter 13 of title 14, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 516. Presentation of United States flag upon 
       retirement

       ``(a) Presentation of Flag.--Upon the release of a member 
     of the Coast Guard from active duty for retirement, the 
     Secretary of Transportation shall present a United States 
     flag to the member.
       ``(b) Multiple Presentations Not Authorized.--A member is 
     not eligible for a presentation of a flag under subsection 
     (a) if the member has previously been presented a flag under 
     this section or section 3681, 6141, and 8681 of title 10.
       ``(c) No Cost to Recipient.--The presentation of a flag 
     under his section shall be at no cost to the recipient.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:
``516. Presentation of United States flag upon retirement.''.
       (e) Effective Date.--Sections 3681, 6141, and 8681 of title 
     10, United States Code (as added by this section), and 
     section 516 of title 14, United States Code (as added by 
     subsection (d)), shall apply with respect to releases from 
     active duty described in those sections on or after October 
     1, 1998.

     SEC. 645. RECOVERY, CARE, AND DISPOSITION OF REMAINS OF 
                   MEDICALLY RETIRED MEMBER WHO DIES DURING 
                   HOSPITALIZATION THAT BEGINS WHILE ON ACTIVE 
                   DUTY.

       (a) In General.--Paragraph (7) of section 1481(a) of title 
     10, United States Code, is amended to read as follows:
       ``(7) A person who--
       ``(A) dies as a retired member of an armed force under the 
     Secretary's jurisdiction during a continuous hospitalization 
     of the member as a patient in a United States hospital that 
     began while the member was on active duty for a period of 
     more than 30 days; or
       ``(B) is not covered by subparagraph (A) and, while in a 
     retired status by reason of eligibility to retire under 
     chapter 61 of this title, dies during a continuous 
     hospitalization of the person that began while the person was 
     on active duty as a Regular of an armed force under the 
     Secretary's jurisdiction.''.
       (b) Repeal of Obsolete Terminology.--Paragraph (1) of such 
     section is amended by striking out ``, or a member of an 
     armed force without component,''.
       (c) Effective Date.--The amendment made by subsection (a) 
     applies with respect to deaths occurring on or after the date 
     of the enactment of this Act.

     SEC. 646. REVISION TO COMPUTATION OF RETIRED PAY FOR CERTAIN 
                   MEMBERS.

       Section 1406(i) of title 10, United States Code, is 
     amended--
       (1) by redesignating paragraph (2) as paragraph (3); and
       (2) by inserting after paragraph (1) the following new 
     paragraph (2);
       ``(2) Exception for members reduced in grade or who do not 
     serve satisfactorily.--Paragraph (1) does not apply in the 
     case of a member who, while or after serving in a position 
     specified in that paragraph and by reason of conduct 
     occurring on or after the date of the enactment of the Strom 
     Thurmond National Defense Authorization Act for Fiscal Year 
     1999--
       ``(A) in the case of an enlisted member, is reduced in 
     grade as the result of a court-martial sentence, nonjudicial 
     punishment, or other administrative process; or
       ``(B) in the case an officer, is not certified by the 
     Secretary of Defense under section 1370(c) of this title as 
     having served on active duty satisfactorily in the grade of 
     general or admiral, as the case may be, while serving in that 
     position.''.

     SEC. 647. ELIMINATION OF BACKLOG OF UNPAID RETIRED PAY.

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

                       Subtitle E--Other Matters

     SEC. 651. DEFINITION OF POSSESSIONS OF THE UNITED STATES FOR 
                   PAY AND ALLOWANCES PURPOSES.

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

     SEC. 652. ACCOUNTING OF ADVANCE PAYMENTS.

       Section 1006(e) of title 37, United States Code, is 
     amended--
       (1) by inserting ``(1)'' after ``(e)''; and
       (2) by adding at the end the following new paragraph:
       ``(2)(A) Notwithstanding any other provision of law, an 
     obligation for an advance of pay made pursuant to this 
     section shall be recorded as an obligation only in the fiscal 
     year in which the entitlement of the member to the pay 
     accrues.
       ``(B) Current appropriations available for advance payments 
     under this section may be transferred to the prior fiscal 
     year appropriation available for the same purpose in 
     the amount of any unliquidated advance payments that 
     remain at the end of such prior fiscal year. Such 
     unliquidated advance payments shall then be credited to 
     the current appropriation.''.

     SEC. 653. REIMBURSEMENT OF RENTAL VEHICLE COSTS WHEN MOTOR 
                   VEHICLE TRANSPORTED AT GOVERNMENT EXPENSE IS 
                   LATE.

       (a) Transportation in Connection With Change of Permanent 
     Station.--Section 2634 of title 10, United States Code, is 
     amended--
       (1) by redesignating subsection (g) as subsection (h); and
       (2) by inserting after subsection (f) the following new 
     subsection:
       ``(g) If a motor vehicle of a member (or a dependent of the 
     member) that is transported at the expense of the United 
     States under this section does not arrive at the authorized 
     destination of the vehicle by the designated delivery date, 
     the Secretary concerned shall reimburse the member for 
     expenses incurred after that date to rent a motor vehicle for 
     the member's use, or for the use of the dependent for whom 
     the delayed vehicle was transported. The amount reimbursed 
     may not exceed $30 per day, and the rental period for which 
     reimbursement may be provided expires after seven days or on 
     the date on which the delayed vehicle arrives at the 
     authorized destination (whichever occurs first).''.
       (b) Transportation in Connection With Other Moves.--Section 
     406(h) of title 37, United States Code, is amended by adding 
     at the end the following new paragraph:
       ``(3) If a motor vehicle of a member (or a dependent of the 
     member) that is transported at the expense of the United 
     States under this subsection does not arrive at the 
     authorized destination of the vehicle by the designated 
     delivery date, the Secretary concerned shall reimburse the 
     member for expenses incurred after that date to rent a motor 
     vehicle for the dependent's use. The amount reimbursed may 
     not exceed $30 per day, and the rental period for which 
     reimbursement may be provided expires after seven days or on 
     the date on which the delayed vehicle arrives at the 
     authorized destination (whichever occurs first).''.
       (c) Transportation in Connection With Departure Allowances 
     for Dependents.--Section 405a(b) of title 37, United States 
     Code, is amended--
       (1) by inserting ``(1)'' after ``(b)''; and
       (2) by adding at the end the following new paragraph:
       ``(2) If a motor vehicle of a member (or a dependent of the 
     member) that is transported at the expense of the United 
     States under paragraph (1) does not arrive at the authorized 
     destination of the vehicle by the designated delivery date, 
     the Secretary concerned shall reimburse the member for 
     expenses incurred after that date to rent a motor vehicle for 
     the dependent's use. The amount reimbursed may not exceed $30 
     per day, and the rental period for which reimbursement may be 
     provided expires after seven days or on the date on which the 
     delayed vehicle arrives at the authorized destination 
     (whichever occurs first).''.
       (d) Transportation in Connection With Effects of Missing 
     Persons.--Section 554 of title 37, United States Code, is 
     amended--
       (1) by redesignating subsection (i) as subsection (j); and
       (2) by inserting after subsection (h) the following new 
     subsection:

[[Page H8136]]

       ``(i) If a motor vehicle of a member (or a dependent of the 
     member) that is transported at the expense of the United 
     States under this section does not arrive at the authorized 
     destination of the vehicle by the designated delivery date, 
     the Secretary concerned shall reimburse the dependent for 
     expenses incurred after that date to rent a motor vehicle for 
     the dependent's use. The amount reimbursed may not exceed $30 
     per day, and the rental period for which reimbursement may be 
     provided expires after seven days or on the date on which the 
     delayed vehicle arrives at the authorized destination 
     (whichever occurs first).''.
       (e) Application of Amendments.--(1) Reimbursement for motor 
     vehicle rental expenses may not be provided under the 
     amendments made by this section until after the date on which 
     the Secretary of Defense submits to Congress a report 
     containing a certification that the Department of Defense has 
     in place and operational a system to recover the cost of 
     providing such reimbursement from commercial carriers that 
     are responsible for the delay in the delivery of the motor 
     vehicles of members of the Armed Forces and their dependents. 
     The Secretary of Defense shall prepare the report in 
     consultation with the Secretary of Transportation, with 
     respect to the Coast Guard.
       (2) The amendments shall apply with respect to rental 
     expenses described in such amendments that are incurred on or 
     after the date of the submission of the report. The report 
     shall be submitted not later than six months after the date 
     of the enactment of this Act and shall include, in addition 
     to the certification, a description of the system to be used 
     to recover from commercial carriers the costs incurred under 
     such amendments.

     SEC. 654. EDUCATION LOAN REPAYMENT PROGRAM FOR HEALTH 
                   PROFESSIONS OFFICERS SERVING IN SELECTED 
                   RESERVE.

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

     SEC. 655. FEDERAL EMPLOYEES' COMPENSATION COVERAGE FOR 
                   STUDENTS PARTICIPATING IN CERTAIN OFFICER 
                   CANDIDATE PROGRAMS.

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

     SEC. 656. RELATIONSHIP OF ENLISTMENT BONUSES TO ELIGIBILITY 
                   TO RECEIVE ARMY COLLEGE FUND SUPPLEMENT UNDER 
                   MONTGOMERY GI BILL EDUCATIONAL ASSISTANCE 
                   PROGRAM.

       (a) Enlistement Bonuses and GI Bill Supplement not 
     Exclusive.--Section 3015(d) of title 38, United States Code, 
     is amended--
       (1) by inserting ``(1)'' after ``(d)''; and
       (2) by adding at the end the following:
       ``(2) In the case of an individual who after October 7, 
     1997, receives an enlistment bonus under section 308a or 308f 
     of title 37, receipt of that bonus does not affect the 
     eligibility of that individual for an increase under 
     paragraph (1) in the rate of the basic educational assistance 
     allowance applicable to that individual, and the Secretary 
     concerned may provide such an increase for that individual 
     (and enter into an agreement with that individual that the 
     United States agrees to make payments pursuant to such an 
     increase) without regard to any provision of law (enacted 
     before, on, or after the date of the enactment of this 
     paragraph) that limits the authority to make such 
     payments.''.
       (b) Repeal of Related Limitations.--(1) Section 8013(a) of 
     the Department of Defense Appropriations Act, 1998 (111 Stat. 
     1222), is amended--
       (A) by striking out ``on or after the date of enactment of 
     this Act--'' and all that follows through ``nor shall any 
     amounts'' and inserting in lieu thereof ``after October 7, 
     1997, enlists in the armed services for a period of active 
     duty of less than three years, nor shall any amounts''; and
       (B) in the first proviso, by striking out ``in the case of 
     a member covered by clause (1),''.
       (2) Section 8013(a) of the Department of Defense 
     Appropriations Act, 1999, is amended--
       (A) by striking out ``of this Act--'' and all that follows 
     through ``nor shall any amounts'' and inserting in lieu 
     thereof ``of this Act, enlists in the armed services for a 
     period of active duty of less that three years, nor shall any 
     amounts''; and
       (B) in the first proviso, by striking out ``in the case of 
     a member covered by clause (1),''.
       (3) The amendments made by paragraph (2) shall take effect 
     on the later of the following:
       (A) The date of the enactment of this Act.
       (B) The date of the enactment of the Department of Defense 
     Appropriations Act, 1999.

     SEC. 657. AUTHORITY TO PROVIDE FINANCIAL ASSISTANCE FOR 
                   EDUCATION OF CERTAIN DEFENSE DEPENDENTS 
                   OVERSEAS.

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

     SEC. 658. CLARIFICATIONS CONCERNING PAYMENTS TO CERTAIN 
                   PERSONS CAPTURED OR INTERNED BY NORTH VIETNAM.

       (a) Eligibile Survivors.--Subsection (b) of section 657 of 
     the National Defense Authorization Act for Fiscal Year 1997 
     (Public Law 104-201; 110 Stat. 2585) is amended by adding at 
     the end the following new paragraphs:
       ``(3) If there is no surviving spouse or surviving child, 
     to the parents of the decedent, in equal shares, or, if one 
     parent of the decedent has died, to the surviving parent.
       ``(4) If there is no surviving spouse, surviving child, or 
     surviving parent, to the surviving siblings by blood of the 
     decedent, in equal shares.''.
       (b) Permitted Recipients of Payment Disbursement.--
     Subsection (f)(1) of such section is amended by striking out 
     ``The actual disbursement'' and inserting in lieu thereof 
     ``Notwithstanding any agreement (including a power of 
     attorney) to the contrary, the actual disbursement''.

                   TITLE VII--HEALTH CARE PROVISIONS

                    Subtitle A--Health Care Services

Sec. 701. Dependents' dental program.
Sec. 702. Expansion of dependent eligibility under retiree dental 
              program.
Sec. 703. Plan for redesign of military pharmacy system.
Sec. 704. Transitional authority to provide continued health care 
              coverage for certain persons unaware of loss of CHAMPUS 
              eligibility.

                      Subtitle B--TRICARE Program

Sec. 711. Payment of claims for provision of health care under the 
              TRICARE program for which a third party may be liable.
Sec. 712. TRICARE Prime automatic enrollments and retiree payment 
              options.
Sec. 713. System for tracking data and measuring performance in meeting 
              TRICARE access standards.
Sec. 714. Establishment of appeals process for claimcheck denials.
Sec. 715. Reviews relating to accessibility of health care under 
              TRICARE.

 Subtitle C--Health Care Services For Medicare-Eligible Department of 
                         Defense Beneficiaries

Sec. 721. Demonstration project to include certain covered 
              beneficiaries within Federal Employees Health Benefits 
              Program.
Sec. 722. TRICARE as Supplement to Medicare demonstration.
Sec. 723. Implementation of redesign of pharmacy system.
Sec. 724. Comprehensive evaluation of implementation of demonstration 
              projects and TRICARE pharmacy redesign.

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

Sec. 731. Process for waiving informed consent requirement for 
              administration of certain drugs to members of Armed 
              Forces for purposes of a particular military operation.
Sec. 732. Health benefits for abused dependents of members of the Armed 
              Forces.
Sec. 733. Provision of health care at military entrance processing 
              stations and elsewhere outside medical treatment 
              facilities.
Sec. 734. Professional qualifications of physicians providing military 
              health care.

[[Page H8137]]

                       Subtitle E--Other Matters

Sec. 741. Enhanced Department of Defense Organ and Tissue Donor 
              program.
Sec. 742. Authorization to establish a Level 1 Trauma Training Center.
Sec. 743. Authority to establish center for study of post-deployment 
              health concerns of members of the Armed Forces.
Sec. 744. Report on implementation of enrollment-based capitation for 
              funding for military medical treatment facilities.
Sec. 745. Joint Department of Defense and Department of Veterans 
              Affairs reports relating to interdepartmental cooperation 
              in the delivery of medical care.
Sec. 746. Report on research and surveillance activities regarding lyme 
              disease and other tick-borne diseases.

                    Subtitle A--Health Care Services

     SEC. 701. DEPENDENTS' DENTAL PROGRAM.

       (a) Premium Increase.--Section 1076a(b)(2) of title 10, 
     United States Code, is amended--
       (A) by inserting ``(A)'' after ``(2)''; and
       (B) by adding at the end the following:
       ``(B) Effective as of January 1 of each year, the amount of 
     the premium required under subparagraph (A) shall be 
     increased by the percent equal to the lesser of--
       ``(i) the percent by which the rates of basic pay of 
     members of the uniformed services are increased on such date; 
     or
       ``(ii) the sum of one-half percent and the percent computed 
     under section 5303(a) of title 5 for the increase in rates of 
     basic pay for statutory pay systems for pay periods beginning 
     on or after such date.''.
       (2) The amendment made by subparagraph (B) of paragraph (1) 
     shall take effect on January 1, 1999, and shall apply to 
     months after 1998 as if such subparagraph had been in effect 
     since December 31, 1993.
       (b) Limitation on Reduction of Benefits.--Section 1076a is 
     further amended by adding at the end the following new 
     subsection:
       ``(j) Limitation on Reduction of Benefits.--The Secretary 
     of Defense may not reduce benefits provided under this 
     section until--
       ``(1) the Secretary provides notice of the Secretary's 
     intent to reduce such benefits to the Committee on National 
     Security of the House of Representatives and the Committee on 
     Armed Services of the Senate; and
       ``(2) one year has elapsed following the date of such 
     notice.''.

     SEC. 702. EXPANSION OF DEPENDENT ELIGIBILITY UNDER RETIREE 
                   DENTAL PROGRAM.

       (a) In General.--Subsection (b) of section 1076c of title 
     10, United States Code, is amended--
       (1) by redesignating paragraph (4) as paragraph (5); and
       (2) by inserting after paragraph (3) the following new 
     paragraph:
       ``(4) Eligible dependents of a member described in 
     paragraph (1) or (2) who is not enrolled in the plan and 
     who--
       ``(A) is enrolled under section 1705 of title 38 to receive 
     dental care from the Secretary of Veterans Affairs;
       ``(B) is enrolled in a dental plan that--
       ``(i) is available to the member as a result of employment 
     by the member that is separate from the military service of 
     the member; and
       ``(ii) is not available to dependents of the member as a 
     result of such separate employment by the member; or
       ``(C) is prevented by a medical or dental condition from 
     being able to obtain benefits under the plan.''.
       (b) Conforming Amendment.--Subsection (f)(3) of such 
     section is amended by striking out ``(b)(4)'' and inserting 
     in lieu thereof ``(b)(5)''.

     SEC. 703. PLAN FOR REDESIGN OF MILITARY PHARMACY SYSTEM.

       (a) Plan Required.--The Secretary of Defense shall submit 
     to Congress a plan that would provide for a system-wide 
     redesign of the military and contractor retail and mail-order 
     pharmacy system of the Department of Defense by incorporating 
     ``best business practices'' of the private sector. The 
     Secretary shall work with contractors of TRICARE retail 
     pharmacy and national mail-order pharmacy programs to develop 
     a plan for the redesign of the pharmacy system that--
       (1) may include a plan for an incentive-based formulary for 
     military medical treatment facilities and contractors of 
     TRICARE retail pharmacies and the national mail-order 
     pharmacy; and
       (2) shall include a plan for each of the following:
       (A) A uniform formulary for such facilities and 
     contractors.
       (B) A centralized database that integrates the patient 
     databases of pharmacies of military medical treatment 
     facilities and contractor retail and mail-order programs to 
     implement automated prospective drug utilization review 
     systems.
       (C) A system-wide drug benefit for covered beneficiaries 
     under chapter 55 of title 10, United States Code, who are 
     entitled to hospital insurance benefits under part A of title 
     XVIII of the Social Security Act (42 U.S.C. 1395c et seq.).
       (b) Submission of Plan.--The Secretary shall submit the 
     plan required under subsection (a) not later than March 1, 
     1999.
       (c) Suspension of Implementation of Program.--The Secretary 
     shall suspend any plan to establish a national retail 
     pharmacy program for the Department of Defense until--
       (1) the plan required under subsection (a) is submitted; 
     and
       (2) the Secretary implements cost-saving reforms with 
     respect to the military and contractor retail and mail order 
     pharmacy system.

     SEC. 704. TRANSITIONAL AUTHORITY TO PROVIDE CONTINUED HEALTH 
                   CARE COVERAGE FOR CERTAIN PERSONS UNAWARE OF 
                   LOSS OF CHAMPUS ELIGIBILITY.

       (a) Transitional Coverage.--The administering Secretaries 
     may continue eligibility of a person described in subsection 
     (b) for health care coverage under the Civilian Health and 
     Medical Program of the Uniformed Services based on a 
     determination that such continuation is appropriate to assure 
     health care coverage for any such person who may have been 
     unaware of the loss of eligibility to receive health benefits 
     under that program.
       (b) Persons Eligible.--A person shall be eligible for 
     transitional health care coverage under subsection (a) if the 
     person--
       (1) is a person described in paragraph (1) of subsection 
     (d) of section 1086 of title 10, United States Code;
       (2) in the absence of such paragraph, would be eligible for 
     health benefits under such section; and
       (3) satisfies the criteria specified in subparagraphs (A) 
     and (B) of paragraph (2) of such subsection.
       (c) Extent of Transitional Authority.--The authority to 
     continue eligibility under this section shall apply with 
     respect to health care services provided between October 1, 
     1998, and July 1, 1999.
       (d) Definition.--In this section, the term ``administering 
     Secretaries'' has the meaning given that term in section 
     1072(3) of title 10, United States Code.

                      Subtitle B--TRICARE Program

     SEC. 711. PAYMENT OF CLAIMS FOR PROVISION OF HEALTH CARE 
                   UNDER THE TRICARE PROGRAM FOR WHICH A THIRD 
                   PARTY MAY BE LIABLE.

       (a) In General.--(1) Chapter 55 of title 10, United States 
     Code, is amended by inserting after section 1095a the 
     following new section:

     ``Sec. 1095b. TRICARE program: contractor payment of certain 
       claims

       ``(a) Payment of Claims.--(1) The Secretary of Defense may 
     authorize a contractor under the TRICARE program to pay a 
     claim described in paragraph (2) before seeking to recover 
     from a third-party payer the costs incurred by the contractor 
     to provide health care services that are the basis of the 
     claim to a beneficiary under such program.
       ``(2) A claim under this paragraph is a claim--
       ``(A) that is submitted to the contractor by a provider 
     under the TRICARE program for payment for services for health 
     care provided to a covered beneficiary; and
       ``(B) that is identified by the contractor as a claim for 
     which a third-party payer may be liable.
       ``(b) Recovery From Third-Party Payers.--A contractor for 
     the provision of health care services under the TRICARE 
     program that pays a claim described in subsection (a)(2) 
     shall have the right to collect from the third-party payer 
     the costs incurred by such contractor on behalf of the 
     covered beneficiary. The contractor shall have the same right 
     to collect such costs under this subsection as the right of 
     the United States to collect costs under section 1095 of this 
     title.
       ``(c) Definition of Third-Party Payer.--In this section, 
     the term `third-party payer' has the meaning given that term 
     in section 1095(h) of this title, except that such term 
     excludes primary medical insurers.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 1095a the following new item:
``1095b. TRICARE program: contractor payment of certain claims.''.

     SEC. 712. TRICARE PRIME AUTOMATIC ENROLLMENTS AND RETIREE 
                   PAYMENT OPTIONS.

       (a) Procedures.--(1) Chapter 55 of title 10, United States 
     Code, is amended by inserting after section 1097 the 
     following new section:

     ``Sec. 1097a. TRICARE Prime: automatic enrollments; payment 
       options

       ``(a) Automatic Enrollment of Certain Dependents.--Each 
     dependent of a member of the uniformed services in grade E4 
     or below who is entitled to medical and dental care under 
     section 1076(a)(2)(A) of this title and resides in the 
     catchment area of a facility of a uniformed service offering 
     TRICARE Prime shall be automatically enrolled in TRICARE 
     Prime at the facility. The Secretary concerned shall provide 
     written notice of the enrollment to the member. The 
     enrollment of a dependent of the member may be terminated by 
     the member or the dependent at any time.
       ``(b) Automatic Renewal of Enrollments of Covered 
     Beneficiaries.--(1) An enrollment of a covered beneficiary in 
     TRICARE Prime shall be automatically renewed upon the 
     expiration of the enrollment unless the renewal is declined.
       ``(2) Not later than 15 days before the expiration date for 
     an enrollment of a covered beneficiary in TRICARE Prime, the 
     Secretary concerned shall--
       ``(A) transmit a written notification of the pending 
     expiration and renewal of enrollment to the covered 
     beneficiary or, in the case of a dependent of a member of the 
     uniformed services, to the member; and
       ``(B) afford the beneficiary or member, as the case may be, 
     an opportunity to decline the renewal of enrollment.
       ``(c) Payment Options for Retirees.--A member or former 
     member of the uniformed services eligible for medical care 
     and dental care under section 1074(b) of this title may elect 
     to have any fee payable by the member or former member for an 
     enrollment in TRICARE Prime withheld from the member's 
     retired pay, retainer pay, or equivalent pay, as the case may 
     be, or to be paid from a financial institution through

[[Page H8138]]

     electronic transfers of funds. The fee shall be paid in 
     accordance with the election. A member may elect under this 
     section to pay the fee in full at the beginning of the 
     enrollment period or to make payments on a monthly or 
     quarterly basis.
       ``(d) Regulations and Exceptions.--The Secretary of Defense 
     shall prescribe regulations, including procedures, to carry 
     out this section. Regulations prescribed to carry out the 
     automatic enrollment requirements under this section may 
     include such exceptions to the automatic enrollment 
     procedures as the Secretary determines appropriate for the 
     effective operation of TRICARE Prime.
       ``(e) Definitions.--In this section:
       ``(1) The term `TRICARE Prime' means the managed care 
     option of the TRICARE program.
       ``(2) The term `catchment area', with respect to a facility 
     of a uniformed service, means the service area of 
     the facility, as designated under regulations prescribed 
     by the administering Secretaries.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     1097 the following new item:
1097a. TRICARE Prime: automatic enrollments; payment options.''.
       (b) Deadline for Implementation.--The regulations required 
     under subsection (d) of section 1097a of title 10, United 
     States Code (as added by subsection (a)), shall be prescribed 
     to take effect not later than September 30, 1999. The section 
     shall be applied under TRICARE Prime on and after the date on 
     which the regulations take effect.

     SEC. 713. SYSTEM FOR TRACKING DATA AND MEASURING PERFORMANCE 
                   IN MEETING TRICARE ACCESS STANDARDS.

       (a) Requirement To Establish System.--(1) The Secretary of 
     Defense shall establish a system--
       (A) to track data regarding access of covered beneficiaries 
     under chapter 55 of title 10, United States Code, to primary 
     health care under the TRICARE program; and
       (B) to measure performance in increasing such access 
     against the primary care access standards established by the 
     Secretary under the TRICARE program.
       (2) In implementing the system described in paragraph (1), 
     the Secretary shall collect data on the timeliness of 
     appointments and precise waiting times for appointments in 
     order to measure performance in meeting the primary care 
     access standards established under the TRICARE program.
       (b) Deadline for Establishment.--The Secretary shall 
     establish the system described in subsection (a) not later 
     than April 1, 1999.

     SEC. 714. ESTABLISHMENT OF APPEALS PROCESS FOR CLAIMCHECK 
                   DENIALS.

       (a) Establishment of Appeals Process.--Not later than 
     January 1, 1999, the Secretary of Defense shall establish an 
     appeals process in cases of denials through the ClaimCheck 
     computer software system (or any other claims processing 
     system that may be used by the Secretary) of claims by 
     civilian providers for payment for health care services 
     provided under the TRICARE program.
       (b) Report.--Not later than March 1, 1999, the Secretary 
     shall submit to Congress a report on the implementation of 
     this section.

     SEC. 715. REVIEWS RELATING TO ACCESSIBILITY OF HEALTH CARE 
                   UNDER TRICARE.

       (a) Review of Rehabilitative Services for Head Injuries.--
     The Secretary of Defense shall review policies under the 
     TRICARE program (including a review of the TRICARE policy 
     manual) to determine if policies addressing the availability 
     of rehabilitative services for TRICARE patients suffering 
     from head injuries are adequate and appropriately address 
     consideration of certification by an attending physician that 
     such services would be beneficial for such a patient.
       (b) Review of Adequacy of Provider Network.--The Secretary 
     of Defense shall review the administration of the TRICARE 
     Prime health plans to determine whether, for each region 
     covered by such a plan, there is a sufficient number, 
     distribution, and variety of qualified participating health 
     care providers to ensure that covered health care services, 
     including specialty services and rehabilitative services, are 
     accessible in the vicinity of the residence of the enrollees 
     and available in a timely manner to such enrollees, 
     regardless of where such enrollees are located within the 
     TRICARE region.
       (c) Report.--Not later than April 1, 1999, the Secretary of 
     Defense shall submit to the Committee on Armed Services of 
     the Senate and the Committee on National Security of the 
     House of Representatives a report on the results of the 
     reviews required by subsections (a) and (b), together with a 
     description of any actions taken or directed as a result of 
     those reviews.

 Subtitle C--Health Care Services For Medicare-Eligible Department of 
                         Defense Beneficiaries

     SEC. 721. DEMONSTRATION PROJECT TO INCLUDE CERTAIN COVERED 
                   BENEFICIARIES WITHIN FEDERAL EMPLOYEES HEALTH 
                   BENEFITS PROGRAM.

       (a) FEHBP Demonstration Project.--(1) Chapter 55 of title 
     10, United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 1108. Health care coverage through Federal Employees 
       Health Benefits program: demonstration project

       ``(a) FEHBP Option Demonstration.--The Secretary of 
     Defense, after consulting with the other administering 
     Secretaries, shall enter into an agreement with the Office of 
     Personnel Management to conduct a demonstration project (in 
     this section referred to as the `demonstration project') 
     under which eligible beneficiaries described in subsection 
     (b) and residing within one of the areas covered by the 
     demonstration project may enroll in health benefits plans 
     offered through the Federal Employees Health Benefits program 
     under chapter 89 of title 5. The number of eligible 
     beneficiaries and family members of such beneficiaries under 
     subsection (b)(2) who may be enrolled in health benefits 
     plans during the enrollment period under subsection (d)(2) 
     may not exceed 66,000.
       ``(b) Eligible Beneficiaries; Coverage.--(1) An eligible 
     beneficiary under this subsection is--
       ``(A) a member or former member of the uniformed services 
     described in section 1074(b) of this title who is entitled to 
     hospital insurance benefits under part A of title XVIII of 
     the Social Security Act (42 U.S.C. 1395c et seq.);
       ``(B) an individual who is an unremarried former spouse of 
     a member or former member described in section 1072(2)(F) or 
     1072(2)(G));
       ``(C) an individual who is--
       ``(i) a dependent of a deceased member or former member 
     described in section 1076(b) or 1076(a)(2)(B) of this title 
     or of a member who died while on active duty for a period of 
     more than 30 days; and
       ``(ii) a member of family as defined in section 8901(5) of 
     title 5; or
       ``(D) an individual who is--
       ``(i) a dependent of a living member or former member 
     described in section 1076(b)(1) of this title who is entitled 
     to hospital insurance benefits under part A of title XVIII of 
     the Social Security Act, regardless of the member's or former 
     member's eligibility for such hospital insurance benefits; 
     and
       ``(ii) a member of family as defined in section 8901(5) of 
     title 5.
       ``(2) Eligible beneficiaries may enroll in a Federal 
     Employees Health Benefit plan under chapter 89 of title 5 
     under this section for self-only coverage or for self and 
     family coverage which includes any dependent of the member or 
     former member who is a family member for purposes of such 
     chapter.
       ``(3) A person eligible for coverage under this subsection 
     shall not be required to satisfy any eligibility criteria 
     specified in chapter 89 of title 5 (except as provided in 
     paragraph (1)(C) or (1)(D)) as a condition for enrollment in 
     health benefits plans offered through the Federal Employees 
     Health Benefits program under the demonstration project.
       ``(4) For purposes of determining whether an individual is 
     a member of family under paragraph (5) of section 8901 of 
     title 5 for purposes of paragraph (1)(C) or (1)(D), a member 
     or former member described in section 1076(b) or 
     1076(a)(2)(B) of this title shall be deemed to be an employee 
     under such section.
       ``(5) An eligible beneficiary who is eligible to enroll in 
     the Federal Employees Health Benefits program as an employee 
     under chapter 89 of title 5 is not eligible to enroll in a 
     Federal Employees Health Benefits plan under this section.
       ``(c) Area of Demonstration Project.--The Secretary of 
     Defense and the Director of the Office of Personnel 
     Management shall jointly identify and select the geographic 
     areas in which the demonstration project will be conducted. 
     The Secretary and the Director shall establish at least six, 
     but not more than ten, such demonstration areas. In 
     establishing the areas, the Secretary and Director shall 
     include--
       ``(1) an area that includes the catchment area of one or 
     more military medical treatment facilities;
       ``(2) an area that is not located in the catchment area of 
     a military medical treatment facility;
       ``(3) an area in which there is a Medicare Subvention 
     Demonstration project area under section 1896 of title XVIII 
     of the Social Security Act (42 U.S.C. 1395ggg); and
       ``(4) not more than one area for each TRICARE region.
       ``(d) Duration of Demonstration Project.--(1) The Secretary 
     of Defense shall conduct the demonstration project during 
     three contract years under the Federal Employees Health 
     Benefits program.
       ``(2) Eligible beneficiaries shall, as provided under the 
     agreement pursuant to subsection (a), be permitted to enroll 
     in the demonstration project during an open enrollment period 
     for the year 2000 (conducted in the fall of 1999). The 
     demonstration project shall terminate on December 31, 2002.
       ``(e) Prohibition Against Use of MTFs and Enrollment Under 
     TRICARE.--Covered beneficiaries under this chapter who are 
     provided coverage under the demonstration project shall not 
     be eligible to receive care at a military medical treatment 
     facility or to enroll in a heath care plan under the TRICARE 
     program.
       ``(f) Term of Enrollment in Project.--(1) Subject to 
     paragraphs (2) and (3), the period of enrollment of an 
     eligible beneficiary who enrolls in the demonstration project 
     during the open enrollment period for the year 2000 shall be 
     three years unless the beneficiary disenrolls before the 
     termination of the project.
       ``(2) A beneficiary who elects to enroll in the project, 
     and who subsequently discontinues enrollment in the project 
     before the end of the period described in paragraph (1), 
     shall not be eligible to reenroll in the project.
       ``(3) An eligible beneficiary enrolled in a Federal 
     Employees Health Benefits plan under this section may change 
     health benefits plans and coverage in the same manner as any 
     other Federal Employees Health Benefits program beneficiary 
     may change such plans.
       ``(g) Effect of Cancellation.--The cancellation by an 
     eligible beneficiary of coverage under the Federal Employee 
     Health Benefits program shall be irrevocable during the term 
     of the demonstration project.
       ``(h) Separate Risk Pools; Charges.--(1) The Director of 
     the Office of Personnel Management shall require health 
     benefits plans under chapter 89 of title 5 that participate 
     in the demonstration project to maintain a separate risk

[[Page H8139]]

     pool for purposes of establishing premium rates for eligible 
     beneficiaries who enroll in such a plan in accordance with 
     this section.
       ``(2) The Director shall determine total subscription 
     charges for self only or for family coverage for eligible 
     beneficiaries who enroll in a health benefits plan under 
     chapter 89 of title 5 in accordance with this section. The 
     subscription charges shall include premium charges paid to 
     the plan and amounts described in section 8906(c) of title 5 
     for administrative expenses and contingency reserves.
       ``(i) Government Contributions.--The Secretary of Defense 
     shall be responsible for the Government contribution for an 
     eligible beneficiary who enrolls in a health benefits plan 
     under chapter 89 of title 5 in accordance with this section, 
     except that the amount of the contribution may not exceed the 
     amount of the Government contribution which would be payable 
     if the electing beneficiary were an employee (as defined for 
     purposes of such chapter) enrolled in the same health 
     benefits plan and level of benefits.
       ``(j) Report Requirements.--(1) The Secretary of Defense 
     and the Director of the Office of Personnel Management shall 
     jointly submit to Congress two reports containing the 
     information described in paragraph (2). The first report 
     shall be submitted not later than the date that is 15 
     months after the date that the Secretary begins to 
     implement the demonstration project. The second report 
     shall be submitted not later than December 31, 2002.
       ``(2) The reports required by paragraph (1) shall include 
     the following:
       ``(A) Information on the number of eligible beneficiaries 
     who elect to participate in the demonstration project.
       ``(B) An analysis of the percentage of eligible 
     beneficiaries who participate in the demonstration project as 
     compared to the percentage of covered beneficiaries under 
     this chapter who elect to enroll in a health care plan under 
     such chapter.
       ``(C) Information on eligible beneficiaries who elect to 
     participate in the demonstration project and did not have 
     Medicare Part B coverage before electing to participate in 
     the project.
       ``(D) An analysis of the enrollment rates and cost of 
     health services provided to eligible beneficiaries who elect 
     to participate in the demonstration project as compared with 
     similarly situated enrollees in the Federal Employees Health 
     Benefits program under chapter 89 of title 5.
       ``(E) An analysis of how the demonstration project affects 
     the accessibility of health care in military medical 
     treatment facilities, and a description of any unintended 
     effects on the treatment priorities in those facilities in 
     the demonstration area.
       ``(F) An analysis of any problems experienced by the 
     Department of Defense in managing the demonstration project.
       ``(G) A description of the effects of the demonstration 
     project on medical readiness and training of the armed forces 
     at military medical treatment facilities located in the 
     demonstration area, and a description of the probable effects 
     that making the project permanent would have on the medical 
     readiness and training.
       ``(H) An examination of the effects that the demonstration 
     project, if made permanent, would be expected to have on the 
     overall budget of the Department of Defense, the budget of 
     the Office of Personnel and Management, and the budgets of 
     individual military medical treatment facilities.
       ``(I) An analysis of whether the demonstration project 
     affects the cost to the Department of Defense of prescription 
     drugs or the accessibility, availability, and cost of such 
     drugs to eligible beneficiaries.
       ``(J) Any additional information that the Secretary of 
     Defense or the Director of the Office of Personnel Management 
     consider appropriate to assist Congress in determining the 
     viability of expanding the project to all Medicare-eligible 
     members of the uniformed services and their dependents.
       ``(K) Recommendations on whether eligible beneficiaries--
       ``(i) should be given more than one chance to enroll in a 
     the demonstration project under this section;
       ``(ii) should be eligible to enroll in the project only 
     during the first year following the date that the eligible 
     beneficiary becomes eligible to receive hospital insurance 
     benefits under part A of title XVIII of the Social Security 
     Act; or
       ``(iii) should be eligible to enroll in the project only 
     during the two-year period following the date on which the 
     beneficiary first becomes eligible to enroll in the project.
       ``(k) Comptroller General Report.--Not later than December 
     31, 2002, the Comptroller General shall submit to Congress a 
     report addressing the same matters required to be addressed 
     under subsection (j)(2). The report shall describe any 
     limitations with respect to the data contained in the report 
     as a result of the size and design of the demonstration 
     project.
       ``(l) Application of Medigap Protections to Demonstration 
     Project Enrollees.--(1) Subject to paragraph (2), the 
     provisions of section 1882(s)(3) (other than clauses (i) 
     through (iv) of subparagraph (B)) and 1882(s)(4) of the 
     Social Security Act shall apply to enrollment (and 
     termination of enrollment) in the demonstration project under 
     this section, in the same manner as they apply to enrollment 
     (and termination of enrollment) with a Medicare+Choice 
     organization in a Medicare+Choice plan.
       ``(2) In applying paragraph (1)--
       ``(A) any reference in clause (v) or (vi) of section 
     1882(s)(3)(B) of such Act to 12 months is deemed a reference 
     to 36 months; and
       ``(B) the notification required under section 1882(s)(3)(D) 
     of such Act shall be provided in a manner specified by the 
     Secretary of Defense in consultation with the Director of the 
     Office of Personnel Management.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:
``1108. Health care coverage through Federal Employees Health Benefits 
              program: demonstration project.''.
       (b) Conforming Amendments.--Chapter 89 of title 5, United 
     States Code, is amended--
       (1) in section 8905--
       (A) by redesignating subsections (d) through (f) as 
     subsections (e) through (g), respectively; and
       (B) by inserting after subsection (c) the following new 
     subsection:
       ``(d) An individual whom the Secretary of Defense 
     determines is an eligible beneficiary under subsection (b) of 
     section 1108 of title 10 may enroll, as part of the 
     demonstration project under such section, in a health 
     benefits plan under this chapter in accordance with the 
     agreement under subsection (a) of such section between the 
     Secretary and the Office and applicable regulations under 
     this chapter.'';
       (2) in section 8906(b)--
       (A) in paragraph (1), by striking ``paragraphs (2) and 
     (3)'' and inserting in lieu thereof ``paragraphs (2), (3), 
     and (4)''; and
       (B) by adding at the end the following new paragraph:
       ``(4) In the case of persons who are enrolled in a health 
     benefits plan as part of the demonstration project under 
     section 1108 of title 10, the Government contribution shall 
     be subject to the limitation set forth in subsection (i) of 
     that section.'';
       (3) in section 8906(g)--
       (A) in paragraph (1), by striking ``paragraph (2)'' and 
     inserting in lieu thereof ``paragraphs (2) and (3)''; and
       (B) by adding at the end the following new paragraph:
       ``(3) The Government contribution for persons enrolled in a 
     health benefits plan as part of the demonstration project 
     under section 1108 of title 10 shall be paid as provided in 
     subsection (i) of that section.''; and
       (4) in section 8909, by adding at the end the following new 
     subsection:
       ``(g) The fund described in subsection (a) is available to 
     pay costs that the Office incurs for activities associated 
     with implementation of the demonstration project under 
     section 1108 of title 10.''.

     SEC. 722. TRICARE AS SUPPLEMENT TO MEDICARE DEMONSTRATION.

       (a) In General.--(1) The Secretary of Defense shall, after 
     consultation with the other administering Secretaries, carry 
     out a demonstration project in order to assess the 
     feasibility and advisability of providing medical care 
     coverage under the TRICARE program to the individuals 
     described in subsection (c). The demonstration project shall 
     be known as the ``TRICARE Senior Supplement''.
       (2) The Secretary shall commence the demonstration project 
     not later than January 1, 2000, and shall terminate the 
     demonstration project not later than December 31, 2002.
       (3) Under the demonstration project, the Secretary shall 
     permit eligible individuals described in subsection (c) to 
     enroll in the TRICARE program.
       (4) Payment for care and services received by eligible 
     individuals who enroll in the TRICARE program under the 
     demonstration project shall be made as follows:
       (A) First, under title XVIII of the Social Security Act, 
     but only to the extent that payment for such care and 
     services is provided for under that title.
       (B) Second, under the TRICARE program, but only to the 
     extent that payment for such care and services is provided 
     under that program and is not provided for under subparagraph 
     (A).
       (C) Third, by the eligible individual concerned, but only 
     to the extent that payment for such care and services is not 
     provided for under subparagraphs (A) or (B).
       (5)(A) The Secretary shall require each eligible individual 
     who enrolls in the TRICARE program under the demonstration 
     project to pay an enrollment fee. The Secretary shall 
     provide, to the extent feasible, the option of payment of the 
     enrollment fee through electronic transfers of funds and 
     through withholding of such payment from the pay of a member 
     or former member of the Armed Forces, and shall provide the 
     option that payment of the enrollment fee be made in full at 
     the beginning of the enrollment period or that payments be 
     made on a monthly or quarterly basis.
       (B) The amount of the enrollment fee charged an eligible 
     individual under subparagraph (A) for self only or family 
     enrollment in any year may not exceed the amount equal to 75 
     percent of the total subscription charges in that year for 
     self-only or family, respectively, fee-for-service coverage 
     under the health benefits plan under the Federal Employees 
     Health Benefits program under chapter 89 of title 5, United 
     States Code, that is most similar in coverage to the TRICARE 
     program.
       (6) A covered beneficiary who enrolls in TRICARE Senior 
     Supplement under this subsection shall not be eligible to 
     receive health care at a facility of the uniformed services 
     during the period such enrollment is in effect.
       (b) Evaluation; Review.--(1) The Secretary shall provide 
     for an evaluation of the demonstration project conducted 
     under this subsection by an appropriate person or entity that 
     is independent of the Department of Defense. The evaluation 
     shall include the following:
       (A) An analysis of the costs of the demonstration project 
     to the United States and to the eligible individuals who 
     participate in such demonstration project.
       (B) An assessment of the extent to which the demonstration 
     project satisfies the requirements of such eligible 
     individuals for the health care services available under the 
     demonstration project.

[[Page H8140]]

       (C) An assessment of the effect, if any, of the 
     demonstration project on military medical readiness.
       (D) A description of the rate of the enrollment in the 
     demonstration project of the individuals who were eligible to 
     enroll in the demonstration project.
       (E) An assessment of whether the demonstration project 
     provides the most suitable model for a program to provide 
     adequate health care services to the population of 
     individuals consisting of the eligible individuals.
       (F) An evaluation of any other matters that the Secretary 
     considers appropriate.
       (2) The Comptroller General shall review the evaluation 
     conducted under paragraph (1). In carrying out the review, 
     the Comptroller General shall--
       (A) assess the validity of the processes used in the 
     evaluation; and
       (B) assess the validity of any findings under the 
     evaluation, including any limitations with respect to the 
     data contained in the evaluation as a result of the size and 
     design of the demonstration project.
       (3)(A) The Secretary shall submit a report on the results 
     of the evaluation under paragraph (1), together with the 
     evaluation, to the Committee on Armed Services of the Senate 
     and the Committee on National Security of the House of 
     Representatives not later than December 31, 2002.
       (B) The Comptroller General shall submit a report on the 
     results of the review under paragraph (2) to the committees 
     referred to in subparagraph (A) not later than February 15, 
     2003.
       (c) Eligible Individuals.--(1) An individual is eligible to 
     participate under this section if the individual is a member 
     or former member of the uniformed services described in 
     section 1074(b) of title 10, United States Code, a dependent 
     of the member described in section 1076(a)(2)(B) or 1076(b) 
     of that title, or a dependent of a member of the uniformed 
     services who died while on active duty for a period of more 
     than 30 days, who--
       (A) is 65 years of age or older;
       (B) is entitled to hospital insurance benefits under part A 
     of title XVIII of the Social Security Act (42 U.S.C. 1395c et 
     seq.);
       (C) is enrolled in the supplemental medical insurance 
     program under part B of such title XVIII (42 U.S.C. 1395j et 
     seq.); and
       (D) resides in an area selected by the Secretary under 
     subsection (c).
       (c) Areas of Implementation.--(1) The Secretary shall carry 
     out the demonstration project under this section in two 
     separate areas selected by the Secretary.
       (2) The areas selected by the Secretary under paragraph (1) 
     shall be as follows:
       (A) One area shall be an area outside the catchment area of 
     a military medical treatment facility in which--
       (i) no eligible organization has a contract in effect under 
     section 1876 of the Social Security Act (42 U.S.C. 1395mm) 
     and no Medicare+Choice organization has a contract in effect 
     under part C of title XVIII of that Act (42 U.S.C. 1395w-21); 
     or
       (ii) the aggregate number of enrollees with an eligible 
     organization with a contract in effect under section 1876 of 
     that Act or with a Medicare+Choice organization with a 
     contract in effect under part C of title XVIII of that Act is 
     less than 2.5 percent of the total number of individuals in 
     the area who are entitled to hospital insurance benefits 
     under part A of title XVIII of that Act.
       (B) The other area shall be an area outside the catchment 
     area of a military medical treatment facility in which--
       (i) at least one eligible organization has a contract in 
     effect under section 1876 of that Act or one Medicare+Choice 
     organization has a contract in effect under part C of title 
     XVIII of that Act; and
       (ii) the aggregate number of enrollees with an eligible 
     organization with a contract in effect under section 1876 of 
     that Act or with a Medicare+Choice organization with a 
     contract in effect under part C of title XVIII of that Act 
     exceeds 10 percent of the total number of individuals in the 
     area who are entitled to hospital insurance benefits under 
     part A of title XVIII of that Act.
       (d) Definitions.--In this section:
       (1) The term ``administering Secretaries'' has the meaning 
     given that term in section 1072(3) of title 10, United States 
     Code.
       (2) The term ``TRICARE program'' has the meaning given that 
     term in section 1072(7) of title 10, United States Code.

     SEC. 723. IMPLEMENTATION OF REDESIGN OF PHARMACY SYSTEM.

       (a) In General.--Not later than October 1, 1999, the 
     Secretary of Defense shall implement, with respect to 
     eligible individuals described in subsection (e) who reside 
     in an area selected under subsection (f), the redesign of the 
     pharmacy system under TRICARE (including the mail-order and 
     retail pharmacy benefit under TRICARE) to incorporate ``best 
     business practices'' of the private sector in providing 
     pharmaceuticals, as developed under the plan described in 
     section 703.
       (b) Collection of Premiums and Other Charges.--The 
     Secretary of Defense may collect from eligible individuals 
     described in subsection (e) who participate in the redesigned 
     pharmacy system any premiums, deductibles, copayments, or 
     other charges that the Secretary would otherwise collect from 
     individuals similar to such individuals.
       (c) Evaluation.--The Secretary shall provide for an 
     evaluation of the implementation of the redesign of the 
     pharmacy system under TRICARE under this section by an 
     appropriate person or entity that is independent of the 
     Department of Defense. The evaluation shall include the 
     following:
       (1) An analysis of the costs of the implementation of the 
     redesign of the pharmacy system under TRICARE and to the 
     eligible individuals who participate in the system.
       (2) An assessment of the extent to which the implementation 
     of such system satisfies the requirements of the eligible 
     individuals for the health care services available under 
     TRICARE.
       (3) An assessment of the effect, if any, of the 
     implementation of the system on military medical readiness.
       (4) A description of the rate of the participation in the 
     system of the individuals who were eligible to participate.
       (5) An evaluation of any other matters that the Secretary 
     considers appropriate.
       (d) Reports.--The Secretary shall submit two reports on the 
     results of the evaluation under subsection (c), together with 
     the evaluation, to the Committee on Armed Services of the 
     Senate and the Committee on National Security of the House of 
     Representatives. The first report shall be submitted not 
     later than December 31, 2000, and the second report shall be 
     submitted not later than December 31, 2002.
       (e) Eligible Individuals.--(1) An individual is eligible to 
     participate under this section if the individual is a member 
     or former member of the uniformed services described in 
     section 1074(b) of title 10, United States Code, a dependent 
     of the member described in section 1076(a)(2)(B) or 1076(b) 
     of that title, or a dependent of a member of the uniformed 
     services who died while on active duty for a period of more 
     than 30 days, who--
       (A) is 65 years of age or older;
       (B) is entitled to hospital insurance benefits under part A 
     of title XVIII of the Social Security Act (42 U.S.C. 1395c et 
     seq.);
       (C) except as provided in paragraph (2), is enrolled in the 
     supplemental medical insurance program under part B of such 
     title XVIII (42 U.S.C. 1395j et seq.); and
       (D) resides in an area selected by the Secretary under 
     subsection (f).
       (2) Paragraph (1)(C) shall not apply in the case of an 
     individual who at the time of attaining the age of 65 lived 
     within 100 miles of the catchment area of a military medical 
     treatment facility.
       (f) Areas of Implementation.--(1) The Secretary shall carry 
     out the implementation of the redesign of the pharmacy system 
     under TRICARE in two separate areas selected by the 
     Secretary.
       (2) The areas selected by the Secretary under paragraph (1) 
     shall be as follows:
       (A) One area shall be an area outside the catchment area of 
     a military medical treatment facility in which--
       (i) no eligible organization has a contract in effect under 
     section 1876 of the Social Security Act (42 U.S.C. 1395mm) 
     and no Medicare+Choice organization has a contract in effect 
     under part C of title XVIII of that Act (42 U.S.C. 1395w-21); 
     or
       (ii) the aggregate number of enrollees with an eligible 
     organization with a contract in effect under section 1876 of 
     that Act or with a Medicare+Choice organization with a 
     contract in effect under part C of title XVIII of that Act is 
     less than 2.5 percent of the total number of individuals in 
     the area who are entitled to hospital insurance benefits 
     under part A of title XVIII of that Act.
       (B) The other area shall be an area outside the catchment 
     area of a military medical treatment facility in which--
       (i) at least one eligible organization has a contract in 
     effect under section 1876 of that Act or one Medicare+Choice 
     organization has a contract in effect under part C of title 
     XVIII of that Act; and
       (ii) the aggregate number of enrollees with an eligible 
     organization with a contract in effect under section 1876 of 
     that Act or with a Medicare+Choice organization with a 
     contract in effect under part C of title XVIII of that Act 
     exceeds 10 percent of the total number of individuals in the 
     area who are entitled to hospital insurance benefits under 
     part A of title XVIII of that Act.

     SEC. 724. COMPREHENSIVE EVALUATION OF IMPLEMENTATION OF 
                   DEMONSTRATION PROJECTS AND TRICARE PHARMACY 
                   REDESIGN.

       Not later than March 31, 2003, the Comptroller General 
     shall submit to the Committee on Armed Services of the Senate 
     and the Committee on National Security of the House of 
     Representatives a report containing a comprehensive 
     comparative analysis of the FEHBP demonstration project 
     conducted under section 1108 of title 10, United States Code 
     (as added by section 721), the TRICARE Senior Supplement 
     under section 722, and the redesign of the TRICARE pharmacy 
     system under section 723. The comprehensive analysis shall 
     incorporate the findings of the evaluation submitted under 
     section 723(c) and the report submitted under subsection (j) 
     of such section 1108.

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

     SEC. 731. PROCESS FOR WAIVING INFORMED CONSENT REQUIREMENT 
                   FOR ADMINISTRATION OF CERTAIN DRUGS TO MEMBERS 
                   OF ARMED FORCES FOR PURPOSES OF A PARTICULAR 
                   MILITARY OPERATION.

       (a) Limitation and Waiver.--(1) Section 1107 of title 10, 
     United States Code, is amended--
       (A) by redesignating subsection (f) as subsection (g); and
       (B) by inserting after subsection (e) the following new 
     subsection (f):
       ``(f) Limitation and Waiver.--(1) In the case of the 
     administration of an investigational new drug or a drug 
     unapproved for its applied use to a member of the armed 
     forces in connection with the member's participation in a 
     particular military operation, the requirement that the 
     member provide prior consent to receive the drug in 
     accordance with the prior consent requirement imposed under 
     section 505(i)(4) of the Federal Food, Drug, and Cosmetic Act 
     (21 U.S.C.

[[Page H8141]]

     355(i)(4)) may be waived only by the President. The President 
     may grant such a waiver only if the President determines, in 
     writing, that obtaining consent--
       ``(A) is not feasible;
       ``(B) is contrary to the best interests of the member; or
       ``(C) is not in the interests of national security.
       ``(2) In making a determination to waive the prior consent 
     requirement on a ground described in subparagraph (A) or (B) 
     of paragraph (1), the President shall apply the standards and 
     criteria that are set forth in the relevant FDA regulations 
     for a waiver of the prior consent requirement on that ground.
       ``(3) The Secretary of Defense may request the President to 
     waive the prior consent requirement with respect to the 
     administration of an investigational new drug or a drug 
     unapproved for its applied use to a member of the armed 
     forces in connection with the member's participation in a 
     particular military operation. With respect to any such 
     administration--
       ``(A) the Secretary may not delegate to any other official 
     the authority to request the President to waive the prior 
     consent requirement for the Department of Defense; and
       ``(B) if the President grants the requested waiver, the 
     Secretary shall submit to the chairman and ranking minority 
     member of each congressional defense committee a notification 
     of the waiver, together with the written determination of the 
     President under paragraph (1) and the Secretary's 
     justification for the request or requirement under subsection 
     (a) for the member to receive the drug covered by the waiver.
       ``(4) In this subsection:
       ``(A) The term `relevant FDA regulations' means the 
     regulations promulgated under section 505(i) of the Federal 
     Food, Drug, and Cosmetic Act (21 U.S.C. 355(i)).
       ``(B) The term `prior consent requirement' means the 
     requirement included in the relevant FDA regulations pursuant 
     to section 505(i)(4) of the Federal Food, Drug, and Cosmetic 
     Act (21 U.S.C. 355(i)(4)).
       ``(C) The term `congressional defense committee' means each 
     of the following:
       ``(i) The Committee on Armed Services and the Committee on 
     Appropriations of the Senate.
       ``(ii) The Committee on National Security and the Committee 
     on Appropriations of the House of Representatives.''.
       (2) Subsection (f) of section 1107 of title 10, United 
     States Code (as added by paragraph (1)), shall apply to the 
     administration of an investigational new drug or a drug 
     unapproved for its applied use to a member of the Armed 
     Forces in connection with the member's participation in a 
     particular military operation on or after the date of the 
     enactment of this Act.
       (3) A waiver of the requirement for prior consent imposed 
     under the regulations required under paragraph (4) of section 
     505(i) of the Federal Food, Drug, and Cosmetic Act (or under 
     any antecedent provision of law or regulations) that has been 
     granted under that section (or antecedent provision of law or 
     regulations) before the date of the enactment of this Act for 
     the administration of a drug to a member of the Armed Forces 
     in connection with the member's participation in a particular 
     military operation may be applied in that case after that 
     date only if--
       (A) the Secretary of Defense personally determines that the 
     waiver is justifiable on each ground on which the waiver was 
     granted;
       (B) the President concurs in that determination in writing; 
     and
       (C) the Secretary submits to the chairman and ranking 
     minority member of each congressional committee referred to 
     in section 1107(f)(4)(C) of title 10, United States Code (as 
     added by paragraph (1))--
       (i) a notification of the waiver;
       (ii) the President's written concurrence; and
       (iii) the Secretary's justification for the request or for 
     the requirement under subsection 1107(a) of such title for 
     the member to receive the drug covered by the waiver.
       (b) Time and Form of Notice.--(1) Subsection (b) of such 
     section is amended by striking out ``, if practicable'' and 
     all that follows through ``first administered to the 
     member''.
       (2) Subsection (c) of such section is amended by striking 
     out ``unless the Secretary of Defense determines'' and all 
     that follows through ``alternative method''.

     SEC. 732. HEALTH BENEFITS FOR ABUSED DEPENDENTS OF MEMBERS OF 
                   THE ARMED FORCES.

       Section 1076(e) of title 10, United States Code, is 
     amended--
       (1) by amending paragraph (1) to read as follows:
       ``(1) Subject to paragraph (3), the administering Secretary 
     shall furnish an abused dependent of a former member of a 
     uniformed service described in paragraph (4), during that 
     period that the abused dependent is in receipt of 
     transitional compensation under section 1059 of this title, 
     with medical and dental care, including mental health 
     services, in facilities of the uniformed services in 
     accordance with the same eligibility and benefits as were 
     applicable for that abused dependent during the period of 
     active service of the former member.''; and
       (2) in paragraph (3)--
       (A) by adding ``and'' at the end of subparagraph (A);
       (B) by striking ``; and'' at the end of subparagraph (B) 
     and inserting a period; and
       (C) by striking subparagraph (C).

     SEC. 733. PROVISION OF HEALTH CARE AT MILITARY ENTRANCE 
                   PROCESSING STATIONS AND ELSEWHERE OUTSIDE 
                   MEDICAL TREATMENT FACILITIES.

       (a) Extension of Authorization for Use of Personal Services 
     Contracts.--Section 1091(a)(2) of title 10, United States 
     Code, is amended in the second sentence by striking out ``the 
     end of the one-year period beginning on the date of the 
     enactment of this paragraph'' and inserting in lieu thereof 
     ``December 31, 2000''.
       (b) Test of Alternative Process for Conducting Medical 
     Screenings for Enlistment Qualification.--(1) The Secretary 
     of Defense shall conduct a test to--
       (A) determine whether the use of an alternative to the 
     system currently used by the Department of Defense of 
     employing fee-basis physicians for determining the medical 
     qualifications for enlistment of applicants for military 
     service would reduce the number of disqualifying medical 
     conditions that are detected during the initial entry 
     training of such applicants;
       (B) determine whether any savings or cost avoidance may be 
     achieved through use of an alternative system as a result of 
     any increased detection of disqualifying medical conditions 
     before entry by applicants into initial entry training; and
       (C) compare the capability of an alternative system to meet 
     or exceed the cost, responsiveness, and timeliness standards 
     of the system currently used by the Department.
       (2) The alternative system described in paragraph (1) may 
     include the system used under the TRICARE system, the health-
     care system of the Department of Veterans Affairs, or any 
     other system, or combination of systems, considered 
     appropriate by the Secretary.
       (3) Not later than March 1, 2000, the Secretary shall 
     submit to the Committee on National Security of the House of 
     Representatives and the Committee on Armed Services of the 
     Senate a report on the results and findings of the test 
     conducted under paragraph (1).

     SEC. 734. PROFESSIONAL QUALIFICATIONS OF PHYSICIANS PROVIDING 
                   MILITARY HEALTH CARE.

       (a) Requirement for Unrestricted License.--Section 
     1094(a)(1) of title 10, United States Code, is amended by 
     adding at the end the following: ``In the case of a 
     physician, the physician may not provide health care as a 
     physician under this chapter unless the current license is an 
     unrestricted license that is not subject to limitation on the 
     scope of practice ordinarily granted to other physicians for 
     a similar specialty by the jurisdiction that granted the 
     license.''.
       (b) Satisfaction of Continuing Medical Education 
     Requirements.--(1) Chapter 55 of title 10, United States 
     Code, is amended by inserting after section 1094 the 
     following new section:

     ``Sec. 1094a. Continuing medical education requirements: 
       system for monitoring physician compliance

       ``The Secretary of Defense shall establish a mechanism for 
     ensuring that each person under the jurisdiction of the 
     Secretary of a military department who provides health care 
     under this chapter as a physician satisfies the continuing 
     medical education requirements applicable to the 
     physician.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     1094 the following new item:
``1094a. Continuing medical education requirements: system for 
              monitoring physician compliance.''.
       (c) Effective Dates.--(1) The amendment made by subsection 
     (a) shall take effect on October 1, 1999.
       (2) The system required by section 1094a of title 10, 
     United States Code (as added by subsection (b)), shall take 
     effect on the date that is three years after the date of the 
     enactment of this Act.

                       Subtitle E--Other Matters

     SEC. 741. ENHANCED DEPARTMENT OF DEFENSE ORGAN AND TISSUE 
                   DONOR PROGRAM.

       (a) Findings.--Congress makes the following findings:
       (1) Organ and tissue transplantation is one of the most 
     remarkable medical success stories in the history of 
     medicine.
       (2) Each year, the number of people waiting for organ or 
     tissue transplantation increases. It is estimated that there 
     are approximately 39,000 patients, ranging in age from babies 
     to those in retirement, awaiting transplants of kidneys, 
     hearts, livers, and other solid organs.
       (3) The Department of Defense has made significant progress 
     in increasing the awareness of the importance of organ and 
     tissue donations among members of the Armed Forces.
       (4) The inclusion of organ and tissue donor elections in 
     the Defense Enrollment Eligibility Reporting System (DEERS) 
     central database represents a major step in ensuring that 
     organ and tissue donor elections are a matter of record and 
     are accessible in a timely manner.
       (b) Responsibilities Regarding Organ and Tissue Donation.--
     (1) Chapter 55 of title 10, United States Code, is amended by 
     adding after section 1108, as added by section 721(a)(1), the 
     following new section:

     ``Sec. 1109. Organ and tissue donor program

       ``(a) Responsibilities of the Secretary of Defense.--The 
     Secretary of Defense shall ensure that the advanced systems 
     developed for recording armed forces members' personal data 
     and information (such as the SMARTCARD, MEDITAG, and Personal 
     Information Carrier) include the capability to record organ 
     and tissue donation elections.
       ``(b) Responsibilities of the Secretaries of the Military 
     Departments.--(1) The Secretaries of the military departments 
     shall ensure that--
       ``(1) appropriate information about organ and tissue 
     donation is provided--
       ``(A) to each officer candidate during initial training; 
     and
       ``(B) to each recruit--
       ``(i) after completion by the recruit of basic training; 
     and

[[Page H8142]]

       ``(ii) before arrival of the recruit at the first duty 
     assignment of the recruit;
       ``(2) members of the armed forces are given recurring, 
     specific opportunities to elect to be organ or tissue donors 
     during service in the armed forces and upon retirement; and
       ``(3) members of the armed forces electing to be organ or 
     tissue donors are encouraged to advise their next of kin 
     concerning the donation decision and any subsequent change of 
     that decision.
       ``(c) Responsibilities of the Surgeons General of the 
     Military Departments.--The Surgeons General of the military 
     departments shall ensure that--
       ``(1) appropriate training is provided to enlisted and 
     officer medical personnel to facilitate the effective 
     operation of organ and tissue donation activities under 
     garrison conditions and, to the extent possible, under 
     operational conditions; and
       ``(2) medical logistical activities can, to the extent 
     possible without jeopardizing operational requirements, 
     support an effective organ and tissue donation program.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding after the item relating to section 1108, 
     as added by section 721(a)(2), the following new item:
``1109. Organ and tissue donor program.''.
       (c) Report.--Not later than September 1, 1999, the 
     Secretary of Defense shall submit to the Committee on Armed 
     Services of the Senate and the Committee on National Security 
     of the House of Representatives a report on the 
     implementation of section 1109 of title 10, United States 
     Code (as added by subsection (b).

     SEC. 742. AUTHORIZATION TO ESTABLISH A LEVEL 1 TRAUMA 
                   TRAINING CENTER.

       The Secretary of the Army is hereby authorized to establish 
     a Level 1 Trauma Training Center (as designated by the 
     American College of Surgeons) in order to provide the Army 
     with a trauma center capable of training forward surgical 
     teams.

     SEC. 743. AUTHORITY TO ESTABLISH CENTER FOR STUDY OF POST-
                   DEPLOYMENT HEALTH CONCERNS OF MEMBERS OF THE 
                   ARMED FORCES.

       The Secretary of Defense is hereby authorized to establish 
     a center devoted to a longitudinal study to evaluate data on 
     the health conditions of members of the Armed Forces upon 
     their return from deployment on military operations for 
     purposes of ensuring the rapid identification of any trends 
     in diseases, illnesses, or injuries among such members as a 
     result of such operations.

     SEC. 744. REPORT ON IMPLEMENTATION OF ENROLLMENT-BASED 
                   CAPITATION FOR FUNDING FOR MILITARY MEDICAL 
                   TREATMENT FACILITIES.

       (a) Report Required.--The Secretary of Defense shall submit 
     to Congress a report on the potential impact of using an 
     enrollment-based capitation methodology to allocate funds for 
     military medical treatment facilities. The report shall 
     address the following:
       (1) A description of the plans of the Secretary to 
     implement an enrollment-based capitation methodology for 
     military medical treatment facilities and with respect to 
     contracts for the delivery of health care under the TRICARE 
     program.
       (2) The justifications for implementing an enrollment-based 
     capitation methodology without first conducting a 
     demonstration project for implementation of such methodology.
       (3) The impact that implementation of an enrollment based 
     capitation methodology would have on the provision of space-
     available care at military medical treatment facilities, 
     particularly in the case of care for--
       (A) military retirees entitled who are entitled to hospital 
     insurance benefits under part A of title XVIII of the Social 
     Security Act (42 U.S.C. 1395c et seq.); and
       (B) covered beneficiaries under chapter 55 of title 10, 
     United States Code, who reside outside the catchment area of 
     a military medical treatment facility.
       (4) The impact that implementation of an enrollment-based 
     capitation methodology would have with respect to the 
     pharmacy benefits provided at military medical treatment 
     facilities, given that the enrollment-based capitation 
     methodology would fund military medical treatment facilities 
     based on the number of members at such facilities enrolled in 
     TRICARE Prime, but all covered beneficiaries may fill 
     prescriptions at military medical treatment facility 
     pharmacies.
       (5) An explanation of how additional funding will be 
     provided for a military medical treatment facility if an 
     enrollment-based capitation methodology is implemented to 
     ensure that space-available care and pharmacy coverage can be 
     provided to covered beneficiaries who are not enrolled at the 
     military medical treatment facility, and the amount of 
     funding that will be available.
       (6) An explanation of how implementation of an enrollment-
     based capitation methodology would impact the provision of 
     uniform benefits under TRICARE Prime, and how the Secretary 
     would ensure, if such methodology were implemented, that the 
     provision of health care under TRICARE Prime would not be 
     bifurcated between the provision of such care at military 
     medical treatment facilities and the provision of such care 
     from civilian providers.
       (b) Deadline for Submission.--The Secretary shall submit 
     the report required by subsection (a) not later than March 1, 
     1999.

     SEC. 745. JOINT DEPARTMENT OF DEFENSE AND DEPARTMENT OF 
                   VETERANS AFFAIRS REPORTS RELATING TO 
                   INTERDEPARTMENTAL COOPERATION IN THE DELIVERY 
                   OF MEDICAL CARE.

       (a) Findings.--Congress makes the following findings:
       (1) The military health care system of the Department of 
     Defense and the Veterans Health Administration of the 
     Department of Veterans Affairs are national institutions that 
     collectively manage more than 1,500 hospitals, clinics, and 
     health care facilities worldwide to provide services to more 
     than 11,000,000 beneficiaries.
       (2) In the post-Cold War era, these institutions are in a 
     profound transition that involves challenging opportunities.
       (3) During the period from 1988 to 1998, the number of 
     military medical personnel has declined by 15 percent and the 
     number of military hospitals has been reduced by one-third.
       (4) During the two years since 1996, the Department of 
     Veterans Affairs has revitalized its structure by 
     decentralizing authority into 22 Veterans Integrated Service 
     Networks.
       (5) In the face of increasing costs of medical care, 
     increased demands for health care services, and increasing 
     budgetary constraints, the Department of Defense and the 
     Department of Veterans Affairs have embarked on a variety of 
     dynamic and innovative cooperative programs ranging from 
     shared services to joint venture operations of medical 
     facilities.
       (6) In 1984, there was a combined total of 102 Department 
     of Veterans Affairs and Department of Defense facilities with 
     sharing agreements. By 1997, that number had grown to 420. 
     During the six years from fiscal year 1992 through fiscal 
     year 1997, shared services increased from slightly over 3,000 
     services to more than 6,000 services, ranging from major 
     medical and surgical services, laundry, blood, and laboratory 
     services to unusual speciality care services.
       (7) The Department of Defense and the Department of 
     Veterans Affairs are conducting four health care joint 
     ventures in New Mexico, Nevada, Texas, and Oklahoma, and are 
     planning to conduct four more such ventures in Alaska, 
     Florida, Hawaii, and California.
       (b) Sense of Congress.--It is the sense of Congress that--
       (1) the Department of Defense and the Department of 
     Veterans Affairs should be commended for the cooperation 
     between the two departments in the delivery of medical care, 
     of which the cooperation involved in the establishment and 
     operation of the Department of Defense and the Department of 
     Veterans Affairs Executive Council is a praiseworthy example;
       (2) the Department of Defense and the Department of 
     Veterans Affairs are encouraged to continue to explore new 
     opportunities to enhance the availability and delivery of 
     medical care to beneficiaries by further enhancing the 
     cooperative efforts of the departments; and
       (3) enhanced cooperation between the Department of Defense 
     and the Department of Veterans Affairs is encouraged 
     regarding--
       (A) the general areas of access to quality medical care, 
     identification and elimination of impediments to enhanced 
     cooperation, and joint research and program development; and
       (B) the specific areas in which there is significant 
     potential to achieve progress in cooperation in a short term, 
     including computerization of patient records systems, 
     participation of the Department of Veterans Affairs in the 
     TRICARE program, pharmaceutical programs, and joint physical 
     examinations.
       (c) Joint Survey of Populations Served.--(1) The Secretary 
     of Defense and the Secretary of Veterans Affairs shall 
     jointly conduct a survey of their respective medical care 
     beneficiary populations to identify, by category of 
     beneficiary (defined as the Secretaries consider 
     appropriate), the expectations of, requirements for, and 
     behavior patterns of the beneficiaries with respect to 
     medical care. The two Secretaries shall develop the protocol 
     for the survey jointly, but shall obtain the services of an 
     entity independent of the Department of Defense and the 
     Department of Veterans Affairs to carry out the survey.
       (2) The survey shall include the following:
       (A) Demographic characteristics, economic characteristics, 
     and geographic location of beneficiary populations with 
     regard to catchment or service areas.
       (B) The types and frequency of care required by veterans, 
     retirees, and dependents within catchment or service areas of 
     Department of Defense and Department of Veterans Affairs 
     medical facilities and outside those areas.
       (C) The numbers of, characteristics of, and types of 
     medical care needed by the veterans, retirees, and dependents 
     who, though eligible for medical care in Department of 
     Defense or Department of Veterans Affairs treatment 
     facilities or through other federally funded medical 
     programs, choose not to seek medical care from those 
     facilities or under those programs, and the reasons for that 
     choice.
       (D) The obstacles or disincentives for seeking medical care 
     from such facilities or under such programs that are 
     perceived by veterans, retirees, and dependents.
       (E) Any other matters that the Secretary of Defense and the 
     Secretary of Veterans Affairs consider appropriate for the 
     survey.
       (3) The Secretary of Defense or the Secretary of Veterans 
     Affairs may waive the survey requirements under this 
     subsection with respect to information that can be better 
     obtained from a source other than the survey.
       (4) The Secretary of Defense and the Secretary of Veterans 
     Affairs shall submit a report on the results of the survey to 
     the appropriate committees of Congress. The report shall 
     contain the matters described in paragraph (2) and any 
     proposals for legislation that the Secretaries recommend for 
     enhancing Department of Defense and Department of Veterans 
     Affairs cooperative efforts with respect to the delivery of 
     medical care.
       (d) Review of Law and Policies.--(1) The Secretary of 
     Defense and the Secretary of Veterans Affairs shall jointly 
     conduct a review to identify impediments to cooperation 
     between the Department of Defense and the Department of 
     Veterans Affairs regarding the delivery of medical care. The 
     matters reviewed shall include the following:

[[Page H8143]]

       (A) All laws, policies, and regulations, and any attitudes 
     of beneficiaries of the health care systems of the two 
     departments, that have the effect of preventing the 
     establishment, or limiting the effectiveness, of cooperative 
     health care programs of the departments.
       (B) The requirements and practices involved in the 
     credentialling and licensure of health care providers.
       (C) The perceptions of beneficiaries in a variety of 
     categories (defined as the Secretaries consider appropriate) 
     regarding the various Federal health care systems available 
     for their use.
       (D) The types and frequency of medical services furnished 
     by the Department of Defense and the Department of Veterans 
     Affairs through cooperative arrangements to each category 
     of beneficiary (including active-duty members, retirees, 
     dependents, veterans in the health-care eligibility 
     categories referred to as Category A and Category C, and 
     persons authorized to receive medical care under section 
     1713 of title 38, United States Code) of the other 
     department.
       (E) The extent to which health care facilities of the 
     Department of Defense and Department of Veterans Affairs have 
     sufficient capacity, or could jointly or individually create 
     sufficient capacity, to provide services to beneficiaries of 
     the other department without diminution of access or services 
     to their primary beneficiaries.
       (F) The extent to which the recruitment of scarce medical 
     specialists and allied health personnel by the Department of 
     Defense and the Department of Veterans Affairs could be 
     enhanced through cooperative arrangements for providing 
     health care services.
       (G) The obstacles and disincentives to providing health 
     care services through cooperative arrangements between the 
     Department of Defense and the Department of Veterans Affairs.
       (2) The Secretaries shall jointly submit a report on the 
     results of the review to the appropriate committees of 
     Congress. The report shall include any proposals for 
     legislation that the Secretaries recommend for eliminating or 
     reducing impediments to interdepartmental cooperation that 
     are identified during the review.
       (e) Participation in TRICARE.--(1) The Secretary of Defense 
     shall review the TRICARE program to identify opportunities 
     for increased participation by the Department of Veterans 
     Affairs in that program. The ongoing collaboration between 
     Department of Defense officials and Department of Veterans 
     Affairs officials regarding increased participation shall be 
     included among the matters reviewed.
       (2) The Secretary of Defense and the Secretary of Veterans 
     Affairs shall jointly submit to the appropriate committees of 
     Congress a semiannual report on the status of the review 
     under this subsection and on efforts to increase the 
     participation of the Department of Veterans Affairs in the 
     TRICARE program. No report is required under this paragraph 
     after the submission of a semiannual report in which the 
     Secretaries declare that the Department of Veterans Affairs 
     is participating in the TRICARE program to the extent that 
     can reasonably be expected to be attained.
       (f) Pharmaceutical Benefits and Programs.--(1) The 
     Department of Defense-Department of Veterans Affairs Federal 
     Pharmacy Executive Steering Committee shall--
       (A) undertake a comprehensive examination of existing 
     pharmaceutical benefits and programs for beneficiaries of 
     Department of Defense medical care programs, including 
     matters relating to the purchasing, distribution, and 
     dispensing of pharmaceuticals and the management of mail 
     order pharmaceuticals programs; and
       (B) review the existing methods for contracting for and 
     distributing medical supplies and services.
       (2) The committee shall submit a report on the results of 
     the examination to the appropriate committees of Congress.
       (g) Standardization of Physical Examinations for 
     Disability.--The Secretary of Defense and the Secretary of 
     Veterans Affairs shall jointly submit to the appropriate 
     committees of Congress a report on the status of the efforts 
     of the Department of Defense and the Department of Veterans 
     Affairs to standardize physical examinations administered by 
     the two departments for the purpose of determining or rating 
     disabilities.
       (h) Appropriate Committees of Congress Defined.--For the 
     purposes of this section, the appropriate committees of 
     Congress are as follows:
       (1) The Committee on Armed Services and the Committee on 
     Veterans' Affairs of the Senate.
       (2) The Committee on National Security and the Committee on 
     Veterans' Affairs of the House of Representatives.
       (i) Deadlines for Submission of Reports.--(1) The report 
     required by subsection (c)(3) shall be submitted not later 
     than January 1, 2000.
       (2) The report required by subsection (d)(2) shall be 
     submitted not later than March 1, 1999.
       (3) The semiannual report required by subsection (e)(2) 
     shall be submitted not later than March 1 and September 1 of 
     each year.
       (4) The report on the examination required under subsection 
     (f) shall be submitted not later than 60 days after the 
     completion of the examination.
       (5) The report required by subsection (g) shall be 
     submitted not later than March 1, 1999.

     SEC. 746. REPORT ON RESEARCH AND SURVEILLANCE ACTIVITIES 
                   REGARDING LYME DISEASE AND OTHER TICK-BORNE 
                   DISEASES.

       Not later than April 1, 1999, the Secretary of Defense 
     shall submit to the Committee on National Security of the 
     House of Representatives and the Committee on Armed Services 
     of the Senate a report on the current and recommended levels 
     of research and surveillance activities regarding Lyme 
     disease and other tick-borne diseases among members of the 
     Armed Forces. The report shall include the following:
       (1) An analysis of the current and projected threat to the 
     operational readiness of the Armed Forces posed by Lyme 
     disease and other tick-borne diseases in the United States 
     and in overseas locations at which members of the Armed 
     Forces might be deployed.
       (2) A review of the current research efforts being 
     implemented to prevent the contraction of Lyme disease and 
     other tick-borne diseases by members of the Armed Forces, and 
     to enhance the early identification of such diseases once 
     they have been contracted.
       (3) An assessment of the adequacy of existing and projected 
     funding levels for research and surveillance activities 
     relating to Lyme disease and other tick-borne diseases among 
     members of the Armed Forces.
       (4) The recommended funding levels necessary to address the 
     threats posed to the operational readiness of the Armed 
     Forces by Lyme disease and other tick-borne diseases.

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

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

Sec. 801. Limitation on use of price preference upon achievement of 
              contract goal for small and disadvantaged businesses.
Sec. 802. Distribution of assistance under the Procurement Technical 
              Assistance Cooperative Agreement Program.
Sec. 803. Defense commercial pricing management improvement.
Sec. 804. Modification of senior executives covered by limitation on 
              allowability of compensation for certain contractor 
              personnel.
Sec. 805. Separate determinations of exceptional waivers of truth in 
              negotiation requirements for prime contracts and 
              subcontracts.
Sec. 806. Procurement of conventional ammunition.
Sec. 807. Para-aramid fibers and yarns.
Sec. 808. Clarification of responsibility for submission of information 
              on prices previously charged for property or services 
              offered.
Sec. 809. Amendments and study relating to procurement from firms in 
              industrial base for production of small arms.

                       Subtitle B--Other Matters

Sec. 811. Eligibility of involuntarily downgraded employee for 
              membership in an acquisition corps.
Sec. 812. Time for submission of annual report relating to Buy American 
              Act.
Sec. 813. Procurement of travel services for official and unofficial 
              travel under one contract.
Sec. 814. Department of Defense purchases through other agencies.
Sec. 815. Supervision of defense acquisition university structure by 
              Under Secretary of Defense for Acquisition and 
              Technology.
Sec. 816. Pilot programs for testing program manager performance of 
              product support oversight responsibilities for life cycle 
              of acquisition programs.
Sec. 817. Scope of protection of certain information from disclosure.
Sec. 818. Plan for rapid transition from completion of small business 
              innovation research into defense acquisition programs.
Sec. 819. Five-year authority for Secretary of the Navy to exchange 
              certain items.
Sec. 820. Permanent authority for use of major range and test facility 
              installations by commercial entities.
Sec. 821. Inventory exchange authorized for certain fuel delivery 
              contract.

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

     SEC. 801. LIMITATION ON USE OF PRICE PREFERENCE UPON 
                   ACHIEVEMENT OF CONTRACT GOAL FOR SMALL AND 
                   DISADVANTAGED BUSINESSES.

       Section 2323(e)(3) of title 10, United States Code, is 
     amended--
       (1) by inserting ``(A)'' after ``(3)'';
       (2) by inserting ``, except as provided in subparagraph 
     (B),'' after ``the head of an agency may'' in the first 
     sentence; and
       (3) by adding at the end the following:
       ``(B)(i) The Secretary of Defense may not exercise the 
     authority under subparagraph (A) to enter into a contract for 
     a price exceeding fair market cost if the regulations 
     implementing that authority are suspended under clause (ii) 
     with respect to that contract.
       ``(ii) At the beginning of each fiscal year, the Secretary 
     shall determine, on the basis of the most recent data, 
     whether the Department of Defense achieved the 5 percent goal 
     described in subsection (a) during the fiscal year to which 
     the data relates. Upon determining that the Department 
     achieved the goal for the fiscal year to which the data 
     relates, the Secretary shall issue a suspension, in writing, 
     of the regulations that implement the authority under 
     subparagraph (A). Such a suspension shall be in effect for 
     the one-year period beginning 30 days after the date on which 
     the suspension is issued and shall apply with respect to 
     contracts awarded pursuant to solicitations issued during 
     that period.
       ``(iii) For purposes of clause (ii), the term `most recent 
     data' means data relating to the most recent fiscal year for 
     which data are available.''.

[[Page H8144]]

     SEC. 802. DISTRIBUTION OF ASSISTANCE UNDER THE PROCUREMENT 
                   TECHNICAL ASSISTANCE COOPERATIVE AGREEMENT 
                   PROGRAM.

       (a) Correction of Description of Geographic Unit.--(1) 
     Section 2413(c) of title 10, United States Code, is amended 
     by striking out ``region'' and inserting in lieu thereof 
     ``district''.
       (2) Section 2415 of such title is amended--
       (A) by striking out ``region'' and inserting in lieu 
     thereof ``district'' each place it appears; and
       (B) by striking out ``regions'' and inserting in lieu 
     thereof ``districts''.
       (b) Technical Amendment.--Section 2415 of such title is 
     amended by striking out ``Defense Contract Administrative 
     Services'' and inserting in lieu thereof ``Department of 
     Defense contract administrative services''.

     SEC. 803. DEFENSE COMMERCIAL PRICING MANAGEMENT IMPROVEMENT.

       (a) Modification of Pricing Regulations for Certain 
     Commercial Items Exempt From Cost or Pricing Data 
     Certification Requirements.--(1) The Federal Acquisition 
     Regulation issued in accordance with sections 6 and 25 of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 405, 421) 
     shall be revised to clarify the procedures and methods to be 
     used for determining the reasonableness of prices of exempt 
     commercial items (as defined in subsection (d)).
       (2) The regulations shall, at a minimum, provide specific 
     guidance on--
       (A) the appropriate application and precedence of such 
     price analysis tools as catalog-based pricing, market-based 
     pricing, historical pricing, parametric pricing, and value 
     analysis;
       (B) the circumstances under which contracting officers 
     should require offerors of exempt commercial items to 
     provide--
       (i) information on prices at which the offeror has 
     previously sold the same or similar items; or
       (ii) other information other than certified cost or pricing 
     data;
       (C) the role and responsibility of Department of Defense 
     support organizations in procedures for determining price 
     reasonableness; and
       (D) the meaning and appropriate application of the term 
     ``purposes other than governmental purposes'' in section 
     4(12) of the Office of Federal Procurement Policy Act (41 
     U.S.C. 403(12)).
       (3) This subsection shall cease to be effective one year 
     after the date on which final regulations prescribed pursuant 
     to paragraph (1) take effect.
       (b) Unified Management of Procurement of Exempt Commercial 
     Items.--The Secretary of Defense shall develop and implement 
     procedures to ensure that, whenever appropriate, a single 
     item manager or contracting officer is responsible for 
     negotiating and entering into all contracts from a single 
     contractor for the procurement of exempt commercial items or 
     for the procurement of items in a category of exempt 
     commercial items.
       (c) Commercial Price Trend Analysis.--(1) The Secretary of 
     Defense shall develop and implement procedures that, to the 
     maximum extent that is practicable and consistent with the 
     efficient operation of the Department of Defense, provide for 
     the collection and analysis of information on price trends 
     for categories of exempt commercial items described in 
     paragraph (2).
       (2) A category of exempt commercial items referred to in 
     paragraph (1) consists of exempt commercial items--
       (A) that are in a single Federal Supply Group or Federal 
     Supply Class, are provided by a single contractor, or are 
     otherwise logically grouped for the purpose of analyzing 
     information on price trends; and
       (B) for which there is a potential for the price paid to be 
     significantly higher (on a percentage basis) than the prices 
     previously paid in procurements of the same or similar items 
     for the Department of Defense, as determined by the head of 
     the procuring Department of Defense agency or the 
     Secretary of the procuring military department on the 
     basis of criteria prescribed by the Secretary of Defense.
       (3) The head of a Department of Defense agency or the 
     Secretary of a military department shall take appropriate 
     action to address any unreasonable escalation in prices being 
     paid for items procured by that agency or military department 
     as identified in an analysis conducted pursuant to paragraph 
     (1).
       (4) Not later than April 1 of each of fiscal years 2000, 
     2001, and 2002, 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 analyses of price trends that were conducted for 
     categories of exempt commercial items during the preceding 
     fiscal year under the procedures prescribed pursuant to 
     paragraph (1). The report shall include a description of the 
     actions taken to identify and address any unreasonable price 
     escalation for the categories of items.
       (d) Exempt Commercial Items Defined.--For the purposes of 
     this section, the term ``exempt commercial item'' means a 
     commercial item that is exempt under subsection (b)(1)(B) of 
     section 2306a of title 10, United States Code, or subsection 
     (b)(1)(B) of section 304A of the Federal Property and 
     Administrative Services Act of 1949 (41 U.S.C. 254b), from 
     the requirements for submission of certified cost or pricing 
     data under that section.

     SEC. 804. MODIFICATION OF SENIOR EXECUTIVES COVERED BY 
                   LIMITATION ON ALLOWABILITY OF COMPENSATION FOR 
                   CERTAIN CONTRACTOR PERSONNEL.

       (a) Armed Services Acquisitions.--Section 2324(l)(5) of 
     title 10, United States Code, is amended to read as follows:
       ``(5) The term `senior executives', with respect to a 
     contractor, means the five most highly compensated employees 
     in management positions at each home office and each segment 
     of the contractor.''.
       (b) Civilian Agency Acquisitions.--Section 306(m)(2) of the 
     Federal Property and Administrative Services Act of 1949 (41 
     U.S.C. 256(m)(2)) is amended to read as follows:
       ``(2) The term `senior executives', with respect to a 
     contractor, means the five most highly compensated employees 
     in management positions at each home office and each segment 
     of the contractor.''.
       (c) Conforming Amendments.--(1) Section 39(c)(2) of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 
     435(c)(2)) is amended to read as follows:
       ``(2) The term `senior executives', with respect to a 
     contractor, means the five most highly compensated employees 
     in management positions at each home office and each segment 
     of the contractor.''.
       (2) Section 808(g)(2) of the National Defense Authorization 
     Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1838) 
     is amended by striking out ``senior executive'' and inserting 
     in lieu thereof ``senior executives''.
       (d) Effective Date.--The amendments made by this section 
     shall apply with respect to costs of compensation of senior 
     executives incurred after January 1, 1999, under covered 
     contracts (as defined 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)) entered 
     into before, on, or after the date of the enactment of this 
     Act.

     SEC. 805. SEPARATE DETERMINATIONS OF EXCEPTIONAL WAIVERS OF 
                   TRUTH IN NEGOTIATION REQUIREMENTS FOR PRIME 
                   CONTRACTS AND SUBCONTRACTS.

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

     SEC. 806. PROCUREMENT OF CONVENTIONAL AMMUNITION.

       (a) Authority.--The official in the Department of Defense 
     designated as the single manager for conventional ammunition 
     in the Department shall have the authority to restrict the 
     procurement of conventional ammunition to sources within the 
     national technology and industrial base in accordance with 
     the authority in section 2304(c) of title 10, United States 
     Code.
       (b) Requirement.--The official in the Department of Defense 
     designated as the single manager for conventional ammunition 
     in the Department of Defense shall limit a specific 
     procurement of ammunition to sources within the national 
     technology and industrial base in accordance with section 
     2304(c)(3) of title 10, United States Code, in any case in 
     which that manager determines that such limitation is 
     necessary to maintain a facility, producer, manufacturer, or 
     other supplier available for furnishing an essential item of 
     ammunition or ammunition component in cases of national 
     emergency or to achieve industrial mobilization.
       (c) Conventional Ammunition Defined.--For purposes of this 
     section, the term ``conventional ammunition'' has the meaning 
     given that term in Department of Defense Directive 5160.65, 
     dated March 8, 1995.

     SEC. 807. PARA-ARAMID FIBERS AND YARNS.

       (a) Authority.--The Secretary of Defense may procure 
     articles containing para-aramid fibers and yarns manufactured 
     in a foreign country referred to in subsection (d) if the 
     Secretary determines that--
       (1) procuring articles that contain only para-aramid fibers 
     and yarns manufactured from suppliers within the national 
     technology and industrial base would result in sole-source 
     contracts or subcontracts for the supply of such para-aramid 
     fibers and yarns; and
       (2) such sole-source contracts or subcontracts would not be 
     in the best interests of the Government or consistent with 
     the objectives of section 2304 of title 10, United States 
     Code.
       (b) Submission to Congress.--Not later than 30 days after 
     making a determination under subsection (a), the Secretary 
     shall submit to Congress a copy of the determination.
       (c) Applicability to Subcontracts.--The authority under 
     subsection (a) applies with respect to subcontracts under 
     Department of Defense contracts as well as to such contracts.
       (d) Foreign Countries Covered.--The authority under 
     subsection (a) applies with respect to a foreign country 
     that--
       (1) is a party to a defense memorandum of understanding 
     entered into under section 2531 of this title; and
       (2) permits United States firms that manufacture para-
     aramid fibers and yarns to compete with foreign firms for the 
     sale of para-aramid fibers and yarns in that country, as 
     determined by the Secretary of Defense.

[[Page H8145]]

       (e) Definition.--In this section, the term ``national 
     technology and industrial base'' has the meaning given that 
     term in section 2500 of title 10, United States Code.

     SEC. 808. CLARIFICATION OF RESPONSIBILITY FOR SUBMISSION OF 
                   INFORMATION ON PRICES PREVIOUSLY CHARGED FOR 
                   PROPERTY OR SERVICES OFFERED.

       (a) Armed Services Procurements.--Section 2306a(d)(1) of 
     title 10, United States Code, is amended by striking out 
     ``the data submitted shall'' in the second sentence and 
     inserting in lieu thereof the following: ``the contracting 
     officer shall require that the data submitted''.
       (b) Civilian Agency Procurements.--Section 304A(d)(1) of 
     the Federal Property and Administrative Services Act of 1949 
     (41 U.S.C. 254b(d)(1)), is amended by striking out ``the data 
     submitted shall'' in the second sentence and inserting in 
     lieu thereof the following: ``the contracting officer shall 
     require that the data submitted''.
       (c) Eligibility for Contracts and Subcontracts To Be 
     Conditioned on Compliance.--Not later than 180 days after the 
     date of the enactment of this Act, the Federal Acquisition 
     Regulation shall be amended to provide that an offeror's 
     compliance with a requirement to submit data for a contract 
     or subcontract in accordance with section 2306a(d)(1) of 
     title 10, United States Code, or section 304A(d)(1) of the 
     Federal Property and Administrative Services Act of 1949 
     shall be a condition for the offeror to be eligible to enter 
     into the contract or subcontract, subject to such exceptions 
     as the Federal Acquisition Regulatory Council determines 
     appropriate.
       (d) Criteria for Certain Determinations.--Not later than 
     180 days after the date of the enactment of this Act, the 
     Federal Acquisition Regulation shall be amended to include 
     criteria for contracting officers to apply for determining 
     the specific price information that an offeror should be 
     required to submit under section 2306a(d) of title 10, United 
     States Code, or section 304A(d) of the Federal Property and 
     Administrative Services Act of 1949 (41 U.S.C. 254b(d)).

     SEC. 809. AMENDMENTS AND STUDY RELATING TO PROCUREMENT FROM 
                   FIRMS IN INDUSTRIAL BASE FOR PRODUCTION OF 
                   SMALL ARMS.

       (a) Requirement To Limit Procurements to Certain Sources.--
     Subsection (a) of section 2473 of title 10, United States 
     Code, is amended--
       (1) in the heading, by striking out the first word and 
     inserting in lieu thereof ``Requirement'';
       (2) by striking out ``To the extent that the Secretary of 
     Defense determines necessary to preserve the small arms 
     production industrial base, the Secretary may'' and inserting 
     in lieu thereof ``In order to preserve the small arms 
     production industrial base, the Secretary of Defense shall''; 
     and
       (3) by inserting before the period at the end the 
     following: ``, unless the Secretary determines, with regard 
     to a particular procurement, that such requirement is not 
     necessary to preserve the small arms production industrial 
     base''.
       (b) Specification of Included Repair Parts.--Subsection (b) 
     of such section is amended in paragraph (1) by inserting 
     before the period the following: ``, including repair parts 
     consisting of barrels, receivers, and bolts''.
       (c) Applicability of Requirement.--Such section is further 
     amended--
       (1) in subsection (b), by striking out ``Subsection'' and 
     inserting in lieu thereof ``Subject to subsection (d), 
     subsection''; and
       (2) by adding at the end the following new subsection:
       ``(d) Applicability.--This section applies only to 
     procurements of covered property and services involving the 
     following small arms:
       ``(1) M16 series rifle.
       ``(2) MK19 grenade machine gun.
       ``(3) M4 series carbine.
       ``(4) M240 series machine gun.
       ``(5) M249 squad automatic weapon.''.
       (d) Submission of Certified Cost or Pricing Data.--Such 
     section is further amended by adding at the end the following 
     new subsection:
       ``(e) Submission of Certified Cost or Pricing Data.--If a 
     procurement under subsection (a) is a procurement of a 
     commercial item, the Secretary may, notwithstanding section 
     2306a(b)(1)(B) of this title, require the submission of 
     certified cost or pricing data under section 2306a(a) of this 
     title.''.
       (e) Study.--Not later than 60 days after the date of the 
     enactment of this Act, the Secretary of the Army shall 
     conduct a study, to be carried out by the Army Science Board, 
     to examine whether the requirements of section 2473 of title 
     10, United States Code, should be extended to small arms (as 
     specified in subsection (d) of such section) and the parts 
     manufactured under a contract with the Department of Defense 
     to produce such small arms.
       (f) Authority to Extend Requirements of Section 2473.--
     Based upon recommendations of the Army Science Board 
     resulting from the study conducted under subsection (e), the 
     Secretary of the Army may apply the requirements of section 
     2473 of title 10, United States Code, to the small arms and 
     parts referred to in subsection (e).

                       Subtitle B--Other Matters

     SEC. 811. ELIGIBILITY OF INVOLUNTARILY DOWNGRADED EMPLOYEE 
                   FOR MEMBERSHIP IN AN ACQUISITION CORPS.

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

     SEC. 812. TIME FOR SUBMISSION OF ANNUAL REPORT RELATING TO 
                   BUY AMERICAN ACT.

       Section 827 of the National Defense Authorization Act for 
     Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2611; 41 
     U.S.C. 10b-3) is amended by striking out ``90 days'' and 
     inserting in lieu thereof ``60 days''.

     SEC. 813. PROCUREMENT OF TRAVEL SERVICES FOR OFFICIAL AND 
                   UNOFFICIAL TRAVEL UNDER ONE CONTRACT.

       (a) Authority.--Chapter 157 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 2646. Travel services: procurement for official and 
       unofficial travel under one contract

       ``(a) Authority.--The head of an agency may enter into a 
     contract for travel-related services that provides for the 
     contractor to furnish services for both official travel and 
     unofficial travel.
       ``(b) Credits, Discounts, Commissions, Fees.--(1) A 
     contract entered into under this section may provide for 
     credits, discounts, or commissions or other fees to accrue to 
     the Department of Defense. The accrual and amounts of 
     credits, discounts, or commissions or other fees may be 
     determined on the basis of the volume (measured in the number 
     or total amount of transactions or otherwise) of the travel-
     related sales that are made by the contractor under the 
     contract.
       ``(2) The evaluation factors applicable to offers for a 
     contract under this section may include a factor that relates 
     to the estimated aggregate value of any credits, discounts, 
     commissions, or other fees that would accrue to the 
     Department of Defense for the travel-related sales made under 
     the contract.
       ``(3) Commissions or fees received by the Department of 
     Defense as a result of travel-related sales made under a 
     contract entered into under this section shall be distributed 
     as follows:
       ``(A) For amounts relating to sales for official travel, 
     credit to appropriations available for official travel for 
     the fiscal year in which the amounts were charged.
       ``(B) For amounts relating to sales for unofficial travel, 
     deposit in nonappropriated fund accounts available for 
     morale, welfare, and recreation programs.
       ``(c) Definitions.--In this section:
       ``(1) The term `head of an agency' has the meaning given 
     that term in section 2302(1) of this title.
       ``(2) The term `official travel' means travel at the 
     expense of the Federal Government.
       ``(3) The term `unofficial travel' means personal travel or 
     other travel that is not paid for or reimbursed by the 
     Federal Government out of appropriated funds.
       ``(d) Inapplicability to Coast Guard and NASA.--This 
     section does not apply to the Coast Guard when it is not 
     operating as a service in the Navy, nor to the National 
     Aeronautics and Space Administration.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:
``2646. Travel services: procurement for official and unofficial travel 
              under one contract.''.

     SEC. 814. DEPARTMENT OF DEFENSE PURCHASES THROUGH OTHER 
                   AGENCIES.

       (a) Extension of Regulations.--Not later than 90 days after 
     the date of the enactment of this Act, the Secretary of 
     Defense shall revise the regulations issued pursuant to 
     section 844 of the National Defense Authorization Act for 
     Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1720; 31 
     U.S.C. 1535 note) to--
       (1) cover any purchase described in subsection (b) that is 
     greater than the micro-purchase threshold; and
       (2) provide for a streamlined method of compliance for any 
     such purchase that is not greater than the simplified 
     acquisition threshold.
       (b) Description of Purchases.--A purchase referred to in 
     subsection (a) is a purchase of goods or services for one 
     agency of the Department of Defense by any other agency under 
     a task or delivery order contract entered into by the other 
     agency under section 2304a of title 10, United States Code, 
     or section 303H of the Federal Property and Administrative 
     Services Act of 1949 (41 U.S.C. 253h).
       (c) Definitions.--In this section:
       (1) The term ``micro-purchase threshold'' has the meaning 
     provided in section 32 of the Office of Federal Procurement 
     Policy Act (41 U.S.C. 428).
       (2) The term ``simplified acquisition threshold'' has the 
     meaning provided in section 4 of such Act (41 U.S.C. 403).
       (d) Termination.--This section shall cease to be effective 
     one year after the date on which final regulations prescribed 
     pursuant to subsection (a) take effect.

     SEC. 815. SUPERVISION OF DEFENSE ACQUISITION UNIVERSITY 
                   STRUCTURE BY UNDER SECRETARY OF DEFENSE FOR 
                   ACQUISITION AND TECHNOLOGY.

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

[[Page H8146]]

     SEC. 816. PILOT PROGRAMS FOR TESTING PROGRAM MANAGER 
                   PERFORMANCE OF PRODUCT SUPPORT OVERSIGHT 
                   RESPONSIBILITIES FOR LIFE CYCLE OF ACQUISITION 
                   PROGRAMS.

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

     SEC. 817. SCOPE OF PROTECTION OF CERTAIN INFORMATION FROM 
                   DISCLOSURE.

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

     SEC. 818. PLAN FOR RAPID TRANSITION FROM COMPLETION OF SMALL 
                   BUSINESS INNOVATION RESEARCH INTO DEFENSE 
                   ACQUISITION PROGRAMS.

       (a) Plan Required.--(1) Not later than February 1, 1999, 
     the Secretary of Defense, in consultation with the 
     Administrator of the Small Business Administration, shall 
     develop a plan for facilitating the rapid transition into 
     Department of Defense acquisition programs of successful 
     first phase and second phase activities under the Small 
     Business Innovation Research program under section 9 of the 
     Small Business Act (15 U.S.C. 638).
       (2) The Secretary shall submit the plan developed under 
     paragraph (1) to--
       (A) the Committee on Armed Services and the Committee on 
     Small Business of the Senate; and
       (B) the Committee on National Security and the Committee on 
     Small Business of the House of Representatives.
       (b) Conditions.--The plan developed under subsection (a) 
     shall--
       (1) be consistent with the Small Business Innovation 
     Research program and with the provisions of division D of the 
     Clinger-Cohen Act of 1996 (division D of Public Law 104-106; 
     110 Stat. 642) and the Federal Acquisition Streamlining Act 
     of 1994 (Public Law 103-355; 108 Stat. 3243) that are 
     applicable to the Department of Defense; and
       (2) provide for favorable consideration, in the acquisition 
     planning process, for funding projects under the Small 
     Business Innovation Research program that have successfully 
     completed the second phase or are subject to a third phase 
     agreement entered into pursuant to section 9(r) of the Small 
     Business Act (15 U.S.C. 638(r)).

     SEC. 819. FIVE-YEAR AUTHORITY FOR SECRETARY OF THE NAVY TO 
                   EXCHANGE CERTAIN ITEMS.

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

     SEC. 820. PERMANENT AUTHORITY FOR USE OF MAJOR RANGE AND TEST 
                   FACILITY INSTALLATIONS BY COMMERCIAL ENTITIES.

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

     SEC. 821. INVENTORY EXCHANGE AUTHORIZED FOR CERTAIN FUEL 
                   DELIVERY CONTRACT.

       (a) Exchange of Barrels Authorized.--(1) The Secretary of 
     Defense shall provide, under a contract described in 
     subsection (f), that the contract may be performed, during 
     the period described in paragraph (2), by means of delivery 
     of fuel obtained by the refiner concerned in an inventory 
     exchange of barrels of fuel, in any case in which--
       (A) the refiner is unable to physically deliver fuel in 
     compliance with the contract requirements because of ice 
     conditions in Cook Inlet, as determined by the Coast Guard; 
     and
       (B) the Secretary determines that such inability will 
     result in an inequity to the refiner.
       (2) The period referred to in paragraph (1) is the period 
     beginning on the date of the enactment of this Act and ending 
     on February 28, 1999.
       (b) Limitation.--The number of barrels of fuel exchanged 
     pursuant to a contract described in subsection (f) may 
     contain up to 15 percent of the total quantity of fuel 
     required to be delivered under the contract.
       (c) Effect on Status as Small Disadvantaged Business.--
     Nothing in this section, and no action taken pursuant to this 
     section, may be construed as affecting the status of the 
     refiner as a small disadvantaged business.
       (d) Effect on Contractual Obligations.--Nothing in this 
     section may be construed as affecting the requirement of a 
     refiner to fulfill its contractual obligations under a 
     contract described in subsection (e), other than as provided 
     under subsection (b).
       (e) Small Disadvantaged Business Defined.--For the purposes 
     of this section, the term `small disadvantaged business' 
     means a socially and economically disadvantaged small 
     business concern, a small business concern owned and 
     controlled by socially and economically disadvantaged 
     individuals, and a qualified HUBZone small business concern, 
     as those terms are defined in sections 8(a)(4)(A), 
     8(d)(3)(C), and 3(p) of the Small Business Act (15 U.S.C. 
     637(a)(4)(A)), 637(d)(3)(C), and 632(p)), respectively.
       (f) Applicability.--This section applies to any contract 
     between the Defense Energy Supply Center of the Department of 
     Defense and a refiner that qualifies as a small disadvantaged 
     business for the delivery of fuel by barge to Defense Energy 
     Supply Point-Anchorage.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

      Subtitle A--Department of Defense Officers and Organization

Sec. 901. Reduction in number of Assistant Secretary of Defense 
              positions.
Sec. 902. Repeal of statutory requirement for position of Assistant 
              Secretary of Defense for Command, Control, 
              Communications, and Intelligence.
Sec. 903. Independent task force on transformation and Department of 
              Defense organization.
Sec. 904. Authority to expand the National Defense University.
Sec. 905. Center for Hemispheric Defense Studies.
Sec. 906. Restructuring of administration of Fisher Houses.
Sec. 907. Management reform for research, development, test, and 
              evaluation activities.

         Subtitle B--Department of Defense Financial Management

Sec. 911. Improved accounting for defense contract services.
Sec. 912. Report on Department of Defense financial management 
              improvement plan.
Sec. 913. Study of feasibility of performance of Department of Defense 
              finance and accounting functions by private sector 
              sources or other Federal sources.
Sec. 914. Limitation on reorganization and consolidation of operating 
              locations of the Defense Finance and Accounting Service.
Sec. 915. Annual report on resources allocated to support and mission 
              activities.

             Subtitle C--Joint Warfighting Experimentation

Sec. 921. Findings concerning joint warfighting experimentation.
Sec. 922. Sense of Congress concerning joint warfighting 
              experimentation.
Sec. 923. Reports on joint warfighting experimentation.

                       Subtitle D--Other Matters

Sec. 931. Further reductions in defense acquisition and support 
              workforce.
Sec. 932. Limitation on operation and support funds for the Office of 
              the Secretary of Defense.
Sec. 933. Clarification and simplification of responsibilities of 
              Inspectors General regarding whistleblower protections.
Sec. 934. Repeal of requirement relating to assignment of tactical 
              airlift mission to Reserve components.
Sec. 935. Consultation with Marine Corps on major decisions directly 
              concerning Marine Corps aviation.

      Subtitle A--Department of Defense Officers and Organization

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

       (a) Reduction to Nine Positions.--Section 138(a) of title 
     10, United States Code, is amended by striking out ``ten'' 
     and insert in lieu thereof ``nine''.
       (b) Conforming Amendment.--Section 5315 of title 5, United 
     States Code, is amended by striking out ``(10)'' after 
     `Assistant Secretaries of Defense'' and inserting in lieu 
     thereof ``(9)''.

     SEC. 902. REPEAL OF STATUTORY REQUIREMENT FOR POSITION OF 
                   ASSISTANT SECRETARY OF DEFENSE FOR COMMAND, 
                   CONTROL, COMMUNICATIONS, AND INTELLIGENCE.

        Section 138(b) of title 10, United States Code is amended 
     by striking out paragraph (3).

[[Page H8147]]

     SEC. 903. INDEPENDENT TASK FORCE ON TRANSFORMATION AND 
                   DEPARTMENT OF DEFENSE ORGANIZATION.

       (a) Findings.--Congress finds the following:
       (1) The post-Cold War era is marked by geopolitical 
     uncertainty and by accelerating technological change, 
     particularly with regard to information technologies.
       (2) The combination of that geopolitical uncertainty and 
     accelerating technological change portends a transformation 
     in the conduct of war, particularly in ways that are likely 
     to increase the effectiveness of joint operations.
       (3) The Department of Defense must be organized 
     appropriately in order to fully exploit the opportunities 
     offered by, and to meet the challenges posed by, this 
     anticipated transformation in the conduct of war.
       (4) The basic organization of the Department of Defense was 
     established by the National Security Act of 1947 and the 1949 
     amendments to that Act.
       (5) The Goldwater-Nichols Department of Defense 
     Reorganization Act of 1986 (Public Law 99-433) dramatically 
     improved the capability of the Department of Defense to carry 
     out operations involving joint forces, but did not 
     specifically address issues pertaining to the development 
     of joint operations.
       (6) In the future, the ability to achieve improved 
     operations of joint forces, particularly under rapidly 
     changing technological conditions, will depend on improved 
     force development for joint operations.
       (b) Independent Task Force on Transformation and Department 
     of Defense Organization.--The Secretary of Defense shall 
     establish a task force of the Defense Science Board to 
     examine the current organization of the Department of Defense 
     with regard to the appropriateness of that organization for 
     preparing for a transformation in the conduct of war. The 
     task force shall be established not later than November 1, 
     1998.
       (c) Duties of the Task Force.--The task force shall assess, 
     and shall make recommendations for the appropriate 
     organization of, the Office of the Secretary of Defense, the 
     Joint Chiefs of Staff, the individual Armed Forces, and the 
     executive parts of the military departments for the purpose 
     of preparing the Department of Defense for a transformation 
     in the conduct of war. In making those assessments and 
     developing those recommendations, the task force shall review 
     the following:
       (1) The general organization of the Department of Defense, 
     including whether responsibility and authority for issues 
     relating to a transformation in the conduct of war are 
     appropriately allocated, especially among the Office of the 
     Secretary of Defense, the Joint Chiefs of Staff, and the 
     individual Armed Forces.
       (2) The joint requirements process and the requirements 
     processes for each of the Armed Forces, including the 
     establishment of measures of effectiveness and methods for 
     resource allocation.
       (3) The process and organizations responsible for doctrinal 
     development, including the appropriate relationship between 
     joint force and service doctrine and doctrinal development 
     organizations.
       (4) The current programs and organizations under the Office 
     of the Secretary of Defense, the Joint Chiefs of Staff and 
     the Armed Forces devoted to innovation and experimentation 
     related to a transformation in the conduct of war, including 
     the appropriateness of--
       (A) conducting joint field tests;
       (B) establishing a separate unified command as a joint 
     forces command to serve, as its sole function, as the 
     trainer, provider, and developer of forces for joint 
     operations and for conducting joint warfighting 
     experimentation;
       (C) establishing a separate Joint Concept Development 
     Center to monitor exercises and develop measures of 
     effectiveness, analytical concepts, models, and simulations 
     appropriate for understanding the transformation in the 
     conduct of war;
       (D) establishing a Joint Battle Laboratory to conduct joint 
     experimentation and to integrate the similar efforts of the 
     Armed Forces; and
       (E) establishing an Assistant Secretary of Defense 
     responsible for transformation in the conduct of war.
       (5) Joint training establishments and training 
     establishments of the Armed Forces, including those devoted 
     to professional military education, and the appropriateness 
     of establishing national training centers.
       (6) Other issues relating to a transformation in the 
     conduct of war that the Secretary considers appropriate.
       (d) Report.--The task force shall submit to the Secretary 
     of Defense a report containing its assessments and 
     recommendations not later than February 1, 1999. The 
     Secretary shall submit the report to the Committee on 
     National Security of the House of Representatives and the 
     Committee on Armed Services of the Senate not later than 
     March 1, 1999, together with the recommendations and comments 
     of the Secretary of Defense.

     SEC. 904. AUTHORITY TO EXPAND THE NATIONAL DEFENSE 
                   UNIVERSITY.

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

     SEC. 905. CENTER FOR HEMISPHERIC DEFENSE STUDIES.

       (a) Funding for Center.--Section 2165 of title 10, United 
     States Code, is amended by adding at the end the following 
     new subsection:
       ``(c) Source of Funds for Center for Hemispheric Defense 
     Studies.--Funds available for the payment of personnel 
     expenses under the Latin American cooperation authority set 
     forth in section 1050 of this title are also available for 
     the costs of the operation of the Center for Hemispheric 
     Defense Studies.''.
       (b) Conforming Amendment.--Section 1050 of such title is 
     amended by inserting ``Secretary of Defense or the'' before 
     ``Secretary of a military department''.

     SEC. 906. RESTRUCTURING OF ADMINISTRATION OF FISHER HOUSES.

       (a) Administration as Nonappropriated Fund 
     Instrumentality.--(1) Chapter 147 of title 10, United States 
     Code, is amended by inserting after section 2492 (as added by 
     section 365) the following new section:

     ``Sec. 2493. Fisher Houses: administration as nonappropriated 
       fund instrumentality

       ``(a) Fisher Houses and Suites Defined.--In this section:
       ``(1) The term `Fisher House' means a housing facility 
     that--
       ``(A) is located in proximity to a health care facility of 
     the Army, the Air Force, or the Navy;
       ``(B) is available for residential use on a temporary basis 
     by patients of that health care facility, members of the 
     families of such patients, and others providing the 
     equivalent of familial support for such patients; and
       ``(C) is constructed and donated by--
       ``(i) the Zachary and Elizabeth M. Fisher Armed Services 
     Foundation; or
       ``(ii) another source, if the Secretary of the military 
     department concerned designates the housing facility as a 
     Fisher House.
       ``(2) The term `Fisher Suite' means one or more rooms 
     that--
       ``(A) meet the requirements of subparagraphs (A) and (B) of 
     paragraph (1);
       ``(B) are constructed, altered, or repaired and donated by 
     a source described in subparagraph (C) of that paragraph; and
       ``(C) are designated by the Secretary of the military 
     department concerned as a Fisher Suite.
       ``(b) Nonappropriated Fund Instrumentality.--The Secretary 
     of each military department shall administer all Fisher 
     Houses and Fisher Suites associated with health care 
     facilities of that military department as a nonappropriated 
     fund instrumentality of the United States.
       ``(c) Governance.--The Secretary of each military 
     department shall establish a system for the governance of the 
     nonappropriated fund instrumentality required by subsection 
     (b) for that military department.
       ``(d) Central Fund.--The Secretary of each military 
     department shall establish a single fund as the source of 
     funding for the operation, maintenance, and improvement of 
     all Fisher Houses and Fisher Suites of the nonappropriated 
     fund instrumentality required by subsection (b) for that 
     military department.
       ``(e) Acceptance of Contributions; Imposition of Fees.--(1) 
     The Secretary of a military department may--
       ``(A) accept money, property, and services donated for the 
     support of a Fisher House or Fisher Suite associated with 
     health care facilities of that military department; and
       ``(B) may impose fees relating to the use of such Fisher 
     Houses and Fisher Suites.
       ``(2) All monetary donations, and the proceeds of the 
     disposal of any other donated property, accepted by the 
     Secretary of a military department under this subsection 
     shall be credited to the fund established under subsection 
     (d) for the Fisher Houses and Fisher Suites associated with 
     health care facilities of that military department and shall 
     be available to that Secretary to support all such Fisher 
     Houses and Fisher Suites.
       ``(f) Annual Report.--Not later than January 15 of each 
     year, the Secretary of each military department shall submit 
     to Congress a report describing the operation of Fisher 
     Houses and Fisher Suites associated with health care 
     facilities of that military department. The report shall 
     include, at a minimum, the following:
       ``(1) The amount in the fund established by that Secretary 
     under subsection (d) as of October 1 of the previous year.
       ``(2) The operation of the fund during the preceding fiscal 
     year, including--
       ``(A) all gifts, fees, and interest credited to the fund; 
     and
       ``(B) all disbursements from the fund.
       ``(3) The budget for the operation of the Fisher Houses and 
     Fisher Suites for the fiscal year in which the report is 
     submitted.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     2492 (as added by section 365) the following new item:
``2493. Fisher Houses: administration as nonappropriated fund 
              instrumentality.''.
       (b) Establishment of Funds.--Not later than 90 days after 
     the date of the enactment of this Act, the Secretary of each 
     military department shall--
       (1) establish the fund required under section 2493(d) of 
     title 10, United States Code (as added by subsection (a)); 
     and
       (2) close the Fisher House Trust Fund established for that 
     department under section 2221 of such title and transfer the 
     amounts in the closed fund to the newly established fund.
       (c) Funding Transition.--(1) Of the amount authorized to be 
     appropriated pursuant to section 301(2) for operation and 
     maintenance for the Navy, the Secretary of the Navy shall 
     transfer to the fund established by that Secretary under 
     section 2493(d) of title 10, United States Code (as added by 
     subsection (a)), such amount as that Secretary considers 
     appropriate for establishing in the fund a corpus sufficient 
     for operating Fisher Houses and Fisher Suites associated with 
     health care facilities of the Department of the Navy.
       (2) Of the amount authorized to be appropriated pursuant to 
     section 301(4) for operation and maintenance for the Air 
     Force, the Secretary of the Air Force shall transfer to the 
     fund established by that Secretary under section 2493(d) of 
     title 10, United States Code (as added

[[Page H8148]]

     by subsection (a)), such amount as that Secretary considers 
     appropriate for establishing in the fund a corpus sufficient 
     for operating Fisher Houses and Fisher Suites associated with 
     health care facilities of the Department of the Air Force.
       (d) Reporting Requirements.--The Secretary of each military 
     department, upon completing the actions required of the 
     Secretary under subsections (b) and (c), shall submit to 
     Congress a report containing--
       (1) the certification of that Secretary that those actions 
     have been completed; and
       (2) a statement of the amount deposited in the fund 
     established by that Secretary under section 2493(d) of title 
     10, United States Code (as added by subsection (a)).
       (e) Availability of Transferred Amounts.--Amounts 
     transferred under subsection (b) or (c) to a fund established 
     under section 2493(d) of title 10, United States Code (as 
     added by subsection (a)), shall be available without 
     fiscal year limitation for the purposes for which the fund 
     is established and shall be administered as 
     nonappropriated funds.
       (f) Conforming Repeals.--(1) Section 2221 of title 10, 
     United States Code, and the item relating to that section in 
     the table of sections at the beginning of chapter 131 of such 
     title, are repealed.
       (2) Section 1321(a) of title 31, United States Code, is 
     amended by striking out paragraphs (92), (93), and (94).
       (3) The amendments made by this subsection shall take 
     effect 90 days after the date of the enactment of this Act.

     SEC. 907. MANAGEMENT REFORM FOR RESEARCH, DEVELOPMENT, TEST, 
                   AND EVALUATION ACTIVITIES.

       (a) Analysis and Plan for Reform of Management of RDTE 
     Activities.--(1) The Secretary of Defense, acting through the 
     Under Secretary of Defense for Acquisition and Technology, 
     shall analyze the structures and processes of the Department 
     of Defense for management of its laboratories and test and 
     evaluation centers. Taking into consideration the results of 
     that analysis, the Secretary shall develop a plan for 
     improving the management of those laboratories and centers. 
     The plan shall include such reorganizations and reforms as 
     the Secretary considers appropriate.
       (2) The analysis under paragraph (1) shall include an 
     analysis of each of the following with respect to Department 
     of Defense laboratories and test and evaluation centers:
       (A) Opportunities to improve efficiency and reduce 
     duplication of efforts by those laboratories and centers by 
     designating a lead agency or executive agent by area or 
     function or other methods of streamlining management.
       (B) Reform of the management processes of those 
     laboratories and centers that would reduce costs and increase 
     efficiency in the conduct of research, development, test, and 
     evaluation activities.
       (C) Opportunities for those laboratories and centers to 
     enter into partnership arrangements with laboratories in 
     industry, academia, and other Federal agencies that 
     demonstrate leadership, initiative, and innovation in 
     research, development, test, and evaluation activities.
       (D) The extent to which there is disseminated within those 
     laboratories and centers information regarding initiatives 
     that have successfully improved efficiency through reform of 
     management processes and other means.
       (E) Any cost savings that can be derived directly from 
     reorganization of management structures of those laboratories 
     and centers.
       (F) Options for reinvesting any such cost savings in those 
     laboratories and centers.
       (3) The Secretary shall submit the plan required under 
     paragraph (1) to the congressional defense committees not 
     later than 180 days after the date of the enactment of this 
     Act.
       (b) Cost-Based Management Information System.--(1) The 
     Secretary of Defense shall develop a plan, including a 
     schedule, for establishing a cost-based management 
     information system for Department of Defense laboratories and 
     test and evaluation centers. The system shall provide for 
     accurately identifying and comparing the costs of operating 
     each laboratory and each center.
       (2) In preparing the plan, the Secretary shall assess the 
     feasibility and desirability of establishing a common 
     methodology for assessing costs. The Secretary shall consider 
     the use of a revolving fund as one potential methodology.
       (3) The Secretary shall submit the plan required under 
     paragraph (1) to the congressional defense committees not 
     later than 90 days after the date of the enactment of this 
     Act.

         Subtitle B--Department of Defense Financial Management

     SEC. 911. IMPROVED ACCOUNTING FOR DEFENSE CONTRACT SERVICES.

       (a) In General.--(1) Chapter 131 of title 10, United States 
     Code, is amended by inserting after section 2211 the 
     following new section:

     ``Sec. 2212. Obligations for contract services: reporting in 
       budget object classes

       ``(a) Limitation on Reporting in Miscellaneous Services 
     Object Class.--The Secretary of Defense shall ensure that, in 
     reporting to the Office of Management and Budget (pursuant to 
     OMB Circular A-11 (relating to preparation and submission of 
     budget estimates)) obligations of the Department of Defense 
     for any period of time for contract services, no more than 15 
     percent of the total amount of obligations so reported is 
     reported in the miscellaneous services object class.
       ``(b) Definition of Reporting Categories for Advisory and 
     Assistance Services.--In carrying out section 1105(g) of 
     title 31 for the Department of Defense (and in determining 
     what services are to be reported to the Office of Management 
     and Budget in the advisory and assistance services object 
     class), the Secretary of Defense shall apply to the terms 
     used for the definition of `advisory and assistance services' 
     in paragraph (2)(A) of that section the following meanings 
     (subject to the authorized exemptions):
       ``(1) Management and professional support services.--The 
     term `management and professional support services' (used in 
     clause (i) of section 1105(g)(2)(A) of title 31) means 
     services that provide engineering or technical support, 
     assistance, advice, or training for the efficient and 
     effective management and operation of organizations, 
     activities, or systems. Those services--
       ``(A) are closely related to the basic responsibilities and 
     mission of the using organization; and
       ``(B) include efforts that support or contribute to 
     improved organization or program management, logistics 
     management, project monitoring and reporting, data 
     collection, budgeting, accounting, auditing, and 
     administrative or technical support for conferences and 
     training programs.
       ``(2) Studies, analyses, and evaluations.--The term 
     `studies, analyses, and evaluations' (used in clause (ii) of 
     section 1105(g)(2)(A) of title 31) means services that 
     provide organized, analytic assessments to understand or 
     evaluate complex issues to improve policy development, 
     decisionmaking, management, or administration and that result 
     in documents containing data or leading to conclusions or 
     recommendations. Those services may include databases, 
     models, methodologies, and related software created in 
     support of a study, analysis, or evaluation.
       ``(3) Engineering and technical services.--The term 
     `engineering and technical services' (used in clause (iii) of 
     section 1105(g)(2)(A) of title 31) means services that take 
     the form of advice, assistance, training, or hands-on 
     training necessary to maintain and operate fielded weapon 
     systems, equipment, and components (including software when 
     applicable) at design or required levels of effectiveness.
       ``(c) Proper Classification of Advisory and Assistance 
     Services.--Before the submission to the Office of Management 
     and Budget of the proposed Department of Defense budget for 
     inclusion in the President's budget for a fiscal year 
     pursuant to section 1105 of title 31, the Secretary of 
     Defense, acting through the Under Secretary of Defense 
     (Comptroller), shall conduct a review of Department of 
     Defense services expected to be performed as contract 
     services during the fiscal year for which that budget is to 
     be submitted in order to ensure that those services that are 
     advisory and assistance services (as defined in accordance 
     with subsection (b)) are in fact properly classified, in 
     accordance with that subsection, in the advisory and 
     assistance services object class.
       ``(d) Report to Congress.--The Secretary shall submit to 
     Congress each year, not later than 30 days after the date on 
     which the budget for the next fiscal year is submitted 
     pursuant to section 1105 of title 31, a report containing the 
     information derived from the review under subsection (c).
       ``(e) Assessment by Comptroller General.--(1) The 
     Comptroller General shall conduct a review of the report of 
     the Secretary of Defense under subsection (d) each year and 
     shall--
       ``(A) assess the methodology used by the Secretary in 
     obtaining the information submitted to Congress in that 
     report; and
       ``(B) assess the information submitted to Congress in that 
     report.
       ``(2) Not later than 120 days after the date on which the 
     Secretary submits to Congress the report required under 
     subsection (d) for any year, the Comptroller General shall 
     submit to Congress the Comptroller General's report 
     containing the results of the review for that year under 
     paragraph (1).
       ``(f) Definitions.--In this section:
       ``(1) The term `contract services' means all services that 
     are reported to the Office of Management and Budget pursuant 
     to OMB Circular A-11 (relating to preparation and submission 
     of budget estimates) in budget object classes that are 
     designated in the Object Class 25 series.
       ``(2) The term `advisory and assistance services object 
     class' means those contract services constituting the budget 
     object class that is denominated `Advisory and Assistance 
     Service and designated (as the date of the enactment of this 
     section) as Object Class 25.1 (or any similar object class 
     established after the date of the enactment of this section 
     for the reporting of obligations for advisory and assistance 
     contract services).
       ``(3) The term `miscellaneous services object class' means 
     those contract services constituting the budget object class 
     that is denominated `Other Services (services not otherwise 
     specified in the 25 series)' and designated (as the date of 
     the enactment of this section) as Object Class 25.2 (or any 
     similar object class established after the date of the 
     enactment of this section for the reporting of obligations 
     for miscellaneous or unspecified contract services).
       ``(4) The term `authorized exemptions' means those 
     exemptions authorized (as of the date of the enactment of 
     this section) under Department of Defense Directive 4205.2, 
     captioned `Acquiring and Managing Contracted Advisory and 
     Assistance Services (CAAS)' and issued by the Under Secretary 
     of Defense for Acquisition and Technology on February 10, 
     1992, such exemptions being set forth in Enclosure 3 to that 
     directive (captioned `CAAS Exemptions').''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     2211 the following new item:
``2212. Obligations for contract services: reporting in budget object 
              classes.''.
       (b) Transition.--For the budget for fiscal year 2000, and 
     the reporting of information to the Office of Management and 
     Budget in connection with the preparation of that budget,

[[Page H8149]]

     section 2212 of title 10, United States Code, as added by 
     subsection (a), shall be applied by substituting ``30 
     percent'' in subsection (a) for ``15 percent''.
       (c) Initial Classification of Advisory and Assistance 
     Services.--Not later than February 1, 1999, the Secretary of 
     Defense, acting through the Under Secretary of Defense 
     (Comptroller), shall conduct a review of Department of 
     Defense services performed or expected to be performed as 
     contract services during fiscal year 1999 in order to ensure 
     that those services that are advisory and assistance services 
     (as defined in accordance with subsection (b) of section 2212 
     of title 10, United States Code, as added by subsection (a)) 
     are in fact properly classified, in accordance with that 
     subsection, in the advisory and assistance services object 
     class (as defined in subsection (f)(2) of that section).
       (d) Fiscal Year 1999 Reduction.--The total amount that may 
     be obligated by the Secretary of Defense for contracted 
     advisory and assistance services from amounts appropriated 
     for fiscal year 1999 is the amount programmed for those 
     services resulting from the review referred to in subsection 
     (c) reduced by $240,000,000.

     SEC. 912. REPORT ON DEPARTMENT OF DEFENSE FINANCIAL 
                   MANAGEMENT IMPROVEMENT PLAN.

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

     SEC. 913. STUDY OF FEASIBILITY OF PERFORMANCE OF DEPARTMENT 
                   OF DEFENSE FINANCE AND ACCOUNTING FUNCTIONS BY 
                   PRIVATE SECTOR SOURCES OR OTHER FEDERAL 
                   SOURCES.

       (a) Study Required.--(1) The Secretary of Defense shall 
     carry out a study of the feasibility and advisability of 
     selecting on a competitive basis the source or sources for 
     performing the finance and accounting functions of the 
     Department of Defense from among the Defense Finance and 
     Accounting Service of the Department of Defense and non-DFAS 
     sources.
       (2) For the purposes of this section, the term ``non-DFAS 
     sources'' means--
       (A) the military departments;
       (B) Federal agencies outside the Department of Defense; and
       (C) private sector sources.
       (b) Report.--Not later than October 1, 1999, the Secretary 
     shall submit to Congress a report in writing on the results 
     of the study. The report shall include the following:
       (1) A discussion of how the finance and accounting 
     functions of the Department of Defense are performed, 
     including the necessary operations, the operations actually 
     performed, the personnel required for the operations, and the 
     core competencies that are necessary for the performance of 
     those functions.
       (2) A comparison of the performance of the finance and 
     accounting functions by the Defense Finance and Accounting 
     Service with the performance of finance and accounting 
     functions by non-DFAS sources that exemplify the best finance 
     and accounting practices and results, together with a 
     comparison of the costs of the performance of those functions 
     by the Defense Finance and Accounting Service and the 
     estimated costs of the performance of those functions by non-
     DFAS sources.
       (3) The finance and accounting functions, if any, that are 
     appropriate for performance by non-DFAS sources, together 
     with a concept of operations that--
       (A) specifies the mission;
       (B) identifies the finance and accounting operations to be 
     performed;
       (C) describes the work force that is necessary to perform 
     those operations;
       (D) discusses where the operations are to be performed;
       (E) describes how the operations are to be performed; and
       (F) discusses the relationship between how the operations 
     are to be performed and the mission.
       (4) An analysis of how Department of Defense programs or 
     processes would be affected by the performance of the finance 
     and accounting functions of the Department of Defense by one 
     or more non-DFAS source.
       (5) The status of the efforts within the Department of 
     Defense to consolidate and eliminate redundant finance and 
     accounting systems and to better integrate the automated and 
     manual systems of the department that provide input to 
     financial management or accounting systems of the department.
       (6) A description of a feasible and effective process for 
     selecting, on a competitive basis, sources to perform the 
     finance and accounting functions of the Department of Defense 
     from among the Defense Finance and Accounting Service and 
     non-DFAS sources, including a discussion of the selection 
     criteria the Secretary considers appropriate.
       (7) An analysis of the costs and benefits of the various 
     policies and actions recommended.
       (8) A discussion of any findings, analyses, and 
     recommendations on the performance of the finance and 
     accounting functions of the Department of Defense that have 
     been made by the Task Force on Defense Reform appointed by 
     the Secretary of Defense on May 14, 1997.
       (9) Any additional information and recommendations the 
     Secretary considers appropriate.
       (c) Market Research.--In carrying out the study, the 
     Secretary shall conduct market research to determine whether 
     or not an efficient and competitive domestic market for 
     finance and accounting services exists. In conducting that 
     research, the Secretary shall consider whether the domestic 
     market for finance and accounting services could be 
     reasonably expected to generate responsive private sector 
     competitors for the provision of the finance and accounting 
     services, or a portion of such services, of the Department of 
     Defense and whether there are any substantial barriers to 
     entry or expansion in that market. In conducting such 
     research, the Secretary shall consider not only the current 
     state of the domestic market for finance and accounting 
     services, but also the potential effects that the entry of 
     the Department of Defense as a large, long-term consumer of 
     such services might have on that market.

     SEC. 914. LIMITATION ON REORGANIZATION AND CONSOLIDATION OF 
                   OPERATING LOCATIONS OF THE DEFENSE FINANCE AND 
                   ACCOUNTING SERVICE.

       (a) Limitation.--The Secretary of Defense may not close any 
     operating location of the Defense Finance and Accounting 
     Service before the date that is 90 days after the date on 
     which the Secretary submits to the Committee on Armed 
     Services of the Senate and the Committee on National Security 
     of the House of Representatives the plan required by 
     subsection (b).
       (b) Plan Required.--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 strategic plan for improving the financial 
     management operations at each of the operating locations of 
     the Defense Finance and Accounting Service.
       (c) Content of Plan.--The plan shall include the following:
       (1) The workloads that it is necessary to perform at those 
     operating locations each fiscal year.
       (2) The capacity and number of operating locations that are 
     necessary for performing those workloads.
       (3) A discussion of the costs and benefits that could 
     result from reorganizing the operating locations of the 
     Defense Finance and Accounting Service on the basis of 
     function performed, together with the Secretary's assessment 
     of the feasibility of carrying out such a reorganization.
       (d) Submittal of Plan.--The plan shall be submitted to the 
     Committee on Armed Services of the Senate and the Committee 
     on National Security of the House of Representatives not 
     later than January 15, 1999.

     SEC. 915. ANNUAL REPORT ON RESOURCES ALLOCATED TO SUPPORT AND 
                   MISSION ACTIVITIES.

       (a) Requirement.--Section 113 of title 10, United States 
     Code, is amended by adding at the end the following new 
     subsection:
       ``(l) The Secretary shall include in the annual report to 
     Congress under subsection (c) the following:
       ``(1) A comparison of the amounts provided in the defense 
     budget for support and for mission activities for each of the 
     preceding five fiscal years.
       ``(2) A comparison of the number of military and civilian 
     personnel, shown by major occupational category, assigned to 
     support positions and to mission positions for each of the 
     preceding five fiscal years.
       ``(3) An accounting, shown by service and by major 
     occupational category, of the number of military and civilian 
     personnel assigned to support positions during each of the 
     preceding five fiscal years.
       ``(4) A listing of the number of military and civilian 
     personnel assigned to management headquarters and 
     headquarters support activities as a percentage of military 
     end-strength for each of the preceding five fiscal years.''.
       (b) Report on Terminology.--Not later than 90 days after 
     the date of the enactment of this Act, the Secretary of 
     Defense shall submit to the Committee on Armed Services of 
     the Senate and the Committee on National Security of the 
     House of Representatives a report setting forth the 
     definitions of the terms ``support'' and ``mission'' that the 
     Secretary proposes to use for purposes of the report 
     requirement under section 113(l) of title 10, United States 
     Code, as added by subsection (a).

             Subtitle C--Joint Warfighting Experimentation

     SEC. 921. FINDINGS CONCERNING JOINT WARFIGHTING 
                   EXPERIMENTATION.

       Congress makes the following findings:
       (1) The assessments of the Quadrennial Defense Review and 
     the National Defense Panel provide a compelling argument--
       (A) that the security environment in the early 21st century 
     will include fundamentally different military challenges than 
     the security environment in the late 20th century; and
       (B) reinforce the premise of the Goldwater-Nichols 
     Department of Defense Reorganization Act of 1986 that future 
     warfare will require more effective joint operational 
     concepts.
       (2) Joint experimentation is necessary for--
       (A) integrating advances in technology with changes in 
     organizational structure and joint operational concepts; and
       (B) determining the interdependent aspects of joint warfare 
     that are key for transforming the conduct of military 
     operations to meet future challenges successfully.
       (3) It is essential that an energetic and innovative 
     organization be established in the Department of Defense with 
     the authority (subject to the authority and guidance of the 
     Secretary of Defense and Chairman of the Joint Chiefs of 
     Staff) to design and implement a process of joint 
     experimentation to investigate and test technologies and 
     alternative forces and concepts in field environments under 
     realistic conditions against the full range of future 
     challenges to assist in developing and validating new joint 
     warfighting concepts and transforming the

[[Page H8150]]

     Armed Forces to meet the threats to national security 
     anticipated for the early 21st century.

     SEC. 922. SENSE OF CONGRESS CONCERNING JOINT WARFIGHTING 
                   EXPERIMENTATION.

       (a) Designation of Commander To Have Joint Warfighting 
     Experimentation Mission.--It is the sense of Congress that 
     the initiative of the Secretary of Defense to designate the 
     commander of a combatant command to have the mission of joint 
     warfighting experimentation is a key step in exploiting the 
     potential of advanced technologies, new organizational 
     structures, and new joint operational concepts to transform 
     the conduct of military operations by the Armed Forces.
       (b) Resources and Authority of Commander.--It is, further, 
     the sense of Congress that the commander of the combatant 
     command referred to in subsection (a) should be provided with 
     appropriate and sufficient resources for joint warfighting 
     experimentation and with the appropriate authority to execute 
     the commander's assigned responsibilities and that such 
     authority should include the following:
       (1) Planning, preparing, and conducting the program of 
     joint warfighting experimentation, which program should 
     include analyses, simulations, wargames, experiments, 
     advanced concept technology demonstrations, joint exercises 
     conducted in virtual and field environments, and, as a 
     particularly critical aspect, assessments of ``red team'' 
     vulnerability.
       (2) Developing scenarios and measures of effectiveness to 
     meet the operational challenges expected to be encountered in 
     the early 21st century and assessing the effectiveness of 
     current and new organizational structures, operational 
     concepts, and technologies in addressing those challenges.
       (3) Integrating and testing in joint experimentation the 
     systems and concepts that result from warfighting 
     experimentation conducted by the Armed Forces and the Defense 
     Agencies.
       (4) Coordinating with each of the Armed Forces and Defense 
     Agencies regarding the development and acquisition of 
     equipment (including surrogate or real technologies, 
     platforms, and systems), supplies, and services necessary for 
     joint experimentation.
       (5) Providing the Secretary of Defense and the Chairman of 
     the Joint Chiefs of Staff with recommendations, based on the 
     conduct of joint warfighting experimentation, for--
       (A) improving interoperability;
       (B) reducing unnecessary redundancy;
       (C) synchronizing technology fielding;
       (D) developing joint operational concepts;
       (E) prioritizing the most promising joint capabilities for 
     future experimentation; and
       (F) prioritizing joint requirements and acquisition 
     programs.
       (6) Making recommendations to the Chairman of the Joint 
     Chiefs of Staff on mission needs statements and operational 
     requirements documents.
       (c) Congressional Review.--It is, further, the sense of 
     Congress that Congress--
       (1) should review the adequacy of the process of 
     transformation to meet future challenges to the national 
     security; and
       (2) if progress is determined inadequate, should consider 
     legislation to--
       (A) establish an appropriate organization to conduct the 
     mission described in subsection (a); and
       (B) provide to the commander given the responsibility for 
     that mission appropriate and sufficient resources for joint 
     warfighting experimentation and the appropriate authority to 
     execute that commander's assigned responsibilities for that 
     mission, including the authorities specified in subsection 
     (b).

     SEC. 923. REPORTS ON JOINT WARFIGHTING EXPERIMENTATION.

       (a) Initial Report.--(1) The commander of the combatant 
     command assigned by the Secretary of Defense to have the 
     mission for joint warfighting experimentation shall submit to 
     the Secretary an initial report on the implementation of 
     joint experimentation. Not later than April 1, 1999, the 
     Secretary shall submit that report, together with any 
     comments that the Secretary considers appropriate and any 
     comments that the Chairman of the Joint Chiefs of Staff 
     considers appropriate, to the Committee on Armed Services of 
     the Senate and the Committee on National Security of the 
     House of Representatives.
       (2) The report of the commander under paragraph (1) shall 
     include the commander's assessment of the following:
       (A) The authority and responsibilities of the commander as 
     described in section 922(b).
       (B) The organization of the commander's combatant command, 
     and of its staff, for carrying out the joint warfighting 
     experimentation mission.
       (C) The process established for tasking forces to 
     participate in experimentation and the commander's 
     specific authority over those forces, including forces 
     designated as joint experimentation forces.
       (D) The resources provided for initial implementation of 
     joint warfighting experimentation, the process for providing 
     those resources to the commander, the categories of the 
     funding, and the authority of the commander for budget 
     execution.
       (E) The process established for the development and 
     acquisition of the materiel, supplies, services, and 
     equipment necessary for the conduct of joint warfighting 
     experimentation.
       (F) The process established for designing, preparing, and 
     conducting joint experiments.
       (G) The role assigned the commander for--
       (i) integrating and testing in joint warfighting 
     experimentation the systems that emerge from warfighting 
     experimentation by the Armed Forces or the Defense Agencies;
       (ii) assessing the effectiveness of organizational 
     structures, operational concepts, and technologies; and
       (iii) assisting the Secretary of Defense and Chairman of 
     the Joint Chiefs of Staff to prioritize requirements or 
     acquisition programs.
       (b) Annual Report.--(1) Chapter 23 of title 10, United 
     States Code, is amended by adding at the end the following 
     new section:

     ``Sec. 485. Joint warfighting experimentation

       ``(a) Annual Report.--The commander of the combatant 
     command assigned by the Secretary of Defense to have the 
     mission for joint warfighting experimentation shall submit to 
     the Secretary an annual report on the conduct of joint 
     experimentation activities for the fiscal year ending in the 
     year of the report. Not later than December 1 of each year, 
     the Secretary shall submit that report, together with any 
     comments that the Secretary considers appropriate and any 
     comments that the Chairman of the Joint Chiefs of Staff 
     considers appropriate, to the Committee on Armed Services of 
     the Senate and the Committee on National Security of the 
     House of Representatives.
       ``(b) Matters To Be Included.--Each report under this 
     section shall include, for the fiscal year covered by the 
     report, the following:
       ``(1) Any changes in the assessments of the matters 
     described in section 923(a)(2) of the Strom Thurmond National 
     Defense Authorization Act for Fiscal Year 1999 since the 
     preparation of the assessments of those matters set forth in 
     the latest report submitted under this section.
       ``(2) A description of the conduct of joint experimentation 
     activities, including the number of activities, the forces 
     involved, the national security challenges addressed, the 
     operational concepts assessed, and the scenarios and measures 
     of effectiveness used.
       ``(3) An assessment of the results of joint warfighting 
     experimentation within the Department of Defense.
       ``(4) With respect to joint warfighting experimentation, 
     any recommendations that the commander considers appropriate 
     regarding--
       ``(A) the development or acquisition of advanced 
     technologies;
       ``(B) changes in organizational structure, operational 
     concepts, or joint doctrine;
       ``(C) the conduct of experiments;
       ``(D) the adequacy of resources; or
       ``(E) changes in authority of the commander to develop or 
     acquire materiel, supplies, services, or equipment directly 
     for the conduct of joint warfighting experimentation.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``485. Joint warfighting experimentation.''.

       (c) First Annual Report.--The first report under section 
     485 of title 10, United States Code, as added by subsection 
     (b), shall be made with respect to fiscal year 1999. In the 
     case of the report under that section for fiscal year 
     1999, the reference in subsection (b)(1) of that section 
     to the most recent report under that section shall be 
     treated as referring to the report under subsection (a) of 
     this section.

                       Subtitle D--Other Matters

     SEC. 931. FURTHER REDUCTIONS IN DEFENSE ACQUISITION AND 
                   SUPPORT WORKFORCE.

       (a) Reduction of Defense Acquisition and Support 
     Workforce.--The Secretary of Defense shall accomplish 
     reductions in defense acquisition and support personnel 
     positions during fiscal year 1999 so that the total number of 
     such personnel as of October 1, 1999, is less than the total 
     number of such personnel as of October 1, 1998, by at least 
     the applicable number determined under subsection (b).
       (b) Required Reduction.--(1) The applicable number for 
     purposes of subsection (a) is 25,000. However, the Secretary 
     of Defense may specify a lower number, which may not be less 
     than 12,500, as the applicable number for purposes of 
     subsection (a) if the Secretary determines, and certifies to 
     Congress not later than May 1, 1999, that an applicable 
     number greater than the number specified by the Secretary 
     would be inconsistent with the cost-effective management of 
     the defense acquisition system to obtain best value equipment 
     and with ensuring military readiness.
       (2) The Secretary shall include with such a certification a 
     report setting forth a detailed explanation of each of the 
     matters certified. The report shall include--
       (A) a detailed explanation of all matters incorporated in 
     the Secretary's determination;
       (B) a definition of the components of the defense 
     acquisition and support positions; and
       (C) the allocation of the reductions under this section 
     among the occupational elements of those positions.
       (3) The authority of the Secretary under paragraph (1) may 
     only be delegated to the Deputy Secretary of Defense.
       (c) Limitation on Reduction of Core Acquisition 
     Workforce.--The Secretary shall implement this section so 
     that the core defense acquisition workforce identified by the 
     Secretary in the report submitted pursuant to section 912(b) 
     of the National Defense Authorization Act for Fiscal Year 
     1998 (Public Law 105-85; 111 Stat. 1860) is reduced 
     proportionally no more than the other occupational elements 
     included as defense acquisition and support positions in that 
     report.
       (d) Defense Acquisition and Support Personnel Defined.--For 
     purposes of this section, the term ``defense acquisition and 
     support personnel'' means military and civilian personnel 
     (other than civilian personnel who are employed at a 
     maintenance depot) who are assigned to, or employed in, 
     acquisition organizations of the Department of Defense (as 
     specified in Department of Defense Instruction numbered 
     5000.58 dated January 14, 1992), and any other organizations 
     which the Secretary may determine to have a predominantly 
     acquisition mission.

[[Page H8151]]

     SEC. 932. LIMITATION ON OPERATION AND SUPPORT FUNDS FOR THE 
                   OFFICE OF THE SECRETARY OF DEFENSE.

       Of the amount available for fiscal year 1999 for operation 
     and support activities of the Office of the Secretary of 
     Defense, not more than 90 percent may be obligated until each 
     of the following reports has been submitted:
       (1) The report required to be submitted to the 
     congressional defense committees by section 904(b) of the 
     National Defense Authorization Act for Fiscal Year 1997 
     (Public Law 104-201; 110 Stat. 2619).
       (2) The reports required to be submitted to Congress by 
     sections 911(b) and 911(c) of the National Defense 
     Authorization Act for Fiscal Year 1998 (Public Law 105-85; 
     111 Stat. 1858, 1859).

     SEC. 933. CLARIFICATION AND SIMPLIFICATION OF 
                   RESPONSIBILITIES OF INSPECTORS GENERAL 
                   REGARDING WHISTLEBLOWER PROTECTIONS.

       (a) Roles of Inspectors General of the Armed Forces.--(1) 
     Subsection (c) of section 1034 of title 10, United States 
     Code, is amended--
       (A) by striking out paragraph (1) and inserting in lieu 
     thereof the following:
       ``(1) If a member of the armed forces submits to an 
     Inspector General an allegation that a personnel action 
     prohibited by subsection (b) has been taken (or threatened) 
     against the member with respect to a communication described 
     in paragraph (2), the Inspector General shall take the action 
     required under paragraph (3).''; and
       (B) by striking out paragraph (3) and inserting in lieu 
     thereof the following:
       ``(3)(A) An Inspector General receiving an allegation as 
     described in paragraph (1) shall expeditiously determine 
     whether there is sufficient evidence to warrant an 
     investigation of the allegation.
       ``(B) If the Inspector General receiving such an allegation 
     is an Inspector General within a military department, that 
     Inspector General shall promptly notify the Inspector General 
     of the Department of Defense of the allegation. Such 
     notification shall be made in accordance with regulations 
     prescribed under subsection (h).
       ``(C) If an allegation under paragraph (1) is submitted to 
     an Inspector General within a military department and if the 
     determination of that Inspector General under subparagraph 
     (A) is that there is not sufficient evidence to warrant an 
     investigation of the allegation, that Inspector General shall 
     forward the matter to the Inspector General of the Department 
     of Defense for review.
       ``(D) Upon determining that an investigation of an 
     allegation under paragraph (1) is warranted, the Inspector 
     General making the determination shall expeditiously 
     investigate the allegation. In the case of a determination 
     made by the Inspector General of the Department of Defense, 
     that Inspector General may delegate responsibility for the 
     investigation to an appropriate Inspector General within a 
     military department.
       ``(E) In the case of an investigation under subparagraph 
     (D) within the Department of Defense, the results of the 
     investigation shall be determined by, or approved by, the 
     Inspector General of the Department of Defense (regardless of 
     whether the investigation itself is conducted by the 
     Inspector General of the Department of Defense or by an 
     Inspector General within a military department).
       ``(4) Neither an initial determination under paragraph 
     (3)(A) nor an investigation under paragraph (3)(D) is 
     required in the case of an allegation made more than 60 days 
     after the date on which the member becomes aware of the 
     personnel action that is the subject of the allegation.
       ``(5) The Inspector General of the Department of Defense, 
     or the Inspector General of the Department of Transportation 
     (in the case of a member of the Coast Guard when the Coast 
     Guard is not operating as a service in the Navy), shall 
     ensure that the Inspector General conducting the 
     investigation of an allegation under this subsection is 
     outside the immediate chain of command of both the member 
     submitting the allegation and the individual or individuals 
     alleged to have taken the retaliatory action.''.
       (2) Subsection (d) of such section is amended--
       (A) by inserting ``receiving the allegation'' after ``the 
     Inspector General'' the first place it appears; and
       (B) by adding at the end the following: ``In the case of an 
     allegation received by the Inspector General of the 
     Department of Defense, the Inspector General may delegate 
     that responsibility to the Inspector General of the armed 
     force concerned.''.
       (b) Mismanagement Covered by Protected Communications.--
     Subsection (c)(2)(B) of such section is amended by striking 
     out ``Mismanagement'' and inserting in lieu thereof ``Gross 
     mismanagement''.
       (c) Simplified Reporting and Notice Requirements.--(1) 
     Paragraph (1) of subsection (e) of such section is amended--
       (A) by striking out ``Not later than 30 days after 
     completion of an investigation under subsection (c) or (d),'' 
     and inserting in lieu thereof ``After completion of an 
     investigation under subsection (c) or (d) or, in the case of 
     an investigation under subsection (c) by an Inspector General 
     within a military department, after approval of the report 
     of that investigation under subsection (c)(3)(E),''
       (B) by striking out ``the Inspector General shall submit a 
     report on'' and inserting in lieu thereof ``the Inspector 
     General conducting the investigation shall submit a report 
     on'';
       (C) by inserting ``shall transmit a copy of the report on 
     the results of the investigation to'' before ``the member of 
     the armed forces''; and
       (D) by adding at the end the following new sentence: ``The 
     report shall be transmitted to the Secretary, and the copy of 
     the report shall be transmitted to the member, not later than 
     30 days after the completion of the investigation or, in the 
     case of an investigation under subsection (c) by an Inspector 
     General within a military department, after approval of the 
     report of that investigation under subsection (c)(3)(E).''.
       (2) Paragraph (2) of such subsection is amended--
       (A) by striking out ``submitted'' after ``In the copy of 
     the report'' and inserting in lieu thereof ``transmitted''; 
     and
       (B) by adding at the end the following new sentence: 
     ``However, the copy need not include summaries of interviews 
     conducted, nor any document acquired, during the course of 
     the investigation. Such items shall be transmitted to the 
     member, if the member requests the items, with the copy of 
     the report or after the transmittal to the member of the copy 
     of the report, regardless of whether the request for those 
     items is made before or after the copy of the report is 
     transmitted to the member.''.
       (3) Paragraph (3) of such subsection is amended by striking 
     out ``90 days'' and inserting in lieu thereof ``180 days''.
       (d) Repeal of Post-Investigation Interview Requirement.--
     Subsection (h) of such section is repealed.
       (e) Definition of Inspector General Defined.--Subsection 
     (j)(2) of such section is amended--
       (1) by redesignating subparagraph (B) as subparagraph (G) 
     and, in that subparagraph, by striking out ``an officer'' and 
     inserting in lieu thereof ``An officer'';
       (2) by striking out subparagraph (A) and inserting in lieu 
     thereof the following:
       ``(A) The Inspector General of the Department of Defense.
       ``(B) The Inspector General of the Department of 
     Transportation, in the case of a member of the Coast Guard 
     when the Coast Guard is not operating as a service in the 
     Navy.
       ``(C) The Inspector General of the Army, in the case of a 
     member of the Army.
       ``(D) The Naval Inspector General, in the case of a member 
     of the Navy.
       ``(E) The Inspector General of the Air Force, in the case 
     of a member of the Air Force.
       ``(F) The Deputy Naval Inspector General for Marine Corps 
     Matters, in the case of a member of the Marine Corps.''; and
       (3) in the matter preceding subparagraph (A), by striking 
     out ``means--'' and inserting in lieu thereof ``means the 
     following:''.
       (f) Technical and Conforming Amendments.--(1) Subsections 
     (i) and (j) of such section are redesignated as subsections 
     (h) and (i), respectively.
       (2) Subsection (b)(1)(B)(ii) of such section is amended by 
     striking out ``subsection (j))'' and inserting in lieu 
     thereof ``subsection (i)) or any other Inspector General 
     appointed under the Inspector General Act of 1978''.

     SEC. 934. REPEAL OF REQUIREMENT RELATING TO ASSIGNMENT OF 
                   TACTICAL AIRLIFT MISSION TO RESERVE COMPONENTS.

       Section 1438 of the National Defense Authorization Act for 
     Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1689), as 
     amended by section 1023 of the National Defense 
     Authorization Act for Fiscal Years 1992 and 1993 (Public 
     Law 102-190; 105 Stat. 1460), is repealed.

     SEC. 935. CONSULTATION WITH MARINE CORPS ON MAJOR DECISIONS 
                   DIRECTLY CONCERNING MARINE CORPS AVIATION.

       (a) In General.--Chapter 503 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 5026. CONSULTATION WITH COMMANDANT OF THE MARINE CORPS 
                   ON MAJOR DECISIONS DIRECTLY CONCERNING MARINE 
                   CORPS AVIATION

         ``The Secretary of the Navy shall ensure that the views 
           of the Commandant of the Marine Corps are given 
           appropriate consideration before a major decision is 
           made by an element of the Department of the Navy 
           outside the Marine Corps on a matter that directly 
           concerns Marine Corps aviation.''.
         (b) Clerical Amendment.--The table of sections at the 
           beginning of such chapter is amended by adding at the 
           end the following new item:
``5026. Consultation with Commandant of the Marine Corps on major 
              decisions directly concerning Marine Corps aviation.''.

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Incorporation of classified annex.
Sec. 1003. Authorization of prior emergency supplemental appropriations 
              for fiscal year 1998.
Sec. 1004. Authorization of appropriations for Bosnia peacekeeping 
              operations for fiscal year 1999.
Sec. 1005. Partnership for Peace Information Management System.
Sec. 1006. United States contribution to NATO common-funded budgets in 
              fiscal year 1999.
Sec. 1007. Liquidity of working-capital funds.
Sec. 1008. Termination of authority to manage working-capital funds and 
              certain activities through the Defense Business 
              Operations Fund.
Sec. 1009. Clarification of authority to retain recovered costs of 
              disposals in working-capital funds.
Sec. 1010. Crediting of amounts recovered from third parties for loss 
              or damage to personal property shipped or stored at 
              Government expense.

[[Page H8152]]

                Subtitle B--Naval Vessels and Shipyards

Sec. 1011. Revision to requirement for continued listing of two Iowa-
              class battleships on the Naval Vessel Register.
Sec. 1012. Transfer of U.S.S. NEW JERSEY.
Sec. 1013. Homeporting of the U.S.S. IOWA in San Francisco, California.
Sec. 1014. Sense of Congress concerning the naming of an LPD-17 vessel.
Sec. 1015. Reports on naval surface fire-support capabilities.
Sec. 1016. Long-term charter of three vessels in support of submarine 
              rescue, escort, and towing.
Sec. 1017. Transfer of obsolete Army tugboat.

 Subtitle C--Counter Drug Activities and Other Assistance for Civilian 
                            Law Enforcement

Sec. 1021. Department of Defense support to other agencies for counter-
              drug activities.
Sec. 1022. Department of Defense support of National Guard drug 
              interdiction and counter-drug activities.
Sec. 1023. Department of Defense counter-drug activities in transit 
              zone.

       Subtitle D--Miscellaneous Report Requirements and Repeals

Sec. 1031. Repeal of unnecessary and obsolete reporting provisions.
Sec. 1032. Report regarding use of tagging system to identify 
              hydrocarbon fuels used by Department of Defense.

                Subtitle E--Armed Forces Retirement Home

Sec. 1041. Appointment of Director and Deputy Director of the Naval 
              Home.
Sec. 1042. Revision of inspection requirements relating to Armed Forces 
              Retirement Home.
Sec. 1043. Clarification of land conveyance authority, Armed Forces 
              Retirement Home.

            Subtitle F--Matters Relating to Defense Property

Sec. 1051. Plan for improved demilitarization of excess and surplus 
              defense property.
Sec. 1052. Transfer of F-4 Phantom II aircraft to foundation.

            Subtitle G--Other Department of Defense Matters

Sec. 1061. Pilot program on alternative notice of receipt of legal 
              process for garnishment of Federal pay for child support 
              and alimony.
Sec. 1062. Training of special operations forces with friendly foreign 
              forces.
Sec. 1063. Research grants competitively awarded to service academies.
Sec. 1064. Department of Defense use of frequency spectrum.
Sec. 1065. Department of Defense aviation accident investigations.
Sec. 1066. Investigation of actions relating to 174th Fighter Wing of 
              New York Air National Guard.
Sec. 1067. Program to commemorate 50th anniversary of the Korean War.
Sec. 1068. Designation of America's National Maritime Museum.
Sec. 1069. Technical and clerical amendments.

                       Subtitle H--Other Matters

Sec. 1071. Act constituting presidential approval of vessel war risk 
              insurance requested by the Secretary of Defense.
Sec. 1072. Extension and reauthorization of Defense Production Act of 
              1950.
Sec. 1073. Requirement that burial flags furnished by the Secretary of 
              Veterans Affairs be wholly produced in the United States.
Sec. 1074. Sense of Congress concerning tax treatment of principal 
              residence of members of Armed Forces while away from home 
              on active duty.
Sec. 1075. Clarification of State authority to tax compensation paid to 
              certain employees.

                     Subtitle A--Financial Matters

     SEC. 1001. TRANSFER AUTHORITY.

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

     SEC. 1002. INCORPORATION OF CLASSIFIED ANNEX.

       (a) Status of Classified Annex.--The Classified Annex 
     prepared by the committee of conference to accompany the 
     conference report on the bill H.R. 3616 of the One Hundred 
     Fifth Congress and transmitted to the President is hereby 
     incorporated into this Act.
       (b) Construction With Other Provisions of Act.--The amounts 
     specified in the Classified Annex are not in addition to 
     amounts authorized to be appropriated by other provisions of 
     this Act.
       (c) Limitation on Use of Funds.--Funds appropriated 
     pursuant to an authorization contained in this Act that are 
     made available for a program, project, or activity referred 
     to in the Classified Annex may only be expended for such 
     program, project, or activity in accordance with such terms, 
     conditions, limitations, restrictions, and requirements as 
     are set out for that program, project, or activity in the 
     Classified Annex.
       (d) Distribution of Classified Annex.--The President shall 
     provide for appropriate distribution of the Classified Annex, 
     or of appropriate portions of the annex, within the executive 
     branch of the Government.

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

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

     SEC. 1004. AUTHORIZATION OF APPROPRIATIONS FOR BOSNIA 
                   PEACEKEEPING OPERATIONS FOR FISCAL YEAR 1999.

       (a) Authorization of Appropriations.--Funds are hereby 
     authorized to be appropriated for the Department of Defense 
     for fiscal year 1999 for incremental costs of the Armed 
     Forces for Bosnia peacekeeping operations in the total amount 
     of $1,858,600,000, as follows:
       (1) For military personnel, in addition to the amounts 
     authorized to be appropriated in title IV of this Act:
       (A) For the Army, $297,700,000.
       (B) For the Navy, $9,700,000.
       (C) For the Marine Corps, $2,700,000.
       (D) For the Air Force, $33,900,000.
       (E) For the Naval Reserve, $2,200,000.
       (2) For operation and maintenance for the Overseas 
     Contingency Operations Transfer Fund, in addition to the 
     total amount authorized to be appropriated for that fund in 
     section 301(24) of this Act, $1,512,400,000.
       (b) Designation as Emergency.--Funds authorized to be 
     appropriated in accordance with subsection (a) are designated 
     as emergency requirements pursuant to section 251(b)(2)(A) of 
     the Balanced Budget and Emergency Deficit Control Act of 1985 
     (2 U.S.C. 901(b)(2)(A)).
       (c) Limitation.--(1) Funds available for the Department of 
     Defense for fiscal year 1999 for military personnel for the 
     Army, Navy, Marine Corps, Air Force, or Naval Reserve or for 
     operation and maintenance for the Overseas Contingency 
     Operations Transfer Fund may not be obligated or expended for 
     Bosnia peacekeeping operations in excess of the amount 
     authorized to be appropriated for that purpose under 
     subsection (a).
       (2) The President may waive the limitation in paragraph (1) 
     after submitting to Congress the following:
       (A) The President's written certification that the waiver 
     is necessary in the national security interests of the United 
     States.
       (B) The President's written certification that exercising 
     the waiver will not adversely affect the readiness of United 
     States military forces.
       (C) A report setting forth the following:
       (i) The reasons that the waiver is necessary in the 
     national security interests of the United States.
       (ii) The specific reasons that additional funding is 
     required for the continued presence of United States military 
     forces participating in, or supporting, Bosnia peacekeeping 
     operations for fiscal year 1999.
       (iii) A discussion of the impact on the military readiness 
     of United States Armed Forces of the continuing deployment of 
     United States military forces participating in, or 
     supporting, Bosnia peacekeeping operations.
       (D) A supplemental appropriations request for the 
     Department of Defense for such amounts as are necessary for 
     the additional fiscal year 1999 costs associated with United 
     States military forces participating in, or supporting, 
     Bosnia peacekeeping operations.
       (d) Transfer Authority.--The Secretary of Defense may 
     transfer amounts of authorizations made available to the 
     Department of Defense in subsection (a)(2) for fiscal year 
     1999 to any of the authorizations for that fiscal year in 
     section 301. Amounts of authorizations so transferred shall 
     be merged with and be available for the same purposes as the 
     authorization to which transferred. The transfer authority 
     under this subsection is in addition to any other transfer 
     authority provided in this Act.
       (e) Bosnia Peacekeeping Operations Defined.--For the 
     purposes of this section, the term ``Bosnia peacekeeping 
     operations''--
       (1) means the operation designated as Operation Joint Forge 
     and any other operation involving the participation of any of 
     the Armed Forces in peacekeeping or peace enforcement 
     activities in and around the Republic of Bosnia and 
     Herzegovina; and
       (2) includes, with respect to Operation Joint Forge or any 
     such other operation, each activity that is directly related 
     to the support of the operation.

     SEC. 1005. PARTNERSHIP FOR PEACE INFORMATION SYSTEM 
                   MANAGEMENT.

       Funds authorized to be appropriated under titles II and III 
     of this Act shall be available for the Partnership for Peace 
     Information Management System as follows:

[[Page H8153]]

       (1) Of the amount authorized to be appropriated under 
     section 201(4) for Defense-wide activities, $2,000,000.
       (2) Of the amount authorized to be appropriated under 
     section 301(5) for Defense-wide activities, $3,000,000.

     SEC. 1006. UNITED STATES CONTRIBUTION TO NATO COMMON-FUNDED 
                   BUDGETS IN FISCAL YEAR 1999.

       (a) Fiscal Year 1999 Limitation.--The total amount 
     contributed by the Secretary of Defense in fiscal year 1999 
     for the common-funded budgets of NATO may be any amount up 
     to, but not in excess of, the amount specified in subsection 
     (b) (rather than the maximum amount that would otherwise be 
     applicable to those contributions under the fiscal year 1998 
     baseline limitation).
       (b) Total Amount.--The amount of the limitation applicable 
     under subsection (a) is the sum of the following:
       (1) The amounts of unexpended balances, as of the end of 
     fiscal year 1998, of funds appropriated for fiscal years 
     before fiscal year 1999 for payments for those budgets.
       (2) The amount authorized to be appropriated under section 
     301(1) that is available for contributions for the NATO 
     common-funded military budget under section 314.
       (3) The amount authorized to be appropriated under section 
     201 that is available for contribution for the NATO common-
     funded civil budget under section 243.
       (4) The total amount of the contributions authorized to be 
     made under section 2501.
       (c) Definitions.--For purposes of this section:
       (1) Common-funded budgets of nato.--The term ``common-
     funded budgets of NATO'' means the Military Budget, the 
     Security Investment Program, and the Civil Budget of the 
     North Atlantic Treaty Organization (and any successor or 
     additional account or program of NATO).
       (2) Fiscal year 1998 baseline limitation.--The term 
     ``fiscal year 1998 baseline limitation'' means the maximum 
     annual amount of Department of Defense contributions for 
     common-funded budgets of NATO that is set forth as the annual 
     limitation in section 3(2)(C)(ii) of the resolution of the 
     Senate giving the advice and consent of the Senate to the 
     ratification of the Protocols to the North Atlantic Treaty of 
     1949 on the Accession of Poland, Hungary, and the Czech 
     Republic (as defined in section 4(7) of that resolution), 
     approved by the Senate on April 30, 1998.

     SEC. 1007. LIQUIDITY OF WORKING-CAPITAL FUNDS.

       (a) Increased Cash Balances.--The Secretary of Defense 
     shall administer the working-capital funds of the Department 
     of Defense during fiscal year 1999 so as to ensure that the 
     total amount of the cash balances in such funds on September 
     30, 1999, exceeds the total amount of the cash balances in 
     such funds on September 30, 1998, by $1,300,000,000.
       (b) Actions Regarding Unbudgeted Losses.--The Under 
     Secretary of Defense (Comptroller) shall take such actions 
     regarding unbudgeted losses for the working-capital funds as 
     may be necessary in order to ensure that such unbudgeted 
     losses do not preclude the Secretary of Defense from 
     achieving the increase in cash balances in working-capital 
     funds required under subsection (a).
       (c) Waiver.--(1) The Secretary of Defense may waive the 
     requirements of this section upon certifying to Congress, in 
     writing, that the waiver is necessary to meet requirements 
     associated with--
       (A) a contingency operation (as defined in section 
     101(a)(13) of title 10, United States Code); or
       (B) an operation of the Armed Forces that commenced before 
     October 1, 1998, and continues during fiscal year 1999.
       (2) The waiver authority under paragraph (1) may not be 
     delegated to any official other than the Deputy Secretary of 
     Defense.
       (3) The waiver authority under paragraph (1) does not apply 
     to the limitation in subsection (d) or the limitation in 
     section 2208(l)(3) of title 10, United States Code (as added 
     by subsection (e)).
       (d) Fiscal Year 1999 Limitation on Advance Billings.--(1) 
     The total amount of the advance billings rendered or imposed 
     for the working-capital funds of the Department of Defense 
     and the Defense Business Operations Fund in fiscal year 
     1999--
       (A) for the Department of the Navy, may not exceed 
     $400,000,000; and
       (B) for the Department of the Air Force, may not exceed 
     $400,000,000.
       (2) In paragraph (1), the term ``advance billing'' has the 
     meaning given such term in section 2208(l) of title 10, 
     United States Code.
       (e) Permanent Limitation on Advance Billings.--(1) Section 
     2208(l) of title 10, United States Code, is amended--
       (A) by redesignating paragraph (3) as paragraph (4); and
       (B) by inserting after paragraph (2) the following new 
     paragraph (3):
       ``(3) The total amount of the advance billings rendered or 
     imposed for all working-capital funds of the Department of 
     Defense in a fiscal year may not exceed $1,000,000,000.''.
       (2) Section 2208(l)(3) of such title, as added by paragraph 
     (1), applies to fiscal years after fiscal year 1999.
       (f) Semiannual Report.--(1) The Under Secretary shall 
     submit to the Committee on Armed Services of the Senate and 
     the Committee on National Security of the House of 
     Representatives--
       (A) not later than May 1, 1999, a report on the 
     administration of this section for the six-month period 
     ending on March 31, 1999; and
       (B) not later than November 1, 1999, a report on the 
     administration of this section for the six-month period 
     ending on September 30, 1999.
       (2) Each report shall include, for the period covered by 
     the report, the following:
       (A) The profit and loss status of each working-capital fund 
     activity.
       (B) The actions taken by the Secretary of each military 
     department to use assessments of surcharges to correct for 
     unbudgeted losses.

     SEC. 1008. TERMINATION OF AUTHORITY TO MANAGE WORKING-CAPITAL 
                   FUNDS AND CERTAIN ACTIVITIES THROUGH THE 
                   DEFENSE BUSINESS OPERATIONS FUND.

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

     SEC. 1009. CLARIFICATION OF AUTHORITY TO RETAIN RECOVERED 
                   COSTS OF DISPOSALS IN WORKING-CAPITAL FUNDS.

       Section 2210(a) of title 10, United States Code, is amended 
     to read as follows:
       ``(a)(1) A working-capital fund established pursuant to 
     section 2208 of this title may retain so much of the proceeds 
     of disposals of property referred to in paragraph (2) as is 
     necessary to recover the expenses incurred by the fund in 
     disposing of such property. Proceeds from the sale or 
     disposal of such property in excess of

[[Page H8154]]

     amounts necessary to recover the expenses may be credited to 
     current applicable appropriations of the Department of 
     Defense.
       ``(2) Paragraph (1) applies to disposals of supplies, 
     material, equipment, and other personal property that were 
     not financed by stock funds established under section 2208 of 
     this title.''.

     SEC. 1010. CREDITING OF AMOUNTS RECOVERED FROM THIRD PARTIES 
                   FOR LOSS OR DAMAGE TO PERSONAL PROPERTY SHIPPED 
                   OR STORED AT GOVERNMENT EXPENSE.

       (a) In General.--(1) Chapter 163 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 2739. Amounts recovered from third parties for loss or 
       damage to personal property shipped or stored at Government 
       expense: crediting to appropriations

       ``(a) Crediting of Collections.--Any qualifying military 
     department third-party collection shall be credited to the 
     appropriate current appropriation. Amounts so credited shall 
     be merged with the funds in that appropriation and shall be 
     available for the same period and purposes as the funds with 
     which merged.
       ``(b) Appropriate Current Appropriation.--For purposes of 
     subsection (a), the appropriate current appropriation with 
     respect to a qualifying military department third-party 
     collection is the appropriation currently available, as of 
     the date of the collection, for the payment of claims by that 
     military department for loss or damage of personal property 
     shipped or stored at Government expense.
       ``(c) Qualifying Military Department Third-party 
     Collections.--For purposes of subsection (a), a qualifying 
     military department third-party collection is any amount that 
     a military department collects under sections 3711, 3716, 
     3717, and 3721 of title 31 from a third party for a loss or 
     damage to personal property that occurred during shipment or 
     storage of the property at Government expense and for which 
     the Secretary of the military department paid the owner in 
     settlement of a claim.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:
``2739. Amounts recovered from third parties for loss or damage to 
              personal property shipped or stored at Government 
              expense: crediting to appropriations.''.
       (b) Effective Date.--Section 2739 of title 10, United 
     States Code, as added by subsection (a), applies with respect 
     to amounts collected by a military department on or after the 
     date of the enactment of this Act.

                Subtitle B--Naval Vessels and Shipyards

     SEC. 1011. REVISION TO REQUIREMENT FOR CONTINUED LISTING OF 
                   TWO IOWA-CLASS BATTLESHIPS ON THE NAVAL VESSEL 
                   REGISTER.

       In carrying out section 1011 of the National Defense 
     Authorization Act for Fiscal Year 1996 (Public Law 104-106; 
     110 Stat. 421), the Secretary of the Navy shall list on the 
     Naval Vessel Register, and maintain on that register, the 
     following two Iowa-class battleships: the U.S.S. IOWA (BB-61) 
     and the U.S.S. WISCONSIN (BB-64).

     SEC. 1012. TRANSFER OF U.S.S. NEW JERSEY.

       The Secretary of the Navy shall strike the U.S.S. NEW 
     JERSEY (BB-62) from the Naval Vessel Register and shall 
     transfer that vessel to a non-for-profit entity in accordance 
     with section 7306 of title 10, United States Code. The 
     Secretary shall require as a condition of the transfer of 
     that vessel that the transferee locate the vessel in the 
     State of New Jersey.

     SEC. 1013. HOMEPORTING OF THE U.S.S. IOWA IN SAN FRANCISCO, 
                   CALIFORNIA.

       It is the sense of Congress that the U.S.S. IOWA (BB-61) 
     should be homeported at the Port of San Francisco, 
     California.

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

       It is the sense of Congress that, consistent with section 
     1018 of the National Defense Authorization Act for Fiscal 
     Year 1996 (Public Law 104-106; 110 Stat. 425), the Secretary 
     of the Navy should name the next vessel of the LPD-17 class 
     of amphibious vessels to be named after the date of the 
     enactment of this Act as the U.S.S. Clifton B. Cates, in 
     honor of former Commandant of the Marine Corps Clifton B. 
     Cates (1893-1970), a native of Tennessee whose distinguished 
     career of service in the Marine Corps included combat service 
     in World War I so heroic that he became the most decorated 
     Marine Corps officer of that war, exemplary combat leadership 
     in the Pacific theater during World War II from Guadalcanal 
     to Tinian and Iwo Jima and beyond, and appointment in 1948 as 
     the 19th Commandant of the Marine Corps with the rank of 
     lieutenant general, a position from which he led the 
     efficient and alacritous response of the Marine Corps to the 
     invasion of the Republic of South Korea by Communist North 
     Korea.

     SEC. 1015. REPORTS ON NAVAL SURFACE FIRE-SUPPORT 
                   CAPABILITIES.

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

     SEC. 1016. LONG-TERM CHARTER OF THREE VESSELS IN SUPPORT OF 
                   SUBMARINE RESCUE, ESCORT, AND TOWING.

       The Secretary of the Navy may enter into contracts in 
     accordance with section 2401 of title 10, United States Code, 
     for the charter through September 30, 2003, of the following 
     vessels:
       (1) The CAROLYN CHOUEST (United States official number 
     D102057).
       (2) The KELLIE CHOUEST (United States official number 
     D1038519).
       (3) The DOLORES CHOUEST (United States official number 
     D600288).

     SEC. 1017. TRANSFER OF OBSOLETE ARMY TUGBOAT.

       In carrying out section 1023 of the National Defense 
     Authorization Act for Fiscal Year 1998 (Public Law 105-85; 
     111 Stat. 1876), the Secretary of the Army may substitute the 
     obsolete, decommissioned tugboat Attleboro (LT-1977) for the 
     tugboat Normandy (LT-1971) as one of the two obsolete 
     tugboats authorized to be transferred by the Secretary under 
     that section.

 Subtitle C--Counter Drug Activities and Other Assistance for Civilian 
                            Law Enforcement

     SEC. 1021. DEPARTMENT OF DEFENSE SUPPORT TO OTHER AGENCIES 
                   FOR COUNTER-DRUG ACTIVITIES.

       (a) Continuation of Authority.--Subsection (a) of section 
     1004 of the National Defense Authorization Act for Fiscal 
     Year 1991 (Public Law 101-510; 10 U.S.C. 374 note) is amended 
     by striking out ``through 1999'' and inserting in lieu 
     thereof ``through 2002''.
       (b) Bases and Facilities Support.--Subsection (b)(4) of 
     such section is amended--
       (1) by striking out ``unspecified minor construction'' and 
     inserting in lieu thereof ``an unspecified minor military 
     construction project'';
       (2) by inserting ``of the Department of Defense or any 
     Federal, State, or local law enforcement agency'' after 
     ``counter-drug activities''; and
       (3) by inserting before the period at the end the 
     following: ``or counter-drug activities of a foreign law 
     enforcement agency outside the United States''.
       (c) Congressional Notification of Facilities Projects.--
     Such section is further amended by adding at the end the 
     following new section:
       ``(h) Congressional Notification of Facilities Projects.--
     (1) When a decision is made to carry out a military 
     construction project described in paragraph (2), the 
     Secretary of Defense shall submit to the congressional 
     defense committees written notice of the decision, including 
     the justification for the project and the estimated cost of 
     the project. The project may be commenced only after the end 
     of the 21-day period beginning on the date on which the 
     written notice is received by Congress.
       ``(2) Paragraph (1) applies to an unspecified minor 
     military construction project that--
       ``(A) is intended for the modification or repair of a 
     Department of Defense facility for the purpose set forth in 
     subsection (b)(4); and
       ``(B) has an estimated cost of more than $500,000.''.

     SEC. 1022. DEPARTMENT OF DEFENSE SUPPORT OF NATIONAL GUARD 
                   DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES.

       (a) Procurement of Equipment.--Subsection (a)(3) of section 
     112 of title 32, United States Code, is amended--
       (1) by striking out ``and leasing of equipment'' and 
     inserting in lieu thereof ``and equipment, and the leasing of 
     equipment,''; and
       (2) by adding at the end the following new sentence: 
     ``However, the use of such funds for the procurement of 
     equipment may not exceed $5,000 per purchase order, unless 
     approval for procurement of equipment in excess of that 
     amount is granted in advance by the Secretary of Defense.''.
       (b) Training and Readiness.--Subsection (b)(2) of such 
     section is amended to read as follows:
       ``(2)(A) A member of the National Guard serving on full-
     time National Guard duty under orders authorized under 
     paragraph (1) shall participate in the training required 
     under section

[[Page H8155]]

     502(a) of this title in addition to the duty performed for 
     the purpose authorized under that paragraph. The pay, 
     allowances, and other benefits of the member while 
     participating in the training shall be the same as those to 
     which the member is entitled while performing duty for the 
     purpose of carrying out drug interdiction and counter-drug 
     activities. The member is not entitled to additional pay, 
     allowances, or other benefits for participation in training 
     required under section 502(a)(1) of this title.
       ``(B) Appropriations available for the Department of 
     Defense for drug interdiction and counter-drug activities may 
     be used for paying costs associated with a member's 
     participation in training described in subparagraph (A). The 
     appropriation shall be reimbursed in full, out of 
     appropriations available for paying those costs, for the 
     amounts paid. Appropriations available for paying those costs 
     shall be available for making the reimbursements.
       ``(C) To ensure that the use of units and personnel of the 
     National Guard of a State pursuant to a State drug 
     interdiction and counter-drug activities plan does not 
     degrade the training and readiness of such units and 
     personnel, the following requirements shall apply in 
     determining the drug interdiction and counter-drug activities 
     that units and personnel of the National Guard of a State may 
     perform:
       ``(i) The performance of the activities may not adversely 
     affect the quality of that training or otherwise interfere 
     with the ability of a member or unit of the National Guard to 
     perform the military functions of the member or unit.
       ``(ii) National Guard personnel will not degrade their 
     military skills as a result of performing the activities.
       ``(iii) The performance of the activities will not result 
     in a significant increase in the cost of training.
       ``(iv) In the case of drug interdiction and counter-drug 
     activities performed by a unit organized to serve as a unit, 
     the activities will support valid unit training 
     requirements.''.
       (c) Assistance to Youth and Charitable Organizations.--
     Subsection (b)(3) of such section is amended to read as 
     follows:
       ``(3) A unit or member of the National Guard of a State may 
     be used, pursuant to a State drug interdiction and counter-
     drug activities plan approved by the Secretary of Defense 
     under this section, to provide services or other assistance 
     (other than air transportation) to an organization eligible 
     to receive services under section 508 of this title if--
       ``(A) the State drug interdiction and counter-drug 
     activities plan specifically recognizes the organization as 
     being eligible to receive the services or assistance;
       ``(B) in the case of services, the performance of the 
     services meets the requirements of paragraphs (1) and (2) of 
     subsection (a) of section 508 of this title; and
       ``(C) the services or assistance is authorized under 
     subsection (b) or (c) of such section or in the State drug 
     interdiction and counter-drug activities plan''.
       (d) Definition of Drug Interdiction and Counter-drug 
     Activities.--Subsection (i)(1) of such section is amended by 
     inserting after ``drug interdiction and counter-drug law 
     enforcement activities'' the following: ``, including drug 
     demand reduction activities,''.
       (e) Conforming Amendments.--Subsection (a) of such section 
     is further amended--
       (1) by striking out ``for--'' and inserting in lieu thereof 
     ``for the following:'';
       (2) by striking out ``the'' at the beginning of paragraphs 
     (1), (2), and (3) and inserting in lieu thereof ``The'';
       (3) in paragraph (1), by striking out the semicolon at the 
     end and inserting in lieu thereof a period; and
       (4) in paragraph (2), by striking out ``; and'' and 
     inserting in lieu thereof a period.

     SEC. 1023. DEPARTMENT OF DEFENSE COUNTER-DRUG ACTIVITIES IN 
                   TRANSIT ZONE.

       (a) Sense of Congress Regarding Priority of Drug 
     Interdiction and Counter-Drug Activities.--It is the sense of 
     Congress that the Secretary of Defense should--
       (1) ensure that the international drug interdiction and 
     counter-drug activities of the Department of Defense are 
     accorded adequate resources within the budget allocation of 
     the Department to execute the drug interdiction and counter-
     drug mission under the Global Military Force Policy of the 
     Department; and
       (2) make such changes to that policy as the Secretary 
     considers necessary.
       (b) Support for Counter-Drug Operation Caper Focus.--(1) 
     During fiscal year 1999, the Secretary of Defense shall make 
     available, to the maximum extent practicable, such surface 
     vessels, maritime patrol aircraft, and personnel of the Navy 
     as may be necessary to conduct the final phase of the 
     counter-drug operation known as Caper Focus, which targets 
     the maritime movement of cocaine on vessels in the eastern 
     Pacific Ocean.
       (2) Of the amount authorized to be appropriated pursuant to 
     section 301(20) for drug interdiction and counter-drug 
     activities, $10,500,000 shall be available for the purpose of 
     conducting the counter-drug operation known as Caper Focus.
       (c) Patrol Coastal Craft for Drug Interdiction by Southern 
     Command.--Of the amount authorized to be appropriated 
     pursuant to section 301(20) for drug interdiction and 
     counter-drug activities, $14,500,000 shall be available for 
     the purpose of equipping and operating six of the Cyclone-
     class coastal defense ships of the Department of Defense in 
     the Caribbean Sea and eastern Pacific Ocean in support of the 
     drug interdiction efforts of the United States Southern 
     Command.
       (d) Resulting Availability of Funds for 
     Counterproliferation and Counterterrorism Activities.--(1) In 
     light of subsection (c), of the amount authorized to be 
     appropriated pursuant to section 301(5) for the Special 
     Operations Command, $4,500,000 shall be available for the 
     purpose of increased training and related operations in 
     support of the activities of the Special Operations Command 
     regarding counterproliferation of weapons of mass destruction 
     and counterterrorism.
       (2) The amount made available under this subsection is in 
     addition to other funds authorized to be appropriated under 
     section 301(5) for the Special Operations Command for such 
     purpose.

       Subtitle D--Miscellaneous Report Requirements and Repeals

     SEC. 1031. REPEAL OF UNNECESSARY AND OBSOLETE REPORTING 
                   PROVISIONS.

       (a) Health and Medical Care Studies and Demonstrations.--
     Section 1092(a) of title 10, United States Code, is amended 
     by striking out paragraph (3).
       (b) Executed Requirement for Biannual Reports on 
     Alternative Utilization of Military Facilities.--Section 2819 
     of the National Defense Authorization Act, Fiscal Year 1989 
     (10 U.S.C. 2391 note), relating to the Commission on 
     Alternative Utilization of Military Facilities, is repealed.

     SEC. 1032. REPORT REGARDING USE OF TAGGING SYSTEM TO IDENTIFY 
                   HYDROCARBON FUELS USED BY DEPARTMENT OF 
                   DEFENSE.

       (a) Report Required.--Not later than March 30, 1999, the 
     Secretary of Defense shall submit to Congress a report 
     evaluating the following:
       (1) The feasibility of tagging hydrocarbon fuels used by 
     the Department of Defense for the purposes of analyzing and 
     identifying such fuels.
       (2) The deterrent effect of such tagging on the theft and 
     misuse of fuels purchased by the Department.
       (3) The extent to which such tagging would assist 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.--In preparing the report, the 
     Secretary shall ensure that any tagging system for the 
     Department of Defense considered by the Secretary satisfies 
     the following requirements:
       (1) The tagging system would not harm the environment.
       (2) Each chemical that would be 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 would permit 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 would not impair or degrade the 
     suitability of tagged fuels for their intended use.
       (c) Recommendations.--The report shall include any 
     recommendations for legislation relating to the tagging of 
     hydrocarbon fuels by the Department of Defense that the 
     Secretary considers appropriate.

                Subtitle E--Armed Forces Retirement Home

     SEC. 1041. APPOINTMENT OF DIRECTOR AND DEPUTY DIRECTOR OF THE 
                   NAVAL HOME.

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

[[Page H8156]]

       (c) Definitions.--Such section is further amended by adding 
     at the end the following new subsection:
       ``(g) Definitions.--In this section:
       ``(1) The term `United States Soldiers' and Airmen's Home' 
     means the separate facility of the Retirement Home that is 
     known as the United States Soldiers' and Airmen's Home.
       ``(2) The term `Naval Home' means the separate facility of 
     the Retirement Home that is known as the Naval Home.''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 1998.

     SEC. 1042. REVISION OF INSPECTION REQUIREMENTS RELATING TO 
                   ARMED FORCES RETIREMENT HOME.

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

     ``SEC. 1518. INSPECTION OF RETIREMENT HOME.

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

     SEC. 1043. CLARIFICATION OF LAND CONVEYANCE AUTHORITY, ARMED 
                   FORCES RETIREMENT HOME.

       Section 1053 of the National Defense Authorization Act for 
     Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2650) is 
     amended--
       (1) in subsection (a), by striking out ``may convey, by 
     sale or otherwise,'' and inserting in lieu thereof ``shall 
     convey by sale''; and
       (2) by striking out subsection (b) and inserting in lieu 
     thereof the following new subsection (b):
       ``(b) Manner, Terms and Conditions of Disposal.--(1) The 
     sale under subsection (a) shall be made to a neighboring 
     nonprofit organization from whose extensive educational and 
     charitable services the public benefits and has benefited 
     from for more than 100 years, or an entity or entities 
     related to such organization, and whose substantial 
     investment in the neighborhood is consistent with the 
     continued existence and purpose of the Armed Forces 
     Retirement Home.
       ``(2) As consideration for the real property conveyance 
     under subsection (a), the purchaser selected under paragraph 
     (1) shall pay to the United States an amount equal to the 
     fair market value of the real property at its highest and 
     best economic use, as determined by the Armed Forces 
     Retirement Home Board, based on an independent appraisal.''.

            Subtitle F--Matters Relating to Defense Property

     SEC. 1051. PLAN FOR IMPROVED DEMILITARIZATION OF EXCESS AND 
                   SURPLUS DEFENSE PROPERTY.

       (a) Plan Required.--Not later than March 1, 1999, the 
     Secretary of Defense shall submit to Congress a plan to 
     address the problems with the sale or other disposal of 
     excess and surplus defense materials identified in the report 
     submitted to Congress by the Secretary of Defense on June 5, 
     1998, pursuant to section 1067 of the National Defense 
     Authorization Act for Fiscal Year 1998 (Public Law 105-85; 
     111 Stat. 1896). The plan shall provide for the following:
       (1) Implementation for all appropriate Department personnel 
     of the mandatory demilitarization training specified in 
     Department of Defense revised manual 4160.21-M-1.
       (2) Improvement of oversight of the performance of 
     demilitarization functions and the maintenance of 
     demilitarization codes throughout the life cycle of defense 
     materials.
       (3) Assignment of accurate demilitarization codes and the 
     issuance of accurate demilitarization execution instructions 
     during the system planning phases of the acquisition process.
       (4) Implementation of such recommendations of the Defense 
     Science Board task force appointed by the Under Secretary of 
     Defense for Acquisition and Technology to consider the 
     control of military excess and surplus property as the 
     Secretary of Defense considers to be appropriate.
       (b) Demilitarization Training.--In connection with the 
     demilitarization training that is required to be addressed in 
     the plan, the Secretary shall indicate the time frame for 
     full implementation of such training and the number of 
     Department of Defense personnel to be trained.
       (c) Centralized Demilitarization Functions.--In connection 
     with the matters specified in paragraphs (2) and (3) of 
     subsection (a) that are required to be addressed in the plan, 
     the Secretary shall consider options for the centralization 
     of demilitarization functions and responsibilities in a 
     single office or agency. The Secretary shall specify in the 
     plan the responsible office or agency, and indicate the time 
     frame for centralizing demilitarization functions and 
     responsibilities, unless the Secretary determines that it is 
     not practical or appropriate to centralize demilitarization 
     functions and responsibilities, in which case the Secretary 
     shall provide the reasons for the determination.
       (d) Draft Legislation.--The Secretary shall include in the 
     plan any draft legislation that the Secretary considers 
     appropriate to clarify the authority of the Government to 
     recover critical and sensitive defense property that has been 
     inadequately demilitarized.
       (e) Related Reports.--(1) The Secretary shall submit with 
     the plan--
       (A) a copy of recommendations of the Defense Science Board 
     task force referred to in subsection (a)(4); and
       (B) a copy of the report prepared by an independent 
     contractor in accordance with the Secretary's report referred 
     to in subsection (a), at the request of the Defense Logistics 
     Agency, to address options for centralizing 
     demilitarization responsibilities, including a central 
     demilitarization office and a central system for coding 
     and maintaining demilitarization codes through the life 
     cycle of the property involved.
       (2) With respect to the report of the independent 
     contractor described in paragraph (1)(B), the Secretary shall 
     provide an evaluation of the recommendations contained in the 
     report and any plans by the Secretary for implementing the 
     recommendations.

     SEC. 1052. TRANSFER OF F-4 PHANTOM II AIRCRAFT TO FOUNDATION.

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

            Subtitle G--Other Department of Defense Matters

     SEC. 1061. PILOT PROGRAM ON ALTERNATIVE NOTICE OF RECEIPT OF 
                   LEGAL PROCESS FOR GARNISHMENT OF FEDERAL PAY 
                   FOR CHILD SUPPORT AND ALIMONY.

       (a) Program Required.--The Secretary of Defense shall 
     conduct a pilot program on alternative notice procedures for 
     withholding or garnishment of pay for the payment of child 
     support and alimony under section 459 of the Social Security 
     Act (42 U.S.C. 659).
       (b) Purpose.--The purpose of the pilot program is to test 
     the efficacy of providing notice in accordance with 
     subsection (c) to the person whose pay is to be withheld or 
     garnished.
       (c) Authorization of Alternative To Providing Copy of 
     Notice or Service Received by the Secretary.--(1) Under the 
     pilot program, whenever the Secretary of Defense (acting 
     through the DOD section 459 agent) provides a section 459 
     notice to an individual, the Secretary may include as part of 
     that notice the information specified in subsection (e) in 
     lieu of sending with that notice a copy (otherwise required 
     pursuant to the parenthetical phrase in section 459(c)(2)(A) 
     of the Social Security Act) of the notice or service received 
     by the DOD section 459 agent with respect to that 
     individual's child support or alimony payment obligations.
       (2) Under the pilot program, whenever the Secretary of 
     Defense (acting through the DOD section 5520a agent) provides 
     a section 5520a notice to an individual, the Secretary may 
     include as part of that notice the information specified in 
     subsection (e) in lieu of sending with that notice a copy 
     (otherwise required pursuant to the

[[Page H8157]]

     second parenthetical phrase in section 5520a(c) of the title 
     5, United States Code) of the legal process received by the 
     DOD section 5520a agent with respect to that individual.
       (d) Definitions.--For purposes of this section:
       (1) DOD section 459 agent.--The term ``DOD section 459 
     agent'' means the agent or agents designated by the Secretary 
     of Defense under subsection (c)(1)(A) of section 459 of the 
     Social Security Act (42 U.S.C. 659) to receive orders and 
     accept service of process in matters related to child support 
     or alimony.
       (2) Section 459 notice.--The term ``section 459 notice'' 
     means, with respect to the Department of Defense, the notice 
     required by subsection (c)(2)(A) of section 459 of the Social 
     Security Act (42 U.S.C. 659) to be sent to an individual in 
     writing upon the receipt by the DOD section 459 agent of 
     notice or service with respect to the individual's child 
     support or alimony payment obligations.
       (3) DOD section 5520a agent.--The term ``DOD section 5520a 
     agent'' means a person who is designated by law or regulation 
     to accept service of process to which the Department of 
     Defense is subject under section 5520a of title 5, United 
     States Code (including the regulations promulgated under 
     subsection (k) of that section).
       (4) Section 5520a notice.--The term ``section 5520a 
     notice'' means, with respect to the Department of Defense, 
     the notice required by subsection (c) of section 5520a of 
     title 5, United States Code, to be sent in writing to an 
     employee (or, pursuant to the regulations promulgated under 
     subsection (k) of that section, to a member of the Armed 
     Forces) upon the receipt by the DOD section 5520a agent of 
     legal process covered by that section.
       (e) Alternative Requirements.--The information referred to 
     in subsection (c) that is to be included as part of a section 
     459 notice or section 5520a notice sent to an individual (in 
     lieu of sending with that notice a copy of the notice or 
     service received by the DOD section 459 agent or the DOD 
     section 5520a agent) is the following:
       (1) A description of the pertinent court order, notice to 
     withhold, or other order, process, or interrogatory received 
     by the DOD section 459 agent or the DOD section 5520a agent.
       (2) The identity of the court or judicial forum involved 
     and (in the case of a notice or process concerning the 
     ordering of a support or alimony obligation) the case number, 
     the amount of the obligation, and the name of the 
     beneficiary.
       (3) Information on how the individual may obtain from the 
     Department of Defense a copy of the notice, service, or legal 
     process, including an address and telephone number that the 
     individual may be contact for the purpose of obtaining such a 
     copy.
       (f) Period of Pilot Program.--The Secretary shall commence 
     the pilot program not later than 90 days after the date of 
     the enactment of this Act. The pilot program shall 
     terminate on September 30, 2001.
       (g) Report.--Not later than January 1, 2001, the Secretary 
     shall submit to Congress a report describing the experience 
     of the Department of Defense under the authority provided by 
     this section. The report shall include the following:
       (1) The number of section 459 notices provided by the DOD 
     section 459 agent during the period the authority provided by 
     this section was in effect.
       (2) The number of individuals who requested the DOD section 
     459 agent to provide to them a copy of the actual notice or 
     service.
       (3) Any complaint the Secretary received by reason of not 
     having provided the actual notice or service in the section 
     459 notice.
       (4) The number of section 5520a notices provided by the DOD 
     section 5520a agent during the period the authority provided 
     by this section was in effect.
       (5) The number of individuals who requested the DOD section 
     5520a agent to provide to them a copy of the actual legal 
     process.
       (6) Any complaint the Secretary received by reason of not 
     having provided the actual legal process in the section 5520a 
     notice.

     SEC. 1062. TRAINING OF SPECIAL OPERATIONS FORCES WITH 
                   FRIENDLY FOREIGN FORCES.

       (a) Requirement for Prior Approval of Secretary of 
     Defense.--Subsection (c) of section 2011 of title 10, United 
     States Code, is amended by inserting after the first sentence 
     the following new sentence: ``The regulations shall require 
     that training activities may be carried out under this 
     section only with the prior approval of the Secretary of 
     Defense.''.
       (b) Elements of Annual Report.--Subsection (e) of such 
     section is amended by adding at the end the following new 
     paragraphs:
       ``(5) A summary of the expenditures under this section 
     resulting from the training for which expenses were paid 
     under this section.
       ``(6) A discussion of the unique military training benefit 
     to United States special operations forces derived from the 
     training activities for which expenses were paid under this 
     section.''.

     SEC. 1063. RESEARCH GRANTS COMPETITIVELY AWARDED TO SERVICE 
                   ACADEMIES.

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

     ``Sec. 4358. Grants for faculty research for scientific, 
       literary, and educational purposes: acceptance; authorized 
       grantees

       ``(a) Acceptance of Research Grants.--The Secretary of the 
     Army may authorize the Superintendent of the Academy to 
     accept qualifying research grants under this section. Any 
     such grant may only be accepted if the work under the grant 
     is to be carried out by a professor or instructor of the 
     Academy for a scientific, literary, or educational purpose.
       ``(b) Qualifying Grants.--A qualifying research grant under 
     this section is a grant that is awarded on a competitive 
     basis by an entity referred to in subsection (c) for a 
     research project with a scientific, literary, or educational 
     purpose.
       ``(c) Entities From Which Grants May be Accepted.--A grant 
     may be accepted under this section only from a corporation, 
     fund, foundation, educational institution, or similar entity 
     that is organized and operated primarily for scientific, 
     literary, or educational purposes.
       ``(d) Administration of Grant Funds.--The Secretary shall 
     establish an account for administering funds received as 
     research grants under this section. The Superintendent shall 
     use the funds in the account in accordance with applicable 
     regulations and the terms and conditions of the grants 
     received.
       ``(e) Related Expenses.--Subject to such limitations as may 
     be provided in appropriations Acts, appropriations 
     available for the Academy may be used to pay expenses 
     incurred by the Academy in applying for, and otherwise 
     pursuing, award of a qualifying research grant.
       ``(f) Regulations.--The Secretary of the Army shall 
     prescribe regulations for the administration of this 
     section.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``4358. Grants for faculty research for scientific, literary, and 
              educational purposes: acceptance; authorized grantees.''.

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

     ``Sec. 6977. Grants for faculty research for scientific, 
       literary, and educational purposes: acceptance; authorized 
       grantees

       ``(a) Acceptance of Research Grants.--The Secretary of the 
     Navy may authorize the Superintendent of the Academy to 
     accept qualifying research grants under this section. Any 
     such grant may only be accepted if the work under the grant 
     is to be carried out by a professor or instructor of the 
     Academy for a scientific, literary, or educational purpose.
       ``(b) Qualifying Grants.--A qualifying research grant under 
     this section is a grant that is awarded on a competitive 
     basis by an entity referred to in subsection (c) for a 
     research project with a scientific, literary, or educational 
     purpose.
       ``(c) Entities From Which Grants May be Accepted.--A grant 
     may be accepted under this section only from a corporation, 
     fund, foundation, educational institution, or similar entity 
     that is organized and operated primarily for scientific, 
     literary, or educational purposes.
       ``(d) Administration of Grant Funds.--The Secretary shall 
     establish an account for administering funds received as 
     research grants under this section. The Superintendent shall 
     use the funds in the account in accordance with applicable 
     regulations and the terms and conditions of the grants 
     received.
       ``(e) Related Expenses.--Subject to such limitations as may 
     be provided in appropriations Acts, appropriations available 
     for the Academy may be used to pay expenses incurred by the 
     Academy in applying for, and otherwise pursuing, award of a 
     qualifying research grant.
       ``(f) Regulations.--The Secretary of the Navy shall 
     prescribe regulations for the administration of this 
     section.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``6977. Grants for faculty research for scientific, literary, and 
              educational purposes: acceptance; authorized grantees.''.

     SEC. 1064. DEPARTMENT OF DEFENSE USE OF FREQUENCY SPECTRUM.

       (a) Finding.--Congress finds that the report submitted to 
     Congress by the Secretary of Defense on April 2, 1998, 
     regarding the reallocation of the frequency spectrum used or 
     dedicated to the Department of Defense and the intelligence 
     community does not include a discussion of the costs to the 
     Department of Defense that are associated with past and 
     potential future reallocations of the frequency spectrum, 
     although such a discussion was to be included in the report 
     as directed in connection with the enactment of the National 
     Defense Authorization Act for Fiscal Year 1998.
       (b) Additional Report.--The Secretary of Defense shall, not 
     later than October 31, 1998, submit to the Committee on Armed 
     Services of the Senate and the Committee on National Security 
     of the House of Representatives a report that discusses the 
     costs referred to in subsection (a).
       (c) Relocation of Federal Frequencies.--Section 113(g)(1) 
     of the National Telecommunications and Information 
     Administration Organization Act (47 U.S.C. 923(g)(1)) is 
     amended--
       (1) by striking out ``(1) In general.--In order'' and 
     inserting in lieu thereof the following:
       ``(1) In general.--
       ``(A) Authority of federal entities to accept 
     compensation.--In order'';
       (2) in subparagraph (A), as so designated, by striking out 
     the second, third, and fourth sentences and inserting in lieu 
     thereof the following: ``Any such Federal entity which 
     proposes to so relocate shall notify the NTIA, which in 
     turn shall notify the Commission, before the auction 
     concerned of the marginal costs anticipated to be 
     associated with such relocation or with modifications 
     necessary to accommodate prospective licensees. The 
     Commission in turn shall notify potential bidders of the 
     estimated relocation or modification costs based on the 
     geographic area covered by the proposed licenses before 
     the auction.''; and

[[Page H8158]]

       (3) by adding at the end the following:
       ``(B) Requirement to compensate federal entities.--Any 
     person on whose behalf a Federal entity incurs costs under 
     subparagraph (A) shall compensate the Federal entity in 
     advance for such costs. Such compensation may take the form 
     of a cash payment or in-kind compensation.
       ``(C) Disposition of payments.--
       ``(i) Payment by electronic funds transfer.--A person 
     making a cash payment under this paragraph shall make the 
     cash payment by depositing the amount of the payment by 
     electronic funds transfer in the account of the Federal 
     entity concerned in the Treasury of the United States or in 
     another account as authorized by law.
       ``(ii) Availability.--Subject to the provisions of 
     authorization Acts and appropriations Acts, amounts deposited 
     under this subparagraph shall be available to the Federal 
     entity concerned to pay directly the costs of relocation 
     under this paragraph, to repay or make advances to 
     appropriations or funds which do or will initially bear all 
     or part of such costs, or to refund excess sums when 
     necessary.
       ``(D) Application to certain other relocations.--The 
     provisions of this paragraph also apply to any Federal entity 
     that operates a Federal Government station assigned to used 
     electromagnetic spectrum identified for reallocation under 
     subsection (a) if before August 5, 1997, the Commission has 
     not identified that spectrum for service or assigned licenses 
     or otherwise authorized service for that spectrum.
       ``(E) Implementation procedures.--The NTIA and the 
     Commission shall develop procedures for the implementation of 
     this paragraph, which procedures shall include a process for 
     resolving any differences that arise between the Federal 
     Government and commercial licensees regarding estimates of 
     relocation or modification costs under this paragraph.
       ``(F) Inapplicability to certain relocations.--With the 
     exception of the band of frequencies located at 1710-1755 
     megahertz, the provisions of this paragraph shall not apply 
     to Federal spectrum identified for reallocation in the first 
     reallocation report submitted to the President and Congress 
     under subsection (a).''.
       (d) Reports on Costs of Relocations.--The head of each 
     department or agency of the Federal Government shall include 
     in the annual budget submission of such department or agency 
     to the Director of the Office of Management and Budget a 
     report assessing the costs to be incurred by such department 
     or agency as a result of any frequency relocations of such 
     department or agency that are anticipated under section 113 
     of the National Telecommunications Information Administration 
     Organization Act (47 U.S.C. 923) as of the date of such 
     report.

     SEC. 1065. DEPARTMENT OF DEFENSE AVIATION ACCIDENT 
                   INVESTIGATIONS.

       (a) Report Required.--Not later than March 31, 1999, the 
     Secretary of Defense shall submit to Congress a report on the 
     roles of the Office of the Secretary of Defense and of the 
     Joint Staff in the investigation of Department of Defense 
     aviation accidents.
       (b) Content of Report.--The report shall include the 
     following:
       (1) An assessment of whether the Office of the Secretary of 
     Defense and the Joint Staff should have more direct 
     involvement in the investigation of military aviation 
     accidents.
       (2) The advisability of the Office of the Secretary of 
     Defense, the Joint Staff, or another Department of Defense 
     entity independent of the military departments supervising 
     the conduct of aviation accident investigations.
       (3) An assessment of the minimum training and experience 
     required for aviation accident investigation board presidents 
     and board members.
       (4) An assessment whether or not the procedures for sharing 
     the results of military aviation accident investigations 
     among the military departments should be improved.
       (5) An assessment of the advisability of centralized 
     training and instruction for military aircraft accident 
     investigators.
       (c) Uniform Regulations for Provision of Accident 
     Investigation Update Information.--The Secretary of Defense 
     shall prescribe regulations, which shall be applied uniformly 
     across the Department of Defense, establishing procedures by 
     which the military departments shall provide to the family 
     members of any person involved in a military aviation 
     accident periodic update reports on the conduct and progress 
     of investigations into the accident.

     SEC. 1066. INVESTIGATION OF ACTIONS RELATING TO 174TH FIGHTER 
                   WING OF NEW YORK AIR NATIONAL GUARD.

       (a) Investigation.--The Inspector General of the Department 
     of Defense shall conduct a new investigation into the 
     circumstances that led to the December 1, 1995, grounding of 
     the 174th Fighter Wing of the New York Air National Guard. 
     The investigation shall review those circumstances, examine 
     the administrative and disciplinary actions taken against 
     members of that wing, and determine whether those 
     administrative and disciplinary measures were appropriate.
       (b) Report.--Not later than 180 days after the date of the 
     enactment of this Act, the Inspector General shall submit to 
     the Committee on Armed Services of the Senate and the 
     Committee on National Security of the House of 
     Representatives a report describing the results of the 
     investigation under subsection (a).

     SEC. 1067. PROGRAM TO COMMEMORATE 50TH ANNIVERSARY OF THE 
                   KOREAN WAR.

       (a) Limitation on Expenditures.--Subsection (f) of section 
     1083 of the National Defense Authorization Act for Fiscal 
     Year 1998 (Public Law 105-85; 111 Stat. 1918; 10 U.S.C. 113 
     note) is amended to read as follows:
       ``(f) Limitation on Expenditures.--The total amount 
     expended by the Department of Defense to carry out the 
     commemorative program for fiscal year 1999 may not exceed 
     $1,820,000.''.
       (b) Redesignation of Commemoration Account.--The account in 
     the Treasury known as the ``Department of Defense Korean 
     Conflict Commemoration Account'' is redesignated as the 
     ``Department of Defense Korean War Commemoration Account''.
       (c) Other References to Korean War.--Such section is 
     further amended--
       (1) in the section heading, by striking out ``Korean 
     conflict'' and inserting in lieu thereof ``Korean War'';
       (2) by striking out ``Korean conflict'' each place it 
     appears and inserting in lieu thereof ``Korean War'';
       (3) in subsection (c), by striking out ``names `The 
     Department of Defense Korean Conflict Commemoration','' and 
     inserting in lieu thereof ``name the `Department of Defense 
     Korean War Commemoration',''; and
       (4) in subsection (d)(1), by striking out ``Korean 
     Conflict'' and inserting in lieu thereof ``Korean War''.
       (d) Cross References.--Any reference to the Department of 
     Defense Korean Conflict Commemoration or the Department of 
     Defense Korean Conflict Commemoration Account in any law, 
     regulation, document, record, or other paper of the United 
     States shall be considered to be a reference to the 
     Department of Defense Korean War Commemoration or the 
     Department of Defense Korean War Commemoration Account, 
     respectively.

     SEC. 1068. DESIGNATION OF AMERICA'S NATIONAL MARITIME MUSEUM.

       (a) In General.--America's National Maritime Museum is 
     comprised of those museums designated by law to be museums of 
     America's National Maritime Museum on the basis that they--
       (1) house a collection of maritime artifacts clearly 
     representing the Nation's maritime heritage; and
       (2) provide outreach programs to educate the public about 
     the Nation's maritime heritage.
       (b) Initial Designation of Museums.--The following museums 
     (meeting the criteria specified in subsection (a)) are hereby 
     designated as museums of America's National Maritime Museum:
       (1) The Mariners' Museum, located at 100 Museum Drive, 
     Newport News, Virginia.
       (2) The South Street Seaport Museum, located at 207 Front 
     Street, New York, New York.
       (c) Future Designation of Other Museums Not Precluded.--The 
     designation of the museums referred to in subsection (b) as 
     museums of America's National Maritime Museum does not 
     preclude the designation by law after the date of the 
     enactment of this Act of any other museum that meets the 
     criteria specified in subsection (a) as a museum of America's 
     National Maritime Museum.
       (d) Reference to Museums.--Any reference in any law, map, 
     regulation, document, paper, or other record of the United 
     States to a museum designated by law to be a museum of 
     America's National Maritime Museum shall be deemed to be a 
     reference to that museum as a museum of America's National 
     Maritime Museum.

     SEC. 1069. TECHNICAL AND CLERICAL AMENDMENTS.

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

``484. Annual report on aircraft inventory.''.

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

``2302c. Implementation of electronic commerce capability.''.

       (4) The table of subchapters at the beginning of chapter 
     148 is amended--
       (A) by striking out ``2491'' in the item relating to 
     subchapter I and inserting in lieu thereof ``2500''; and
       (B) by striking out the item relating to subchapter IV and 
     inserting in lieu thereof the following:

``IV. Manufacturing Technology..................................2521''.

       (5) The subchapter heading for subchapter IV of chapter 148 
     is amended to read as follows:

              ``SUBCHAPTER IV--MANUFACTURING TECHNOLOGY''

       (6) Section 7045(c) is amended by striking out ``the'' 
     after ``are subject to''.
       (7) Section 7572(b) is repealed.
       (8) Section 12683(b)(2) is amended by striking out ``; or'' 
     at the end and inserting in lieu thereof a period.
       (b) Public Law 105-85.--Effective as of November 18, 1997, 
     and as if included therein as enacted, the National Defense 
     Authorization Act for Fiscal Year 1998 (Public Law 105-85) is 
     amended as follows:
       (1) Section 389(g) (111 Stat. 1715) is amended by striking 
     out ``Secretary of Defense'' and inserting in lieu thereof 
     ``Comptroller General''.
       (2) Section 1006(a) (111 Stat. 1869) is amended by striking 
     out ``or'' in the quoted matter and inserting in lieu thereof 
     ``and''.
       (3) Section 3133(b)(3) (111 Stat. 2036) is amended by 
     striking out ``III'' and inserting in lieu thereof ``XIV''.
       (c)  Defense Against Weapons of Mass Destruction Act of 
     1996.--The Defense Against Weapons of Mass Destruction Act of 
     1996 (title XIV of Public Law 104-201) is amended as follows:
       (1) Section 1423(b)(4) (50 U.S.C. 2332(b)(4); 110 Stat. 
     2726) is amended by striking out ``(22 U.S.C. 2156a(c))'' and 
     inserting in lieu thereof ``(42 U.S.C. 2139a(c))''.
       (2) Section 1441(b)(2) (50 U.S.C. 2351(b)(2); 110 Stat. 
     2727) is amended by striking out ``established under section 
     1342'' and inserting in lieu thereof ``of the National 
     Security Council''.

[[Page H8159]]

       (3) Section 1444 (50 U.S.C. 2354; 110 Stat. 2730) is 
     amended by striking out ``1341'' and ``1342'' and inserting 
     in lieu thereof ``1441'' and ``1442'', respectively.
       (4) Section 1453(1) (50 U.S.C. 2363(1); 110 Stat. 2730) is 
     amended by striking out ``the National Defense Authorization 
     Act for Fiscal Years 1993 and 1994'' and inserting in lieu 
     thereof ``title XIV of the National Defense Authorization Act 
     for Fiscal Year 1993 (Public Law 102-484; 22 U.S.C. 5901 et 
     seq.)''.
       (d) Other Acts.--
       (1) Section 18(c)(1) of the Office of Federal Procurement 
     Policy Act (41 U.S.C. 416(c)(1)) is amended by striking out 
     the period at the end of subparagraph (A) and inserting in 
     lieu thereof a semicolon.
       (2) Section 3(c)(2) of Public Law 101-533 (22 U.S.C. 
     3142(c)(2)) is amended by striking out ``included in the most 
     recent plan submitted to the Congress under section 2506 of 
     title 10'' and inserting in lieu thereof ``identified in the 
     most recent assessment prepared under section 2505 of title 
     10''.
       (e) Coordination With Other Amendments.--For purposes of 
     applying amendments made by provisions of this Act other than 
     provisions of this section, this section shall be treated as 
     having been enacted immediately before the other provisions 
     of this Act.

                       Subtitle H--Other Matters

     SEC. 1071. ACT CONSTITUTING PRESIDENTIAL APPROVAL OF VESSEL 
                   WAR RISK INSURANCE REQUESTED BY THE SECRETARY 
                   OF DEFENSE.

       (a) In General.--Section 1205(b) of the Merchant Marine 
     Act, 1936 (46 U.S.C. App. 1285(b)), is amended by adding at 
     the end the following new sentence: ``The signature of the 
     President (or of an official designated by the President) on 
     the agreement shall be treated as an expression of the 
     approval required under section 1202(a) to provide the 
     insurance.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply only to a signature of the President (or of an 
     official designated by the President) on or after the date of 
     the enactment of this Act.

     SEC. 1072. EXTENSION AND REAUTHORIZATION OF DEFENSE 
                   PRODUCTION ACT OF 1950.

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

     SEC. 1073. REQUIREMENT THAT BURIAL FLAGS FURNISHED BY THE 
                   SECRETARY OF VETERANS AFFAIRS BE WHOLLY 
                   PRODUCED IN THE UNITED STATES.

       (a) Requirement.--Section 2301 of title 38, United States 
     Code, as amended by section 517, is further amended by adding 
     at the end the following new subsection:
       ``(g)(1) The Secretary may not procure any flag for the 
     purposes of this section that is not wholly produced in the 
     United States.
       ``(2)(A) The Secretary may waive the requirement of 
     paragraph (1) if the Secretary determines--
       ``(i) that the requirement cannot be reasonably met; or
       ``(ii) that compliance with the requirement would not be in 
     the national interest of the United States.
       ``(B) The Secretary shall submit to Congress in writing 
     notice of a determination under subparagraph (A) not later 
     than 30 days after the date on which such determination is 
     made.
       ``(3) For the purpose of paragraph (1), a flag shall be 
     considered to be wholly produced in the United States only 
     if--
       ``(A) the materials and components of the flag are entirely 
     grown, manufactured, or created in the United States;
       ``(B) the processing (including spinning, weaving, dyeing, 
     and finishing) of such materials and components is entirely 
     performed in the United States; and
       ``(C) the manufacture and assembling of such materials and 
     components into the flag is entirely performed in the United 
     States.''.
       (b) Effective Date.--Subsection (g) of section 2301 of 
     title 38, United States Code, as added by subsection (a), 
     shall apply to flags procured by the Secretary of Veterans 
     Affairs for the purposes of section 2301 of title 38, United 
     States Code, after the end of the 30-day period beginning on 
     the date of the enactment of this Act.

     SEC. 1074. SENSE OF CONGRESS CONCERNING TAX TREATMENT OF 
                   PRINCIPAL RESIDENCE OF MEMBERS OF ARMED FORCES 
                   WHILE AWAY FROM HOME ON ACTIVE DUTY.

       It is the sense of Congress that a member of the Armed 
     Forces should be treated for purposes of section 121 of the 
     Internal Revenue Code of 1986 as using property as a 
     principal residence during any continuous period that the 
     member is serving on active duty for 180 days or more with 
     the Armed Forces, but only if the member used the property as 
     a principal residence for any period during or immediately 
     before that period of active duty.

     SEC. 1075. CLARIFICATION OF STATE AUTHORITY TO TAX 
                   COMPENSATION PAID TO CERTAIN EMPLOYEES.

       (a) Limitation on State Authority To Tax Compensation Paid 
     to Individuals Performing Services at Fort Campbell, 
     Kentucky.--
       (1) In general.--Chapter 4 of title 4, United States Code, 
     is amended by adding at the end the following:

     ``Sec. 115. Limitation on State authority to tax compensation 
       paid to individuals performing services at Fort Campbell, 
       Kentucky

       ``Pay and compensation paid to an individual for personal 
     services at Fort Campbell, Kentucky, shall be subject to 
     taxation by the State or any political subdivision thereof of 
     which such employee is a resident.''.
       (2) Conforming amendment.--The table of sections for 
     chapter 4 of title 4, United States Code, is amended by 
     adding at the end the following:

``115. Limitation on State authority to tax compensation paid to 
              individuals performing services at Fort Campbell, 
              Kentucky.''.

       (3) Effective date.--The amendments made by this subsection 
     shall apply to pay and compensation paid after the date of 
     the enactment of this Act.
       (b) Clarification of State Authority To Tax Compensation 
     Paid to Certain Federal Employees.--
       (1) In general.--Section 111 of title 4, United States 
     Code, is amended--
       (A) by inserting ``(a) General Rule.--'' before ``The 
     United States'' the first place it appears; and
       (B) by adding at the end the following:
       ``(b) Treatment of Certain Federal Employees Employed at 
     Federal Hydroelectric Facilities Located on the Columbia 
     River.--Pay or compensation paid by the United States for 
     personal services as an employee of the United States at a 
     hydroelectric facility--
       ``(1) which is owned by the United States;
       ``(2) which is located on the Columbia River; and
       ``(3) portions of which are within the States of Oregon and 
     Washington,

     shall be subject to taxation by the State or any political 
     subdivision thereof of which such employee is a resident.
       ``(c) Treatment of Certain Federal Employees Employed at 
     Federal Hydroelectric Facilities Located on the Missouri 
     River.--Pay or compensation paid by the United States for 
     personal services as an employee of the United States at a 
     hydroelectric facility--
       ``(1) which is owned by the United States;
       ``(2) which is located on the Missouri River; and
       ``(3) portions of which are within the States of South 
     Dakota and Nebraska,

     shall be subject to taxation by the State or any political 
     subdivision thereof of which such employee is a resident.''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply to pay and compensation paid after the date of 
     the enactment of this Act.

           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

Sec. 1101. Defense Advanced Research Projects Agency experimental 
              personnel management program for technical personnel.
Sec. 1102. Maximum pay rate comparability for faculty members of the 
              United States Air Force Institute of Technology.
Sec. 1103. Authority for release to Coast Guard of drug test results of 
              civil service mariners of the Military Sealift Command.
Sec. 1104. Limitations on back pay awards.
Sec. 1105. Restoration of annual leave accumulated by civilian 
              employees at installations in the Republic of Panama to 
              be closed pursuant to the Panama Canal Treaty of 1977.
Sec. 1106. Repeal of program providing preference for employment of 
              military spouses in military child care facilities.
Sec. 1107. Observance of certain holidays at duty posts outside the 
              United States.
Sec. 1108. Continuation of random drug testing program for certain 
              Department of Defense employees.
Sec. 1109. Department of Defense employee voluntary early retirement 
              authority.

     SEC. 1101. DEFENSE ADVANCED RESEARCH PROJECTS AGENCY 
                   EXPERIMENTAL PERSONNEL MANAGEMENT PROGRAM FOR 
                   TECHNICAL PERSONNEL.

       (a) Program Authorized.--During the five-year period 
     beginning on the date of the enactment of this Act, the 
     Secretary of Defense may carry out a program of experimental 
     use of the special personnel management authority provided in 
     subsection (b) in order to facilitate recruitment of eminent 
     experts in science or engineering for research and 
     development projects administered by the Defense Advanced 
     Research Projects Agency.
       (b) Special Personnel Management Authority.--Under the 
     program, the Secretary may--
       (1) appoint scientists and engineers from outside the civil 
     service and uniformed services (as such terms are defined in 
     section 2101 of title 5, United States Code) to not more than 
     20 scientific and engineering positions in the Defense 
     Advanced Research Projects Agency without regard to any 
     provision of title 5, United States Code, governing the 
     appointment of employees in the civil service;
       (2) prescribe the rates of basic pay for positions to which 
     employees are appointed under paragraph (1) at rates not in 
     excess of the maximum rate of basic pay authorized for 
     senior-level positions under section 5376 of title 5, United 
     States Code, notwithstanding any provision of such title 
     governing the rates of pay or classification of employees in 
     the executive branch; and
       (3) pay any employee appointed under paragraph (1) payments 
     in addition to basic pay within the limit applicable to the 
     employee under subsection (d)(1).
       (c) Limitation on Term of Appointment.--(1) Except as 
     provided in paragraph (2), the

[[Page H8160]]

     service of an employee under an appointment under subsection 
     (b)(1) may not exceed four years.
       (2) The Secretary may, in the case of a particular 
     employee, extend the period to which service is limited under 
     paragraph (1) by up to two years if the Secretary determines 
     that such action is necessary to promote the efficiency of 
     the Defense Advanced Research Projects Agency.
       (d) Limitations on Additional Payments.--(1) The total 
     amount of the additional payments paid to an employee under 
     subsection (b)(3) for any 12-month period may not exceed the 
     least of the following amounts:
       (A) $25,000.
       (B) The amount equal to 25 percent of the employee's annual 
     rate of basic pay.
       (C) The amount of the limitation that is applicable for a 
     calendar year under section 5307(a)(1) of title 5, United 
     States Code.
       (2) An employee appointed under subsection (b)(1) is not 
     eligible for any bonus, monetary award, or other monetary 
     incentive for service except for payments authorized under 
     subsection (b)(3).
       (e) Period of Program.--(1) The program authorized under 
     this section shall terminate at the end of the five-year 
     period referred to in subsection (a).
       (2) After the termination of the program--
       (A) no appointment may be made under paragraph (1) of 
     subsection (b);
       (B) a rate of basic pay prescribed under paragraph (2) of 
     that subsection may not take effect for a position; and
       (C) no period of service may be extended under subsection 
     (c)(1).
       (f) Savings Provisions.--In the case of an employee who, on 
     the day before the termination of the program, is serving in 
     a position pursuant to an appointment under subsection 
     (b)(1)--
       (1) the termination of the program does not terminate the 
     employee's employment in that position before the expiration 
     of the lesser of--
       (A) the period for which the employee was appointed; or
       (B) the period to which the employee's service is limited 
     under subsection (c), including any extension made under 
     paragraph (2) of that subsection before the termination of 
     the program; and
       (2) the rate of basic pay prescribed for the position under 
     subsection (b)(2) may not be reduced for so long (within the 
     period applicable to the employee under paragraph (1)) as the 
     employee continues to serve in the position without a break 
     in service.
       (g) Annual Report.--(1) Not later than October 15 of each 
     year, beginning in 1999 and ending in 2004, the Secretary of 
     Defense shall submit a report on the program to the Committee 
     on Armed Services of the Senate and the Committee on National 
     Security of the House of Representatives. The report 
     submitted in a year shall cover the 12-month period ending on 
     the day before the anniversary, in that year, of the date of 
     the enactment of this Act.
       (2) The annual report shall contain, for the period covered 
     by the report, the following:
       (A) A detailed discussion of the exercise of authority 
     under this section.
       (B) The sources from which individuals appointed under 
     subsection (b)(1) were recruited.
       (C) The methodology used for identifying and selecting such 
     individuals.
       (D) Any additional information that the Secretary considers 
     helpful for assessing the utility of the authority under this 
     section.

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

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

     SEC. 1103. AUTHORITY FOR RELEASE TO COAST GUARD OF DRUG TEST 
                   RESULTS OF CIVIL SERVICE MARINERS OF THE 
                   MILITARY SEALIFT COMMAND.

       (a) In General.--Chapter 643 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 7479. Civil service mariners of Military Sealift 
       Command: release of drug test results to Coast Guard

       ``(a) Release of Drug Test Results to Coast Guard.--The 
     Secretary of the Navy may release to the Commandant of the 
     Coast Guard the results of a drug test of any employee of the 
     Department of the Navy who is employed in any capacity on 
     board a vessel of the Military Sealift Command. Any such 
     release shall be in accordance with the standards and 
     procedures applicable to the disclosure and reporting to the 
     Coast Guard of drug tests results and drug test records of 
     individuals employed on vessels documented under the laws of 
     the United States.
       ``(b) Waiver.--The results of a drug test of an employee 
     may be released under subsection (a) without the prior 
     written consent of the employee that is otherwise required 
     under section 503(e) of the Supplemental Appropriations Act, 
     1987 (5 U.S.C. 7301 note).''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``7479. Civil service mariners of Military Sealift Command: release of 
              drug test results to Coast Guard.''.

     SEC. 1104. LIMITATIONS ON BACK PAY AWARDS.

       (a) In General.--Section 5596(b) of title 5, United States 
     Code, is amended--
       (1) by redesignating paragraph (4) as paragraph (5); and
       (2) by inserting after paragraph (3) the following new 
     paragraph:
       ``(4) The pay, allowances, or differentials granted under 
     this section for the period for which an unjustified or 
     unwarranted personnel action was in effect shall not exceed 
     that authorized by the applicable law, rule, regulations, or 
     collective bargaining agreement under which the unjustified 
     or unwarranted personnel action is found, except that in no 
     case may pay, allowances, or differentials be granted under 
     this section for a period beginning more than 6 years before 
     the date of the filing of a timely appeal or, absent such 
     filing, the date of the administrative determination.''.
       (b) Conforming Amendment.--Section 7121 of title 5, United 
     States Code, is amended by adding at the end the following 
     new subsection:
       ``(h) Settlements and awards under this chapter shall be 
     subject to the limitations in section 5596(b)(4) of this 
     title.''.

     SEC. 1105. RESTORATION OF ANNUAL LEAVE ACCUMULATED BY 
                   CIVILIAN EMPLOYEES AT INSTALLATIONS IN THE 
                   REPUBLIC OF PANAMA TO BE CLOSED PURSUANT TO THE 
                   PANAMA CANAL TREATY OF 1977.

       Section 6304(d)(3)(A) of title 5, United States Code, is 
     amended by inserting ``the closure of an installation of the 
     Department of Defense in the Republic of Panama in accordance 
     with the Panama Canal Treaty of 1977,'' after ``2687 note) 
     during any period,''.

     SEC. 1106. REPEAL OF PROGRAM PROVIDING PREFERENCE FOR 
                   EMPLOYMENT OF MILITARY SPOUSES IN MILITARY 
                   CHILD CARE FACILITIES.

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

     SEC. 1107. OBSERVANCE OF CERTAIN HOLIDAYS AT DUTY POSTS 
                   OUTSIDE THE UNITED STATES.

       Section 6103(b) of title 5, United States Code, is amended 
     by inserting after paragraph (2) the following new paragraph:
       ``(3) Instead of a holiday that is designated under 
     subsection (a) to occur on a Monday, for an employee at a 
     duty post outside the United States whose basic workweek is 
     other than Monday through Friday, and for whom Monday is a 
     regularly scheduled workday, the legal public holiday is the 
     first workday of the workweek in which the Monday designated 
     for the observance of such holiday under subsection (a) 
     occurs.''.

     SEC. 1108. CONTINUATION OF RANDOM DRUG TESTING PROGRAM FOR 
                   CERTAIN DEPARTMENT OF DEFENSE EMPLOYEES.

       (a) Continuation of Existing Program.--The Secretary of 
     Defense shall continue to actively carry out the drug testing 
     program, originally required by section 3(a) of Executive 
     Order 12564 (51 Fed. Reg. 32889; September 15, 1986), 
     involving civilian employees of the Department of Defense who 
     are considered to be employees in sensitive positions. The 
     Secretary shall comply with the drug testing procedures 
     prescribed pursuant to section 4 of the Executive Order.
       (b) Testing Upon Reasonable Suspicion of Illegal Drug 
     Use.--The Secretary of Defense shall ensure that the drug 
     testing program referred to in subsection (a) authorizes the 
     testing of a civilian employee of the Department of Defense 
     for illegal drug use when there is a reasonable suspicion 
     that the employee uses illegal drugs.
       (c) Notification to Applicants.--The Secretary of Defense 
     shall notify persons who apply for employment with the 
     Department of Defense that, as a condition of employment by 
     the Department, the person may be required to submit to drug 
     testing under the drug testing program required by Executive 
     Order 12564 (51 Fed. Reg. 32889; September 15, 1986) pursuant 
     to the terms of the Executive Order.
       (d) Definitions.--In this section, the terms ``illegal 
     drugs'' and ``employee in a sensitive position'' have the 
     meanings given such terms in section 7 of Executive Order 
     12564 (51 Fed. Reg. 32889; September 15, 1986).

     SEC. 1109. DEPARTMENT OF DEFENSE EMPLOYEE VOLUNTARY EARLY 
                   RETIREMENT AUTHORITY.

       (a) Civil Service Retirement System.--Section 8336 of title 
     5, United States Code, is amended--
       (1) in subsection (d)(2), by inserting ``except in the case 
     of an employee described in subsection (o)(1),'' after 
     ``(2)''; and
       (2) by adding at the end the following:
       ``(o)(1) An employee of the Department of Defense who is 
     separated from the service under conditions described in 
     paragraph (2) after completing 25 years of service or after 
     becoming 50 years of age and completing 20 years of service 
     is entitled to an annuity.
       ``(2) Paragraph (1) applies to an employee who--
       ``(A) has been employed continuously by the Department of 
     Defense for more than 30 days before the date on which the 
     Secretary concerned requests the determinations required 
     under in subparagraph (D)(i);
       ``(B) is serving under an appointment that is not limited 
     by time;
       ``(C) has not received a decision notice of involuntary 
     separation for misconduct or unacceptable performance that is 
     pending decision; and
       ``(D) is separated from the service voluntarily during a 
     period in which--
       ``(i) the Department of Defense or the military department 
     or subordinate organization within the Department of Defense 
     or military department in which the employee is serving is 
     undergoing a major reorganization, a major reduction in 
     force, or a major transfer of function, and employees 
     comprising a significant percentage of the employees serving 
     in that department or organization are to be separated or 
     subject to an immediate reduction in the rate of basic pay 
     (without regard to subchapter VI of chapter 53, or comparable 
     provisions of law), as determined by the Office of Personnel 
     Management (under

[[Page H8161]]

     regulations prescribed by the Office) upon the request of the 
     Secretary concerned; and
       ``(ii) the employee is within the scope of an offer of 
     voluntary early retirement (as defined by organizational 
     unit, occupational series or level, geographical location, 
     any other similar factor that the Office of Personnel 
     Management determines appropriate, or any combination of such 
     definitions of scope), as determined by the Secretary 
     concerned under regulations prescribed by the Office.
       ``(3) In this subsection, the term `Secretary concerned' 
     means--
       ``(A) the Secretary of Defense, with respect to an employee 
     of the Department of Defense not employed in a position in a 
     military department;
       ``(B) the Secretary of the Army, with respect to an 
     employee of the Department of the Army;
       ``(C) the Secretary of the Navy, with respect to an 
     employee of the Department of the Navy; and
       ``(D) the Secretary of the Air Force, with respect to an 
     employee of the Department of the Air Force.''.
       (b) Federal Employees' Retirement System.--Section 8414 of 
     such title is amended--
       (1) in subsection (b)(1)(B), by inserting ``except in the 
     case of an employee described in subsection (d)(1),'' after 
     ``(B)''; and
       (2) by adding at the end the following:
       ``(d)(1) An employee of the Department of Defense who is 
     separated from the service under conditions described in 
     paragraph (2) after completing 25 years of service or after 
     becoming 50 years of age and completing 20 years of service 
     is entitled to an annuity.
       ``(2) Paragraph (1) applies to an employee who--
       ``(A) has been employed continuously by the Department of 
     Defense for more than 30 days before the date on which the 
     Secretary concerned requests the determinations required 
     under subparagraph (D)(i);
       ``(B) is serving under an appointment that is not limited 
     by time;
       ``(C) has not received a decision notice of involuntary 
     separation for misconduct or unacceptable performance that is 
     pending decision; and
       ``(D) is separated from the service voluntarily during a 
     period in which--
       ``(i) the Department of Defense or the military department 
     or subordinate organization within the Department of Defense 
     or military department in which the employee is serving is 
     undergoing a major reorganization, a major reduction in 
     force, or a major transfer of function, and employees 
     comprising a significant percentage of the employees serving 
     in that department or organization are to be separated or 
     subject to an immediate reduction in the rate of basic pay 
     (without regard to subchapter VI of chapter 53, or comparable 
     provisions of law), as determined by the Office of Personnel 
     Management (under regulations prescribed by the Office) upon 
     the request of the Secretary concerned; and
       ``(ii) the employee is within the scope of an offer of 
     voluntary early retirement (as defined by 
     organizational unit, occupational series or level, 
     geographical location, any other similar factor that the 
     Office of Personnel Management determines appropriate, or 
     any combination of such definitions of scope), as 
     determined by the Secretary concerned under regulations 
     prescribed by the Office.
       ``(3) In this subsection, the term `Secretary concerned' 
     means--
       ``(A) the Secretary of Defense, with respect to an employee 
     of the Department of Defense not employed in a position in a 
     military department;
       ``(B) the Secretary of the Army, with respect to an 
     employee of the Department of the Army;
       ``(C) the Secretary of the Navy, with respect to an 
     employee of the Department of the Navy; and
       ``(D) the Secretary of the Air Force, with respect to an 
     employee of the Department of the Air Force.''.
       (c) Conforming Amendments.--(1) Section 8339(h) of such 
     title is amended by striking out ``or (j)'' in the first 
     sentence and inserting in lieu thereof ``(j), or (o)''.
       (2) Section 8464(a)(1)(A)(i) of such title is amended by 
     striking out ``or (b)(1)(B)'' and inserting in lieu thereof 
     ``, (b)(1)(B), or (d)''.
       (d) Effective Date; Applicability.--The amendments made by 
     this section--
       (1) shall take effect on October 1, 2000; and
       (2) shall apply with respect to an approval for voluntary 
     early retirement made on or after that date.

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

    Subtitle A--United States Armed Forces in Bosnia and Herzegovina

Sec. 1201. Findings.
Sec. 1202. Sense of Congress.
Sec. 1203. Presidential reports.
Sec. 1204. Secretary of Defense reports on operations in Bosnia and 
              Herzegovina.
Sec. 1205. Definitions.

         Subtitle B--Matters Relating to Contingency Operations

Sec. 1211. Report on involvement of Armed Forces in contingency and 
              ongoing operations.
Sec. 1212. Submission of report on objectives of a contingency 
              operation with requests for funding for the operation.

            Subtitle C--Matters Relating to NATO and Europe

Sec. 1221. Limitation on United States share of costs of NATO 
              expansion.
Sec. 1222. Report on military capabilities of an expanded NATO 
              alliance.
Sec. 1223. Reports on the development of the European security and 
              defense identity.

                       Subtitle D--Other Matters

Sec. 1231. Limitation on assignment of United States forces for certain 
              United Nations purposes.
Sec. 1232. Prohibition on restriction of Armed Forces under Kyoto 
              Protocol to the United Nations Framework Convention on 
              Climate Change.
Sec. 1233. Defense burdensharing.
Sec. 1234. Transfer of excess UH-1 Huey and AH-1 Cobra helicopters to 
              foreign countries.
Sec. 1235. Transfers of naval vessels to certain foreign countries.
Sec. 1236. Repeal of landmine moratorium.
Sec. 1237. Application of authorities under the International Emergency 
              Economic Powers Act to Communist Chinese military 
              companies.

    Subtitle A--United States Armed Forces in Bosnia and Herzegovina

     SEC. 1201. FINDINGS.

       Congress makes the following findings:
       (1) The contributions of the people of the United States 
     and other nations have, in large measure, resulted in the 
     suspension of fighting and alleviated the suffering of the 
     people of Bosnia and Herzegovina since December 1995.
       (2) The United States has expended approximately 
     $9,500,000,000 between 1992 and mid-1998 just in support of 
     the United States military operations in Bosnia to achieve 
     those results.
       (3) Efforts to restore the economy and political structure 
     in Bosnia and Herzegovina have achieved some success in 
     accordance with the Dayton Accords.
       (4) On March 3, 1998, the President certified to Congress 
     (A) that the continued presence of United States forces in 
     Bosnia and Herzegovina after June 30, 1998, was required in 
     order to meet the national security interests of the United 
     States, and (B) that United States Armed Forces will not 
     serve as, or be used as, civil police in Bosnia and 
     Herzegovina.
       (5) With that certification, the President submitted to 
     Congress a report stating that the goal of the military 
     presence in Bosnia and Herzegovina is to establish the 
     conditions under which implementation of the Dayton Accords 
     can continue without the support of a major NATO-led military 
     force and setting forth the criteria for determining when 
     that goal has been accomplished.
       (6) Since the administration has not specified how long 
     achievement of that goal is expected to take, the mission of 
     United States ground combat forces in Bosnia and Herzegovina 
     is essentially of indefinite duration.
       (7) The NATO operations plan for the Stabilization Force 
     (Operations Plan 10407, which went into effect on June 20, 
     1998, after approval by allied foreign ministers) 
     incorporates all of the benchmarks set forth in the report 
     referred to in paragraph (5) and states that the 
     Stabilization Force will develop detailed criteria for 
     assessing progress in achieving those benchmarks in close 
     coordination with key international organizations 
     participating in civilian implementation of the Dayton 
     Accords.
       (8) The military representatives of NATO member nations 
     have been tasked by the North Atlantic Council to provide 
     estimates of the time likely to be required for 
     implementation of the Dayton Accords.
       (9) NATO has decided to conduct formal reviews when 
     appropriate (but at intervals of not more than six months) to 
     assess the security situation and the progress being made in 
     the implementation of the civil aspects of the Dayton 
     Accords. Those reviews will enable the Alliance to make 
     decisions as to reductions in the size or the Stabilization 
     Force, leading to its eventual full withdrawal.
       (10) NATO has approved the creation of a multinational 
     specialized unit of gendarmes or paramilitary police composed 
     of European security forces to help promote public security 
     in Bosnia and Herzegovina as a part of the post-June 1998 
     mission for the Stabilization Force.
       (11) The limit established for spending by the United 
     States for the defense discretionary budget category for 
     fiscal year 1998 in the Balanced Budget and Emergency Deficit 
     Control Act of 1985 does not take into account the continued 
     deployment of United States forces in Bosnia and Herzegovina 
     after June 30, 1998, leading to the request by the President 
     for emergency supplemental appropriations for the Bosnia and 
     Herzegovina mission through September 30, 1998.
       (12) Amounts for Department of Defense operations in Bosnia 
     and Herzegovina during fiscal year 1999 were not included in 
     the budget of the President for fiscal year 1999, as 
     submitted to Congress on February 2, 1998.
       (13) The President requested $1,858,600,000 in emergency 
     appropriations in his March 4, 1998, amendment to the fiscal 
     year 1999 budget to cover the shortfall in funding in fiscal 
     year 1999 for the costs of extending the mission in Bosnia.

     SEC. 1202. SENSE OF CONGRESS.

       (a) Sense of Congress Concerning United States Forces and 
     Accomplishment of Tasks in Bosnia and Herzegovina.--It is the 
     sense of Congress that--
       (1) United States ground combat forces should not remain in 
     Bosnia and Herzegovina indefinitely in view of the worldwide 
     commitments of the Armed Forces of the United States;
       (2) the President should work with NATO allies and the 
     other nations whose military forces are participating in the 
     NATO-led Stabilization Force to withdraw United States ground 
     combat forces from Bosnia and Herzegovina within a reasonable 
     period of time, consistent with the safety of those forces 
     and the accomplishment of the Stabilization Force's military 
     tasks;
       (3) a NATO-led force without the participation of United 
     States ground combat forces in Bosnia and Herzegovina might 
     be suitable for a follow-on force for Bosnia and Herzegovina 
     if

[[Page H8162]]

     the European Security and Defense Identity is not 
     sufficiently developed or is otherwise considered 
     inappropriate for such a mission; and
       (4) the United States may decide to provide appropriate 
     support to a Western European Union-led or NATO-led follow-on 
     force for Bosnia and Herzegovina, including command and 
     control, intelligence, logistics, and, if necessary, a ready 
     reserve force in the region.
       (b) Sense of Congress Concerning Presidential Actions.--It 
     is the sense of Congress that the President--
       (1) should inform the European NATO allies of the 
     expression of the sense of Congress in subsection (a) and 
     should strongly urge them to undertake preparations for 
     establishing a Western European Union-led or a NATO-led force 
     as a follow-on force to the Stabilization Force if needed to 
     maintain peace and stability in Bosnia and Herzegovina; and
       (2) should consult closely with the congressional 
     leadership and the congressional defense committees with 
     respect to the progress being made toward achieving a 
     sustainable peace in Bosnia and Herzegovina and the progress 
     being made toward a reduction and ultimate withdrawal of 
     United States ground combat forces from Bosnia and 
     Herzegovina.
       (c) Sense of Congress Concerning Defense Budget.--It is the 
     sense of Congress that--
       (1) the President should include in the budget for the 
     Department of Defense that the President submits to Congress 
     under section 1105(a) of title 31, United States Code, for 
     each fiscal year sufficient amounts to pay for any proposed 
     continuation of the participation of United States forces in 
     NATO operations in Bosnia and Herzegovina during that fiscal 
     year; and
       (2) amounts included in the budget for the purpose stated 
     in paragraph (1) should be over and above the defense 
     discretionary estimates as identified in the Bipartisan 
     Budget Agreement of May 16, 1997 and the fiscal year 1998 
     concurrent budget resolution and not be transferred from 
     amounts in the budget of any other agency of the executive 
     branch, but instead should be an overall increase in the 
     budget for the Department of Defense and the discretionary 
     spending limits in the Balanced Budget Act of 1997.

     SEC. 1203. PRESIDENTIAL REPORTS.

       (a) Required Reports.--The President shall ensure that the 
     semiannual reports required by section 7(b) of the general 
     provisions of chapter I of the 1998 Supplemental 
     Appropriations and Rescissions Act (Public Law 105-174; 112 
     Stat. 64) are submitted to Congress in a timely manner as 
     long as United States ground combat forces continue to 
     participate in the Stabilization Force (SFOR). In addition, 
     whenever the President submits to Congress a request for 
     funds for continued operations of United States forces in 
     Bosnia and Herzegovina, the President shall submit a 
     supplemental report providing information to update Congress 
     on developments since the last semiannual report.
       (b) Required Information.--In addition to the information 
     required by the section referred to in subsection (a) to be 
     included in a report under that section, each report under 
     that section or under subsection (a) shall include the 
     following:
       (1) The expected duration of the deployment of United 
     States ground combat forces in Bosnia and Herzegovina in 
     support of implementation of the benchmarks set forth in the 
     President's report of March 3, 1998 (referred to in section 
     1201(5)) for achieving a sustainable peace process.
       (2) The percentage of those benchmarks that have been 
     completed as of the date of the report, the percentage that 
     are expected to be completed within the next reporting 
     period, and the expected time for completion of the remaining 
     tasks.
       (3) The status of the NATO force of gendarmes or 
     paramilitary police, including the mission of the force, the 
     composition of the force, and the extent, if any, to which 
     members of the Armed Forces of the United States are 
     participating (or are to participate) in the force.
       (4) The military and nonmilitary missions that the 
     President has directed for United States forces in Bosnia and 
     Herzegovina, including a specific discussion of--
       (A) the mission of those forces, if any, in connection with 
     the pursuit and apprehension of war criminals;
       (B) the mission of those forces, if any, in connection with 
     civilian police functions;
       (C) the mission of those forces, if any, in connection with 
     the resettlement of refugees; and
       (D) the missions undertaken by those forces, if any, in 
     support of international and local civilian authorities.
       (5) An assessment of the risk for the United States forces 
     in Bosnia and Herzegovina, including, for each mission 
     identified pursuant to paragraph (4), the assessment of the 
     Chairman of the Joint Chiefs of Staff regarding the nature 
     and level of risk of the mission for the safety and well-
     being of United States military personnel.
       (6) An assessment of the cost to the United States, by 
     fiscal year, of carrying out the missions identified pursuant 
     to paragraph (4) and a detailed projection of any additional 
     funding that will be required by the Department of Defense to 
     meet mission requirements for those operations for the 
     remainder of the fiscal year.
       (7) A joint assessment by the Secretary of Defense and the 
     Secretary of State of the status of planning for--
       (A) the assumption of all remaining military missions 
     inside Bosnia and Herzegovina by European military and 
     paramilitary forces; and
       (B) the establishment and support of a forward-based United 
     States rapid response force outside of Bosnia and Herzegovina 
     that would be capable of deploying rapidly to defeat military 
     threats to a European follow-on force inside Bosnia and 
     Herzegovina and of providing whatever logistical, 
     intelligence, and air support is needed to ensure that a 
     European follow-on force is fully capable of accomplishing 
     its missions under the Dayton Accords.

     SEC. 1204. SECRETARY OF DEFENSE REPORTS ON OPERATIONS IN 
                   BOSNIA AND HERZEGOVINA.

       (a) Report on Effects on Capabilities of United States 
     Military Forces.--Not later than December 15, 1998, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a report on the effects of military 
     operations in Bosnia and Herzegovina and the Balkans region 
     on the capabilities of United States military forces. The 
     report shall, in particular, describe the effects of those 
     operations on the capability of United States military forces 
     to conduct successfully two nearly simultaneous major theater 
     wars as specified in current Defense Planning Guidance and in 
     accordance with the deployment timelines called for in the 
     war plans of the commanders of the unified combatant 
     commands.
       (b) Additional Reports.--Whenever the number of United 
     States ground combat forces in Bosnia and Herzegovina 
     increases or decreases by 20 percent or more compared to the 
     number of such forces as of the most recent previous report 
     under this section, the Secretary shall submit an additional 
     report as specified in subsection (a). Any such additional 
     report shall be submitted within 30 days of the date on which 
     the requirement to submit the report becomes effective 
     under the preceding sentence.
       (c) Matters To Be Included.--The Secretary shall include in 
     each report under this section information with respect to 
     the effects of military operations in Bosnia and Herzegovina 
     and the Balkans region on the capabilities of United States 
     military forces to conduct successfully two nearly 
     simultaneous major theater wars as specified in current 
     Defense Planning Guidance and in accordance with the 
     deployment timelines called for in the war plans of the 
     commanders of the unified combatant commands. Such 
     information shall include information on the effects of those 
     operations on anticipated deployment plans for major theater 
     wars in Southwest Asia or on the Korean peninsula, including 
     the following:
       (1) Deficiencies or delays in deployment of strategic lift, 
     logistics support and infrastructure, ammunition (including 
     precision guided munitions), support forces, intelligence 
     assets, follow-on forces used for planned counteroffensives, 
     and similar forces.
       (2) Additional planned reserve component mobilization, 
     including specific units to be ordered to active duty and 
     required dates for activation of presidential call-up 
     authority.
       (3) Specific plans and timelines for redeployment of United 
     States forces from Bosnia and Herzegovina, the Balkans 
     region, or supporting forces in the region, to both the first 
     and second major theater war.
       (4) Preventative actions or deployments involving United 
     States forces in Bosnia and Herzegovina and the Balkans 
     region that would be taken in the event of a single theater 
     war to deter the outbreak of a second theater war.
       (5) Specific plans and timelines to replace forces deployed 
     to Bosnia and Herzegovina, the Balkans region, or the 
     surrounding region to maintain United States military 
     presence.
       (6) An assessment, undertaken in consultation with the 
     Chairman of the Joint Chiefs of Staff and the commanders of 
     the unified combatant commands, of the level of increased 
     risk to successful conduct of the major theater wars and the 
     maintenance of security and stability in Bosnia and 
     Herzegovina and the Balkans region, by the requirement to 
     redeploy forces from Bosnia and the Balkans in the event of a 
     major theater war.

     SEC. 1205. DEFINITIONS.

       As used in this subtitle:
       (1) Dayton peace accords.--The term ``Dayton Peace 
     Accords'' means the General Framework Agreement for Peace in 
     Bosnia and Herzegovina, initialed by the parties in Dayton, 
     Ohio, on November 21, 1995, and signed in Paris on December 
     14, 1995.
       (2) Stabilization force.--The term ``Stabilization Force'' 
     means the NATO-led force in Bosnia and Herzegovina and other 
     countries in the region (referred to as ``SFOR''), authorized 
     under United Nations Security Council Resolution 1088 
     (December 12, 1996).
       (3) NATO.--The term ``NATO'' means the North Atlantic 
     Treaty Organization.

         Subtitle B--Matters Relating to Contingency Operations

     SEC. 1211. REPORT ON INVOLVEMENT OF ARMED FORCES IN 
                   CONTINGENCY AND ONGOING OPERATIONS.

       (a) Report Required.--Not later than January 31, 1999, the 
     Secretary of Defense shall submit to the Committee on Armed 
     Services of the Senate and the Committee on National Security 
     of the House of Representatives a report on the involvement 
     of the Armed Forces in major contingency operations and major 
     ongoing operations since the end of the Persian Gulf War. The 
     report shall include the following:
       (1) A discussion of the effects of the involvement of the 
     Armed Forces in those operations on retention of personnel in 
     the Armed Forces, shown in the aggregate and separately 
     for officers and enlisted personnel.
       (2) The extent to which the use of combat support and 
     combat service support personnel and equipment of the Armed 
     Forces in those operations has resulted in shortages of Armed 
     Forces personnel and equipment in other regions of the world.
       (3) The accounts from which funds have been drawn to pay 
     for those operations and the specific programs for which 
     those funds were available until diverted to pay for those 
     operations.
       (4) For each such operation--
       (A) a statement of the vital interests of the United States 
     that are involved in the operation

[[Page H8163]]

     or, if none, the interests of the United States that are 
     involved in the operation and a characterization of those 
     interests;
       (B) a statement of what clear and distinct objectives guide 
     the activities of United States forces in the operation; and
       (C) a statement of what the President has identified on the 
     basis of those objectives as the date, or the set of 
     conditions, that defines the end of the operation.
       (b) Form of Report.--The report shall be submitted in 
     unclassified form, but may also be submitted in a classified 
     form if necessary.
       (c) Major Operation Defined.--For the purposes of this 
     section, a contingency operation or an ongoing operation is a 
     major contingency operation or a major ongoing operation, 
     respectively, if the operation involves the deployment of 
     more than 500 members of the Armed Forces.

     SEC. 1212. SUBMISSION OF REPORT ON OBJECTIVES OF A 
                   CONTINGENCY OPERATION WITH REQUESTS FOR FUNDING 
                   FOR THE OPERATION.

       (a) Findings.--Congress makes the following findings:
       (1) On May 3, 1994, the President issued Presidential 
     Decision Directive 25 declaring that American participation 
     in United Nations and other peace operations would depend in 
     part on whether the role of United States forces is tied to 
     clear objectives and an endpoint for United States 
     participation can be identified.
       (2) Between that date and mid-1998, the President and other 
     executive branch officials have obligated or requested 
     appropriations of approximately $9,400,000,000 for military-
     related operations throughout Bosnia and Herzegovina without 
     providing to Congress, in conjunction with the budget 
     submission for any fiscal year, a strategic plan for such 
     operations under the criteria set forth in that Presidential 
     Decision Directive.
       (3) Between November 27, 1995, and mid-1998 the President 
     has established three deadlines, since elapsed, for the 
     termination of United States military-related operations 
     throughout Bosnia and Herzegovina.
       (4) On December 17, 1997, the President announced that 
     United States ground combat forces would remain in Bosnia and 
     Herzegovina for an unknown period of time.
       (5) Approximately 47,880 United States military personnel 
     (excluding personnel serving in units assigned to the 
     Republic of Korea) have participated in 14 international 
     contingency operations between fiscal years 1991 and 1998.
       (6) The 1998 posture statements of the Navy and Air Force 
     included declarations that the pace of military operations 
     over fiscal year 1997 adversely affected the readiness of 
     non-deployed forces, personnel retention rates, and spare 
     parts inventories of the Navy and Air Force.
       (b) Information To Be Reported With Funding Requests.--
     Section 113 of title 10, United States Code, is amended by 
     adding after subsection (l), as added by section 915, the 
     following new subsection:
       ``(m) Information To Accompany Funding Request for 
     Contingency Operation.--Whenever the President submits to 
     Congress a request for appropriations for costs associated 
     with a contingency operation that involves, or likely will 
     involve, the deployment of more than 500 members of the armed 
     forces, the Secretary of Defense shall submit to Congress a 
     report on the objectives of the operation. The report 
     shall include a discussion of the following:
       ``(1) What clear and distinct objectives guide the 
     activities of United States forces in the operation.
       ``(2) What the President has identified on the basis of 
     those objectives as the date, or the set of conditions, that 
     defines the endpoint of the operation.''.

            Subtitle C--Matters Relating to NATO and Europe

     SEC. 1221. LIMITATION ON UNITED STATES SHARE OF COSTS OF NATO 
                   EXPANSION.

       (a) Limitation.--The United States share of defined NATO 
     expansion costs may not exceed the lesser of--
       (1) the amount equal to 25 percent of those costs; or
       (2) $2,000,000,000.
       (b) Defined NATO Expansion Costs.--For purposes of 
     subsection (a), the term ``defined NATO expansion costs'' 
     means the commonly funded costs of the North Atlantic Treaty 
     Organization (NATO) during fiscal years 1999 through 2011 for 
     enlargement of NATO due to the admission to NATO of Poland, 
     Hungary, and the Czech Republic.

     SEC. 1222. REPORT ON MILITARY CAPABILITIES OF AN EXPANDED 
                   NATO ALLIANCE.

       (a) Report.--The Secretary of Defense shall prepare a 
     report, in both classified and unclassified form, on the 
     planned future military capabilities of the North Atlantic 
     Treaty Organization (NATO) with the anticipated accession of 
     Poland, the Czech Republic, and Hungary to the NATO alliance. 
     The report shall set forth the following:
       (1) An assessment of the tactical, operational, and 
     strategic military requirements, including interoperability, 
     reinforcement, and force modernization issues, as well as 
     strategic and territorial issues, that are raised by the 
     inclusion of Poland, the Czech Republic, and Hungary in the 
     NATO alliance.
       (2) The minimum military requirements to be satisfied by 
     those countries before accession to the NATO alliance in 
     April 1999.
       (3) The improvements to common alliance military assets 
     that are necessary as a result of expanding the NATO alliance 
     to include those nations.
       (4) The improvements to national capabilities of current 
     NATO members that would be necessitated by the inclusion of 
     those nations in the alliance.
       (5) The necessary improvements to national capabilities of 
     the military forces of those new member nations.
       (6) Any additional necessary improvements to common 
     alliance military assets of the military forces of those new 
     members for which funds are not planned to be included in the 
     NATO budget.
       (7) The additional requirements, related to NATO expansion, 
     that the United States would agree to assist each new member 
     nation to meet on a bilateral basis.
       (b) Matters To Be Included.--The report shall include the 
     following:
       (1) An assessment of the tactical and operational 
     capabilities of the military forces of Poland, the Czech 
     Republic, and Hungary.
       (2) An assessment of the ability of each such new member 
     nation to meet the minimum military requirements upon 
     accession to the NATO alliance in April 1999, and the ability 
     of that nation to provide logistical, command and control, 
     and other vital infrastructure required for alliance defense 
     (as specified in Article V of the NATO Charter), including a 
     description in general terms of alliance plans for 
     reinforcing each new NATO member nation during a crisis or 
     war and detailing means for deploying both United States and 
     other NATO forces from current member states and from the 
     continental United States or other United States bases 
     worldwide and, in particular, describing plans for ground 
     reinforcement of Hungary.
       (3) An assessment of the ability of the current and new 
     alliance members to deploy and sustain combat forces in 
     alliance defense missions conducted in the territory of any 
     of the new member nations, as specified in Article V of the 
     NATO Charter.
       (4) A description of projected defense programs through 
     2009 (shown on an annual basis and cumulatively) of each 
     current and new alliance member nation--
       (A) including planned investments in capabilities pursuant 
     to Article V to ensure that--
       (i) the nation's military force structure, defense 
     planning, command structures, and force goals promote NATO's 
     capacity to project power when the security of a NATO member 
     is threatened; and
       (ii) NATO members possess national military capabilities to 
     rapidly deploy forces over long distances, sustain operations 
     for extended periods, and operate jointly with the United 
     States in high intensity conflicts as well as potential 
     alliance contingency operations;
       (B) showing both planned national efforts as well as 
     planned alliance common efforts; and
       (C) describing any deficiencies in investments by current 
     or new alliance member nations.
       (5) A detailed comparison and description of the 
     differences in scope, methodology, and assessments of common 
     alliance or national responsibilities, or any other factor 
     related to alliance capabilities between (A) the report on 
     alliance expansion costs prepared by the Department of 
     Defense (in the report submitted to Congress in February 1998 
     entitled ``Report to the Congress on the Military 
     Requirements and Costs of NATO Enlargement''), and (B) the 
     report on alliance expansion costs prepared by NATO 
     collectively and referred to as the ``NATO estimate'', issued 
     at Brussels in November 1997.
       (6) Any other factor that, in the judgment of the Secretary 
     of Defense, bears upon the strategic, operational, or 
     tactical military capabilities of an expanded NATO alliance.
       (c) Submission of Report.--The report shall be submitted to 
     Congress not later than March 15, 1999.

     SEC. 1223. REPORTS ON THE DEVELOPMENT OF THE EUROPEAN 
                   SECURITY AND DEFENSE IDENTITY.

       (a) Requirement for Reports.--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 in accordance with this section reports on 
     the development of the European Security and Defense Identity 
     (ESDI) within the NATO Alliance that would enable the Western 
     European Union (WEU), with the consent of the NATO Alliance, 
     to assume the political control and strategic direction of 
     NATO assets and capabilities made available by the Alliance.
       (b) Reports To Be Submitted.--The reports required to be 
     submitted under subsection (a) are as follows:
       (1) An initial report, submitted not later than December 
     15, 1998, that contains a discussion of the actions taken, 
     and the plans for future actions, to build the European 
     Security and Defense Identity, together with the matters 
     required under subsection (c).
       (2) A semiannual report on the progress made toward 
     establishing the European Security and Defense Identity, 
     submitted not later than June 15 and December 15 of each year 
     after 1998.
       (c) Content of Reports.--The Secretary shall include in 
     each report under this section the following:
       (1) A discussion of the arrangements between NATO and the 
     Western European Union for the release, transfer, monitoring, 
     return, and recall of NATO assets and capabilities.
       (2) A discussion of the development of such planning and 
     other capabilities by the Western European Union that are 
     necessary to provide political control and strategic 
     direction of NATO assets and capabilities.
       (3) A discussion of the development of terms of reference 
     for the Deputy Supreme Allied Commander, Europe, with respect 
     to the European Security and Defense Identity.
       (4) A discussion of the arrangements for the assignment or 
     appointment of NATO officers to serve in two positions 
     concurrently (commonly referred to as ``dual-hatting'').

[[Page H8164]]

       (5) A discussion of the development of the Combined Joint 
     Task Force (CJTF) concept, including lessons-learned from the 
     NATO-led Stabilization Force in Bosnia.
       (6) Identification within the NATO Alliance of the types of 
     separable but not separate capabilities, assets, and support 
     assets for Western European Union-led operations.
       (7) Identification of separable but not separate 
     headquarters, headquarters elements, and command positions 
     for command and conduct of Western European Union-led 
     operations.
       (8) The conduct by NATO, at the request of and in 
     coordination with the Western European Union, of military 
     planning and exercises for illustrative missions.
       (9) A discussion of the arrangements between NATO and the 
     Western European Union for the sharing of information, 
     including intelligence.
       (10) Such other information as the Secretary considers 
     useful for a complete understanding of the establishment of 
     the European Security and Defense Identity within the NATO 
     Alliance.
       (d) Termination of Reporting Requirement.--The requirement 
     to submit reports under subsection (b)(2) terminates upon the 
     submission by the Secretary under that subsection of a report 
     in which the Secretary states that the European Security and 
     Defense Identity has been fully established.

                       Subtitle D--Other Matters

     SEC. 1231. LIMITATION ON ASSIGNMENT OF UNITED STATES FORCES 
                   FOR CERTAIN UNITED NATIONS PURPOSES.

       (a) Limitation on Participation in United Nations Rapidly 
     Deployable Mission Headquarters.--If members of the Armed 
     Forces are assigned during fiscal year 1999 to the United 
     Nations Rapidly Deployable Mission Headquarters, the number 
     of members so assigned may not exceed eight at any time 
     during that year.
       (b) Prohibition.--No funds available to the Department of 
     Defense may be used--
       (1) for a monetary contribution to the United Nations for 
     the establishment of a standing international force under the 
     United Nations; or
       (2) to assign or detail any member of the Armed Forces to 
     duty with a United Nations Stand By Force.

     SEC. 1232. PROHIBITION ON RESTRICTION OF ARMED FORCES UNDER 
                   KYOTO PROTOCOL TO THE UNITED NATIONS FRAMEWORK 
                   CONVENTION ON CLIMATE CHANGE.

       (a) In General.--Notwithstanding any other provision of 
     law, no provision of the Kyoto Protocol to the United Nations 
     Framework Convention on Climate Change, or any regulation 
     issued pursuant to such protocol, shall restrict the training 
     or operations of the United States Armed Forces or limit the 
     military equipment procured by the United States Armed 
     Forces.
       (b) Waiver.--A provision of law may not be construed as 
     modifying or superseding the provisions of subsection (a) 
     unless that provision of law--
       (1) specifically refers to this section; and
       (2) specifically states that such provision of law modifies 
     or supersedes the provisions of this section.
       (c) Matters Not Affected.--Nothing in this section shall be 
     construed to preclude the Department of Defense from 
     implementing any measure to achieve efficiencies or for any 
     other reason independent of the Kyoto Protocol.

     SEC. 1233. DEFENSE BURDENSHARING.

       (a) Revised Goals for Efforts To Increase Allied 
     Burdensharing.--Effective October 1, 1998, subsection (a) of 
     section 1221 of the National Defense Authorization Act for 
     Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1935; 22 
     U.S.C. 1928 note) is amended--
       (1) in paragraph (2), by striking out ``September 30, 
     1998'' and inserting in lieu thereof ``September 30, 1999'';
       (2) in paragraph (3)--
       (A) by striking out ``economic'' and all that follows 
     through ``rights'' and inserting in lieu thereof 
     ``governmental accountability and transparency, economic 
     stabilization and development, defense economic conversion, 
     respect for the rule of law and internationally recognized 
     human rights, and humanitarian relief efforts)''; and
       (B) by striking out ``at least to a level commensurate to 
     that of the United States by September 30, 1998'' and 
     inserting in lieu thereof ``to provide such foreign 
     assistance at an annual rate that is not less than one 
     percent of its gross domestic product, by September 30, 
     1999''; and
       (3) in paragraph (4)--
       (A) by striking out ``amount of'';
       (B) by striking out ``, or would be prepared to 
     contribute,'' and inserting in lieu thereof ``or has pledged 
     to contribute''; and
       (C) by inserting before the period at the end the 
     following: ``by 10 percent by September 30, 1999''.
       (b) Revised Requirement for Report on Progress in 
     Increasing Allied Burdensharing.--Subsection (c) of such 
     section is amended--
       (1) by striking out ``March 1, 1998'' in the matter 
     preceding paragraph (1) and inserting in lieu thereof ``March 
     1, 1999''; and
       (2) in paragraph (3), by striking out ``March 1, 1996'' and 
     all that follows through the semicolon and inserting in lieu 
     thereof ``October 1, 1996, and ending on September 30, 1997, 
     and during the period beginning on October 1, 1997, and 
     ending on September 30, 1998, or, in the case of any nation 
     for which the data for such periods is inadequate, the 
     difference between the amounts for the latest periods for 
     which adequate data is available;''.
       (c) Extension of Deadline for Report Regarding National 
     Security Bases for Forward Deployment and Burdensharing 
     Relationships.--Subsection (d)(2) of such section is amended 
     by striking out ``March 1, 1998'' and inserting in lieu 
     thereof ``March 1, 1999''.

     SEC. 1234. TRANSFER OF EXCESS UH-1 HUEY AND AH-1 COBRA 
                   HELICOPTERS TO FOREIGN COUNTRIES.

       (a) In General.--Chapter 153 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 2581. Excess UH-1 Huey and AH-1 Cobra helicopters: 
       requirements for transfer to foreign countries

       ``(a) Requirements.--(1) Before an excess UH-1 Huey 
     helicopter or AH-1 Cobra helicopter is transferred on a grant 
     or sales basis to a foreign country for the purpose of flight 
     operations by that country, the Secretary of Defense shall 
     make all reasonable efforts to ensure that the helicopter 
     receives, to the extent necessary, maintenance and repair 
     equivalent to the depot-level maintenance and repair (as 
     defined in section 2460 of this title) that the helicopter 
     would need were the helicopter to remain in operational use 
     with the armed forces. Any such maintenance and repair work 
     shall be performed at no cost to the Department of Defense.
       ``(2) The Secretary shall make all reasonable efforts to 
     ensure that maintenance and repair work described in 
     paragraph (1) is performed in the United States.
       ``(b) Exception.--Subsection (a) does not apply with 
     respect to salvage helicopters provided to the foreign 
     country solely as a source for spare parts.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:
``2581. Excess UH-1 Huey and AH-1 Cobra helicopters: requirements for 
              transfer to foreign countries.''.

     SEC. 1235. TRANSFERS OF NAVAL VESSELS TO CERTAIN FOREIGN 
                   COUNTRIES.

       (a) Transfers by Grant.--The Secretary of the Navy is 
     authorized to transfer vessels to foreign countries on a 
     grant basis under section 516 of the Foreign Assistance Act 
     of 1961 (22 U.S.C. 2321j) as follows:
       (1) To the Government of Argentina, the NEWPORT class tank 
     landing ship NEWPORT (LST 1179).
       (2) To the Government of Greece--
       (A) the KNOX class frigate HEPBURN (FF 1055); and
       (B) the ADAMS class guided missile destroyers STRAUSS (DDG 
     16), SEMMS (DDG 18), and WADDELL (DDG 24).
       (3) To the Government of Portugal, the STALWART class ocean 
     surveillance ship ASSURANCE (T-AGOS 5).
       (4) To the Government of Turkey, the KNOX class frigates 
     PAUL (FF 1080), MILLER (FF 1091), and W.S. SIMMS (FF 1059).
       (b) Transfers by Sale.--The Secretary of the Navy is 
     authorized to transfer vessels to foreign countries on a 
     sales basis under section 21 of the Arms Export Control Act 
     (22 U.S.C. 2761) as follows:
       (1) To the Government of Brazil, the NEWPORT class tank 
     landing ships CAYUGA (LST 1186) and PEORIA (LST 1183).
       (2) To the Government of Chile--
       (A) the NEWPORT class tank landing ship SAN BERNARDINO (LST 
     1189); and
       (B) the auxiliary repair dry dock WATERFORD (ARD 5).
       (3) To the Government of Greece--
       (A) the OAK RIDGE class medium dry dock ALAMAGORDO (ARDM 
     2); and
       (B) the KNOX class frigates VREELAND (FF 1068) and TRIPPE 
     (FF 1075).
       (4) To the Government of Mexico--
       (A) the auxiliary repair dock SAN ONOFRE (ARD 30); and
       (B) the KNOX class frigate PHARRIS (FF 1094).
       (5) To the Government of the Philippines, the STALWART 
     class ocean surveillance ship TRIUMPH (T-AGOS 4).
       (6) To the Government of Spain, the NEWPORT class tank 
     landing ships HARLAN COUNTY (LST 1196) and BARNSTABLE COUNTY 
     (LST 1197).
       (7) To the Taipai 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)--
       (A) the KNOX class frigates PEARY (FF 1073), JOSEPH HEWES 
     (FF 1078), COOK (FF 1083), BREWTON (FF 1086), KIRK (FF 1987), 
     and BARBEY (FF 1088);
       (B) the NEWPORT class tank landing ships MANITOWOC (LST 
     1180) and SUMTER (LST 1181);
       (C) the floating dry dock COMPETENT (AFDM 6); and
       (D) the ANCHORAGE class dock landing ship PENSACOLA (LSD 
     38).
       (8) To the Government of Turkey--
       (A) the OLIVER HAZARD PERRY class guided missile frigates 
     MAHLON S. TISDALE (FFG 27), REID (FFG 30), and DUNCAN (FFG 
     10); and
       (B) the KNOX class frigates REASONER (FF 1063), FANNING (FF 
     1076), BOWEN (FF 1079), MCCANDLESS (FF 1084), DONALD BEARY 
     (FF 1085), AINSWORTH (FF 1090), THOMAS C. HART (FF 1092), and 
     CAPODANNO (FF 1093).
       (9) To the Government of Venezuela, the medium auxiliary 
     floating dry dock bearing hull number AFDM 2.
       (c) Transfers on a Combined Lease-Sale Basis.--The 
     Secretary of the Navy is authorized to transfer vessels to 
     foreign countries on a combined lease-sale basis under 
     sections 61 and 21 of the Arms Export Control Act (22 U.S.C. 
     2796, 2761) and in accordance with subsection (d) as follows:
       (1) To the Government of Brazil, the CIMARRON class oiler 
     MERRIMACK (AO 179).
       (2) To the Government of Greece, the KIDD class guided 
     missile destroyers KIDD (DDG 993),

[[Page H8165]]

     CALLAGHAN (DDG 994), SCOTT (DDG 995), and CHANDLER (DDG 996).
       (d) Conditions Relating To Combined Lease-Sale Transfers.--
     A transfer of a vessel on a combined lease-sale basis 
     authorized by subsection (c) shall be made in accordance with 
     the following requirements:
       (1) The Secretary may initially transfer the vessel by 
     lease, with lease payments suspended for the term of the 
     lease, if the country entering into the lease for the vessel 
     simultaneously enters into a foreign military sales agreement 
     for the transfer of title to the vessel.
       (2) The Secretary may not deliver to the purchasing country 
     title to the vessel until the purchase price of the vessel 
     under such a foreign military sales agreement is paid in 
     full.
       (3) Upon payment of the purchase price in full under such a 
     sales agreement and delivery of title to the recipient 
     country, the Secretary shall terminate the lease.
       (4) If the purchasing country fails to make full payment of 
     the purchase price in accordance with the sales agreement by 
     the date required under the sales agreement--
       (A) the sales agreement shall be immediately terminated;
       (B) the suspension of lease payments under the lease shall 
     be vacated; and
       (C) the United States shall be entitled to retain all funds 
     received on or before the date of the termination under the 
     sales agreement, up to the amount of the lease payments due 
     and payable under the lease and all other costs required by 
     the lease to be paid to that date.
       (5) If a sales agreement is terminated pursuant to 
     paragraph (4), the United States shall not be required to pay 
     any interest to the recipient country on any amount paid to 
     the United States by the recipient country under the sales 
     agreement and not retained by the United States under the 
     lease.
       (e) Requirement for Provision in Advance in an 
     Appropriations Act.--Authority to transfer vessels on a sale 
     basis under subsection (b) or a combined lease-sale basis 
     under subsection (c) is effective only to the extent that 
     authority to effectuate such transfers, together with 
     appropriations to cover the associated cost (as defined in 
     section 502 of the Congressional Budget of 1974 (2 U.S.C. 
     661a)), are provided in advance in an appropriations Act.
       (f) Authorization of Appropriations for Certain Costs of 
     Transfers.--There is established in the Treasury of the 
     United States a special account to be known as the Defense 
     Vessels Transfer Program Account. There is hereby authorized 
     to be appropriated into that account such sums as may be 
     necessary for the costs (as defined in section 502 of the 
     Congressional Budget Act of 1974 (2 U.S.C. 661a)) of the 
     lease-sale transfers authorized by subsection (c). Funds in 
     that account are available only for the purpose of covering 
     those costs.
       (g) Notification of Congress.--Not later than 30 days after 
     the date of the enactment of this Act, the Secretary of the 
     Navy shall submit to Congress, for each naval vessel that is 
     to be transferred under this section before January 1, 1999, 
     the notifications required under section 516 of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2321j) and section 525 of 
     the Foreign Operations, Export Financing, and Related 
     Programs Appropriations Act, 1998 (Public Law 105-118; 111 
     Stat. 2413).
       (h) Grants not Counted in Annual Total of Transferred 
     Excess Defense Articles.--The value of a vessel transferred 
     to another country on a grant basis under section 516 of the 
     Foreign Assistance Act of 1961 (22 U.S.C. 2321j) pursuant to 
     authority provided by subsection (a) shall not be counted for 
     the purposes of subsection (g) of that section in the 
     aggregate value of excess defense articles transferred to 
     countries under that section in any fiscal year.
       (i) Costs of Transfers.--Any expense incurred by the United 
     States in connection with a transfer authorized by this 
     section shall be charged to the recipient (notwithstanding 
     section 516(e)(1) of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2321j(e)(1)) in the case of a transfer authorized to 
     be made on a grant basis under subsection (a)).
       (j) 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.
       (k) Expiration of Authority.--The authority to transfer a 
     vessel under this section shall expire at the end of the two-
     year period beginning on the date of the enactment of this 
     Act.

     SEC. 1236. REPEAL OF LANDMINE MORATORIUM.

       Section 580 of the Foreign Operations Appropriations Act, 
     1996 (Public Law 104-107; 110 Sat 751), is repealed.

     SEC. 1237. APPLICATION OF AUTHORITIES UNDER THE INTERNATIONAL 
                   EMERGENCY ECONOMIC POWERS ACT TO COMMUNIST 
                   CHINESE MILITARY COMPANIES.

       (a) Presidential Authority.--
       (1) In general.--The President may exercise IEEPA 
     authorities (other than authorities relating to importation) 
     without regard to section 202 of the International Emergency 
     Economic Powers Act (50 U.S.C. 1701) in the case of any 
     commercial activity in the United States by a person that is 
     on the list published under subsection (b).
       (2) Penalties.--The penalties set forth in section 206 of 
     the International Emergency Economic Powers Act (50 U.S.C. 
     1705) apply to violations of any license, order, or 
     regulation issued under paragraph (1).
       (3) Ieepa authorities.--For purposes of paragraph (1), the 
     term ``IEEPA authorities'' means the authorities set forth in 
     section 203(a) of the International Emergency Economic Powers 
     Act (50 U.S.C. 1702(a)).
       (b) Determination and Publication of Communist Chinese 
     Military Companies Operating in United States.--
       (1) Initial determination and publication.--Not later than 
     90 days after the date of the enactment of this Act, the 
     Secretary of Defense shall make a determination of those 
     persons operating directly or indirectly in the United States 
     or any of its territories and possessions that are Communist 
     Chinese military companies and shall publish a list of those 
     persons in the Federal Register.
       (2) Revisions to list.--The Secretary of Defense shall make 
     additions or deletions to the list published under paragraph 
     (1) on an ongoing basis based on the latest information 
     available.
       (3) Consultation.--The Secretary of Defense shall consult 
     with the following officers in carrying out paragraphs (1) 
     and (2):
       (A) The Attorney General.
       (B) The Director of Central Intelligence.
       (C) The Director of the Federal Bureau of Investigation.
       (4) Communist chinese military company.--For purposes of 
     making the determination required by paragraph (1) and of 
     carrying out paragraph (2), the term ``Communist Chinese 
     military company'' means--
       (A) any person identified in the Defense Intelligence 
     Agency publication numbered VP-1920-271-90, dated September 
     1990, or PC-1921-57-95, dated October 1995, and any update of 
     those publications for the purposes of this section; and
       (B) any other person that--
       (i) is owned or controlled by the People's Liberation Army; 
     and
       (ii) is engaged in providing commercial services, 
     manufacturing, producing, or exporting.
       (c) People's Liberation Army.--For purposes of this 
     section, the term ``People's Liberation Army'' means the 
     land, naval, and air military services, the police, and the 
     intelligence services of the Communist Government of the 
     People's Republic of China, and any member of any such 
     service or of such police.

  TITLE XIII--COOPERATIVE THREAT REDUCTION WITH STATES OF THE FORMER 
                              SOVIET UNION

Sec. 1301. Specification of Cooperative Threat Reduction Programs and 
              funds.
Sec. 1302. Funding allocations.
Sec. 1303. Prohibition on use of funds for specified purposes.
Sec. 1304. Limitation on use of funds for chemical weapons destruction 
              activities in Russia.
Sec. 1305. Limitation on use of funds for biological weapons 
              proliferation prevention activities in Russia.
Sec. 1306. Cooperative counter proliferation program.
Sec. 1307. Requirement to submit summary of amounts requested by 
              project category.
Sec. 1308. Report on biological weapons programs in Russia.
Sec. 1309. Report on individuals with expertise in former Soviet 
              weapons of mass destruction programs.

     SEC. 1301. SPECIFICATION OF COOPERATIVE THREAT REDUCTION 
                   PROGRAMS AND FUNDS.

       (a) Specification of CTR Programs.--(1) For purposes of 
     section 301 and other provisions of this Act, Cooperative 
     Threat Reduction programs are the programs specified in 
     section 1501(b) of the National Defense Authorization Act for 
     Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2731; 50 
     U.S.C. 2362 note) (as amended by paragraph (2)).
       (2) Section 1501(b)(3) of such Act is amended by inserting 
     ``materials, '' after ``components,''.
       (b) Fiscal Year 1999 Cooperative Threat Reduction Funds 
     Defined.--As used in this title, the term ``fiscal year 1999 
     Cooperative Threat Reduction funds'' means the funds 
     appropriated pursuant to the authorization of appropriations 
     in section 301 for Cooperative Threat Reduction programs.
       (c) Availability of Funds.--Funds appropriated pursuant to 
     the authorization of appropriations in section 301 for 
     Cooperative Threat Reduction programs shall be available for 
     obligation for three fiscal years.

     SEC. 1302. FUNDING ALLOCATIONS.

       (a) Funding for Specific Purposes.--Of the amounts 
     authorized to be appropriated to the Department of Defense 
     for fiscal year 1999 in section 301(23), $440,400,000 shall 
     be available to carry out Cooperative Threat Reduction 
     programs, of which not more than the following amounts may 
     be obligated for the purposes specified:
       (1) For strategic offensive arms elimination in Russia, 
     $142,400,000.
       (2) For strategic nuclear arms elimination in Ukraine, 
     $47,500,000.
       (3) For activities to support warhead dismantlement 
     processing in Russia, $9,400,000.
       (4) For activities associated with chemical weapons 
     destruction in Russia, $88,400,000.
       (5) For weapons transportation security in Russia, 
     $10,300,000.
       (6) For planning, design, and construction of a storage 
     facility for Russian fissile material, $60,900,000.
       (7) For weapons storage security in Russia, $41,700,000.
       (8) For development of a cooperative program with the 
     Government of Russia to eliminate the production of weapons 
     grade plutonium at Russian reactors, $29,800,000.
       (9) For biological weapons proliferation prevention 
     activities in Russia, $2,000,000.
       (10) For activities designated as Other Assessments/
     Administrative Support $8,000,000.

[[Page H8166]]

       (b) Limited Authority To Vary Individual Amounts.--(1) If 
     the Secretary of Defense determines that it is necessary to 
     do so in the national interest, the Secretary may, subject to 
     paragraphs (2) and (3), obligate amounts for the purposes 
     stated in any of the paragraphs of subsection (a) in excess 
     of the amount specified for those purposes in that paragraph. 
     However, the total amount obligated for the purposes stated 
     in the paragraphs in subsection (a) may not by reason of the 
     use of the authority provided in the preceding sentence 
     exceed the sum of the amounts specified in those paragraphs.
       (2) An obligation for the purposes stated in any of the 
     paragraphs in subsection (a) in excess of the amount 
     specified in that paragraph may be made using the authority 
     provided in paragraph (1) only after--
       (A) the Secretary submits to Congress notification of the 
     intent to do so together with a complete discussion of the 
     justification for doing so; and
       (B) 15 days have elapsed following the date of the 
     notification.
       (3) The Secretary may not, under the authority provided in 
     paragraph (1), obligate amounts appropriated for the purposes 
     stated in any of paragraphs (3) through (10) of subsection 
     (a) in excess of 115 percent of the amount stated in those 
     paragraphs.

     SEC. 1303. PROHIBITION ON USE OF FUNDS FOR SPECIFIED 
                   PURPOSES.

       (a) In General.--No fiscal year 1999 Cooperative Threat 
     Reduction funds, and no funds appropriated for Cooperative 
     Threat Reduction programs for any prior fiscal year and 
     remaining available for obligation, may be obligated or 
     expended for any of the following purposes:
       (1) Conducting with Russia any peacekeeping exercise or 
     other peacekeeping-related activity.
       (2) Provision of housing.
       (3) Provision of assistance to promote environmental 
     restoration.
       (4) Provision of assistance to promote job retraining.
       (b) Limitation With Respect to Defense Conversion 
     Assistance.--None of the funds appropriated pursuant to this 
     Act may be obligated or expended for the provision of 
     assistance to Russia or any other state of the former Soviet 
     Union to promote defense conversion.

     SEC. 1304. LIMITATION ON USE OF FUNDS FOR CHEMICAL WEAPONS 
                   DESTRUCTION ACTIVITIES IN RUSSIA.

       (a) Limitation.--Subject to the limitation in section 
     1405(b) of the National Defense Authorization Act for Fiscal 
     Year 1998 (Public Law 105-85; 111 Stat. 1961), no funds 
     authorized to be appropriated for Cooperative Threat 
     Reduction programs under this Act or any other Act may be 
     obligated or expended for chemical weapons destruction 
     activities in Russia (including activities for the 
     planning, design, or construction of a chemical weapons 
     destruction facility or for the dismantlement of an 
     existing chemical weapons production facility) until the 
     President submits to Congress a written certification 
     described in subsection (b).
       (b) Presidential Certification.--A certification under this 
     subsection is either of the following certifications by the 
     President:
       (1) A certification that--
       (A) Russia is making reasonable progress toward the 
     implementation of the Bilateral Destruction Agreement;
       (B) the United States and Russia have made substantial 
     progress toward the resolution, to the satisfaction of the 
     United States, of outstanding compliance issues under the 
     Wyoming Memorandum of Understanding and the Bilateral 
     Destruction Agreement; and
       (C) Russia has fully and accurately declared all 
     information regarding its unitary and binary chemical 
     weapons, chemical weapons facilities, and other facilities 
     associated with chemical weapons.
       (2) A certification that the national security interests of 
     the United States could be undermined by a policy of the 
     United States not to carry out chemical weapons destruction 
     activities under Cooperative Threat Reduction programs for 
     which funds are authorized to be appropriated under this Act 
     or any other Act for fiscal year 1999.
       (b) Definitions.--In this section:
       (1) The term ``Bilateral Destruction Agreement'' means the 
     Agreement Between the United States of America and the Union 
     of Soviet Socialist Republics on Destruction and Non-
     production of Chemical Weapons and on Measures to Facilitate 
     the Multilateral Convention on Banning Chemical Weapons 
     signed on June 1, 1990.
       (2) The term ``Wyoming Memorandum of Understanding'' means 
     the Memorandum of Understanding Between the Government of the 
     United States of America and the Government of the Union of 
     Soviet Socialist Republics Regarding a Bilateral Verification 
     Experiment and Data Exchange Related to Prohibition on 
     Chemical Weapons, signed at Jackson Hole, Wyoming, on 
     September 23, 1989.

     SEC. 1305. LIMITATION ON USE OF FUNDS FOR BIOLOGICAL WEAPONS 
                   PROLIFERATION PREVENTION ACTIVITIES IN RUSSIA.

       No fiscal year 1999 Cooperative Threat Reduction funds may 
     be obligated or expended for biological weapons proliferation 
     prevention activities in Russia until 15 days after the date 
     on which the Secretary submits to the congressional defense 
     committees a report on--
       (1) whether Cooperative Threat Reduction funds provided for 
     cooperative research activities at biological research 
     institutes in Russia have been used--
       (A) to support activities to develop new strains of 
     anthrax; or
       (B) for any purpose inconsistent with the objectives of 
     providing such funds; and
       (2) the new strains of anthrax alleged to have been 
     developed at a biological research institute in Russia and 
     any efforts by the United States to examine such strains.

     SEC. 1306. COOPERATIVE COUNTER PROLIFERATION PROGRAM.

       (a) In General.--Of the amount authorized to be 
     appropriated in section 1302 (other than the amounts 
     authorized to be appropriated in subsections (a)(1) and 
     (a)(2) of that section) and subject to the limitations in 
     that section and subsection (b), the Secretary of Defense may 
     provide a country of the former Soviet Union with emergency 
     assistance for removing or obtaining from that country--
       (1) weapons of mass destruction; or
       (2) materials, equipment, or technology related to the 
     development or delivery of weapons of mass destruction.
       (b) Certification Required.--(1) The Secretary may not 
     provide assistance under subsection (a) until 15 days after 
     the date that the Secretary submits to the congressional 
     defense committees a certification in writing that the 
     weapons, materials, equipment, or technology described in 
     that subsection meet each of the following requirements:
       (A) The weapons, materials, equipment, or technology are at 
     risk of being sold or otherwise transferred to a restricted 
     foreign state or entity.
       (B) The transfer of the weapons, materials, equipment, or 
     technology would pose a significant near-term threat to the 
     national security interests of the United States or would 
     significantly advance a foreign country's weapon program that 
     threatens the national security interests of the United 
     States.
       (C) Other options for securing or otherwise preventing the 
     transfer of the weapons, materials, equipment, or technology 
     have been considered and rejected as ineffective or 
     inadequate.
       (2) The 15-day notice requirement in paragraph (1) may be 
     waived if the Secretary determines that compliance with the 
     requirement would compromise the national security interests 
     of the United States. In such case, the Secretary shall 
     promptly notify the congressional defense committees of the 
     circumstances regarding such determination in advance of 
     providing assistance under subsection (a) and shall submit 
     the certification required not later than 30 days after 
     providing such assistance.
       (c) Content of Certifications.--Each certification required 
     under subsection (b) shall contain information on the 
     following with respect to the assistance being provided:
       (1) The specific assistance provided and the purposes for 
     which the assistance is being provided.
       (2) The sources of funds for the assistance.
       (3) Whether any assistance is being provided by any other 
     Federal department or agency.
       (4) The options considered and rejected for preventing the 
     transfer of the weapons, materials, equipment, or technology, 
     as described in subsection (b)(1)(C).
       (5) Whether funding was requested by the Secretary from 
     other Federal departments or agencies.
       (6) Any additional information that the Secretary 
     determines is relevant to the assistance being provided.
       (d) Additional Sources of Funding.--The Secretary may 
     request assistance and accept funds from other Federal 
     departments or agencies in carrying out this section.
       (e) Definitions.--In this section:
       (1) The term ``restricted foreign state or entity'', with 
     respect to weapons, materials, equipment, or technology 
     covered by a certification or notification of the Secretary 
     of Defense under subsection (b), means--
       (A) any foreign country the government of which has 
     repeatedly provided support for acts of international 
     terrorism, as determined by the Secretary of State under 
     section 620A of the Foreign Assistance Act of 1961 (22 U.S.C. 
     2371); or
       (B) any foreign state or entity that the Secretary of 
     Defense determines would constitute a military threat to the 
     United States, its allies, or interests, if that foreign 
     state or entity were to possess the weapons, materials, 
     equipment, or technology.
       (2) The term ``weapon of mass destruction'' has the meaning 
     given that term in section 1403(1) of the Defense Against 
     Weapons of Mass Destruction Act of 1996 (title XIV of Public 
     Law 104-201; 50 U.S.C. 2302(1)).

     SEC. 1307. REQUIREMENT TO SUBMIT SUMMARY OF AMOUNTS REQUESTED 
                   BY PROJECT CATEGORY.

       (a) Summary Required.--The Secretary of Defense shall 
     submit to Congress as part of the Secretary's annual budget 
     request to Congress--
       (1) a descriptive summary, with respect to the 
     appropriations requested for Cooperative Threat Reduction 
     programs for the fiscal year after the fiscal year in which 
     the summary is submitted, of the amounts requested for 
     each project category under each Cooperative Threat 
     Reduction program element; and
       (2) a descriptive summary, with respect to appropriations 
     for Cooperative Threat Reduction programs for the fiscal year 
     in which the list is submitted and the previous fiscal year, 
     of the amounts obligated or expended, or planned to be 
     obligated or expended, for each project category under each 
     Cooperative Threat Reduction program element.
       (b) Description of Purpose and Intent.--The descriptive 
     summary required under subsection (a) shall include a 
     narrative description of each program and project category 
     under each Cooperative Threat Reduction program element that 
     explains the purpose and intent of the funds requested.

     SEC. 1308. REPORT ON BIOLOGICAL WEAPONS PROGRAMS IN RUSSIA.

       (a) Report.--Not later than March 1, 1999, the Secretary of 
     Defense shall submit to the congressional defense committees 
     a report, in classified and unclassified forms, containing--

[[Page H8167]]

       (1) an assessment of the extent of compliance by Russia 
     with international agreements relating to the control of 
     biological weapons; and
       (2) a detailed evaluation of the potential political and 
     military costs and benefits of collaborative biological 
     pathogen research efforts by the United States and Russia.
       (b) Content of Report.--The report required under 
     subsection (a) shall include the following:
       (1) An evaluation of the extent of the control and 
     oversight by the Government of Russia over the military and 
     civilian-military biological warfare programs formerly 
     controlled or overseen by states of the former Soviet Union.
       (2) The extent and scope of continued biological warfare 
     research, development, testing, and production in Russia, 
     including the sites where such activity is occurring and the 
     types of activity being conducted.
       (3) An assessment of compliance by Russia with the terms of 
     the Biological Weapons Convention.
       (4) An identification and assessment of the measures taken 
     by Russia to comply with the obligations assumed under the 
     Joint Statement on Biological Weapons, agreed to by the 
     United States, the United Kingdom, and Russia on September 
     14, 1992.
       (5) A description of the extent to which Russia has 
     permitted individuals from the United States or other 
     countries to visit military and nonmilitary biological 
     research, development, testing, and production sites in order 
     to resolve ambiguities regarding activities at such sites.
       (6) A description of the information provided by Russia 
     about its biological weapons dismantlement efforts to date.
       (7) An assessment of the accuracy and comprehensiveness of 
     declarations by Russia regarding its biological weapons 
     activities.
       (8) An identification of collaborative biological research 
     projects carried out by the United States and Russia for 
     which Cooperative Threat Reduction funds have been used.
       (9) An evaluation of the political and military utility of 
     prior, existing, and prospective cooperative biological 
     pathogen research programs carried out between the United 
     States and Russia, and an assessment of the impact of such 
     programs on increasing Russian military transparency with 
     respect to biological weapons activities.
       (10) An assessment of the political and military utility of 
     the long-term collaborative program advocated by the National 
     Academy of Sciences in its October 27, 1997 report, 
     ``Controlling Dangerous Pathogens: A Blueprint for U.S.-
     Russian Cooperation''.

     SEC. 1309. REPORT ON INDIVIDUALS WITH EXPERTISE IN FORMER 
                   SOVIET WEAPONS OF MASS DESTRUCTION PROGRAMS.

       Not later than January 31, 1999, the Secretary of Defense, 
     in consultation with the Secretary of State, the Secretary of 
     Energy, and any other appropriate officials, shall submit to 
     the congressional defense committees a report on the number 
     of individuals in the former Soviet Union who have 
     significant expertise in the research, development, 
     production, testing, and operational employment of ballistic 
     missiles and weapons of mass destruction. The report shall 
     contain the following:
       (1) A listing of the specific expertise of the individuals, 
     by category and discipline.
       (2) An assessment of which categories of expertise would 
     pose the greatest risks to the security of the United States 
     if that expertise were transferred to potentially hostile 
     states.
       (3) An estimate, by category, of the number of the 
     individuals in paragraph (1) who are fully or partly employed 
     at the time the report is submitted by the military-
     industrial complex of the former Soviet Union, the number of 
     such individuals who are fully employed at the time the 
     report is submitted by commercial ventures outside the 
     military-industrial complex of the former Soviet Union, and 
     the number of such individuals who are unemployed and 
     underemployed at the time the report is submitted.
       (4) An identification of the nature, scope, and cost of 
     activities conducted by the United States and other countries 
     to assist in the employment in nonproliferation and 
     nonmilitary-related endeavors and enterprises of individuals 
     involved in the weapons complex of the former Soviet Union, 
     and which categories of individuals are being targeted in 
     these efforts.
       (5) An assessment of whether the activities identified 
     under paragraph (4) should be reduced, maintained, or 
     expanded.

 TITLE XIV--DOMESTIC PREPAREDNESS FOR DEFENSE AGAINST WEAPONS OF MASS 
                              DESTRUCTION

Sec. 1401. Short title.
Sec. 1402. Domestic preparedness for response to threats of terrorist 
              use of weapons of mass destruction.
Sec. 1403. Report on domestic emergency preparedness.
Sec. 1404. Threat and risk assessments.
Sec. 1405. Advisory panel to assess domestic response capabilities for 
              terrorism involving weapons of mass destruction.

     SEC. 1401. SHORT TITLE.

       This title may be cited as the ``Defense Against Weapons of 
     Mass Destruction Act of 1998''.

     SEC. 1402. DOMESTIC PREPAREDNESS FOR RESPONSE TO THREATS OF 
                   TERRORIST USE OF WEAPONS OF MASS DESTRUCTION.

       (a) Enhanced Response Capability.--In light of the 
     continuing potential for terrorist use of weapons of mass 
     destruction against the United States and the need to develop 
     a more fully coordinated response to that threat on the part 
     of Federal, State, and local agencies, the President shall 
     act to increase the effectiveness at the Federal, State, and 
     local level of the domestic emergency preparedness program 
     for response to terrorist incidents involving weapons of mass 
     destruction by utilizing the President's existing authorities 
     to develop an integrated program that builds upon the program 
     established under the Defense Against Weapons of Mass 
     Destruction Act of 1996 (title XIV of Public Law 104-201; 110 
     Stat. 2714; 50 U.S.C. 2301 et seq.).
       (b) Report.--Not later than January 31, 1999, the President 
     shall submit to Congress a report containing information on 
     the actions taken at the Federal, State, and local level to 
     develop an integrated program to prevent and respond to 
     terrorist incidents involving weapons of mass destruction.

     SEC. 1403. REPORT ON DOMESTIC EMERGENCY PREPAREDNESS.

       Section 1051 of the National Defense Authorization Act for 
     Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1889; 
     31 U.S.C. 1113 note) is amended by adding at the end the 
     following new subsection:
       ``(c) Annex on Domestic Emergency Preparedness Program.--As 
     part of the annual report submitted to Congress under 
     subsection (b), the President shall include an annex which 
     provides the following information on the domestic emergency 
     preparedness program for response to terrorist incidents 
     involving weapons of mass destruction (as established under 
     section 1402 of the Defense Against Weapons of Mass 
     Destruction Act of 1998):
       ``(1) Information on program responsibilities for each 
     participating Federal department, agency, and bureau.
       ``(2) A summary of program activities performed during the 
     preceding fiscal year for each participating Federal 
     department, agency, and bureau.
       ``(3) A summary of program obligations and expenditures 
     during the preceding fiscal year for each participating 
     Federal department, agency, and bureau.
       ``(4) A summary of the program plan and budget for the 
     current fiscal year for each participating Federal 
     department, agency, and bureau.
       ``(5) The program budget request for the following fiscal 
     year for each participating Federal department, agency, and 
     bureau.
       ``(6) Recommendations for improving Federal, State, and 
     local domestic emergency preparedness to respond to incidents 
     involving weapons of mass destruction that have been made by 
     the advisory panel to assess the capabilities of domestic 
     response to terrorism involving weapons of mass destruction 
     (as established under section 1405 of the Defense Against 
     Weapons of Mass Destruction Act of 1998), and actions taken 
     as a result of such recommendations.
       ``(7) Additional program measures and legislative authority 
     for which congressional action may be required.''.

     SEC. 1404. THREAT AND RISK ASSESSMENTS.

       (a) Requirement To Develop Methodologies.-- The Attorney 
     General, in consultation with the Director of the Federal 
     Bureau of Investigation and representatives of appropriate 
     Federal, State, and local agencies, shall develop and test 
     methodologies for assessing the threat and risk of terrorist 
     employment of weapons of mass destruction against cities and 
     other local areas. The results of the tests may be used to 
     determine the training and equipment requirements under the 
     program developed under section 1402. The methodologies 
     required by this subsection shall be developed using cities 
     or local areas selected by the Attorney General, acting in 
     consultation with the Director of the Federal Bureau of 
     Investigation and appropriate representatives of Federal, 
     State, and local agencies.
       (b) Required Completion Date.--The requirements in 
     subsection (a) shall be completed not later than one year 
     after the date of the enactment of this Act.

     SEC. 1405. ADVISORY PANEL TO ASSESS DOMESTIC RESPONSE 
                   CAPABILITIES FOR TERRORISM INVOLVING WEAPONS OF 
                   MASS DESTRUCTION.

       (a) Requirement for Panel.--The Secretary of Defense, in 
     consultation with the Attorney General, the Secretary of 
     Energy, the Secretary of Health and Human Services, and the 
     Director of the Federal Emergency Management Agency, shall 
     enter into a contract with a federally funded research and 
     development center to establish a panel to assess the 
     capabilities for domestic response to terrorism involving 
     weapons of mass destruction.
       (b) Composition of Panel; Selection.--(1) The panel shall 
     be composed of members who shall be private citizens of the 
     United States with knowledge and expertise in emergency 
     response matters.
       (2) Members of the panel shall be selected by the federally 
     funded research and development center in accordance with the 
     terms of the contract established pursuant to subsection (a).
       (c) Procedures For Panel.--The federally funded research 
     and development center shall be responsible for 
     establishing appropriate procedures for the panel, 
     including procedures for selection of a panel chairman.
       (d) Duties of Panel.-- The panel shall--
       (1) assess Federal agency efforts to enhance domestic 
     preparedness for incidents involving weapons of mass 
     destruction;
       (2) assess the progress of Federal training programs for 
     local emergency responses to incidents involving weapons of 
     mass destruction;
       (3) assess deficiencies in programs for response to 
     incidents involving weapons of mass destruction, including a 
     review of unfunded communications, equipment, and planning 
     requirements, and the needs of maritime regions;
       (4) recommend strategies for ensuring effective 
     coordination with respect to Federal agency weapons of mass 
     destruction response efforts, and for ensuring fully 
     effective local response capabilities for weapons of mass 
     destruction incidents; and

[[Page H8168]]

       (5) assess the appropriate roles of State and local 
     government in funding effective local response capabilities.
       (e) Deadline to Enter Into Contract.--The Secretary of 
     Defense shall enter into the contract required under 
     subsection (a) not later than 60 days after the date of the 
     enactment of this Act.
       (f) Deadline for Selection of Panel Members.--Selection of 
     panel members shall be made not later than 30 days after the 
     date on which the Secretary enters into the contract required 
     by subsection (a).
       (g) Initial Meeting of the Panel.-- The panel shall conduct 
     its first meeting not later than 30 days after the date that 
     all the selections to the panel have been made.
       (h) Reports.--(1) Not later than 6 months after the date of 
     the first meeting of the panel, the panel shall submit to the 
     President and to Congress an initial report setting forth its 
     findings, conclusions, and recommendations for improving 
     Federal, State, and local domestic emergency preparedness to 
     respond to incidents involving weapons of mass destruction.
       (2) Not later than December 15 of each year, beginning in 
     1999 and ending in 2001, the panel shall submit to the 
     President and to the Congress a report setting forth its 
     findings, conclusions, and recommendations for improving 
     Federal, State, and local domestic emergency preparedness to 
     respond to incidents involving weapons of mass destruction.
       (i) Cooperation of Other Agencies.--(1) The panel may 
     secure directly from the Department of Defense, the 
     Department of Energy, the Department of Health and Human 
     Services, the Department of Justice, and the Federal 
     Emergency Management Agency, or any other Federal department 
     or agency information that the panel considers necessary for 
     the panel to carry out its duties.
       (2) The Attorney General, the Secretary of Defense, the 
     Secretary of Energy, the Secretary of Health and Human 
     Services, the Director of the Federal Emergency Management 
     Agency, and any other official of the United States shall 
     provide the panel with full and timely cooperation in 
     carrying out its duties under this section.
       (j) Funding.--The Secretary of Defense shall provide the 
     funds necessary for the panel to carry out its duties from 
     the funds available to the Department of Defense for weapons 
     of mass destruction preparedness initiatives.
       (k) Compensation of Panel Members.--(1) Members of the 
     panel shall serve without pay by reason of their work on the 
     panel.
       (2) Members of the panel shall be allowed travel expenses, 
     including per diem in lieu of subsistence, at rates 
     authorized for employees of agencies under subchapter 57 of 
     title 5, United States Code, while away from their homes or 
     regular place of business in performance of services for the 
     panel.
       (l) Termination of the Panel.--The panel shall terminate 
     three years after the date of the appointment of the member 
     selected as chairman of the panel.
       (m) Definition.--In this section, the term ``weapon of mass 
     destruction'' has the meaning given that term in section 
     1403(1) of the Defense Against Weapons of Mass Destruction 
     Act of 1996 (50 U.S.C. 2302(1)).

   TITLE XV--MATTERS RELATING TO ARMS CONTROL, EXPORT CONTROLS, AND 
                               COUNTER- 
                             PROLIFERATION

                    Subtitle A--Arms Control Matters

Sec. 1501. One-year extension of limitation on retirement or 
              dismantlement of strategic nuclear delivery systems.
Sec. 1502. Transmission of executive branch reports providing Congress 
              with classified summaries of arms control developments.
Sec. 1503. Report on adequacy of emergency communications capabilities 
              between United States and Russia.
Sec. 1504. Russian nonstrategic nuclear weapons.

                 Subtitle B--Satellite Export Controls

Sec. 1511. Sense of Congress.
Sec. 1512. Certification of exports of missile equipment or technology 
              to China.
Sec. 1513. Satellite controls under the United States Munitions List.
Sec. 1514. National security controls on satellite export licensing.
Sec. 1515. Report on export of satellites for launch by People's 
              Republic of China.
Sec. 1516. Related items defined.

                Subtitle C--Other Export Control Matters

Sec. 1521. Authority for export control activities of the Department of 
              Defense.
Sec. 1522. Release of export information by Department of Commerce to 
              other agencies for purpose of national security 
              assessment.
Sec. 1523. Nuclear export reporting requirement.
Sec. 1524. Execution of objection authority within the Department of 
              Defense.

                Subtitle D--Counterproliferation Matters

Sec. 1531. One-year extension of counterproliferation authorities for 
              support of United Nations Special Commission on Iraq.
Sec. 1532. Sense of Congress on nuclear tests in South Asia.
Sec. 1533. Report on requirements for response to increased missile 
              threat in Asia-Pacific region.

                    Subtitle A--Arms Control Matters

     SEC. 1501. ONE-YEAR EXTENSION OF LIMITATION ON RETIREMENT OR 
                   DISMANTLEMENT OF STRATEGIC NUCLEAR DELIVERY 
                   SYSTEMS.

       Section 1302 of the National Defense Authorization Act for 
     Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1948) is 
     amended--
       (1) in subsections (a), (b), and (c)(2), by striking out 
     ``during fiscal year 1998'' and inserting in lieu thereof 
     ``during the strategic delivery systems retirement limitation 
     period'' ;
       (2) in subsection (c)(1), by striking out ``during fiscal 
     year 1998'';
       (3) in subsection (d)(1)--
       (A) by striking out ``for fiscal year 1998''; and
       (B) by striking out ``during fiscal year 1998''; and
       (4) by adding at the end the following new subsection:
       ``(g) Strategic Delivery Systems Retirement Limitation 
     Period.--For purposes of this section, the term ``strategic 
     delivery systems retirement limitation period'' means the 
     period of fiscal years 1998 and 1999.''.

     SEC. 1502. TRANSMISSION OF EXECUTIVE BRANCH REPORTS PROVIDING 
                   CONGRESS WITH CLASSIFIED SUMMARIES OF ARMS 
                   CONTROL DEVELOPMENTS.

       (a) Reporting Requirement.--The Director of the Arms 
     Control and Disarmament Agency (or the Secretary of State, if 
     the Arms Control and Disarmament Agency becomes an element of 
     the Department of State) shall transmit to the Committee on 
     National Security of the House of Representatives on a 
     periodic basis reports containing classified summaries of 
     arms control developments.
       (b) Contents of Reports.--The reports required by 
     subsection (a) shall include information reflecting the 
     activities of forums established to consider issues relating 
     to treaty implementation and treaty compliance.

     SEC. 1503. REPORT ON ADEQUACY OF EMERGENCY COMMUNICATIONS 
                   CAPABILITIES BETWEEN UNITED STATES AND RUSSIA.

       Not later than three months after the date of the enactment 
     of this Act, the Secretary of Defense shall submit to the 
     Committee on Armed Services of the Senate and the Committee 
     on National Security of the House of Representatives a report 
     on the status and adequacy of current direct communications 
     capabilities between the governments of the United States and 
     Russia. The report shall identify each existing direct 
     communications link between those governments and each such 
     link that is designed to be used, or is available to be used, 
     in an emergency situation. The Secretary shall describe in 
     the report any shortcomings with the existing 
     communications capabilities and shall include such 
     proposals as the Secretary considers appropriate to 
     improve those capabilities. In considering improvements to 
     propose, the Secretary shall assess the feasibility and 
     desirability of establishing a direct communications link 
     between the commanders of appropriate United States 
     unified and specified commands, including the United 
     States Space Command and the United States Strategic 
     Command, and their Russian counterparts.

     SEC. 1504. RUSSIAN NONSTRATEGIC NUCLEAR WEAPONS.

       (a) Findings.--The Congress makes the following findings:
       (1) The 7,000 to 12,000 or more nonstrategic (or 
     ``tactical'') nuclear weapons estimated by the United States 
     Strategic Command to be in the Russian arsenal may present 
     the greatest threat of sale or theft of a nuclear warhead in 
     the world today.
       (2) As the number of deployed strategic warheads in the 
     Russian and United States arsenals declines to just a few 
     thousand under the START accords, Russia's vast superiority 
     in tactical nuclear warheads--many of which have yields 
     equivalent to strategic nuclear weapons--could become 
     strategically destabilizing.
       (3) While the United States has unilaterally reduced its 
     inventory of tactical nuclear weapons by nearly 90 percent 
     since the end of the Cold War, Russia is behind schedule in 
     implementing the steep tactical nuclear arms reductions 
     pledged by former Soviet President Gorbachev in 1991 and 
     Russian President Yeltsin in 1992, perpetuating the dangers 
     from Russia's tactical nuclear stockpile.
       (b) Sense of Congress.--It is the sense of Congress that 
     the President should call on Russia to expedite reduction of 
     its tactical nuclear arsenal in accordance with the promises 
     made in 1991 and 1992.
       (c) Report.--Not later than March 15, 1999, the Secretary 
     of Defense shall submit to Congress a report on the 
     nonstrategic nuclear weapons of Russia. The report shall 
     include--
       (1) estimates regarding the current numbers, types, yields, 
     viability, and locations of those weapons;
       (2) an assessment of the strategic implications of Russia's 
     nonstrategic arsenal, including the potential use of those 
     weapons in a strategic role or the use of their components in 
     strategic nuclear systems and the potential of Russian 
     superiority in tactical nuclear weapons to destabilize the 
     overall nuclear balance as strategic nuclear weapons are 
     sharply reduced under the START accords;
       (3) an assessment of the extent of the current threat of 
     theft, sale, or unauthorized use of the warheads of those 
     weapons, including an analysis of Russian command and control 
     as it concerns the use of tactical nuclear weapons;
       (4) a summary of past, current, and planned efforts to work 
     cooperatively with Russia to account for, secure, and reduce 
     Russia's stockpile of tactical nuclear weapons and associated 
     fissile material;
       (5) a summary of how the United States would prevent, or 
     plans to cope militarily with, scenarios in which a 
     deterioration in relations with Moscow causes Russia to 
     redeploy tactical nuclear weapons or in which Russia 
     threatens to employ, or actually employs, tactical nuclear 
     weapons in a local or regional conflict involving the United 
     States or allies of the United States; and

[[Page H8169]]

       (6) an assessment of the steps that could be taken by the 
     United States to enhance military preparedness in order (A) 
     to deter any potential attempt by Russia to possibly exploit 
     its advantage in tactical nuclear weapons through coercive 
     ``nuclear diplomacy'' or on the battlefield, or (B) to 
     counter Russia if Russia should make such an attempt to 
     exploit its advantage in tactical nuclear weapons.
       (d) Views.--The Secretary of Defense shall include in the 
     report under subsection (c) the views of the Director of 
     Central Intelligence and of the commander of the United 
     States Strategic Command.

                 Subtitle B--Satellite Export Controls

     SEC. 1511. SENSE OF CONGRESS.

       It is the sense of Congress that--
       (1) United States business interests must not be placed 
     above United States national security interests;
       (2) United States foreign policy and the policies of the 
     United States regarding commercial relations with other 
     countries should affirm the importance of observing and 
     adhering to the Missile Technology Control Regime (MTCR);
       (3) the United States should encourage universal observance 
     of the Guidelines to the Missile Technology Control Regime;
       (4) the exportation or transfer of advanced communication 
     satellites and related technologies from United States 
     sources to foreign recipients should not increase the risks 
     to the national security of the United States;
       (5) due to the military sensitivity of the technologies 
     involved, it is in the national security interests of the 
     United States that United States satellites and related items 
     be subject to the same export controls that apply under 
     United States law and practices to munitions;
       (6) the United States should not issue any blanket waiver 
     of the suspensions contained in section 902 of the Foreign 
     Relations Authorization Act, Fiscal Years 1990 and 1991 
     (Public Law 101-246), regarding the export of satellites of 
     United States origin intended for launch from a launch 
     vehicle owned by the People's Republic of China;
       (7) the United States should pursue policies that protect 
     and enhance the United States space launch industry; and
       (8) the United States should not export to the People's 
     Republic of China missile equipment or technology that would 
     improve the missile or space launch capabilities of the 
     People's Republic of China.

     SEC. 1512. CERTIFICATION OF EXPORTS OF MISSILE EQUIPMENT OR 
                   TECHNOLOGY TO CHINA.

       The President shall certify to the Congress at least 15 
     days in advance of any export to the People's Republic of 
     China of missile equipment or technology (as defined in 
     section 74 of the Arms Export Control Act (22 U.S.C. 2797c)) 
     that--
       (1) such export is not detrimental to the United States 
     space launch industry; and
       (2) the missile equipment or technology, including any 
     indirect technical benefit that could be derived from such 
     export, will not measurably improve the missile or space 
     launch capabilities of the People's Republic of China.

     SEC. 1513. SATELLITE CONTROLS UNDER THE UNITED STATES 
                   MUNITIONS LIST.

       (a) Control of Satellites on the United States Munitions 
     List.--Notwithstanding any other provision of law, all 
     satellites and related items that are on the Commerce Control 
     List of dual-use items in the Export Administration 
     Regulations (15 C.F.R. Part 730 et seq.) on the date of the 
     enactment of this Act shall be transferred to the United 
     States Munitions List and controlled under section 38 of the 
     Arms Export Control Act (22 U.S.C. 2778).
       (b) Defense Trade Controls Registration Fees.--Section 45 
     of the State Department Basic Authorities Act of 1956 (22 
     U.S.C. 2717) is amended--
       (1) in subsection (a)--
       (A) by striking out ``$700,000'' and inserting in lieu 
     thereof ``100 percent''; and
       (B) by striking out ``(a) Defense Trade Controls 
     Registration Fees.--''; and
       (2) by striking out subsection (b).
       (c) Effective Date.--(1) Subsection (a) shall take effect 
     on March 15, 1999, and shall not apply to any export license 
     issued before such effective date or to any export 
     license application made under the Export Administration 
     Regulations before such effective date.
       (2) The amendments made by subsection (b) shall be 
     effective as of October 1, 1998.
       (d) Report.--Not later than January 1, 1999, the Secretary 
     of State, in consultation with the Secretary of Defense and 
     the Secretary of Commerce, shall submit to Congress a report 
     containing--
       (1) a detailed description of the plans of the Department 
     of State to implement the requirements of this section, 
     including any organizational changes that are required and 
     any Executive orders or regulations that may be required;
       (2) an identification and explanation of any steps that 
     should be taken to improve the license review process for 
     exports of the satellites and related items described in 
     subsection (a), including measures to shorten the timelines 
     for license application reviews, and any measures relating to 
     the transparency of the license review process and dispute 
     resolution procedures;
       (3) an evaluation of the adequacy of resources available to 
     the Department of State, including fiscal and personnel 
     resources, to carry out the additional activities required by 
     this section; and
       (4) any recommendations for additional actions, including 
     possible legislation, to improve the export licensing process 
     under the Arms Export Control Act for the satellites and 
     related items described in subsection (a).

     SEC. 1514. NATIONAL SECURITY CONTROLS ON SATELLITE EXPORT 
                   LICENSING.

       (a) Actions by the President.--Notwithstanding any other 
     provision of law, the President shall take such actions as 
     are necessary to implement the following requirements for 
     improving national security controls in the export licensing 
     of satellites and related items:
       (1) Mandatory technology control plans.--All export 
     licenses shall require a technology transfer control plan 
     approved by the Secretary of Defense and an encryption 
     technology transfer control plan approved by the Director of 
     the National Security Agency.
       (2) Mandatory monitors and reimbursement.--
       (A) Monitoring of Proposed Foreign Launch of Satellites.--
     In any case in which a license is approved for the export of 
     a satellite or related items for launch in a foreign country, 
     the Secretary of Defense shall monitor all aspects of the 
     launch in order to ensure that no unauthorized transfer of 
     technology occurs, including technical assistance and 
     technical data. The costs of such monitoring services shall 
     be fully reimbursed to the Department of Defense by the 
     person or entity receiving such services. All reimbursements 
     received under this subparagraph shall be credited to current 
     appropriations available for the payment of the costs 
     incurred in providing such services.
       (B) Contents of monitoring.--The monitoring under 
     subparagraph (A) shall cover, but not be limited to--
       (i) technical discussions and activities, including the 
     design, development, operation, maintenance, modification, 
     and repair of satellites, satellite components, missiles, 
     other equipment, launch facilities, and launch vehicles;
       (ii) satellite processing and launch activities, including 
     launch preparation, satellite transportation, integration of 
     the satellite with the launch vehicle, testing and checkout 
     prior to launch, satellite launch, and return of equipment to 
     the United States;
       (iii) activities relating to launch failure, delay, or 
     cancellation, including post-launch failure investigations; 
     and
       (iv) all other aspects of the launch.
       (3) Mandatory licenses for crash-investigations.--In the 
     event of the failure of a launch from a foreign country of a 
     satellite of United States origin--
       (A) the activities of United States persons or entities in 
     connection with any subsequent investigation of the failure 
     are subject to the controls established under section 38 of 
     the Arms Export Control Act, including requirements for 
     licenses issued by the Secretary of State for participation 
     in that investigation;
       (B) officials of the Department of Defense shall monitor 
     all activities associated with the investigation to insure 
     against unauthorized transfer of technical data or services; 
     and
       (C) the Secretary of Defense shall establish and implement 
     a technology transfer control plan for the conduct of the 
     investigation to prevent the transfer of information that 
     could be used by the foreign country to improve its missile 
     or space launch capabilities.
       (4) Mandatory notification and certification.--All 
     technology transfer control plans for satellites or related 
     items shall require any United States person or entity 
     involved in the export of a satellite of United States origin 
     or related items to notify the Department of Defense in 
     advance of all meetings and interactions with any foreign 
     person or entity providing launch services and require the 
     United States person or entity to certify after the launch 
     that it has complied with this notification requirement.
       (5) Mandatory intelligence community review.--The Secretary 
     of Commerce and the Secretary of State shall provide to the 
     Secretary of Defense and the Director of Central Intelligence 
     copies of all export license applications and technical 
     assistance agreements submitted for approval in connection 
     with launches in foreign countries of satellites to verify 
     the legitimacy of the stated end-user or end-users.
       (6) Mandatory sharing of approved licenses and 
     agreements.--The Secretary of State shall provide copies of 
     all approved export licenses and technical assistance 
     agreements associated with launches in foreign countries of 
     satellites to the Secretaries of Defense and Energy, the 
     Director of Central Intelligence, and the Director of the 
     Arms Control and Disarmament Agency.
       (7) Mandatory notification to congress on licenses.--Upon 
     issuing a license for the export of a satellite or related 
     items for launch in a foreign country, the head of the 
     department or agency issuing the license shall so notify 
     Congress.
       (8) Mandatory reporting on monitoring activities.--The 
     Secretary of Defense shall provide to Congress an annual 
     report on the monitoring of all launches in foreign countries 
     of satellites of United States origin.
       (9) Establishing safeguards program.--The Secretary of 
     Defense shall establish a program for recruiting, training, 
     and maintaining a staff dedicated to monitoring launches in 
     foreign countries of satellites and related items of United 
     States origin.
       (b) Exception.--This section shall not apply to the export 
     of a satellite or related items for launch in, or by 
     nationals of, a country that is a member of the North 
     Atlantic Treaty Organization or that is a major non-NATO ally 
     of the United States.
       (c) Effective Date.--The President shall take the actions 
     required by subsection (a) not later than 45 days after the 
     date of the enactment of this Act.

     SEC. 1515. REPORT ON EXPORT OF SATELLITES FOR LAUNCH BY 
                   PEOPLE'S REPUBLIC OF CHINA.

       (a) Requirement for Report.--Each report to Congress 
     submitted pursuant to subsection (b) of section 902 of the 
     Foreign Relations Authorization Act, Fiscal Years 1990 and 
     1991 (22

[[Page H8170]]

     U.S.C. 2151 note; Public Law 101-246) to waive the 
     restrictions contained in subsection (a) of that section on 
     the export to the People's Republic of China of any satellite 
     of United States origin or related items shall be accompanied 
     by a detailed justification setting forth the following:
       (1) A detailed description of all militarily sensitive 
     characteristics integrated within, or associated with, the 
     satellite.
       (2) An estimate of the number of United States civilian 
     contract personnel expected to be needed in country to carry 
     out the proposed satellite launch.
       (3)(A) A detailed description of the United States 
     Government's plan to monitor the proposed satellite launch to 
     ensure that no unauthorized transfer of technology occurs, 
     together with an estimate of the number of officers and 
     employees of the United States that are expected to be needed 
     in country to carry out monitoring of the proposed satellite 
     launch; and
       (B) the estimated cost to the Department of Defense of 
     monitoring the proposed satellite launch and the amount of 
     such cost that is to be reimbursed to the department.
       (4) The reasons why the proposed satellite launch is in the 
     national security interest of the United States.
       (5) The impact of the proposed export on employment in the 
     United States, including the number of new jobs created in 
     the United States, on a State-by-State basis, as a direct 
     result of the proposed export.
       (6) The number of existing jobs in the United States that 
     would be lost, on a State-by-State basis, as a direct result 
     of the proposed export not being licensed.
       (7) The impact of the proposed export on the balance of 
     trade between the United States and the People's Republic of 
     China and on reducing the current United States trade deficit 
     with the People's Republic of China.
       (8) The impact of the proposed export on the transition of 
     the People's Republic of China from a nonmarket economy to a 
     market economy and the long-term economic benefit to the 
     United States.
       (9) The impact of the proposed export on opening new 
     markets to United States-made products through the purchase 
     by the People's Republic of China of United States-made goods 
     and services not directly related to the proposed export.
       (10) The impact of the proposed export on reducing acts, 
     policies, and practices that constitute significant trade 
     barriers to United States exports or foreign direct 
     investment in the People's Republic of China by United States 
     nationals.
       (11) The increase that will result from the proposed export 
     in the overall market share of the United States for goods 
     and services in comparison to Japan, France, Germany, the 
     United Kingdom, and Russia.
       (12) The impact of the proposed export on the willingness 
     of the People's Republic of China to modify its commercial 
     and trade laws, practices, and regulations to make United 
     States-made goods and services more accessible to that 
     market.
       (13) The impact of the proposed export on the willingness 
     of the People's Republic of China to reduce formal and 
     informal trade barriers and tariffs, duties, and other fees 
     on United States-made goods and services entering that 
     country.
       (b) Militarily Sensitive Characteristics Defined.--In this 
     section, the term ``militarily sensitive characteristics'' 
     includes antijamming capability, antennas, crosslinks, 
     baseband processing, encryption devices, radiation-hardened 
     devices, propulsion systems, pointing accuracy, kick motors, 
     and other such characteristics as are specified by the 
     Secretary of Defense.

     SEC. 1516. RELATED ITEMS DEFINED.

       In this subtitle, the term ``related items'' means the 
     satellite fuel, ground support equipment, test equipment, 
     payload adapter or interface hardware, replacement parts, and 
     non-embedded solid propellant orbit transfer engines 
     described in the report submitted to Congress by the 
     Department of State on February 6, 1998, pursuant to section 
     38(f) of the Arms Export Control Act (22 U.S.C. 2778(f)).

                Subtitle C--Other Export Control Matters

     SEC. 1521. AUTHORITY FOR EXPORT CONTROL ACTIVITIES OF THE 
                   DEPARTMENT OF DEFENSE.

       (a) Functions of the Under Secretary for Policy.--Section 
     134(b) of title 10, United States Code, is amended by adding 
     at the end the following new paragraph:
       ``(3) Subject to the authority, direction, and control of 
     the Secretary of Defense, the Under Secretary shall have 
     responsibility for supervising and directing activities of 
     the Department of Defense relating to export controls.''.
       (b) Establishment of Deputy Under Secretary for Technology 
     Security Policy.--(1) Chapter 4 of title 10, United States 
     Code, is amended by inserting after section 134a the 
     following new section:

     ``Sec. 134b. Deputy Under Secretary of Defense for Technology 
       Security Policy

       ``(a) There is in the Office of the Under Secretary of 
     Defense for Policy a Deputy Under Secretary of Defense for 
     Technology Security Policy.
       ``(b) The Deputy Under Secretary serves as the Director of 
     the Defense Technology Security Administration (or any 
     successor organization charged with similar 
     responsibilities).
       ``(c) The principal duties of the Deputy Under Secretary 
     are--
       ``(1) assisting the Under Secretary of Defense for Policy 
     in supervising and directing the activities of the Department 
     of Defense relating to export controls; and
       ``(2) assisting the Under Secretary of Defense for Policy 
     in developing policies and positions regarding the 
     appropriate export control policies and procedures that are 
     necessary to protect the national security interests of the 
     United States.
       ``(d) The Deputy Under Secretary shall perform such 
     additional duties and exercise such authority as the 
     Secretary of Defense may prescribe.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     134a the following new item:
``134b. Deputy Under Secretary of Defense for Technology Security 
              Policy.''.
       (c) Time for Implementation.--The Secretary of Defense 
     shall complete the actions necessary to implement the 
     amendment made by subsection (a) and to establish the office 
     of Deputy Under Secretary of Defense for Technology Security 
     Policy in accordance with section 134b of title 10, United 
     States Code, as added by subsection (b), not later than 60 
     days after the date of the enactment of this Act.
       (d) Report.--Not later than 90 days after the date of the 
     enactment of this Act, the Secretary of Defense shall submit 
     to the Committee on Armed Services of the Senate and the 
     Committee on National Security of the House of 
     Representatives a report on the plans of the Secretary for 
     implementing the amendments made by subsections (a) and (b). 
     The report shall include the following:
       (1) A description of any organizational changes that are to 
     be made within the Department of Defense to implement those 
     amendments.
       (2) A description of the role of the Chairman of the Joint 
     Chiefs of Staff in the export control activities of the 
     Department of Defense after those subsections are 
     implemented, together with a discussion of how that role 
     compares to the Chairman's role in those activities before 
     the implementation of those subsections.

     SEC. 1522. RELEASE OF EXPORT INFORMATION BY DEPARTMENT OF 
                   COMMERCE TO OTHER AGENCIES FOR PURPOSE OF 
                   NATIONAL SECURITY ASSESSMENT.

       (a) Release of Export Information.--The Secretary of 
     Commerce shall, upon the written request of an official 
     specified in subsection (c), transmit to that official any 
     information relating to exports that is held by the 
     Department of Commerce and is requested by that official for 
     the purpose of assessing national security risks. The 
     Secretary shall transmit such information within 10 
     business days after receiving such a request.
       (b) Nature of Information.--The information referred to in 
     subsection (a) includes information concerning--
       (1) export licenses issued by the Department of Commerce;
       (2) exports that were carried out under an export license 
     issued by the Department of Commerce; and
       (3) exports from the United States that were carried out 
     without an export license.
       (c) Requesting Officials.--The officials referred to in 
     subsection (a) are the Secretary of State, the Secretary of 
     Defense, the Secretary of Energy, and the Director of Central 
     Intelligence. Each of those officials may delegate to any 
     other official within their respective departments and agency 
     the authority to request information under subsection (a).

     SEC. 1523. NUCLEAR EXPORT REPORTING REQUIREMENT.

       (a) Notification of Congress.--The President shall notify 
     Congress upon the granting of a license by the Nuclear 
     Regulatory Commission for the export or reexport of any 
     nuclear-related technology or equipment, including source 
     material, special nuclear material, or equipment or material 
     especially designed or prepared for the processing, use, or 
     production of special nuclear material.
       (b) Applicability.--The requirements of this section shall 
     apply only to an export or reexport to a country that--
       (1) the President has determined is a country that has 
     detonated a nuclear explosive device; and
       (2) is not a member of the North Atlantic Treaty 
     Organization.

     SEC. 1524. EXECUTION OF OBJECTION AUTHORITY WITHIN THE 
                   DEPARTMENT OF DEFENSE.

       Section 1211 of the National Defense Authorization Act for 
     Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1932) is 
     amended by adding at the end the following new subsection:
       ``(g) Delegation of Objection Authority Within the 
     Department of Defense.--For the purposes of the Department of 
     Defense, the authority to issue an objection referred to in 
     subsection (a) shall be executed for the Secretary of Defense 
     by an official at the Assistant Secretary level within the 
     office of the Under Secretary of Defense for Policy. In 
     implementing subsection (a), the Secretary of Defense shall 
     ensure that Department of Defense procedures maximize the 
     ability of the Department of Defense to be able to issue an 
     objection within the 10-day period specified in subsection 
     (c).''.

                Subtitle D--Counterproliferation Matters

     SEC. 1531. ONE-YEAR EXTENSION OF COUNTERPROLIFERATION 
                   AUTHORITIES FOR SUPPORT OF UNITED NATIONS 
                   SPECIAL COMMISSION ON IRAQ.

       (a) Amount Authorized for Fiscal Year 1999.--The total 
     amount of assistance for fiscal year 1999 provided by the 
     Secretary of Defense under section 1505 of the Weapons of 
     Mass Destruction Control Act of 1992 (22 U.S.C. 5859a) that 
     is provided for activities of the Department of Defense in 
     support of the United Nations Special Commission on Iraq, may 
     not exceed $15,000,000.
       (b) Extension of Authority To Provide Assistance.--
     Subsection (f) of section 1505 of the Weapons of Mass 
     Destruction Control Act of

[[Page H8171]]

     1992 (22 U.S.C. 5859a) is amended by striking out ``1998'' 
     and inserting in lieu thereof ``1999''.

     SEC. 1532. SENSE OF CONGRESS ON NUCLEAR TESTS IN SOUTH ASIA.

       The Congress--
       (1) strongly condemns the decisions by the Governments of 
     India and Pakistan to conduct nuclear tests in May 1998;
       (2) calls for the Governments of India and Pakistan to 
     commit not to conduct any additional nuclear tests;
       (3) urges the Governments of India and Pakistan to take 
     immediate steps to reduce tensions between the two countries;
       (4) urges India and Pakistan to engage in high-level 
     dialogue aimed at reducing the likelihood of armed conflict, 
     enacting confidence and security building measures, and 
     resolving areas of dispute;
       (5) commends all nations to take steps which will reduce 
     tensions in South Asia, including appropriate measures to 
     prevent the transfer of technology that could further 
     exacerbate the arms race in South Asia, and thus avoid 
     further deterioration of security there;
       (6) calls upon the President, leaders of all nations, and 
     the United Nations to encourage a diplomatic, negotiated 
     solution between the governments of India and Pakistan to 
     promote peace and stability in South Asia and resolve the 
     current impasse;
       (7) encourages United States diplomatic leadership in 
     assisting the governments of India and Pakistan to seek a 
     negotiated resolution of their 50-year conflict over the 
     disputed territory in Kashmir;
       (8) urges India and Pakistan to take immediate, binding, 
     and verifiable steps to roll back their nuclear programs and 
     come into compliance with internationally accepted norms 
     regarding the proliferation of weapons of mass destruction; 
     and
       (9) urges the United States to reevaluate its bilateral 
     relationship with India and Pakistan, in light of the new 
     regional security realities in South Asia, with the goal of 
     preventing further nuclear and ballistic missile 
     proliferation, diffusing long-standing regional rivalries 
     between India and Pakistan, and securing commitments from 
     India and Pakistan which, if carried out, could result in a 
     calibrated lifting of United States sanctions imposed under 
     the Arms Export Control Act and the Nuclear Proliferation 
     Prevention Act of 1994.

     SEC. 1533. REPORT ON REQUIREMENTS FOR RESPONSE TO INCREASED 
                   MISSILE THREAT IN ASIA-PACIFIC REGION.

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

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

     SEC. 2001. SHORT TITLE.

       This division may be cited as the ``Military Construction 
     Authorization Act for Fiscal Year 1999''.

                            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. Modification of authority to carry out fiscal year 1998 
              projects.

     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...........................  Anniston Army Depot.      $3,550,000
                                    Fort Rucker.........     $14,300,000
                                    Redstone Arsenal....      $1,550,000
Alaska............................  Fort Wainwright.....     $22,600,000
California........................  Fort Irwin..........     $14,800,000
Georgia...........................  Fort Benning........     $28,600,000
Hawaii............................  Schofield Barracks..     $71,000,000
Illinois..........................  Rock Island Arsenal.      $5,300,000
Indiana...........................  Crane Army                $7,100,000
                                     Ammunition Activity
Kansas............................  Fort Riley..........     $41,000,000
Kentucky..........................  Blue Grass Army           $5,300,000
                                     Depot.
                                    Fort Campbell.......     $75,000,000
                                    Fort Knox...........     $23,000,000
Louisiana.........................  Fort Polk...........      $8,300,000
Maryland..........................  Fort Detrick........      $3,550,000
                                    Fort Meade..........      $5,300,000
Missouri..........................  Fort Leonard Wood...     $28,200,000
New Jersey........................  Fort Monmouth.......      $7,600,000
                                    Picatinny Arsenal...      $8,400,000
New York..........................  Fort Drum...........      $4,650,000
                                    United States            $85,000,000
                                     Military Academy,
                                     West Point.........
North Carolina....................  Fort Bragg..........     $95,900,000
Oklahoma..........................  Fort Sill...........     $13,800,000
                                    McAlester Army           $10,800,000
                                     Ammunition Plant...
Texas.............................  Fort Bliss..........      $4,100,000
                                    Fort Hood...........     $32,500,000
                                    Fort Sam Houston....     $27,300,000
Utah..............................  Tooele Army Depot...      $3,900,000
Virginia..........................  National Ground          $46,200,000
                                     Intelligence
                                     Center,
                                     Charlottesville....
                                    Fort Eustis.........     $41,181,000
                                    Fort Myer...........      $6,200,000
Washington........................  Fort Lewis..........     $18,200,000
CONUS Classified..................  Classified Location.      $4,600,000
                                                         ---------------
                                        Total...........    $768,781,000
------------------------------------------------------------------------

       (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
------------------------------------------------------------------------
Belgium...........................  80th Area Support         $6,300,000
                                     Group.
Germany...........................  Schweinfurt.........     $18,000,000
                                    Wurzburg............      $4,250,000
Korea.............................  Camp Casey..........     $21,400,000
                                    Camp Castle.........     $18,226,000
                                    Camp Humphreys......      $8,500,000
                                    Camp Stanley........      $5,800,000
Kwajalein.........................  Kwajalein Atoll.....     $48,600,000
                                                         ---------------
                                        Total...........    $131,076,000
------------------------------------------------------------------------

     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
----------------------------------------------------------------------------------------------------------------
Alabama..................................  Redstone Arsenal............  118 Units..............     $14,000,000
Hawaii...................................  Schofield Barracks..........  64 Units...............     $14,700,000
North Carolina...........................  Fort Bragg..................  170 Units..............     $19,800,000
Texas....................................  Fort Hood...................  154 Units..............     $21,600,000
Virginia.................................  Fort Lee....................  80 Units...............     $13,000,000
                                                                                                 ---------------
                                                                           Total................     $83,100,000
----------------------------------------------------------------------------------------------------------------

       (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 $6,350,000.

     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 $48,479,000.

     SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

       (a) In General.--Funds are hereby authorized to be 
     appropriated for fiscal years beginning after September 30, 
     1998, for military construction, land acquisition, and 
     military family housing functions of the Department of the 
     Army in the total amount of $2,098,713,000 as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2101(a), $609,781,000.
       (2) For military construction projects outside the United 
     States authorized by section 2101(b), $95,076,000.
       (3) For unspecified minor construction projects authorized 
     by section 2805 of title 10, United States Code, $12,500,000.
       (4) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $64,269,000.
       (5) For military family housing functions:
       (A) For construction and acquisition, planning and design, 
     and improvement of military family housing and facilities, 
     $137,929,000.
       (B) For support of military family housing (including the 
     functions described in section 2833 of title 10, United 
     States Code), $1,097,697,000.

[[Page H8172]]

       (6) For the construction of the missile software 
     engineering annex, phase II, Redstone Arsenal, Alabama, 
     authorized by section 2101(a) of the Military Construction 
     Authorization Act for Fiscal Year 1998 (division B of Public 
     Law 105-85; 111 Stat. 1966), $13,600,000.
       (7) For the construction of a disciplinary barracks, phase 
     II, Fort Leavenworth, Kansas, authorized by section 2101(a) 
     of the Military Construction Authorization Act for Fiscal 
     Year 1998, $29,000,000.
       (8) For the construction of the whole barracks complex 
     renewal, Fort Sill, Oklahoma, authorized by section 2101(a) 
     of the Military Construction Authorization Act for Fiscal 
     Year 1998, $20,500,000.
       (9) For rail yard expansion at Fort Carson, Colorado, 
     authorized by section 2101(a) of the Military Construction 
     Authorization Act for Fiscal Year 1998, $23,000,000.
       (10) For the construction of an aerial gunnery range at 
     Fort Drum, New York, authorized by section 2101(a) of the 
     Military Construction Authorization Act for Fiscal Year 1998, 
     $9,000,000.
       (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);
       (2) $16,000,000 (the balance of the amount authorized under 
     section 2101(a) for the construction of a multipurpose 
     digital training range at Fort Knox, Kentucky);
       (3) $15,000,000 (the balance of the amount authorized under 
     section 2101(a) for the construction of a railhead facility 
     at Fort Hood, Texas);
       (4) $73,000,000 (the balance of the amount authorized under 
     section 2101(a) for the construction of a cadet development 
     center at the United States Military Academy, West Point, New 
     York);
       (5) $36,000,000 (the balance of the amount authorized under 
     section 2101(b) for the construction of a powerplant on Roi 
     Namur Island at Kwajalein Atoll, Kwajalein);
       (6) $3,500,000 (the balance of the amount authorized under 
     section 2101(a) for the construction of the whole barracks 
     complex renewal at Fort Wainwright, Alaska);
       (7) $24,500,000 (the balance of the amount authorized under 
     section 2101(a) for the construction of the whole barracks 
     complex renewal at Fort Riley, Kansas); and
       (8) $27,000,000 (the balance of the amount authorized under 
     section 2101(a) for the construction of the whole barracks 
     complex renewal at Fort Campbell, Kentucky).
       (c) Adjustments.--The total amount authorized to be 
     appropriated pursuant to paragraphs (1) through (10) of 
     subsection (a) is the sum of the amounts authorized to be 
     appropriated in such paragraphs, reduced by--
       (1) $2,639,000, which represents the combination of project 
     savings in military family housing construction resulting 
     from favorable bids, reduced overhead costs, and 
     cancellations due to force structure changes;
       (2) $3,000,000, which represents the combination of savings 
     in military family housing support resulting from favorable 
     bids, reduced overhead costs, and cancellations due to force 
     structure changes; and
       (3) $8,000,000, which represents the combination of project 
     savings in military construction resulting from favorable 
     bids, reduced overhead costs, and cancellations due to force 
     structure changes.

     SEC. 2105. MODIFICATION OF AUTHORITY TO CARRY OUT FISCAL YEAR 
                   1998 PROJECTS.

       (a) Modification.--The table in section 2101(a) of the 
     Military Construction Authorization Act for Fiscal Year 1998 
     (division B of Public Law 105-85; 111 Stat. 1967) is 
     amended--
       (1) in the item relating to Fort Drum, New York, by 
     striking out ``$24,400,000'' in the amount column and 
     inserting in lieu thereof ``$24,900,000'';
       (2) in the item relating to Fort Sill, Oklahoma, by 
     striking out ``$25,000,000'' in the amount column and 
     inserting in lieu thereof ``$28,500,000''; and
       (3) by striking out the amount identified as the total in 
     the amount column and inserting in lieu thereof 
     ``$602,750,000''.
       (b) Conforming Amendments.--Section 2104 of that Act (111 
     Stat. 1968) is amended--
       (1) in subsection (a)--
       (A) in the matter preceding paragraph (1), by striking out 
     ``$2,010,466,000'' and inserting in lieu thereof 
     ``$2,013,966,000''; and
       (B) in paragraph (1), by striking out ``$435,350,000'' and 
     inserting in lieu thereof ``$438,850,000''; and
       (2) in subsection (b)(8), by striking out ``$8,500,000'' 
     and inserting in lieu thereof ``$9,000,000''.

                            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 to accept road construction project, Marine 
              Corps Base, Camp Lejeune, North Carolina.

     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...........................  Marine Corps Air         $11,010,000
                                     Station, Yuma.
                                    Naval Observatory           $990,000
                                     Detachment,
                                     Flagstaff..........
California........................  Marine Corps Air         $29,570,000
                                     Station, Miramar...
                                    Marine Corps Base,       $40,430,000
                                     Camp Pendleton.....
                                    Naval Air Station,       $20,640,000
                                     Lemoore.
                                    Naval Air Warfare        $10,140,000
                                     Center Weapons
                                     Division, China
                                     Lake.
                                    Naval Facility, San       $8,350,000
                                     Clemente Island....
                                    Naval Submarine          $11,400,000
                                     Base, San Diego.
Connecticut.......................  Naval Submarine          $11,330,000
                                     Base, New London...
District of Columbia..............  Naval District,             $790,000
                                     Washington.
Florida...........................  Naval Air Station,        $3,730,000
                                     Key West.
                                    Naval Air Station,        $1,500,000
                                     Jacksonville.
                                    Naval Air Station,        $1,400,000
                                     Whiting Field.
                                    Naval Station,            $6,163,000
                                     Mayport.
Georgia...........................  Marine Corps              $2,800,000
                                     Logistics Base,
                                     Albany.............
                                    Naval Submarine           $2,550,000
                                     Base, Kings Bay....
Hawaii............................  Fleet and Industrial      $9,730,000
                                     Supply Center,
                                     Pearl Harbor.......
                                    Marine Corps Air         $46,410,000
                                     Station, Kaneohe
                                     Bay................
                                    Naval Communications      $1,970,000
                                     &
                                     Telecommunications
                                     Area Master Station
                                     Eastern Pacific,
                                     Wahiawa............
                                    Naval Shipyard,          $11,400,000
                                     Pearl Harbor.
                                    Naval Station, Pearl     $18,180,000
                                     Harbor.
                                    Naval Submarine           $8,060,000
                                     Base, Pearl Harbor.
                                    Navy Public Works        $28,967,000
                                     Center, Pearl
                                     Harbor.............
Illinois..........................  Naval Training           $19,950,000
                                     Center, Great Lakes
Indiana...........................  Naval Surface            $11,110,000
                                     Warfare Center,
                                     Crane..............
Maryland..........................  Naval Surface            $13,270,000
                                     Warfare Center,
                                     Indian Head
                                     Division, Indian
                                     Head...............
                                    United States Naval       $4,300,000
                                     Academy............
Mississippi.......................  Naval Air Station,        $3,280,000
                                     Meridian.
                                    Naval Construction       $10,670,000
                                     Battalion Center,
                                     Gulfport...........
North Carolina....................  Marine Corps Air          $6,040,000
                                     Station, Cherry
                                     Point..............
                                    Marine Corps Base,       $14,600,000
                                     Camp LeJeune.......
Pennsylvania......................  Naval Surface             $2,410,000
                                     Warfare Center Ship
                                     Systems Engineering
                                     Station,
                                     Philadelphia.......
                                    Naval Inventory           $1,600,000
                                     Control Point,
                                     Mechanicsburg......
                                    Naval Inventory           $1,550,000
                                     Control Point,
                                     Philadelphia.......
Rhode Island......................  Naval Education and       $5,630,000
                                     Training Center,
                                     Newport............
                                    Naval Undersea            $9,140,000
                                     Warfare Center
                                     Division, Newport..
South Carolina....................  Marine Corps Air          $1,770,000
                                     Station, Beaufort..
                                    Marine Corps Reserve     $15,990,000
                                     Detachment, Parris
                                     Island.............
                                    Naval Weapons             $9,737,000
                                     Station, Charleston
Texas.............................  Naval Station,           $12,200,000
                                     Ingleside.
Virginia..........................  Fleet and Industrial      $1,770,000
                                     Supply Center,
                                     Norfolk (Craney
                                     Island)............
                                    Fleet Training            $5,700,000
                                     Center, Norfolk.
                                    Naval Air Station,        $6,400,000
                                     Oceana.
                                    Naval Shipyard,           $6,180,000
                                     Norfolk, Portsmouth
                                    Naval Station,           $45,530,000
                                     Norfolk.
                                    Naval Surface            $15,680,000
                                     Warfare Center,
                                     Dahlgren...........
                                    Tactical Training         $2,430,000
                                     Group Atlantic, Dam
                                     Neck...............
Washington........................  Naval Shipyard,           $4,300,000
                                     Puget Sound.
                                    Strategic Weapons         $2,750,000
                                     Facility Pacific,
                                     Bremerton..........
                                                         ---------------
                                        Total...........    $521,497,000
------------------------------------------------------------------------

       (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
------------------------------------------------------------------------
Greece............................  Naval Support             $5,260,000
                                     Activity, Souda Bay
Guam..............................  Naval Activities,        $10,310,000
                                     Guam.

[[Page H8173]]

 
Italy.............................  Naval Support            $18,270,000
                                     Activity, Naples.
United Kingdom....................  Joint Maritime            $2,010,000
                                     Communications
                                     Center, St. Mawgan.
                                                         ---------------
                                        Total...........     $35,850,000
------------------------------------------------------------------------

     SEC. 2202. FAMILY HOUSING.

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

                                              Navy: Family Housing
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or location             Purpose               Amount
----------------------------------------------------------------------------------------------------------------
California..............................  Naval Air Station, Lemoore  162 Units.................     $30,379,000
Hawaii..................................  Navy Public Works Center,   150 Units.................     $29,125,000
                                           Pearl Harbor.............
                                                                                                 ---------------
                                                                        Total...................     $59,504,000
----------------------------------------------------------------------------------------------------------------

       (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 $15,618,000.

     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 $227,791,000.

     SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

       (a) In General.--Funds are hereby authorized to be 
     appropriated for fiscal years beginning after September 30, 
     1998, for military construction, land acquisition, and 
     military family housing functions of the Department of the 
     Navy in the total amount of $1,812,476,000 as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2201(a), $503,997,000.
       (2) For military construction projects outside the United 
     States authorized by section 2201(b), $35,850,000.
       (3) For unspecified minor construction projects authorized 
     by section 2805 of title 10, United States Code, $9,900,000.
       (4) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $60,846,000.
       (5) For military family housing functions:
       (A) For construction and acquisition, planning and design, 
     and improvement of military family housing and facilities, 
     $302,913,000.
       (B) For support of military housing (including functions 
     described in section 2833 of title 10, United States Code), 
     $915,293,000.
       (b) Limitation on Total Cost of Construction Projects.--
     Notwithstanding the cost variations authorized by section 
     2853 of title 10, United States Code, and any other cost 
     variation authorized by law, the total cost of all projects 
     carried out under section 2201 of this Act may not exceed--
       (1) the total amount authorized to be appropriated under 
     paragraphs (1) and (2) of subsection (a);
       (2) $13,500,000 (the balance of the amount authorized under 
     section 2202(a) for the construction of a berthing pier at 
     Naval Station, Norfolk, Virginia); and
       (3) $4,000,000 (the balance of the amount authorized under 
     section 2201(a) for the construction of a bachelor enlisted 
     quarters at Marine Corps Air Station, Kaneohe Bay, Hawaii).
       (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--
       (1) $7,323,000, which represents the combination of project 
     savings in military family housing construction resulting 
     from favorable bids, reduced overhead costs, and 
     cancellations due to force structure changes;
       (2) $3,000,000, which represents the combination of savings 
     in military family housing support resulting from favorable 
     bids, reduced overhead costs, and cancellations due to force 
     structure changes; and
       (3) $6,000,000, which represents the combination of project 
     savings in military construction resulting from favorable 
     bids, reduced overhead costs, and cancellations due to force 
     structure changes.

     SEC. 2205. AUTHORIZATION TO ACCEPT ROAD CONSTRUCTION PROJECT, 
                   MARINE CORPS BASE, CAMP LEJEUNE, NORTH 
                   CAROLINA.

       The Secretary of the Navy may accept from the State of 
     North Carolina a road construction project valued at 
     approximately $2,000,000, which is to be constructed at 
     Marine Corps Base, Camp Lejeune, North Carolina, in 
     accordance with plans and specifications acceptable to the 
     Secretary.

                         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. 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        $19,398,000
                                     Base.
Alaska............................  Eielson Air Force         $4,352,000
                                     Base.
Arizona...........................  Luke Air Force Base.      $3,400,000
Arkansas..........................  Little Rock Air           $1,500,000
                                     Force Base.
California........................  Edwards Air Force        $10,361,000
                                     Base.
                                    Travis Air Force          $4,250,000
                                     Base.
                                    Vandenberg Air Force     $18,709,000
                                     Base.
Colorado..........................  Falcon Air Force          $9,601,000
                                     Station.
                                    United States Air         $4,413,000
                                     Force Academy......
District of Columbia..............  Bolling Air Force         $2,948,000
                                     Base.
Florida...........................  Eglin Air Force Base     $20,437,000
                                    Eglin Auxiliary           $3,837,000
                                     Field 9.
                                    MacDill Air Force         $9,808,000
                                     Base.
                                    Tyndall Air Force         $3,600,000
                                     Base.
Georgia...........................  Robins Air Force         $11,894,000
                                     Base.
Hawaii............................  Hickam Air Force          $5,890,000
                                     Base.
Idaho.............................  Mountain Home Air        $17,897,000
                                     Force Base.........
Kansas............................  McConnell Air Force       $4,450,000
                                     Base.
Louisiana.........................  Barksdale Air Force       $9,300,000
                                     Base.
Maryland..........................  Andrews Air Force         $4,448,000
                                     Base.
Massachusetts.....................  Hanscom Air Force        $10,000,000
                                     Base.
Mississippi.......................  Columbus Air Force        $5,700,000
                                     Base.
                                    Keesler Air Force        $35,526,000
                                     Base.
Montana...........................  Malmstrom Air Force       $7,900,000
                                     Base.
Nevada............................  Indian Springs Air       $15,013,000
                                     Force Auxiliary Air
                                     Field..............
                                    Nellis Air Force          $6,378,000
                                     Base.
New Jersey........................  McGuire Air Force         $6,044,000
                                     Base.
New Mexico........................  Holloman Air Force       $11,100,000
                                     Base.
                                    Kirtland Air Force        $8,574,000
                                     Base.
North Carolina....................  Seymour Johnson Air       $6,100,000
                                     Force Base.........
North Dakota......................  Grand Forks Air          $11,486,000
                                     Force Base.
                                    Minot Air Force Bae.      $8,500,000
Ohio..............................  Wright-Patterson Air     $22,000,000
                                     Force Base.........
Oklahoma..........................  Altus Air Force Base      $9,300,000
                                    Tinker Air Force         $24,985,000
                                     Base.
                                    Vance Air Force Base      $6,223,000
South Carolina....................  Charleston Air Force     $24,330,000
                                     Base.
South Dakota......................  Ellsworth Air Force       $6,500,000
                                     Base.
Tennessee.........................  Arnold Air Force         $11,600,000
                                     Base.
Texas.............................  Dyess Air Force Base      $4,750,000
                                    Goodfellow Air Force      $7,300,000
                                     Base.
                                    Lackland Air Force       $14,930,000
                                     Base.
                                    Laughlin Air Force        $7,315,000
                                     Base.
                                    Randolph Air Force        $3,166,000
                                     Base.
Utah..............................  Hill Air Force Base.      $2,600,000
Washington........................  Fairchild Air Force      $15,220,000
                                     Base.
                                    McChord Air Force        $51,847,000
                                     Base.
                                                         ---------------
                                        Total...........    $514,880,000
------------------------------------------------------------------------

       (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      $9,501,000
Korea.............................  Kunsan Air Base.....      $5,958,000
                                    Osan Air Base.......      $7,496,000
Turkey............................  Incirlik Air Base...      $2,949,000
United Kingdom....................  Royal Air Force,         $15,838,000
                                     Lakenheath.
                                    Royal Air Force,         $24,960,000
                                     Mildenhall.
                                                         ---------------
                                        Total...........     $66,702,000
------------------------------------------------------------------------

     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:

[[Page H8174]]

       

                        Air Force: Family Housing
------------------------------------------------------------------------
                               Installation or
            State                  location      Purpose      Amount
------------------------------------------------------------------------
Alabama......................  Maxwell Air      143          $16,300,000
                                Force Base....   Units..
Alaska.......................  Eielson Air      46 Units     $12,932,000
                                Force Base....
California...................  Edwards Air      48 Units     $12,580,000
                                Force Base....
                               Vandenberg Air   95 Units     $18,499,000
                                Force Base....
Delaware.....................  Dover Air Force  55 Units      $8,998,000
                                Base.
Florida......................  MacDill Air      48 Units      $7,609,000
                                Force Base.
                               Patrick Air      46 Units      $9,692,000
                                Force Base.
                               Tyndall Air      122          $14,500,000
                                Force Base.      Units.
Mississippi..................  Columbus Air     52 Units      $6,800,000
                                Force Base.
                               Keesler Air      52 Units      $6,800,000
                                Force Base.
Montana......................  Malmstrom Air    50 Units     $10,000,000
                                Force Base.
Nebraska.....................  Offutt Air       Ancillar        $870,000
                                Force Base....   y
                                                 Facilit
                                                 y......
                               Offutt Air       Ancillar        $900,000
                                Force Base....   y
                                                 Facilit
                                                 y......
                               Offutt Air       90 Units     $12,212,000
                                Force Base....
Nevada.......................  Nellis Air       28 Units      $5,000,000
                                Force Base....
New Mexico...................  Kirtland Air     37 Units      $6,400,000
                                Force Base....
Ohio.........................  Wright-          40 Units      $5,600,000
                                Patterson Air
                                Force Base....
Texas........................  Dyess Air Force  64 Units      $9,415,000
                                Base.
                               Sheppard Air     65 Units      $7,000,000
                                Force Base....
Washington...................  Fairchild Air    Ancillar      $1,692,000
                                Force Base....   y
                                                 Facilit
                                                 y......
                               Fairchild Air    14 Units      $2,300,000
                                Force Base....
                                                         ---------------
                                                  Total.    $176,099,000
------------------------------------------------------------------------

       (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 $11,342,000.

     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 $104,108,000.

     SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

       (a) In General.--Funds are hereby authorized to be 
     appropriated for fiscal years beginning after September 30, 
     1998, for military construction, land acquisition, and 
     military family housing functions of the Department of the 
     Air Force in the total amount of $1,679,978,000 as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2301(a), $514,880,000.
       (2) For military construction projects outside the United 
     States authorized by section 2301(b), $66,702,000.
       (3) For unspecified minor construction projects authorized 
     by section 2805 of title 10, United States Code, $8,135,000.
       (4) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $38,092,000.
       (5) For military housing functions:
       (A) For construction and acquisition, planning and design, 
     and improvement of military family housing and facilities, 
     $291,549,000.
       (B) For support of military family housing (including the 
     functions described in section 2833 of title 10, United 
     States Code), $785,204,000.
       (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--
       (1) $10,584,000, which represents the combination of 
     project savings in military family housing construction 
     resulting from favorable bids, reduced overhead costs, and 
     cancellations due to force structure changes;
       (2) $2,000,000,000, which represents the combination of 
     savings in military family housing support resulting from 
     favorable bids, reduced overhead costs, and cancellations due 
     to force structure changes; and
       (3) $12,000,000, which represents the combination of 
     project savings in military construction resulting from 
     favorable bids, reduced overhead costs, and cancellations due 
     to force structure changes.

                      TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land 
              acquisition projects.
Sec. 2402. Improvements to military family housing units.
Sec. 2403. Energy conservation projects.
Sec. 2404. Authorization of appropriations, Defense Agencies.
Sec. 2405. Repeal of fiscal year 1997 authorization of appropriations 
              for certain military housing improvement program.
Sec. 2406. Modification of authority to carry out certain fiscal year 
              1995 projects.
Sec. 2407. Modification of authority to carry out fiscal year 1990 
              project.

     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 
     2404(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
------------------------------------------------------------------------
Chemical Demilitarization.........  Aberdeen Proving        $186,350,000
                                     Ground, Maryland...
                                    Newport Army Depot,     $191,550,000
                                     Indiana............
Defense Logistics Agency..........  Defense Fuel Support      $3,500,000
                                     Point, Fort Sill,
                                     Oklahoma...........
                                    Defense Fuel Support     $11,020,000
                                     Point, Jacksonville
                                     Annex, Mayport,
                                     Florida............
                                    Defense Fuel Support     $11,000,000
                                     Point,
                                     Jacksonville,
                                     Florida............
                                    Defense General          $10,500,000
                                     Supply Center,
                                     Richmond (DLA),
                                     Virginia...........
                                    Defense Fuel Supply       $5,300,000
                                     Center, Camp
                                     Shelby, Mississippi
                                    Defense Fuel Supply      $19,500,000
                                     Center, Elmendorf
                                     Air Force Base,
                                     Alaska.............
                                    Defense Fuel Supply       $4,100,000
                                     Center, Pope Air
                                     Force Base, North
                                     Carolina...........
                                    Various Locations...      $1,300,000
Defense Medical Facilities Office.  Barksdale Air Force       $3,450,000
                                     Base, Louisiana....
                                    Beale Air Force           $3,500,000
                                     Base, California...
                                    Carlisle Barracks,        $4,678,000
                                     Pennsylvania.......
                                    Cheatham Annex,          $11,300,000
                                     Virginia.
                                    Edwards Air Force         $6,000,000
                                     Base, California...
                                    Eglin Air Force           $9,200,000
                                     Base, Florida.
                                    Fort Bragg, North         $6,500,000
                                     Carolina.
                                    Fort Hood, Texas....     $14,100,000
                                    Fort Stewart/Hunter      $10,400,000
                                     Army Air Field,
                                     Georgia............
                                    Grand Forks Air           $5,600,000
                                     Force Base, North
                                     Dakota.............
                                    Holloman Air Force        $1,300,000
                                     Base, New Mexico...
                                    Keesler Air Force           $700,000
                                     Base, Mississippi..
                                    Marine Corps Air          $6,300,000
                                     Station, Camp
                                     Pendleton,
                                     California.........
                                    McChord Air Force        $20,000,000
                                     Base, Washington...
                                    Moody Air Force          $11,000,000
                                     Base, Georgia......
                                    Naval Air Station,       $25,400,000
                                     Pensacola, Florida.
                                    Naval Hospital,          $28,000,000
                                     Bremerton,
                                     Washington.........
                                    Naval Hospital,           $7,100,000
                                     Great Lakes,
                                     Illinois...........
                                    Naval Station, San        $1,350,000
                                     Diego, California..
                                    Naval Submarine           $5,700,000
                                     Base, Bangor,
                                     Washington.........
                                    Travis Air Force          $1,700,000
                                     Base, California...
Defense Education Activity........  Marine Corps Base,       $16,900,000
                                     Camp LeJeune, North
                                     Carolina...........
                                    United States             $2,840,000
                                     Military Academy,
                                     West Point, New
                                     York...............
National Security Agency..........  Fort Meade, Maryland        $668,000
Special Operations Command........  Eglin Auxiliary           $7,310,000
                                     Field 3, Florida...
                                    Elgin Auxiliary           $2,400,000
                                     Field 9, Florida...
                                    Fort Campbell,           $15,000,000
                                     Kentucky.
                                    MacDill Air Force         $8,400,000
                                     Base, Florida......

[[Page H8175]]

 
                                    Naval Amphibious          $3,600,000
                                     Base, Coronado,
                                     California.........
                                    Stennis Space             $5,500,000
                                     Center, Mississippi
                                                         ---------------
                                        Total...........    $690,016,000
------------------------------------------------------------------------

       (b) Outside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2404(a)(2), the Secretary of Defense may acquire real 
     property and carry out military construction projects for the 
     installations and locations outside the United States, and in 
     the amounts, set forth in the following table:
       

               Defense Agencies: Outside the United States
------------------------------------------------------------------------
                                       Installation or
              Agency                      location            Amount
------------------------------------------------------------------------
Defense Logistics Agency..........  Lajes Field, Azores,      $7,700,000
                                     Portugal...........
Defense Medical Facilities Office.  Naval Air Station,        $5,300,000
                                     Sigonella, Italy...
                                    Royal Air Force,         $10,800,000
                                     Lakenheath, United
                                     Kingdom............
Defense Education Activity........  Fort Buchanan,            $8,805,000
                                     Puerto Rico........
                                    Naval Activities,        $13,100,000
                                     Guam.
Special Operations Command........  Naval Station,            $9,600,000
                                     Roosevelt Roads,
                                     Puerto Rico........
                                                         ---------------
                                        Total...........     $55,305,000
------------------------------------------------------------------------

     SEC. 2402. 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 2404(a)(11)(A), the Secretary of 
     Defense may improve existing military family housing units in 
     an amount not to exceed $345,000.

     SEC. 2403. ENERGY CONSERVATION PROJECTS.

       Using amounts appropriated pursuant to the authorization of 
     appropriations in section 2404(a)(9), the Secretary of 
     Defense may carry out energy conservation projects under 
     section 2865 of title 10, United States Code.

     SEC. 2404. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

       (a) In General.--Funds are hereby authorized to be 
     appropriated for fiscal years beginning after September 30, 
     1998, 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 $2,223,260,000 as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2401(a), $369,966,000.
       (2) For military construction projects outside the United 
     States authorized by section 2401(a), $55,305,000.
       (3) For construction of the Ammunition Demilitarization 
     Facility, Pine Bluff Arsenal, Arkansas authorized by 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), section 2408 of 
     the Military Construction Authorization Act for Fiscal 
     Year 1998 (division B of Public Law 105-85; 111 Stat. 
     1982), and section 2406 of this Act, $16,500,000.
       (4) For construction of the Ammunition Demilitarization 
     Facility, Umatilla Army Depot, Oregon, authorized by section 
     2401 of the Military Construction Authorization Act for 
     Fiscal Year 1995, as amended by section 2407 of the Military 
     Construction Authorization Act for Fiscal Year 1996, section 
     2408 of the Military Construction Authorization Act for 
     Fiscal Year 1998, and section 2406 of this Act, $50,950,000.
       (5) For military construction projects at Portsmouth Naval 
     Hospital, Virginia, hospital replacement, authorized by 
     section 2401(a) of the Military Construction Authorization 
     Act for Fiscal Years 1990 and 1991 (division B of Public Law 
     101-189; 106 Stat. 1640), as amended by section 2407 of this 
     Act, $17,954,000.
       (6) For unspecified minor construction projects under 
     section 2805 of title 10, United States Code, $13,394,000.
       (7) For contingency construction projects of the Secretary 
     of Defense under section 2804 of title 10, United States 
     Code, $4,890,000.
       (8) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $41,005,000.
       (9) For energy conservation projects authorized by section 
     2403, $46,950,000.
       (10) 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), $1,630,902,000.
       (11) For military family housing functions:
       (A) For improvement of military family housing and 
     facilities, $345,000.
       (B) For support of military housing (including functions 
     described in section 2833 of title 10, United States Code), 
     $36,899,000 of which not more than $31,139,000 may be 
     obligated or expended for the leasing of military family 
     housing units worldwide.
       (C) For credit to the Department of Defense Family Housing 
     Improvement Fund established by section 2883(a)(1) of title 
     10, United States Code, $2,000,000.
       (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 variation 
     authorized by law, the total cost of all projects carried out 
     under section 2401 of this Act may not exceed--
       (1) the total amount authorized to be appropriated under 
     paragraphs (1) and (2) of subsection (a);
       (2) $162,050,000 (the balance of the amount authorized 
     under section 2401(a) for the construction of the Ammunition 
     Demilitarization Facility at Newport Army Depot, Indiana); 
     and
       (3) $158,000,000 (the balance of the amount authorized 
     under section 2401(a) for the construction of the Ammunition 
     Demilitarization Facility at Aberdeen Proving Ground, 
     Maryland).
       (c) Adjustment.--The total amount authorized to be 
     appropriated pursuant to paragraphs (1) through (11) of 
     subsection (a) is the sum of the amounts authorized to be 
     appropriated in such paragraphs, reduced by $63,800,000 (of 
     which $50,500,000 represents savings from military 
     construction for chemical demilitarization), which represents 
     the combination of project savings in military construction 
     resulting from favorable bids, reduced overhead costs, and 
     cancellations due to force structure changes.

     SEC. 2405. REPEAL OF FISCAL YEAR 1997 AUTHORIZATION OF 
                   APPROPRIATIONS FOR CERTAIN MILITARY HOUSING 
                   IMPROVEMENT PROGRAM.

       (a) Authorization of Appropriations.--Section 2406(a) of 
     the Military Construction Authorization Act for Fiscal Year 
     1997 (division B of Public Law 104-201; 110 Stat. 2778) is 
     amended--
       (1) by striking out ``$3,379,703,000'' and inserting in 
     lieu thereof ``$3,374,703,000''; and
       (2) in paragraph (14), by striking out subparagraph (D).
       (b) Credit and Use of Funds.--Section 2404 of that Act (110 
     Stat. 2777) is amended--
       (1) in subsection (a)--
       (A) by striking out ``(1)'' before ``Of''; and
       (B) by striking out paragraph (2); and
       (2) in subsection (b)--
       (A) by striking out ``(1)'' before ``The'';
       (B) by striking out ``subsection (a)(1)'' and inserting in 
     lieu thereof ``subsection (a)''; and
       (C) by striking out paragraph (2).

     SEC. 2406. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN 
                   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) and 
     section 2408 of the Military Construction Authorization Act 
     for Fiscal Year 1998 (division B of Public Law 105-85; 111 
     Stat. 1982), 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 $134,000,000'' in the amount column and 
     inserting in lieu thereof ``$154,400,000''; and
       (2) in the item relating to Umatilla Army Depot, Oregon, by 
     striking out ``$187,000,000'' in the amount column and 
     inserting in lieu thereof ``$193,377,000''.

     SEC. 2407. MODIFICATION OF AUTHORITY TO CARRY OUT FISCAL YEAR 
                   1990 PROJECT.

       (a) Increase.--The table in section 2401(a) of the Military 
     Construction Authorization Act for Fiscal Years 1990 and 1991 
     (division B of Public Law 100-189; 103 Stat. 1640) is amended 
     in the item relating to Portsmouth Naval Hospital, Virginia, 
     by striking out ``$330,000,000'' and inserting in lieu 
     thereof ``$351,354,000''.
       (b) Conforming Amendment.--Section 2405(b)(2) of that Act 
     (103 Stat. 1642) is amended by striking out ``$321,500,000'' 
     and inserting in lieu thereof ``$342,854,000''.

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                PROGRAM

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

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

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

     SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.

       Funds are hereby authorized to be appropriated for fiscal 
     years beginning after September 30, 1998, 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 $154,000,000.

            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

Sec. 2601. Authorized Guard and Reserve construction and land 
              acquisition projects.
Sec. 2602. Modification of authority to carry out fiscal year 1998 
              project.

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

       (a) Authorization of Appropriations.--There are authorized 
     to be appropriated for fiscal years beginning after September 
     30, 1998, for

[[Page H8176]]

     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, 
     $142,403,000; and
       (B) for the Army Reserve, $102,119,000.
       (2) For the Department of the Navy, for the Naval and 
     Marine Corps Reserve, $31,621,000.
       (3) For the Department of the Air Force--
       (A) for the Air National Guard of the United States, 
     $169,801,000; and
       (B) for the Air Force Reserve, $34,371,000.
       (b) Adjustment.--(1) The amount authorized to be 
     appropriated pursuant to subsection (a)(1)(A) is reduced by 
     $2,000,000, which represents the combination of project 
     savings in military construction resulting from favorable 
     bids, reduced overhead costs, and cancellations due to force 
     structure changes.
       (2) The amount authorized to be appropriated pursuant to 
     subsection (a)(3)(A) is reduced by $4,000,000, which 
     represents the combination of project savings in military 
     construction resulting from favorable bids, reduced overhead 
     costs, and cancellations due to force structure changes.

     SEC. 2602. MODIFICATION OF AUTHORITY TO CARRY OUT FISCAL YEAR 
                   1998 PROJECT.

       Section 2603 of the Military Construction Authorization Act 
     for Fiscal Year 1998 (division B of Public Law 105-85; 111 
     Stat. 1983) is amended to read as follows:

     ``SEC. 2603. ARMY RESERVE CONSTRUCTION PROJECT, SALT LAKE 
                   CITY, UTAH.

       ``With regard to the military construction project for the 
     Army Reserve concerning construction of a reserve center and 
     organizational maintenance shop at an appropriate site in, or 
     in the vicinity of, Salt Lake City, Utah, to be carried out 
     using funds appropriated pursuant to the authorization of 
     appropriations in section 2601(a)(1)(B), the Secretary of the 
     Army shall enter into an agreement with the State of Utah 
     under which the State agrees to provide financial or in-kind 
     contributions in connection with the project.''.

        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 1996 
              projects.
Sec. 2703. Extension of authorization of fiscal year 1995 project.
Sec. 2704. Effective date.

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

       (a) Expiration of Authorizations After Three Years.--Except 
     as provided in subsection (b), all authorizations contained 
     in titles XXI through XXVI for military construction 
     projects, land acquisition, family housing projects and 
     facilities, and contributions to the North Atlantic Treaty 
     Organization Security Investment program (and authorizations 
     of appropriations therefor) shall expire on the later of--
       (1) October 1, 2001; or
       (2) the date of enactment of an Act authorizing funds for 
     military construction for fiscal year 2002.
       (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, 2001; or
       (2) the date of enactment of an Act authorizing funds for 
     fiscal year 2002 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 
                   1996 PROJECTS.

       (a) Extensions.--Notwithstanding section 2701 of the 
     Military Construction Authorization Act for Fiscal Year 1996 
     (division B of Public Law 104-106; 110 Stat. 541), 
     authorizations for the projects set forth in the tables in 
     subsection (b), as provided in section 2201, 2202, 2302, 
     or 2601 of that Act, shall remain in effect until October 
     1, 1999, or the date of enactment of an Act authorizing 
     funds for military construction for fiscal year 2000, 
     whichever is later.
       (b) Tables.--The tables referred to in subsection (a) are 
     as follows:
       

                                 Navy: Extension of 1996 Project Authorizations
----------------------------------------------------------------------------------------------------------------
                  State                      Installation or location            Project              Amount
----------------------------------------------------------------------------------------------------------------
Puerto Rico..............................  Naval Station Roosevelt       Housing Office.........        $710,000
                                            Roads......................
California...............................  Camp Pendleton..............  Family Housing              $20,000,000
                                                                          Construction (138
                                                                          units)................
----------------------------------------------------------------------------------------------------------------


                               Air Force: Extension of 1996 Project Authorization
----------------------------------------------------------------------------------------------------------------
                  State                      Installation or location            Project              Amount
----------------------------------------------------------------------------------------------------------------
Texas....................................  Lackland Air Force Base.....  Family Housing (67           $6,200,000
                                                                          units)................
----------------------------------------------------------------------------------------------------------------


                          Army National Guard: Extension of 1996 Project Authorizations
----------------------------------------------------------------------------------------------------------------
                  State                      Installation or location            Project              Amount
----------------------------------------------------------------------------------------------------------------
Mississippi..............................  Camp Shelby.................  Multipurpose Range           $5,000,000
                                                                          Complex (Phase I).....
Missouri.................................  National Guard Training       Multipurpose Range.....      $2,236,000
                                            Site, Jefferson City.......
----------------------------------------------------------------------------------------------------------------

     SEC. 2703. EXTENSION OF AUTHORIZATION OF FISCAL YEAR 1995 
                   PROJECT.

       (a) Extension.--Notwithstanding section 2701 of the 
     Military Construction Authorization Act for Fiscal Year 1995 
     (division B of Public Law 103-337; 108 Stat. 3046), the 
     authorization for the project set forth in the table in 
     subsection (b), as provided in section 2201 of that Act and 
     extended by section 2702 of the Military Construction 
     Authorization Act for Fiscal Year 1998 (division B of Public 
     Law 105-85; 111 Stat. 1985), shall remain in effect until 
     October 1, 1999, or the date of enactment of an Act 
     authorizing funds for military construction for fiscal year 
     2000, whichever is later.
       (b) Table.--The table referred to in subsection (a) is as 
     follows:
       

                                  Navy: Extension of 1995 Project Authorization
----------------------------------------------------------------------------------------------------------------
                  State                      Installation or location            Project              Amount
----------------------------------------------------------------------------------------------------------------
Maryland.................................  Indian Head Naval Surface     Denitrification/Acid         $6,400,000
                                            Warfare Center.............   Mixing Facility.......
----------------------------------------------------------------------------------------------------------------

     SEC. 2704. EFFECTIVE DATE.

       Titles XXI, XXII, XXIII, XXIV, XXV, and XXVI shall take 
     effect on the later of--
       (1) October 1, 1998; 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. Architectural and engineering services and construction 
              design.
Sec. 2802. Expansion of Army overseas family housing lease authority.
Sec. 2803. Definition of ancillary supporting facilities under 
              alternative authority for acquisition and improvement of 
              military housing.
Sec. 2804. Purchase of build-to-lease family housing at Eielson Air 
              Force Base, Alaska.
Sec. 2805. Report relating to improvement of housing for unaccompanied 
              members.

        Subtitle B--Real Property and Facilities Administration

Sec. 2811. Exceptions to real property transaction reporting 
              requirements for war and certain emergency and other 
              operations.
Sec. 2812. Restoration of Department of Defense lands used by another 
              Federal agency.
Sec. 2813. Outdoor recreation development on military installations for 
              disabled veterans, military dependents with disabilities, 
              and other persons with disabilities.
Sec. 2814. Report on leasing and other alternative uses of non-excess 
              military property.
Sec. 2815. Report on implementation of utility system conveyance 
              authority.

            Subtitle C--Defense Base Closure and Realignment

Sec. 2821. Applicability of property disposal laws to leases at 
              installations to be closed or realigned under base 
              closure laws.
Sec. 2822. Elimination of waiver authority regarding prohibition 
              against certain conveyances of property at Naval Station, 
              Long Beach, California.
Sec. 2823. Payment of stipulated penalties assessed under CERCLA in 
              connection with McClellan Air Force Base, California.

                      Subtitle D--Land Conveyances

                        Part I--Army Conveyances

Sec. 2831. Modification of land conveyance, Army Reserve Center, 
              Youngstown, Ohio.
Sec. 2832. Release of interests in real property, former Kennebec 
              Arsenal, Augusta, Maine.
Sec. 2833. Release, waiver, or conveyance of interests in real 
              property, former Redstone Army Arsenal property, Alabama.

[[Page H8177]]

Sec. 2834. Conveyance of utility systems, Lone Star Army Ammunition 
              Plant, Texas.
Sec. 2835. Conveyance of water rights and related interests, Rocky 
              Mountain Arsenal, Colorado, for purposes of acquisition 
              of perpetual contracts for water.
Sec. 2836. Land conveyance, Army Reserve Center, Massena, New York.
Sec. 2837. Land conveyance, Army Reserve Center, Ogdensburg, New York.
Sec. 2838. Land conveyance, Army Reserve Center, Jamestown, Ohio.
Sec. 2839. Land conveyance, Army Reserve Center, Peoria, Illinois.
Sec. 2840. Land conveyance, Army Reserve Center, Bridgton, Maine.
Sec. 2841. Land conveyance, Fort Sheridan, Illinois.
Sec. 2842. Land conveyance, Skaneateles, New York.
Sec. 2843. Land conveyance, Indiana Army Ammunition Plant, Charlestown, 
              Indiana.
Sec. 2844. Land conveyance, Volunteer Army Ammunition Plant, 
              Chattanooga, Tennessee.
Sec. 2845. Land conveyance, Stewart Amy Sub-Post, New Windsor, New 
              York.

                       Part II--Navy Conveyances

Sec. 2851. Conveyance of easement, Marine Corps Base, Camp Pendleton, 
              California.
Sec. 2852. Land exchange, Naval Reserve Readiness Center, Portland, 
              Maine.
Sec. 2853. Land conveyance, Naval and Marine Corps Reserve facility, 
              Youngstown, Ohio.
Sec. 2854. Land conveyance, Naval Air Reserve Center, Minneapolis, 
              Minnesota.

                    Part III--Air Force Conveyances

Sec. 2861. Modification of land conveyance, Eglin Air Force Base, 
              Florida.
Sec. 2862. Modification of land conveyance, Finley Air Force Station, 
              North Dakota.
Sec. 2863. Land conveyance, Lake Charles Air Force Station, Louisiana.
Sec. 2864. Land conveyance, Air Force Housing Facility, La Junta, 
              Colorado.

                       Subtitle E--Other Matters

Sec. 2871. Modification of authority relating to Department of Defense 
              Laboratory Revitalization Demonstration Program.
Sec. 2872. Repeal of prohibition on joint use of Gray Army Airfield, 
              Fort Hood, Texas, with civil aviation.
Sec. 2873. Modification of demonstration project for purchase of fire, 
              security, police, public works, and utility services from 
              local government agencies.
Sec. 2874. Designation of building containing Navy and Marine Corps 
              Reserve Center, Augusta, Georgia.

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

     SEC. 2801. ARCHITECTURAL AND ENGINEERING SERVICES AND 
                   CONSTRUCTION DESIGN.

       (a) Increase in Threshold for Notice to Congress.--
     Subsection (b) of section 2807 of title 10, United States 
     Code, is amended by striking out ``$300,000'' and inserting 
     in lieu thereof ``$500,000''.
       (b) Availability of Appropriations.--Subsection (d) of that 
     section is amended by striking out ``study, planning, design, 
     architectural, and engineering services'' and inserting in 
     lieu thereof ``architectural and engineering services and 
     construction design''.

     SEC. 2802. EXPANSION OF ARMY OVERSEAS FAMILY HOUSING LEASE 
                   AUTHORITY.

       (a) Alternative Maximum Unit Amounts.--Section 2828(e) of 
     title 10, United States Code, is amended--
       (1) in paragraph (2), by inserting, ``, and the Secretary 
     of the Army may lease not more than 500 units of family 
     housing in Italy,'' after ``family housing in Italy'';
       (2) by redesignating paragraphs (3) and (4) as paragraphs 
     (4) and (5), respectively; and
       (3) by inserting after paragraph (2) the following new 
     paragraph (3):
       ``(3) In addition to the 450 units of family housing 
     referred to in paragraph (1) for which the maximum lease 
     amount is $25,000 per unit per year, the Secretary of the 
     Army may lease not more than 800 units of family housing in 
     Korea subject to that maximum lease amount.''.
       (b) Conforming Amendment.--Paragraph (4) of that section, 
     as redesignated by subsection (a)(2) of this section, is 
     amended by striking out ``and (2)'' and inserting in lieu 
     thereof ``, (2), and (3)''.

     SEC. 2803. DEFINITION OF ANCILLARY SUPPORTING FACILITIES 
                   UNDER ALTERNATIVE AUTHORITY FOR ACQUISITION AND 
                   IMPROVEMENT OF MILITARY HOUSING.

       Section 2871(1) of title 10, United States Code, is amended 
     by inserting after ``including'' the following: ``facilities 
     to provide or support elementary or secondary education,''.

     SEC. 2804. PURCHASE OF BUILD-TO-LEASE FAMILY HOUSING AT 
                   EIELSON AIR FORCE BASE, ALASKA.

       (a) Authority To Purchase.--The Secretary of the Air Force 
     may purchase the entire interest of the developer in the 
     military family housing project at Eielson Air Force Base, 
     Alaska, described in subsection (b) if the Secretary 
     determines that the purchase is in the best economic 
     interests of the Air Force.
       (b) Description of Project.--The military family housing 
     project referred to in this section is the 366-unit military 
     family housing project at Eielson Air Force Base that was 
     constructed by the developer and is being leased by the 
     Secretary under the authority of former subsection (g) of 
     section 2828 of title 10, United States Code (now section 
     2835 of such title), as added by section 801 of the Military 
     Construction Authorization Act, 1984 (Public Law 98-115; 97 
     Stat. 782).
       (c) Purchase Price.--The purchase price to be paid by the 
     Secretary under this section for the interest of the 
     developer in the military family housing project may not 
     exceed an amount equal to the amount of the outstanding 
     indebtedness of the developer to the lender for the project 
     that would have remained at the time of the purchase under 
     this section if the developer had paid down its indebtedness 
     to the lender for the project in accordance with the original 
     debt instruments for the project.
       (d) Time for Purchase.--(1) Subject to paragraph (2), the 
     Secretary may elect to make the purchase authorized by 
     subsection (a) at any time during or after the term of the 
     lease for the military family housing project.
       (2) The Secretary may not make the purchase until 30 days 
     after the date on which the Secretary notifies the 
     congressional defense committees of the Secretary's election 
     to make the purchase under paragraph (1).

     SEC. 2805. REPORT RELATING TO IMPROVEMENT OF HOUSING FOR 
                   UNACCOMPANIED MEMBERS.

       (a) Report Required.--(1) Not later than April 1, 1999, the 
     Secretary of Defense shall submit to Congress a report on--
       (A) the plans of each of the military departments to 
     improve the condition, suitability, and availability of 
     housing for members of the Armed Forces who are unaccompanied 
     by dependents; and
       (B) the costs associated with the implementation of the 
     plans.
       (2) The Secretary of Defense shall prepare the report in 
     consultation with the Secretaries of the military 
     departments.
       (b) Elements.--The report under subsection (a) shall 
     include the following:
       (1) The plans and programs of each of the military 
     departments to improve housing on military installations for 
     unaccompanied members of the Armed Forces, including an 
     assessment of the requirement, a schedule to implement such 
     plans and programs, and an explanation of the standards used 
     to determine the adequacy, suitability, and availability of 
     housing outside of military installations.
       (2) A justification for the initiative to build single 
     occupancy rooms with a shared bath (commonly known as the ``1 
     Plus 1 Initiative''), including--
       (A) a description of the manner in which the initiative is 
     designed to enhance the quality of life for enlisted members 
     and the retention of such members in adequate numbers; and
       (B) an assessment of the analysis and data used in the 
     justification to implement the initiative.
       (3) The cost for each military department of implementing 
     the initiative, including the amount of funds, by fiscal 
     year, authorized and appropriated for military construction 
     and real property maintenance obligated or expended on the 
     improvement of military housing for unaccompanied members 
     beginning on October 1, 1996, and the amount of funds 
     required to be expended to ensure the suitability of such 
     housing for unaccompanied members.
       (4) An explanation of the difference in cost between--
       (A) upgrading existing military housing to the standard 
     proposed in the initiative; and
       (B) rehabilitating such housing within existing standards.
       (5) An assessment of the viability and utility of the 
     authorities provided by subchapter IV of chapter 169 of title 
     10, United States Code, to contribute to the improvement of 
     the condition, suitability, and availability of housing for 
     unaccompanied members, especially members in junior grades.
       (6) The views of 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 Commandant of the Coast 
     Guard, and each of the senior enlisted members of the Armed 
     Forces regarding the initiative referred to in paragraph (2) 
     and regarding any alternatives to the initiative having the 
     potential of enhancing the quality of life for unaccompanied 
     members, improving the readiness of the Armed Forces, and 
     improving the retention of enlisted members in adequate 
     numbers.

        Subtitle B--Real Property and Facilities Administration

     SEC. 2811. EXCEPTIONS TO REAL PROPERTY TRANSACTION REPORTING 
                   REQUIREMENTS FOR WAR AND CERTAIN EMERGENCY AND 
                   OTHER OPERATIONS.

       (a) Exceptions.--Section 2662 of title 10, United States 
     Code, is amended by adding at the end the following new 
     subsection:
       ``(g) Exceptions for Transactions for War and Certain 
     Emergency and Other Operations.--(1) The reporting 
     requirement set forth in subsection (a) shall not apply with 
     respect to a real property transaction otherwise covered by 
     that subsection, and the reporting requirement set forth in 
     subsection (e) shall not apply with respect to a real 
     property transaction otherwise covered by that subsection, if 
     the Secretary concerned determines that the transaction is 
     made as a result of any of the following:
       ``(A) A declaration of war.
       ``(B) A declaration of a national emergency by the 
     President pursuant to the National Emergencies Act (50 U.S.C. 
     1601 et seq.).
       ``(C) A declaration of an emergency or major disaster 
     pursuant to the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act (42 U.S.C. 5121 et seq.).
       ``(D) The use of the militia or the armed forces after a 
     proclamation to disperse under section 334 of this title.
       ``(E) A contingency operation.
       ``(2) The reporting requirement set forth in subsection (a) 
     shall not apply with respect to a

[[Page H8178]]

     real property transaction otherwise covered by that 
     subsection if the Secretary concerned determines that--
       ``(A) an event listed in paragraph (1) is imminent; and
       ``(B) the transaction is necessary for purposes of 
     preparation for such event.
       ``(3) Not later than 30 days after entering into a real 
     property transaction covered by paragraph (1) or (2), the 
     Secretary concerned shall submit to the committees named in 
     subsection (a) a report on the transaction. The report shall 
     set forth any facts or information which would otherwise have 
     been submitted in a report on the transaction under 
     subsection (a) or (e), as the case may be, but for the 
     operation of paragraph (1) or (2).''.
       (b) Stylistic Amendments.--That section is further 
     amended--
       (1) in subsection (a), by inserting ``General Notice and 
     Wait Requirements.--'' after ``(a)'';
       (2) in subsection (b), by inserting ``Annual Reports on 
     Certain Minor Transactions.--'' after ``(b)'';
       (3) in subsection (c), by inserting ``Geographic Scope; 
     Excepted Projects.--'' after ``(c)'';
       (4) in subsection (d), by inserting ``Statements of 
     Compliance in Transaction Instruments.--'' after ``(d)'';
       (5) in subsection (e), by inserting ``Notice and Wait 
     Regarding Leases of Space for DoD by GSA.--'' after ``(e)''; 
     and
       (6) in subsection (f), by inserting ``Reports on 
     Transactions Involving Intelligence Components.--'' after 
     ``(f)''.

     SEC. 2812. RESTORATION OF DEPARTMENT OF DEFENSE LANDS USED BY 
                   ANOTHER FEDERAL AGENCY.

       (a) Restoration as Term of Agreement.--Section 2691 of 
     title 10, United States Code, is amended by adding at the end 
     the following new subsection:
       ``(c)(1) As a condition of any lease, permit, license, or 
     other grant of access entered into by the Secretary of a 
     military department with another Federal agency authorizing 
     the agency to use lands under the control of the Secretary, 
     the Secretary may require the agency to agree to remove any 
     improvements and to take any other action necessary in the 
     judgment of the Secretary to restore the land used by the 
     agency to its condition before its use by the agency.
       ``(2) In lieu of performing any removal or restoration work 
     under paragraph (1), a Federal agency may elect, with the 
     consent of the Secretary, to reimburse the Secretary for the 
     costs incurred by the military department in performing such 
     removal or restoration work.''.
       (b) Clerical Amendments.--(1) The heading of such section 
     is amended to read as follows:

     ``Sec. 2691. Restoration of land used by permit or lease''.

       (2) The table of sections at the beginning of chapter 159 
     of title 10, United States Code, is amended by striking the 
     item relating to section 2691 and inserting in lieu thereof 
     the following new item:
``2691. Restoration of land used by permit or lease.''.

     SEC. 2813. OUTDOOR RECREATION DEVELOPMENT ON MILITARY 
                   INSTALLATIONS FOR DISABLED VETERANS, MILITARY 
                   DEPENDENTS WITH DISABILITIES, AND OTHER PERSONS 
                   WITH DISABILITIES.

       (a) Access Enhancement.--Section 103 of the Sikes Act (16 
     U.S.C. 670c) is amended by adding at the end the following 
     new subsections:
       ``(b) Access for Disabled Veterans, Military Dependents 
     With Disabilities, and Other Persons With Disabilities.--(1) 
     In developing facilities and conducting programs for 
     public outdoor recreation at military installations, 
     consistent with the primary military mission of the 
     installations, the Secretary of Defense shall ensure, to 
     the extent reasonably practicable, that outdoor recreation 
     opportunities (including fishing, hunting, trapping, 
     wildlife viewing, boating, and camping) made available to 
     the public also provide access for persons described in 
     paragraph (2) when topographic, vegetative, and water 
     resources allow access for such persons without 
     substantial modification to the natural environment.
       ``(2) Persons referred to in paragraph (1) are the 
     following:
       ``(A) Disabled veterans.
       ``(B) Military dependents with disabilities.
       ``(C) Other persons with disabilities, when access to a 
     military installation for such persons and other civilians is 
     not otherwise restricted.
       ``(3) The Secretary of Defense shall carry out this 
     subsection in consultation with the Secretary of Veterans 
     Affairs, national service, military, and veterans 
     organizations, and sporting organizations in the private 
     sector that participate in outdoor recreation projects for 
     persons described in paragraph (2).
       ``(c) Acceptance of Donations.--In connection with the 
     facilities and programs for public outdoor recreation at 
     military installations, in particular the requirement under 
     subsection (b) to provide access for persons described in 
     paragraph (2) of such subsection, the Secretary of Defense 
     may accept--
       ``(1) the voluntary services of individuals and 
     organizations; and
       ``(2) donations of property, whether real or personal.
       ``(d) Treatment of Volunteers.--A volunteer under 
     subsection (c) shall not be considered to be a Federal 
     employee and shall not be subject to the provisions of law 
     relating to Federal employment, including those relating to 
     hours of work, rates of compensation, leave, unemployment 
     compensation, and Federal employee benefits, except that--
       ``(1) for the purposes of the tort claims provisions of 
     chapter 171 of title 28, United States Code, the volunteer 
     shall be considered to be a Federal employee; and
       ``(2) for the purposes of subchapter I of chapter 81 of 
     title 5, United States Code, relating to compensation to 
     Federal employees for work injuries, the volunteer shall be 
     considered to be an employee, as defined in section 
     8101(1)(B) of title 5, United States Code, and the provisions 
     of such subchapter shall apply.''.
       (b) Conforming Amendment.--Such section is further amended 
     by striking out ``Sec. 103.'' and inserting in lieu thereof 
     the following:

     ``SEC. 103. PROGRAM FOR PUBLIC OUTDOOR RECREATION.

       ``(a) Program Authorized.--''.

     SEC. 2814. REPORT ON LEASING AND OTHER ALTERNATIVE USES OF 
                   NON-EXCESS MILITARY PROPERTY.

       (a) Report Required.--Not later than March 15, 1999, the 
     Secretary of Defense shall submit to the Committee on Armed 
     Services of the Senate and the Committee on National Security 
     of the House of Representatives a report regarding the 
     authority of the military departments and Defense Agencies to 
     lease to the private sector non-excess real and personal 
     property. The Secretary shall prepare the report in 
     consultation with the Secretaries of the military departments 
     and the Director of the Office of Management and Budget.
       (b) Required Elements of Report.--The report shall set 
     forth the following:
       (1) The number and purpose of all leases entered into under 
     sections 2667 and 2667a of title 10, United States Code, 
     other than leases under section 2667(f) of that title, during 
     the five-year period ending on the date of the enactment of 
     this Act.
       (2) The types and amounts of payments received under the 
     leases specified in paragraph (1) and the costs, if any, 
     foregone as a result of the leases.
       (3) An assessment of the positive and negative aspects of 
     leasing real property and surplus capacity at military 
     installations to the private sector, including the potential 
     effect of the use of the leases on force protection and the 
     military functions of the installations.
       (4) An assessment of the current efforts of the Department 
     of Defense to identify for the private sector any surplus 
     capacity at military installations that could be leased or 
     otherwise used by the private sector.
       (5) An assessment of the proposal of the Secretary of the 
     Air Force to reduce infrastructure costs at Brooks Air Force 
     Base, Texas, using the authority provided in section 2667 of 
     title 10, United States Code, and the proposal of the 
     Secretary of the Navy regarding the potential for development 
     of Ford Island as part of Naval Complex, Pearl Harbor, 
     Hawaii.
       (6) An assessment (including an economic analysis) of the 
     ability of the military departments and Defense Agencies to 
     reduce the quantity of real property leased by them through 
     the relocation of activities located in such leased space to 
     property of a military installation, or another Federal 
     agency, that is unutilized or underutilized, while also 
     lowering operational and maintenance costs and minimizing the 
     need for new construction.
       (c) Additional Elements of Report.--In the event that the 
     Secretary of Defense considers the authority under section 
     2667 or 2667a of title 10, United States Code, to be 
     insufficient, the Secretary shall also include in the 
     report--
       (1) a proposal for authority to conduct a pilot project 
     based on the assessment made under subsection (b)(5) or for 
     such general legislative authority as the Secretary considers 
     appropriate to enhance the ability of the Department of 
     Defense to utilize surplus capacity at military installations 
     in order to improve military readiness, achieve cost savings 
     with respect to such installations, or decrease the cost of 
     operating such installations;
       (2) an estimate of the income that could accrue to the 
     Department of Defense as a result of the implementation of 
     enhanced authority proposed under paragraph (1) during the 
     five-year period beginning on the date of such 
     implementation; and
       (3) an assessment of the extent to which any such income 
     should be reserved for the use of the installations 
     exercising such authority and of the extent to which 
     installations would be likely to enter into such leases if 
     they cannot retain such income.

     SEC. 2815. REPORT ON IMPLEMENTATION OF UTILITY SYSTEM 
                   CONVEYANCE AUTHORITY.

       Not later than March 1, 1999, the Secretary of Defense, in 
     consultation with the Secretaries of the military 
     departments, shall submit to Congress a report containing--
       (1) the criteria to be used by the Secretary of a military 
     department to select utility systems, and related 
     improvements, easements, and rights-of-way, under the 
     jurisdiction of the Secretary, for conveyance to a municipal, 
     private, regional, district, or cooperative utility company 
     or other entity under the authority of section 2688 of title 
     10, United States Code;
       (2) an assessment of the need to include, as part of the 
     conveyance authority under such section, authority for the 
     Secretary to convey real property associated with a utility 
     system conveyed under such section; and
       (3) a description of the manner in which the Secretary will 
     ensure that any conveyance under such section does not 
     adversely affect the national security of the United States.

            Subtitle C--Defense Base Closure and Realignment

     SEC. 2821. APPLICABILITY OF PROPERTY DISPOSAL LAWS TO LEASES 
                   AT INSTALLATIONS TO BE CLOSED OR REALIGNED 
                   UNDER BASE CLOSURE LAWS.

       Section 2667(f)(1) of title 10, United States Code, is 
     amended by inserting after ``subsection (a)(3)'' the 
     following: ``or the Federal Property and Administrative 
     Services Act of 1949 (to the

[[Page H8179]]

     extent such Act is inconsistent with this subsection)''.

     SEC. 2822. ELIMINATION OF WAIVER AUTHORITY REGARDING 
                   PROHIBITION AGAINST CERTAIN CONVEYANCES OF 
                   PROPERTY AT NAVAL STATION, LONG BEACH, 
                   CALIFORNIA.

       Section 2826 of the Military Construction Authorization Act 
     for Fiscal Year 1998 (division B of Public Law 105-85; 111 
     Stat. 2001) is amended by striking out subsection (e).

     SEC. 2823. PAYMENT OF STIPULATED PENALTIES ASSESSED UNDER 
                   CERCLA IN CONNECTION WITH MCCLELLAN AIR FORCE 
                   BASE, CALIFORNIA.

       (a) Source of Payment.--Notwithstanding subsection (b) of 
     section 2906 of the Defense Base Closure and Realignment Act 
     of 1990 (part A of title XXIX of Public Law 101-510; 10 
     U.S.C. 2687 note), the Secretary of Defense may use amounts 
     in the Department of Defense Base Closure Account 1990 
     established under subsection (a) of such section to pay 
     stipulated penalties assessed under the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9601 et seq.) against McClellan Air Force 
     Base, California.
       (b) Amount of Payment.--The amount expended under the 
     authority of subsection (a) may not exceed $15,000.

                      Subtitle D--Land Conveyances

                        PART I--ARMY CONVEYANCES

     SEC. 2831. MODIFICATION OF LAND CONVEYANCE, ARMY RESERVE 
                   CENTER, YOUNGSTOWN, OHIO.

       Section 2861(b) of the Military Construction Authorization 
     Act for Fiscal Year 1996 (division B of Public Law 104-106; 
     110 Stat. 573) is amended by striking out ``retain'' and all 
     that follows through the period at the end and inserting in 
     lieu thereof ``develop the parcel for educational 
     purposes.''.

     SEC. 2832. RELEASE OF INTERESTS IN REAL PROPERTY, FORMER 
                   KENNEBEC ARSENAL, AUGUSTA, MAINE.

       (a) Authority To Release.--The Secretary of the Army may 
     release, without consideration, all right, title, and 
     interest of the United States in and to the real property 
     described in subsection (b).
       (b) Covered Property.--The real property referred to in 
     subsection (a) is the parcel of real property consisting of 
     approximately 40 acres located in Augusta, Maine, and 
     formerly known as the Kennebec Arsenal, which parcel was 
     conveyed by the Secretary of War to the State of Maine under 
     the provisions of the Act entitled ``An Act Authorizing the 
     Secretary of War to convey the Kennebec Arsenal property, 
     situated in Augusta, Maine, to the State of Maine for public 
     purposes'', approved March 3, 1905 (33 Stat. 1270), as 
     amended by section 771 of the Department of Defense 
     Appropriations Act, 1981 (Public Law 96-527; 94 Stat. 3093).
       (c) Instrument of Release.--The Secretary of the Army shall 
     execute and file in the appropriate office a deed of release, 
     amended deed, or other appropriate instrument effectuating 
     the release of interests authorized by this section.

     SEC. 2833. RELEASE, WAIVER, OR CONVEYANCE OF INTERESTS IN 
                   REAL PROPERTY, FORMER REDSTONE ARMY ARSENAL 
                   PROPERTY, ALABAMA.

       (a) Release Authorized.--The Secretary of the Army may 
     release, without consideration and to such extent as the 
     Secretary considers appropriate to protect the interests of 
     the United States, the reversionary interests of the United 
     States in the real property described in subsection (b), 
     which were retained by the United States when the property 
     was conveyed to the Alabama Space Science Exhibit 
     Commission, an agency of the State of Alabama. The release 
     shall be executed in the manner provided in this section.
       (b) Description of Property.--The real property referred to 
     in this section is the real property conveyed to the Alabama 
     Space Science Exhibit Commission under the authority of the 
     following provisions of law:
       (1) The first section of Public Law 90-276 (82 Stat. 68).
       (2) Section 813 of the Military Construction Authorization 
     Act, 1980 (Public Law 96-125; 93 Stat. 952).
       (3) Section 813 of the Military Construction Authorization 
     Act, 1984 (Public Law 98-115; 97 Stat. 790).
       (c) Release, Waiver, or Conveyance of Other Rights, Terms, 
     and Conditions.--As part of the release under subsection (a), 
     the Secretary may release, waive, or convey, without 
     consideration and to such extent as the Secretary considers 
     appropriate to protect the interests of the United States--
       (1) any and all other rights retained by the United States 
     in and to the real property described in subsection (b) when 
     the property was conveyed to the Alabama Space Science 
     Exhibit Commission; and
       (2) any and all terms and conditions and restrictions on 
     the use of the real property imposed as part of the 
     conveyances described in subsection (b).
       (d) Conditions on Release, Waiver, or Conveyance.--(1) The 
     Secretary may execute the release under subsection (a) or a 
     release, waiver, or conveyance under subsection (c) only 
     after--
       (A) the Secretary approves of the master plan prepared by 
     the Alabama Space Science Exhibit Commission, as such plan 
     may exist or be revised from time to time, for development of 
     the real property described in subsection (b); and
       (B) the installation commander at Redstone Arsenal, 
     Alabama, certifies to the Secretary that the release, waiver, 
     or conveyance is consistent with the master plan.
       (2) A new facility or structure may not be constructed on 
     the real property described in subsection (b) unless the 
     facility or structure is included in the master plan, which 
     has been approved and certified as provided in paragraph (1).
       (e) Instrument of Release, Waiver, or Conveyance.--In 
     making a release, waiver, or conveyance authorized by this 
     section, the Secretary shall execute and file in the 
     appropriate office or offices a deed of release, amended 
     deed, or other appropriate instrument effectuating the 
     release, waiver, or conveyance.
       (f) Effect of Release.--Except as provided in subsection 
     (g), upon release of any reversionary interest under this 
     section, the right, title and interest of the Alabama Space 
     Science Exhibit Commission in and to the real property 
     described in subsection (b) shall, to the extent of the 
     release, no longer be subject to the conditions prescribed in 
     the provisions of law specified in such subsection. Except as 
     provided in subsection (g), the Alabama Space Science Exhibit 
     Commission may use the real property for any such purpose or 
     purposes as it considers appropriate consistent with the 
     master plan approved and certified as provided in subsection 
     (d), and the real property may be conveyed by the Alabama 
     Space Science Exhibit Commission without restriction and 
     unencumbered by any claims or rights of the United States 
     with respect to the property, subject to such rights, terms, 
     and conditions of the United States previously imposed on the 
     real property and not released, waived, or conveyed by the 
     Secretary under subsection (c).
       (g) Exceptions.--(1) Conveyance of the drainage and utility 
     easement reserved to the United States pursuant to section 
     813(b)(3) of the Military Construction Authorization 
     Act, 1984 (Public Law 98-115; 97 Stat. 791), is not 
     authorized under this section.
       (2) In no event may title to any portion of the real 
     property described in subsection (b) be conveyed by the 
     Alabama Space Science Exhibit Commission or any future deed 
     holder of the real property to any person other than an 
     agency, instrumentality, political subdivision, municipal 
     corporation, or public corporation of the State of Alabama. 
     Any deed conveying title to any portion of the real property 
     described in subsection (b) shall restrict the further use of 
     the conveyed property to purposes and uses consistent with 
     the master plan approved and certified as provided in 
     subsection (d), unless otherwise approved by the Secretary.
       (3) Paragraph (2) does not prevent the Alabama Space 
     Science Exhibit Commission or any future deed holder of the 
     real property described in subsection (b) from giving a 
     mortgage with respect to any portion of the real property to 
     any person, except that any such mortgage shall provide that 
     the further use of the real property shall be restricted to 
     purposes and uses consistent with the master plan approved 
     and certified as provided in subsection (d), unless otherwise 
     approved by the Secretary.

     SEC. 2834. CONVEYANCE OF UTILITY SYSTEMS, LONE STAR ARMY 
                   AMMUNITION PLANT, TEXAS.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey all right, title, and interest of the United States in 
     and to any utility system, or part thereof, including any 
     real property associated with such system, at the Lone Star 
     Army Ammunition Plant, Texas, to the redevelopment authority 
     for the Red River Army Depot, Texas, in conjunction with the 
     disposal of property at the Depot 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).
       (b) Consideration.--As consideration for the conveyance 
     under subsection (a), the redevelopment authority shall pay 
     to the United States an amount equal to the fair market value 
     of the conveyed utility system and any real property conveyed 
     as part of the conveyance, as determined by an independent 
     appraisal satisfactory to the Secretary and paid for by the 
     redevelopment authority.
       (c) Rule of Construction.--Nothing in subsection (a) may be 
     construed to prohibit or otherwise limit the Secretary from 
     conveying any utility system referred to in that subsection 
     under any other provision of law, including section 2688 of 
     title 10, United States Code.
       (d) Utility System Defined.--In this section, the term 
     ``utility system'' has the meaning given that term in section 
     2688(g) of title 10, United States Code.

     SEC. 2835. CONVEYANCE OF WATER RIGHTS AND RELATED INTERESTS, 
                   ROCKY MOUNTAIN ARSENAL, COLORADO, FOR PURPOSES 
                   OF ACQUISITION OF PERPETUAL CONTRACTS FOR 
                   WATER.

       (a) Conveyance Authorized.--Subject to subsection (c), the 
     Secretary of the Army may convey any and all interest of the 
     United States in the water rights and related rights at Rocky 
     Mountain Arsenal, Colorado, described in subsection (b) to 
     the City and County of Denver, Colorado, acting through its 
     Board of Water Commissioners.
       (b) Covered Water Rights and Related Rights.--The water 
     rights and related rights authorized to be conveyed under 
     subsection (a) are the following:
       (1) Any and all interest in 300 acre rights to water from 
     Antero Reservoir as set forth in Antero Reservoir Contract 
     No. 382 dated August 22, 1923, for 160 acre rights; Antero 
     Reservoir Contract No. 383 dated August 22, 1923, for 50 acre 
     rights; Antero Reservoir Contract No. 384 dated October 30, 
     1923, for 40 acre rights; Antero Reservoir Contract No. 387 
     dated March 3, 1923, for 50 acre rights; and Supplemental 
     Contract No. 382-383-384-387 dated July 24, 1932, defining 
     the amount of water to be delivered under the 300 acre rights 
     in the prior contracts as 220 acre feet.
       (2) Any and all interest in the 305 acre rights of water 
     from the High Line Canal, diverted at its headgate on the 
     South Platte River and delivered to the Fitzsimons Army 
     Medical Center and currently subject to cost assessments 
     pursuant to Denver Water Department contract #001990.

[[Page H8180]]

       (3) Any and all interest in the 2,603.55 acre rights of 
     water from the High Line Canal, diverted at its headgate on 
     the South Platte River and delivered to the Rocky Mountain 
     Arsenal in Adams County, Colorado, and currently subject to 
     cost assessments by the Denver Water Department, including 
     680 acre rights transferred from Lowry Field to the Rocky 
     Mountain Arsenal by the October 5, 1943, agreement between 
     the City and County of Denver, acting by and through its 
     Board of Water Commissioners, and the United States of 
     America.
       (4) Any and all interest in 4,058.34 acre rights of water 
     not currently subject to cost assessments by the Denver Water 
     Department.
       (5) A new easement for the placement of water lines 
     approximately 50 feet wide inside the Southern boundary of 
     Rocky Mountain Arsenal and across the Reserve Center along 
     the northern side of 56th Avenue.
       (6) A permanent easement for utilities where Denver has an 
     existing temporary easement near the southern and western 
     boundaries of Rocky Mountain Arsenal.
       (c) Consideration.--(1) The Secretary of the Army may make 
     the conveyance under subsection (a) only if the Board of 
     Water Commissioners, on behalf of the City and County of 
     Denver, Colorado--
       (A) enters into a permanent contract with the Secretary of 
     the Army for purposes of ensuring the delivery of nonpotable 
     water and potable water to Rocky Mountain Arsenal; and
       (B) enters into a permanent contract with the Secretary of 
     the Interior for purposes of ensuring the delivery of 
     nonpotable water and potable water to Rocky Mountain Arsenal 
     National Wildlife Refuge, Colorado.
       (2) Section 2809(e) of title 10, United States Code, shall 
     not operate to limit the term of the contract entered into 
     under paragraph (1)(A).
       (d) Requirement Relating to Conveyance.--The Secretary of 
     the Army may not make the conveyance authorized by subsection 
     (a) until the execution of the proposed agreement provided 
     for under subsection (c) between the City and County of 
     Denver, Colorado, acting through its Board of Water 
     Commissioners, the South Adams County Water and Sanitation 
     District, the United States Fish and Wildlife Service, and 
     the Army.
       (e) Additional Terms and Conditions.--The Secretary of the 
     Army 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. 2836. LAND CONVEYANCE, ARMY RESERVE CENTER, MASSENA, NEW 
                   YORK.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey, without consideration, to the Village of Massena, New 
     York (in this section referred to as the ``Village''), all 
     right, title, and interest of the United States in and to a 
     parcel of real property, including improvements thereon, 
     consisting of the Army Reserve Center in Massena, New York, 
     for the purpose of permitting the Village to develop the 
     parcel for public benefit, including the development of 
     municipal office space.
       (b) 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 Village.
       (c) Reversionary Interest.--During the five-year period 
     beginning on the date the Secretary makes the conveyance 
     authorized under subsection (a), if the Secretary determines 
     that the conveyed real property is not being used in 
     accordance with the purpose of the conveyance specified in 
     such subsection, 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) 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. 2837. LAND CONVEYANCE, ARMY RESERVE CENTER, OGDENSBURG, 
                   NEW YORK.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey, without consideration, to the City of Ogdensburg, New 
     York (in this section referred to as the ``City''), all 
     right, title, and interest of the United States in and to a 
     parcel of real property, including improvements thereon, 
     consisting of the Army Reserve Center in Ogdensburg, New 
     York, for the purpose of permitting the City to develop the 
     parcel for public benefit, including the development of 
     municipal office space.
       (b) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary. The cost of the survey shall be borne by 
     the City.
       (c) Reversionary Interest.--During the five-year period 
     beginning on the date the Secretary makes the conveyance 
     authorized under subsection (a), if the Secretary determines 
     that the conveyed real property is not being used in 
     accordance with the purpose of the conveyance specified in 
     such subsection, 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) 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. 2838. LAND CONVEYANCE, ARMY RESERVE CENTER, JAMESTOWN, 
                   OHIO.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey, without consideration, to the Greeneview Local School 
     District of Jamestown, Ohio, all right, title, and interest 
     of the United States in and to a parcel of real property, 
     including improvements thereon, that is located at 5693 
     Plymouth Road in Jamestown, Ohio, and contains an Army 
     Reserve Center, for the purpose of permitting the Greeneview 
     Local School District to retain and use the conveyed property 
     for educational purposes.
       (b) 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 Greeneview Local School District.
       (c) Reversionary Interest.--During the five-year period 
     beginning on the date the Secretary makes the conveyance 
     authorized under subsection (a), if the Secretary determines 
     that the conveyed real property is not being used in 
     accordance with the purpose of the conveyance specified in 
     such subsection, 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) 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. 2839. LAND CONVEYANCE, ARMY RESERVE CENTER, PEORIA, 
                   ILLINOIS.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey, without consideration, to the Peoria School District 
     #150 of Peoria, Illinois (in this section referred to as the 
     ``School District''), all right, title, and interest of the 
     United States in and to a parcel of real property, including 
     improvements thereon, consisting of the Army Reserve Center 
     located at 1429 Northmoor Road in Peoria, Illinois, for the 
     purpose of permitting the School District to develop the 
     parcel for educational and transportation purposes.
       (b) 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 School District.
       (c) Reversionary Interest.--During the five-year period 
     beginning on the date the Secretary makes the conveyance 
     authorized under subsection (a), if the Secretary determines 
     that the conveyed real property is not being used in 
     accordance with the purpose of the conveyance specified in 
     such subsection, 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) 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. 2840. LAND CONVEYANCE, ARMY RESERVE CENTER, BRIDGTON, 
                   MAINE.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey, without consideration, to the Town of Bridgton, Maine 
     (in this section referred to as the ``Town''), all right, 
     title, and interest of the United States in and to a parcel 
     of real property, including improvements thereon, consisting 
     of approximately 3.65 acres and containing the Army Reserve 
     Center in Bridgton, Maine, for the purpose of permitting the 
     Town to develop the parcel for public benefit, including the 
     development of municipal office space.
       (b) 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 Town.
       (c) Reversionary Interest.--During the five-year period 
     beginning on the date the Secretary makes the conveyance 
     authorized under subsection (a), if the Secretary determines 
     that the conveyed real property is not being used in 
     accordance with the purpose of the conveyance specified in 
     such subsection, 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) 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. 2841. LAND CONVEYANCE, FORT SHERIDAN, ILLINOIS.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey to the City of Lake Forest, Illinois (in this section 
     referred to as the ``City''), all right, title, and interest, 
     of the United States in and to all or some portion of

[[Page H8181]]

     the parcel of real property, including improvements thereon, 
     at the former Fort Sheridan, Illinois, consisting of 
     approximately 14 acres and known as the northern Army Reserve 
     enclave area.
       (b) Consideration.--As consideration for the conveyance 
     under subsection (a), the City shall pay to the United 
     States an amount equal to not less than the fair market 
     value of the real property to be conveyed, as determined 
     by the Secretary.
       (c) Use of Proceeds.--In such amounts as are provided in 
     advance in appropriations Acts, the Secretary may use the 
     funds paid by the City under subsection (b) to provide for 
     the construction of replacement facilities and for the 
     relocation costs for Reserve units and activities affected by 
     the conveyance.
       (d) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary. The cost of the survey shall be borne by 
     the City.
       (e) Notice and Wait.--The Secretary may not make the 
     conveyance authorized by subsection (a) until 21 days after 
     the date on which the Secretary submits to the congressional 
     defense committees a certification that the relocation of the 
     Reserve units and activities affected by the conveyance is 
     consistent with an approved master plan for the consolidation 
     of Reserve activities in, or in the vicinity of, Chicago, 
     Illinois.
       (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.

     SEC. 2842. LAND CONVEYANCE, SKANEATELES, NEW YORK.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey, without consideration, to the Town of Skaneateles, 
     New York (in this section referred to as the ``Town''), all 
     right, title, and interest of the United States in and to a 
     parcel of real property, including improvements thereon, 
     consisting of approximately 147.10 acres in Skaneateles, New 
     York, and commonly known as the ``Federal Farm'', for the 
     purpose of permitting the Town to develop the parcel for 
     public benefit, including for recreational purposes.
       (b) 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 Town.
       (c) Reversionary Interest.--During the five-year period 
     beginning on the date the Secretary makes the conveyance 
     authorized under subsection (a), if the Secretary determines 
     that the conveyed real property is not being used in 
     accordance with the purpose of the conveyance specified in 
     such subsection, 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) 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 interest of the United 
     States.

     SEC. 2843. LAND CONVEYANCE, INDIANA ARMY AMMUNITION PLANT, 
                   CHARLESTOWN, INDIANA.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey to the Indiana Army Ammunition Plant Reuse Authority 
     (in this section referred to as the ``Reuse Authority'') all 
     right, title, and interest of the United States in and to a 
     parcel of real property, including improvements thereon, 
     consisting of approximately 4660 acres located at the Indiana 
     Army Ammunition Plant, Charlestown, Indiana, for the purpose 
     of developing the parcel as an industrial park to replace all 
     or part of the economic activity lost at the inactivated 
     plant.
       (b) Consideration.--Except as provided in subsection (d), 
     as consideration for the conveyance under subsection (a), the 
     Reuse Authority shall pay to the Secretary an amount equal to 
     the fair market value of the conveyed property as of the time 
     of the conveyance, determined by the Secretary in accordance 
     with Federal appraisal standards and procedures.
       (c) Time for Payment.--The consideration required under 
     subsection (b) shall be paid by the Reuse Authority at the 
     end of the 10-year period beginning on the date on which the 
     conveyance under subsection (a) is completed.
       (d) Effect of Reconveyance or Lease.--(1) If, during the 
     10-year period specified in subsection (c), the Reuse 
     Authority reconveys all or any part of the property conveyed 
     under subsection (a), the Reuse Authority shall pay to the 
     United States an amount equal to the fair market value of the 
     reconveyed property as of the time of the reconveyance, 
     excluding the value of any improvements made to the property 
     by the Reuse Authority, determined by the Secretary in 
     accordance with Federal appraisal standards and procedures.
       (2) The Secretary may treat a lease of the property within 
     such 10-year period as a reconveyance if the Secretary 
     determines that the lease is being used to avoid application 
     of paragraph (1).
       (e) Deposit of Proceeds.--The Secretary shall deposit any 
     proceeds received under subsection (b) or (d) in the special 
     account established pursuant to section 204(h)(2) of the 
     Federal Property and Administrative Services Act of 1949 (40 
     U.S.C. 485(h)(2)).
       (f) Administrative Expenses.--In connection with the 
     conveyance under subsection (a), the Secretary may accept 
     amounts provided by the Reuse Authority or other persons to 
     cover administrative expenses incurred by the Secretary in 
     making the conveyance. Amounts received under this subsection 
     for administrative expenses shall be credited to the 
     appropriation, fund, or account from which the 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.
       (g) Description of Property.--The property to be conveyed 
     under subsection (a) includes the administrative area of the 
     Indiana Army Ammunition Plant as well as open space in the 
     southern end of the plant. The exact acreage and legal 
     description of the property to be conveyed shall be 
     determined by a survey satisfactory to the Secretary. The 
     cost of the survey shall be borne by the Reuse Authority.
       (h) 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.
       (i) Additional Conveyance for Recreational Purposes.--
     Section 2858(a) of the Military Construction Authorization 
     Act for Fiscal Year 1996 (division B of Public Law 104-106; 
     110 Stat. 571), as amended by section 2838 of the Military 
     Construction Authorization Act for Fiscal Year 1998 (division 
     B of Public Law 105-85; 111 Stat. 2006), is further amended 
     by adding at the end the following new paragraph:
       ``(3) The Secretary may also convey to the State, without 
     consideration, another parcel of real property at the Indiana 
     Army Ammunition Plant consisting of approximately 2,000 acres 
     of additional riverfront property in order to connect the 
     parcel conveyed under paragraph (2) with the parcels of 
     Charlestown State Park conveyed to the State under paragraph 
     (1) and title II of the Defense Authorization Amendments and 
     Base Closure and Realignment Act (Public Law 100-526; 10 
     U.S.C. 2687 note).''.

     SEC. 2844. LAND CONVEYANCE, VOLUNTEER ARMY AMMUNITION PLANT, 
                   CHATTANOOGA, TENNESSEE.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey to Hamilton County, Tennessee (in this section 
     referred to as the ``County''), all right, title, and 
     interest of the United States in and to a parcel of real 
     property, including improvements thereon, consisting of 
     approximately 1033 acres located at the Volunteer Army 
     Ammunition Plant, Chattanooga, Tennessee, for the purpose of 
     developing the parcel as an industrial park to replace all or 
     part of the economic activity lost at the inactivated plant.
       (b) Consideration.--Except as provided in subsection (d), 
     as consideration for the conveyance under subsection (a), the 
     County shall pay to the Secretary an amount equal to the fair 
     market value of the conveyed property as of the time of the 
     conveyance, determined by the Secretary in accordance with 
     Federal appraisal standards and procedures.
       (c) Time for Payment.--The consideration required under 
     subsection (b) shall be paid by the County at the end of the 
     10-year period beginning on the date on which the conveyance 
     under subsection (a) is completed.
       (d) Effect of Reconveyance or Lease.--(1) If the County 
     reconveys all or any part of the conveyed property during the 
     10-year period specified in subsection (c), the County shall 
     pay to the United States an amount equal to the fair market 
     value of the reconveyed property as of the time of the 
     reconveyance, excluding the value of any improvements made to 
     the property by the County, determined by the Secretary in 
     accordance with Federal appraisal standards and procedures.
       (2) The Secretary may treat a lease of the property within 
     such 10-year period as a reconveyance if the Secretary 
     determines that the lease is being used to avoid application 
     of paragraph (1).
       (e) Deposit of Proceeds.--The Secretary shall deposit any 
     proceeds received under subsection (b) or (d) in the special 
     account established pursuant to section 204(h)(2) of the 
     Federal Property and Administrative Services Act of 1949 (40 
     U.S.C. 485(h)(2)).
       (f) Effect on Existing Leases.--The conveyance of the real 
     property under subsection (a) shall not affect the terms or 
     length of any contract entered into by the Secretary before 
     the date of the enactment of this Act with regard to the 
     property to be conveyed.
       (g) Administrative Expenses.--In connection with the 
     conveyance under subsection (a), the Secretary may accept 
     amounts provided by the County or other persons to cover 
     administrative expenses incurred by the Secretary in making 
     the conveyance. Amounts received under this subsection for 
     administrative expenses shall be credited to the 
     appropriation, fund, or account from which the 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.
       (h) Description of Property.--The exact acreage and legal 
     description of the 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.
       (i) 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.

[[Page H8182]]

     SEC. 2845. LAND CONVEYANCE, STEWART ARMY SUB-POST, NEW 
                   WINDSOR, NEW YORK.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey, without consideration, to the Town of New Windsor, 
     New York (in this section referred to as the ``Town''), all 
     right, title, and interest of the United States in and to a 
     parcel of real property, including improvements thereon, 
     consisting of approximately 291 acres at the Stewart Army 
     Sub-Post in New Windsor, New York, for the purpose of 
     permitting the Town to develop the parcel for economic 
     purposes.
       (b) Exclusion.--The real property to be conveyed under 
     subsection (a) does not include any portion of the 
     approximately 89.2-acre parcel at Stewart Army Sub-Post that 
     is proposed for transfer to the jurisdiction and control of 
     the Marine Corps or the approximately 22-acre parcel at 
     Stewart Army Sub-Post that is proposed for transfer to the 
     jurisdiction and control of the Army Reserve.
       (c) Conditions of Conveyance.--The conveyance authorized by 
     subsection (a) may only be made subject to the following 
     conditions:
       (1) The Town must agree to provide connections to the local 
     wastewater and sewage treatment system for all existing and 
     future improvements to the parcels of real property 
     referred to in subsection (b).
       (2) The Town must agree to provide wastewater and sewage 
     treatment service to such parcels at a rate established by 
     the appropriate Federal or State regulatory authority.
       (d) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary. The cost of the survey shall be borne by 
     the Town.
       (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.

                       PART II--NAVY CONVEYANCES

     SEC. 2851. CONVEYANCE OF EASEMENT, MARINE CORPS BASE, CAMP 
                   PENDLETON, CALIFORNIA.

       (a) Easement Authorized.--The Secretary of the Navy may 
     grant an easement, in perpetuity, to the Foothill/Eastern 
     Transportation Corridor Agency (in this section referred to 
     as the ``Agency'') over a parcel of real property at Marine 
     Corps Base, Camp Pendleton, California, consisting of 
     approximately 340 acres to permit the recipient of the 
     easement to construct, operate, and maintain a restricted 
     access highway. The area covered by the easement shall 
     include slopes and all necessary incidents thereto.
       (b) Consideration.--As consideration for the grant of an 
     easement under subsection (a), the Agency shall pay to the 
     United States an amount equal to the fair market value of the 
     easement, as determined by an independent appraisal 
     satisfactory to the Secretary and paid for by the Agency.
       (c) Use of Proceeds.--In such amounts as are provided in 
     advance in appropriation Acts, the Secretary shall use the 
     funds paid by the Agency under subsection (b) to carry out 
     one or more of the following programs at Camp Pendleton:
       (1) Enhancement of access from Red, White, and Green 
     Beaches under Interstate Route 5 and railroad crossings to 
     inland areas.
       (2) Improvement of roads and bridge structures in the range 
     and training area.
       (3) Realignment of Basilone Road.
       (d) Description of Property.--The exact acreage and legal 
     description of the easement to be granted under subsection 
     (a) shall be determined by a survey satisfactory to the 
     Secretary. The cost of the survey shall be borne by the 
     Agency.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the grant of an easement under subsection (a) as the 
     Secretary considers appropriate to protect the interests of 
     the United States.

     SEC. 2852. LAND EXCHANGE, NAVAL RESERVE READINESS CENTER, 
                   PORTLAND, MAINE.

       (a) Conveyance Authorized.--(1) The Secretary of the Navy 
     may convey to the Gulf of Maine Aquarium Development 
     Corporation, Portland, Maine (in this section referred to as 
     the ``Corporation''), all right, title, and interest of the 
     United States in and to a parcel of real property, including 
     improvements thereon, consisting of approximately 3.72 acres 
     in Portland, Maine, and containing the Naval Reserve 
     Readiness Center, Portland, Maine, for the purpose of 
     permitting the Corporation to use the parcel for economic 
     development and as the site for an aquarium and marine 
     research facility.
       (2) As part of the conveyance under paragraph (1), the 
     Secretary shall also convey to the Corporation any interest 
     of the United States in the submerged lands adjacent to the 
     real property conveyed under that paragraph that is 
     appurtenant to the real property conveyed under that 
     paragraph.
       (b) Provision of Replacement Facilities.--As consideration 
     for the conveyance authorized by subsection (a), the 
     Corporation shall design and construct such facilities as the 
     Secretary determines appropriate for the Naval Reserve to 
     replace the facilities conveyed under that subsection.
       (c) Location of Replacement Facilities.--(1) To provide a 
     location for the replacement facilities required under 
     subsection (b), the Corporation shall--
       (A) convey to the United States all right, title, and 
     interest in and to a parcel of real property determined by 
     the Secretary to be an appropriate location for such 
     facilities; or
       (B) design and construct such facilities on such parcel of 
     real property under the jurisdiction of the Secretary as the 
     Secretary shall specify.
       (2) The Secretary shall select the alternative provided 
     under paragraph (1) to be used by the Corporation.
       (d) Notice and Wait.--The Secretary may not make the 
     conveyance authorized by subsection (a) until 21 days after 
     the date on which the Secretary submits to the congressional 
     defense committees a report specifying the terms and 
     conditions under which the conveyance will occur.
       (e) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a)(1), of any interest to be conveyed under 
     subsection (a)(2), and of the real property, if any, to be 
     conveyed under subsection (c)(1)(A) shall be determined by 
     surveys satisfactory to the Secretary. The cost of the 
     surveys 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.

     SEC. 2853. LAND CONVEYANCE, NAVAL AND MARINE CORPS RESERVE 
                   FACILITY, YOUNGSTOWN, OHIO.

       (a) Conveyance Authorized.--The Secretary of the Navy may 
     convey, without consideration, to the City of Youngstown, 
     Ohio (in this section referred to as the ``City''), all 
     right, title, and interest of the United States in and to a 
     parcel of real property, including improvements thereon, that 
     is located at 315 East Laclede Avenue in Youngstown, Ohio, 
     and is the location of a Naval and Marine Corps Reserve 
     facility, for the purpose of permitting the City to use the 
     parcel for educational purposes.
       (b) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary. The cost of the survey shall be borne by 
     the City.
       (c) Reversionary Interest.--During the five-year period 
     beginning on the date the Secretary makes the conveyance 
     authorized under subsection (a), if the Secretary determines 
     that the conveyed real property is not being used in 
     accordance with the purpose of the conveyance specified in 
     such subsection, 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) 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. 2854. LAND CONVEYANCE, NAVAL AIR RESERVE CENTER, 
                   MINNEAPOLIS, MINNESOTA.

       (a) Conveyance Authorized.--The Secretary of the Navy may 
     convey to the Minneapolis-St. Paul Metropolitan Airports 
     Commission, Minnesota (in this section referred to as the 
     ``Commission''), all right, title, and interest of the United 
     States in and to a parcel of real property, including 
     improvements thereon, consisting of approximately 32 acres 
     located in Minneapolis, Minnesota, and comprising the Naval 
     Air Reserve Center, Minneapolis, Minnesota, for the purpose 
     of facilitating the expansion of the Minneapolis-St. Paul 
     International Airport.
       (b) Alternative Lease Authority.--In lieu of the conveyance 
     authorized by subsection (a), the Secretary may elect to 
     lease the property referred to in that subsection to the 
     Commission if the Secretary determines that a lease of the 
     property would better serve the interests of the United 
     States.
       (c) Provision of Replacement Facilities.--As consideration 
     for the conveyance under subsection (a), or the lease under 
     subsection (b), the Commission shall--
       (1) provide for such facilities as the Secretary considers 
     appropriate for the Naval Reserve to replace the facilities 
     conveyed or leased under this section;
       (2) assume the costs of designing and constructing such 
     replacement facilities, as may be acceptable to the 
     Secretary; and
       (3) assume any costs incurred by the Secretary in 
     relocating the operations of the Naval Air Reserve Center to 
     such replacement facilities.
       (d) Location of Replacement Facilities.--To provide a 
     location for the replacement facilities required under 
     subsection (c), the Commission may--
       (1) convey to the United States all right, title, and 
     interest in and to a parcel of real property determined by 
     the Secretary to be an appropriate location for such 
     facilities, if the Secretary elects to make the conveyance 
     authorized by subsection (a); or
       (2) lease to the United States a parcel of real property 
     determined by the Secretary to be an appropriate location for 
     such facilities, if the Secretary elects to make the lease 
     authorized by subsection (b).
       (e) Availability of Replacement Facilities.--The Secretary 
     may not make the conveyance authorized by subsection (a), or 
     enter into the lease authorized by subsection (b), until the 
     replacement facilities required by subsection (c) are 
     available for the relocation of the operations of the Naval 
     Air Reserve Center.
       (f) Agreement Relating to Conveyance.--(1) If the Secretary 
     determines to proceed with the conveyance authorized by 
     subsection (a), or the lease authorized by subsection (b), 
     the Secretary and the Commission shall enter into an 
     agreement specifying the terms and conditions under which the 
     conveyance or lease will occur.

[[Page H8183]]

       (2) The Secretary may not enter into the agreement under 
     paragraph (1) until 21 days after the date on which the 
     Secretary submits to the congressional defense committees a 
     report specifying the terms and conditions under which the 
     conveyance or lease will occur.
       (g) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed to the 
     Commission under subsection (a), or leased to the Commission 
     under subsection (b), and the exact acreage and legal 
     description of the real property to be conveyed or leased 
     under subsection (d) to the United States, shall be 
     determined by surveys satisfactory to the Secretary. The cost 
     of the surveys shall be borne by the Commission.
       (h) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a), or the lease under 
     subsection (b), as the Secretary considers appropriate to 
     protect the interests of the United States.

                    PART III--AIR FORCE CONVEYANCES

     SEC. 2861. MODIFICATION OF LAND CONVEYANCE, EGLIN AIR FORCE 
                   BASE, FLORIDA.

       Section 809(c) of the Military Construction Authorization 
     Act, 1979 (Public Law 95-356; 92 Stat. 587), as amended by 
     section 2826 of the Military Construction Authorization Act, 
     1989 (division B of Public Law 100-456; 102 Stat. 2123), is 
     further amended by striking out ``and a third parcel 
     containing forty-two acres'' and inserting in lieu thereof 
     ``, a third parcel containing forty-two acres, a fourth 
     parcel containing approximately 3.43 acres, and a fifth 
     parcel containing approximately 0.56 acres''.

     SEC. 2862. MODIFICATION OF LAND CONVEYANCE, FINLEY AIR FORCE 
                   STATION, NORTH DAKOTA.

       Section 2835 of the Military Construction Authorization Act 
     for Fiscal Year 1995 (division B of Public Law 103-337; 108 
     Stat. 3063) is amended--
       (1) by striking out subsections (a), (b), and (c) and 
     inserting in lieu thereof the following new subsections:
       ``(a) Conveyance Authorized.--The Secretary of the Air 
     Force may convey, without consideration, to the City of 
     Finley, North Dakota (in this section referred to as the 
     `City'), all right, title, and interest of the United States 
     in and to the parcels of real property, including 
     improvements thereon, in the vicinity of Finley, North 
     Dakota, described in subsection (b), for the purpose of 
     permitting the City to use the parcels for economic 
     development.
       ``(b) Covered Parcels.--The parcels of real property 
     authorized for conveyance under subsection (a) are as 
     follows:
       ``(1) A parcel of approximately 14 acres that served as the 
     support complex of the Finley Air Force Station and Radar 
     Site.
       ``(2) A parcel of approximately 57 acres known as the 
     Finley Air Force Station Complex.
       ``(3) A parcel of approximately 6 acres that includes a 
     well site and wastewater treatment system.
       ``(c) Reversionary Interest.--During the five-year period 
     beginning on the date the Secretary makes the conveyance 
     authorized under subsection (a), if the Secretary determines 
     that the conveyed real property is not being used in 
     accordance with the purpose of the conveyance specified in 
     such subsection, 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.''; and
       (2) in subsections (d) and (e), by striking out 
     ``subsection (a)(1)'' and inserting in lieu thereof 
     ``subsection (a)''.

     SEC. 2863. LAND CONVEYANCE, LAKE CHARLES AIR FORCE STATION, 
                   LOUISIANA.

       (a) Conveyance Authorized.--The Secretary of the Air Force 
     may convey, without consideration, to McNeese State 
     University of Louisiana (in this section referred to as the 
     ``University''), all right, title, and interest of the United 
     States in and to a parcel of real property, including 
     improvements thereon, consisting of approximately 4.38 acres 
     at Lake Charles Air Force Station, Louisiana, for the purpose 
     of permitting the University to use the parcel for 
     educational purposes and agricultural research.
       (b) 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 University.
       (c) Reversionary Interest.--During the five-year period 
     beginning on the date the Secretary makes the conveyance 
     authorized under subsection (a), if the Secretary determines 
     that the conveyed real property is not being used in 
     accordance with the purpose of the conveyance specified in 
     such subsection, 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) 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. 2864. LAND CONVEYANCE, AIR FORCE HOUSING FACILITY, LA 
                   JUNTA, COLORADO.

       (a) Conveyance Authorized.--The Secretary of the Air Force 
     may convey, without consideration, to the City of La Junta, 
     Colorado (in this section referred to as the ``City''), all 
     right, title, and interest of the United States in and to the 
     unused Air Force housing facility, consisting of 
     approximately 28 acres and improvements thereon, located 
     within the southern-most boundary of the City, for the 
     purpose of permitting the City to develop the conveyed 
     property for housing and educational purposes.
       (b) Description of Property.--The exact acreage and legal 
     description of the property to be conveyed under subsection 
     (a) shall be determined by a survey satisfactory to the 
     Secretary. The cost of the survey shall be borne by the City.
       (c) Reversionary Interest.--During the five-year period 
     beginning on the date the Secretary makes the conveyance 
     authorized under subsection (a), if the Secretary determines 
     that the conveyed real property is not being used in 
     accordance with the purpose of the conveyance specified in 
     such subsection, 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) 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 E--Other Matters

     SEC. 2871. MODIFICATION OF AUTHORITY RELATING TO DEPARTMENT 
                   OF DEFENSE LABORATORY REVITALIZATION 
                   DEMONSTRATION PROGRAM.

       (a) Program Requirements.--Subsection (c) of section 2892 
     of the Military Construction Authorization Act for Fiscal 
     Year 1996 (division B of Public Law 104-106; 110 Stat. 590; 
     10 U.S.C. 2805 note) is amended to read as follows:
       ``(c) Program Requirements.--(1) Not later than 30 days 
     before commencing the program, the Secretary shall establish 
     procedures for the review and approval of requests from 
     Department of Defense laboratories for construction under the 
     program.
       ``(2) The laboratories at which construction may be carried 
     out under the program may not include Department of Defense 
     laboratories that are contractor-owned.''.
       (b) Report.--Subsection (d) of that section is amended to 
     read as follows:
       ``(d) Report.--Not later than February 1, 2003, the 
     Secretary shall submit to Congress a report on the program. 
     The report shall include the Secretary's conclusions and 
     recommendation regarding the desirability of making the 
     authority set forth under subsection (b) permanent.''.
       (c) Extension.--Subsection (g) of that section is amended 
     by striking out ``September 30, 1998'' and inserting in lieu 
     thereof ``September 30, 2003''.

     SEC. 2872. REPEAL OF PROHIBITION ON JOINT USE OF GRAY ARMY 
                   AIRFIELD, FORT HOOD, TEXAS, WITH CIVIL 
                   AVIATION.

       Section 319 of the National Defense Authorization Act for 
     Fiscal Year 1987 (Public Law 99-661; 100 Stat. 3855) is 
     repealed.

     SEC. 2873. MODIFICATION OF DEMONSTRATION PROJECT FOR PURCHASE 
                   OF FIRE, SECURITY, POLICE, PUBLIC WORKS, AND 
                   UTILITY SERVICES FROM LOCAL GOVERNMENT 
                   AGENCIES.

       Section 816 of the National Defense Authorization Act for 
     Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2820), as 
     amended by section 352 of the National Defense Authorization 
     Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 
     2491), is further amended--
       (1) in subsection (a), by striking out ``, beginning 
     October 1, 1994,'';
       (2) in subsection (b), by striking out ``and 1998'' and 
     inserting in lieu thereof ``through 2000''; and
       (3) by adding at the end the following new subsection:
       ``(c) Duration of Project.--The authority to purchase or 
     receive services under the demonstration project shall expire 
     on September 30, 2000.''.

     SEC. 2874. DESIGNATION OF BUILDING CONTAINING NAVY AND MARINE 
                   CORPS RESERVE CENTER, AUGUSTA, GEORGIA.

       The building containing the Navy and Marine Corps Reserve 
     Center located at 2869 Central Avenue in Augusta, Georgia, 
     shall be known and designated as the ``A. James Dyess 
     Building''.

               TITLE XXIX--JUNIPER BUTTE RANGE WITHDRAWAL

       Sec. 2901. Short title.
       Sec. 2902. Withdrawal and reservation.
       Sec. 2903. Map and legal description.
       Sec. 2904. Agency agreement.
       Sec. 2905. Right-of-way grants.
       Sec. 2906. Indian sacred sites.
       Sec. 2907. Actions concerning ranching operations in 
           withdrawn area.
       Sec. 2908. Management of withdrawn and reserved lands.
       Sec. 2909. Integrated natural resource management plan.
       Sec. 2910. Memorandum of understanding.
       Sec. 2911. Maintenance of roads.
       Sec. 2912. Management of withdrawn and acquired mineral 
           resources.
       Sec. 2913. Hunting, fishing, and trapping.
       Sec. 2914. Water rights.
       Sec. 2915. Duration of withdrawal.
       Sec. 2916. Environmental remediation of relinquished 
           withdrawn lands or upon termination of withdrawal.
       Sec. 2917. Delegation of authority.
       Sec. 2918. Hold harmless.
       Sec. 2919. Authorization of appropriations.

     SEC. 2901. SHORT TITLE.

       This title may be cited as the ``Juniper Butte Range 
     Withdrawal Act''.

     SEC. 2902. WITHDRAWAL AND RESERVATION.

       (a) Withdrawal.--Subject to valid existing rights and 
     except as otherwise provided in this

[[Page H8184]]

     title, the lands at the Juniper Butte Range, Idaho, referred 
     to in subsection (c), are withdrawn from all forms of 
     appropriation under the public land laws, including the 
     mining laws and the mineral and geothermal leasing laws but 
     not the Act of July 31, 1947 (commonly known as the Materials 
     Act of 1947; 30 U.S.C. 601 et seq.).
       (b) Reserved Uses.--The lands withdrawn under subsection 
     (a) are reserved for use by the Secretary of the Air Force 
     for--
       (1) a high hazard training area;
       (2) dropping non-explosive training ordnance with spotting 
     charges;
       (3) electronic warfare and tactical maneuvering and air 
     support; and
       (4) other defense-related purposes consistent with the 
     purposes specified in paragraphs (1), (2), and (3), including 
     continued natural resource management and environmental 
     remediation in accordance with section 2916.
       (c) Site Development Plans.--(1) Site development plans 
     shall be prepared before construction.
       (2) Site development plans shall be incorporated in the 
     integrated natural resource management plan developed under 
     section 2909.
       (3) Except in the case of any minimal improvements, 
     development on the withdrawn lands of any facilities beyond 
     those proposed and analyzed in the Environmental Impact 
     Statement concerning Enhanced Training in Idaho, prepared by 
     the Secretary of the Air Force, the Record of Decision dated 
     March 10, 1998, concerning Enhanced Training in Idaho, 
     prepared by the Secretary of the Air Force, and the site 
     development plans shall be contingent upon review and 
     approval of the Idaho State Director of the Bureau of Land 
     Management.
       (d) General Description.--(1) The public lands withdrawn 
     and reserved by this section comprise approximately 11,300 
     acres of public land in Owhyee County, Idaho, as generally 
     depicted on the map entitled ``Juniper Butte Range 
     Withdrawal--Proposed'', dated June 1998, that will be filed 
     in accordance with section 2903.
       (2) The withdrawal is for an approximately 10,600-acre 
     tactical training range, a 640-acre no-drop target site, four 
     5-acre no-drop target sites and nine 1-acre electronic threat 
     emitter sites.

     SEC. 2903. MAP AND LEGAL DESCRIPTION.

       (a) In General.--As soon as practicable after the date of 
     the enactment of this Act, the Secretary of the Interior 
     shall--
       (1) publish in the Federal Register a notice containing the 
     legal description of the lands withdrawn and reserved by this 
     title; and
       (2) file a map or maps and the legal description of the 
     lands withdrawn and reserved by this title with the Committee 
     on Energy and Natural Resources of the Senate and with the 
     Committee on Resources of the House of Representatives.
       (b) Incorporation by Reference.--Such maps and legal 
     description shall have the same force and effect as if 
     included in this title.
       (c) Correction of Errors.--The Secretary of the Interior 
     may correct clerical and typographical errors in such map or 
     maps and legal description.
       (d) Availability.--Copies of such map or maps and the legal 
     description shall be available for public inspection in the 
     following offices:
       (1) The office of the Idaho State Director of the Bureau of 
     Land Management.
       (2) The offices of the managers of the Lower Snake River 
     District, Bureau Field Office and Jarbidge Field Office of 
     the Bureau of Land Management.
       (3) The Office of the commander of Mountain Home Air Force 
     Base, Idaho.
       (e) Utilization of Air Force Descriptions and Maps.--To the 
     extent practicable, the Secretary of the Interior shall adopt 
     the legal description and maps prepared by the Secretary of 
     the Air Force in support of this title.
       (f) Reimbursement of Costs.--The Secretary of the Air Force 
     shall reimburse the Secretary of the Interior for the costs 
     incurred by the Department of the Interior in implementing 
     this section.

     SEC. 2904. AGENCY AGREEMENT.

       (a) Findings.--Congress makes the following findings:
       (1) The Bureau of Land Management and the Air Force have 
     agreed upon additional mitigation measures associated with 
     this land withdrawal as specified in the ``ENHANCED TRAINING 
     IN IDAHO Memorandum of Understanding Between The Bureau of 
     Land Management and The United States Air Force'' dated June 
     11, 1998.
       (2) This agreement specifies that these mitigation measures 
     will be adopted as part of the Air Force's Record of Decision 
     for Enhanced Training in Idaho.
       (3) Congress endorses this collaborative effort between the 
     agencies and directs that the agreement be implemented.
       (b) Modification.--The parties may, in accordance with the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.), mutually agree to modify the mitigation measures 
     specified in the agreement in light of experience gained 
     through the actions called for in the agreement or as a 
     result of changed military circumstances.
       (c) Construction.--Neither the agreement, any modification 
     thereof, nor this section creates any right, benefit, or 
     trust responsibility, substantive or procedural, enforceable 
     at law or equity by a party against the United States, its 
     agencies, its officers, or any person.

     SEC. 2905. RIGHT-OF-WAY GRANTS.

       In addition to the withdrawal under section 2902 and in 
     accordance with all applicable laws, the Secretary of the 
     Interior shall process and grant the Secretary of the Air 
     Force rights-of-way using the Department of the Interior 
     regulations and policies in effect at the time of filing 
     applications for the one-quarter acre electronic warfare 
     threat emitter sites, roads, powerlines, and other ancillary 
     facilities as described and analyzed in the Enhanced Training 
     in Idaho Final Environmental Impact Statement, dated January 
     1998.

     SEC. 2906. INDIAN SACRED SITES.

       (a) Management.--(1) In the management of the Federal lands 
     withdrawn and reserved by this title, the Air Force shall, to 
     the extent practicable and not clearly inconsistent with 
     essential agency functions--
       (A) accommodate access to and ceremonial use of Indian 
     sacred sites by Indian religious practitioners; and
       (B) avoid adversely affecting the integrity of such sacred 
     sites.
       (2) The Secretary of the Air Force shall maintain the 
     confidentiality of such sites where appropriate.
       (b) Consultation.--The commander of Mountain Home Air Force 
     Base, Idaho, shall regularly consult with the Tribal Chairman 
     of the Shoshone-Paiute Tribes of the Duck Valley Reservation 
     to assure that tribal government rights and concerns are 
     fully considered during the development of the Juniper Butte 
     Range.
       (c) Definitions.--In this section:
       (1) The term ``sacred site'' shall mean any specific, 
     discrete, narrowly delineated location on Federal land that 
     is identified by an Indian tribe, or Indian individual 
     determined to be an appropriately authoritative 
     representative of an Indian religion, as sacred by virtue of 
     its established religious significance to, or ceremonial use 
     by, an Indian religion but only to the extent that the tribe 
     or appropriately authoritative representative of an Indian 
     religion has informed the Air Force of the existence of such 
     a site.
       (2) The term ``Indian tribe'' means an Indian or Alaska 
     Native tribe, band, nation, pueblo, village, or community 
     that the Secretary of the Interior acknowledges to exist as 
     an Indian tribe pursuant to the Federally Recognized Indian 
     Tribe List Act of 1994 (25 U.S.C. 479a-1).
       (3) The term ``Indian'' refers to a member of an Indian 
     tribe.

     SEC. 2907. ACTIONS CONCERNING RANCHING OPERATIONS IN 
                   WITHDRAWN AREA.

       (a) Authority To Conclude and Implement Agreements.--The 
     Secretary of the Air Force is authorized and directed to, 
     upon such terms and conditions as the Secretary of the Air 
     Force considers just and in the national interest, conclude 
     and implement agreements with the grazing permittees to 
     provide appropriate consideration, including future grazing 
     arrangements.
       (b) Implementation.--(1) Upon the conclusion of these 
     agreements, the Assistant Secretary of the Interior for Land 
     and Minerals Management shall grant rights-of-way and 
     approvals and take such actions as are necessary to implement 
     promptly this title and the agreements with the grazing 
     permittees.
       (2) The Secretary of the Air Force and the Secretary of the 
     Interior shall allow the grazing permittees for lands 
     withdrawn and reserved by this title to continue their 
     activities on the lands in accordance with the permits and 
     their applicable regulations until the Secretary of the Air 
     Force has fully implemented the agreement with the grazing 
     permittees under this section.
       (3) Upon the implementation of these agreements, the Bureau 
     of Land Management is authorized and directed, subject to the 
     limitations included in this section, to terminate grazing on 
     the lands withdrawn.

     SEC. 2908. MANAGEMENT OF WITHDRAWN AND RESERVED LANDS.

       (a) In General.--Except as provided in section 2916(d), 
     during the withdrawal and reservation of any lands under this 
     title, the Secretary of the Air Force shall manage such lands 
     for purposes relating to the uses set forth in section 
     2902(b).
       (b) Management According To Plan.--The lands withdrawn and 
     reserved by this title shall be managed in accordance with 
     the provisions of this title under the integrated natural 
     resources management plan prepared under section 2909.
       (c) Authority To Close Land.--(1) If the Secretary of the 
     Air Force determines that military operations, public safety, 
     or the interests of national security require the closure to 
     public use of any road, trail, or other portion of the lands 
     withdrawn by this title that are commonly in public use, the 
     Secretary of the Air Force may take such action.
       (2) Closures under paragraph (1) shall be limited to the 
     minimum areas and periods required for the purposes specified 
     in this subsection.
       (3) During closures, the Secretary of the Air Force shall 
     keep appropriate warning notices posted and take appropriate 
     steps to notify the public about the closures.
       (d) Lease Authority.--The Secretary of the Air Force may 
     enter into leases for State lands with the State of Idaho in 
     support of the Juniper Butte Range and operations at the 
     Juniper Butte Range.
       (e) Prevention and Suppression of Fire.--(1) The Secretary 
     of the Air Force shall take appropriate precautions to 
     prevent and suppress brush fires and range fires that occur 
     within the boundaries of the Juniper Butte Range, as well as 
     brush and range fires occurring outside the boundaries of the 
     Range resulting from military activities.
       (2) Notwithstanding section 2465 of title 10, United States 
     Code, the Secretary of the Air Force may obligate funds 
     appropriated or otherwise available to the Secretary to enter 
     into contracts for fire-fighting.
       (3)(A) The memorandum of understanding under section 2910 
     shall provide for the Bureau of Land Management to assist the 
     Secretary of the Air Force in the suppression of the fires 
     described in paragraph (1).

[[Page H8185]]

       (B) The memorandum of understanding shall provide that the 
     Secretary of the Air Force reimburse the Bureau of Land 
     Management for any costs incurred by the Bureau of Land 
     Management under this paragraph.
       (f) Use of Mineral Materials.--Notwithstanding any other 
     provision of this title or the Act of July 31, 1947 (commonly 
     known as the Materials Act of 1947; 30 U.S.C. 601 et seq.), 
     the Secretary of the Air Force may use, from the lands 
     withdrawn and reserved by this title, sand, gravel, or 
     similar mineral material resources of the type subject to 
     disposition under the Act of July 31, 1947, when the use of 
     such resources is required for construction needs of the 
     Juniper Butte Range.

     SEC. 2909. INTEGRATED NATURAL RESOURCE MANAGEMENT PLAN.

       (a) Requirement.--(1)(A) Not later than 2 years after the 
     date of the enactment of this Act, the Secretary of the Air 
     Force shall, in cooperation with the Secretary of the 
     Interior, the State of Idaho, and Owyhee County, Idaho, 
     develop an integrated natural resources management plan to 
     address the management of the resources of the lands 
     withdrawn and reserved by this title during their withdrawal 
     and reservation under this title.
       (B) Additionally, the integrated natural resource 
     management plan shall address mitigation and monitoring 
     activities by the Air Force for State and Federal lands 
     affected by military training activities associated with the 
     Juniper Butte Range.
       (C) The foregoing will be done cooperatively between the 
     Air Force, the Bureau of Land Management, the State of Idaho, 
     and Owyhee County, Idaho.
       (2) Except as otherwise provided under this title, the 
     integrated natural resources management plan under this 
     section shall be developed in accordance with, and meet the 
     requirements of, section 101 of the Sikes Act (16 U.S.C. 
     670a).
       (3)(A) Site development plans shall be prepared before 
     construction of facilities.
       (B) Such plans shall be reviewed by the Bureau of Land 
     Management, for Federal lands, and the State of Idaho, for 
     State lands, for consistency with the proposal assessed in 
     the Enhanced Training in Idaho Environmental Impact 
     Statement.
       (C) The portion of such development plans describing 
     reconfigurable or replacement targets may be conceptual.
       (b) Elements.--The integrated natural resources management 
     plan under subsection (a) shall--
       (1) include provisions for the proper management and 
     protection of the natural, cultural, and other resources and 
     values of the lands withdrawn and reserved by this title and 
     for the use of such resources in a manner consistent with the 
     uses set forth in section 2902(b);
       (2) permit livestock grazing at the discretion of the 
     Secretary of the Air Force in accordance with section 2907 or 
     any other authorities relating to livestock grazing that are 
     available to that Secretary;
       (3) permit fencing, water pipeline modifications and 
     extensions, and the construction of aboveground water 
     reservoirs, and the maintenance and repair of these items on 
     the lands withdrawn and reserved by this title, and on other 
     lands under the jurisdiction of the Bureau of Land 
     Management; and
       (4) otherwise provide for the management by the Secretary 
     of the Air Force of any lands withdrawn and reserved by this 
     title while retained under the jurisdiction of that Secretary 
     under this title.
       (c) Periodic Review.--The Secretary of the Air Force shall, 
     in cooperation with the Secretary of the Interior and the 
     State of Idaho, review the adequacy of the provisions of the 
     integrated natural resources management plan developed under 
     this section at least once every 5 years after the effective 
     date of the plan.

     SEC. 2910. MEMORANDUM OF UNDERSTANDING.

       (a) Requirement.--The Secretary of the Air Force, the 
     Secretary of the Interior, and the Governor of the State of 
     Idaho shall jointly enter into a memorandum of understanding 
     to implement the integrated natural resources management plan 
     required under section 2909.
       (b) Term.--The memorandum of understanding under subsection 
     (a) shall apply to any lands withdrawn and reserved by this 
     title until their relinquishment by the Secretary of the Air 
     Force under this title.
       (c) Modification.--The memorandum of understanding under 
     subsection (a) may be modified by agreement of all the 
     parties specified in that subsection.

     SEC. 2911. MAINTENANCE OF ROADS.

       The Secretary of the Air Force shall enter into agreements 
     with the Owyhee County Highway District, Idaho, and the Three 
     Creek Good Roads Highway District, Idaho, under which the 
     Secretary of the Air Force shall pay the costs of road 
     maintenance incurred by such districts that are attributable 
     to operations of the Department of the Air Force associated 
     with the Juniper Butte Range.

     SEC. 2912. MANAGEMENT OF WITHDRAWN AND ACQUIRED MINERAL 
                   RESOURCES.

       Except as provided in subsection 2908(f), the Secretary of 
     the Interior shall manage all withdrawn and acquired mineral 
     resources within the boundaries of the Juniper Butte Range in 
     accordance with the Act of February 28, 1958 (commonly known 
     as the Engle Act; 43 U.S.C. 155 et seq.).

     SEC. 2913. HUNTING, FISHING, AND TRAPPING.

       All hunting, fishing, and trapping on the lands withdrawn 
     and reserved by this title shall be conducted in accordance 
     with section 2671 of title 10, United States Code.

     SEC. 2914. WATER RIGHTS.

       (a) Limitation.--The Secretary of the Air Force shall not 
     seek or obtain any water rights associated with any water 
     pipeline modified or extended, or aboveground water reservoir 
     constructed, for purposes of consideration under section 
     2907.
       (b) New Rights.--(1) Nothing in this title shall be 
     construed to establish a reservation in favor of the United 
     States with respect to any water or water right on the lands 
     withdrawn and reserved by this title.
       (2) Nothing in this title shall be construed to authorize 
     the appropriation of water on the lands withdrawn and 
     reserved by this title by the United States after the date of 
     the enactment of this Act unless such appropriation is 
     carried out in accordance with the laws of the State of 
     Idaho.
       (c) Applicability.--This section may not be construed to 
     affect any water rights acquired by the United States before 
     the date of the enactment of this Act.

     SEC. 2915. DURATION OF WITHDRAWAL.

       (a) Termination--(1) Except as otherwise provided in this 
     section and section 2916, the withdrawal and reservation made 
     by this title shall terminate 25 years after the date of the 
     enactment of this Act.
       (2) At the time of termination, the previously withdrawn 
     lands shall not be open to the general land laws, including 
     the mining laws and the mineral and geothermal leasing laws, 
     until the Secretary of the Interior publishes in the Federal 
     Register an appropriate order which shall state the date upon 
     which such lands shall be opened.
       (b) Relinquishment.--(1) If the Secretary of the Air Force 
     determines under subsection (c) that the Air Force has no 
     continuing military need for any lands withdrawn and 
     reserved by this title, the Secretary of the Air Force 
     shall submit to the Secretary of the Interior a notice of 
     intent to relinquish jurisdiction over such lands to the 
     Secretary of the Interior.
       (2) The Secretary of the Interior may accept jurisdiction 
     over any lands covered by a notice of intent to relinquish 
     jurisdiction under paragraph (1) if the Secretary of the 
     Interior determines that the Secretary of the Air Force has 
     completed the environmental review required under section 
     2916(a) and the conditions under section 2916(c) have been 
     met.
       (3) If the Secretary of the Interior decides to accept 
     jurisdiction over lands under paragraph (2) before the date 
     of termination, as provided for in subsection (a)(1), the 
     Secretary of the Interior shall publish in the Federal 
     Register an appropriate order which shall--
       (A) revoke the withdrawal and reservation of such lands 
     under this title;
       (B) constitute official acceptance of administrative 
     jurisdiction over the lands by the Secretary of the Interior; 
     and
       (C) state the date upon which such lands shall be opened to 
     the operation of the general land laws, including the mining 
     laws and the mineral and geothermal leasing laws, if 
     appropriate.
       (4) The Secretary of the Interior shall manage any lands 
     relinquished under this subsection as multiple use status 
     lands.
       (5) If the Secretary of the Interior declines pursuant to 
     subsection (b)(2) to accept jurisdiction of any parcel of 
     land proposed for relinquishment, that parcel shall remain 
     under the continued administration of the Secretary of the 
     Air Force pursuant to section 2916(d).
       (c) Extension.--(1) In the case of any lands withdrawn and 
     reserved by this title that the Air Force proposes to include 
     in a notice of extension because of continued military need 
     under paragraph (2), the Secretary of the Air Force shall, 
     before issuing the notice under paragraph (2)--
       (A) evaluate the environmental effects of the extension of 
     the withdrawal and reservation of such lands in accordance 
     with all applicable laws and regulations; and
       (B) hold at least one public meeting in the State of Idaho 
     regarding that evaluation.
       (2)(A) Not later than 2 years before the termination of the 
     withdrawal and reservation of lands by this title under 
     subsection (a), the Secretary of the Air Force shall notify 
     Congress and the Secretary of the Interior as to whether or 
     not the Air Force has a continuing military need for any of 
     the lands withdrawn and reserved by this title, and not 
     previously relinquished under this section, after the 
     termination date as specified in subsection (a).
       (B)(i) The Secretary of the Air force shall specify in the 
     notice under subparagraph (A) the duration of any extension 
     or further extension of withdrawal and reservation of such 
     lands under this title.
       (ii) The duration of each extension or further extension 
     under clause (i) shall not exceed 25 years.
       (C) The notice under subparagraph (A) shall be published in 
     the Federal Register and a newspaper of local distribution 
     with the opportunity for comments, within a 60-day period, 
     which shall be provided to the Secretary of the Air Force and 
     the Secretary of the Interior.
       (3)(A) Subject to subparagraph (B), in the case of any 
     lands withdrawn and reserved by this title that are covered 
     by a notice of extension under subsection (c)(2), the 
     withdrawal and reservation of such lands shall extend under 
     the provisions of this title after the termination date 
     otherwise provided for under subsection (a) for such period 
     as is specified in the notice under subsection (c)(2).
       (B) Subparagraph (A) shall not apply with respect to any 
     lands covered by a notice referred to in that paragraph until 
     90 legislative days after the date on which the notice with 
     respect to such lands is submitted to Congress under 
     paragraph (2).

     SEC. 2916. ENVIRONMENTAL REMEDIATION OF RELINQUISHED 
                   WITHDRAWN LANDS OR UPON TERMINATION OF 
                   WITHDRAWAL.

       (a) Environmental Review.--(1) Before submitting under 
     section 2915 a notice of an intent

[[Page H8186]]

     to relinquish jurisdiction over lands withdrawn and reserved 
     by this title, and in all cases not later than 2 years before 
     the date of termination of withdrawal and reservation, the 
     Secretary of the Air Force shall, in consultation with the 
     Secretary of the Interior, complete a review that fully 
     characterizes the environmental conditions of such lands 
     (including any water and air associated with such lands) in 
     order to identify any contamination on such lands.
       (2) The Secretary of the Air Force shall submit to the 
     Secretary of the Interior a copy of the review prepared with 
     respect to any lands under paragraph (1). The Secretary of 
     the Air Force shall also submit at the same time any notice 
     of intent to relinquish jurisdiction over such lands under 
     section 2915.
       (3) The Secretary of the Air Force shall submit a copy of 
     any such review to Congress.
       (b) Environmental Remediation of Lands.--The Secretary of 
     the Air Force shall, in accordance with applicable State and 
     Federal law, carry out and complete environmental 
     remediation--
       (1) before relinquishing jurisdiction to the Secretary of 
     the Interior over any lands identified in a notice of intent 
     to relinquish under section 2915(b); or
       (2) before the date of termination of the withdrawal and 
     reservation, except as provided under subsection (d).
       (c) Postponement of Relinquishment.--The Secretary of the 
     Interior shall not accept jurisdiction over any lands that 
     are the subject of activities under subsection (b) until the 
     Secretary of the Interior determines that environmental 
     conditions on the lands are such that--
       (1) all necessary environmental remediation has been 
     completed by the Secretary of the Air Force;
       (2) the lands are safe for nonmilitary uses; and
       (3) the lands could be opened consistent with the Secretary 
     of the Interior's public land management responsibilities.
       (d) Jurisdiction When Withdrawal Terminates.--If the 
     determination required by section (c) cannot be achieved for 
     any parcel of land subject to the withdrawal and reservation 
     before the termination date of the withdrawal and 
     reservation, the Secretary of the Air Force shall retain 
     administrative jurisdiction over such parcels of land 
     notwithstanding the termination date for the limited purposes 
     of--
       (1) environmental remediation activities under subsection 
     (b); and
       (2) any activities relating to the management of such lands 
     after the termination of the withdrawal reservation for 
     military purposes that are provided for in the integrated 
     natural resources management plan under section 2909.
       (e) Effect on Other Laws.--Nothing in this title shall 
     affect, or be construed to affect, the obligations, if any, 
     of the Secretary of the Air Force to decontaminate lands 
     withdrawn by this title pursuant to applicable law, including 
     the Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9601 et seq.) and the Solid 
     Waste Disposal Act (42 U.S.C. 6901 et seq.).

     SEC. 2917. DELEGATION OF AUTHORITY.

       (a) Department of the Air Force Functions.--Except for 
     executing the agreement referred to in section 2907, the 
     Secretary of the Air Force may delegate that Secretary's 
     functions under this title.
       (b) Department of the Interior Functions.--(1) Except as 
     provided in paragraph (2), the Secretary of the Interior may 
     delegate that Secretary's functions under this title.
       (2) The order referred to in section 2915(b)(3) may be 
     approved and signed only by the Secretary of the Interior, 
     the Deputy Secretary of the Interior, or an Assistant 
     Secretary of the Interior.
       (3) The approvals granted by the Bureau of Land Management 
     shall be pursuant to the decisions of the Secretary of the 
     Interior, or the Assistant Secretary for Land and Minerals 
     Management.

     SEC. 2918. HOLD HARMLESS.

       Any party conducting any mining, mineral, or geothermal 
     leasing activity on lands withdrawn and reserved by this 
     title shall indemnify the United States against any costs, 
     fees, damages, or other liabilities (including costs of 
     litigation) incurred by the United States and arising from or 
     relating to such mining activities, including costs of 
     mineral materials disposal, whether arising under the 
     Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9601 et seq.), the Solid 
     Waste Disposal Act (42 U.S.C. 6901 et seq.), or otherwise.

     SEC. 2919. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated such sums as may be 
     necessary to carry out this title.

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

                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.
Sec. 3129. Transfers of defense environmental management funds.

   Subtitle C--Program Authorizations, Restrictions, and Limitations

Sec. 3131. Permanent extension of funding prohibition relating to 
              international cooperative stockpile stewardship.
Sec. 3132. Support of ballistic missile defense activities of the 
              Department of Defense.
Sec. 3133. Nonproliferation activities.
Sec. 3134. Licensing of certain mixed oxide fuel fabrication and 
              irradiation facilities.
Sec. 3135. Continuation of processing, treatment, and disposition of 
              legacy nuclear materials.
Sec. 3136. Authority for Department of Energy federally funded research 
              and development centers to participate in merit-based 
              technology research and development programs.
Sec. 3137. Activities of Department of Energy facilities.
Sec. 3138. Hanford overhead and service center costs.
Sec. 3139. Hanford waste tank cleanup program reforms.
Sec. 3140. Hanford Health Information Network.
Sec. 3141. Hazardous materials management and emergency response 
              training program.
Sec. 3142. Support for public education in the vicinity of Los Alamos 
              National Laboratory, New Mexico.
Sec. 3143. Relocation of National Atomic Museum, Albuquerque, New 
              Mexico.
Sec. 3144. Tritium production.

                       Subtitle D--Other Matters

Sec. 3151. Study and plan relating to worker and community transition 
              assistance.
Sec. 3152. Extension of authority for appointment of certain 
              scientific, engineering, and technical personnel.
Sec. 3153. Requirement for plan to modify employment system used by 
              Department of Energy in defense environmental management 
              programs.
Sec. 3154. Department of Energy nuclear materials couriers.
Sec. 3155. Increase in maximum rate of pay for scientific, engineering, 
              and technical personnel responsible for safety at defense 
              nuclear facilities.
Sec. 3156. Extension of authority of Department of Energy to pay 
              voluntary separation incentive payments.
Sec. 3157. Repeal of fiscal year 1998 statement of policy on stockpile 
              stewardship program.
Sec. 3158. Report on stockpile stewardship criteria.
Sec. 3159. Panel to assess the reliability, safety, and security of the 
              United States nuclear stockpile.
Sec. 3160. International cooperative information exchange.
Sec. 3161. Protection against inadvertent release of Restricted Data 
              and Formerly Restricted Data.
Sec. 3162. Sense of Congress regarding treatment of Formerly Utilized 
              Sites Remedial Action Program under a nondefense 
              discretionary budget function.
Sec. 3163. Reports relating to tritium production.

         Subtitle A--National Security Programs Authorizations

     SEC. 3101. WEAPONS ACTIVITIES.

       (a) In General.--Funds are hereby authorized to be 
     appropriated to the Department of Energy for fiscal year 1999 
     for weapons activities in carrying out programs necessary for 
     national security in the amount of $4,511,600,000, to be 
     allocated as follows:
       (1) Stockpile stewardship.--Funds are hereby authorized to 
     be appropriated to the Department of Energy for fiscal year 
     1999 for stockpile stewardship in carrying out weapons 
     activities necessary for national security programs in the 
     amount of $2,148,375,000, to be allocated as follows:
       (A) For core stockpile stewardship, $1,591,375,000, to be 
     allocated as follows:
       (i) For operation and maintenance, $1,475,832,000.
       (ii) 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), $115,543,000, to be allocated as follows:

       Project 99-D-102, rehabilitation of maintenance facility, 
     Lawrence Livermore National Laboratory, Livermore, 
     California, $6,500,000.
       Project 99-D-103, isotope sciences facilities, Lawrence 
     Livermore National Laboratory, Livermore, California, 
     $4,000,000.
       Project 99-D-104, protection of real property (roof 
     reconstruction, Phase II), Lawrence Livermore National 
     Laboratory, Livermore, California, $7,300,000.
       Project 99-D-105, central health physics calibration 
     facility, Los Alamos National Laboratory, Los Alamos, New 
     Mexico, $3,900,000.
       Project 99-D-106, model validation and system certification 
     test center, Sandia National Laboratories, Albuquerque, New 
     Mexico, $1,600,000.
       Project 99-D-107, joint computational engineering 
     laboratory, Sandia National Laboratories, Albuquerque, New 
     Mexico, $1,800,000.
       Project 99-D-108, renovate existing roadways, Nevada Test 
     Site, Nevada, $2,000,000.

[[Page H8187]]

       Project 97-D-102, dual-axis radiographic hydrotest 
     facility, Los Alamos National Laboratory, Los Alamos, New 
     Mexico, $36,000,000.
       Project 96-D-102, stockpile stewardship facilities 
     revitalization, Phase VI, various locations, $20,423,000.
       Project 96-D-103, ATLAS, Los Alamos National Laboratory, 
     Los Alamos, New Mexico, $6,400,000.
       Project 96-D-104, processing and environmental technology 
     laboratory, Sandia National Laboratories, Albuquerque, New 
     Mexico, $18,920,000.
       Project 96-D-105, contained firing facility addition, 
     Lawrence Livermore National Laboratory, Livermore, 
     California, $6,700,000.

       (B) For inertial fusion, $498,000,000, to be allocated as 
     follows:
       (i) For operation and maintenance, $213,800,000.
       (ii) For the following plant project (including 
     maintenance, restoration, planning, construction, 
     acquisition, and modification of facilities, and land 
     acquisition related thereto), $284,200,000, to be allocated 
     as follows:

       Project 96-D-111, national ignition facility, Lawrence 
     Livermore National Laboratory, Livermore, California, 
     $284,200,000.

       (C) For technology partnership and education, $59,000,000, 
     to be allocated as follows:
       (i) For technology partnership, $50,000,000.
       (ii) For education, $9,000,000.
       (2) Stockpile management.--Funds are hereby authorized to 
     be appropriated to the Department of Energy for fiscal year 
     1999 for stockpile management in carrying out weapons 
     activities necessary for national security programs in the 
     amount of $2,113,225,000, to be allocated as follows:
       (A) For operation and maintenance, $2,014,303,000.
       (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), 
     $98,922,000, to be allocated as follows:
       Project 99-D-122, rapid reactivation, various locations, 
     $11,200,000.
       Project 99-D-123, replace mechanical utility systems, Y-12 
     Plant, Oak Ridge, Tennessee, $1,900,000.
       Project 99-D-125, replace boilers and controls, Kansas City 
     Plant, Kansas City, Missouri, $1,000,000.
       Project 99-D-127, stockpile management restructuring 
     initiative, Kansas City Plant, Kansas City, Missouri, 
     $13,700,000.
       Project 99-D-128, stockpile management restructuring 
     initiative, Pantex Plant consolidation, Amarillo, Texas, 
     $1,108,000.
       Project 99-D-132, stockpile management restructuring 
     initiative, nuclear material safeguards and security upgrades 
     project, Los Alamos National Laboratory, Los Alamos, New 
     Mexico, $9,700,000.
       Project 98-D-123, stockpile management restructuring 
     initiative, tritium facility modernization and consolidation, 
     Savannah River Site, Aiken, South Carolina, $27,500,000.
       Project 98-D-124, stockpile management restructuring 
     initiative, Y-12 Plant consolidation, Oak Ridge, Tennessee, 
     $10,700,000.
       Project 97-D-122, nuclear materials storage facility 
     renovation, Los Alamos National Laboratory, Los Alamos, New 
     Mexico, $3,764,000.
       Project 97-D-123, structural upgrades, Kansas City Plant, 
     Kansas City, Missouri, $6,400,000.
       Project 96-D-122, sewage treatment quality upgrade, Pantex 
     Plant, Amarillo, Texas, $3,700,000.
       Project 95-D-102, chemistry and metallurgy research 
     building upgrades, Los Alamos National Laboratory, Los 
     Alamos, New Mexico, $5,000,000.
       Project 93-D-122, life safety upgrades, Y-12 Plant, Oak 
     Ridge, Tennessee, $3,250,000.
       (3) Program direction.--Funds are hereby authorized to be 
     appropriated to the Department of Energy for fiscal year 1999 
     for program direction in carrying out weapons activities 
     necessary for national security programs in the amount of 
     $250,000,000.
       (b) Adjustments.--
       (1) Construction.--The total amount authorized to be 
     appropriated pursuant to paragraphs (1)(A)(ii), (1)(B)(ii), 
     and (2)(B) of subsection (a) is the sum of the amounts 
     authorized to be appropriated in those paragraphs, reduced by 
     $13,600,000.
       (2) Non-construction.--The total amount authorized to be 
     appropriated pursuant to paragraphs (1)(A)(i), (1)(B)(i), 
     (1)(C), (2)(A), and (3) of subsection (a) is the sum of the 
     amounts authorized to be appropriated in those paragraphs, 
     reduced by $178,900,000, to be derived from use of prior year 
     balances.

     SEC. 3102. DEFENSE ENVIRONMENTAL RESTORATION AND WASTE 
                   MANAGEMENT.

       (a) In General.--Funds are hereby authorized to be 
     appropriated to the Department of Energy for fiscal year 1999 
     for environmental restoration and waste management in 
     carrying out programs necessary for national security in the 
     amount of $5,446,143,000, to be allocated as follows:
       (1) Closure projects.--For closure projects carried out in 
     accordance with section 3143 of the National Defense 
     Authorization Act for Fiscal Year 1997 (Public Law 104-201; 
     110 Stat. 2836; 42 U.S.C. 7274n) in the amount of 
     $1,038,240,000.
       (2) Site project and completion.--For site project and 
     completion in carrying out environmental restoration and 
     waste management activities necessary for national security 
     programs in the amount of $1,067,253,000, to be allocated as 
     follows:
       (A) For operation and maintenance, $868,090,000.
       (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), 
     $199,163,000, to be allocated as follows:
       Project 99-D-402, tank farm support services, F&H areas, 
     Savannah River Site, Aiken, South Carolina, $2,745,000.
       Project 99-D-404, health physics instrumentation 
     laboratory, Idaho National Engineering Laboratory, Idaho, 
     $950,000.
       Project 98-D-401, H-tank farm storm water systems upgrade, 
     Savannah River Site, Aiken, South Carolina, $3,120,000.
       Project 98-D-453, plutonium stabilization and handling 
     system for plutonium finishing plant, Richland, Washington, 
     $26,814,000.
       Project 98-D-700, road rehabilitation, Idaho National 
     Engineering Laboratory, Idaho, $7,710,000.
       Project 97-D-450, Actinide packaging and storage facility, 
     Savannah River Site, Aiken, South Carolina, $79,184,000.
       Project 97-D-470, environmental monitoring laboratory, 
     Savannah River Site, Aiken, South Carolina, $7,000,000.
       Project 96-D-406, spent nuclear fuels canister storage and 
     stabilization facility, Richland, Washington, $38,680,000.
       Project 96-D-408, waste management upgrades, Kansas City 
     Plant, Kansas City, Missouri, and Savannah River Site, Aiken, 
     South Carolina, $4,512,000.
       Project 96-D-464, electrical and utility systems upgrade, 
     Idaho Chemical Processing Plant, Idaho National Engineering 
     Laboratory, Idaho, $11,544,000.
       Project 96-D-471, chlorofluorocarbon heating, ventilation, 
     and air conditioning and chiller retrofit, Savannah River 
     Site, Aiken, South Carolina, $8,000,000.
       Project 95-D-456, security facilities consolidation, Idaho 
     Chemical Processing Plant, Idaho National Engineering 
     Laboratory, Idaho, $485,000.
       Project 92-D-140, F&H canyon exhaust upgrades, Savannah 
     River Site, Aiken, South Carolina, $3,667,000.
       Project 86-D-103, decontamination and waste treatment 
     facility, Lawrence Livermore National Laboratory, Livermore, 
     California, $4,752,000.
       (3) Post-2006 completion.--For post-2006 project completion 
     in carrying out environmental restoration and waste 
     management activities necessary for national security 
     programs in the amount of $2,744,451,000, to be allocated as 
     follows:
       (A) For operation and maintenance, $2,663,195,000.
       (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), 
     $81,256,000, to be allocated as follows:
       Project 99-D-403, privatization phase I infrastructure 
     support, Richland, Washington, $14,800,000.
       Project 97-D-402, tank farm restoration and safe 
     operations, Richland, Washington, $22,723,000.
       Project 96-D-408, waste management upgrades, Richland, 
     Washington, $171,000.
       Project 94-D-407, initial tank retrieval systems, Richland, 
     Washington, $32,860,000.
       Project 93-D-187, high-level waste removal from filled 
     waste tanks, Savannah River Site, Aiken, South Carolina, 
     $10,702,000.
       (4) Science and technology.--For science and technology in 
     carrying out environmental restoration and waste management 
     activities necessary for national security programs in the 
     amount of $250,000,000.
       (5) Program direction.--For program direction in carrying 
     out environmental restoration and waste management activities 
     necessary for national security programs in the amount of 
     $346,199,000.
       (b) Adjustment.--The total amount authorized to be 
     appropriated pursuant to paragraphs (1), (2)(A), (3)(A), (4), 
     and (5) of subsection (a) is the sum of the amounts 
     authorized to be appropriated in those paragraphs, reduced by 
     $94,100,000, to be derived from use of prior year balances.

     SEC. 3103. OTHER DEFENSE ACTIVITIES.

       (a) In General.--Funds are hereby authorized to be 
     appropriated to the Department of Energy for fiscal year 1999 
     for other defense activities in carrying out programs 
     necessary for national security in the amount of 
     $1,716,160,000, to be allocated as follows:
       (1) Nonproliferation and national security.--For 
     nonproliferation and national security, $699,300,000, to be 
     allocated as follows:
       (A) For verification and control technology, $503,500,000, 
     to be allocated as follows:
       (i) For nonproliferation and verification research and 
     development, $210,000,000.
       (ii) For arms control, $256,900,000.
       (iii) For intelligence, $36,600,000.
       (B) For nuclear safeguards and security, $53,200,000.
       (C) For security investigations, $30,000,000.
       (D) For emergency management, $23,700,000.
       (E) For program direction, $88,900,000.
       (2) Worker and community transition assistance.--For worker 
     and community transition assistance, $40,000,000, to be 
     allocated as follows:
       (A) For worker and community transition, $36,000,000.
       (B) For program direction, $4,000,000.
       (3) Fissile materials control and disposition.--For fissile 
     materials control and disposition, $168,960,000, to be 
     allocated as follows:
       (A) For operation and maintenance, $111,372,000.
       (B) For program direction, $4,588,000.
       (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), 
     $53,000,000, to be allocated as follows:

[[Page H8188]]

       Project 99-D-141, pit disassembly and conversion facility, 
     various locations, $25,000,000.
       Project 99-D-143, mixed oxide fuel fabrication facility, 
     various locations, $28,000,000.
       (4) Environment, safety, and health.--For environment, 
     safety, and health, defense, $89,000,000, to be allocated as 
     follows:
       (A) For the Office of Environment, Safety, and Health 
     (Defense), $84,231,000.
       (B) For program direction, $4,769,000.
       (5) Office of hearings and appeals.--For the Office of 
     Hearings and Appeals, $2,400,000.
       (6) International nuclear safety.--For international 
     nuclear safety, $35,000,000.
       (7) Naval reactors.--For naval reactors, $681,500,000, to 
     be allocated as follows:
       (A) For naval reactors development, $661,400,000, to be 
     allocated as follows:
       (i) For operation and maintenance, $639,600,000.
       (ii) 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), $21,800,000, to be allocated as follows:

       GPN-101 general plant projects, various locations, 
     $9,000,000.
       Project 98-D-200, site laboratory/facility upgrade, various 
     locations, $7,000,000.
       Project 90-N-102, expended core facility dry cell project, 
     Naval Reactors Facility, Idaho, $5,800,000.

       (B) For program direction, $20,100,000.
       (b) Adjustment.--(1) The total amount authorized to be 
     appropriated pursuant to this section is the sum of the 
     amounts authorized to be appropriated in paragraphs (1) 
     through (7) of subsection (a) reduced by $2,000,000.
       (2) The amount authorized to be appropriated pursuant to 
     subsection(a)(1)(C) is reduced by $20,000,000 to reflect an 
     offset provided by user organizations for security 
     investigations.

     SEC. 3104. DEFENSE NUCLEAR WASTE DISPOSAL.

       Funds are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 1999 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.

     SEC. 3105. DEFENSE ENVIRONMENTAL MANAGEMENT PRIVATIZATION.

       (a) In General.--Funds are hereby authorized to be 
     appropriated to the Department of Energy for fiscal year 1999 
     for privatization initiatives in carrying out environmental 
     restoration and waste management activities necessary for 
     national security programs in the amount of $286,857,000, to 
     be allocated as follows:
       Project 99-PVT-1, remote handled transuranic waste 
     transportation, Carlsbad, New Mexico, $19,605,000.
       Project 98-PVT-2, spent nuclear fuel dry storage, Idaho 
     Falls, Idaho, $30,000,000.
       Project 98-PVT-5, waste disposal, Oak Ridge, Tennessee, 
     $50,000,000.
       Project 97-PVT-1, tank waste remediation system phase I, 
     Hanford, Washington, $100,000,000.
       Project 97-PVT-2, advanced mixed waste treatment facility, 
     Idaho Falls, Idaho, $87,252,000.
       (b) Adjustment.--The amount authorized to be appropriated 
     in subsection (a) is the sum of the amounts authorized to be 
     appropriated for the projects set forth in that subsection, 
     reduced by $32,000,000 for use of prior year balances of 
     funds for defense environmental management privatization.

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

     SEC. 3124. FUND TRANSFER AUTHORITY.

       (a) Transfer to Other Federal Agencies.--The Secretary of 
     Energy may transfer funds authorized to be appropriated to 
     the Department of Energy pursuant to this title to other 
     Federal agencies for the performance of work for which the 
     funds were authorized. Funds so transferred may be merged 
     with and be available for the same purposes and for the same 
     period as the authorizations of the Federal agency to which 
     the amounts are transferred.
       (b) Transfer Within Department of Energy.--(1) Subject to 
     paragraph (2), the Secretary of Energy may transfer funds 
     authorized to be appropriated to the Department of Energy 
     pursuant to this title between any such authorizations. 
     Amounts of authorizations so transferred may be merged with 
     and be available for the same purposes and for the same 
     period as the authorization to which the amounts are 
     transferred.
       (2) Not more than five percent of any such authorization 
     may be transferred between authorizations under paragraph 
     (1). No such authorization may be increased or decreased by 
     more than five percent by a transfer under such paragraph.
       (c) Limitation.--The authority provided by this section to 
     transfer authorizations--
       (1) 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; and
       (2) may not be used to provide funds for an item for which 
     Congress has specifically denied funds.
       (d) Notice to Congress.--The Secretary of Energy shall 
     promptly notify the Committee on Armed Services of the Senate 
     and the Committee on National Security of the House of 
     Representatives of any transfer of funds to or from 
     authorizations under this title.

     SEC. 3125. AUTHORITY FOR CONCEPTUAL AND CONSTRUCTION DESIGN.

       (a) Requirement for Conceptual Design.--(1) Subject to 
     paragraph (2) and except as provided in paragraph (3), before 
     submitting to Congress a request for funds for a construction 
     project that is in support of a national security program of 
     the Department of Energy, the Secretary of Energy shall 
     complete a conceptual design for that project.
       (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 $5,000,000; or
       (B) for emergency planning, design, and construction 
     activities under section 3126.
       (b) Authority for Construction Design.--(1) Within the 
     amounts authorized by this title, the Secretary of Energy may 
     carry out construction design (including architectural and 
     engineering services) in connection with any proposed 
     construction project if the total estimated cost for such 
     design does not exceed $600,000.
       (2) If the total estimated cost for construction design in 
     connection with any construction project exceeds $600,000, 
     funds for such design must be specifically authorized by law.

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

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

[[Page H8189]]

     planning, design, and construction activities conducted under 
     this section.

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

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

     SEC. 3128. AVAILABILITY OF FUNDS.

       (a) In General.--Except as provided in subsection (b), when 
     so specified in an appropriations Act, amounts appropriated 
     for operation and maintenance or for plant projects may 
     remain available until expended.
       (b) Exception for Program Direction Funds.--Amounts 
     appropriated for program direction pursuant to an 
     authorization of appropriations in subtitle A shall remain 
     available to be expended only until the end of fiscal year 
     2001.

     SEC. 3129. TRANSFERS OF DEFENSE ENVIRONMENTAL MANAGEMENT 
                   FUNDS.

       (a) Transfer Authority for Defense Environmental Management 
     Funds.--The Secretary of Energy shall provide the manager of 
     each field office of the Department of Energy with the 
     authority to transfer defense environmental management funds 
     from a program or project under the jurisdiction of the 
     office to another such program or project.
       (b) Limitations.--(1) Only one transfer may be made to or 
     from any program or project under subsection (a) in a fiscal 
     year.
       (2) The amount transferred to or from a program or project 
     under subsection (a) may not exceed $5,000,000 in a fiscal 
     year.
       (3) A transfer may not be carried out by a manager of a 
     field office under subsection (a) unless the manager 
     determines that the transfer is necessary to address a risk 
     to health, safety, or the environment or to assure the most 
     efficient use of defense environmental management funds at 
     the field office.
       (4) Funds transferred pursuant to subsection (a) may not be 
     used for an item for which Congress has specifically denied 
     funds or for a new program or project that has not been 
     authorized by Congress.
       (c) Exemption From Reprogramming Requirements.--The 
     requirements of section 3121 shall not apply to transfers of 
     funds pursuant to subsection (a).
       (d) Notification.--The Secretary, acting through the 
     Assistant Secretary of Energy for Environmental Management, 
     shall notify Congress of any transfer of funds pursuant to 
     subsection (a) not later than 30 days after such transfer 
     occurs.
       (e) Definitions.--In this section:
       (1) The term ``program or project'' means, with respect to 
     a field office of the Department of Energy, any of the 
     following:
       (A) A program referred to or a project listed in paragraph 
     (2) or (3) of section 3102.
       (B) A program or project not described in subparagraph (A) 
     that is for environmental restoration or waste management 
     activities necessary for national security programs of the 
     Department, that is being carried out by the office, and for 
     which defense environmental management funds have been 
     authorized and appropriated before the date of enactment of 
     this Act.
       (2) The term ``defense environmental management funds'' 
     means funds appropriated to the Department of Energy pursuant 
     to an authorization for carrying out environmental 
     restoration and waste management activities necessary for 
     national security programs.
       (f) Duration of Authority.--The managers of the field 
     offices of the Department may exercise the authority provided 
     under subsection (a) during the period beginning on October 
     1, 1998, and ending on September 30, 1999.

   Subtitle C--Program Authorizations, Restrictions, and Limitations

     SEC. 3131. PERMANENT EXTENSION OF FUNDING PROHIBITION 
                   RELATING TO INTERNATIONAL COOPERATIVE STOCKPILE 
                   STEWARDSHIP.

       Section 3133(a) of the National Defense Authorization Act 
     for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 2036) is 
     amended by striking out ``for fiscal year 1998'' and 
     inserting in lieu thereof ``for any fiscal year''.

     SEC. 3132. SUPPORT OF BALLISTIC MISSILE DEFENSE ACTIVITIES OF 
                   THE DEPARTMENT OF DEFENSE.

       (a) Funds To Carry Out Certain Ballistic Missile Defense 
     Activities.--Of the amounts authorized to be appropriated to 
     the Department of Energy pursuant to section 3101, 
     $30,000,000 shall be available for research, development, and 
     demonstration activities to support the mission of the 
     Ballistic Missile Defense Organization of the Department of 
     Defense, including the following activities:
       (1) Technology development, concept demonstration, and 
     integrated testing to improve reliability and reduce risk in 
     hit-to-kill interceptors for missile defense.
       (2) Support for science and engineering teams to address 
     technical problems identified by the Director of the 
     Ballistic Missile Defense Organization as critical to 
     acquisition of a theater missile defense capability.
       (b) Memorandum of Understanding.--The activities referred 
     to in subsection (a) shall be carried out under the 
     memorandum of understanding entered into by the Secretary of 
     Energy and the Secretary of Defense for the use of national 
     laboratories for ballistic missile defense programs, as 
     required by section 3131 of the National Defense 
     Authorization Act for Fiscal Year 1998 (Public Law 105-85; 
     111 Stat. 2034).
       (c) Method of Funding.--Funds for activities referred to in 
     subsection (a) may be provided--
       (1) by direct payment from funds available pursuant to 
     subsection (a); or
       (2) in the case of such an activity carried out by a 
     national laboratory but paid for by the Ballistic Missile 
     Defense Organization, through a method under which the 
     Secretary of Energy waives any requirement for the Department 
     of Defense to pay any indirect expenses (including overhead 
     and federal administrative charges) of the Department of 
     Energy or its contractors.

     SEC. 3133. NONPROLIFERATION ACTIVITIES.

       (a) Initiatives for Proliferation Prevention.--Of the 
     amount authorized to be appropriated by section 
     3103(a)(1)(A)(ii), up to $20,000,000 may be used for the 
     Initiatives for Proliferation Prevention program.
       (b) Nuclear Cities Initiative.--(1) Funds authorized under 
     this title may not be obligated or expended for the purpose 
     of implementing the Nuclear Cities Initiative until--
       (A) the Secretary of Energy submits to the congressional 
     defense committees the report described in paragraph (2); and
       (B) a period of 20 legislative days has expired following 
     the date on which the report is submitted to Congress.
       (2) The Secretary of Energy shall prepare a report on the 
     Nuclear Cities Initiative. The report shall describe--
       (A) the objectives of the initiative;
       (B) methods and processes for the implementation of the 
     initiative;
       (C) a program timeline for the initiative with milestones; 
     and
       (D) the funding requirements for the initiative through its 
     completion.
       (3) For purposes of this section, the term ``Nuclear Cities 
     Initiative'' means the initiative arising pursuant to the 
     March 1998 discussion between the Vice President of the 
     United States and the Prime Minister of the Russian 
     Federation and between the Secretary of Energy of the United 
     States and the Minister of Atomic Energy of the Russian 
     Federation.
       (4) For purposes of paragraph (1)(B), a legislative day is 
     a day on which both Houses of Congress are in session.

     SEC. 3134. LICENSING OF CERTAIN MIXED OXIDE FUEL FABRICATION 
                   AND IRRADIATION FACILITIES.

       (a) License Requirement.--Section 202 of the Energy 
     Reorganization Act of 1974 (42 U.S.C. 5842) is amended by 
     adding at the end the following new paragraph:
       ``(5) Any facility under a contract with and for the 
     account of the Department of Energy that is utilized for the 
     express purpose of fabricating mixed plutonium-uranium oxide 
     nuclear reactor fuel for use in a commercial nuclear reactor 
     licensed under such Act, other than any such facility that is 
     utilized for research, development, demonstration, testing, 
     or analysis purposes.''.
       (b) Availability of Funds for Licensing by NRC.--Section 
     210 of the Department of Energy National Security and 
     Military Applications of Nuclear Energy Authorization Act of 
     1981 (42 U.S.C. 7272) shall not apply to any licensing 
     activities required pursuant to section 202(5) of the Energy 
     Reorganization Act of 1974 (42 U.S.C. 5842), as added by 
     subsection (a).
       (c) Applicability of Occupational Safety and Health 
     Requirements to Activities under License.--Any activities 
     carried out under a license required pursuant to section 
     202(5) of the Energy Reorganization Act of 1974 (42 U.S.C. 
     5842), as added by subsection (a), shall be subject to 
     regulation under the Occupational Safety and Health Act of 
     1970 (29 U.S.C. 651 et seq.).

     SEC. 3135. CONTINUATION OF PROCESSING, TREATMENT, AND 
                   DISPOSITION OF LEGACY NUCLEAR MATERIALS.

       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, Aiken, South 
     Carolina, and shall provide technical staff necessary to 
     operate and so maintain such facilities.

     SEC. 3136. AUTHORITY FOR DEPARTMENT OF ENERGY FEDERALLY 
                   FUNDED RESEARCH AND DEVELOPMENT CENTERS TO 
                   PARTICIPATE IN MERIT-BASED TECHNOLOGY RESEARCH 
                   AND DEVELOPMENT PROGRAMS.

       (a) Authority.--Section 217(f)(1) of the National Defense 
     Authorization Act for Fiscal Year 1995 (Public Law 103-337; 
     108 Stat. 2695) is amended--
       (1) by inserting ``(A)'' after ``(1)'';
       (2) by inserting ``or of the Department of Energy'' after 
     ``the Department of Defense''; and
       (3) by adding at the end the following new subparagraph:
       ``(B) A federally funded research and development center of 
     the Department of Energy described in subparagraph (A) may 
     respond to solicitations and announcements described in that 
     subparagraph only for activities conducted by the center 
     under contract with or on behalf of the Department of 
     Defense.''.
       (b) Conforming Amendment.--Section 217(f)(2) of such Act is 
     amended by inserting ``(A)'' after ``(1)''.

     SEC. 3137. ACTIVITIES OF DEPARTMENT OF ENERGY FACILITIES.

       (a) Research and Activities on Behalf of Non-Department 
     Persons and Entities.--(1) The Secretary of Energy may 
     conduct research and other activities referred to in 
     paragraph (2) at facilities of the Department of Energy on 
     behalf of other departments and agencies of the Government, 
     agencies of State and local governments, and private persons 
     and entities.
       (2) The research and other activities that may be conducted 
     under paragraph (1) are those which the Secretary is 
     authorized to conduct by law, including research and 
     activities authorized under the following provisions of law:
       (A) The Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.).
       (B) The Energy Reorganization Act of 1974 (42 U.S.C. 5811 
     et seq.).

[[Page H8190]]

       (C) The Federal Nonnuclear Energy Research and Development 
     Act of 1974 (42 U.S.C. 5901 et seq.).
       (b) Charges.--(1) The Secretary shall impose on the 
     department, agency, or person or entity for which research 
     and other activities are carried out under subsection (a) a 
     charge for such research and activities in carrying out such 
     research and activities, which shall include--
       (A) the direct cost incurred in carrying out such research 
     and activities; and
       (B) the overhead cost, including site-wide indirect costs, 
     associated with such research and activities.
       (2)(A) Subject to subparagraph (B), the Secretary shall 
     also impose on the department, agency, or person or entity 
     concerned a Federal administrative charge (which includes any 
     depreciation and imputed interest charges) in an amount not 
     to exceed 3 percent of the full cost incurred in carrying out 
     the research and activities concerned.
       (B) The Secretary may waive the imposition of the Federal 
     administrative charge required by subparagraph (A) in the 
     case of research and other activities conducted on behalf of 
     small business concerns, institutions of higher education, 
     non-profit entities, and State and local governments.
       (3) Not later than two years after the date of the 
     enactment of this Act, the Secretary shall terminate any 
     waiver of charges under section 33 of the Atomic Energy Act 
     of 1954 (42 U.S.C. 2053) that were made before such date, 
     unless the Secretary determines that such waiver should be 
     continued.
       (c) Pilot Program of Reduced Facility Overhead Charges.--
     (1) The Secretary may, with the cooperation of participating 
     contractors of the contractor-operated facilities of the 
     Department, carry out a pilot program under which the 
     Secretary and such contractors reduce the facility overhead 
     charges imposed under this section for research and other 
     activities conducted under this section.
       (2) The Secretary shall carry out the pilot program at 
     contractor-operated facilities selected by the Secretary in 
     consultation with the contractors concerned.
       (3) The Secretary shall determine the facility overhead 
     charges to be imposed under the pilot program at a facility 
     based on a joint review by the Secretary and the contractor 
     for the facility of all items included in the overhead costs 
     of the facility in order to determine which items are 
     appropriately incurred as facility overhead charges by the 
     contractor in carrying out research and other activities at 
     such facility under this section.
       (4) The Secretary shall commence carrying out the pilot 
     program under this subsection not later than October 1, 1999, 
     and shall terminate the pilot program on September 30, 2003.
       (5) Not later than January 31, 2003, the Secretary shall 
     submit to Congress an interim report on the results of the 
     pilot program under this subsection. The report shall include 
     any recommendations for the extension or expansion of the 
     pilot program, including the establishment of multiple rates 
     of overhead charges for various categories of persons and 
     entities seeking research and other activities in contractor-
     operated facilities of the Department.
       (d) Applicability With Respect to User Fee Practice.--This 
     section does not apply to the practice of the Department of 
     Energy with respect to user fees at Department facilities.

     SEC. 3138. HANFORD OVERHEAD AND SERVICE CENTER COSTS.

       (a) Target for Reduction of Costs.--The Secretary of Energy 
     shall establish a target for the overhead and service center 
     costs for the Project Hanford Management Contractor for 
     fiscal year 1999 that is less than the established baseline 
     for such costs for that fiscal year.
       (b) Use of Funds Resulting from Reduction.--If the actual 
     overhead and service center costs for that contractor for 
     fiscal year 1999 are less than the established baseline for 
     such costs for that fiscal year, the Secretary, to the extent 
     consistent with fiscal year 1999 appropriations, shall use an 
     amount equal to the difference between the baseline and such 
     actual costs to perform additional clean-up work at Hanford 
     in order to reduce the most threatening environmental risks 
     at Hanford and to comply with applicable laws and regulations 
     and the Tri-Party Agreement among the Department of Energy, 
     the Environmental Protection Agency, and the State of 
     Washington.
       (c) Review.--The Director of the Defense Contract Audit 
     Agency shall review the Project Hanford Management Contract 
     for compliance with cost accounting standards promulgated 
     pursuant to section 26(f) of the Office of Federal 
     Procurement Policy Act (42 U.S.C. 422(f)). The review shall 
     include the following:
       (1) An identification and assessment of methods for 
     calculating overhead costs.
       (2) A description of activities the costs of which are 
     allocated to--
       (A) all accounts at the Hanford site other than overhead 
     accounts; or
       (B) other contracts under which work is performed at the 
     Hanford site.
       (3) A description of service center costs, including--
       (A) computer service and information management costs and 
     other support service costs; and
       (B) costs of any activity which is paid for on a per-unit 
     basis.
       (4) An identification and assessment of all fees, awards, 
     or other profit on overhead or service center costs that are 
     not attributed to performance on a single project or 
     contract.
       (5) An identification and assessment of all contracts 
     awarded without competition.
       (6) An identification and assessment of any other costs 
     that the Director considers necessary or appropriate to 
     present a full and complete review of Hanford costs.
       (d) Report.--Not later than March 1, 1999, the Director of 
     the Defense Contract Audit Agency shall submit to the 
     congressional defense committees a report on the results of 
     the review under subsection (c).

     SEC. 3139. HANFORD WASTE TANK CLEANUP PROGRAM REFORMS.

       (a) Establishment of Office of River Protection.--The 
     Secretary of Energy shall establish an office at the Hanford 
     Reservation, Richland, Washington, to be known as the 
     ``Office of River Protection'' (in this section referred to 
     as the ``Office'').
       (b) Management and Responsibilities of Office.--(1) The 
     Office shall be headed by a senior official of the Department 
     of Energy, who shall report to the Assistant Secretary of 
     Energy for Environmental Management.
       (2) The head of the Office shall be responsible for 
     managing all aspects of the Tank Waste Remediation System 
     (also referred to as the Hanford Tank Farm operations), 
     including those portions under privatization contracts, of 
     the Department of Energy at Hanford.
       (c) Department Responsibilities.--The Secretary shall 
     provide the manager of the Office with the resources and 
     personnel necessary to manage the tank waste privatization 
     program at Hanford in an efficient and streamlined manner.
       (d) Integrated Management Plan.--Not later than 90 days 
     after the date of the enactment of this Act, the Secretary 
     shall submit to the Committee on Armed Services of the Senate 
     and the Committees on Commerce and on National Security of 
     the House of Representatives an integrated management plan 
     for all aspects of the Hanford Tank Farm operations, 
     including the roles, responsibilities, and reporting 
     relationships of the Office.
       (e) Report.--Not later than two years after the 
     commencement of operations of the Office, the Secretary shall 
     submit to the committees referred to in subsection (d) a 
     report describing--
       (1) any progress in or resulting from the utilization of 
     the Tank Waste Remediation System; and
       (2) any improvements in the management structure of the 
     Department at Hanford with respect to the Tank Waste 
     Remediation System as a result of the Office.
       (f) Termination.--(1) The Office shall terminate five years 
     after the commencement of operations under this section 
     unless the Secretary determines that termination on that date 
     would disrupt effective management of the Hanford Tank Farm 
     operations.
       (2) The Secretary shall notify, in writing, the committees 
     referred to in subsection (d) of a determination under 
     paragraph (1).

     SEC. 3140. HANFORD HEALTH INFORMATION NETWORK.

       Of the funds authorized to be appropriated or otherwise 
     made available to the Department of Energy by section 3102, 
     $1,500,000 shall be available for activities relating to the 
     Hanford Health Information Network established pursuant to 
     the authority in section 3138 of the National Defense 
     Authorization Act for Fiscal Year 1991 (Public Law 101-510; 
     104 Stat. 1834), as amended by section 3138(b) of the 
     National Defense Authorization Act for Fiscal Year 1995 
     (Public Law 103-337; 108 Stat. 3087).

     SEC. 3141. HAZARDOUS MATERIALS MANAGEMENT AND EMERGENCY 
                   RESPONSE TRAINING PROGRAM.

       The Secretary of Energy may enter into partnership 
     arrangements with Federal and non-Federal entities to share 
     the costs of operating the hazardous materials management and 
     hazardous materials emergency response training program 
     authorized under section 3140(a) of the National Defense 
     Authorization Act for Fiscal Year 1995 (Public Law 103-337; 
     108 Stat. 3088). Such arrangements may include the exchange 
     of equipment and services, in lieu of payment for the 
     training program.

     SEC. 3142. SUPPORT FOR PUBLIC EDUCATION IN THE VICINITY OF 
                   LOS ALAMOS NATIONAL LABORATORY, NEW MEXICO.

       (a) Availability of Funds.--Of the funds authorized to be 
     appropriated or otherwise made available to the Department of 
     Energy by this title, up to $5,000,000 shall be made 
     available for payment by the Secretary of Energy to the 
     educational foundation chartered to enhance educational 
     activities in the public schools in the vicinity of Los 
     Alamos National Laboratory, New Mexico (in this section 
     referred to as the ``Foundation'').
       (b) Use of Funds.--(1) The Foundation shall utilize funds 
     provided under subsection (a) as a contribution to an 
     endowment fund for the Foundation.
       (2) The Foundation shall use the income generated from 
     investments in the endowment fund that are attributable to 
     the payment made under subsection (a) to fund programs to 
     support the educational needs of children in public schools 
     in the vicinity of Los Alamos National Laboratory.

     SEC. 3143. RELOCATION OF NATIONAL ATOMIC MUSEUM, ALBUQUERQUE, 
                   NEW MEXICO.

       The Secretary of Energy shall submit to the congressional 
     defense committees a plan for the relocation of the National 
     Atomic Museum in Albuquerque, New Mexico.

     SEC. 3144. TRITIUM PRODUCTION.

       The Secretary of Energy may not obligate or expend any 
     funds authorized to be appropriated or otherwise available to 
     the Department of Energy for fiscal year 1999 to implement a 
     final decision on the technology to be utilized for tritium 
     production, made pursuant to section 3135 of the National 
     Defense Authorization Act for Fiscal Year 1998 (Public Law 
     105-85; 111 Stat. 2037), until October 1, 1999.

[[Page H8191]]

                       Subtitle D--Other Matters

     SEC. 3151. STUDY AND PLAN RELATING TO WORKER AND COMMUNITY 
                   TRANSITION ASSISTANCE.

       (a) Study by the General Accounting Office.--
       (1) Study requirement.--The Comptroller General shall 
     conduct a study on the effects of workforce restructuring 
     plans for defense nuclear facilities developed pursuant to 
     section 3161 of the National Defense Authorization Act for 
     Fiscal Year 1993 (42 U.S.C. 7274h).
       (2) Matters covered by study.--The study shall cover the 
     four-year period preceding the date of the enactment of this 
     Act and shall include the following:
       (A) An analysis of the number of jobs created by any 
     employee retraining, education, and reemployment assistance 
     and any community impact assistance provided in each 
     workforce restructuring plan developed pursuant to section 
     3161 of the National Defense Authorization Act for Fiscal 
     Year 1993.
       (B) An analysis of other benefits provided pursuant to such 
     plans, including any assistance provided to community reuse 
     organizations.
       (C) A description of the funds expended, and the funds 
     obligated but not expended, pursuant to such plans as of the 
     date of the report.
       (D) A description of the criteria used since October 23, 
     1992, in providing assistance pursuant to such plans.
       (E) A comparison of any similar benefits provided--
       (i) pursuant to such a plan to employees whose employment 
     at the defense nuclear facility covered by the plan is 
     terminated; and
       (ii) to employees whose employment at a facility where more 
     than 50 percent of the revenues are derived from contracts 
     with the Department of Defense has been terminated as a 
     result of cancellation, termination, or completion of 
     contracts with the Department of Defense and the employees 
     whose employment is terminated constitute more than 15 
     percent of the employees at that facility.
       (F) A comparison of--
       (i) involuntary separation benefits provided to employees 
     of Department of Energy contractors and subcontractors under 
     such plans; and
       (ii) involuntary separation benefits provided to employees 
     of the Federal Government.
       (G) A comparison of costs to the Federal Government 
     (including costs of involuntary separation benefits) for--
       (i) involuntary separations of employees of Department of 
     Energy contractors and subcontractors; and
       (ii) involuntary separations of employees of contractors 
     and subcontractors of other Federal Government departments 
     and agencies.
       (H) A description of the length of service and hiring dates 
     of employees of Department of Energy contractors and 
     subcontractors provided benefits under such plans in the two-
     year period preceding the date of the enactment of this Act.
       (3) Report on study.--The Comptroller General shall submit 
     a report to Congress on the results of the study not later 
     than March 31, 1999.
       (4) Definition.--In this section, the term ``defense 
     nuclear facility'' has the meaning provided the term 
     ``Department of Energy defense nuclear facility'' in section 
     3163 of the National Defense Authorization Act for Fiscal 
     Year 1993 (Public Law 102-484; 42 U.S.C. 7274j).
       (b) Plan for Termination of Worker and Community Transition 
     Program.--Not later than July 1, 1999, the Secretary of 
     Energy shall submit to the congressional defense committees a 
     plan to terminate the Office of Worker and Community 
     Transition. The plan shall include--
       (1) a description of how the authority of the Office would 
     be terminated; and
       (2) a description of how the responsibility to manage 
     downsizing of the contractor workforce of the Department of 
     Energy would be transferred to other offices or programs 
     within the Department.

     SEC. 3152. EXTENSION OF AUTHORITY FOR APPOINTMENT OF CERTAIN 
                   SCIENTIFIC, ENGINEERING, AND TECHNICAL 
                   PERSONNEL.

       Section 3161(c)(1) of the National Defense Authorization 
     Act for Fiscal Year 1995 (42 U.S.C. 7231 note) is amended by 
     striking out ``September 30, 1999'' and inserting in lieu 
     thereof ``September 30, 2000''.

     SEC. 3153. REQUIREMENT FOR PLAN TO MODIFY EMPLOYMENT SYSTEM 
                   USED BY DEPARTMENT OF ENERGY IN DEFENSE 
                   ENVIRONMENTAL MANAGEMENT PROGRAMS.

       (a) Plan Requirement.--Not later than February 1, 1999, the 
     Secretary of Energy shall submit to Congress a report 
     containing a plan to modify the Federal employment system 
     used within the defense environmental management programs of 
     the Department of Energy to allow for workforce restructuring 
     in those programs.
       (b) Specified Elements of Plan.--The plan shall address 
     strategies to recruit and hire--
       (1) individuals with a high degree of scientific and 
     technical competence in the areas of nuclear and toxic waste 
     remediation and environmental restoration; and
       (2) individuals with the necessary skills to manage large 
     construction and environmental remediation projects.
       (c) Legislative Changes.--The plan shall include an 
     identification of the provisions of Federal law that would 
     need to be changed to allow the Secretary of Energy to 
     restructure the Department of Energy defense environmental 
     management workforce to hire individuals described in 
     subsection (b), while staying within any numerical 
     limitations required by law (including section 3161 of Public 
     Law 103-337 (42 U.S.C. 7231 note)) on employment of such 
     individuals.

     SEC. 3154. DEPARTMENT OF ENERGY NUCLEAR MATERIALS COURIERS.

       (a) Maximum Age for Entry into Nuclear Materials Courier 
     Force.--Section 3307 of title 5, United States Code, is 
     amended--
       (1) in subsection (a), by striking ``and (d)'' and 
     inserting ``(d), (e), and (f)''; and
       (2) by adding at the end the following:
       ``(f) The Secretary of Energy may determine and fix the 
     maximum age limit for an original appointment to a position 
     as a nuclear materials courier, as defined by section 
     8331(27) or 8401(33).''.
       (b) Definition for Purposes of Civil Service Retirement 
     System.--Section 8331 of title 5, United States Code, is 
     amended--
       (1) by striking ``and'' at the end of paragraph (25);
       (2) by striking the period at the end of paragraph (26) and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(27) `Nuclear materials courier'--
       ``(A) means an employee of the Department of Energy, the 
     duties of whose position are primarily to transport, and 
     provide armed escort and protection during transit of, 
     nuclear weapons, nuclear weapon components, strategic 
     quantities of special nuclear materials or other materials 
     related to national security; and
       ``(B) includes an employee who is transferred directly to a 
     supervisory or administrative position within the same 
     Department of Energy organization, after performing duties 
     referred to in subparagraph (A) for at least 3 years.''.
       (c) Deductions, Contributions, and Deposits Under CSRS.--
     (1) Subsection (a)(1) of section 8334 of title 5, United 
     States Code, is amended by striking ``or member of the 
     Capitol Police,'' and inserting ``member of the Capitol 
     Police, or nuclear materials courier,''.
       (2) Subsection (c) of that section is amended by adding 
     after the item for a Member of the Capitol Police the 
     following new item:

 
 
 
``Nuclear materials courier...  7.........  October 1, 1977 to the day
                                             before the date of
                                             enactment of the Strom
                                             Thurmond National Defense
                                             Authorization Act for
                                             Fiscal Year 1999.
                                7.5.......  The date of enactment of the
                                             Strom Thurmond National
                                             Defense Authorization Act
                                             for Fiscal Year 1999 to
                                             December 31, 1998.
                                7.75......  January 1, 1999 to December
                                             31, 1999.
                                7.9.......  January 1, 2000 to December
                                             31, 2000.
                                8.........  January 1, 2001 to December
                                             31, 2002.
                                7.5.......  After December 31, 2002.''.
 

       (3) Notwithstanding subsection (a)(1) or (k)(1) of section 
     8334 of title 5, United States Code, or section 7001(a) of 
     Public Law 105-33, during the period beginning on the 
     effective date provided for under subsection (n)(1) and 
     ending on September 30, 2002, the Department of Energy shall 
     deposit in the Treasury of the United States to the credit of 
     the Civil Service Retirement and Disability Fund on behalf of 
     each nuclear materials courier from whose basic pay a 
     deduction is made under such subsection (a)(1) during that 
     period an amount equal to 9.01 percent of such basic pay, in 
     lieu of the agency contributions otherwise required under 
     such subsection (a)(1) during that period.
       (d) Mandatory Separation Under CSRS.--Section 8335(b) of 
     title 5, United States Code, is amended in the second 
     sentence--
       (1) by inserting ``or nuclear materials courier'' after 
     ``law enforcement officer''; and
       (2) by inserting ``or courier, as the case may be,'' after 
     ``that officer''.
       (e) Immediate Retirement Under CSRS.--Section 8336(c)(1) of 
     title 5, United States Code, is amended by striking ``or 
     firefighter'' and inserting ``, firefighter, or nuclear 
     materials courier''.
       (f) Definition for Purposes of Federal Employees' 
     Retirement System.--Section 8401 of title 5, United States 
     Code, is amended--
       (1) by striking ``and'' at the end of paragraph (31);
       (2) by striking the period at the end of paragraph (32) and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(33) `Nuclear materials courier' has the meaning given 
     that term in section 8331(27).''.
       (g) Immediate Retirement Under FERS.--Section 8412(d) of 
     title 5, United States Code, is amended by striking ``or 
     firefighter'' each place it appears in paragraphs (1) and (2) 
     and inserting ``firefighter, or nuclear materials courier''.
       (h) Computation of Basic Annuity Under FERS.--Section 
     8415(g) of title 5, United States Code, is amended by 
     inserting ``nuclear materials courier,'' after 
     ``firefighter,''.
       (i) Deductions and Contributions Under FERS.--(1) Section 
     8422(a)(3) of title 5, United States Code, is amended by 
     adding after the item relating to a law enforcement officer, 
     firefighter, member of the Capitol Police, or air traffic 
     controller the following new item:

 
 
 
``Nuclear materials courier...  7.........  January 1, 1987 to the day
                                             before the date of
                                             enactment of the Strom
                                             Thurmond National Defense
                                             Authorization Act for
                                             Fiscal Year 1999.
                                7.5.......  The date of enactment of the
                                             Strom Thurmond National
                                             Defense Authorization Act
                                             for Fiscal Year 1999 to
                                             December 31, 1998.
                                7.75......  January 1, 1999 to December
                                             31, 1999.
                                7.9.......  January 1, 2000 to December
                                             31, 2000.
                                8.........  January 1, 2001 to December
                                             31, 2001.
                                7.5.......  After December 31, 2002.''.
 

       (2) Contributions under subsections (a) and (b) of section 
     8423 of title 5, United States Code, shall not be reduced as 
     a result of that portion of the amendment made by paragraph 
     (1) requiring employee deductions at a rate in excess of 7.5 
     percent for the period beginning on January 1, 1999, and 
     ending on December 31, 2002.

[[Page H8192]]

       (j) Agency Contributions Under FERS.--Paragraphs (1)(B)(i) 
     and (3)(A) of section 8423(a) of title 5, United States Code, 
     are each amended by inserting ``nuclear materials couriers,'' 
     after ``firefighters,''.
       (k) Mandatory Separation Under FERS.--Section 8425(b) of 
     title 5, United States Code, is amended by inserting ``or 
     nuclear materials courier'' after ``law enforcement officer'' 
     both places it appears in the second sentence.
       (l) Payments.--(1) The Department of Energy shall pay into 
     the Civil Service Retirement and Disability Fund an amount 
     determined by the Director of the Office of Personnel 
     Management to be necessary to reimburse the Fund for any 
     estimated increase in the unfunded liability of the Fund 
     resulting from the amendments related to the Civil Service 
     Retirement System under this section, and for any estimated 
     increase in the supplemental liability of the Fund resulting 
     from the amendments related to the Federal Employees 
     Retirement System under this section.
       (2) The Department shall pay the amount so determined in 
     five equal annual installments with interest computed at the 
     rate used in the most recent valuation of the Federal 
     Employees Retirement System.
       (3) The Department shall make payments under this 
     subsection from amounts available for weapons activities of 
     the Department.
       (m) Applicability.--Subsections (b) through (l) shall apply 
     only to an individual who is employed as a nuclear materials 
     courier, as defined by section 8331(27) or 8401(33) of title 
     5, United States Code (as amended by this section), after the 
     later of--
       (1) September 30, 1998; or
       (2) the date of the enactment of this Act.
       (n) Effective Dates.--(1) Except as provided in paragraph 
     (2), the amendments made by this section shall take effect at 
     the beginning of the first pay period that begins after the 
     later of--
       (A) October 1, 1998; or
       (B) the date of the enactment of this Act.
       (2)(A) The amendments made by subsection (a) shall take 
     effect on the date of the enactment of this Act.
       (B) The amendments made by subsections (d) and (k) shall 
     take effect one year after the date of the enactment of this 
     Act.

     SEC. 3155. INCREASE IN MAXIMUM RATE OF PAY FOR SCIENTIFIC, 
                   ENGINEERING, AND TECHNICAL PERSONNEL 
                   RESPONSIBLE FOR SAFETY AT DEFENSE NUCLEAR 
                   FACILITIES.

       Section 3161(a)(2) of the National Defense Authorization 
     Act for Fiscal Year 1995 (Public Law 103-337; 42 U.S.C. 7231 
     note) is amended by striking out ``level IV of the Executive 
     Schedule under section 5315'' and inserting in lieu thereof 
     ``level III of the Executive Schedule under section 5314''.

     SEC. 3156. EXTENSION OF AUTHORITY OF DEPARTMENT OF ENERGY TO 
                   PAY VOLUNTARY SEPARATION INCENTIVE PAYMENTS.

       (a) Extension.--Notwithstanding subsection (c)(2)(D) of 
     section 663 of the Treasury, Postal Service, and General 
     Government Appropriations Act, 1997 (Public Law 104-208; 110 
     Stat. 3009-383; 5 U.S.C. 5597 note), the Department of Energy 
     may pay voluntary separation incentive payments to qualifying 
     employees who voluntarily separate (whether by retirement or 
     resignation) before January 1, 2001.
       (b) Exercise of Authority.--The Department shall pay 
     voluntary separation incentive payments under subsection (a) 
     in accordance with the provisions of such section 663.

     SEC. 3157. REPEAL OF FISCAL YEAR 1998 STATEMENT OF POLICY ON 
                   STOCKPILE STEWARDSHIP PROGRAM.

       Section 3156 of the National Defense Authorization Act for 
     Fiscal Year 1998 (Public Law 105-85; 111 Stat. 2045; 42 
     U.S.C. 2121 note) is repealed.

     SEC. 3158. REPORT ON STOCKPILE STEWARDSHIP CRITERIA.

       (a) Requirement for Criteria.--The Secretary of Energy 
     shall develop clear and specific criteria for judging whether 
     the science-based tools being used by the Department of 
     Energy for determining the safety and reliability of the 
     nuclear weapons stockpile are performing in a manner that 
     will provide an adequate degree of certainty that the 
     stockpile is safe and reliable.
       (b) Coordination With Secretary of Defense.--The Secretary 
     of Energy, in developing the criteria required by subsection 
     (a), shall coordinate with the Secretary of Defense.
       (c) Report.--Not later than March 1, 2000, the Secretary of 
     Energy 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 efforts by the Department of 
     Energy to develop the criteria required by subsection (a). 
     The report shall include--
       (1) a description of the information needed to determine 
     that the nuclear weapons stockpile is safe and reliable and 
     the relationship of the science-based tools to the collection 
     of that information; and
       (2) a description of the criteria required by subsection 
     (a) to the extent they have been developed as of the date of 
     the submission of the report.

     SEC. 3159. PANEL TO ASSESS THE RELIABILITY, SAFETY, AND 
                   SECURITY OF THE UNITED STATES NUCLEAR 
                   STOCKPILE.

       (a) Requirement for Panel.--The Secretary of Defense, in 
     consultation with the Secretary of Energy, shall enter into a 
     contract with a federally funded research and development 
     center to establish a panel for the assessment of the 
     certification process for the reliability, safety, and 
     security of the United States nuclear stockpile.
       (b) Composition and Administration of Panel.--(1) The panel 
     shall consist of private citizens of the United States with 
     knowledge and expertise in the technical aspects of design, 
     manufacture, and maintenance of nuclear weapons.
       (2) The federally funded research and development center 
     shall be responsible for establishing appropriate procedures 
     for the panel, including selection of a panel chairman.
       (c) Duties of Panel.--Each year the panel shall review and 
     assess the following:
       (1) The annual certification process, including the 
     conclusions and recommendations resulting from the process, 
     for the safety, security, and reliability of the nuclear 
     weapons stockpile of the United States, as carried out by the 
     directors of the national weapons laboratories.
       (2) The long-term adequacy of the process of certifying the 
     safety, security, and reliability of the nuclear weapons 
     stockpile of the United States.
       (3) The adequacy of the criteria established by the 
     Secretary of Energy pursuant to section 3158 for achieving 
     the purposes for which those criteria are established.
       (d) Report.--Not later than October 1 of each year, 
     beginning with 1999, the panel shall submit to the Committee 
     on Armed Services of the Senate and the Committee on National 
     Security of the House of Representatives a report setting 
     forth its findings and conclusions resulting from the review 
     and assessment carried out for the year covered by the 
     report. The report shall be submitted in classified and 
     unclassified form.
       (e) Cooperation of Other Agencies.--(1) The panel may 
     secure directly from the Department of Energy, the Department 
     of Defense, or any of the national weapons laboratories or 
     plants or any other Federal department or agency information 
     that the panel considers necessary to carry out its duties.
       (2) For carrying out its duties, the panel shall be 
     provided full and timely cooperation by the Secretary of 
     Energy, the Secretary of Defense, the Commander of United 
     States Strategic Command, the Directors of the Los Alamos 
     National Laboratory, the Lawrence Livermore National 
     Laboratory, the Sandia National Laboratories, the Savannah 
     River Site, the Y-12 Plant, the Pantex Facility, and the 
     Kansas City Plant, and any other official of the United 
     States that the chairman of the panel determines as having 
     information described in paragraph (1).
       (3) The Secretary of Energy and the Secretary of Defense 
     shall each designate at least one officer or employee of the 
     Department of Energy and the Department of Defense, 
     respectively, to serve as a liaison officer between the 
     department and the panel.
       (f) Funding.--The Secretary of Defense and the Secretary of 
     Energy shall each contribute 50 percent of the amount of 
     funds that are necessary for the panel to carry out its 
     duties. Funds available for the Department of Energy for 
     atomic energy defense activities shall be available for the 
     Department of Energy contribution.
       (g) Termination of Panel.--The panel shall terminate three 
     years after the date of the appointment of the member 
     designated as chairman of the panel.
       (h) Initial Implementation.--The Secretary of Defense shall 
     enter into the contract required under subsection (a) not 
     later than 60 days after the date of the enactment of this 
     Act. The panel shall convene its first meeting not later than 
     30 days after the date as of which all members of the panel 
     have been appointed.

     SEC. 3160. INTERNATIONAL COOPERATIVE INFORMATION EXCHANGE.

       (a) Findings.--Congress finds the following:
       (1) Currently in the post-cold war world, there are new 
     opportunities to facilitate international political and 
     scientific cooperation on cost-effective, advanced, and 
     innovative nuclear management technologies.
       (2) There is increasing public interest in monitoring and 
     remediation of nuclear waste.
       (3) It is in the best interest of the United States to 
     explore and develop options with the international community 
     to facilitate the exchange of evolving advanced nuclear 
     wastes technologies.
       (b) Sense of Congress.--It is the sense of Congress that 
     the Secretary of Energy, in consultation with the Secretary 
     of State, the Secretary of Defense, the Administrator of the 
     Environmental Protection Agency, and other officials as 
     appropriate, should prepare and 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 following:
       (1) An assessment of whether the United States should 
     encourage the establishment of an international project to 
     facilitate the international exchange of information 
     (including costs data) relating to nuclear waste 
     technologies, including technologies for solid and liquid 
     radioactive wastes and contaminated soils and sediments.
       (2) An assessment of whether such a project could be funded 
     privately through industry, public interest, and scientific 
     organizations and administered by an international 
     nongovernmental organization, with operations in the United 
     States, Russia, and other countries that have an interest in 
     developing such technologies.
       (3) A description of the Federal programs that facilitate 
     the exchange of such information and of any added benefit of 
     consolidating such programs into such a project.
       (4) Recommendations for any legislation that the Secretary 
     of Energy believes would be required to enable such a project 
     to be undertaken.

     SEC. 3161. PROTECTION AGAINST INADVERTENT RELEASE OF 
                   RESTRICTED DATA AND FORMERLY RESTRICTED DATA.

       (a) Plan for Protection Against Release.--The Secretary of 
     Energy and the Archivist of the United States shall, after 
     consultation with the members of the National Security 
     Council and in consultation with the Secretary of Defense and 
     the heads of other appropriate Federal agencies, develop a 
     plan to prevent the

[[Page H8193]]

     inadvertent release of records containing Restricted Data or 
     Formerly Restricted Data during the automatic 
     declassification of records under Executive Order 12958 (50 
     U.S.C. 435 note).
       (b) Plan Elements.--The plan under subsection (a) shall 
     include the following:
       (1) The actions to be taken in order to ensure that records 
     subject to Executive Order 12958 are reviewed on a page-by-
     page basis for Restricted Data and Formerly Restricted Data 
     unless they have been determined to be highly unlikely to 
     contain Restricted Data or Formerly Restricted Data.
       (2) The criteria and process by which documents are 
     determined to be highly unlikely to contain Restricted Data 
     or Formerly Restricted Data.
       (3) The actions to be taken in order to ensure proper 
     training, supervision, and evaluation of personnel engaged in 
     declassification under that Executive Order so that such 
     personnel recognize Restricted Data and Formerly Restricted 
     Data.
       (4) The extent to which automated declassification 
     technologies will be used under that Executive Order to 
     protect Restricted Data and Formerly Restricted Data from 
     inadvertent release.
       (5) Procedures for periodic review and evaluation by the 
     Secretary of Energy, in consultation with the Director of the 
     Information Security Oversight Office of the National 
     Archives and Records Administration, of compliance by Federal 
     agencies with the plan.
       (6) Procedures for resolving disagreements among Federal 
     agencies regarding declassification procedures and decisions 
     under the plan.
       (7) The funding, personnel, and other resources required to 
     carry out the plan.
       (8) A timetable for implementation of the plan.
       (c) Limitation on Declassification of Certain Records.--(1) 
     Effective on the date of the enactment of this Act and except 
     as provided in paragraph (3), a record referred to in 
     subsection (a) may not be declassified unless the agency 
     having custody of the record reviews the record on a page-by-
     page basis to ensure that the record does not contain 
     Restricted Data or Formerly Restricted Data.
       (2) Any record determined as a result of a review under 
     paragraph (1) to contain Restricted Data or Formerly 
     Restricted Data may not be declassified until the Secretary 
     of Energy, in conjunction with the head of the agency having 
     custody of the record, determines that the document is 
     suitable for declassification.
       (3) After the date occurring 60 days after the submission 
     of the plan required by subsection (a) to the committees 
     referred to in paragraphs (1) and (2) of subsection (d), the 
     requirement under paragraph (1) to review a record on a page-
     by-page basis shall not apply in the case of a record 
     determined, under the actions specified in the plan pursuant 
     to subsection (b)(1), to be a record that is highly unlikely 
     to contain Restricted Data or Formerly Restricted Data.
       (d) Submission of Plan.--The Secretary of Energy shall 
     submit the plan required under subsection (a) to the 
     following:
       (1) The Committee on Armed Services of the Senate.
       (2) The Committee on National Security of the House of 
     Representatives.
       (3) The Assistant to the President for National Security 
     Affairs.
       (e) Submission of Reviews.--The Secretary of Energy shall, 
     on a periodic basis, submit a summary of the results of the 
     periodic reviews and evaluations specified in the plan 
     pursuant to subsection (b)(4) to the committees and Assistant 
     to the President specified in subsection (d).
       (f) Report and Notification Regarding Inadvertent 
     Releases.--(1) The Secretary of Energy shall submit to the 
     committees and Assistant to the President specified in 
     subsection (d) a report on inadvertent releases of Restricted 
     Data or Formerly Restricted Data under Executive Order 12958 
     that occurred before the date of the enactment of this Act.
       (2) Not later than 30 days after any such inadvertent 
     release occurring after the date of the enactment of this 
     Act, the Secretary of Energy shall notify the committees and 
     Assistant to the President specified in subsection (d) of 
     such releases.
       (g) Definition.--In this section, the term ``Restricted 
     Data'' has the meaning given that term in section 11 y. of 
     the Atomic Energy Act of 1954 (42 U.S.C. 2014(y)).

     SEC. 3162. SENSE OF CONGRESS REGARDING TREATMENT OF FORMERLY 
                   UTILIZED SITES REMEDIAL ACTION PROGRAM UNDER A 
                   NONDEFENSE DISCRETIONARY BUDGET FUNCTION.

       It is the sense of Congress that the Office of Management 
     and Budget should, beginning with fiscal year 2000, transfer 
     the Formerly Utilized Sites Remedial Action Program from the 
     National Defense budget function (budget function 050) to a 
     nondefense discretionary budget function.

     SEC. 3163. REPORTS RELATING TO TRITIUM PRODUCTION.

       (a) Report on Tritium Production Technology Options.--(1) 
     The Secretary of Defense, in consultation with the Secretary 
     of Energy, shall establish a task force of the Defense 
     Science Board to examine tritium production technology 
     options.
       (2) The task force shall examine the following issues:
       (A) The risk associated with the design, construction, 
     operation, and cost of each option for tritium production 
     under consideration.
       (B) The implications for nuclear weapons proliferation of 
     each such option.
       (C) The extent to which each such option contributes to the 
     capability of the Government to reliably meet the national 
     defense requirements of the United States.
       (D) Any other factors that the Secretary of Defense or the 
     Secretary of Energy considers appropriate.
       (3) The task force shall submit to the Secretary of Defense 
     and the Secretary of Energy a report on the results of its 
     examination. The Secretaries shall submit the report to 
     Congress not later than June 30, 1999.
       (b) Report on Test Program for Tritium Production at Watts 
     Bar.--(1) The Secretary of Energy shall submit to the 
     congressional defense committees a report on the results of 
     the test program at the Watts Bar Nuclear Station, Tennessee, 
     after the test program is completed and the results of the 
     program are evaluated. The report shall include--
       (A) data on the performance of the test rods, including any 
     leakage of tritium from the test rods;
       (B) the amount of tritium produced during the test;
       (C) the performance of the reactor during the test; and
       (D) any other technical findings resulting from the test.
       (2) The Secretary of Energy shall submit to the 
     congressional defense committees an interim report on the 
     test program not later than 60 days after the test rods are 
     removed from the Watts Bar reactor.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

     SEC. 3201. AUTHORIZATION.

       There are authorized to be appropriated for fiscal year 
     1999, $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.
Sec. 3302. Authorized uses of stockpile funds.
Sec. 3303. Authority to dispose of certain materials in National 
              Defense Stockpile.
Sec. 3304. Use of stockpile funds for certain environmental 
              remediation, restoration, waste management, and 
              compliance activities.

     SEC. 3301. DEFINITIONS.

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

     SEC. 3302. AUTHORIZED USES OF STOCKPILE FUNDS.

       (a) Obligation of Stockpile Funds.--During fiscal year 
     1999, the National Defense Stockpile Manager may obligate up 
     to $83,000,000 of the funds in the National Defense Stockpile 
     Transaction Fund for the authorized uses of such funds under 
     section 9(b)(2) of the Strategic and Critical Materials Stock 
     Piling Act (50 U.S.C. 98h(b)(2)), including the disposal of 
     hazardous materials that are environmentally sensitive.
       (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 on which 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 the amount of--
       (1) $105,000,000 by the end of fiscal year 1999;
       (2) $460,000,000 by the end of fiscal year 2002;
       (3) $555,000,000 by the end of fiscal year 2003; and
       (4) $590,000,000 by the end of fiscal year 2005.
       (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
------------------------------------------------------------------------
Bauxite Refractory........................  29,000 long calcined ton
Beryllium Metal...........................  100 short tons
Chromite Chemical.........................  34,000 short dry tons
Chromite Refractory.......................  159,000 short dry tons
Chromium Ferroalloy.......................  125,000 short tons
Columbium Carbide Powder..................  21,372 pounds of contained
                                             Columbium
Columbium Concentrates....................  1,733,454 pounds of
                                             contained Columbium
Columbium Ferro...........................  249,396 pounds of contained
                                             Columbium
Columbium Metal--Ingots...................  161,123 pounds of contained
                                             Columbium
Diamond, Stones...........................  3,000,000 carats
Germanium Metal...........................  28,198 kilograms
Graphite Natural Ceylon Lump..............  5,492 short tons
Indium....................................  14,248 troy ounces
Mica Muscovite Block......................  301,000 pounds
Mica Phlogopite Block.....................  130,745 pounds
Platinum..................................  439,887 troy ounces
Platinum--Iridium.........................  4,450 troy ounces
Platinum--Palladium.......................  750,000 troy ounces

[[Page H8194]]

 
Tantalum Carbide Powder...................  22,688 pounds of contained
                                             Tantalum
Tantalum Metal Ingots.....................  125,000 pounds of contained
                                             Tantalum
Tantalum Metal Powder.....................  125,000 pounds of contained
                                             Tantalum
Tantalum Minerals.........................  1,751,364 pounds contained
                                             of Tantalum
Tantalum Oxide............................  122,730 pounds contained of
                                             Tantalum
Tungsten Carbide Powder...................  2,032,896 pounds of
                                             contained Tungsten
Tungsten Ferro............................  2,024,143 pounds of
                                             contained Tungsten
Tungsten Metal Powder.....................  1,898,009 pounds of
                                             contained Tungsten
Tungsten Ores & Concentrates..............  76,358,235 pounds of
                                             contained Tungsten
------------------------------------------------------------------------

       (c) Minimization of Disruption and Loss.--The President may 
     not dispose of materials under subsection (a) to the extent 
     that the disposal will result in--
       (1) undue disruption of the usual markets of producers, 
     processors, and consumers of the materials proposed for 
     disposal; or
       (2) avoidable loss to the United States.
       (d) Treatment of Receipts.--Notwithstanding section 9 of 
     the Strategic and Critical Materials Stock Piling Act (50 
     U.S.C. 98h), funds received as a result of the disposal of 
     materials authorized for disposal under subsection (a) shall 
     be treated as follows:
       (1) The following amounts shall be transferred to the 
     Secretary of Health and Human Services, to be credited in the 
     manner determined by the Secretary to the Federal Hospital 
     Insurance Trust Fund and the Federal Supplementary Medical 
     Insurance Trust Fund:
       (A) $3,000,000 during fiscal year 1999.
       (B) $22,000,000 during fiscal year 2000.
       (C) $28,000,000 during fiscal year 2001.
       (D) $31,000,000 during fiscal year 2002.
       (E) $8,000,000 during fiscal year 2003.
       (2) The balance of the funds received shall be deposited 
     into the general fund of the Treasury.
       (e) 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.
       (f) Authorization of Sale.--The authority provided by this 
     section to dispose of materials contained in the National 
     Defense Stockpile so as to result in receipts of $100,000,000 
     of the amount specified for fiscal year 1999 in subsection 
     (a) by the end of that fiscal year shall be effective only to 
     the extent provided in advance in appropriation Acts.

     SEC. 3304. USE OF STOCKPILE FUNDS FOR CERTAIN ENVIRONMENTAL 
                   REMEDIATION, RESTORATION, WASTE MANAGEMENT, AND 
                   COMPLIANCE ACTIVITIES.

       Section 9(b)(2) of the Strategic and Critical Materials 
     Stock Piling Act (50 U.S.C. 98h(b)(2)) is amended--
       (1) by redesignating subparagraphs (J) and (K) as 
     subparagraphs (K) and (L), respectively; and
       (2) by inserting after subparagraph (I) the following new 
     subparagraph (J):
       ``(J) Performance of environmental remediation, 
     restoration, waste management, or compliance activities at 
     locations of the stockpile that are required under a Federal 
     law or are undertaken by the Government under an 
     administrative decision or negotiated agreement.''.

                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Definitions.
Sec. 3402. Authorization of appropriations.
Sec. 3403. Disposal of Naval Petroleum Reserve Numbered 2.
Sec. 3404. Disposal of Naval Petroleum Reserve Numbered 3.
Sec. 3405. Disposal of Oil Shale Reserve Numbered 2.
Sec. 3406. Administration.

     SEC. 3401. DEFINITIONS.

       In this title:
       (1) The term ``naval petroleum reserves'' has the meaning 
     given the term in section 7420(2) of title 10, United States 
     Code.
       (2) The term ``Naval Petroleum Reserve Numbered 2'' means 
     the naval petroleum reserve, commonly referred to as the 
     Buena Vista unit, that is located in Kern County, California, 
     and was established by Executive order of the President, 
     dated December 13, 1912.
       (3) The term ``Naval Petroleum Reserve Numbered 3'' means 
     the naval petroleum reserve, commonly referred to as the 
     Teapot Dome unit, that is located in the State of Wyoming and 
     was established by Executive order of the President, dated 
     April 30, 1915.
       (4) The term ``Oil Shale Reserve Numbered 2'' means the 
     naval petroleum reserve that is located in the State of Utah 
     and was established by Executive order of the President, 
     dated December 6, 1916.
       (5) The term ``antitrust laws'' means has the meaning given 
     the term in section 1(a) of the Clayton Act (15 U.S.C. 
     12(a)), except that the term also includes--
       (A) the Act of June 19, 1936 (15 U.S.C. 13 et seq.; 
     commonly known as the Robinson-Patman Act); and
       (B) section 5 of the Federal Trade Commission Act (15 
     U.S.C. 45), to the extent that such section applies to unfair 
     methods of competition.
       (6) The term ``petroleum'' has the meaning given the term 
     in section 7420(3) of title 10, United States Code.

     SEC. 3402. AUTHORIZATION OF APPROPRIATIONS.

       (a) Amount.--There are hereby authorized to be appropriated 
     to the Secretary of Energy $22,500,000 for fiscal year 1999 
     for the purpose of carrying out--
       (1) activities under chapter 641 of title 10, United States 
     Code, relating to the naval petroleum reserves;
       (2) closeout activities at Naval Petroleum Reserve Numbered 
     1 upon the sale of that reserve under subtitle B of title 
     XXXIV of the National Defense Authorization Act for fiscal 
     year 1996 (Public Law 104-106; 10 U.S.C. 7420 note); and
       (3) activities under this title relating to the disposition 
     of Naval Petroleum Reserve Numbered 2, Naval Petroleum 
     Reserve Numbered 3, and Oil Shale Reserve Numbered 2.
       (b) Period of Availability.--Funds appropriated pursuant to 
     the authorization of appropriations in subsection (a) shall 
     remain available until expended.

     SEC. 3403. DISPOSAL OF NAVAL PETROLEUM RESERVE NUMBERED 2.

       (a) Disposal of Ford City Lots Authorized.--(1) Subject to 
     section 3406, the Secretary of Energy may dispose of the 
     portion of Naval Petroleum Reserve Numbered 2 that is located 
     within the town lots in Ford City, California, which are 
     identified as ``Drill Sites Numbered 3A, 4, 6, 9A, 20, 22, 
     24, and 26'' and described in the document entitled ``Ford 
     City Drill Site Locations--NPR-2,'' and accompanying maps on 
     file in the office of the Deputy Assistant Secretary for 
     Naval Petroleum and Oil Shale Reserves of the Department of 
     Energy.
       (2) The Secretary of Energy shall carry out the disposal 
     authorized by paragraph (1) by competitive sale or lease 
     consistent with commercial practices, by transfer to another 
     Federal agency or a public or private entity, or by such 
     other means as the Secretary considers appropriate. Any 
     competitive sale or lease under this subsection shall provide 
     for the disposal of all right, title, and interest of the 
     United States in the property to be conveyed. The Secretary 
     of Energy may use the authority provided by the Act of June 
     14, 1926 (43 U.S.C. 869 et seq.; commonly known as the 
     Recreation and Public Purposes Act), in the same manner and 
     to the same extent as the Secretary of the Interior, to 
     dispose of the portion of Naval Petroleum Reserve Numbered 2 
     described in paragraph (1).
       (3) Section 2696(a) of title 10, United States Code, 
     regarding the screening of real property for further Federal 
     use before disposal, shall apply to the disposal authorized 
     by paragraph (1).
       (b) Transfer of Administrative Jurisdiction Authorized.--
     (1) The Secretary of Energy shall continue to administer 
     Naval Petroleum Reserve Numbered 2 (other than the portion of 
     the reserve authorized for disposal under subsection (a)) in 
     accordance with chapter 641 of title 10, United States Code, 
     until such time as the Secretary makes a determination to 
     abandon oil and gas operations in Naval Petroleum Reserve 
     Numbered 2 in accordance with commercial operating practices.
       (2) After oil and gas operations are abandoned in Naval 
     Petroleum Reserve Numbered 2, the Secretary of Energy may 
     transfer to the Secretary of the Interior administrative 
     jurisdiction and control over all public domain lands 
     included within Naval Petroleum Reserve Numbered 2 (other 
     than the portion of the reserve authorized for disposal under 
     subsection (a)) for management in accordance with the general 
     land laws.
       (c) Relationship to Antitrust Laws.--This section does not 
     modify, impair, or supersede the operation of the antitrust 
     laws.

     SEC. 3404. DISPOSAL OF NAVAL PETROLEUM RESERVE NUMBERED 3.

       (a) Administration Pending Termination of Operations.--The 
     Secretary of Energy shall continue to administer Naval 
     Petroleum Reserve Numbered 3 in accordance with chapter 641 
     of title 10, United States Code, until such time as the 
     Secretary makes a determination to abandon oil and gas 
     operations in Naval Petroleum Reserve Numbered 3 in 
     accordance with commercial operating practices.
       (b) Disposal Authorized.--After oil and gas operations are 
     abandoned in Naval Petroleum Reserve Numbered 3, the 
     Secretary of Energy may dispose of the reserve as provided in 
     this subsection. Subject to section 3406, the Secretary shall 
     carry out any such disposal of the reserve by sale or lease 
     or by transfer to another Federal agency. Any sale or lease 
     shall provide for the disposal of all right, title, and 
     interest of the United States in the property to be conveyed 
     and shall be conducted in accordance with competitive 
     procedures consistent with commercial practices, as 
     established by the Secretary.
       (c) Relationship to Antitrust Laws.--This section does not 
     modify, impair, or supersede the operation of the antitrust 
     laws.

     SEC. 3405. DISPOSAL OF OIL SHALE RESERVE NUMBERED 2.

       (a) Transfer of Administrative Jurisdiction Authorized.--
     Subject to section 3406, the Secretary of Energy may transfer 
     to the Secretary of the Interior administrative jurisdiction 
     and control over all public domain lands included within Oil 
     Shale Reserve Numbered 2 for management in accordance with 
     the general land laws.
       (b) Relationship to Indian Reservation.--The transfer of 
     administrative jurisdiction under this section does not 
     affect any interest, right, or obligation respecting the 
     Uintah and Ouray Indian Reservation located in Oil Shale 
     Reserve Numbered 2.

     SEC. 3406. ADMINISTRATION.

       (a) Protection of Existing Rights.--At the discretion of 
     the Secretary of Energy, the disposal of property under this 
     title shall be subject to any contract related to the United 
     States ownership interest in the property in effect at

[[Page H8195]]

     the time of disposal, including any lease agreement 
     pertaining to the United States interest in Naval Petroleum 
     Reserve Numbered 2.
       (b) Deposit of Receipts.--Notwithstanding any other law, 
     all monies received by the United States from the disposal of 
     property under this title, including any monies received from 
     a lease entered into under this title, shall be deposited in 
     the general fund of the Treasury.
       (c) Treatment of Royalties.--Any petroleum accruing to the 
     United States as royalty from any lease of lands transferred 
     under this title shall be delivered to the United States, or 
     shall be paid for in money, as the Secretary of the Interior 
     may elect.
       (d) Elements of Lease.--A lease under this title may 
     provide for the exploration for, and development and 
     production of, petroleum, other than petroleum in the form of 
     oil shale.
       (e) Waiver of Requirements Regarding Consultation and 
     Approval.--Section 7431 of title 10, United States Code, 
     shall not apply to the disposal of property under this title.

                  TITLE XXXV--PANAMA CANAL COMMISSION

Sec. 3501. Short title; references to Panama Canal Act of 1979.
Sec. 3502. Authorization of expenditures.
Sec. 3503. Purchase of vehicles.
Sec. 3504. Expenditures only in accordance with treaties.
Sec. 3505. Donations to the Commission.
Sec. 3506. Agreements for United States to provide post-transfer 
              administrative services for certain employee benefits.
Sec. 3507. Sunset of United States overseas benefits just before 
              transfer.
Sec. 3508. Central examining office.
Sec. 3509. Liability for vessel accidents.
Sec. 3510. Panama Canal Board of Contract Appeals.
Sec. 3511. Restatement of requirement that Secretary of Defense 
              designee on Panama Canal Commission supervisory board be 
              a current officer of the Department of Defense.
Sec. 3512. Technical amendments.

     SEC. 3501. SHORT TITLE; REFERENCES TO PANAMA CANAL ACT OF 
                   1979.

       (a) Short Title.--This title may be cited as the ``Panama 
     Canal Commission Authorization Act for Fiscal Year 1999''.
       (b) References to Panama Canal Act of 1979.--Except as 
     otherwise expressly provided, whenever in this title 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. 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 1999.
       (b) Limitations.--For fiscal year 1999, the Panama Canal 
     Commission may expend from funds in the Panama Canal 
     Revolving Fund not more than $100,000 for official reception 
     and representation expenses, of which--
       (1) not more than $28,000 may be used for official 
     reception and representation expenses of the Supervisory 
     Board of the Commission;
       (2) not more than $14,000 may be used for official 
     reception and representation expenses of the Secretary of the 
     Commission; and
       (3) not more than $58,000 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 $23,000 per vehicle.

     SEC. 3504. EXPENDITURES ONLY IN ACCORDANCE WITH TREATIES.

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

     SEC. 3505. DONATIONS TO THE COMMISSION.

       Section 1102b (22 U.S.C. 3612b) is amended by adding at the 
     end the following new subsection:
       ``(f)(1) The Commission may seek and accept donations of 
     funds, property, and services from individuals, foundations, 
     corporations, and other private and public entities for the 
     purpose of carrying out its promotional activities.
       ``(2) The Commission shall establish written guidelines 
     setting forth the criteria to be used in determining whether 
     the acceptance of funds, property, or services authorized by 
     paragraph (1) would reflect unfavorably upon the ability of 
     the Commission (or any employee of the Commission) to carry 
     out its responsibilities or official duties in a fair and 
     objective manner or would compromise the integrity or the 
     appearance of the integrity of its programs or of any 
     official in those programs.''.

     SEC. 3506. AGREEMENTS FOR UNITED STATES TO PROVIDE POST-
                   TRANSFER ADMINISTRATIVE SERVICES FOR CERTAIN 
                   EMPLOYEE BENEFITS.

       Section 1110 (22 U.S.C. 3620) is amended by adding at the 
     end the following new subsection:
       ``(c)(1) The Secretary of State may enter into one or more 
     agreements to provide for the United States to furnish 
     administrative services relating to the benefits described in 
     paragraph (2) after December 31, 1999, and to establish 
     appropriate procedures for providing advance funding for the 
     services.
       ``(2) The benefits referred to in paragraph (1) are the 
     following:
       ``(A) Pension, disability, and medical benefits provided by 
     the Panama Canal Commission pursuant to section 1245.
       ``(B) Compensation for work injuries covered by chapter 81 
     of title 5, United States Code.''.

     SEC. 3507. SUNSET OF UNITED STATES OVERSEAS BENEFITS JUST 
                   BEFORE TRANSFER.

       (a) Repeals.--Effective 11:59 p.m. (Eastern Standard Time), 
     December 30, 1999, the following provisions are repealed and 
     any right or condition of employment provided for in, or 
     arising from, those provisions is terminated: sections 1206 
     (22 U.S.C. 3646), 1207 (22 U.S.C. 3647), 1217(a) (22 U.S.C. 
     3657(a)), and 1224(11) (22 U.S.C. 3664(11)), subparagraphs 
     (A), (B), (F), (G), and (H) of section 1231(a)(2) (22 U.S.C. 
     3671(a)(2)) and section 1321(e) (22 U.S.C. 3731(e)).
       (b) Savings Provision for Basic Pay.--Notwithstanding 
     subsection (a), benefits based on basic pay, as listed in 
     paragraphs (1), (2), (3), (5), and (6) of section 1218 of the 
     Panama Canal Act of 1979, shall be paid as if sections 
     1217(a) and 1231(a)(2) (A) and (B) of that Act had been 
     repealed effective 12:00 noon, December 31, 1999. The 
     exception under the preceding sentence shall not apply to any 
     pay for hours of work performed on December 31, 1999.
       (c) Nonapplicability to Agencies in Panama Other Than 
     Panama Canal Commission.--Section 1212(b)(3) (22 U.S.C. 
     3652(b)(3)) is amended by striking out ``the Panama Canal 
     Transition Facilitation Act of 1997'' and inserting in lieu 
     thereof ``the Panama Canal Transition Facilitation Act of 
     1997 (subtitle B of title XXXV of Public Law 105-85; 110 
     Stat. 2062), or the Panama Canal Commission Authorization Act 
     for Fiscal Year 1999''.

     SEC. 3508. CENTRAL EXAMINING OFFICE.

       (a) Repeal.--Section 1223 (22 U.S.C. 3663) is repealed.
       (b) Clerical Amendment.--The table of contents in section 1 
     is amended by striking out the item relating to section 1223.

     SEC. 3509. LIABILITY FOR VESSEL ACCIDENTS.

       (a) Commission Liability Subject to Claimant Insurance.--
     (1) Section 1411(a) (22 U.S.C. 3771(a)) is amended by 
     inserting ``to section 1419(b) of this Act and'' after 
     ``Subject'' in the first sentence.
       (2) Section 1412 (22 U.S.C. 3772) is amended by striking 
     out ``The Commission'' in the first sentence and inserting in 
     lieu thereof ``Subject to section 1419(b) of this Act, the 
     Commission''.
       (3) Section 1416 (22 U.S.C. 3776) is amended by striking 
     out ``A claimant'' in the first sentence and inserting in 
     lieu thereof ``Subject to section 1419(b) of this Act, a 
     claimant''.
       (b) Authority to Require Claimants To Be Covered by 
     Insurance.--Section 1419 (22 U.S.C. 3779) is amended--
       (1) by inserting ``(a)'' before ``The Commission''; and
       (2) by adding at the end the following:
       ``(b)(1) The Commission may by regulation require as a 
     condition of transit through the Panama Canal or presence in 
     the Panama Canal or waters adjacent thereto that any 
     potential claimant under section 1411 or 1412 of this Act be 
     covered by insurance against the types of injuries described 
     in those sections. The amount of insurance so required shall 
     be specified in those regulations, but may not exceed 
     $1,000,000.
       ``(2) In a claim under section 1411 or 1412 of this Act for 
     which the Commission has required insurance under 
     this subsection, the Commission's liability shall be 
     limited to the amount of damages in excess of the amount 
     of insurance required by the Commission.
       ``(3) In regulations under this subsection, the Commission 
     may prohibit consideration or payment by it of claims 
     presented by or on behalf of an insurer or subrogee of a 
     claimant in a case for which the Commission has required 
     insurance under this subsection.''.

     SEC. 3510. PANAMA CANAL BOARD OF CONTRACT APPEALS.

       (a) Establishment and Pay of Board.--Section 3102(a) (22 
     U.S.C. 3862(a)) is amended--
       (1) in paragraph (1), by striking out ``shall'' in the 
     first sentence and inserting in lieu thereof ``may''; and
       (2) by adding at the end the following new paragraph:
       ``(3) Compensation for members of the Board of Contract 
     Appeals shall be established by the Commission's supervisory 
     board. The annual compensation established for members may 
     not exceed the rate of basic pay established for level IV of 
     the Executive Schedule under section 5315 of title 5, United 
     States Code. The compensation of a member may not be reduced 
     during the member's term of office from the level established 
     at the time of the appointment of the member.''.
       (b) Deadline for Commencement of Board.--Section 3102(e) 
     (22 U.S.C. 3862(e)) is amended by striking out ``, but not 
     later than January 1, 1999''.

     SEC. 3511. RESTATEMENT OF REQUIREMENT THAT SECRETARY OF 
                   DEFENSE DESIGNEE ON PANAMA CANAL COMMISSION 
                   SUPERVISORY BOARD BE A CURRENT OFFICER OF THE 
                   DEPARTMENT OF DEFENSE.

       (a) Authority.--Section 1102(a) (22 U.S.C. 3612(a)) is 
     amended--
       (1) by striking out the first sentence and inserting in 
     lieu thereof the following: ``The Commission shall be 
     supervised by a Board composed of nine members, one of whom 
     shall be an officer of the Department of Defense. The officer 
     of the Department of Defense who shall serve on the Board 
     shall be designated by the Secretary of Defense and may 
     continue to serve on the Board only while continuing to serve 
     as an officer of the Department of Defense.''; and
       (2) in the last sentence, by striking out ``Secretary of 
     Defense or a designee of the Secretary

[[Page H8196]]

     of Defense'' and inserting in lieu thereof ``the officer of 
     the Department of Defense designated by the Secretary of 
     Defense to be a member of the Board''.
       (b) Repeal of Superseded Provision.--Section 302 of Public 
     Law 105-18 (111 Stat. 168) is repealed.

     SEC. 3512. TECHNICAL AMENDMENTS.

       (a) Panama Canal Act of 1979.--The Panama Canal Act of 1979 
     is amended as follows:
       (1) Section 1202(c) (22 U.S.C. 3642(c)) is amended--
       (A) by striking out ``the day before the date of the 
     enactment of the Panama Canal Transition Facilitation Act of 
     1997'' and inserting in lieu thereof ``November 17, 1997,'';
       (B) by striking out ``on or after that date''; and
       (C) by striking out ``the day before the date of 
     enactment'' and inserting in lieu thereof ``that date''.
       (2) Section 1212(b)(3) (22 U.S.C. 3652(b)(3)) is amended by 
     inserting ``the'' after ``by the head of''.
       (3) Section 1313 (22 U.S.C. 3723) is amended by striking 
     out ``subsection (d)'' in each of subsections (a), (b), and 
     (d) and inserting in lieu thereof ``subsection (c)''.
       (4) Sections 1411(a) and 1412 (22 U.S.C. 3771(a), 3772) are 
     amended by striking out ``the date of the enactment of the 
     Panama Canal Transition Facilitation Act of 1997'' and 
     inserting in lieu thereof ``by November 18, 1998''.
       (5) Section 1416 (22 U.S.C. 3776) is amended by striking 
     out ``the date of the enactment of the Panama Canal 
     Transition Facilitation Act of 1997'' and inserting in lieu 
     thereof ``by May 17, 1998''.
       (b) Public Law 104-201.--Effective as of September 23, 
     1996, and as if included therein as enacted, section 
     3548(b)(3) of the Panama Canal Act Amendments of 1996 
     (subtitle B of title XXXV of Public Law 104-201; 110 Stat. 
     2869) is amended by striking out ``section'' in both items of 
     quoted matter and inserting in lieu thereof ``sections''.

                  TITLE XXXVI--MARITIME ADMINISTRATION

Sec. 3601. Authorization of appropriations for fiscal year 1999.
Sec. 3602. Authority to convey National Defense Reserve Fleet vessel.
Sec. 3603. Authority to convey certain National Defense Reserve Fleet 
              vessels.
Sec. 3604. Clearinghouse for maritime information.
Sec. 3605. Conveyance of NDRF vessel ex-USS LORAIN COUNTY.

     SEC. 3601. AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEAR 
                   1999.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1999, to be available without fiscal year limitation if 
     so provided in appropriations Act, for the use of the 
     Department of Transportation for the Maritime Administration 
     as follows:
       (1) For expenses necessary for operations and training 
     activities, $70,553,000.
       (2) For expenses under the loan guarantee program 
     authorized by title XI of the Merchant Marine Act, 1936 (46 
     U.S.C. App. 1271 et seq.), $20,000,000 of which--
       (A) $16,000,000 is for the cost (as defined in section 
     502(5) of the Federal Credit Reform Act of 1990 (2 U.S.C. 
     661a(5))) of loan guarantees under the program; and
       (B) $4,000,000 is for administrative expenses related to 
     loan guarantee commitments under the program.

     SEC. 3602. AUTHORITY TO CONVEY NATIONAL DEFENSE RESERVE FLEET 
                   VESSEL.

       (a) Authority To Convey.--The Secretary of Transportation 
     may convey all right, title, and interest of the United 
     States Government in and to the vessel M/V BAYAMON (United 
     States official number 530007) to a purchaser for use as a 
     self-propelled floating trade exposition to showcase United 
     States technology, industrial products, and services.
       (b) Terms of Conveyance.--
       (1) Delivery of vessel.--In carrying out subsection (a), 
     the Secretary shall deliver the vessel--
       (A) at the place where the vessel is located on the date of 
     conveyance;
       (B) in its condition on that date; and
       (C) at no cost to the United States Government.
       (2) Required conditions.--The Secretary may not convey a 
     vessel under this section unless--
       (A) competitive procedures are used for sales under this 
     section;
       (B) the vessel is sold for not less than the fair market 
     value of the vessel in the United States, as determined by 
     the Secretary of Transportation;
       (C) the recipient agrees that any repair, except for 
     emergency repairs, restoration, or reconstruction work for 
     the vessel will be performed in the United States;
       (D) the recipient agrees to hold the Government harmless 
     for any claims arising from exposure to hazardous material, 
     including asbestos and polychlorinated biphenyls, after the 
     conveyance of the vessel, except for claims arising before 
     the date of the conveyance or from use of the vessel by the 
     Government after that date; and
       (E) the recipient provides sufficient evidence to the 
     Secretary that it has adequate financial resources in the 
     form of cash, liquid assets, or a written loan commitment to 
     complete the reconstruction of the vessel.
       (3) Additional terms.--The Secretary may require such 
     additional terms in connection with the conveyance authorized 
     by this section as the Secretary considers appropriate.
       (c) Proceeds.--Any amounts received by the United States as 
     proceeds from the sale of the M/V BAYAMON shall be deposited 
     in the Vessel Operations Revolving Fund established by 
     section 801 of the Act of June 2, 1951 (65 Stat. 59; 46 
     U.S.C. App. 1241a) and shall be available and expended in 
     accordance with section 6(a) of the National Maritime 
     Heritage Act (16 U.S.C. App. 5405(a)).

     SEC. 3603. AUTHORITY TO CONVEY CERTAIN NATIONAL DEFENSE 
                   RESERVE FLEET VESSELS.

       (a) Authority To Convey.--The Secretary of Transportation 
     may convey all right, title, and interest of the United 
     States Government in and to the vessels BENJAMIN ISHERWOOD 
     (TAO-191) and HENRY ECKFORD (TAO-192) to a purchaser for the 
     limited purpose of reconstruction of those vessels for sale 
     or charter to a North Atlantic Treaty Organization country 
     for full use as an oiler.
       (b) Terms of Conveyance.--
       (1) Delivery of vessel.--In carrying out subsection (a), 
     the Secretary shall deliver the vessel--
       (A) at the place where the vessel is located on the date of 
     the conveyance;
       (B) in its condition on that date; and
       (C) at no cost to the United States Government.
       (2) Required conditions.--The Secretary may not convey a 
     vessel under this section unless--
       (A) competitive procedures are used for sales under this 
     section;
       (B) the vessel is sold for not less than the fair market 
     value of the vessel in the United States, as determined by 
     the Secretary of Transportation;
       (C) the recipient agrees that any repair, except for 
     emergency repairs, restoration, or reconstruction work for 
     the vessel will be performed in the United States;
       (D) the recipient agrees to hold the Government harmless 
     for any claims arising from defects in the vessel or from 
     exposure to hazardous material, including asbestos and 
     polychlorinated biphenyls, after the conveyance of the 
     vessel, except for claims arising before the date of the 
     conveyance or from use of the vessel by the Government after 
     that date;
       (E) the recipient provides sufficient evidence to the 
     Secretary that it has adequate financial resources in the 
     form of cash, liquid assets, or a written loan commitment to 
     complete the reconstruction of the vessel; and
       (F) with respect to the vessel, the recipient remains 
     subject to all laws and regulations governing the export of 
     military items, including the requirements administered by 
     the Department of State regarding export licenses and 
     certification of nontransfer end use.
       (3) Additional terms.--The Secretary may require such 
     additional terms in connection with a conveyance authorized 
     by this section as the Secretary considers appropriate.
       (c) Proceeds.--Any amounts received by the United States as 
     proceeds from the sale of a vessel under this section shall 
     be deposited in the Vessel Operations Revolving Fund 
     established by section 801 of the Act of June 2, 1951 (65 
     Stat. 59; 46 U.S.C. App. 1241a) and shall be available and 
     expended in accordance with section 6(a) of the National 
     Maritime Heritage Act (16 U.S.C. App. 5405(a)).

     SEC. 3604. CLEARINGHOUSE FOR MARITIME INFORMATION.

       Of the amount authorized to be appropriated pursuant to 
     section 3601(1) for operations of the Maritime 
     Administration, $75,000 may be available for the 
     establishment at a State Maritime Academy of a clearinghouse 
     for maritime information that makes that information publicly 
     available, including by use of the Internet.

     SEC. 3605. CONVEYANCE OF NDRF VESSEL EX-USS LORAIN COUNTY.

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

 TITLE XXXVII--INCREASED MONITORING OF PRODUCTS MADE WITH FORCED LABOR

Sec. 3701. Authorization for additional customs personnel to monitor 
              the importation of products made with forced labor.

[[Page H8197]]

Sec. 3702. Reporting requirement on forced labor products destined for 
              the United States market.
Sec. 3703. Renegotiating memoranda of understanding on forced labor.

     SEC. 3701. AUTHORIZATION FOR ADDITIONAL CUSTOMS PERSONNEL TO 
                   MONITOR THE IMPORTATION OF PRODUCTS MADE WITH 
                   FORCED LABOR.

       There are authorized to be appropriated for monitoring by 
     the United States Customs Service of the importation into the 
     United States of products made with forced labor, the 
     importation of which violates section 307 of the Tariff Act 
     of 1930 or section 1761 of title 18, United States Code, 
     $2,000,000 for fiscal year 1999.

     SEC. 3702. REPORTING REQUIREMENT ON FORCED LABOR PRODUCTS 
                   DESTINED FOR THE UNITED STATES MARKET.

       (a) Report to Congress.--Not later than one year after the 
     date of the enactment of this Act, the Commissioner of 
     Customs shall prepare and transmit to the Congress a report 
     on products made with forced labor that are destined for the 
     United States market.
       (b) Contents of Report.--The report under subsection (a) 
     shall include information concerning the following:
       (1) The extent of the use of forced labor in manufacturing 
     products destined for the United States market.
       (2) The volume of products made with forced labor, destined 
     for the United States market, that is in violation of section 
     307 of the Tariff Act of 1930 or section 1761 of the title 
     18, United States Code, and is seized by the United States 
     Customs Service.
       (3) The progress of the United States Customs Service in 
     identifying and interdicting products made with forced labor 
     that are destined for the United States market.

     SEC. 3703. RENEGOTIATING MEMORANDA OF UNDERSTANDING ON FORCED 
                   LABOR.

       It is the sense of the Congress that the President should 
     determine whether any country with which the United States 
     has a memorandum of understanding with respect to reciprocal 
     trade which involves goods made with forced labor is 
     frustrating implementation of the memorandum. Should an 
     affirmative determination be made, the President should 
     immediately commence negotiations to replace the current 
     memorandum of understanding with one providing for effective 
     procedures for the monitoring of forced labor, including 
     improved procedures to request investigations by 
     international monitors of worksites suspected to be in 
     violation of any such memorandum.

             TITLE XXXVIII--FAIR TRADE IN AUTOMOTIVE PARTS

Sec. 3801. Short title.
Sec. 3802. Definitions.
Sec. 3803. Re-establishment of initiative on automotive parts sales to 
              Japan.
Sec. 3804. Establishment Of Special Advisory Committee on automotive 
              parts sales in Japanese and other Asian markets.
Sec. 3805. Expiration date.

     SEC. 3801. SHORT TITLE.

       This title may be cited as the ``Fair Trade in Automotive 
     Parts Act of 1998''.

     SEC. 3802. DEFINITIONS.

       In this title:
       (1) Japanese markets.--The term ``Japanese markets'' refers 
     to markets, including markets in the United States and Japan, 
     where automotive parts and accessories, both original 
     equipment and aftermarket, are purchased for use in the 
     manufacture or repair of Japanese automobiles.
       (2) Japanese and other asian markets.--The term ``Japanese 
     and other Asian markets'' refers to markets, including 
     markets in the United States, Japan, and other Asian 
     countries, where automotive parts and accessories, both 
     original equipment and aftermarket, are purchased for use in 
     the manufacture or repair of Japanese, United States, or 
     other Asian automobiles.

     SEC. 3803. RE-ESTABLISHMENT OF INITIATIVE ON AUTOMOTIVE PARTS 
                   SALES TO JAPAN.

       (a) In General.--The Secretary of Commerce shall re-
     establish the initiative to increase the sale of United 
     States-made automotive parts and accessories to Japanese 
     markets.
       (b) Functions.--In carrying out this section, the Secretary 
     shall--
       (1) foster increased access for United States-made 
     automotive parts and accessories to Japanese companies, 
     including specific consultations on access to Japanese 
     markets;
       (2) facilitate the exchange of information between United 
     States automotive parts manufacturers and the Japanese 
     automobile industry;
       (3) collect data and market information on the Japanese 
     automotive industry regarding needs, trends, and procurement 
     practices, including the types, volume, and frequency of 
     parts sales to Japanese automobile manufacturers;
       (4) establish contacts with Japanese automobile 
     manufacturers in order to facilitate contact between United 
     States automotive parts manufacturers and Japanese automobile 
     manufacturers;
       (5) report on and attempt to resolve disputes, policies, or 
     practices, whether public or private, that result in barriers 
     to increased commerce between United States automotive parts 
     manufacturers and Japanese automobile manufacturers;
       (6) take actions to initiate periodic consultations with 
     officials of the Government of Japan regarding sales of 
     United States-made automotive parts in Japanese markets; and
       (7) transmit to Congress the annual report prepared by the 
     Special Advisory Committee under section 3804(c)(5).

     SEC. 3804. ESTABLISHMENT OF SPECIAL ADVISORY COMMITTEE ON 
                   AUTOMOTIVE PARTS SALES IN JAPANESE AND OTHER 
                   ASIAN MARKETS.

       (a) In General.--The Secretary of Commerce shall seek the 
     advice of the United States automotive parts industry in 
     carrying out this title.
       (b) Establishment of Committee.--The Secretary of Commerce 
     shall establish a Special Advisory Committee for purposes of 
     carrying out this title.
       (c) Functions.--The Special Advisory Committee established 
     under subsection (b) shall--
       (1) report to the Secretary of Commerce on barriers to 
     sales of United States-made automotive parts and accessories 
     in Japanese and other Asian markets;
       (2) review and consider data collected on sales of United 
     States-made automotive parts and accessories in Japanese and 
     other Asian markets;
       (3) advise the Secretary of Commerce during consultations 
     with other governments on issues concerning sales of United 
     States-made automotive parts in Japanese and other Asian 
     markets;
       (4) assist in establishing priorities for the initiative 
     established under section 3803, and otherwise provide 
     assistance and direction to the Secretary of Commerce in 
     carrying out the intent of that section; and
       (5) assist the Secretary in reporting to Congress by 
     submitting an annual written report to the Secretary on the 
     sale of United States-made automotive parts in Japanese and 
     other Asian markets, as well as any other issues with respect 
     to which the Committee provides advice pursuant to this 
     title.
       (d) Authority.--The Secretary of Commerce shall draw on 
     existing budget authority in carrying out this title.

     SEC. 3805. EXPIRATION DATE.

       The authority under this title shall expire on December 31, 
     2003.

                      TITLE XXXIX--RADIO FREE ASIA

Sec. 3901. Short title.
Sec. 3902. Authorization of appropriations for increased funding for 
              Radio Free Asia and Voice of America broadcasting to 
              China.
Sec. 3903. Reporting requirement.

     SEC. 3901. SHORT TITLE.

       This title may be cited as the ``Radio Free Asia Act of 
     1998''.

     SEC. 3902. AUTHORIZATION OF APPROPRIATIONS FOR INCREASED 
                   FUNDING FOR RADIO FREE ASIA AND VOICE OF 
                   AMERICA BROADCASTING TO CHINA.

       (a) Authorization of Appropriations for Radio Free Asia.--
       (1) Authorization of appropriations.--There are authorized 
     to be appropriated for ``Radio Free Asia'' $22,000,000 for 
     fiscal year 1999.
       (2) Sense of the congress.--It is the sense of the Congress 
     that a significant amount of the funds under paragraph (1) 
     should be directed toward broadcasting to China and Tibet in 
     the appropriate languages and dialects.
       (b) Authorization of Appropriations for International 
     Broadcasting to China.--In addition to such sums as are 
     otherwise authorized to be appropriated to the United States 
     Information Agency for ``International Broadcasting 
     Activities'' for fiscal year 1999, there are authorized to be 
     appropriated for ``International Broadcasting Activities'' 
     $3,000,000 for fiscal year 1999, which shall be available 
     only for enhanced Voice of America broadcasting to China.
       (c) Authorization of Appropriations for Radio 
     Construction.--In addition to such sums as are otherwise 
     authorized to be appropriated for ``Radio Construction'' for 
     fiscal year 1999, there are authorized to be appropriated for 
     ``Radio Construction'' $2,000,000 for fiscal year 1999, which 
     shall be available only for construction in support of 
     enhanced broadcasting to China, including the timely 
     augmentation of transmitters at Tinian, the Commonwealth of 
     the Northern Mariana Islands.

     SEC. 3903. REPORTING REQUIREMENT.

       (a) Report.--Not later than 90 days after the date of the 
     enactment of this Act, the Broadcasting Board of Governors 
     shall prepare and submit to the appropriate congressional 
     committees an assessment of the board's efforts to increase 
     broadcasting by Radio Free Asia and Voice of America to China 
     and Tibet. This report shall include an analysis of Chinese 
     government control of the media, the ability of independent 
     journalists and news organizations to operate in China, and 
     the results of any research conducted to quantify 
     listenership.
       (b) Definition.--As used in this section, the term 
     ``appropriate congressional committees'' means--
       (1) the Committee on Foreign Relations and the Committee on 
     Appropriations of the Senate; and
       (2) the Committee on International Relations and the 
     Committee on Appropriations of the House of Representatives.
       And the Senate agree to the same.

     From the Committee on National Security, for consideration of 
     the House bill and the Senate amendment, and modifications 
     committed to conference:
     Floyd Spence,
     Bob Stump,
     Duncan Hunter,
     John R. Kasich,
     Herbert H. Bateman,
     James V. Hansen,
     Curt Weldon,
     Joel Hefley,
     Jim Saxton,
     Steve Buyer,
     Tillie K. Fowler,
     John M. McHugh,
     J.C. Watts, Jr.,
     William M. Thornberry,
     Saxby Chambliss,
     Walter B. Jones,

[[Page H8198]]

     Michael Pappas,
     Bob Riley,
     Ike Skelton,
     Norman Sisisky,
     John M. Spratt, Jr.,
     Solomon P. Ortiz,
     Owen Pickett,
     Lane Evans,
     Gene Taylor,
     Neil Abercrombie,
     Martin T. Meehan,
     Jane Harman,
     Paul McHale,
     Patrick J. Kennedy,
     Thomas H. Allen,
     Vic Snyder,
     James H. Maloney,
     As additional conferees from the Permanent Select Committee 
     on Intelligence, for consideration of matters within the 
     jurisdiction of that committee under clause 2 of rule XLVIII:
     Porter J. Goss,
     Jerry Lewis,
     Norm Dicks,
     As additional conferees from the Committee on Banking and 
     Financial Services, for consideration of section 1064 of the 
     Senate amendment:
     Jim Leach,
     Michael N. Castle,
     John J. LaFalce,
     As additional conferees from the Committee on Commerce for 
     consideration of sections 601, 3136, 3151, 3154, 3201, 3401, 
     3403, 3404, 3405, 3406, and 3407 of the House bill, and 
     sections 321, 601, 1062, 3133, 3140, 3142, 3144, 3201, and 
     title XXXVIII of the Senate amendment, and modifications 
     committed to conference:
     Thomas J. Bliley, Jr.,
     Dan Schaefer,
     John D. Dingell,
     Provided that Mr. Oxley is appointed in lieu of Mr. Dan 
     Schaefer for consideration of section 321 of the Senate 
     amendment.
     Michael G. Oxley,
     Provided that Mr. Bilirakis is appointed in lieu of Mr. Dan 
     Schaefer for consideration of section 601 of the House bill, 
     and section 601 of the Senate amendment.
     Mike Bilirakis,
     Provided that Mr. Tauzin is appointed in lieu of Mr. Dan 
     Schaefer for consideration of section 1062 and Title XXXVIII 
     of the Senate amendment.
     Billy Tauzin,
       As additional conferees from the Committee on Education and 
     the Workforce, for consideration of sections 361, 364, 551, 
     and 3151 of the House bill, and sections 522, 643, and 1055 
     of the Senate amendment, and modifications committed to 
     conference:
     Tom Petri,
     Frank Riggs,
     Tim Roemer,
       As additional conferees from the Committee on Government 
     Reform and Oversight, for consideration of sections 368, 729, 
     1025, 1042, and 1101-1106 of the House bill, and sections 
     346, 623, 707, 805, 806, 813, 814, 815, 816, 1101-1105, 3142, 
     3144, 3145, 3162-3172 and 3510 of the Senate amendment, and 
     modifications committed to conference:
     Dan Burton,
     John L. Mica,
     Provided that Mr. Horn is appointed in lieu of Mr. Mica for 
     consideration of section 368 of the House bill and sections 
     346, 623, 707, 805, 806, 813, 814, 815, and 816 of the Senate 
     amendment.
     Stephen Horn,
       As additional conferees from the Committee on International 
     Relations, for consideration of sections 233, 1021, 1043, 
     1044, 1201, 1204, 1205, 1210, 1211, 1213, 1216, and Title 
     XIII of the House bill, and sections 326, 332, 1013, 1041, 
     1042, 1074, 1084, 3506, 3601, 3602, and 3901-3904 of the 
     Senate amendment, and modifications committed to conference:
     Benjamin A. Gilman,
     Doug Bereuter,
     Lee H. Hamilton,
     As additional conferees from the Committee on International 
     Relations, for consideration of sections 1207, 1208, 1209, 
     and 1212 of the House bill, and modifications committed to 
     conference:
     Benjamin A. Gilman,
     Doug Bereuter,
     Christopher H. Smith,
     Dan Burton,
     Dana Rohrabacher,
     Lee H. Hamilton,
     Tom Lantos,
     As additional conferees from the Committee on the Judiciary 
     for consideration of sections 1045 and 2812 of the House bill 
     and section 1077 of the Senate amendment, and modifications 
     committed to conference:
     Henry J. Hyde,
     Ed Bryant,
     As additional conferees from the Committee on Resources, for 
     consideration of sections 601, 2812, and 3404-3407 of the 
     House bill, and section 601, 2828, and Title XXIX of the 
     Senate amendment and modifications committed to conference:
     Don Young,
     Billy Tauzin,
     As additional conferees from the Committee on Science, for 
     consideration of sections 3135 and 3140 of the Senate 
     amendment, and modifications committed to conference:
     F. James Sensenbrenner, Jr.,
     Ken Calvert,
     George E. Brown, Jr.,
     As additional conferees from the Committee on Transportation 
     and Infrastructure, for consideration of sections 552, 601, 
     1411, and 1413 of the House bill, and sections 323, 601, 604, 
     and 1080 of the Senate amendment, and modifications committed 
     to conference:
     Bud Shuster,
     Sherwood Boehlert,
     Bob Clement,
     As additional conferees from the Committee on Veterans' 
     Affairs for consideration of sections 556 and 1046 of the 
     House bill, and sections 618, 619, 644, and 1082 of the 
     Senate amendment, and modifications committed to conference:
     Christopher H. Smith,
     Mike Bilirakis,
     Ciro D. Rodriguez,
     As additional conferees from the Committee on Ways and Means, 
     for consideration of Titles XXXVII and XXXVIII of the Senate 
     amendment, and modifications committed to conference:
     Philip M. Crane,
     Bill Thomas,
     Robert T. Matsui,
                                Managers on the Part of the House.

     Strom Thurmond,
     John Warner,
     John McCain,
     Dan Coats,
     Bob Smith,
     Dirk Kempthorne,
     Jim Inhofe,
     Rick Santorum,
     Olympia J. Snowe,
     Pat Roberts,
     Carl Levin,
     Edward M. Kennedy,
     Jeff Bingaman,
     John Glenn,
     Robert C. Byrd,
     Chuck Robb,
     Joseph I. Lieberman,
     Max Cleland,
                               Managers on the Part of the Senate.

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       The managers on the part of the House and the Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendment of the Senate to the bill (H.R. 3616) to authorize 
     appropriations for fiscal year 1999 for military activities 
     of the Department of Defense, for military construction, and 
     for defense programs of the Department of Energy, to 
     prescribe personnel strengths for such fiscal year for the 
     Armed Forces, and for other purposes, submit the following 
     joint statement to the House and the Senate in explanation of 
     the effect of the action agreed upon by the managers and 
     recommended in the accompanying conference report:
       The Senate amendment struck out all of the House bill after 
     the enacting clause and inserted a substitute text.
       The House recedes from its disagreement to the amendment of 
     the Senate with an amendment which is a substitute for the 
     House bill and the Senate amendment. The differences between 
     the House bill, the Senate amendment, and the substitute 
     agreed to in conference are noted below, except for clerical 
     corrections, conforming changes made necessary by agreements 
     reached by the conferees, and minor drafting and clarifying 
     changes.

                 Summary Statement of Conference Action

       The conferees recommend authorizations for the Department 
     of Defense for procurement, research and development, test 
     and evaluation, operation and maintenance, working capital 
     funds, military construction and family housing, weapons 
     programs of the Department of Energy, and the civil defense 
     that have budget authority implications of $270.5 billion.

                    Summary Table of Authorizations

       The defense authorization act provides authorizations for 
     appropriations but does not generally provide budget 
     authority. Budget authority is provided in appropriations 
     acts.
       In order to relate the conference recommendations to the 
     Budget Resolution, matter in addition to the dollar 
     authorizations contained in this bill must be taken into 
     account. A number of programs in the defense function are 
     authorized permanently or, in certain instances, authorized 
     in other annual legislation. In addition, this authorization 
     bill would establish personnel levels and include a number of 
     legislative provisions affecting military compensation.
       The following table summarizes authorizations included in 
     the bill for fiscal year 1999 and, in addition, summarizes 
     the implications of the conference action for the budget 
     totals for national defense (budget function 050).

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                    Congressional Defense Committees

       The term ``congressional defense committees'' is often used 
     in this statement of the managers. It means the Defense 
     Authorization and Appropriations Committees of the Senate and 
     House of Representatives.

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          Title I--Procurement

     Procurement Overview
       The budget request for fiscal year 1999 contained an 
     authorization of $49,109.6 million for Procurement in the 
     Department of Defense. The House bill would authorize 
     $49,455.3 million. The Senate amendment would authorize 
     $49,856.5 million. The conferees recommended an authorization 
     of $49,898.4 million. Unless noted explicitly in the 
     statement of managers, all changes are made without 
     prejudice.

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     Overview
       The budget request for fiscal year 1999 contained an 
     authorization of $1,325.9 million for Aircraft Procurement, 
     Army in the Department of Defense. The House bill would 
     authorize $1,420.8 million. The Senate amendment would 
     authorize $1,462.5 million. The conferees recommended an 
     authorization of $1,396.0 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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     Airborne reconnaissance low
       The budget request included $13.1 million for airborne 
     reconnaissance low (ARL).
       The House bill would authorize an additional $35.0 million. 
     Of this amount, $30.0 million would be used to procure an 
     additional aircraft, and $5.0 million would be used for a 
     moving target indicator (MTI)/synthetic aperture radar (SAR) 
     to upgrade a previously fielded aircraft.
       The Senate amendment would authorize the budget request.
       The House recedes.
     C-XX (medium range) aircraft
       The budget request included no funds for the UC-35 program.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $15.9 
     million for three additional aircraft.
       The House recedes.
     UH-60 Blackhawk
       The budget request included $243.8 million for 22 UH-60s.
       The House bill would authorize an increase of $66.4 million 
     for eight additional UH-60s.
       The Senate amendment would authorize an increase of $78.5 
     million for eight additional UH-60s.
       The conferees agree to authorize an increase of $66.4 
     million for eight additional UH-60 aircraft. The conferees 
     understand that this amount is sufficient to procure these 
     additional aircraft and expect the Army to request funding in 
     future budget submissions for advanced procurement 
     requirements associated with future year procurements.
     AH-64 modifications
       The budget request included $52.9 million for Apache 
     helicopter modifications.
       The House bill and Senate amendment would authorize the 
     budget request.
       The conferees agree to authorize an increase of $4.5 
     million, as follows:
       (1) $3.0 million for the vibration management enhancement 
     program; and
       (2) $1.5 million for two engine upgrade kits and 
     qualification of those kits.
     CH-47 cargo helicopter modifications
       The budget request included $101.2 million for CH-47 
     Chinook helicopter modifications.
       The House bill would authorize a decrease of $12.7 million, 
     as follows:
       (1) $8.2 million for T55 engine conversion kits; and
       (2) $4.5 million for engine conversions to make them 
     consistent with the number of engine fielding kits being 
     procured.
       The Senate amendment would authorize the budget request.
       The conferees agree to a $12.7 million decrease for CH-47 
     modifications.
     C-12 modifications
       The budget request included $2.7 million for C-12 
     modifications.
       The House bill would authorize an increase of $7.0 million 
     for avionics upgrades.
       The Senate amendment would authorize an increase of $6.0 
     million for avionics upgrades.
       The conferees agree to an increase of $6.5 million for 
     avionics upgrades.
     OH-58D Kiowa Warrior
       The budget request included $40.4 million for OH-58D Kiowa 
     Warrior safety upgrades.
       The House bill would authorize an increase of $16.0 million 
     to accelerate the aircraft safety upgrade program.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $13.0 
     million to support acceleration of the safety upgrade 
     program.
     Aircraft Survivability Equipment
       The budget request included $5.1 million for aircraft 
     survivability equipment.
       The House bill would authorize an increase of $7.4 million 
     to upgrade aircraft survivability equipment trainer IV (ASET 
     IV) training systems with infrared surface-to-air missile 
     simulators and night vision cameras.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $6.4 
     million to upgrade existing ASET IV equipment and provide for 
     an improved night time training capability.
     Army airborne command and control system
       The budget request included $24.4 million for Army airborne 
     command and control system procurement.
       The House bill would authorize a decrease of $11.0 million.
       The Senate amendment would authorize the budget request.
       The conferees authorize a decrease of $24.4 million for 
     this program.
     Overview
       The budget request for fiscal year 1999 contained an 
     authorization of $1,205.8 million for Missile Procurement, 
     Army in the Department of Defense. The House bill would 
     authorize $1,232.3 million. The Senate amendment would 
     authorize $1,171.5 million. The conferees recommended an 
     authorization of $1,228.2 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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     Enhanced fiber optic guided missile
       The budget request included $13.7 million for enhanced 
     fiber optic guided missile (E-FOGM) procurement.
       The House bill would authorize a decrease of $13.2 million 
     and would eliminate procurement of E-FOGM missiles.
       The Senate amendment would authorize a decrease of $13.7 
     million and would eliminate procurement of E-FOGM missiles.
       The conferees agree to authorize a decrease of $13.7 
     million and eliminate procurement of E-FOGM missiles.
     Javelin system
       The budget request included $320.0 million to procure 
     Javelin anti-tank missiles.
       The House bill would authorize an increase of $20.0 million 
     to accelerate fielding.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $16.0 
     million for Javelin missile systems.
     Multiple launch rocket system rockets
       The budget request included $16.5 million for the 
     procurement of multiple launch rocket system (MLRS) rockets.
       The House bill would authorize the budget request.
       The Senate amendment would authorize a decrease of $16.5 
     million, which would eliminate the procurement of extended 
     range rockets due to excessively high component cost issues.
       The conferees agree to authorize a decrease of $16.5 
     million and eliminate procurement of MLRS rockets in fiscal 
     year 1999.
     Multiple launch rocket system launcher
       The budget request included $85.4 million for multiple 
     launch rocket system (MLRS) launchers.
       The House bill would authorize a total increase of $40.0 
     million, as follows:
       (1) a decrease of $10.0 million for engineering services; 
     and
       (2) an increase of $50.0 million to procure additional MLRS 
     launchers for Army National Guard (ARNG) units.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $45.0 
     million to continue modernization of ARNG MLRS battalions, of 
     which $21.0 million is to be used for ASIOE for two MLRS 
     battalions and $24.0 million to procure new launchers. The 
     conferees have learned that the Army has recently announced a 
     change in MLRS force structure which will reduce the size of 
     current MLRS battalions from 27 launchers per battalion to 18 
     launchers. When fully implemented, this action will make 
     available sufficient MLRS launchers to complete the fielding 
     of the remaining 11 Corps artillery battalion in the ARNG. 
     The conferees note, however, that the ``cascading'' of these 
     MLRS launchers to the ARNG will require associated support 
     items of equipment (ASIOE) for which there is no funding 
     currently available and that seven MLRS battalions of ARNG 
     heavy divisions remain unfunded.
     Overview
       The budget request for fiscal year 1999 contained an 
     authorization of $1,433.6 million for Weapons and Tracked 
     Combat Vehicles Procurement, Army in the Department of 
     Defense. The House bill would authorize $1,507.6 million. The 
     Senate amendment would authorize $1,439.1 million. The 
     conferees recommended an authorization of $1,507.6 million. 
     Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

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     Bradley base sustainment
       The budget request included $285.8 million for Bradley base 
     sustainment.
       The House bill would authorize an increase of $75.0 million 
     for modification of basic Bradley vehicles to the M2A2 
     operation desert storm configuration for the Army National 
     Guard.
       The Senate amendment would support the budget request.
       The conferees agree to authorize an increase of $70.0 
     million for Bradley A2 ODS modifications for the Army 
     National Guard.
     M240 machine gun
       The budget request included $6.5 million for the 
     procurement of M240 machine guns.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $6.5 
     million to stabilize M240 production and meet warfighting 
     requirements.
       The conferees agree to authorize an increase of $6.5 
     million for M240 machine gun requirements necessary to 
     stabilize production rates.
     MK-19 grenade launcher
       The budget request included $12.2 million for the MK-19 
     automatic grenade launcher.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $3.0 
     million for launcher mounts.
       The conferees agree to authorize an increase of $3.0 
     million to procure 800 launcher mounts for the MK-19.
     Overview
       The budget request for fiscal year 1999 contained an 
     authorization of $1,008.9 million for Ammunition Procurement, 
     Army in the Department of Defense. The House bill would 
     authorize $1,053.5 million. The Senate amendment would 
     authorize $1,007.2 million. The conferees recommended an 
     authorization of $1,016.3 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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     M830A1 120mm tank ammunition
       The budget request included no funds for procurement of 
     M830A1 120mm tank ammunition.
       The House bill would authorize an increase of $10.0 million 
     to procure M830A1 rounds.
       The Senate bill would authorize an increase of $15.0 
     million to procure 4,500 M830A1 rounds to replace a like 
     number of war reserve M830A1's which are being converted to 
     the XM908 obstacle demolition configuration.
       The conferees agree to authorize an increase of $15.0 
     million to procure 4,500 M830A1 rounds.
       The conferees are aware that the Army has a requirement for 
     more obstacle demolition rounds. The conferees believe that 
     the Army should undertake a thorough review of its 
     requirement for these rounds and include them in its budget 
     request for fiscal year 2000.
     Overview
       The budget request for fiscal year 1999 contained an 
     authorization of $3,198.8 million for Other Procurement, Army 
     in the Department of Defense. The House bill would authorize 
     $3,136.9 million. The Senate amendment would authorize 
     $3,556.9 million. The conferees recommended an authorization 
     of $3,344.9 million. Unless noted explicitly in the statement 
     of managers, all changes are made without prejudice.

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     High mobility multipurpose wheeled vehicles
       The budget request included $12.1 million for high mobility 
     multipurpose wheeled vehicles (HMMWV).
       The House bill would authorize an increase of $10.0 million 
     for up-armored upgrade requirements.
       The Senate amendment would authorize an increase of $65.7 
     million to maintain production of vehicles necessary to 
     support Army and Marine Corps plans to begin a fleet 
     replacement program.
       The conferees agree to authorize an increase of $65.7 
     million for new HMMWV production.
     Family of medium tactical vehicles
       The budget request included $332.0 million for family of 
     medium tactical vehicle trucks.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $88.0 
     million to sustain family of medium tactical vehicles (FMTV) 
     production.
       The conferees agree to authorize an increase of $42.5 
     million to support production requirements and field 
     critically needed trucks to replace an aging fleet.
     Medium truck extended service program
       The budget request included $37.2 million for the medium 
     truck extend service program (ESP).
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $93.9 
     million. Of this amount, $30.0 million would be made 
     available to meet Army National Guard (ARNG) requirements.
       The conferees agree to authorize an increase of $20.0 
     million for ARNG medium truck rebuild requirements.
     High mobility multipurpose wheeled vehicle extended service 
         program
       The budget request included $24.8 million for the high 
     mobility multipurpose wheeled vehicle (HMMWV) extended 
     service program (ESP).
       The House bill would authorize a decrease of $24.8 million 
     in response to Army plans to field new vehicles.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize no funds for this program 
     and support the Army request for additional funding necessary 
     for new vehicle production.
     Project management support
       The budget request included $2.4 million for project 
     management support.
       The House bill and the Senate amendment would authorize a 
     decrease of $1.0 million.
       The conferees agree to authorize a decrease of $1.0 million 
     for project management support.
     System fielding support
       The budget request included $4.2 million for system 
     fielding support.
       The House bill would authorize a decrease of $1.2 million.
       The Senate amendment would authorize a decrease of $1.0 
     million.
       The conferees agree to authorize a decrease of $1.0 million 
     for system fielding support.
     Army data distribution system
       The budget request included $24.0 million for the Army data 
     distribution system.
       The House bill would authorize an increase of $5.0 million.
       The Senate amendment would authorize an increase of $28.0 
     million for both active and reserve component requirements 
     for enhanced position location reporting systems (EPLRS) 
     necessary to meet Army digitization requirements.
       The conferees agree to authorize an increase of $28.0 
     million for EPLRS requirements.
     Single channel ground and airborne radio system
       The budget request included $13.2 million for the single 
     channel ground and airborne radio system (SINCGARS).
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase $61.9 
     million for Army National Guard (ARNG) enhanced brigade 
     requirements.
       The conferees agree to authorize an increase of $50.0 
     million for SINCGARS requirements for the ARNG enhanced 
     brigades.
     Area common user system modernization program
       The budget request included $97.1 million for area common 
     user system (ACUS) modifications.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $47.8 
     million to support Army requirements to downsize system 
     shelters.
       The conferees agree to authorize an increase of $35.0 
     million for system downsizing requirements.
     Ground based common sensor
       The budget request included $25.4 million for the ground 
     based common sensor (GBCS).
       The House bill would authorize a decrease of $11.2 million, 
     as follows:
       (1) A $9.7 million decrease for GBCS-light; and
       (2) A $1.5 million decrease because of duplicate entries 
     for the common modules electronic intelligence system in the 
     budget request.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize a decrease of $11.2 
     million for GBCS.
     Joint surveillance and target attack radar system common 
         ground system
       The budget request included $87.2 million for Army joint 
     surveillance and target attack radar system (JSTARS) common 
     ground equipment.
       The House bill would authorize an increase of $10.0 million 
     for 24 JSTARS workstations.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $3.0 
     million for seven additional JSTARS workstations.
     Joint tactical terminal
       The budget request included $6.5 million in Other 
     Procurement, Army for integrated broadcast terminal 
     modifications, and $5.7 million in Other Procurement, Air 
     Force for intelligence communications equipment.
       The House bill would authorize an increase of $5.0 million 
     for the Army, and $3.0 million for the Air Force, to reduce 
     delivery delays for intelligence broadcast transceivers 
     caused by contract protests that have since been resolved.
       The Senate amendment would authorize the budget request.
       The Senate recedes.
     Shortstop electronic protection system
       The budget request included no funds for the Shortstop 
     system.
       The House bill would authorize an increase of $15.0 million 
     for Shortstop electronic protection systems.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $13.0 
     million to procure additional Shortstop electronic protection 
     systems.
     Night vision
       The budget request included $29.6 million for night vision 
     equipment.
       The House bill would authorize an increase of $9.0 million 
     for AN/PEQ-2A infrared target pointers.
       The Senate amendment would authorize an increase of $13.5 
     million, as follows:
       (1) $9.0 million for AN/PEQ-2A infrared target pointers; 
     and
       (2) $4.5 million for AN/PEQ-4C infrared aiming lights.
       The conferees agree to authorize an increase of $43.1 
     million, an increase of $13.5 million, for night vision 
     equipment. Of this amount, $9.0 million is for AN/PEQ-2A 
     infrared target pointers and $4.5 million is for AN/PEQ-4C 
     infrared aiming lights.
     Automated data processing equipment
       The budget request included $130.7 million for automated 
     data processing equipment.
       The House bill would authorize a reduction of $19.1 
     million.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize a total decrease of $19.1 
     million for the joint computer aided logistics system.
     Land warrior
       The budget request included $51.4 million for land warrior 
     equipment procurement.
       The House bill would authorize an increase of $5.0 million 
     for all-torso body armor.
       The Senate amendment would authorize the budget request.
       The conferees are aware of a significant number of cost and 
     technical problems associated with this program. The 
     conferees, therefore, agree to authorize no funds for this 
     program for fiscal year 1999 and further direct the Secretary 
     of the Army to review program cost and technical issues. The 
     conferees further direct the Secretary of the Army provide a 
     report on future requirements and resolution of outstanding 
     technical issues to the congressional defense committees, no 
     later than January 31, 1999.
     Small pusher tug
       The budget request included $4.3 million for one small 
     pusher tug.
       The House bill would authorize an increase of $4.3 million 
     for two additional small pusher tugs.
       The Senate amendment authorized the budget request.
       The conferees agree to authorize an increase of $4.3 
     million for two additional small pusher tugs.
     Training devices, nonsystem
       The budget request included $56.8 million for nonsystem 
     training devices.
       The House bill would authorize an increase of $4.0 million 
     for four fire fighter trainers.
       The Senate amendment would authorize a decrease of $16.1 
     million for the MILES 2000 program.
       The conferees agree to authorize an increase of $4.0 
     million for fire fighter training devices and an increase of 
     $5.0 million for engagement skills trainers.
     Simulation network/close combat tactical trainer
       The budget request included $113.9 million for simulation 
     network (SIMNET) close combat tactical trainer (CCTT).
       The House bill would authorize a decrease of $29.4 million, 
     as follows:
       (1) $17.0 million for modules and sight equipment;
       (2) $ 2.4 million for commercial trainers; and
       (3) $10.0 million for commercial image generators.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize a decrease of $29.4 
     million.
     R2000 engine flush system
       The budget request included no funds for the R2000 engine 
     flush system.
       The House bill would authorize an increase of $5.0 million 
     for this equipment.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $5.0 
     million for the R2000 engine flush system.
     Overview
       The budget request for fiscal year 1999 contained an 
     authorization of $7,466.7 million for Aircraft Procurement, 
     Navy in the Department of Defense. The House bill would 
     authorize $7,420.8 million. The Senate amendment would 
     authorize $7,477.9 million. The conferees recommended an 
     authorization of $7,642.2 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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     AV-8B
       The budget request included $300.2 million for the AV-8B 
     remanufacturing program.
       The House bill would authorize a decrease of $3.2 million.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize a decrease of $3.2 
     million.
     F/A-18E/F
       The budget request included $2,876.1 million for the F/A-
     18E/F.
       The House bill would authorize a decrease of $204.7 million 
     and would reduce the fiscal year 1999 production from 30 
     aircraft to 27 aircraft.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize production of 30 aircraft 
     and to a decrease of $14.0 million from the budget request.
     V-22
       The budget request included $610.8 million to procure seven 
     V-22 tilt-rotor aircraft and $54.0 million for advance 
     procurement of 10 aircraft in fiscal year 2000.
       The House bill would authorize a net increase of $64.0 
     million, including an increase of $78.0 million for the 
     procurement of one additional aircraft and a decrease of 
     $14.0 million for particular ground support equipment.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $78.0 
     million for the procurement of one additional aircraft.
     JPATS
       The budget request included no funds for the naval version 
     of the T-6A.
       The House bill would authorize an increase of $12.2 million 
     for four aircraft for the Navy.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize the budget request.
     EA-6 Series modifications
       The budget request included $75.7 million for various EA-6 
     series modifications.
       The House bill would authorize an increase of $39.0 million 
     for the band 9/10 transmitter/receiver upgrade.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $25.0 
     million for band 9/10 transmitter/receivers and note that the 
     timely authorization for additional band 9/10 transmitters 
     would allow the contractor to modify those transmitters to 
     permit the transmitters to jam in the adjoining frequency 
     range, band 7/8 (called ``modified band 9/10 transmitters'').
     F-14 Series
       The budget request included $223.7 million for the F-14 
     Series aircraft.
       The House bill would authorize a decrease of $7.3 million 
     due to excessive cost growth related to structural 
     improvements.
       The Senate amendment would authorize an increase of $8.0 
     million for acceleration of the precision strike upgrade.
       The conferees agree to authorize an increase of $0.7 
     million to accelerate the precision strike upgrade, and 
     believe that the Department of Defense can meet requirements 
     for structural improvements within the provided amount.
     ES-3 Series Modifications
       The budget request included $5.2 million for ES-3 
     modifications.
       The House bill would authorize a decrease of $5.2 million 
     for this program based on a Navy decision to retire the ES-3 
     aircraft.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize a decrease of $5.2 
     million.
     F-18 series modifications
       The budget request included $198.0 million for the F-18 
     series aircraft.
       The House bill would authorize a decrease of $3.9 million.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize a decrease of $3.9 
     million.
     P-3C antisurface warfare improvement program
       The budget request included $120.7 million for the 
     procurement of P-3C antisurface warfare improvement program 
     (AIP) kits and for associated installation, logistics 
     support, engineering change proposals and training.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $12.2 
     million for procurement of P-3C AIP kits.
       The conferees agree to authorize an increase of $12.2 
     million.
     Lightweight environmentally sealed parachute assembly
       The budget request included no funds for the lightweight 
     environmentally sealed parachute assembly (LESPA).
       The House bill would authorize an increase of $22.0 million 
     to procure LESPA, including $15.0 million for the P-3 and 
     $7.0 million for the E-2C.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $14.0 
     million to procure LESPA, including $10.0 million for the P-3 
     and $4.0 million for the E-2C.
     E-6 modifications
       The budget request included $64.6 million for E-6 
     modifications.
       The House bill would authorize a decrease of the budget 
     request by $4.6 million.
       The Senate amendment would authorize the budget request.
       The conferees would authorize the budget request.
     Common ground equipment
       The budget request included $330.9 million for common 
     ground equipment.
       The House bill would authorize a decrease of $15.4 million.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize a decrease of $11.9 
     million due to unjustified predicted price increases for 
     consolidated automated support systems.
     Aircraft industrial facilities
       The budget request included $13.7 million for aircraft 
     industrial facilities.
       The House bill would authorize a decrease of $1.8 million.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize a decrease of $1.8 million 
     for aircraft industrial facilities based on an unjustified 
     increase for caretaker maintenance.
     Overview
       The budget request for fiscal year 1999 contained an 
     authorization of $1,327.5 million for Weapons Procurement, 
     Navy in the Department of Defense. The House bill would 
     authorize $1,192.2 million. The Senate amendment would 
     authorize $1,366.0 million. The conferees recommended an 
     authorization of $1,223.9 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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     Tactical Tomahawk
       The budget request included $66.7 million in PE 24229N for 
     Tomahawk operational system development, $129.8 million in 
     Weapons Procurement, Navy (WPN) for the Tomahawk missile 
     remanufacture program, $90.2 million in Other Procurement, 
     Navy (OPN) for surface Tomahawk support equipment, and $117.1 
     million in Operation and Maintenance, Navy (O&M, N) for the 
     Tomahawk baseline improvement program (TBIP).
       The House bill would authorize an increase of $98.6 million 
     in PE 24229N for tactical Tomahawk, an increase of $2.8 
     million in OPN for TBIP, a decrease of $96.5 million in WPN, 
     and a decrease of $4.9 million in O&M,N for TBIP.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize a $96.5 million decrease 
     for Tomahawk missile WPN, a $98.6 million increase in PE 
     24229N for tactical Tomahawk, and a $4.9 million decrease in 
     O&M, N for TBIP.
     Advanced medium range air-to-air missile
       The budget request included $62.6 million for 115 advanced 
     medium range air-to-air missiles (AMRAAM).
       The House bill and the Senate amendment would authorize the 
     budget in Navy AMRAAM procurement request.
       The conferees understand that the recent merger of the two 
     competing prime contractors produced savings of $7.0 million 
     in the production of the AMRAAM for the Navy. The conferees 
     agree to authorize a decrease of $7.0 million.
     Standard missile
       The budget request included $225.7 million for 70 Block III 
     and 45 Block IV Standard missiles.
       The House bill would authorize a $20.0 million decrease 
     based on a 41 percent increase in support costs, despite the 
     fact that the total number of missiles would only increase by 
     15 percent from the fiscal year 1998 level.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize a decrease of $15.0 
     million for Standard missile support.
     Penguin missile program
       The budget request included no funds for procurement of 
     Penguin missiles.
       The Senate amendment would authorize an increase of $7.5 
     million for procurement of Penguin missiles to satisfy 
     outstanding inventory objectives for both the tactical and 
     telemetry variants of the missle.
       The House bill would authorize the budget request.
       The conferees agree to authorize the budget request.
     Aerial targets
       The budget request included $75.5 million for aerial 
     targets.
       The House bill would authorize a decrease of $2.7 million.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize a decrease of $2.7 
     million.
     Improved tactical air launched decoy
       The budget request included $300,000 for drones and decoys.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $10.0 
     million for 70 improved tactical air launched decoys (ITALD).
       The conferees agree to authorize an increase of $10.0 
     million.
     Weapons industrial facilities
       The budget request included $27.3 million for capital type 
     rehabilitation projects at government-owned contractor 
     operated weapons industrial facilities.
       The House bill would authorize a decrease of $2.8 million.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize a decrease of $2.8 million 
     based on unjustified environmental cost increases.
     Mk-48 torpedo advanced capability torpedo modifications
       The budget request included $52.8 million for procurement 
     and installation of modifications for the Mk-48 advanced 
     capability torpedo.
       The House bill would authorize a decrease of $2.2 million.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize a decrease of $2.2 million 
     due to the projected excessive unit cost growth of 
     installation kits.
     Close-in weapon system surface mode upgrade
       The budget request included no funds for procurement of 
     Phalanx surface mode (PSUM) upgrade kits for the close-in 
     weapon system (CIWS).
       The House bill would authorize an increase of $4.0 million 
     for procurement and installation of the surface mode upgrade 
     kits for amphibious ships.
       The Senate amendment would authorize an increase of $10.0 
     million for procurement and installation of the surface mode 
     upgrade.
       The conferees agree to authorize an increase of $10.0 
     million for procurement and installation of the surface mode 
     upgrade.
     Surface ship gun mount rotatable pool
       The budget request included $900,000 for procurement and 
     installation of safety shock ordnance alterations to the 5-
     inch 54 gun installed on surface combatants.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $15.0 
     million for test facility preparation, procurement of long 
     lead materials and establishment of a 5-inch 54 Mod 4 
     rotatable gun pool as part of the cruiser conversion program 
     which begins in fiscal year 2001.
       The conferees agree to authorize an increase of $8.0 
     million for the establishment of a 5-inch 54 Mod 4 rotatable 
     gun pool.
     Overview
       The budget request for fiscal year 1999 contained an 
     authorization of $429.5 million for Ammunition Procurement, 
     Navy and Marine Corps in the Department of Defense. The House 
     bill would authorize $452.0 million. The Senate amendment 
     would authorize $475.5 million. The conferees recommended an 
     authorization of $463.3 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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     Shoulder launched multi-purpose assault weapon
       The budget request included $21.3 million for rockets, all 
     type.
       The House bill would authorize an increase of $17.0 
     million, in this account, for the shoulder launched multi-
     purpose assault weapon (SMAW).
       The Senate amendment would authorize an increase of $18.0 
     million, in this account, for the SMAW.
       The conferees agree to authorize an increase of $17.0 
     million for maintaining the program initiated last year to 
     repair SMAW High Explosive Dual Purpose rounds currently 
     restricted from use.
     Overview
       The budget request for fiscal year 1999 contained an 
     authorization of $6,252.7 million for Shipbuilding and 
     Conversion, Navy in the Department of Defense. The House bill 
     would authorize $5,992.4 million. The Senate amendment would 
     authorize $6,049.3 million. The conferees recommended an 
     authorization of $6,033.5 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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[[Page H8244]]

     LHD-8 advance procurement
       The budget request included no funds for LHD-8 advance 
     procurement.
       The House bill would authorize an increase of $10.0 million 
     for advance procurement of LHD-8.
       The Senate amendment would authorize an increase of $50.0 
     million for advance procurement of long lead materials for 
     the construction of LHD-8 in lieu of a future service life 
     extension program for LHA-1.
       The conferees agreed to authorize an increase of $50.0 
     million for advanced procurement of long lead materials for 
     the construction of LHD-8 in lieu of a future service life 
     extension program for LHA-1.
     Strategic sealift
       The budget request included $251.4 million in the 
     Shipbuilding and Conversion, Navy (SCN) account for one large 
     medium-speed roll-on/roll-off (LMSR) strategic sealift ship. 
     Section 2218 of title 10, United States Code, establishes the 
     National Defense Sealift Fund (NDSF) to fund construction of 
     sealift vessels.
       The House bill and the Senate amendment would authorize the 
     procurement of one LMSR and the $251.4 million requested for 
     that purpose, but would provide that authorization for the 
     NDSF account.
       The conferees agree to authorize $251.4 million for the 
     NDSF for construction of one LMSR.
     Landing craft air cushion service life extension program
       The budget request included no funds for landing craft air 
     cushion (LCAC) service life extension program (SLEP).
       The House bill and the Senate amendment would authorize an 
     increase of $16.0 million for the service life extension of 
     two LCAC's.
       The conferees agree to authorize an increase of $16.0 
     million for LCAC SLEP.
     Navy shipbuilding outfitting
       The budget request included $95.7 million for outfitting 
     new construction Navy ships with the initial equipment and 
     spare parts required to operate.
       The House bill would authorize a decrease of $7.7 million.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize a decrease of $3.0 million 
     due to ship delivery schedule slippages and the concomitant 
     reduced requirements.
     Navy shipbuilding post delivery
       The budget request included $123.3 million for new 
     construction ships' post delivery correction of deficiencies.
       The House bill would authorize a decrease of $8.3 million.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize a decrease of $6.0 
     million.
     Overview
       The budget request for fiscal year 1999 contained an 
     authorization of $3,937.7 million for Other Procurement, Navy 
     in the Department of Defense. The House bill would authorize 
     $3,969.5 million. The Senate amendment would authorize 
     $4,040.0 million. The conferees recommended an authorization 
     of $4,043.0 million. Unless noted explicitly in the statement 
     of managers, all changes are made without prejudice.

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[[Page H8254]]

     Other generators
       The budget request included $9.6 million for the 
     procurement and installation of various generators.
       The House bill and the Senate amendment would authorize the 
     budget request.
       The conferees agree to authorize a decrease of $1.2 million 
     for the generator installation that was requested one fiscal 
     year before the requirement.
       The conferees note that the generator that was requested 
     for procurement and installation in fiscal year 1999 will not 
     be received for installation until fiscal year 2000.
     AN/WSN-7 inertial navigation system and WQN-2 doppler sonar 
         velocity log
       The budget request included $21.8 million for procurement 
     of AN/WSN-7 ring laser inertial navigation systems. The 
     budget request included no funds for procurement of WQN-2 
     doppler sonar velocity log.
       The House bill would authorize an increase of $12.0 million 
     for the procurement and installation of additional AN/WSN-7 
     navigation sets, an increase of $6.0 million for procurement 
     and installation of WQN-2, and an increase of $2.5 million to 
     test and evaluate a second version for possible future 
     production competition for WQN-2.
       The Senate amendment would authorize an increase of $12.0 
     million for the procurement and installation of additional 
     AN/WSN-7 navigation sets.
       The conferees agree to authorize an increase of $12.0 
     million to the budget request for the procurement and 
     installation of additional AN/WSN-7 navigation sets and an 
     increase of $6.0 million for procurement and installation of 
     WQN-2.
     Pollution control equipment
       The budget request included $28.0 million for Navy shore 
     based operations to comply with hazardous waste management 
     and disposal requirements, and $149.7 million for Navy 
     shipboard operations to comply with certain oily waste and 
     gray water discharge standards and provide for the conversion 
     of chloroflorocarbon refrigerants.
       The House bill would authorize a decrease of $5.5 million 
     for shore based operations and $19.4 million for shipboard 
     operations related to Navy hazardous waste compliance 
     activities.
       The Senate amendment would authorize the budget request to 
     meet Navy shore based and shipboard hazardous waste 
     compliance requirements.
       The conferees agree to authorize a decrease of $5.5 million 
     for shore based operations and $19.4 million for shipboard 
     operations related to Navy hazardous waste compliance 
     activities. The conferees direct the Navy to provide adequate 
     support and justification for future funding requests related 
     to its environmental compliance obligations.
     Hull, mechanical, and electrical under $2.0 million
       The budget request included $58.1 million for procurement 
     and installation of hull, mechanical, and electrical 
     equipment that cost less than $2.0 million.
       The House bill would authorize a decrease of $3.1 million.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize a decrease of $2.1 million 
     based on unjustified unit cost growth in air conditioners.
     AN/BPS-15H surface search radar
       The budget request included no funds for the procurement of 
     AN/BPS-15H submarine radar navigation sets.
       The House bill and the Senate amendment would authorize an 
     increase of $9.0 million for AN/BPS-15(H) software and 
     hardware upgrades to bring them into electronic chart display 
     information systems (ECDIS-N) compliance.
       The conferees agree to authorize an increase of $9.0 
     million for AN/BPS-15(H) software and hardware upgrades for 
     ECDIS-N compliance.
     Submarine acoustic rapid commercial off-the-shelf insertion
       The budget request included $70.0 million for submarine 
     acoustic rapid commercial off-the-shelf insertion (A-RCI).
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $25.0 
     million to accelerate the introduction of A-RCI to the 
     operating fleet.
       The conferees agree to authorize an increase of $15.0 
     million to accelerate the introduction of A-RCI to the 
     operating fleet.
     Cooperative engagement capability
       The budget request included $47.3 million for procurement 
     and installation of four cooperative engagement capability 
     (CEC) systems and $131.6 million in PE 63658N for CEC 
     demonstration and validation. Within the amount requested in 
     PE 63658N, $38.8 million was included for identification and 
     resolution of interoperability problems in the E-2C aircraft.
       The House bill would authorize an increase of $35.0 million 
     for procurement and installation of five additional CEC 
     systems to meet training and operational requirements. The 
     House bill would also authorize an increase of $20.0 million 
     to correct deficiencies discovered during the initial 
     operational test and evaluation of the system, and support 
     follow-on testing in preparation for the interoperability 
     test that would involve two carrier battle groups. It 
     would also authorize an increase of $6.0 million for 
     continued development of the CEC test and evaluation 
     system and linking that system to the military test and 
     training ranges infrastructure.
       The Senate amendment would authorize the budget request.
       During congressional review of the fiscal year 1999 budget 
     request, the Navy advised the defense authorization 
     committees of interoperability problems between the Advanced 
     Combat Direction System Block 1 (the new combat direction 
     system for large deck ships such as aircraft carriers) and 
     the AEGIS Baseline 6 software (which includes the CEC). These 
     problems occurred during operational test and evaluation of 
     the ACDS Block 1 system, and resulted in the Commander, 
     Operational Test and Evaluation Force, declaring that the 
     ACDS Block 1 system was not operationally suitable or 
     effective for deployment with the fleet and that 
     interoperability problems were exacerbated by the CEC. Fleet 
     reports have also indicated similar interoperability 
     problems. In addition, ongoing developmental testing of the 
     AEGIS Baseline 6 Phase I software during early 1998 indicated 
     that the software was immature.
       The conferees view these and previously identified relay 
     aircraft interoperability problems and their effect on the 
     fleet, the CEC, ship self defense, and Navy theater ballistic 
     missile defense programs with great concern. The conferees 
     recognize that the problems may result in part from efforts 
     to accelerate the CEC program by shortcutting a systematic 
     process for software development, verification, and 
     validation. To resolve these problems, the conferees have 
     been advised that the Navy is developing a program that will 
     focus on interoperability issues to support carrier battle 
     group deployments and for the longer-term, a force level 
     process to coordinate requirements, development, investments, 
     and installation of new system capabilities in the fleet. Key 
     to the process will be: (1) development of a single common 
     combat direction system equipment and computing architecture 
     that will be able to adapt to technology changes more 
     efficiently; and (2) establishment of an enhanced shore based 
     testing capability that will allow force level 
     interoperability testing ashore, before deployment of new 
     system capabilities to the fleet.
       The conferees believe that the Navy has not yet fully 
     assessed the magnitude of the CEC/combat direction system 
     interoperability problem and its effect on other development 
     programs or on the fleet. Additional system development may 
     be required as the Navy assesses and defines the overall 
     magnitude of the system interoperability and software 
     maturity problems. Clear and unambiguous system integration 
     responsibilities and accountability for management of the 
     program to resolve the problems are required.
       The conferees agree to authorize an increase of $26.0 
     million in PE 63658N for research and development and an 
     increase of $35.0 million in Other Procurement, Navy for 
     procurement of CEC systems.
       The conferees understand that the Navy may need to realign 
     fiscal year 1999 CEC funding to implement a program to 
     resolve the interoperability problems. Should the Navy's 
     assessment of the program requirements indicate that 
     realignment is necessary, the conferees encourage the 
     Secretary of Defense to submit a reprogramming request 
     promptly to the congressional defense committees.
       Given the seriousness of the interoperability problems and 
     the potential effects on numerous other important Navy and 
     Defense programs, the conferees direct the Secretary of the 
     Navy to report to the congressional defense committees at 
     least quarterly on CEC/combat direction system 
     interoperability problems and planned solutions.
     Integration and test facility command and control initiative
       The budget request included no funds for upgrading 
     capabilities at the Navy's east coast in-service engineering 
     Space Warfare System Center (SWSC).
       The Senate amendment would authorize an increase of $4.0 
     million for engineering design; hardware and software 
     procurement; and installation, testing, and documentation of 
     the additional technical networking infrastructure for 
     continued development of the SWSC's Integrated Products 
     Center. Of this amount, $2.0 million would be for procurement 
     and $2.0 million would be for operation and maintenance.
       The House bill would authorize the budget request.
       The House recedes.
     Ship communications items
       The budget request included $24.2 million for procurement 
     and installation of ship communications equipment that has a 
     cost less than $2.0 million.
       The House bill would authorize a decrease of $1.9 million.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize a decrease of $1.9 million 
     based on unjustified unit cost growth of installation kits.
     AN/USC-42 mini-demand assigned multiple access ultra-high 
         frequency satellite communications terminals
       The budget request included $145.2 million for SATCOM ship 
     terminals, but no funds for AN/USC-42 mini-demand assigned 
     multiple access ultra-high frequency satellite communications 
     terminals.
       The House bill would authorize an increase of $10.0 million 
     to procure mini-DAMA UHF

[[Page H8255]]

     SATCOM terminals and associated spare parts.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of 
     $10.0 million for mini-DAMA UHF SATCOM terminals and 
     associated spare parts.
     Joint engineering data management and information control 
         system
       The budget request included no funds for Joint Engineering 
     Data Management and Information Control System (JEDMICS), the 
     designated Department of Defense standard system for 
     management, control, and storage of engineering drawings.
       The Senate amendment would authorize an increase of $10.0 
     million for the continued security system procurement, 
     integration and accreditation surveys for the JEDMICS system.
       The House bill would authorize the budget request.
       The conferees agree to authorize an increase of $8.0 
     million for JEDMICS security system procurement, integration, 
     and accreditation surveys.
     Weapons range support equipment
       The budget request included $8.1 million for weapons range 
     support.
       The House bill would authorize an increase of $10.0 million 
     to procure two mobile remote emitter simulator (MRES) systems 
     for the Pacific Missile Range Facility and an increase of 
     $5.0 million for a deployable rangeless air combat training 
     system (DRACTS).
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $10.0 
     million.
     Aircraft launch and recovery equipment
       The budget request included $39.7 million for aircraft 
     launch and recovery equipment.
       The House bill and the Senate amendment would authorize the 
     budget request. The conferees note that pricing and quantity 
     changes totaling a net decrease of $2.2 million were made 
     after submission of the budget request.
       The conferees agree to authorize a decrease of $2.2 million 
     related to revised pricing and reductions in quantity of 
     aircraft launch and recovery equipment.
     Engagement systems support
       The budget request included $307,000 for computer programs 
     and documentation for changes to ship engagement systems not 
     supported elsewhere in the budget request.
       The House bill would authorize a decrease of $307,000.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize a decrease of $307,000 
     based on the availability of prior year funds to meet this 
     requirement.
     Smart ship equipment
       The budget request included $12.8 million to procure and 
     install proven smart ship technology in operational Navy 
     ships.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $12.0 
     million to procure and install smart ship equipment in 
     Arleigh Burke class destroyers.
       The conferees agree to authorize an increase of $10.0 
     million for Arleigh Burke class destroyer smart ship 
     equipment procurement and installation.
     Strategic missile systems equipment
       The budget request included $283.6 million for strategic 
     missile systems equipment.
       The House bill would authorize a decrease of $5.0 million.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize a decrease of $5.0 million 
     due to lack of justification for a budget increase.
     NULKA assembly qualification
       The budget request included $21.5 million for procurement 
     and installation of the NULKA antiship missile decoy program.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $1.0 
     million to outfit and qualify a NULKA assembly facility in 
     the United States.
       The conferees agree to authorize an increase of $1.0 
     million to outfit and qualify a NULKA assembly facility in 
     the United States.
     Beamhit laser marksmanship training system (LMTS)
       The budget request included $2.2 million for training 
     support equipment, but included no funds for the beamhit 
     LMTS.
       The House bill would authorize an increase of $5.0 million 
     for the beamhit LMTS and encourages the Secretary of Defense 
     to examine its utility for use throughout the Department.
       The Senate amendment would authorize the budget request.
       The Senate recedes.
     Overview
       The budget request for fiscal year 1999 contained an 
     authorization of $745.9 million for Marine Corps Procurement, 
     Navy in the Department of Defense. The House bill would 
     authorize $691.9 million. The Senate amendment would 
     authorize $908.6 million. The conferees recommended an 
     authorization of $881.9 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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     Modification kits--tracked vehicles
       The budget request included $5.7 million to procure 
     modification kits for Marine Corps tracked vehicles.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $4.6 
     million to meet Marine Corps requirements to upgrade tanks 
     with muzzle boresight devices (MBD) and nuclear, biological, 
     and chemical (NBBC) protection devices.
       The conferees agree to authorize an increase of $4.6 
     million to meet Marine Corps requirements for MBD and NBC 
     modifications.
     155MM lightweight towed howitzer
       The budget request included $10.0 million for Marine Corps 
     155mm lightweight towed howitzer procurement.
       The House bill and the Senate amendment would authorize the 
     budget request.
       The conferees agree to authorize no funds for fiscal year 
     1999. The conferees note recent actions taken by both the 
     Marine Corps and the prime contractor for the lightweight 
     155mm howitzer program to address significant program 
     deficiencies. The conferees continue to support this program 
     and appreciate Marine Corps efforts to keep Congress informed 
     on issues associated with the fielding of the lightweight 
     155mm howitzer. Actions taken to date have resulted in a 
     complete change of contractor management staff and will 
     likely result in a two-year delay for the program. As a 
     result, procurement funding requested for fiscal year 1999 is 
     no longer required.
     Pedestal mounted stinger
       The budget request included $0.2 million to provide program 
     support for fielded Marine Corps Avenger systems.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $7.6 
     million to complete Marine Corps Avenger forward looking 
     infrared upgrades to existing sytems.
       The conferees agree to authorize an increase of $5.2 
     million and an increase of $5.0 million, to support Avenger 
     upgrade requirements.
     Items less than $2.0 million (intelligence)
       The budget request included no funds for items less than 
     $2.0 million (intelligence).
       The House bill would authorize an increase of $1.0 million 
     for purchasing and evaluating commercial imagery manipulation 
     tools, state-of-the-art display devices, and high quality 
     large format printers for field use.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $1.0 
     million for the purpose of evaluating commercial imagery 
     manipulation tools, state-of-the-art display devices, and 
     high quality large format printers.
     Night vision equipment
       The budget request included $11.6 million for Marine Corps 
     night vision equipment.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $11.1 
     million for night vision requirements, as follows:
       (1) $6.1 million for generation III tubes to retrofit 
     existing night vision equipment;
       (2) $1.4 million for laser aiming modules;
       (3) $2.6 million for medium power laser illuminators; and
       (4) $1.0 million for borelights.

     The Senate amendment would also authorize an increase of 
     $22.6 million in the Other Procurement, Navy account for OMNI 
     IV retrofit requirements in AN/AVS-6 night vision goggle 
     systems.
       The conferees agree to authorize an increase of $33.7 
     million for night vision equipment, as follows:
       (1) $6.1 million for generation III tubes to retrofit 
     existing night vision equipment;
       (2) $1.4 million for laser aiming modules;
       (3) $2.6 million for medium power laser illuminators;
       (4) $1.0 million for borelights; and
       (5) $22.6 million for OMNI IV retrofit requirements in AN/
     AVS-6 night vision goggle systems.
     Communications and electronics infrastructure
       The budget request included $57.9 million for the 
     procurement of communications and electronics infrastructure 
     upgrades.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $79.1 
     million for communications and electronics infrastructure 
     requirements. Of this amount, $64.1 would be for 
     infrastructure upgrades and the remaining $15.0 million would 
     be for procurement of computer workstations necessary to 
     address the year 2000 compliance issue.
       The conferees agree to authorize an increase of $64.0 
     million for the completion of Marine Corps infrastructure 
     upgrade requirements.
     Medium tactical vehicle replacement
       The budget request included $83.7 million to procure Marine 
     Corps trucks.
       The House bill would authorize a decrease of $9.8 million 
     to reduce the number of truck operator training devices 
     procured prior to award of the low rate initial production 
     contract.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize a decrease of $9.8 million 
     for truck operator training devices.
     Light tactical vehicle replacement
       The budget request included $39.3 million to procure Marine 
     Corps high mobility multipurpose wheeled vehicles (HMMWVs) to 
     replace an aging fleet.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $37.0 
     million to accelerate the replacement process.
       The conferees agree to authorize an increase of $33.5 
     million to accelerate procurement of replacement HMMWVs.
     Power equipment assorted
       The budget request included $5.1 million to procure Marine 
     Corps power generation equipment.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $9.5 
     million to procure 1,311 generators necessary to support 
     mobile command, control, and communications power 
     requirements.
       The conferees agree to authorize an increase of $9.5 
     million for tactically quiet generators necessary to meet 
     Marine Corps requirements.
     Shop equipment contact maintenance
       The budget request included $6.0 million to procure Marine 
     Corps shop equipment contact maintenance (SECM) requirements.
       The House bill would authorize a decrease of $3.0 million.
       The Senate amendment would authorize an increase of $5.4 
     million to support the procurement and fielding of critically 
     needed shop equipment contact maintenance requirements.
       The conferees agree to authorize an increase of $5.4 
     million for SECM requirements.
     Material handling equipment
       The budget request included $6.5 million to procure Marine 
     Corps material handling equipment.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $10.4 
     million to allow the Marine Corps to leverage an existing 
     contract to begin replacement of its existing fleet.
       The conferees agree to authorize an increase of $1.9 
     million to accelerate procurement of material handling 
     equipment and support Marine Corps deployment activities.
     Overview
       The budget request for fiscal year 1999 contained an 
     authorization of $7,756.5 million for Aircraft Procurement, 
     Air Force in the Department of Defense. The House bill would 
     authorize $8,219.1 million. The Senate amendment would 
     authorize $8,280.8 million. The conferees recommended an 
     authorization of $8,350.6 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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[[Page H8264]]

     F-22 procurement
       The budget request included $595.1 million to procure the 
     first two F-22 production aircraft.
       The House bill and the Senate amendment would authorize the 
     budget request.
       The conferees agree to authorize a decrease of $14.0 
     million.
     F-16
       The budget request included no funds for F-16 aircraft.
       The House bill would authorize an increase of $60.0 million 
     to buy two F-16 attrition reserve aircraft.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $25.0 
     million for one F-16 attrition reserve aircraft.
     C-130J
       The budget request included $63.8 million for the 
     procurement of one C-130J aircraft.
       The House bill would authorize an increase of $461.4 
     million for an additional seven C-130J aircraft.
       The Senate amendment would authorize an increase of $381.1 
     million for an additional four C-130J aircraft, logistics 
     support, and a simulator.
       The conferees agree to authorize a total of $482.6 million 
     for seven C-130J aircraft and a simulator, as follows:

                                                                     C-130 PROGRAMS
                                                                  [dollars in millions]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                     Budget request          House bill            Senate bill      Conference agreement
                              Type                               ---------------------------------------------------------------------------------------
                                                                   Quantity    Amount    Quantity    Amount    Quantity    Amount    Quantity    Amount
--------------------------------------------------------------------------------------------------------------------------------------------------------
KC-130J.........................................................         --         --          2      112.4         --         --          2      112.4
WC-130J.........................................................         --         --          1       59.7          1       75.4          1       75.4
EC-130J.........................................................         --         --          1       51.5          1       85.0          1       85.0
C-130J..........................................................          1       63.8          1       63.8          1       63.8          1       63.8
C-130J ANG......................................................         --         --          3      174.0          2      157.6          2      146.0
                                                                 ---------------------------------------------------------------------------------------
      Total.....................................................          1       63.8          8      461.4          5      381.8          7     482.6
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note.--The $30.0 million simulator is included in the C-130J ANG totals.

     C-130H
       The budget request included $11.2 million for the C-130H.
       The House bill would authorize a decrease of $11.2 million.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize the budget request.
     Joint Primary Aircraft Training System
       The budget request included $107.1 million for the Joint 
     Primary Aircraft Training System (JPATS).
       The House bill would authorize a decrease of $27.1 million, 
     including a decrease of $36.2 million for the ground based 
     training system (GBTS), deferring its acquisition for one 
     year, and an increase of $9.1 million for three additional 
     JPATS aircraft.
       The Senate amendment would authorize an increase of $9.1 
     million for three additional JPATS aircraft.
       The conferees agree to authorize a decrease of $4.9 million 
     in the JPATS program, including of a decrease of $14.0 
     million for the training integration management system (TIMS) 
     and an increase of $9.1 million for three additional JPATS 
     aircraft.
     E-8C Joint Surveillance and Target Attack Radar System 
         (JSTARS)
       The budget request included $578.2 million two JSTARS 
     aircraft.
       The House bill would authorize a decrease of $13.0 million.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize the budget request.
     B-1B
       The budget request included $91.6 million for B-1B bomber 
     modifications.
       The House bill would authorize the budget request.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize a decrease of $9.6 million 
     from the budget request for fiscal year 1999.
       The conferees note that the funds authorized to be 
     appropriated for B-1B modifications in fiscal year 1998, $9.6 
     million has been identified as excess to fiscal year 1998 
     requirements. The conferees direct that these funds be used 
     to satisfy fiscal year 1999 requirements for B-1B 
     modifications.
     B-52
       The budget request included $38.3 million for B-52 
     modifications.
       The House bill would authorize the budget request.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize a decrease of $2.6 million 
     and direct that prior year funds be used to fulfill fiscal 
     year 1999 requirements for B-52 modifications.
       The conferees note that excess prior year funds remain 
     available for obligation for B-52 modifications.
     F-15 modifications
       The budget request included $196.6 million for F-15 
     modifications.
       The House bill would authorize an increase of $34.8 
     million, as follows:
       (1) an increase of $20.0 million for engine upgrade kits;
       (2) an increase of $25.0 million for the ALQ-135 Band 1.5 
     program; and
       (3) a decrease of $10.2 million for excessive cost growth.
       The Senate amendment would authorize an increase of $50.0 
     million, as follows:
       (1) an increase of $25.0 million for engine upgrade kits; 
     and
       (2) an increase of $25.0 million for the ALQ-135 Band 1.5 
     program.
       The conferees agree to authorize an increase of $45.0 
     million, as follows:
       (1) an increase of $20.0 million for engine upgrade kits; 
     and
       (2) an increase of $25.0 million for the ALQ-135 Band 1.5 
     program.
     F-16 modifications
       The budget request included $229.3 million for F-16 
     modifications.
       The House bill would authorize an increase of $5.1 million, 
     as follows:
       (1) an increase of $12.0 million for the digital terrain 
     system (DTS); and
       (2) a decrease of $6.9 million for poorly justified 
     modifications.
       The Senate amendment would authorize an increase of $13.3 
     million for 15 medium altitude electro-optical sensors.
       The conferees agree to authorize an increase of $5.9 
     million for DTS.
     C-12 modifications
       The budget request included $3.8 million for C-12 
     modifications.
       The House bill would authorize a decrease of $2.3 million.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize the budget request.
     Defense Airborne Reconnaissance Program procurement
       The budget request included $394.2 million for procurement 
     activities of the Defense Airborne Reconnaissance Program 
     (DARP), as shown in the following table:

----------------------------------------------------------------------------------------------------------------
                                                                                Change from request
                                                                      Budget  ----------------------  Conference
                     Procurement item/account                        request     House      Senate    agreement
                                                                                  bill    amendment
----------------------------------------------------------------------------------------------------------------
EP-3:
    APN 28........................................................      5,437  .........  .........        8,937
    Displays......................................................  .........     3,000   .........      [1,500]
    Spares........................................................  .........  .........      2,000      [2,000]
RC-135:
    APAF 55.......................................................    139,242  .........  .........      169,242
    Re-engine.....................................................  .........  .........     56,000     [28,000]
    TAWS..........................................................  .........  .........     12,000      [2,000]
RC-135 Combat Sent:
    OPAF 107......................................................     12,656  .........  .........       16,456
    ESV/PCV.......................................................  .........     3,800   .........      [3,800]
U-2:
    APAF 77.......................................................    152,113  .........  .........      141,813
    ASARS Transfer................................................  .........   (10,300)  .........   [(10,300)]
    RAS-1R Upgrades...............................................  .........  .........     17,000  ...........
CIGSS:
    OPA 78a.......................................................  .........     2,508   .........        2,508
    OPN 67a.......................................................  .........    65,827   .........       65,827
    OPAF 106......................................................  .........     5,681   .........        5,681
    PDW 7.........................................................     74,016   (74,016)  .........  ...........
ARGSS:
    PDW 7.........................................................      3,419    (3,419)  .........  ...........
    PDW 9.........................................................     11,988     3,419   .........       15,407
      Total.......................................................    398,871    (3,500)     87,000      425,871
----------------------------------------------------------------------------------------------------------------

       Section 905 of the National Defense Authorization Act for 
     Fiscal Year 1998 transferred the program management 
     responsibilities of the Defense Airborne Reconnaissance 
     Office (DARO) to the military services, while retaining 
     Office of the Secretary of Defense (OSD)-level oversight 
     responsibilities for determining airborne reconnaissance 
     architecture and systems interface requirements.
       The table reflects both transfers and adjustments made by 
     the conferees.


                                  EP-3

       The budget request included $5.4 million for various 
     modifications for EP-3 aircraft.
       The House bill would authorize an increase of $3.0 million 
     to replace existing displays in EP-3 aircraft with flat panel 
     displays.
       The Senate amendment would authorize an increase of $2.0 
     million for spares to support the operational deployment of 
     an EP-3 aircraft to evaluate the high band prototype of the 
     joint signals intelligence avionics family (JSAF).
       The conferees agree to authorize an increase of $3.5 
     million for the EP-3, $1.5 million for flat panel displays, 
     and $2.0 million for spares support.


                                 RC-135

       The budget request included $139.2 million for various 
     modifications for DARP aircraft in Aircraft Procurement, Air 
     Force (APAF).
       The House bill would authorize the budget request.

[[Page H8265]]

       The Senate amendment would authorize an increase of $68.0 
     million in the DARP, including: $56.0 million for two re-
     enginings, and $12.0 million to transfer the theater airborne 
     warning system (TAWS) medium-wave infrared (MIRA) technology 
     from the Cobra Ball program to Rivet Joint program. The 
     Senate report (S. Rept. 105-189) would require successful 
     completion of Cobra Ball integration testing and submission 
     of a report on the test results to the congressional defense 
     committees before obligation of the additional funds.
       The conferees agree to authorize an increase of $30.0 
     million for DARP, including: $28.0 million to re-engine one 
     RC-135 aircraft, and $2.0 million to complete the TAWS and to 
     upgrade the MIRA sensors. In addition, the conferees 
     understand that $3.3 million authorized in the General 
     Defense Intelligence Program in fiscal year 1998 for the 
     development of a Cobra Ball radar ranging system remains 
     unobligated. The conferees recommend that the unobligated 
     $3.3 million authorized for fiscal year 1998 also be used to 
     complete the TAWS development and upgrade the MIRA sensors on 
     the Cobra Ball aircraft.
       The conferees do not agree to a transfer of this technology 
     to the Rivet Joint fleet until the Cobra Ball integration is 
     complete and test results clearly show that this transfer 
     will provide a viable augmentation to the Defense Support 
     Program (DSP). Further, the conferees endorse the requirement 
     in the Senate report that the Department submit a report on 
     the test results to the congressional defense committees 
     before obligating the extra TAWS funding authorized in this 
     bill.


                           RC-135 Combat Sent

       The budget request included $12.7 million in Other 
     Procurement, Air Force for RC-135 ground support equipment.
       The House bill would authorize an increase of $3.8 million 
     for the RC-135 Combat Sent ground support system 
     improvements.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $3.8 
     million.


                            U-2 Procurement

       The budget request included $152.1 million in DARP 
     modifications in APAF.
       The House bill would authorize a decrease of $10.3 million 
     for U-2 procurement, transferring these funds to the Advanced 
     Synthetic Aperture Radar System Improvement program (AIP).
       The Senate amendment would authorize an increase of $17 
     million for U-2 procurement to continue the reliability and 
     maintainability (R&M) conversion of 11 Senior Glass systems 
     for the U-2.
       The conferees agree to the AIP transfer and to authorize an 
     increase of $7.5 million for R&M conversion of Senior Glass 
     systems for the U-2 in the research and development program 
     Manned Reconnaissance Systems (PE 35207F).


                                 Other

       The budget request included funding for the common imagery 
     ground/surface system (CIGSS) and airborne reconnaissance 
     ground SIGINT system (ARGSS) programs in DARO procurement 
     lines. The conference agree to transfer this funding to the 
     appropriate service or defense agency accounts.
     E-8 modifications
       The budget request included $44.2 million for E-8 
     modifications.
       The House bill would authorize a decrease of $11.8 million.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize the budget request.
     Passenger safety modifications
       The budget request included $252.6 million in various Air 
     Force aircraft modification budget lines to support making 
     communications, navigation, and safety improvements to 
     improve safety of passenger and cargo carrying aircraft.
       The House bill would authorize an increase of $50.0 million 
     for passenger safety modifications in specific aircraft 
     modification budget lines for enhanced ground proximity 
     warning systems (EGPWS) and traffic collision avoidance 
     system (TCAS) requirements, as follows:

                 Passenger Safety Modification Additions
                          [Dollars in millions]
------------------------------------------------------------------------
                 Aircraft                     EGPWS     TCAS      Total
------------------------------------------------------------------------
VC-25.....................................       5.8  ........       5.8
C-21......................................      15.7       6.5      22.2
C-130.....................................       3.5  ........       3.5
C-9.......................................  ........       3.4       3.4
C-141.....................................  ........       4.2       4.2
KC-10.....................................  ........      10.9      10.9
                                           -----------------------------
    Total.................................      25.0      25.0      50.0
------------------------------------------------------------------------

       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $50.0 
     million to procure additional aircraft safety modifications.
     Pacer Coin
       The budget request included $2.4 million for aircraft 
     spares and repair parts for the transfer of mission equipment 
     from retiring Pacer Coin aircraft to the non-dedicated, 
     follow-on C-130 reconnaissance aircraft.
       The House bill would authorize a decrease of $2.4 million 
     for transfer of mission equipment for Pacer Coin aircraft 
     since the program is being terminated and a fiscal year 1998 
     Department of Defense reprogramming request stated that all 
     funds necessary for the C-130 follow-on program were 
     addressed in the reprogramming request.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize a decrease of $2.4 million 
     for transfer of mission equipment for Pacer Coin aircraft.
     Common support equipment
       The budget request included $152.1 million for common 
     support equipment.
       The House bill would authorize a decrease of $4.2 million.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize the budget request.
     A-10 post production support
       The budget request included $11.4 million for A-10 post 
     production support.
       The House bill would authorize a decrease of $1.9 million.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize the budget request.
     B-2A
       The budget request included $189.9 million for post 
     production support for the B-2A bomber fleet.
       The House bill would authorize an increase of $86.0 million 
     to enhance the B-2's operational effectiveness.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $86.0 
     million.
       The conferees note that the increase would fund low 
     observability maintainability and situational awareness 
     upgrades key to maximizing the effectiveness of the small 
     number of B-2 bombers in the fleet. The conferees also 
     believe that the funding increase would provide the 
     opportunity to coordinate efficiently these efforts with 
     radar cross section improvements.
     Miscellaneous production charges
       The budget request included $221.5 million for 
     miscellaneous production charges, including $10.1 million for 
     High Speed Anti- Radiation Missile targeting pod 
     modifications.
       The House bill would authorize a decrease of $10.1 million, 
     recognizing that $6.1 million was requested for the same 
     purpose in the ``Other aircraft modifications'' account.
       The Senate amendment would authorize the budget request.
       The conferees agree to a decrease of $10.9 million in 
     miscellaneous production charges.
     Overview
       The budget request for fiscal year 1999 contained an 
     authorization of $384.2 million for Ammunition Procurement, 
     Air Force in the Department of Defense. The House bill would 
     authorize $383.6 million. The Senate amendment would 
     authorize $383.2 million. The conferees recommended an 
     authorization of $383.2 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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     Overview
       The budget request for fiscal year 1999 contained an 
     authorization of $2,359.8 million for Missile Procurement, 
     Air Force in the Department of Defense. The House bill would 
     authorize $2,234.7 million. The Senate amendment would 
     authorize $2,347.7 million. The conferees recommended an 
     authorization of $2,210.6 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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[[Page H8271]]

     Advanced Medium Range Air-to-Air Missile
       The budget request included $114.6 million for the 
     procurement of 180 Advanced Medium Range Air-to-Air Missiles.
       The House bill would authorize a decrease of $4.6 million.
       The Senate amendment would authorize a decrease of $21.0 
     million because of cost savings associated with the merger of 
     the system's two prime contractors.
       The conferees agree to authorize a decrease of $20.9 
     million.
     Minuteman III guidance replacement program
       The budget request included $90.6 million for Minuteman III 
     modifications.
       The House bill would authorize an increase of $23.0 million 
     for the Minuteman III guidance replacement program (GRP).
       The Senate amendment would authorize an increase of $46.0 
     million for GRP.
       The conferees agree to authorize an increase of $23.0 
     million above the budget request for GRP. Additionally, the 
     conferees are aware that $8.8 million in funds authorized in 
     fiscal year 1998 for GRP are excess to fiscal year 1998 
     requirements. Therefore, the conferees direct that such 
     fiscal year 1998 funds be obligated in support of GRP during 
     fiscal year 1999.
     AGM-65H Maverick
       The budget request included no funds for the AGM-65H 
     missile.
       The House bill would authorize an increase of $3.0 million 
     to ensure that the Air Force can accomplish a smooth 
     transition to a service life extension program for these 
     weapons.
       The Senate amendment would authorize the budget request.
       The Senate recedes.
     Defense Support Program
       The budget request included $89.9 million for procurement 
     of Defense Support System (DSP) satellites.
       The House bill and the Senate amendment would authorize the 
     budget request.
       The Senate amendment approved the budget request.
       The conferees agree to authorize a decrease of $7.0 million 
     to the budget request.
       The conferees note that excess prior year funds exist in 
     the DSP program.
     Overview
       The budget request for fiscal year 1999 contained an 
     authorization of $6,974.4 million for Other Procurement, Air 
     Force in the Department of Defense. The House bill would 
     authorize $7,046.4 million. The Senate amendment would 
     authorize $6,774.6 million. The conferees recommended an 
     authorization of $6,950.4 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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     60K Loader
       The budget request included $89.2 million for the 60K 
     loader.
       The House bill would authorize a decrease of $2.9 million.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize the budget request.
     Combat training ranges
       The budget request included $13.2 million for combat 
     training ranges, but included no funds for the rangeless air 
     combat training system (RACTS). This system is also known as 
     the Kadena Interim Training System (KITS) and was delivered 
     to Kadena Air Base, Japan, in August 1997.
       For future fixed and deployable training support, the 
     Department of Defense's plan is to shift to the Joint 
     Tactical Combat Training System (JTCTS), a system that will 
     support air, surface, and subsurface training requirements. 
     However, the House report (H. Rept. 105-532) noted that no 
     funds were included in the budget to meet near-term training 
     requirements that had been identified by United States Air 
     Forces Europe (USAFE).
       The House bill would authorize an increase of $5.0 million 
     for RACTS to meet these requirements.
       The Senate amendment would authorize the budget request.
       The Senate recedes.
     Automated telecommunications program
       The budget request included $14.9 million for automated 
     telecommunications equipment.
       The House bill would authorize a decrease of $4.0 million.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize the budget request.
     Air Force satellite control network
       The budget request included $26.0 million in Air Force 
     other procurement for the Air Force Satellite Control Network 
     (AFSCN) program.
       The House bill and the Senate amendment would authorize the 
     budget request.
       The conferees agree to authorize a decrease of $1.4 million 
     from the budget request.
       The conferees note that excess prior year funds exist in 
     the AFSCN program. The conferees direct that these funds be 
     used to satisfy fiscal year 1999 AFSCN requirements.
     Communication electronics modifications
       The budget request included $57.7 million for communication 
     electronics modifications.
       The House bill would authorize a decrease of $5.8 million.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize the budget request.
     Overview
       The budget request for fiscal year 1999 contained an 
     authorization of $2,041.7 million for Defense-wide 
     Procurement in the Department of Defense. The House bill 
     would authorize $1,962.9 million. The Senate amendment would 
     authorize $2,023.5 million. The conferees recommended an 
     authorization of $1,954.8 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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[[Page H8282]]

     Automated document conversion system
       The budget request included no funds for automated document 
     conversion system (ADCS).
       The House bill would authorize an increase of $32.0 million 
     for the procurement of ADCS hardware and software.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $25.0 
     million for the procurement of ADCS hardware and software.
     SOF intelligence systems
       The budget request included $19.1 million for special 
     operations forces intelligence systems.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $5.0 
     million for procurement and installation of Silent Shield 
     real-time situational awareness systems on special operations 
     aircraft.
       The conferees agree to authorize an increase of $2.5 
     million for Silent Shield system procurement.
     Contamination avoidance
       The budget request included $96.2 million for contamination 
     avoidance.
       The House bill would authorize a decrease of $6.9 million. 
     This decrease would eliminate funding for National Guard 
     Rapid Assessment and Initial Detection equipment.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize the budget request.
     Overview
       The budget request for fiscal year 1999 contained no 
     authorization for National Guard and Reserve Procurement in 
     the Department of Defense. The House bill would authorize 
     $300.0 million. The Senate amendment would authorize $60.0 
     million. The conferees recommended an authorization of $60.0 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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[[Page H8285]]

                  National Guard and Reserve Equipment

       The budget request included $1.36 billion for National 
     Guard and Reserve equipment, as follows:

                                                               Millions
Aircraft, Army....................................................110.2
Missiles, Army.....................................................35.3
Weapons and Tracked Combat Vehicles, Army..........................12.3
Ammunition, Army..................................................182.3
Other Procurement, Army...........................................502.9
Aircraft, Navy.....................................................41.8
Ammunition, Navy/USMC..............................................17.3
Other Procurement, Navy.............................................3.6
Procurement, USMC..................................................39.9
Aircraft, USAF....................................................293.3
Ammunition, USAF...................................................30.4
Other Procurement, USAF............................................85.0
NG&RE, Other Procurement............................................9.3
                                                             __________
                                                             
    Department of Defense Total.................................1,363.6

       This request reflects a net increase of almost $400.0 
     million above the funding requested for the reserve component 
     modernization in the fiscal year 1998 budget request. The 
     conferees believe that the increased funding requested by the 
     services for reserve component modernization reflects a 
     recognition of the critical role that these forces provide in 
     Department of Defense operations. The conferees agree that 
     reserve component modernization, as an integral component of 
     overall DOD modernization, should rely on a collaborative 
     budget development process within the Department and not on 
     annual congressional supplemental funding, which would have 
     to come at the expense of other programs funded in the budget 
     request. However, the conferees recognize that there are 
     still significant modernization shortfalls in both the active 
     and reserve components and remain concerned about the 
     readiness implications of declining modernization funding 
     requests.
       Accordingly, the conferees agree to authorize increases to 
     support reserve component modernization, as follows:

                                                               Millions
UH-60 Blackhawk...................................................$66.4
Family of Medium Tactical Vehicles.................................42.5
Medium Truck Extended Service Program..............................20.0
Multiple Launch Rocket System Launchers............................45.0
R2000 Engine Flush System...........................................5.0
Bradley Upgrades...................................................70.0
SINCGARS family....................................................50.0
AH-64 Vibration Management Enhancement System.......................3.0
Engagement Skills Trainers..........................................5.0
MIUW van upgrades..................................................12.0
KC-135 Re-engining.................................................46.0
F-16 IAIS..........................................................14.0
C-130 (1 WC-130J, 1 EC-130J, 2 C-130J)............................276.4
C-130J Simulator...................................................30.0
    Total increase................................................685.3

       Additionally, the conferees agree to authorize an increase 
     of $60.0 million for National Guard and Reserve miscellaneous 
     equipment, as follows:

                                                               Millions
Army Reserve
  Miscellaneous...................................................$10.0
Navy Reserve
  Miscellaneous....................................................10.0
Marine Corps Reserve
  Miscellaneous....................................................10.0
Air Force Reserve
  Miscellaneous....................................................10.0
Army National Guard
  Miscellaneous....................................................10.0
Air National Guard
  Miscellaneous....................................................10.0

       The conferees direct that the miscellaneous funding be 
     allocated exclusively by the chiefs of the reserve 
     components, in consultation with service chiefs, and give 
     priority consideration to the following items: 2.5-ton and 5-
     ton truck extended service program; night vision equipment; 
     high mobility multipurpose wheeled vehicles; CH-47 
     crashworthy internal fuel cells; heavy expanded mobility 
     tactical truck bridge transportation kits; M915 truck 
     extended service program upgrade kits; rock crush, screen; 
     AVLB 60-70 ton upgrades; high mobility multipurpose wheeled 
     vehicle contact maintenance trucks; 5 kilowatt tactically 
     quiet generator; M915A3 long haul tractor; F/A-18A+ ECP; CH-
     53e HNVS ``B kits''; electronic calibration facility (AN/TSM-
     198); electronic test measurement and diagnostic equipment 
     facility; D-7 bulldozer; reconfigurable mission simulator; 
     meteorological measuring sets (AN/TMQ41); PATS (F-16); F-16 
     ALR-56M RWR; F-16 SADL ADP/color; A-10 SADL group A; airborne 
     firefighting equipment; mobile backscatter truck inspection 
     system; the advanced radar warning receiver; and the D-7 
     product improvement program.
     Overview
       The budget request for fiscal year 1999 contained an 
     authorization of $855.1 million for Chemical Agent and 
     Munitions Destruction, Army. The House bill would authorize 
     no funding for Chemical Agent and Munitions Destruction, 
     Army, but would transfer the authorization of $834.0 million 
     for Chemical Agent and Munitions Destruction, Defense. The 
     Senate amendment would authorize no funding for Chemical 
     Agent and Munitions Destruction, Army but would transfer the 
     authorization of $777.2 million for Chemical Agent and 
     Munitions Destruction, Defense. The conferees agree to 
     authorize $803.0 million for Chemical Agent and Munitions 
     Destruction, Defense. Unless noted explicitly in the 
     conference agreement, all changes are made without prejudice.

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[[Page H8287]]

                     Legislative Provisions Adopted

              Subtitle A--Authorization of Appropriations

     Authorization of appropriations (secs. 101-109)
       The House bill contained provisions (secs. 101-109) that 
     would authorize the recommended fiscal year 1999 funding 
     levels for the Army, Navy and Marine Corps, Air Force, 
     Defense-Wide Activities, Reserve Components, Defense 
     Inspector General, Chemical Demilitarization Program, Defense 
     Health Program, and the Defense Export Loan Guarantee 
     Program.
       The Senate amendment contained similar provisions.
       The conference agreement includes these provisions.
     Chemical demilitarization program (sec. 107)
       The budget request for the Army included $855.1 million for 
     the chemical agents and munitions destruction program.
       The House bill recommended no funding for Chemical Agents 
     and Munitions Destruction, Army, but contained a provision 
     (sec. 107) that would authorize $834.0 million for the 
     Department of Defense for the destruction of lethal chemical 
     agents in accordance with Section 1412 of the Department of 
     Defense Authorization Act for Fiscal Year 1986 (Public Law 
     99-145, 50 U.S.C. 1521) and for chemical warfare materiel of 
     the United States not covered by Section 1412 of such Act, a 
     $21.1 million reduction to the budget request.
       The Senate amendment recommended no funding for Chemical 
     Agents and Munitions Destruction, Army, but contained a 
     similar provision (sec. 107) that would authorize $780.1 
     million for destruction of the lethal chemical agents and 
     munitions stockpile pursuant to Section 1412 of the 
     Department of Defense Authorization Act for Fiscal Year 1986 
     and U.S. chemical warfare materiel not covered by Section 
     1412 of the Act, a $78.5 million reduction to the budget 
     request. Additionally, the Senate recommended that an 
     additional $3.0 million be made available to accelerate the 
     development and fielding of the Army's mobile munitions 
     assessment system. Additionally, the Senate would recommend 
     the transfer of the chemical demilitarization program to the 
     Defense Threat Reduction Agency.
       The conferees agree to a provision that would authorize 
     $803.0 million for the Department of Defense chemical agents 
     and munitions destruction program, to include: $124.7 million 
     for procurement; $172.8 for research and development; $508.6 
     million for operation and maintenance; and a reduction of 
     $3.0 million for revised economic assumptions. Of the amount 
     authorized for research and development, the conferees 
     recommend that an additional $5.0 million be made available 
     to accelerate the development and fielding of the Army's 
     mobile munitions assessment system and an additional $6.0 
     million be made available to demonstrate alternatives to the 
     baseline incineration process for the destruction of 
     assembled chemical munitions and to proceed from a 
     demonstration to the development of a pilot-scale facility.
       The conferees understand that additional funds above the 
     amount recommended in this Act may be necessary to 
     demonstrate viable alternative technologies, and encourage 
     the Department of Defense to review funds available in the 
     chemical agents and munitions demilitarization program from 
     prior year authorization and appropriations, as well as funds 
     available to the Department that have been identified as 
     sources in the most recent omnibus reprogramming (FY98-16PA) 
     forwarded to the Congress for approval, as possible sources 
     for such additional funds necessary for activities related 
     for the demonstration of alternative technologies to the 
     destruction of assembled chemical munitions.
       Section 1412(f) of the Department of Defense Authorization 
     Act for Fiscal Year 1986 requires that funds for the 
     destruction of the U.S. stockpile of lethal chemical agents 
     and munitions, including funds for military construction 
     projects necessary to carry out the demilitarization program, 
     shall be set forth in the budget of the Department of Defense 
     as a separate program and shall not be included in the budget 
     accounts for any military department. In the statement of 
     managers accompanying the National Defense Authorization Act 
     for Fiscal Year 1994 (H. Rept. 103-357), the conferees cited 
     this section in transferring the funds contained in the 
     fiscal year 1994 Army budget requests for the chemical 
     demilitarization program to a separate DOD account. Section 
     1412(e) of Public Law 99-145 further requires that the 
     management organization for the chemical munitions 
     destruction program shall be established within the 
     Department of the Army.
       The conferees agree that the defense chemical 
     demilitarization program should continue to be managed as a 
     major defense acquisition program with the Office of the 
     Secretary of Defense providing policy and program oversight, 
     the Secretary of the Army as executive agent for the 
     management and execution of the program, and the project 
     manager for the program for the assembled chemical weapons 
     assessment (ACWA) of alternative technologies reporting to 
     the Under Secretary of Defense for Acquisition and Technology 
     (until completion of the demonstration phase of the ACWA 
     program).

                       Subtitle B--Army Programs

     Multiyear procurement authority for Longbow Hellfire missile 
         program (sec. 111)
       The House bill contained a provision (sec. 111) that would 
     authorize the Secretary of the Army to enter into a multiyear 
     procurement contract for the Longbow Hellfire missile.
       The Senate amendment contained a similar provision (sec. 
     111).
       The Senate recedes.
       The conferees agree to authorize the Secretary of the Army 
     to enter into a multiyear contract for the Longbow Hellfire 
     missile.
     Condition for award of second-source procurement contract for 
         the family of medium tactical vehicles (sec. 112)
       The Senate amendment contained a provision (sec. 112) that 
     would require certain conditions to be met before the 
     Secretary of the Army could enter into a contract with more 
     than one manufacturer for the procurement of the family of 
     medium tactical vehicles (FMTV). The Senate supports Army 
     efforts to qualify a second source for FMTV trucks, if the 
     established conditions are met, and would support 
     acceleration of this effort if the Army determines that this 
     action could be accomplished within programmed resource 
     limitations.
       The House bill contained no similar provision.
       The House recedes with an amendment. Based on critical 
     shortfalls of modernized trucks within the Army, the 
     conferees direct the Secretary of the Army to ensure that 
     sufficient funding is programmed for any FMTV prime 
     contractor to maintain minimum economic production levels 
     necessary to sustain steady production and meet FMTV fielding 
     requirements. The conferees note existing funding levels, 
     constrained by modernization budget limitations, will result 
     in a break in production, increased costs, and delays in the 
     modernization process.
     Armored system modernization (sec. 113)
       The Senate amendment contained a provision (sec. 113) that 
     would require the Secretary of the Army to submit to the 
     congressional defense committees a report on Army armored 
     system modernization programs.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     $14.3 million for the M1A1D applique integration program and 
     $6.0 million for an M1A2 risk reduction program. Of the 
     amount authorized for the M1A1D applique integration program, 
     not more than $11.4 million may be obligated before the end 
     of the 30-day period beginning on the date on which the 
     Secretary of the Army submits the armored system 
     modernization report.
       Congress supports the development and fielding of the M1A1D 
     and authorizes $20.3 million to complete development and 
     testing, and to initiate fielding. The conferees are 
     concerned, however, about the risk inherent in the conversion 
     of the M1A2 to the Force XXI Battle Command Brigade and Below 
     (FBCB2) software and directs that $6.0 million of the $20.3 
     million be used to develop an M1A2 risk reduction effort. The 
     conferees recognize the Army's goal is to field only the 
     M1A1D and M1A2SEP variants, but want to ensure risk is 
     addressed.
       The conferees are also concerned that armor system 
     modernization plans, including the proposal to close the tank 
     plant in Lima, Ohio, do not adequately address future 
     operational requirements for armor systems, modernization and 
     upgrade requirements, and industrial base implications 
     associated with plans to bridge the gap between production of 
     existing armor systems and future combat platforms. The 
     conferees direct the Secretary of the Army to provide a 
     report on armor system modernization programs to the 
     congressional defense committees no later than January 31, 
     1999.
     Reactive armor tiles (sec. 114)
       The Senate amendment contained a provision (sec. 114) that 
     would require the Secretary of Defense, with input from the 
     Army and Marine Corps, to conduct a detailed assessment of 
     requirements for reactive armor tiles and provide a cost-
     benefit analysis of the procurement and installation of tiles 
     on selected armor vehicles. The provision would preclude any 
     expenditure of funds for armor tiles until 30 days after the 
     date on which the Secretary of Defense submits the results of 
     this study to the Congress.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Extension of authority to carry out Armament Retooling and 
         Manufacturing Support Initiative (sec. 115)
       The Senate amendment contained a provision (sec. 116) that 
     would extend the Armament Retooling and Manufacturing Support 
     Initiative through fiscal year 1999.
       The House bill contained no similar provision.
       The House recedes.

                       Subtitle C--Navy Programs

     CVN-77 nuclear aircraft carrier program (sec. 121)
       The Senate amendment contained a provision (sec. 121) that 
     would authorize $124.5 million for the advance procurement 
     and construction of components, including nuclear components, 
     for the CVN-77 aircraft carrier program.
       The House bill contained no similar provision.
       The House recedes.

[[Page H8288]]

     Increase in amount authorized to be excluded from cost 
         limitation for Seawolf submarine program (sec. 122)
       The Senate amendment contained a provision (sec. 122) that 
     would amend section 123(a) of the National Defense 
     Authorization Act for Fiscal Year 1998 by striking the amount 
     of $272.4 million and replacing it with the amount of $557.6 
     million as the amount excluded from the Seawolf submarine 
     program cost limitation.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Multiyear procurement authority for the Department of the 
         Navy (sec. 123)
       The House bill contained a provision (sec. 121) that would 
     authorize the Secretary of the Navy to enter into multiyear 
     contracts for the AV-8B, E-2C, and T-45 aircraft, and to 
     enter into a multiyear procurement contract to procure the 
     Marine Corps Medium Tactical Vehicle Replacement.
       The Senate amendment contained separate provisions (secs. 
     124-123) that would authorize the same multiyear 
     procurements.
       The Senate recedes.
     Annual General Accounting Office review of F/A-18E/F program 
         (sec. 124)
       The Senate amendment contained a provision (sec. 1034) that 
     would require an annual General Accounting Office review of 
     the F/A-18E/F program.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.

                     Subtitle D--Air Force Programs

     F-22 aircraft program (sec. 131)
       The Senate amendment contained a provision (sec. 133) that 
     would limit obligation of advance procurement funds for the 
     six Lot II F-22 aircraft. The provision would make funds 
     available after the completion of 10 percent of the F-22 
     flight test program, or alternatively, 30 days after the 
     Secretary of Defense submits a certification that:
       (1) of the number of flight test hours completed, if less 
     than 10 percent;
       (2) that a lesser amount of flight testing would be 
     sufficient for making a production decision, and the basis 
     for that determination; and
       (3) that it would be financially advantageous to proceed to 
     Lot II production rather than delay production until 
     completion of 10 percent of the flight testing.
       The House bill contained no similar provision.
       The House recedes with an amendment that would remove the 
     30 day delay period from the provision. The provision would 
     allow the Department to obligate advance procurement funds as 
     soon as the certification is submitted to the congressional 
     defense committees.
     C-130J aircraft program (sec. 132)
       The Senate amendment contained a provision (sec. 134) that 
     would require a report from the Secretary of Defense on the 
     C-130J aircraft program.
       The House bill contained no similar provision.
       The House recedes.

                       Subtitle E--Other Matters

     Chemical stockpile emergency preparedness program (sec. 141)
       The Senate amendment contained a provision (sec. 1080) that 
     would direct the Director of the Federal Emergency Management 
     Agency (FEMA) to carry out a program with state and local 
     governments to assist them in developing capabilities to 
     respond to public health or safety emergencies that may arise 
     from the destruction of lethal chemical agents and munitions 
     in the U.S. stockpile.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Director of FEMA, in accordance with a Memorandum of 
     Understanding (MOU) with the Department of the Army, to carry 
     out an emergency preparedness program with state and local 
     governments. The provision would also direct that funds, 
     appropriated in the defense account for this portion of the 
     chemical stockpile emergency preparedness program, be made 
     available to FEMA to implement its responsibilities pursuant 
     to the requirements of this provision. Lastly, the provision 
     would require the Secretary of Defense to include, in the 
     Department's annual report on the defense chemical agents and 
     munitions destruction program, information on actions taken 
     and grants provided to assist state and local governments to 
     develop their off-post emergency preparedness plans for 
     responding to chemical accidents or incidents at the eight 
     chemical stockpile storage installations.
     Alternative technologies for destruction of assembled 
         chemical weapons (sec. 142)
       The House bill contained a provision (sec. 141) that would 
     authorize $12.6 million for identification and demonstration 
     of alternative technologies to the baseline incineration 
     process for destruction of assembled chemical munitions in 
     the U.S. stockpile, and would direct the transfer of 
     management oversight responsibility for the program from the 
     Under Secretary of Defense for Acquisition and Technology 
     (USD, A&T) to the Secretary of the Army.
       The Senate amendment contained a provision (sec. 117) that 
     would provide authority for the program manager for the 
     Assembled Chemical Weapons Assessment (ACWA) to demonstrate 
     alternative technologies to the baseline incineration process 
     and to undertake post-demonstration activities necessary to 
     implement any such alternative technology, if it is proven 
     successful, and, would authorize $18.0 million for 
     demonstration of alternative technologies and planning and 
     preparation to proceed from demonstration to pilot-scale 
     testing. Additionally, the provision would require the Under 
     Secretary of Defense for Acquisition and Technology to 
     provide for two evaluations of the cost and schedule of an 
     alternative technology to baseline incineration to be 
     submitted to the Under Secretary by September 30, 1999. 
     Lastly, the provision would maintain the current program 
     manager for the Assembled Chemical Weapons Assessment, who 
     would continue to manage the development and testing 
     (including demonstration and pilot-scale testing) of 
     alternative technologies for the destruction of lethal 
     assembled chemical weapons, and would continue to operate 
     independently from the program manager for the baseline 
     chemical demilitarization program.
       The House recedes with an amendment that would require 
     the current program manager for the Assembled Chemical 
     Weapons Assessment to continue to manage the development, 
     testing, demonstration and pilot-scale testing of 
     alternative technologies for the destruction of assembled 
     chemical munitions and to act independently of the program 
     manager for the Department of Defense baseline 
     incineration program. In addition, the ACWA program 
     manager shall report to the Under Secretary of Defense for 
     Acquisition and Technology.
       The provision would also authorize the ACWA program manager 
     to carry out post-demonstration activities to ensure that an 
     alternative technology can be implemented immediately 
     following the successful demonstration of an alternative 
     technology, and the submission to Congress of a report on the 
     demonstration and a decision by the Under Secretary of 
     Defense for Acquisition and Technology to proceed with a 
     pilot-scale facility.
       In order to ensure that an alternative technology may be 
     demonstrated immediately, the conferees provide authority for 
     the program manager to take certain actions during fiscal 
     years 1998 and 1999 related to the establishment, 
     preparation, development and identification of activities 
     related to awarding a contract for a potential successful 
     alternative technology for assembled chemical munitions not 
     later than December 30, 1999.
       The conferees also direct the Under Secretary of Defense 
     for Acquisition and Technology to provide to Congress an 
     independent, nongovernmental evaluation of the cost and 
     schedule for any potential alternative technology resulting 
     from the ACWA demonstration activities.
       Lastly, if the Secretary of Defense decides to proceed with 
     a pilot program, the conferees direct that a report be 
     submitted to the congressional defense committees on the 
     Department's plan to conduct the pilot program, including 
     information on the cost and the schedule for the alternative 
     technology pilot program for destruction of assembled 
     chemical munitions.
       As noted elsewhere in the statement of managers on the 
     chemical agent and munitions destruction program (sec. 107), 
     the conferees understand that additional funds may be 
     necessary above the amounts recommended in this Act, as well 
     as for fiscal year 1998, to demonstrate viable alternative 
     technologies. The conferees encourage the Department of 
     Defense to review funds available in the chemical agents and 
     munitions demilitarization program from prior year 
     authorizations and appropriations, as well as funds available 
     to the Department which have been identified as sources in 
     the most recent omnibus reprogramming (FY98-16PA) forwarded 
     to the Congress for approval, as possible sources for any 
     additional funds necessary for activities related to the 
     demonstration of alternative technologies for the destruction 
     of assembled chemical munitions.

                   Legislative Provisions Not Adopted

     M1A2 system enhancement program step one
       The House bill contained a provision (sec. 112) that would 
     require the Army to use the $20.3 million included in the 
     budget request for M1A1D upgrade kits to instead procure M1A2 
     system enhancement program step one communications upgrades.
       The Senate amendment contained no similar provision.
       The House recedes.
     Annual reporting of costs associated with travel of members 
         of the chemical demilitarization citizenship advisory 
         commission
       The Senate amendment contained a provision (sec. 115) that 
     would amend section 1412(g)(2) of the National Defense 
     Authorization Act for Fiscal Year 1986 (Public Law 102-484) 
     to require that information on the travel costs of members of 
     the chemical demilitarization citizenship advisory commission 
     be included in the annual report to Congress on the chemical 
     and munitions destruction program.
       The House bill contained no similar provision.
       The Senate recedes.
     Joint surveillance target attack radar system
       The Senate amendment contained a provision (sec. 131) that 
     would authorize $72.0 million for the joint surveillance 
     target attack radar system (JSTARS), as follows:

[[Page H8289]]

       (1) advance procurement of long-lead items for two 
     additional E-8C JSTARS aircraft;
       (2) payment of expenses associated with termination of 
     production of JSTARS aircraft; or
       (3) development of an improved radar for the JSTARS.
       The House bill contained no similar provision.
       The Senate recedes.
     Limitation on replacement of engines on military aircraft 
         derived from Boeing 707 aircraft
       The Senate amendment contained a provision (sec. 132) that 
     would prevent the Secretary of Defense from obligating or 
     expending funds for reengining Department of Defense aircraft 
     derived from Boeing 707 aircraft until an overdue report was 
     submitted. The report was due in March 1998 and was not 
     received until July 13, 1998.
       The House bill contained no similar provision.
       The Senate recedes.

         Title II--Research, Development, Test, and Evaluation

     Research, Development, Test, and Evaluation Overview
       The budget request for fiscal year 1999 contained an 
     authorization of $36,078.6 million for Research and 
     Development in the Department of Defense. The House bill 
     would authorize $36,228.0 million. The Senate amendment would 
     authorize $35,942.2 million. The conferees recommended an 
     authorization of $36,007.9 million. Unless noted explicitly 
     in the statement of managers, all changes are made without 
     prejudice.

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     Overview
       The budget request for fiscal year 1999 contained an 
     authorization of $4,780.5 million for Army, Research and 
     Development in the Department of Defense. The House bill 
     would authorize $4,793.0 million. The Senate amendment would 
     authorize $4,816.1 million. The conferees recommended an 
     authorization of $4,657.0 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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     Additional decreases in technology base funding
       The conferees agree to include a number of decreases in 
     recognition of lack of congressional support for funding. 
     Among these are the following:

                                                            In millions
  PE 61102A--Defense Research Sciences............................-$8.0
  PE 61104A--University and Industry Research Centers..............-3.3
  PE 62308A--Modeling and Simulation Technology....................-4.5
  PE 64824A--DUAP Commercial Operations and Support Savings.......-10.0
  PE 64805N--Commercial Operations and Support Savings............-10.0
  PE 72207N--Depot Maintenance (Non-IF)...........................-20.0
  PE 64805F--Commercial Operations and Support Savings............-10.0
  PE 65122D--Industrial Capabilities Assessments...................-2.9

       Other similar decreases are noted elsewhere in the report.
       The conferees also agree to a number of decreases in 
     authorization to fund higher priority programs. Among these 
     decreases are the following:

                                                            In millions
  PE 62120A--Sensors and Electronic Survivability.................-$1.8
  PE 62211A--Aviation Technology...................................-1.9
  PE 65326A--Concepts Experimentation Program......................-6.9
  PE 65804N--Technical Information Services........................-2.5
  PE 27424F--Evaluation & Analysis Program........................-12.8

       Other similar decreases are noted elsewhere in the 
     statement of managers accompanying this Act.
     Materials technology
       The budget request included $10.1 million in PE 62105A for 
     materials technology research.
       The House bill would authorize an increase of $5.0 million 
     for hardened materials research for land warfare systems 
     applications.
       The Senate amendment would authorize an increase of $3.0 
     million for continuing hardened materials research in missile 
     composite structures and composite shroud assemblies.
       The House recedes.
     Missile technology
       The budget request included $25.2 million in PE 62303A for 
     missile technology.
       The House bill would authorize the budget request for 
     missile technology in PE 62303A, but would authorize an 
     increase of $8.0 million in scramjet technology development 
     in PE 63003A.
       The Senate amendment would authorize an increase of $3.0 
     million for scramjet technology in PE 62303A and an increase 
     of $1.5 million for research in acoustic effects in the same 
     program element.
       The House recedes.
     Combat vehicle and automotive technology
       The budget request included $40.1 million in PE 62601A for 
     combat vehicles and automotive technology.
       The House bill would authorize an increase of $10.0 million 
     for the innovative industry and academia alternative vehicle 
     propulsion technology initiative.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $2.5 
     million for the innovative alternative vehicle propulsion 
     technology developed within industry and the academic 
     community, as described in the House report (H. Rept. 105-
     532). The conferees further agree to a decrease of $5.0 
     million for the future infantry and combat system.
     Human factors engineering technology
       The budget request included $13.3 million in PE 62716A for 
     human factors engineering technology including $500,000 for 
     Emergency Team Coordination (MedTeams) program.
       The House bill would authorize an increase of $4.8 million 
     to complete the MedTeams program.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $4.8 
     million and note that the authorized funds will allow for the 
     completion of this program in fiscal year 1999, eliminating 
     the need for further funding.
     Environmental quality technology
       The budget request included $13.8 million for environmental 
     quality technology within PE 62720A.
       The House bill would authorize an increase of $16.0 
     million, with $4.0 million for the Radford Environmental 
     Development and Management Program (REDMAP), $3.0 million for 
     the Plasma Energy Pyrolysis System (PEPS), $4.0 million for 
     the Computer-Based Land Management Model, and $5.0 million 
     for the Agricultural Based Bioremediation.
       The Senate amendment would authorize an increase of $32.5 
     million, with $24.0 million for pollution prevention research 
     and development initiatives, to be awarded on a competitive 
     basis by the National Defense Center for Environmental 
     Excellence (PE 62720A), $3.5 million for REDMAP, and $5.0 
     million for PEPS.
       The conferees agree to authorize an increase of $5.0 
     million for PEPs, $3.5 million for REDMAP, $5.0 million for 
     Agricultural Based Bioremediation, and $3.0 million for the 
     Computer-Based Land Management Model in PE 62720A.
       The conferees also agree to authorize an increase of $20.0 
     million for pollution prevention research and development 
     initiatives, and direct the Department of the Army to 
     establish an Environmental Quality Technology (EQT) Budget 
     Activity Four Program Element to manage these additional 
     funds beginning in fiscal year 1999. The conferees direct the 
     Department to transfer project DE31, and any related funding, 
     from PE 78045A to this new program element, beginning in 
     fiscal year 2000 and continuing through fiscal year 2005. The 
     Department shall ensure that all applicable competitive 
     procedures are used in the award of contracts or other 
     agreements related to the obligation and expenditure of these 
     $20.0 million, and that cost-sharing requirements for non-
     federal participants be utilized where appropriate. The 
     conferees direct that these funds be used to develop new 
     materials and manufacturing processes for the purpose of 
     validating technology for installation of pollution abatement 
     and enhancing weapons systems performance and reducing life 
     cycle operations and maintenance costs. The Department shall 
     seek to accomplish this work by exploiting the capabilities 
     of the National Defense Center for Environmental Excellence 
     (NDCEE), where appropriate.
     Command, control, and communications technology
       The budget request included $19.7 million in PE 62782A for 
     command, control, and communications technology.
       The House bill would authorize an increase of $2.8 million 
     for the Army multi-media communications device.
       The Senate amendment would authorize the budget request.
       The Senate recedes.
     Military engineering technology
       The budget request included $37.5 million in PE 62784A for 
     military engineering technology including $3.3 million for 
     cold regions research.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $1.2 
     million for cold regions research.
       The House recedes.
     Medical advanced technology
       The budget request included $11.0 million in PE 63002A for 
     medical advanced technology.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $2.0 
     million for nutrition research.
       The House recedes.
     Aviation advanced technology
       The budget request included $30.0 million in PE 63003A for 
     aviation advanced technology.
       The House bill would authorize an increase of $2.0 million 
     for the Stinger universal launcher and an increase of $3.0 
     million to support comparative testing of Starstreak and 
     Stinger missiles for application to the Apache helicopter 
     program. The House bill would also authorize an increase of 
     $8.0 million for scramjet technology.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $5.0 
     million in PE 63003A, of which $2.0 million is for the 
     Stinger universal launcher and $3.0 million is to support 
     comparative testing of Starstreak and Stinger for application 
     to the Apache helicopter program. Scramjet funding is 
     addressed elsewhere in this statement of managers.
     Weapons and munitions advanced technology
       The budget request included $24.6 million in PE 63004A for 
     weapons and munitions advanced technology.
       The House bill would authorize an increase of $6.0 million 
     for the precision guided mortar munitions program, an 
     increase of $5.0 million for the future direct support weapon 
     system, and an increase $6.0 million for the trajectory 
     correctible munitions program.
       The Senate amendment would authorize an increase of $4.5 
     million for the precision guided mortar munitions program.
       The conferees agree to authorize an increase of $4.5 
     million for the precision guided mortar munitions program. 
     The conferees regret the inability to authorize an additional 
     $5.0 million for the future direct support weapon system 
     because of limitations on available appropriations. The 
     conferees urge the Army to consider reprogramming up to $5.0 
     million from other available funds to accelerate this 
     program. The authorization of additional funding for the 
     trajectory correctable munitions program is addressed 
     elsewhere in this statement of managers.
     Combat vehicle and automotive advanced technology
       The budget request included $54.4 million in PE 63005A for 
     combat vehicle and automotive advanced technology.
       The House bill would authorize an increase of $17.0 
     million, as follows:
       (1) $10.0 million for advanced lightweight composite 
     materials; and
       (2) $7.0 million for innovative engine technology.
       The Senate amendment would authorize an increase of $3.0 
     million for aluminum metal matrix development.
       The conferees agree to authorize an increase of $3.0 
     million for aluminum metal matrix technology development and 
     an increase of $2.0 million for innovative engine technology 
     development.
     Missile and rocket advanced technology
       The budget request included $86.1 million in PE 63313A for 
     missile and rocket advanced technology.

[[Page H8302]]

       The House bill and Senate amendment would authorize a total 
     decrease of $29.7 million, as follows:
       (1) a $35.7 million decrease for the enhanced fiber optic 
     guided missile (E-FOGM) program; and
       (2) a $6.0 million increase for the future missile 
     technology integration (FMTI) program.
       The conferees agree to authorize a decrease of $29.7 
     million for missile and rocket advanced technology, including 
     a decrease of $35.7 million for E-FOGM and an increase of 
     $6.0 million for FMTI.
     Joint service small arms program
       The budget request included $5.2 million in PE 63607A for 
     joint service small arms program.
       The House bill would authorize an increase of $3.5 million 
     for the objective crew served weapon (OCSW).
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $3.5 
     million for the OCSW program.
     Tactical high energy laser
       The budget request included no funds for the joint U.S.-
     Israel Tactical High Energy Laser (THEL) program.
       The House bill would authorize an increase of $10.0 million 
     for THEL and related advanced technologies.
       The Senate amendment would authorize an increase of $10.0 
     million to continue THEL testing and deployment activities.
       The conferees agree to authorize an increase of $10.0 
     million for the THEL program.
     Armament enhancement initiative
       The budget request included $26.5 million in PE 63639A for 
     the armament enhancement initiative program.
       The House bill would authorize an increase of $10.0 million 
     for the tank extended range munition-kinetic energy (TERM-KE) 
     program.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $4.0 
     million for the TERM-KE program.
     Comanche
       The budget request included $367.8 million in PE 64223A for 
     Comanche helicopter development.
       The House bill would authorize an increase of $62.0 million 
     to accelerate testing of the second Comanche prototype and 
     for other risk reduction efforts.
       The Senate amendment would authorize an increase of $24.0 
     million to accelerate flight testing of the second Comanche 
     prototype.
       The conferees agree to authorize an increase of $24.0 
     million to accelerate flight testing of the second Comanche 
     prototype.
     Electronic warfare development
       The budget request included $86.0 million in PE 64270A for 
     electronic warfare development.
       The House bill would authorize an increase of $5.0 million 
     for the Shortstop electronic protection system.
       The Senate amendment would authorize an increase of $8.6 
     million for advanced threat infrared countermeasures (ATIRCM) 
     development.
       The conferees agree to authorize an increase of $8.6 
     million for ATIRCM development.
     Follow-on to TOW
       The budget request included $48.1 million in PE 64325A for 
     continued development of the follow-on to TOW (FOTT) system.
       The House bill and the Senate amendment would authorize the 
     budget request.
       The conferees agree to a decrease of $35.0 million with the 
     remaining funds made available for restructured research and 
     development requirements associated with the TOW missile.
       The conferees note a recent Army decision to terminate the 
     FOTT program due largely to affordability concerns.
     Combat feeding, clothing, and equipment
       The budget request included $62.2 million to support 
     research and development activities associated with combat 
     feeding, clothing, and equipment development.
       The House bill and the Senate amendment would authorize the 
     budget request.
       The conferees agree to authorize a decrease of $4.0 million 
     that is no longer required due to contract modifications and 
     engineering change proposals.
     Aviation-engineering development
       The budget request included $6.6 million in PE 64801A for 
     aviation engineering development requirements.
       The House bill would authorize an increase of $5.0 million 
     in PE 63801A for retinal display technology.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $5.0 
     million in PE 64801A for retinal display technology 
     development.
     Weapons and munitions-engineering development
       The budget request included $37.7 million to support 
     requirements for improved weapons and munitions.
       The House bill and the Senate amendment would support the 
     budget request.
       The conferees agree to a decrease of $2.0 million as 
     contract savings no longer require the level of funding 
     requested.
       The conferees note that the Army contract for mortar fire 
     control systems did not require the level of funding 
     projected in the budget request.
     Landmine warfare/barrier-engineering development
       The budget request included $46.9 million in PE 64808A for 
     landmine warfare/barrier engineering development activities.
       The House bill and the Senate amendment would support the 
     budget request.
       The conferees agree to authorize a decrease of $5.5 million 
     no longer required for the remote anti-armor mine system 
     program due to a slip in the program and the recent approval 
     of a reprogramming action.
     Radar development
       The budget request included $2.8 million to support 
     improvements to existing ground based radar systems.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $4.0 
     million in PE 64820A for development of a passive adjunct 
     sensor capability for the Sentinel radar.
       The conferees agree to authorize an increase of $4.0 
     million to develop a passive adjunct sensor capability for 
     the Sentinel radar.
     Firefinder
       The budget request included $19.8 million in PE 64823A for 
     Firefinder radar development activities.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $0.9 
     million to accelerate new software development for the 
     Firefinder system.
       The conferees agree to authorize an increase of $0.9 
     million to accelerate software development.
     Artillery systems-engineering and manufacturing development
       The budget request included $0.1 million in PE 64854A for 
     artillery systems-engineering and manufacturing development.
       The House bill would authorize an increase of $13.0 
     million, as follows:
       (1) $8.0 million for digital fire control technology for 
     Crusader; and
       (2) $5.0 million for fire control technology for the 
     lightweight howitzer.
       The Senate bill would authorize the budget request.
       The conferees agree to authorize an increase of $2.5 
     million for lightweight 155 fire control technology.
     Decrease to Research, Development, Test and Evaluation 
         support programs
       The House bill would authorize a decrease of $9.8 million 
     to address insufficiently justified program growth in 
     Research, Development, Test and Evaluation (RDT&E) support 
     programs.
       The Senate amendment would authorize a decrease of $27.0 
     million to address concerns regarding the management, 
     infrastructure and support programs in the RDT&E budget.
       The conferees agree to a total decrease of $42.8 million, 
     as follows:

                                                            In millions

Army:
  PE 64759A--Major test & evaluation support......................-$1.0
  PE 65301A--Kwajalien............................................-14.0
Navy:
  PE 65152N--Studies & analysis support............................-1.0
  PE 65853N--Management, technical & International support........-11.0
  PE 65863N--RDT&E ship & aircraft support.........................-2.0
  PE 65864N--Test & evaluation support.............................-5.8
Air Force:
  PE 65807F--Test & evaluation support.............................-4.0
  PE 65808F--Development planning..................................-2.0
Defense Agencies:
  PE 65804D--Developmental test & evaluation.......................-2.0

       The conferees intend that the decrease taken in PE 65853N 
     should not affect project X2222, and that this particular 
     project be moved from this program element to a more 
     appropriate place in the budget.
     Army technical test instrumentation and targets
       The budget request included $33.4 million in PE 65602A for 
     Army technical test instrumentation and targets.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $7.0 
     million for instrumentation and targets.
       The conferees agree to authorize an increase of $7.0 
     million for instrumentation and targets.
     Survivability/lethality analysis
       The budget request included $30.5 million in PE 65604A for 
     survivability/lethality analysis.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $4.0 
     million for information warfare vulnerability assessments.
       The conferees agree to authorize $4.0 million for 
     information warfare vulnerability assessments.
     Department of Defense high energy laser test facilities
       The budget request included $15.0 million in PE 65605A for 
     Department of Defense high energy laser test facility.

[[Page H8303]]

       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $8.0 
     million for solid state laser technology, and urged the Army 
     to devote $1.5 million to address issues involving crystal 
     growth manufacturing.
       The House recedes.
     Multiple launch rocket system product improvement program
       The budget request included $20.2 million for the multiple 
     launch rocket system (MLRS) product improvement program.
       The House bill would authorize an increase of $6.0 million 
     to accelerate development of high mobility artillery rocket 
     system (HIMARS).
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize a net increase of $4.2 
     million, including an increase of $6.0 million for HIMARS 
     research and development activities, and a decrease of $1.8 
     million for contract savings.
     Advanced field artillery tactical data system
       The budget request included $35.1 million in PE 23726A for 
     the advanced field artillery tactical data system (AFATDS).
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $12.5 
     million for airspace deconfliction and technical fire support 
     enhancements.
       The conferees agree to authorize a net increase of $5.3 
     million in PE 23726A, including an increase of $12.5 million 
     for airspace deconfliction and technical fire support 
     enhancements and a decrease of $7.2 million for AFATDS 2000 
     development activities.
     Combat vehicle improvement programs
       The budget request included $94.8 million in PE 23735A for 
     combat vehicle improvment programs.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $7.0 
     million for flat panel display technology development.
       The conferees agree to authorize an increase of $7.0 
     million for flat panel display technology development.
     Aircraft engine component improvement program
       The budget request included $2.9 million to develop 
     improvements for Army aircraft engines.
       The House bill would authorize an increase of $5.0 million 
     for research and development of improved aircraft fuel pumps 
     and an increase of $4.0 million for full authority digital 
     engine control (FADEC) systems.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $7.0 
     million, including $4.0 million for support research and 
     development requirements for improved aircraft fuel pumps and 
     $3.0 million for FADEC systems.
     Force XXI warfighting rapid acquisition program
       The budget request included $99.5 million in PE 23761A to 
     support procurements required for Army experimentation.
       The House bill and the Senate amendment would authorize the 
     budget request.
       The conferees agree to a decrease of $30.0 million.
     Missile/air defense product improvement program
       The budget request included $11.3 million to develop 
     improvements for Army missile and air defense systems.
       The House bill would authorize an increase of $12.0 million 
     for further development of the Stinger block II air defense 
     missile.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $6.0 
     million to support research and development requirements for 
     the Stinger block II missile system.
     Defense information technology test bed
       The budget request included no funding in PE 23726A for the 
     defense information technology test bed (DITT).
       The House bill would authorize an increase of $6.6 million 
     for DITT. This effort will establish a fully electronic 
     virtual intelligence archive for use by battlefield 
     commanders.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $5.0 
     million for the development of a DITT program.
     Information systems security program
       The budget request included $7.4 million in PE 303140A to 
     meet information system security requirements.
       The House bill would authorize an increase of $5.0 million 
     to continue the demonstration program for military health 
     care information protection.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $5.0 
     million to support continued development and demonstration of 
     military healthcare information protection measures.
     Manufacturing technology
       The budget request included $150.7 million for the 
     Department of Defense manufacturing technology (MANTECH) 
     program including: $14.5 million in PE 78045A; $59.0 million 
     in PE 78011N; $51.0 million in PE 78011F; and $26.2 million 
     in PE 78011S.
       The House bill would authorize an increase of $43.2 million 
     for MANTECH: $27.2 million in PE 78045A; $8.6 million in PE 
     78011N; and, $7.4 million in PE 78011F.
       The conferees agree to an increase of $21.8 million: $13.2 
     million for munitions manufacturing efforts within the Army 
     MANTECH program (PE 78045A) and $8.6 million in the Navy 
     MANTECH program (PE 78011N) to address program shortfalls. 
     The conferees expect the additional funds to be awarded using 
     competitive procedures based on the technical priorities 
     established by the Army MANTECH technical council and the 
     Navy MANTECH steering committee.
     Overview
       The budget request for fiscal year 1999 contained an 
     authorization of $8,108.9 million for Navy, Research and 
     Development in the Department of Defense. The House bill 
     would authorize $8,403.6 million. The Senate amendment would 
     authorize $8,188.9 million. The conferees recommended an 
     authorization of $8,305.0 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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[[Page H8314]]

     Marine mammal research
       The budget request included $347.9 million in PE 61153N for 
     the Navy's defense research and sciences program.
       The House bill would authorize the use of $500,000 from 
     funds provided in PE 61153N for continuation of the Navy's 
     cooperative marine mammal research program.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize the use of $500,000 from 
     funds provided in PE 61153N for continuation of the Navy's 
     cooperative marine mammal research program.
     Pulse detonation engine technology
       The budget request included $37.1 million in PE 62111N for 
     air and surface launched weapons technology.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $1.0 
     million for pulse detonation engine technology.
       The conferees agree to authorize an increase of $1.0 
     million for pulse detonation engine technology.
     Stainless steel double hull research
       The budget request included $43.2 million in PE 62121N for 
     ship, submarine and logistics technology.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $3.0 
     million for stainless steel double hull research.
       The conferees agree to authorize an increase of $3.0 
     million for stainless steel double hull research.
     Communications, command, control, and intelligence
       The budget request included $65.0 million in PE 62232N for 
     communications, command, control, and intelligence.
       The House bill would authorize an additional $1.0 million 
     for hybrid fiberoptic/wireless communication systems.
       The Senate amendment would authorize a decrease of $5.0 
     million for the strategic sustainment program with the 
     communications, command, control, and intelligence account.
       The conferees agree to authorize a net decrease of $5.0 
     million in PE 62232N, including an increase of $1.0 million 
     for the hybrid fiberoptic/wireless communications systems and 
     a decrease of $6.0 million for the strategic sustainment 
     program.
     Materials, electronic and computer technology
       The budget request included $77.6 million in PE 62234N for 
     materials, electronic and computer technology.
       The House bill would authorize an increase of $12.0 
     million, including $2.5 million for thermal management 
     materials, $3.0 million for cryoelectronics waveform 
     generator, $3.5 million for silicon carbide technology, and 
     $3.0 million for carbon/carbon heatshields.
       The Senate amendment would authorize an increase of $6.0 
     million, including $1.5 million for thermal management 
     materials; $2.0 million for electronic propulsion technology, 
     and $2.5 million for carbon/carbon heatshields.
       The conferees agree to authorize a net increase of $13.5 
     million in PE 62234N, including an increase of $2.5 million 
     for thermal management materials, an increase of $2.5 million 
     for carbon/carbon heat shield, an increase of $3.0 million 
     for the cryoelectronics waveform generator, an increase of 
     $3.5 million for silicon carbide technology, and an increase 
     of $2.0 million for the development of applied high 
     temperature superconducting technology for synchronous AC 
     electronic propulsion.
     Autonomous underwater vehicle and sonar development
       The budget request included $56.7 million in PE 62435N for 
     oceanographic and atmospheric technology.
       The House bill would authorize an increase of $10.0 million 
     for advanced sensors and unmanned underwater vehicle 
     technologies.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $10.0 
     million for advanced sensors and unmanned underwater vehicle 
     technologies.
     Micro electronic systems technology
       The budget request included $2.0 million in PE 62633N for 
     undersea warfare weaponry technology.
       The House bill would authorize an increase of $2.0 million 
     for micro electronic systems technology.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $2.0 
     million for micro electronic systems technology.
     Air systems and weapons advanced technology
       The budget request included $48.1 million in PE 63217N for 
     air systems and weapons advanced technology.
       The House bill would authorize a net decrease of $2.0 
     million, including a decrease of $7.0 million for the 
     vectoring, extremely short take-off and landing control 
     tailless operation research (VECTOR) project and an increase 
     of $5.0 million for the completion of the DP-2 proof of 
     concept demonstration.
       The Senate amendment would authorize the budget request.
       The Senate recedes.
     Precision strike and air defense technology
       The budget request included $58.3 million in PE 63238N for 
     precision strike and air defense technology research.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $5.0 
     million for mobile offshore base (MOB) research.
       The conferees agree to authorize a net decrease of $4.9 
     million to PE 63238N, including an increase of $4.0 million 
     for MOB research and a decrease of $8.9 million to fleet 
     advanced demonstrations.
     Advanced electric systems studies
       The budget request included $14.8 million in PE 63508N for 
     fabrication, demonstration, development, and concept studies 
     for quiet electric propulsion motor technologies.
       The House bill would authorize the budget request.
       The Senate amendment would authorize a decrease of $1.0 
     million in PE 63508N to eliminate premature studies and 
     reduce intermediate scale development.
       The House recedes.
     Power electronic building blocks and power node control 
         centers
       The budget request included $39.3 million in PE 63508N for 
     surface ship and submarine hull, mechanical, and electrical 
     advanced technology. The budget request included funding to 
     continue the development and demonstration of power 
     electronic building blocks and power node control centers for 
     shipboard electrical power systems.
       The House bill would authorize an increase of $6.0 million 
     in PE 63508N to continue the program to accelerate the 
     development of power electronic building block technology and 
     the use of virtual prototyping and a virtual test bed to 
     demonstrate and evaluate advanced shipboard electrical power 
     system concepts. The House bill would also authorize an 
     increase of $2.0 million in PE 63508N to continue the 
     development of power node control centers for advanced 
     electrical distribution system fault detection, switching, 
     reconfiguration, and control of shipboard electrical systems.
       The Senate amendment would authorize the budget request.
       The Senate recedes.
     Composite helicopter hangar
       The budget request included no funding for continuation of 
     a program to design and fabricate the outer shell of a DDG-51 
     helicopter hangar structure using composite materials.
       The Senate amendment would authorize an increase of $5.0 
     million in PE 63508N to continue a developmental effort to 
     design and fabricate the outer shell of a DDG-51 helicopter 
     hangar structure using composite materials.
       The House bill would authorize the budget request.
       The House recedes.
     Marine Corps advanced technology demonstration
       The budget request included $41.9 million for the Marine 
     Corps advanced technology demonstration activities associated 
     with the Commandant's warfighting laboratory.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $10.0 
     million dollars for acceleration of warfighting 
     experimentation activities, including $5.0 million for the 
     second phase continued evaluation of the broad-area unmanned 
     retail and re-supply operation (BURRO). The Senate amendment 
     would also authorize an increase of $1.0 million for 
     evaluation of the K-band training/test instrumentation 
     system.
       The conferees agree to authorize an increase of $11.0 
     million in PE 63640M, including $10.0 million for 
     acceleration of warfighting experimentation, to include $5.0 
     million of this amount for the evaluation of the BURRO 
     concept, and $1.0 million for evaluation of the K-band 
     training/test instrumentation system.
       The conferees note that the Senate report (S. Rept. 105-
     189) would direct the Secretary of the Navy to provide a 
     report on the long-term plan for developing a ``red team'' 
     countermeasures efforts activity to keep pace with the 
     warfighting experiment efforts. The Secretary was directed to 
     provide the report to the congressional defense committees by 
     May 15, 1999. Pending submission of the report, obligation of 
     funds for the warfighting laboratory effort would have been 
     limited to no more than 85 percent of the funds available.
       The conferees acknowledge the ongoing work on the ``red 
     team'' effort and that the Marine Corps and Navy will be able 
     to submit the required report on schedule. However, the 
     Marine Corps has indicated that limiting obligations of funds 
     until the report is submitted may cause the Department to 
     forego some efforts that are important pieces of the Urban 
     Warrior exercise.
       The conferees agree that the Secretary should submit the 
     report as directed in the Senate report. However, the 
     conferees further agree that the limitation on obligation is 
     not needed to ensure timely submission of the report and 
     could be counterproductive to this important experimentation 
     effort.
     Freeze dried blood
       The budget request included $18.7 million in PE 63706N for 
     medical development.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $1.0 
     million for freeze dried blood research.
       The conferees agree to authorize an increase of $1.0 
     million for freeze dried blood research.

[[Page H8315]]

     Advanced lightweight influence sweep system
       The budget request included $4.2 million for advanced mine 
     sweeping.
       The Senate amendment would authorize an increase of $1.0 
     million to PE 603782N for the advanced lightweight influence 
     sweep system (ALISS) which is focused on developing high 
     temperature superconducting magnets and acoustic transducers 
     to sweep influence mines targeted against specific classes of 
     Navy ships.
       The House bill would authorize the budget request.
       The conferees agree to authorize $1.0 million for ALISS.
     Aviation survivability
       The budget request included $8.2 million in PE 63216N for 
     aviation survivability equipment.
       The House bill would authorize an increase of $6.0 million 
     as follows:
       (1) $3.0 million for ejection seats; and
       (2) $3.0 million for the Escape System Dynamic Flow Test 
     Facility.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $3.0 
     million for the Escape System Dynamic Flow Facility.
     ASW systems development
       The budget request included $20.1 million for ASW systems 
     development.
       The House bill would authorize an increase of $3.0 million 
     for ASW systems development.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $3.0 
     million to continue the development and testing of advanced 
     anti-submarine warfare technologies on the BEARTRAP platform.
     Studies and experiments for combat systems engineering
       The budget request included $8.6 million for studies and 
     experiments for advanced combat systems engineering that, 
     potentially, could be leveraged into new ship class computer 
     architectures.
       The Senate amendment would authorize a decrease of $2.0 
     million in PE 63382N for studies and experiments not directly 
     connected to correcting warfighting deficiencies in 21st 
     century platforms.
       The House bill would authorize the budget request.
       The conferees agree to authorize a decrease of $2.0 million 
     in PE 63382N.
     Remote minehunting system
       The budget request included $73.5 million in PE 63502N for 
     surface and shallow water mine countermeasures demonstration 
     and validation, including $11.0 million for the remote 
     minehunting system (RMS). The budget request also included 
     $32.9 million for procurement of minesweeping system 
     replacement equipment.
       The House bill would authorize an increase of $7.0 million 
     in PE 63502N to continue accelerated development and fielding 
     of the RMS. The House bill would approve the procurement 
     budget request.
       The Senate amendment would authorize a transfer of $15.9 
     million included in the budget request for procurement to PE 
     63502N for RMS research and development. This shift would 
     enable the Navy to develop the modular V4 design to 
     accommodate advanced sensors for RMS.
       The conferees agree to authorize a decrease of $15.9 
     million for the procurement of RMS and an increase of $7.0 
     million in PE 63502N for RMS.
     Future aircraft carrier transition technology
       The budget request included a total of $190.1 million for 
     future aircraft carrier research and development (R&D) and 
     feasibility studies including $149.5 million in PE 63512N and 
     $40.6 million in PE 63564N. The budget request also included 
     $38.5 million in PE 64567N for CVN-77 contract design.
       The House bill and the Senate amendment would authorize the 
     budget request. The House bill contained a provision (sec. 
     212) that would authorize $50.0 million of those funds for 
     CVN-77 technologies that would be applicable to both CVN-77 
     and CV(X). The Senate amendment contained a similar provision 
     (sec. 212) that would direct that the $50.0 million be 
     applied exclusively to CVN-77 technologies.
       The conferees strongly endorse the need to develop new 
     technologies that will reduce life cycle costs and improve 
     operational effectiveness of future aircraft carriers. The 
     Chief of Naval Operations has advised the conferees that the 
     most pressing need for the CV(X) is the initial development 
     of a next generation propulsion plant of sufficient 
     flexibility to support future technology insertion and 
     performance improvements, while reducing propulsion plant 
     life cycle costs.
       The conferees note a recent Navy decision to alter the 
     design for the first CV(X). The conferees understand that the 
     Navy's new plan to transition to the next generation aircraft 
     carrier will be an evolutionary development in which carrier 
     design changes will be incremental over several of the first 
     generation of CV(X) carriers.
       Unfortunately, the congressional defense committees were 
     provided with conflicting information regarding the Navy's 
     purported change in plans regarding CV(X) and the Navy's 
     intentions for near-term and Future Years Defense Program 
     funding. These mixed communications are only now being sorted 
     out. In the meantime, this conflicting information has caused 
     some of the congressional defense committees to propose 
     significant reductions to the budget request for fiscal year 
     1999 CV(X) R&D funding.
       The conferees agree to authorize a reduction of $80.0 
     million in PE 63512N without prejudice due to the ongoing 
     refinement of the Navy's planning for CV(X). The conferees 
     would be very receptive to a Navy request for additional 
     authorization of CV(X) funding for fiscal year 1999 once the 
     Navy makes available the restructured CV(X) plan and 
     supporting documentation. The conferees strongly encourage 
     the Secretary of Defense to submit such a request once the 
     restructured CV(X) plan is completed.
       The conference agreements include a provision on CVN-77 R&D 
     funding (sec. 212) which is addressed elsewhere in this 
     report.
     Shipboard systems component development
       The budget request included $27.7 million for surface ship 
     non-propulsion system component development.
       The House bill would authorize an increase of $1.0 million 
     in PE 63513N for the qualification and testing required to 
     develop a new 150-kilowatt static frequency converter.
       The Senate amendment would authorize the budget request.
       It has come to the attention of the conferees that fiscal 
     year 1999 test article procurement, installation and 
     implementation programs assume low risk scenarios for 
     research scheduled for fiscal year 1998 and early fiscal year 
     1999. These low risk scenarios are not supported by available 
     documentation. Therefore, the conferees agree to a decrease 
     of $2.0 million to PE 63513N.
       The conferees also agree to authorize an increase of $1.0 
     million in PE 63513N for the qualification and testing 
     required to develop a new 150-kilowatt static frequency 
     converter.
     SSGN study
       The budget request did not include funding for analyzing 
     alternatives for converting Trident submarines for use in 
     other than strategic missions.
       The Senate amendment would authorize an increase of $1.0 
     million to PE 63564N for the Secretary of Defense to conduct 
     an analysis of converting some of the Trident SSBNs to SSGN-
     configuration and would direct the Secretary to provide a 
     report of the analysis to the congressional defense 
     committees no later than March 1, 1999.
       The House bill would authorize the budget request.
       The House recedes.
     Intercooled recuperated gas turbine engine
       The budget request included $23.5 million in PE 63573N for 
     continued development of the inter-cooled recuperated (ICR) 
     gas turbine engine. The budget request would also continue 
     testing of the ICR gas turbine engine under Memoranda of 
     Understanding (MOUs) with the United Kingdom and France.
       The House bill would authorize the budget request. The 
     House report (H. Rept. 105-532) would direct the Secretary of 
     the Navy to provide an updated report on the resolution of 
     technical, programmatic, and funding issues required to 
     insure a stable development program supported by the fiscal 
     year 2000 budget request. The House report would also require 
     consideration of the ICR engine among the alternatives for 
     the prime power plant for the DD-21 land attack destroyer.
       The Senate amendment would authorize an increase of $5.0 
     million in PE 63573N for continued development and testing of 
     the ICR engine.
       The conferees agree to authorize the budget request.
       The conferees are aware that negotiations are underway 
     among MOU signatories to restructure the ICR program. This 
     restructuring would bring the engine to a point where it 
     could be an industry candidate for DD-21 vice a fully 
     government qualified engine. The conferees understand that 
     this would involve completing a second 500 hour test and 
     conducting a fifth design review. The 3000 hour test and 
     other efforts would be transitioned to other signatories of 
     the MOUs who intend to evaluate the ICR as the prime mover 
     for the Common New Generation Frigate program.
       The conferees believe that this is a reasonable approach to 
     further ICR development and the Navy should consider the ICR 
     engine as a competitor for serving as the prime mover in 
     future Navy ships.
     Environmentally safe energetic materials
       The budget request included $39.8 million in PE 63609N for 
     conventional munitions demonstration and validation.
       The House bill would authorize an increase of $3.0 million 
     in PE 63609N to accelerate the program for the development of 
     propellants and explosives that utilize environmentally 
     compliant energetic materials for undersea, surface, and 
     other weapons systems.
       The Senate would authorize the budget request.
       The conferees agree to authorize an increase of $3.0 
     million in PE 63609N to accelerate the program for the 
     development of propellants and explosives that utilize 
     environmentally compliant energetic materials for undersea, 
     surface, and other weapons systems.
     Marine Corps assault vehicles
       The budget request included $104.8 million for Marine Corps 
     assault vehicle research and development activities.
       The House bill would authorize an increase of $4.0 million 
     for further development of additional propulsion and 
     suspension alternatives for the advanced amphibious assault 
     vehicle (AAAV).

[[Page H8316]]

       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $4.0 
     million for unfunded research and development requirements of 
     the AAAV.
     Marine Corps ground combat/support system
       The budget request included $37.1 million for Marine Corps 
     ground combat/support research and development activities.
       The budget request included no funds in either the Army or 
     Marine Corps research and development programs for improving 
     howitzer capability by continuing development of trajectory 
     correctable munitions (TCM).
       The House bill would authorize an increase of $2.5 million 
     for further development of lightweight 155mm howitzer 
     requirements. The House bill would also authorize an increase 
     of $6.0 million in PE63004A to continue Army development of 
     TCM.
       The Senate amendment would authorize an increase of $4.0 
     million for the Predator missile system to maintain the 
     development and fielding schedule.
       The conferees agree to authorize an increase of $9.5 
     million for Marine Corps ground combat and support system 
     research and development requirements. Of this amount, $2.5 
     million is for research and development requirements of the 
     lightweight 155mm howitzer, $2.0 million is to support 
     Predator system development and fielding schedule, and 
     $5.0 million is for development of TCM. The conferees note 
     that the Army has demonstrated a lack of commitment to 
     continue TCM development and believe there could be 
     application for TCM technology within the Marine Corps' 
     concept of operations. The conferees direct the Marine 
     Corps to provide the congressional defense committees a 
     report, no later than 31 January 1999, on a concept of 
     operations for using TCM in Marine Corps operations and on 
     TCM program development plans and procurement forecast.
     Aviation depot maintenance
       The budget request included $59.4 million in PE 63721N for 
     environmental protection demonstration and validation, 
     including $3.5 million for Naval aviation pollution 
     prevention.
       The House bill would authorize an increase of $2.7 million 
     for the development and demonstration of aviation depot 
     maintenance technologies that will significantly reduce 
     maintenance and repair costs and reduce or eliminate 
     hazardous waste and pollution products.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $2.7 
     million in PE 63721N for the development and demonstration of 
     aviation depot maintenance technologies to reduce overall 
     costs and enhance pollution prevention measures.
     Naval surface fire support system integration
       The budget request included $21.6 million for a new 
     initiative to develop surface fire support planning and 
     control systems for the 5-inch 62 gun on DDG-51 ships and the 
     155mm vertical gun for the future DD-21 class of ships.
       The Senate amendment would authorize a decrease of $7.7 
     million to PE 63795N to eliminate the possibility of 
     developing a stand-alone system for DD-21.
       The House bill would authorize the budget request.
       The conferees agree to authorize a reduction of $1.6 
     million.
     Vertical gun for advanced ships
       The budget request included $25.1 million in PE 63795N for 
     a new initiative to develop a prototype vertical gun for 
     land-based testing.
       The House bill would authorize a decrease of $20.0 million 
     due to the lack of a thorough analysis of gun system 
     alternatives and sufficient consideration of gun and missile 
     system technical requirements and operational roles.
       The Senate amendment contained a similar provision that 
     would authorize a decrease of $10.0 million.
       The conferees authorize a decrease of $10.0 million in PE 
     63795N and direct the Secretary of the Navy to report to the 
     congressional defense committees the results of an analysis 
     of all advanced gun designs, as well as ammunition 
     availability for those designs, prior to the obligation of 
     funds for a prototype advanced gun system.
     Joint strike fighter
       The budget request included $463.4 million in PE 63800N for 
     the joint strike fighter (JSF).
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $15.0 
     million for the JSF alternate engine program.
       The conferees agree to authorize an increase of $15.0 
     million for the JSF alternate engine program.
     Nonlethal weapons and technologies of mass protection program
       The budget request included $22.6 million for the nonlethal 
     weapons (NLW) and technologies program (PE 63851M).
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase to the 
     budget request of $13.3 million for the following activities, 
     including $6.3 million for the development and fielding of 
     near-term, low-technology NLW technologies and $7.0 million 
     for the development of nonlethal tactical denial systems. The 
     Senate amendment would make available $2.0 million for 
     activities of the Human Effects Panel of the Joint Non-Lethal 
     Directorate and $500,000 for complete type classification of 
     non-lethal weapons technology that can be mounted on existing 
     weapons, such as M4 carbines and M16 rifles.
       The House recedes.
       The conferees remain concerned that the Department of 
     Defense and the military services continue to conduct 
     research and development on NLW activities that benefit all 
     services outside the purview of the established defense NLW 
     program, and without oversight by the executive agent, the 
     Marine Corps. The conferees endorse the position expressed in 
     the Senate report (S. Rept. 105-189) that ``all'' nonlethal 
     weapons technology research and development be consolidated 
     into a single program element, with management and oversight 
     of the program conducted by the Marine Corps, as executive 
     agent.
     Commercial off-the-shelf insertion just prior to critical 
         design review for helicopter improvement
       The budget request included $231.1 million in PE 64212N for 
     antisubmarine warfare and other helicopter development. Of 
     this amount, $25.0 million would continue efforts to 
     incorporate commercial off-the-shelf (COTS) technology during 
     the two fiscal quarters prior to a second critical design 
     review.
       The House bill would authorize the budget request.
       The Senate amendment would authorize a decrease of $1.0 
     million in PE 64212N to insert COTS technology.
       The conferees agree to authorize a decrease of $1.0 million 
     in PE 64212N to insert COTS technology.
     Parametric airborne dipping sonar
       The budget request included no funding for the parametric 
     airborne dipping sonar (PADS).
       The Senate amendment would authorize an increase of $8.0 
     million in PE 64212N for the continued development of PADS.
       The House bill would authorize the budget request.
       The conferees agree to authorize an increase of $8.0 
     million in PE 64212N for the continued development of PADS.
     Common support aircraft
       The budget request included $27.1 million in PE 64217N for 
     the Common Support Aircraft (CSA).
       The House bill would authorize a decrease of $27.1 million 
     for the CSA program.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize a decrease of $27.1 
     million for the CSA program.
     Electronic warfare development
       The budget request included $128.6 million in PE 64270N for 
     electronic warfare.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $10.0 
     million for the Integrated Defensive Electronic 
     Countermeasures (IDECM) system.
       The conferees agree to authorize an increase of $9.3 
     million in PE 64270N to accomodate a restructure of the IDECM 
     program, offset by a decrease of $9.3 million in line 43, 
     Aircraft Procurement Navy.
     Laboratories and field activities monitoring efforts
       The budget request included $132.5 million for surface 
     combatant combat system engineering in PE 64307N, including 
     $19.2 million was requested for laboratory and field activity 
     unspecified scientific services for monitoring baseline 
     efforts.
       The Senate amendment authorized a decrease of $3.0 million 
     to unspecified scientific services.
       The House bill would authorize the budget request.
       The conferees agree to authorize a decrease of $3.0 million 
     to unspecified scientific services.
     DDG-51 composite director room
       The budget request in PE 64307N did not include funding for 
     design and test of a composite director room for the DDG-51 
     class of ships.
       The Senate amendment would authorize an increase of $5.0 
     million in PE 64307N for continuation of a project to design 
     and test a composite director room for the DDG-51 class of 
     ships. The House bill would authorize the budget request.
       The conferees agree to authorize an increase of $2.5 
     million in PE 64307N for continuation of a project to design 
     and test a composite director room for the DDG-51 class of 
     ships.
     Multi-purpose processor
       The budget request included $37.2 million for submarine 
     sonar improvement. The multi-purpose processor (MPP) is the 
     result of a small business innovative research (SBIR) 
     initiative developed under the sponsorship of the new nuclear 
     attack submarine (NSSN) program.
       The House bill would authorize an increase of $15.0 million 
     to continue the research and development necessary for the 
     introduction of MPP technology in submarine and other naval 
     sonar systems.
       The Senate amendment would authorize an increase of $15.0 
     million in PE 64503N for continuation of the SBIR follow-on 
     for advanced development of MPP transportable software

[[Page H8317]]

     technology, technology insertion, advanced processor software 
     builds, and for providing MPP units and training throughout 
     the fleet and the Navy research and development community.
       The conferees agree to authorize an increase of $15.0 
     million in PE 64503N for continuation of the SBIR follow-on 
     for advanced development of MPP transportable software 
     technology, technology insertion, advanced processor software 
     builds, and for providing MPP units and training throughout 
     the fleet and the Navy research and development community.
     Air control
       The budget request included $4.2 million in PE 64450N for 
     air control research.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $4.0 
     million for the expeditionary common automatic recovery 
     system (ECARS). The ECARS is a lightweight, man-portable 
     instrument landing system capable of providing azimuth and 
     glide slope information to manned aircraft and UAVs.
       The conferees agree to authorize an increase of $4.0 
     million to PE 64504N for ECARS development.
     Submarine sonar domes
       The budget request included $218.8 million in PE 64558N for 
     the New Design SSN (NSSN) program.
       The House bill would authorize an increase of $7.0 million 
     in PE 64558N to complete fabrication of a full-scale sonar 
     dome using this acoustic sandwich material system for further 
     evaluation and testing.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $7.0 
     million to determine whether an acoustic sandwich material 
     sonar dome system is capable of meeting submarine 
     requirements for sonar domes.
     NSSN advanced technology insertion
       The budget request included $218.8 million in PE 64558N for 
     the New Attack Submarine (NSSN) program, including $146.4 
     million for NSSN hull, mechanical, and electrical systems 
     development, and $72.5 million for NSSN combat systems 
     development.
       The House bill would authorize an increase of $10.0 million 
     for the development of high priority submarine technologies 
     that are currently unfunded and the insertion of these 
     technologies into the NSSN program. The House bill also 
     encouraged the Navy to reprogram from within available funds 
     the procurement funding (less than $5.0 million) necessary to 
     complete the technology insertion in the appropriate NSSN 
     hulls.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $8.0 
     million in PE 64558N for the development of high priority 
     submarine technologies that are currently unfunded and the 
     insertion of these technologies into the NSSN program.
     Non-propulsion electronics system
       The budget request included $218.8 million in PE 64558N for 
     New Attack Submarine (NSSN) non-propulsion development.
       The Senate amendment would authorize an increase of $12.0 
     million for integration of 15 non-propulsion electronics 
     system (NPES) subsystems to reduce NSSN life-cycle costs.
       The House bill would authorize the budget request.
       The conferees agree to authorize an increase of $6.0 
     million in PE 64558N for integration of 15 non-propulsion 
     electronics system subsystems to reduce NSSN life-cycle 
     costs.
     System level shock testing
       The budget request included $27.5 million for SSN-21 
     developments in PE 64561N including $5.0 million for Seawolf 
     submarine shock testing.
       The House bill and the Senate amendment would authorize the 
     budget request.
       The conferees agree to a decrease of $5.0 million in PE 
     64561N. The conferees recent indicators that the total cost 
     of a one-half shock factor test would be $47.0 million. The 
     conferees have concluded that the additional information 
     accumulated from conducting a one-half shock factor test 
     would not justify the $47.0 million cost.
     DD-21 land attack destroyer
       The budget request included $133.6 million in PE 64567N for 
     ship contract design and live fire test and evaluation 
     including $84.9 million was requested for the Navy's DD-21 
     land attack destroyer program and $8.6 million for the second 
     year of DD-21 live fire test and evaluation.
       The House bill would authorize a decrease of $25.0 million 
     in PE 64567N for the DD-21 land attack destroyer.
       The Senate amendment would authorize a reduction of $8.6 
     million, without prejudice, to reflect the re-phasing of the 
     DD-21 program which was not reflected in the DD-21 live fire 
     test and evaluation budget request.
       The House recedes.
       The conferees agree that the unique competitive teaming 
     structure agreed upon for the first two phases of DD-21 might 
     lead to either the program office relying on analysis from 
     team members to evaluate options or the program office may 
     grow to a size larger than originally intended. The program 
     office has indicated that a smaller office size is possible 
     by using Navy laboratory and field activity personnel to 
     evaluate contractor applications of technology, systems 
     engineering, and innovative designs. The conferees encourage 
     the Navy to resist creating another level of bureaucracy and 
     growing the program office, and instead coordinate evaluation 
     of contractor options using in-place Navy expertise.
     Smart propulsor product model
       The budget request included $7.0 million for continuation 
     of the development of the smart propulsor product model 
     (SPPM) for future ships.
       The Senate amendment would authorize an increase of $4.0 
     million in PE 64567N for the SPPM.
       The House bill would authorize the budget request.
       The House recedes.
     NULKA antiship missile decoy system electro-magnetic 
         compatibility
       The budget request included $2.3 million for continued 
     development and testing of the electro-magnetic compatibility 
     (EMC) upgrade to the NULKA active countermeasures decoy.
       The Senate amendment would authorize an increase of $2.0 
     million in PE 64755N to complete the development and 
     operational testing of the EMC upgrade.
       The House bill would authorize the budget request.
       The conferees agree to authorize an increase of $2.0 
     million in PE 64755N to complete the development and 
     operational testing of the EMC upgrade.
     Infrared search and track system
       The budget request included $983,000 in PE 64755N to 
     continue engineering and manufacturing development and at sea 
     testing of an infrared search and track (IRST) system.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $6.5 
     million for continued development of the IRST system.
       The conferees agree to authorize an increase of $5.0 
     million in PE 64755N for continued development of the IRST 
     system.
       The conferees agree that horizon search, for which an IRST 
     system would be optimal, is an area of relative weakness for 
     active radar. In the statement of managers accompanying the 
     National Defense Authorization Act for Fiscal Year 1996, the 
     conferees noted that the Navy's cost and operational 
     effectiveness analysis supported the conclusion that IRST 
     has the potential to play a very important role in 
     defending naval ships against sea skimming anti-ship 
     missiles. The conferees note, however, the Navy's 
     inconsistent support for the IRST program, the reduction 
     of IRST funding in order to support other Navy programs, 
     and the absence of any funds in the Navy's budget 
     projections to complete engineering and manufacturing 
     development of the system and procurement of IRST for the 
     fleet.
       The conferees acknowledge that proposals made within the 
     Department of the Navy staff to establish an international 
     cooperative program with the Netherlands and Canada for 
     development of IRST. The conferees believe that such a 
     cooperative program could be one avenue for developing this 
     capability. The conferees direct the Secretary of the Navy to 
     report to the congressional defense committees by March 1, 
     1999, the Navy's plan and funding requirements for optimizing 
     horizon search for defense of surface ships and the potential 
     for application of IRST technology to other platforms.
     Voice instructional devices
       The budget request included $4.3 million in PE 64771N for 
     medical development.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $1.0 
     million for voice instructional devices (VID) technology.
       The conferees agree to authorize an increase of $1.0 
     million for voice instructional devices (VID) technology.
     Distributed surveillance system
       The budget request included $42.0 million in PE 64784N for 
     advanced deployable system (ADS) engineering and 
     manufacturing development.
       The House bill would authorize an increase of $6.7 million 
     to continue the planned introduction of automation and data 
     fusion capability for the ADS demonstration system.
       The Senate amendment contained no similar provision.
       The conferees agree to authorize an increase of $6.7 
     million to continue the planned introduction of automation 
     and data fusion capability for the ADS demonstration system.
     Battle force tactical training
       The budget request included $5.9 million for the surface 
     tactical team trainer (STTT). The STTT is designated to 
     further develop an existing system, the battle force tactical 
     training (BFTT) system, so it will be able to provide joint 
     warfare training. A highly successful small business 
     innovative research (SBIR) project, N96-111, leveraged the 
     capabilities of commercial off-the-shelf operating systems 
     and processors.
       The Senate amendment would authorize an increase of $7.0 
     million in PE 24571N for the purpose of SBIR phase III 
     follow-on work to continue the BFTT operating system 
     conversion.
       The House bill would authorize the budget request.
       The conferees agree to authorize an increase of $5.0 
     million in PE 24571N for the purpose of SBIR phase III 
     follow-on work to continue the BFTT operating system 
     conversion.
     High Speed Anti-Radiation Missile Improvement
       The budget request included $18.9 million in PE 25601N for 
     High Speed Anti-Radiation Missile Improvement.

[[Page H8318]]

       The House bill would authorize an increase of $15.0 million 
     for the Advanced Anti-Radiation Guided Missile (AARGM).
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $10.0 
     million to accelerate AARGM development.
     Marine corps ground combat/supporting arms systems
       The budget request included $14.7 million for the Marine 
     Corps ground combat/supporting arms systems.
       The House bill would authorize an increase of $8.0 million, 
     including $5.0 million for research and development 
     requirements associated with the Shortstop electronic 
     protection system and an increase of an additional $3.0 
     million would be for development of an automatic target 
     tracker for the M1 Abrams tank.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $3.0 
     million in PE26623M for development of an automatic target 
     tracking system for the M1 tank.
     Airborne reconnaissance systems
       The budget request included no funding for the Navy in PE 
     35206N to develop airborne reconnaissance systems. The budget 
     request included $8.4 million in PE 35206D8Z that the 
     Department of Defense asked to be transfered to the Navy 
     program element. These funds included $4.6 million for 
     development of framing reconnaissance cameras.
       The House bill would authorize an increase of $8.0 million 
     in PE 35207D8Z to accelerate the development of electro-
     optical (EO) framing technology. The House Report (H. Rept. 
     105-532) noted support of EO framing technology with ``on 
     chip forward motion compensation.''
       The Senate amendment would approve the budget request.
       The conferees agree to authorize $16.4 million for PE 
     35206N, including the transfer of $8.4 million from PR 
     35206D8Z and an increase of $8.0 million for EO framing 
     technology.
       The conferees believe that the Department should select the 
     system and the upgrades for using the EO framing resources 
     that would best meet requirements. The conferees understand 
     that the term ``forward motion compensation'' is a 
     proprietary term that could unnecessarily limit the choices 
     of the Department for improving the optical capability of 
     sensors deployed in tactical aircraft and other platforms.
     Overview
       The budget request for fiscal year 1999 contained an 
     authorization of $13,598.1 million for Air Force, Research 
     and Development in the Department of Defense. The House bill 
     would authorize $13,577.2 million. The Senate amendment would 
     authorize $13,635.0 million. The conferees recommended an 
     authorization of $13,918.7 million. Unless noted explicitly 
     in the statement of managers, all changes are made without 
     prejudice.

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[[Page H8329]]

     Friction welding
       The budget request included $62.6 million in PE 62102F for 
     materials research.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $1.5 
     million to develop and optimize friction welding techniques.
       The conferees agree to authorize an increase of the $1.5 
     million to develop and optimize friction welding techniques.
     Integrated high performance turbine engine program
       The budget request included a total of $15.0 million for 
     the integrated high performance turbine engine program 
     (IPTEP).
       The House bill would authorize the budget request.
       The Senate amendment would authorize a decrease of $9.0 
     million: $4.0 million in PE 62203F; $3.0 in PE 63202F; and 
     $2.0 in PE 63216F for IPTEP.
       The House recedes.
     Variable displacement vane pump
       The budget request included $69.0 million in PE 62203F for 
     aerospace propulsion.
       The House bill would authorize the budget request.
       The Senate amendment would authorize a decrease of $4.0 
     million, as discussed elsewhere in this statement of 
     managers, and an increase of $2.0 million for the variable 
     displacement vane pump program.
       The House recedes.
     High frequency active auroral research program
       The budget request included no funding for the high 
     frequency auroral research program (HAARP).
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $14.0 
     million for HAARP, including: $9.0 million in PE 62601F; $3.0 
     million in PE 63160BR; and $2.0 million in PE 63714D.
       The conferees agree to authorize a total of $14.0 million 
     for HAARP, as recommended in the Senate amendment.
       The purpose of HAARP is to explore the use of low-frequency 
     electromagnetic waves for detecting and imaging underground 
     structures and tunnels and to determine the viability and 
     military utility of the HAARP concept. The conferees direct 
     the Secretary of the Air Force to report to the congressional 
     defense committees on the potential applications and use of 
     the HAARP concept to support military and intelligence 
     objectives with the submission of the fiscal year 2000 budget 
     request.
     Protein-based memory
       The budget request included $65.2 million in PE 62702F for 
     command control and communications research.
       The House bill would authorize an increase of $3.0 million 
     for protein-based memory development.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $2.5 
     million in PE 62702F for protein-based memory development.
     Advanced low observable coatings
       The budget request included $21.0 million in PE 63112F for 
     advanced materials for weapons systems.
       The House bill would authorize an increase of $9.0 million 
     for continued exploration of advanced low observable 
     coatings.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $9.0 
     million.
     Night vision technology
       The budget request included $16.6 million in PE 63231F for 
     crew systems and personnel protection technology.
       The House bill would authorize an increase of additional 
     $13.0 million, including $3.0 million for ejection seat 
     technology, $5.5 million for laser aircrew protection, and 
     $4.5 million for panoramic night vision technology.
       The Senate amendment would authorize an increase of $3.0 
     million for panoramic night vision technology.
       The conferees agree to authorize an increase of $11.5 in PE 
     63231F, including an increase of $3.0 million for panoramic 
     night vision technology; an increase of $3.0 million for 
     ejection seat technology; and an increase of $5.5 million for 
     laser aircrew protection.
     Electronic combat technology
       The budget request included $25.6 million in PE 63270F for 
     electronic combat technology.
       The House bill would authorize an increase of $9.0 million 
     for the ALR-69 Radar Warning Receiver.
       The Senate amendment would authorize an increase of $14.0 
     million for the ALR-69 Precision Location and Identification 
     upgrade.
       The conferees agree to authorize an increase of $14.0 
     million for the ALR-69 Precision Location and Identification 
     upgrade.
     Ballistic Missile Technology
       The budget request included no funds in PE 63311F for the 
     Ballistic Missile Technology (BMT) program.
       The House bill would authorize an increase of $16.0 million 
     in PE 63311F for advanced ballistic missile technology and 
     the conventional ballistic missile demonstration, as well as 
     transfer $1.3 million from PE 63401F to PE 63311F.
       The Senate amendment would authorize an increase of $5.0 
     million in PE 63311F to support an additional missile 
     technology demonstration (MTD-4).
       The conferees agree to authorize an increase of $16.0 
     million in PE 63311F for ballistic missile technology and GPS 
     range safety.
     Micro-satellite technology development program
       The budget request did not include funds for the micro-
     satellite technology program.
       The House bill would authorize an increase of $4.0 million 
     in PE 63401F for the micro-satellite technology program.
       The Senate amendment would authorize an increase of $10.0 
     million in PE 63401F for the micro-satellite technology 
     program.
       The conferees agree to authorize an increase of $10.0 
     million in PE 63401F for the micro-satellite technology 
     program.
       The conferees note that $30.0 million is available in 
     fiscal year 1998 funds for the Clementine II program. The 
     conferees agree to authorize the use of these funds for the 
     micro-satellite technology development program established 
     pursuant to section 215 the National Defense Authorization 
     Act for Fiscal Year 1998 (Public Law 105-85). The conferees 
     support the plan that has been developed by the Air Force and 
     the National Aeronautics and Space Administration to conduct 
     a micro-satellite inspection mission from the space shuttle. 
     In addition, the conferees direct the Secretary of Defense to 
     develop a plan for executing the remaining funds. In 
     developing this plan, the conferees direct the Secretary to 
     evaluate proposals and technologies developed by the Air 
     Force Research Laboratory, the Naval Research Laboratory, and 
     the Lawrence Livermore National Laboratory. The Secretary's 
     plan shall be submitted to the congressional defense 
     committees by March 15, 1999.
     Solar orbital transfer vehicle
       The budget request did not include funds for the Solar 
     Orbital Transfer Vehicle (SOTV).
       The Senate amendment would authorize an increase of $10.0 
     million in PE 63401F for SOTV.
       The House bill would not authorize additional funds for 
     SOTV.
       The conferees agree to authorize an increase of $7.5 
     million in PE 63401F for SOTV. The conferees support the 
     solar powered orbital transfer vehicle program, which 
     combines thermionic technology for electricity production and 
     thermal propulsion which can be used to move spacecraft to 
     higher orbits or new orbits.
     Low cost launch technology development
       The budget request included no funds for low cost launch 
     technology development.
       The Senate amendment would authorize the following 
     increases for low cost launch technology: (1) an increase of 
     $5.0 million for the Scorpius concept in PE 63173C; (2) an 
     increase of $5.0 million for the Excalibur concept in PE 
     63173C; and (3) an increase of $5.0 million in PE 63401F for 
     the Air Force to utilize in support of low cost launch 
     technology development.
       The House bill would authorize the budget request for low 
     cost technology development.
       The conferees agree to authorize an increase of $10.0 
     million in PE 63401F and no funds in PE 63173C for low cost 
     launch technology development. The conferees direct the 
     Secretary of the Air Force to utilize these funds in support 
     of the Scorpius and Excalibur concepts in a manner that is 
     most effective. The conferees also believe that the Air Force 
     should begin to program sustaining funds to support these 
     technology efforts in the outyears.
     Space maneuver vehicle
       The budget request did not include funds for space maneuver 
     vehicle or common aero vehicle technology development.
       The House bill would authorize an increase of $15.0 million 
     in PE 63401F to support development of space maneuver vehicle 
     and common aero vehicle technology development.
       The Senate amendment would authorize an increase of $10.0 
     million in PE 65864F for space maneuver vehicle technology 
     development.
       The conferees agree to authorize no increase in fiscal year 
     1999 funds, but note that $10.0 million is available in 
     fiscal year 1998 funds appropriated for the Military 
     Spaceplane. The conferees agree to authorize the use of these 
     fiscal year 1998 funds for space maneuver vehicle or common 
     aero vehicle technology development.
       The conferees direct the Air Force to work with the 
     National Aeronautics and Space Administration (NASA) on 
     developing responsive, reusable space access systems such as 
     the space maneuver vehicle, which could serve as a reusable 
     upper stage for a variety of space test missions.
     Space control technology development
       The budget request did not include funds for a new space 
     control technology initiative.
       The Senate amendment would authorize an increase of $30.0 
     million for space control technology development.
       The House bill would authorize the budget request for a new 
     space control technology initiative.
       The conferees have reviewed the Department of Defense's 
     February 1998 report on the Kinetic Energy Anti-Satellite 
     (KE-ASAT) program. The report states that ``DOD is currently 
     examining potential space control related research, 
     development, and acquisition options to support the 
     President's policy, satisfy military requirements within 
     available resources, and address the architecture.'' In the 
     cover letter to this report, the Under Secretary of Defense 
     for Acquisition and Technology states that ``I anticipate 
     that these efforts will culminate in

[[Page H8330]]

     a comprehensive plan in time for the FY 2000 President's 
     budget.''
       The conferees support the development of such a plan but 
     are concerned that insufficient resources are available to 
     support a comprehensive evaluation of various technical 
     options. Therefore, the conferees agree to authorize an 
     increase of $15.0 in PE 63438F to support a range of space 
     control technology activities and to develop the 
     ``comprehensive plan'' cited in DOD's report. The 
     Assistant Secretary of Defense for Command, Control, 
     Communications, and Intelligence (Space and Information 
     Superiority) shall be responsible for developing this 
     plan. The conferees direct the Secretary of Defense to 
     submit a report to the congressional defense committees by 
     February 15, 1999, that describes the Secretary's plan for 
     executing the space control technology funds specified 
     above. The report should also describe the Secretary's 
     plan for continuing these efforts in fiscal year 2000 and 
     beyond.
       The conferees note that $37.5 million is available in 
     fiscal year 1998 funds appropriated for the KE-ASAT program. 
     The conferees direct the Secretary to obligate promptly these 
     funds. If the Secretary concludes that a portion of these 
     fiscal year 1998 funds should be applied to other space 
     control development activities, the conferees direct the 
     Secretary to include any such recommendation in the 
     comprehensive space control technology development plan 
     specified above. The conferees will consider any such 
     recommendation and any related reprogramming that the 
     Secretary may choose to submit to Congress.
     Variable stability in-flight simulator test aircraft
       The budget request included no funding for the Variable 
     Stability In-Flight Simulator Test Aircraft (VISTA).
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $7.3 
     million in PE 64237F for the VISTA.
       The conferees agree to authorize an increase of $7.3 
     million in PE 64237F for the VISTA.
     Electronic warfare development
       The budget request included $90.1 million in PE 64270F for 
     electronic warfare development.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $20.0 
     million to accelerate the development of the C-130 Compass 
     Call upgrade to the block 30 configuration.
       The conferees agree to authorize an increase of $20.0 
     million to accelerate the development of the C-130 Compass 
     Call upgrade to the block 30 configuration.
     Evolved expendable launch vehicle program
       The budget request included $280.3 million for the Evolved 
     Expendable Launch Vehicle (EELV) program.
       The House bill would authorize the budget request.
       The Senate amendment would authorize the budget request.
       The conferees are aware of excess prior year funding in the 
     EELV program. The conferees agree to authorize a decrease to 
     the budget request of $14.0 million in PE 64853F, and direct 
     that $14.0 million in excess prior years funds be used to 
     satisfy fiscal year 1999 requirements for the EELV program.
     Big Crow program office
       The budget request included no funding for the Big Crow 
     Program Office (BCPO). The BCPO operates two flying 
     laboratories to evaluate weapons and communications systems 
     under stressful conditions.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $10.0 
     million to the budget request for the BCPO to underwrite 
     activities in fiscal year 1999.
       The conferees agree to authorize an increase of $8.0 
     million for BCPO, and support the need for the report on 
     funding policy and management directed in the Senate report 
     (S. Rept. 105-189).
     Flight test safety
       The budget request included $370.1 million in PE 65807F for 
     test and evaluation support.
       The House bill would authorize an increase of $6.0 million 
     for flight test safety enhancements.
       The Senate amendment would authorize a decrease of $4.0 
     million, as discussed elsewhere in this statement of 
     managers.
       The conferees agree to authorize a net increase of $2.0 
     million in PE 65807F, including an increase of $6.0 million 
     for flight test safety enhancements at the Air Force Flight 
     Test Center and a decrease of $4.0 million, as discussed 
     elsewhere in this report.
     F-16 Squadrons
       The budget request included $125.0 million in PE 27133F for 
     F-16 squadrons.
       The House bill would authorize a decrease of $24.6 million.
       The House report (H. Rept. 105-532) noted that the budget 
     request reflects an increase of $24.6 million over the level 
     forecast as necessary to support fiscal year 1999 
     requirements in the fiscal year 1998 budget request.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize the budget request.
     Advanced medium range air-to-air missile
       The budget request included $45.0 million in PE 27163F for 
     advanced medium range air-to-air missile (AMRAAM) research.
       The House bill and the Senate amendment would authorize the 
     budget request.
       The conferees agree to authorize a decrease of $20.0 
     million to reflect the delayed EMD effort.
       The conferees are aware that there are additional risk 
     reduction activities that will be required before the Air 
     Force begins the engineering and manufacturing development 
     (EMD) effort for the AMRAAM pre-planned product 
     improvement (P3I) program. The conferees support the goals 
     of the P3I program, but believe it prudent to conduct the 
     additional risk reduction activities.
     Joint Air-To-Surface Standoff Missile
       The budget request included $132.9 million for the Joint 
     Air-to-Surface Standoff Missile (JASSM).
       The House bill and the Senate amendment would authorize the 
     budget request.
       The budget request included 52 test missiles to support the 
     JASSM test program. Based largely on lower than expected cost 
     estimates, the conferees understand the Air Force now plans 
     to procure 69 test missiles. Even under a revised test plan, 
     eight of these missiles are excess to the testing needs of 
     the program. The conferees agree to authorize a decrease of 
     $3.0 million to eliminate these missiles.
     Theater Battle Management C4I
       The budget request included $27.3 million for theater 
     battle management C4I.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $5.0 
     million for pre-planned product improvements for the air 
     support operations center (ASOC).
       The conferees agree to authorize an increase of $5.0 
     million for pre-planned product improvements for the ASOC.
     Joint Surveillance and Target Attack Radar System
       The budget request included $123.8 million in PE 27581F for 
     the Joint Surveillance and Target Attack Radar System 
     (JSTARS).
       The House bill would authorize a decrease of $5.6 million 
     to eliminate unnecessary studies and research.
       The Senate amendment would authorize the budget request.
       The conferees note that the budget request includes $40.2 
     million for the Radar Technology Improvement Program (RTIP). 
     The conferees support the RTIP program, but also understand 
     that the Air Force has identified a funding shortfall of 
     $428.0 million for this program in fiscal year 2000 and 
     beyond. Given the uncertain status of the program, the 
     conferees believe it is prudent to reduce the level of 
     resources applied to RTIP in fiscal year 1999 pending 
     submission of a fully funded budget by the Air Force. 
     Accordingly, the conferees agree to authorize a decrease of 
     $25.0 million, as follows:
       (1) $5.6 million to eliminate unnecessary studies and 
     research; and
       (2) $19.4 million to slow RTIP until such time as the Air 
     Force clarifies future funding of the JSTARS program.
     Seek Eagle
       The budget request included $17.6 million in PE 27590F for 
     the Seek Eagle weapons integration flight test program.
       The House bill would authorize an increase of $2.0 million 
     to continue testing Longshot, a range-increasing modification 
     for munitions.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $2.0 
     million to continue testing Longshot.
     Defense Airborne Reconnaissance Program research and 
         development
       The budget request included funds for research and 
     development in the Army, Navy, Air Force, and Defense-Wide 
     accounts for activities of the Defense Airborne 
     Reconnaissance Program (DARP), as shown in the following 
     table.

----------------------------------------------------------------------------------------------------------------
                                                                              Change from request
                                                                 Budget   --------------------------  Conference
                           Account                              request                    Senate     agreement
                                                                            House bill   amendment
----------------------------------------------------------------------------------------------------------------
RDT&E, Army.................................................       75,636     (26,000)           --       70,048
RDT&E, Navy.................................................          342       67,200     (23,400)       66,548
RDT&E, Air Force............................................           --      224,008           --      349,403
RDT&E, Defense-Wide.........................................      444,137    (143,333)      (8,000)       35,665
                                                             ---------------------------------------------------
    Total...................................................      520,115      121,875     (31,400)      521,664
----------------------------------------------------------------------------------------------------------------


[[Page H8331]]

       Section 905 of the National Defense Authorization Act for 
     Fiscal Year 1998 (Public Law 105-85) transferred the 
     management responsibilities of the Defense Airborne 
     Reconnaissance Office (DARO) to the military services, while 
     retaining Office of the Secretary of Defense (OSD)-level 
     oversight responsibilities for determining airborne 
     reconnaissance architecture and systems interface 
     requirements.
       The budget request reflected continuation of airborne 
     reconnaissance programs within DARO. However, subsequent to 
     submitting the budget request, the Secretary of Defense 
     decided to:
       (1) abolish the DARO;
       (2) transfer the OSD-level functions to the Assistant 
     Secretary of Defense for Command, Control, Communications, 
     and Intelligence (ASD C3I); and
       (3) transfer program management responsibilities to the 
     military services.
       This decision was reflected in a April 14, 1998 letter from 
     the Under Secretary of Defense for Acquisition and 
     Technology.
       The conferees agree to make these adjustments, in both 
     the procurement and the research and development titles. 
     These transfers are reflected in the tables contained in 
     the conference report. In addition, a more detailed 
     spreadsheet of DARO-related investment programs, 
     summarizing transfers and other adjustments to individual 
     budget lines and program elements, is provided in the 
     classified annex that accompanies this conference report.
       The conferees note that, unless otherwise reflected in the 
     statement of managers, the transfers do not reflect a change 
     to the purposes for which the funds were requested in the 
     original budget request.
       The conferees are extremely concerned that assignment of 
     acquisition program management and funding to the services 
     not been seen as a signal that stovepipe systems of the past 
     will be acceptable in the future. The conferees stress that 
     these programmatic actions demand a firm leadership role by 
     the Assistant Secretary of Defense (Command, Control, 
     Communications and Intelligence) in establishing policy and 
     exercising oversight to ensure reconnaissance system 
     interoperability for joint operations.
       In particular, the tactical control system (TCS), 
     previously assigned to the Unmanned Aerial Vehicle (UAV) 
     Joint Program Office, continues to be assigned to the Navy as 
     the lead service. The conferees note that there is some 
     disagreement within the Department of Defense with respect to 
     whether TCS will serve as the implementation of a single 
     standard tactical UAV and sensor control architecture. The 
     conferees believe that the issue of who operationally 
     controls UAVs and their sensors is an issue separate and 
     distinct from system design technical capabilities. The 
     conferees believe it is imperative that the Joint 
     Requirements Oversight Counsel makes the necessary standards 
     decisions to ensure that operational commanders have full 
     operational flexibility for employment of UAVs.
       The budget request included $5.0 million in PE 35204D8Z for 
     the Army's Unmanned Aerial Vehicle (UAV) Systems Integration 
     Laboratory (SIL), and included $3.0 million for continued 
     development of the Multiple UAV Simulation Environment 
     (MUSE).
       The House bill would direct the Assistant Secretary of 
     Defense (Command, Control, Communications and Intelligence) 
     to provide the congressional defense and intelligence 
     committees a plan, which includes a funding profile, for the 
     continued operation of the SIL no later than March 31, 1999.
       The Senate amendment had no similar provision.
       The Senate recedes.
     Overview
       The budget request for fiscal year 1999 contained an 
     authorization of $9,314.7 million for Defense-Wide, Research 
     and Development in the Department of Defense. The House bill 
     would authorize $9,173.9 million. The Senate amendment would 
     authorize $9,302.8 million. The conferees recommended an 
     authorization of $8,848.8 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice. 

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[[Page H8341]]

     University research initiative
       The budget request included $216.0 million in PE 61103D for 
     the university research initiative. The request included 
     $10.0 million for the Defense Experimental Program to 
     Stimulate Competitive Research (DEPSCoR).
       The House bill would authorize an increase $15.0 million 
     for the DEPSCoR.
       The Senate amendment would authorize the budget request but 
     would fence an additional $10.0 million within the request 
     for the DEPSCoR, a total of $20.0 million.
       The House recedes.
     Ballistic Missile Defense Organization funding and 
         programmatic guidance
       The budget request included approximately $3.6 billion for 
     the Ballistic Missile Defense Organization (BMDO) for 
     research, development, test, and evaluation (RDT&E), and 
     procurement.
       The House bill would authorize an increase of $76.8 million 
     for BMDO. In addition, the House bill would authorize an 
     increase of $50.0 million for radar improvements related to 
     Navy Upper Tier under Navy research, development, test, and 
     evaluation (RDT&E).
       The Senate amendment would authorize a decrease of $97.7 
     million for BMDO.
       The conferees agree to authorize a decrease of $51.7 
     million for BMDO.
       The conferees recommended funding allocations for BMDO are 
     summarized in the following table. Additional programmatic 
     and funding guidance is also provided below.

                                             BMDO FUNDING ALLOCATION
                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                                  Conference
                            Program                              Request   Senate     House  -------------------
                                                                                               Change     Total
----------------------------------------------------------------------------------------------------------------
Support Technology............................................     253.5    +140.0     +12.8    +130.0     383.5
THAAD.........................................................     821.7    -323.9  ........    -294.3     527.4
TMD-BM/C3*....................................................      22.8  ........  ........  ........      22.8
Navy Lower Tier**.............................................     289.1  ........  ........  ........     289.1
Navy Upper Tier***............................................     190.4    +120.0     +70.0    +120.0     310.4
MEADS.........................................................      43.0     -33.0  ........     -19.0      24.0
NMD...........................................................     950.5  ........  ........  ........     950.5
Joint TMD.....................................................     176.8  ........      -2.0  ........     176.8
PAC-3**.......................................................     480.5  ........  ........  ........     480.5
FOS E&I.......................................................      96.9  ........  ........  ........      96.9
BMD Tech Ops..................................................     190.1  ........      -4.0  ........     190.1
Int'l Coop Programs...........................................      50.7      -0.8  ........     +12.0      62.7
Threat/Countermeasures........................................      22.1  ........  ........  ........      22.1
    BMDO Total................................................   3,588.1     -97.7     +76.8     -51.3  3,536.8
----------------------------------------------------------------------------------------------------------------
*Procurement only.
**Procurement and RDT&E.
***The House bill also included an increase of $50.0 million for radar improvements related to Navy Upper Tier
  under Navy RDT&E.

                           Support technology

       The conferees continue to support BMDO's wide bandgap 
     electronics material development program. Higher speed and 
     higher temperature operation afforded by wide bandgap 
     electronic materials could enhance the miniaturization and 
     functionality of advanced sensors and processing systems for 
     space-based ballistic missile defense (BMD) sensors and 
     ground-based radar systems. The conferees agree to authorize 
     an increase of $14.0 million in PE 62173C to support this 
     important activity.
       The conferees continue to support the Atmospheric 
     Interceptor Technology (AIT) program to develop advanced 
     interceptors with potential applications for a range of 
     theater missile defense (TMD) programs. The conferees agree 
     to authorize an increase of $22.0 million in PE 63173C to 
     continue the AIT program.
       The conferees commend BMDO and the Air Force for increasing 
     funding in the fiscal year 1999 budget request for the Space 
     Based Laser (SBL) Readiness Demonstrator (RD) program, but 
     are concerned by the Air Force's failure to move the program 
     beyond initial concept definition studies. The conferees 
     continue to support the development of an SBL-RD that could 
     be ready for launch in the 2006-2008 timeframe and urge the 
     Secretary of Defense to provide the necessary funding and 
     programmatic guidance to put the SBL program on this path. 
     Due to the failure to release a request for proposal (RFP) 
     and the Air Force's apparent lack of interest in aggressively 
     advancing the program, the conferees will evaluate 
     alternative management arrangements for the program. The 
     conferees direct the Secretary of Defense to promptly release 
     the RFP for an SBL-RD that could be launched in the 2006-2008 
     timeframe. In order to support this objective, the conferees 
     agree to authorize an increase of $94.0 million in PE 63173C.
       National Missile Defense
       The conferees note the existence of some confusion 
     regarding what, if any, national missile defense (NMD) policy 
     has been established in law or otherwise endorsed by 
     Congress. Although the conferees agreed to a provision on 
     this subject last year, which was enacted in the National 
     Defense Authorization Act for Fiscal Year 1998 (section 231 
     of Public Law 105-85), this provision did not address NMD 
     deployment policy nor otherwise endorse the administration's 
     policy known as ``three-plus-three''.
       Although the Congress has acceded to recent funding 
     requests for the administration's ``three-plus-three'' 
     program, it has never formally endorsed the concept. Indeed, 
     the continued lack of programmatic definition associated 
     with the ``plus-three'' phase has called into question the 
     administration's willingness and ability to deploy an NMD 
     system on the ``three-plus-three'' schedule, the integrity 
     of the concept itself, and exacerbated the current debate. 
     The NMD program is the only major defense acquisition 
     program that is not being managed to scheduled milestones 
     beyond initial development. This is a departure from usual 
     practice and proven program management principles. The 
     conferees note that the Director of BMDO has testified 
     that NMD is still an ``extremely high risk'' program. The 
     conferees believe that the lack of program definition in 
     the ``plus-three'' phase, and the lack of a defined path 
     from this phase into production and deployment, is 
     contributing to this risk and suboptimal decision-making 
     with adverse impact to NMD programmatics and budgets.
       At the same time, the conferees note that the bipartisan 
     Commission to Assess the Ballistic Missile Threat to the 
     United States unanimously concluded that ``under some 
     plausible scenarios . . . the U.S. might well have little or 
     no warning before operational deployment'' of long range 
     ballistic missiles by hostile powers. The conferees believe 
     that the potential mismatch between this warning time and the 
     deployment timeline for a national missile defense poses a 
     conundrum. Current policy is that no ballistic missile threat 
     to the United States currently justifies deployment of a 
     national missile defense. However, when new ballistic missile 
     threats do emerge, it may be too late to respond in a timely 
     manner.
       In view of the above, the conferees believe that further 
     program definition in the ``plus-three'' phase and beyond 
     will mitigate some of the risks identified. Accordingly, the 
     Secretary of Defense is expected to establish appropriate 
     milestones and exit criteria for the NMD program that are 
     consistent with those for other major defense acquisition 
     programs. Further, the Secretary is expected to conduct NMD 
     program milestone and budget reviews to ensure that 
     established exit criteria are being met.
       The conferees note that the Secretary of Defense has 
     completed and submitted to Congress the report on sea-based 
     NMD options called for in last year's conference report (H. 
     Rept. 105-340), but that this report was submitted only in 
     classified form. The conferees direct the Secretary to submit 
     an unclassified summary of this report to the congressional 
     defense committees as soon as possible.

                   Medium Extended Air Defense System

       Although the conferees continue to support the need for a 
     TMD system to support maneuver forces, the conferees are 
     troubled by the failure of the Department of Defense to 
     structure a fully-funded development program to satisfy this 
     requirement. Although the conferees would support a coherent 
     and fully-funded Medium Extended Air Defense System (MEADS) 
     program, they are unwilling to support a MEADS program that 
     has no funding programmed beyond fiscal year 1999. The 
     conferees note that the Department of Defense has had ample 
     opportunity to address this shortfall. In light of the 
     Department's unwillingness to provide adequate funding in the 
     outyears, the conferees recommend a reduction of $19.0 
     million in PE 63869C. Additional funding and programmatic 
     guidance regarding the MEADS program is provided elsewhere in 
     this report.

           Theater High Altitude Area Defense (THAAD) system

       The conferees continue to support the development, 
     production, and fielding of THAAD as a matter of highest 
     priority. The conferees support the budget request of $497.7 
     million for THAAD Demonstration and Validation (Dem/Val). In 
     addition, as addressed elsewhere in this report, the 
     conferees agree to authorize an increase of $29.6 million in 
     THAAD Dem/Val funding to support increased competition in the 
     THAAD program, for a total authorization in PE 63861C of 
     $527.4 million.
       The conferees are encouraged by the recent cost sharing 
     agreement between the prime contractor and BMDO, and believe 
     that testing should resume at an expeditious pace, without 
     undue delay. However, given recent delays in the THAAD 
     testing program, and the requirement for THAAD to achieve 
     three successful intercept tests prior to entering 
     Engineering and Manufacturing Development (EMD), the 
     conferees agree to authorize a decrease of $323.9 million 
     from PE 64861C for THAAD EMD.
       The conferees expect the Secretary of Defense not to 
     overreact to limited, albeit adverse, test results but to re-
     double efforts to structure a THAAD program that provides for 
     as timely a response as possible to the recent medium range 
     ballistic missile threat developments. The conferees 
     reiterate the views expressed in previous reports that the 
     THAAD missile and the Navy Upper Tier missile should not be 
     viewed as competing systems, but as complementary. The 
     conferees do not support proposals to use the Navy Upper Tier 
     missile as a substitute for THAAD. The conferees note that 
     the Navy endorses continuation of the THAAD program and views 
     continuation of THAAD testing as important to the success of 
     an accelerated Navy Upper Tier program.

                     Navy Upper Tier (Theater Wide)

       The conferees continue to support the Navy Upper Tier 
     program and urge the Secretary of Defense to accelerate this 
     important development effort within an acceptable degree of 
     program risk. To facilitate this acceleration, the conferees 
     also urge the Navy to begin allocating funds from within its 
     budget to complement those already programmed within the BMDO 
     budget.
       The conferees are concerned that necessary radar 
     improvements have not kept up with developments in the Navy 
     Upper Tier interceptor missile system. Therefore, the 
     conferees agree to authorize an increase of $50.0 million for 
     radar improvements competition. The conferees direct BMDO and 
     the Navy to accelerate radar upgrades to ensure that this

[[Page H8342]]

     capability becomes available at the earliest possible date. 
     In pursuing this competition, the conferees direct that a 
     prototype solid state radar be available in 2001 in order to 
     take full advantage of the Standard Missile III development 
     testing planned for 2002. In addition, the conferees agree to 
     authorize an increase of $70.0 million for Navy Upper Tier 
     acceleration, for an overall increase of $120.0 million in 
     PE 63868C.

                        BMD Technical Operations

       The conferees support the efforts being performed at the 
     Army Space and Strategic Defense Command's Advanced Research 
     Center (ARC). The ARC continues to be a valuable tool in 
     support of the Army's development of both theater and 
     national missile defense systems. Therefore, the conferees 
     agree to authorize an increase of $5.0 million in PE 63874C 
     for support of the ARC.
       The conferees note substantial unexplained growth in BMDO's 
     system architecture and engineering effort and agree to 
     authorize a decrease of $5.0 million in PE 63874C.

                   International Cooperative Programs

       The budget request included $37.9 million for BMDO's 
     Israeli Cooperative Project, which includes funding for the 
     Arrow ballistic missile defense system. The conferees agree 
     to authorize an increase of $12.0 million in PE 63875C to 
     support interoperability design so the Arrow can operate 
     alongside forward deployed U.S. missile defense systems.

                             Patriot PAC-3

       At the request of the Director of BMDO, the conferees 
     recommend a zero-balance transfer of $40.0 million from PAC-3 
     procurement to PAC-3 EMD to properly align funds for the type 
     of work being performed. The conferees note with concern that 
     this realignment is the result of significant delays in the 
     PAC-3 flight test program. The conferees remain convinced 
     that PAC-3 is an essential TMD system and is the only near 
     term defense against threats emerging in the Southwest Asia 
     and elsewhere. Nevertheless, if the PAC-3 test program does 
     not demonstrate significant improvement, the conferees do not 
     rule out the possibility of future funding reductions.

                      Medical free electron laser

       The budget request included $9.7 million in PE 62227D for 
     the medical free electron laser program.
       The House bill would authorize an increase of $5.0 million.
       The Senate amendment would authorize an increase $7.0 
     million.
       The conferees agree to authorize an increase of $7.0 
     million.

            Computing systems and communications technology

       The budget request included $417.7 million in PE 62301E for 
     computing systems and communications technology.
       The House bill would authorize the budget request.
       The Senate amendment would authorize a decrease of $30.0 
     million in the joint infrastructure protection project and a 
     transfer of an additional $10.0 million from that project to 
     PE 33104F for cyber-security research.
       The conferees endorse the views in the Senate report (S. 
     Rept. 105-189) with regard to the joint infrastructure 
     protection project and reiterate the requirement for the 
     report specified by the Senate. The conferees are especially 
     concerned about the deficient planning for such a project 
     given the widely recognized need to address vulnerabilities 
     in the U.S. information infrastructure as quickly as 
     possible. However, in recognition of the urgency of this 
     issue, the conferees agree to an undistributed reduction in 
     PE 62301E of $40.0 million to allow Defense Advanced Research 
     Projects Agency (DARPA) flexibility to allocate the reduction 
     consistent with national security priorities.
     Chemical-biological defense program
       The budget request included $620.3 million for the 
     chemical-biological defense program, including $336.4 million 
     in research and development, test and evaluation and $283.9 
     million in procurement. The budget request also included 
     $88.0 million for the Defense Advanced Research Projects 
     Agency (DARPA) biological warfare (BW) defense program (PE 
     62383E).
       The House bill would authorize the budget request for the 
     chemical-biological defense program and the biological 
     warfare defense program (PE 62383E), but would decrease the 
     budget request of $6.9 million for procurement of 
     contamination avoidance equipment for the use by the Reserve 
     Components to respond to domestic emergencies.
       The Senate amendment would recommend the following 
     increases to the budget request for the chemical-biological 
     defense program: $10.0 million to accelerate research and 
     development of small, light-weight, man-portable chemical and 
     biological agent detection sensors; $4.0 million in PE 
     62384BP for Project SAFEGUARD to continue proof of concept 
     testing to establish sensor performance, initiate packaging 
     and real-time processing, and the conduct of platform 
     studies; and $1.5 million in PE 62383E to demonstrate the use 
     of technologies for the deployment of telemedicine and other 
     capabilities to the warfighters; but would recommend a $12.0 
     million reduction to the budget request for the DARPA BW 
     program.
       Additionally, the Senate amendment would transfer the 
     mission, function and resources for the chemical-biological 
     defense program to the Defense Threat Reduction Agency 
     (DTRA), consistent with the recommendation of the November 
     1997 Defense Reform Initiative (DRI).
       The conferees agree to authorize an increase of $15.5 
     million for chemical-biological defense for acceleration of 
     research and development of small, light-weight, man-portable 
     chemical and biological detectors ($5.0 million in PE 61384BP 
     and $5.0 million in PE 62384BP), $4.0 million in PE 62384 BP 
     for Project SAFEGUARD, and $1.5 million in PE 62384E for the 
     demonstration and deployment of technologies for telemedicine 
     and other capabilities to the warfighters; but would reduce 
     the budget request by $7.0 million for PE 62383E. 
     Additionally, the conferees continue to express strong 
     support for innovative technologies to detect chemical and 
     biological agents, such as aerogels and radio frequency 
     identification sensor tags, and encourage the broad 
     participation of the national laboratories, universities 
     and, where appropriate, industry, in these efforts.
       The conferees endorse the concerns expressed in the Senate 
     report (S. Rept. 105-189) regarding the shortcomings and 
     deficiencies in the chemical-biological defense program 
     related to the provision of adequate force structure and 
     equipment to protect military facilities, as well as the 
     deficiencies in doctrine, policy, equipment and training for 
     the defense of critical overseas ports and airfields. The 
     conferees direct the Secretary of Defense to report to the 
     congressional defense committees by December 1, 1998 and 
     annually thereafter, in the Department of Defense Nuclear, 
     Chemical Biological (NCB) Defense Annual Report, on the plans 
     to correct these deficiencies, including the deployment on a 
     long-term basis of Army Biological Integrated Detection 
     Systems (BIDS) companies in high threat commands or regions.

    Oversight and management of chemical/biological defense program

       The conferees note progress achieved in implementing the 
     provisions of section 1701 of the National Defense 
     Authorization Act for Fiscal Year 1994 (Public Law 103-160, 
     52 U.S.C. 1522) in consolidating, coordinating and 
     integrating the chemical-biological defense requirements of 
     the military departments into a single office within the 
     Department of Defense. Under this agreement, the DOD 
     chemical-biological defense program office provides overall 
     policy and budget guidance for the program, the Defense 
     Acquisition Board process provides oversight of the program, 
     and the Department of the Army acts as the executive agent. 
     The conferees also note that the establishment of a Joint 
     Nuclear, Chemical and Biological (NCB) Board to provide 
     management structure for the program ensures that the 
     operational needs of the services are integrated and 
     coordinated, and that unnecessary duplication of effort is 
     eliminated in the preparation of the chem-bio defense Program 
     Objective Memorandum.
       The conferees agree that a single office for overall 
     coordination and integration of the DOD chem-bio defense 
     program, as required by Public Law 103-160, be maintained 
     within the Office of the Secretary, and strongly believe that 
     the office must be assigned sufficient staff to exercise its 
     policy and budget guidance roles. In addition, the conferees 
     strongly support continued implementation of the Joint 
     Service Agreement to ensure coordination, integration and 
     management of the program.
       With regard to the transfer of the chem-bio defense program 
     to the Defense Threat Reduction Agency (DTRA), the conferees 
     agree that the management role of the DTRA with regard to the 
     chem-bio defense program should be limited to those chem-bio 
     defense activities and projects that represent unique 
     operational mission responsibilities of DTRA. Therefore, the 
     conferees do not agree to transfer overall responsibility for 
     the execution and day-to-day management of the chem-bio 
     defense program to DTRA. However, to ensure consideration of 
     DTRA chem-bio defense and related counterproliferation 
     operational requirements in the DOD chem-bio defense program, 
     the conferees recommend that DTRA become a party to the Joint 
     Service Agreement on NCB defense and be included as a voting 
     member of the Joint NCB Defense Board.
     Tactical technology
       The budget request included $189.0 million in PE 62702E for 
     tactical technology.
       The House bill would authorize a decrease of $37.0 million 
     for applied research in tactical technology.
       The Senate amendment would authorize a decrease of $5.0 
     million for the increased scope of work on the micro unmanned 
     aerial vehicle program.
       The conferees agree to authorize a decrease of $32.0 
     million in PE 62702E.
     Integrated command and control technology
       The budget request included $34.0 million in PE 62708E for 
     integrated command and control technology.
       The House bill would authorize an increase of $6.0 million 
     for continued development of advanced technologies for flat 
     panel displays.
       The Senate amendment would authorize an increase of $8.0 
     million for flat panel display to continue the development of 
     a domestic infrastructure within the context of the flat 
     panel display initiative.
       The conferees agree to authorize an increase of $7.0 
     million for flat panel displays.

[[Page H8343]]

     Materials and electronic technologies
       The budget request included $244.4 million in PE 62712E for 
     material and electronics technology.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $6.0 
     million for the continued development of the mixed mode 
     electronics multi-technology insertion (MIME) program.
       The conferees agree to authorize an increase of $6.0 
     million for the MIME program and to authorize a reduction of 
     $8.0 million for sonoelectronics to fund other higher 
     priority projects.
     Weapons of mass destruction technologies
       The budget request included $203.6 million for weapons of 
     mass destruction technologies (PE 62715BR) of the Defense 
     Special Weapons Agency (DSWA).
       The House bill would authorize the budget request.
       The Senate amendment would recommend an increase of 
     $15.0 million, including $10.0 million to maintain nuclear 
     core competencies and critical scientific and engineering 
     expertise; $2.0 million to maintain efforts to protect 
     critical civil and commercial advanced electronic 
     technologies and space systems against nuclear and 
     conventional explosions; and $3.0 million to accelerate 
     the pace and development of components and subsystems 
     toward a prototype ``deep digger'' system.
       The conferees agree to authorize an increase of $13.0 
     million to the budget request: $10.0 million to maintain 
     nuclear core competencies and critical scientific and 
     engineering expertise in nuclear weapons effects technology 
     and $3.0 million to accelerate the pace and development of 
     components and subsystems toward a prototype ``deep digger'' 
     system.
       The conferees remain concerned about the impact of high 
     altitude nuclear and conventional explosions on critical 
     civil and commercial activities and the potential 
     vulnerability of next generation satellites and high 
     technology upon which U.S. Armed Forces rely. The conferees 
     have supported the efforts of the DSWA to conduct research on 
     the effects of electromagnetic pulse (EMP) and the potential 
     impact on military systems and critical technologies, and to 
     develop technologies that would reduce potential 
     vulnerabilities of the effects of radiation and EMP on 
     advanced electronic technologies and space systems.
       The conferees endorse the direction contained in the House 
     Report (H. Rept. 105-532) accompanying its fiscal year 1999, 
     defense authorization bill that the Secretary of Defense, in 
     consultation with the Director of Central Intelligence, 
     report to the congressional defense committees by March 1, 
     1999 on the potential effects of high- and low-frequency EMP 
     on critical military and civil systems and steps that might 
     be taken to reduce potential vulnerabilities to EMP.
     Explosives demilitarization technology
       The budget request included $11.6 million for the 
     explosives demilitarization technology program (PE 63104D8Z).
       The House bill would authorize an increase of $2.0 million 
     to allow continued aggressive development of environmentally 
     safe procedures to safely dispose of conventional military 
     munitions.
       The Senate amendment would authorize an increase of $5.5 
     million: $4.0 million to complete the demonstration of 
     existing commercially available blast chamber technology; and 
     $1.5 million to design a mobile system utilizing the 
     commercially available blast chamber technology.
       The conferees agree to authorize an increase of $6.0 
     million to the budget request, including $2.0 million to 
     continue aggressive development of environmentally safe 
     procedures to dispose of conventional military munitions and 
     $4.0 million to complete the demonstration of commercially 
     available blast chamber technology as a viable alternative to 
     open burn/open detonation demilitarization of conventional 
     munitions.
       The conferees concur with the concerns expressed in the 
     Senate report (S. Rept. 105-189) regarding the existence of 
     small numbers of conventional munitions at demilitarization 
     sites in the United States which need to be destroyed, where 
     it may not be cost effective or practical to construct a 
     destruction facility. The conferees support the efforts of 
     the Department of Defense to design a mobile system utilizing 
     the commercially available blast chamber technology.
     Counterterror technical support program
       The budget request included $35.8 million for the 
     counterterror technical support (CTTS) program (PE 63122D8Z).
       The House bill would authorize an increase of $4.0 million 
     increase for the development and demonstration of biometric 
     access control technology, to include the use of 
     authentication software and the principal component method of 
     facial recognition.
       The Senate amendment would authorize an increase of $5.0 
     million for the facial recognition technology program. 
     Additionally, the Senate would recommend the transfer of the 
     counterterror technical support program to the Defense Threat 
     Reduction Agency.
       The conferees agree to authorize an increase of $4.0 
     million for the facial recognition technology program. In 
     addition, the conferees endorse two recommendations contained 
     in the Senate report (S. Rept. 105-185). First, the conferees 
     support efforts by the Department of Defense to maintain 
     collaborative efforts with allies who have demonstrated 
     counter-terrorism capabilities, which can provide the United 
     States with a cost-effective way to remain on the cutting-
     edge of technology. Second, the conferees support efforts by 
     the Department to continue its examination of retrofit 
     options and to develop design guidelines for new and existing 
     structures, including the use of composite systems.
       The conferees recognize the success of the interagency 
     Technical Support Working Group (TSWG) and the Counterterror 
     Technical Support program, and direct that oversight and 
     direction of the program remain with the Office of the 
     Assistant Secretary for Special Operations and Low Intensity 
     Conflict.
       The conferees understand that the ASD (SO/LIC) is 
     responsible for oversight of the TSWG and the Office of 
     Special Technology (OST). The conferees also understand that 
     there are other entities within the Department of Defense 
     that can contribute to the interagency program to combat 
     terrorism, such as the Defense Special Weapons Agency (DSWA), 
     and encourage the TSWG to continue its coordination 
     activities with these DOD entities, as well as with non-DOD 
     entities, to ensure that the expertise available to the U.S. 
     Government is appropriately applied to national and 
     international efforts to combat terrorism.
       The conferees also encourage the continued cooperation 
     between the TSWG and the Physical Security Action Group 
     (PSEAG) to ensure that the CTTS and the physical security 
     equipment programs address technologies that meet force 
     protection needs.
     Counterproliferation support program
       The budget request included $80.4 million for the 
     counterproliferation support program, $70.6 million in PE 
     63160BR and $9.8 million in PE 65160BR.
       The House bill would recommend that the 
     counterproliferation support program be maintained at the 
     fiscal year 1998 level and would authorize a decrease of 
     $13.0 million.
       The Senate amendment would authorize an increase of $4.0 
     million to PE 65160BR for the Counterproliferation Analysis 
     and Planning System (CAPS) and an increase of $3.0 million to 
     PE 63160BR for the high frequency active auroral research 
     program (HAARP). In addition, the Senate would recommend an 
     increase of $20.5 million increase for the unfunded 
     requirements for the U.S. Special Operations Command 
     (USSOCOM) for training, equipment and activities related to 
     detecting, identifying, rendering safe, destroying or 
     recovering weapons of mass destruction.
       The House recedes.
       The conferees endorse the concerns expressed in the Senate 
     report (S. Rept. 105-185) and the recommendation that funds 
     authorized for HAARP not be diverted to fund government 
     overhead and Systems Engineering and Technical Assessments 
     (SETA) support, and that the combined overhead/SETA support 
     costs be no more than 10 percent.
     Automatic target recognition
       The budget request included $5.1 million in PE 63232D for 
     automatic target recognition.
       The House bill would authorize an increase of $3.0 million 
     for optical correlation technology research.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize the budget request.
     Generic logistics research and development technology 
         demonstrations
       The budget request included $17.8 million in PE 63712S for 
     generic logistics research and development technology 
     demonstrations.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $4.0 
     million for the computer assisted technology transfer 
     program.
       The conferees agree to authorize an increase of $4.0 
     million for the computer assisted technology transfer 
     program.
     Strategic Environmental Research and Development Program
       The budget request included $54.4 million for the Strategic 
     Environmental Research and Development Program (SERDP) and 
     transferred the program from PE 63716D to PE 63780A.
       The House bill included no funds for SERDP.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize the budget request and 
     direct that SERDP be identified under a Department of Defense 
     (DOD) program element to avoid confusion about its unique 
     multi-agency purpose. The conferees recognize the value of 
     SERDP as a tri-agency cooperative program that supports basic 
     and applied research and development of innovative 
     technologies to meet the environmental obligations of the 
     DOD, the Department of Energy, and the Environmental 
     Protection Agency. The conferees expect that maintaining 
     SERDP under a DOD program element will preserve its multi-
     agency focus.
     Advanced electronics technologies
       The budget request included $244.7 million in PE 63739E for 
     advanced electronics technologies.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $10.0 
     million for advanced mask writer development in advanced 
     lithography and would authorize a decrease of $4.0 million 
     for new start work in project MT-04.
       The conferees agree to authorize an increase of $10.0 
     million for advanced lithography development, as described in 
     the Senate report (S. Rept. 105-189), and a decrease

[[Page H8344]]

     of $8.4 million for molecular level printing program 
     acceleration and submarine sensor suite development to fund 
     higher priority projects.
     Maritime technology
       The budget request included $15.0 million in PE 63746E for 
     the maritime technology (MARITECH) advanced shipbuilding 
     enterprise (ASE) program.
       The Senate amendment would authorize an increase of $5.0 
     million to PE 63746E for MARITECH ASE.
       The House bill would authorize the budget request.
       The conferees agree to authorize an increase of $5.0 
     million to PE 63746E for MARITECH ASE.
     Advanced concept technology demonstrations
       The budget request included $116.3 million in PE 63750D for 
     advanced concept technology demonstrations.
       The House bill would authorize a decrease of $12.0 million 
     for advanced concept technology demonstrations.
       The Senate amendment would authorize a decrease of $6.0 
     million in the same program.
       The conferees agree to authorize a decrease of $12.0 
     million for advanced concept technology demonstrations.
     High performance computing modernization program
       The budget request included $140.9 million in PE 63755D for 
     high performance computing modernization program.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $20.0 
     million to sustain operations of supercomputing centers 
     established with Department of Defense funds and an increase 
     of $3.0 million for a program to address related challenges 
     in remote visualization, distance learning expansion, and 
     collaborative exploitation of high performance computing 
     capabilities.
       The House recedes.
     Command, control and communications systems
       The budget request included $200.1 million in PE 63760E for 
     command, control and communications systems.
       The House bill would authorize a decrease of $27.5 million 
     for command, control and communications systems.
       The Senate amendment would authorize a decrease of $11.0 
     million in the same program.
       The conferees agree to authorize a decrease of $27.5 
     million.
     Sensor and guidance technology
       The budget request included $213.2 million in PE 63762E for 
     sensor and guidance technology.
       The House bill would authorize a decrease of $13.1 million 
     within the program and an increase of $10.0 million for 
     seismic sensor technology development.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize a decrease of $13.1 
     million for the program. The funding for seismic sensor 
     technology development is addressed elsewhere in this 
     statement of managers.
     Land warfare technology
       The budget request included $108.5 million in PE 63764E for 
     land warfare technology.
       The House bill would authorize a decrease of $11.6 million 
     in the program.
       The Senate amendment would authorize a decrease of $4.0 
     million for a new start project in LNW01.
       The conferees agree to a decrease of $17.6 million in the 
     program: a reduction of $11.6 million, as described in the 
     House report (H. Rept. 105-532); and a reduction of $6.0 
     million for tactical mobile robots acceleration and situation 
     awareness system program growth to fund higher priority 
     programs.
     Physical security
       The budget request included $31.7 million for the 
     Department of Defense physical security program (PE 
     63228D8Z).
       The House bill would authorize the budget request.
       The Senate amendment would authorize a decrease of $6.0 
     million for activities related to demonstrating commercial 
     off-the-shelf technologies. In addition, the Senate would 
     make available $3.0 million for a study to determine the 
     utility of a software technology developed jointly by 
     industry and the national laboratories, the Analytic System 
     and Software for Evaluating Safeguards and Security (ASSESS), 
     for use by the Department of Defense as an integral component 
     in conducting vulnerability assessments at numerous 
     Department of Defense facilities and installations.
       The conferees agree to authorize a decrease of $3.0 million 
     for activities related to demonstrating commercial off-the-
     shelf technologies in PE 63228D8Z, and that decreases to this 
     program not be made to projects currently underway. 
     Additionally, the conferees would make available $3.0 million 
     for a study on the utility of ASSESS as an integral component 
     of DOD efforts to assess vulnerability assessments at its 
     facilities and installations.
     Continuous acquisition and life-cycle support activities 
         initiative
       The budget request included $1.9 million in PE 63736D for 
     the continuous acquisition and life-cycle support activities 
     (CALS) initiative.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $2.0 
     million for the integrated data environment program.
       The conferees agree to authorize an increase of $2.0 
     million for the integrated data environment program.
     North Atlantic Treaty Organization research and development
       The budget request included $44.4 million for the North 
     Atlantic Treaty Organization (NATO) research and development 
     activities in the following accounts: $11.6 million for the 
     Army (PE 63790A); $11.0 million for the Navy (PE 63790N); 
     $11.1 million for the Air Force (PE 63790F); and $10.7 
     million for the Department of Defense (PE 63790T).
       The House bill would authorize a decrease of $5.0 million 
     VECTOR activity in the Navy program (PE 63790N), an 
     international flight demonstration effort utilizing X-31 
     experimental aircraft.
       The Senate amendment would recommend that funds for the 
     NATO research and development activities remain at the fiscal 
     year 1998 funding levels plus inflation, resulting in the 
     following decreases: $2.0 million (Army); $1.1 million 
     (Navy); $0.4 million (Air Force); and $2.3 million (defense-
     wide).
       The conferees agree to authorize the following decreases: 
     $2.0 million (Army); $4.0 million (Navy); $0.4 million (Air 
     Force); and $2.3 million (defense-wide). The omnibus 
     reprogramming (FY98-16PA) currently before the Congress for 
     approval includes as a source of funds $3.0 million from the 
     Navy NATO research and development program for activities 
     related to VECTOR. According to the rationale making the 
     sources available for reprogramming, agreements have not been 
     reached yet between the United States and Sweden, and 
     therefore the funds are available. The conferees recommend 
     that the Department of the Navy utilize those funds for 
     activities in fiscal year 1999.
     Humanitarian demining
       The budget request included $17.2 million for humanitarian 
     demining research and development activities in PE 63920D8Z.
       The House bill would authorize a decrease of $5.0 million.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize the budget request.
     Joint robotics program-engineering development
       The budget request included $11.3 million in PE 64709D for 
     the joint robotics program-engineering development.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $6.0 
     million for accelerated joint robotics technology engineering 
     and management development.
       The conferees agree to authorize an increase of $6.0 
     million for accelerated joint robotics technology engineering 
     and management development.
     Defense technology analysis
       The budget request included $5.0 million in PE 65798S for 
     the defense technology analysis program.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $2.0 
     million for the commodity management technology program.
       The conferees agree to an increase of $2.0 million for the 
     commodity management technology program.
     Defense technical information services
       The budget request included $46.5 million in PE 65801K for 
     defense technical information services.
       The House bill would authorize the budget request.
       The Senate amendment would authorize a decrease of $1.0 
     million for expansion of defense technical information.
       The conferees agree to authorize a decrease of $1.0 million 
     for expansion of defense technical information.
     Special operations intelligence systems development
       The budget request included $1.8 million for special 
     operations forces intelligence systems development.
       The House bill would authorize an increase of $5.0 million 
     for research and development requirements associated with the 
     Special Operations intelligence vehicle.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $2.5 
     million for development of the Special Operations 
     intelligence vehicle.
     Live fire testing
       The budget request included $9.9 million in PE 65131D for 
     live fire testing.
       The House bill would authorize an increase of $4.0 million 
     to expand threat vulnerability testing to include the threat 
     of radio frequency weapons.
       The Senate amendment would authorize the budget request.
       The Senate recedes.


                       ITEMS OF SPECIAL INTERESt

     Advanced lightweight grenade launcher
       The conferees note ongoing efforts by the Special 
     Operations Command (SOCOM) to develop new lightweight weapon 
     systems necessary to support critical mission requirements by 
     reducing the load that special operations personnel must 
     carry. The conferees support ongoing efforts to develop a new 
     advanced lightweight grenade launcher (ALGL) that will 
     support special operations missions and believe this 
     capability has applicability beyond the Special Operations

[[Page H8345]]

     Command. The conferees encourage the Special Operations 
     Command to assess future warfighting requirements and 
     determine the viability of ALGL concept. If ALGL meets 
     warfighting requirements, the conferees would expect SOCOM to 
     request funding necessary to develop this weapon and meet 
     future warfighting requirements.
     Advanced tactical computer science and sensor technology
       The budget request included $18.5 million in PE 63772A for 
     advanced tactical computer science and sensor technology.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an additional $2.5 
     million for digital intelligence technology development.
       The Senate recedes.
       The conferees strongly endorse the use of commercial-off-
     the-shelf (COTS) technology where appropriate to meet the 
     needs of the 21st Century Army. The committee urges the Army 
     to consider spending up to $5.0 million of the discretionary 
     funds in the Army's digitization program to explore 
     alternative COTS technology for command and control 
     applications for dismounted soldiers.
     Commercial technologies for maintenance activities
       The conferees agree to amend the budget request to change 
     the name of PE 63805S to commercial technologies for 
     maintenance activities.
       The conferees support funding for this program established 
     in section 361 of the National Defense Authorization Act for 
     Fiscal Year 1998. The conferees believe the commercial 
     technologies for maintenance activities program provides a 
     framework for the depot maintenance activities to work 
     together with U.S. manufacturing companies on projects of 
     common interest in which industry will match Department of 
     Defense funding on a two-for-one basis. The conferees believe 
     that in planning the program in the outyears, the Defense 
     Logistics Agency (DLA) should require each of the 
     participating services to match DLA funds for the projects 
     conducted under the program. In managing the program in 
     fiscal year 1999, the DLA should consider imposing such a 
     matching requirement where practicable.
     Cyber Security Program
       The conferees support the Air Force cyber-security program, 
     which would allow the Air Force to conduct research and 
     development at federally funded research and development 
     centers that are currently working in collaboration on issues 
     relating to security information assurance. This program 
     would help to facilitate the transition of information 
     assurance technology to the defense community which is vital 
     as the Defense Department increases its reliance on computer 
     networks and information technology.
     Defense information superiority, assurance, and 
         interoperability
       Joint Vision 2010, the Joint Chiefs of Staff conceptual 
     template for how U.S. Armed Forces will fight future wars, 
     identifies information superiority--the capability of 
     maintaining an uninterrupted flow of information while 
     denying an adversary's ability to do the same--as a key 
     enabler for success in any future conflict.
       The conferees believe that communications network 
     interoperability problems experienced by Navy carrier battle 
     groups during operational test and evaluation of the advanced 
     combat direction system and the cooperative engagement 
     capability, as discussed elsewhere in this statement of 
     managers, highlight potentially greater interoperability 
     problems in communications, command, control, computers, 
     intelligence, surveillance, and reconnaissance (C4ISR) 
     systems networking at the joint level. Such problems will 
     adversely affect the ability of U.S. Armed Forces to achieve 
     the information superiority required for success on future 
     battlefields.
       The General Accounting Office (GAO) has identified a number 
     of activities within the Department of Defense (DOD) intended 
     to ensure that U.S. Armed Forces are capable of establishing 
     and maintaining information superiority in the future. 
     According to the GAO reports, the DOD has begun to make 
     progress toward establishing a comprehensive C4ISR 
     architecture, but needs to complete its development, 
     establish adequate information assurance measures, and ensure 
     compliance with the architecture by the military departments, 
     unified commands, and agencies. The GAO also observed that 
     the complexity, magnitude, and cost of DOD's information 
     superiority efforts warrant a comprehensive annual overview 
     of the state of the Department's management and oversight of 
     C4ISR acquisitions. The conferees understand that the DOD 
     agreed with the recommendations contained in the GAO reports.
       Accordingly, the conferees direct the Secretary of Defense 
     to submit with the DOD budget request for fiscal year 2000 a 
     report to the congressional defense committees on the 
     implementation of the information superiority concept and its 
     attendant key C4ISR systems development and acquisitions. The 
     report should describe a DOD roadmap for C4ISR 
     interoperability. The report should describe identified 
     obstacles to interoperability, architecture development, 
     implementation, and maintenance and the plans, including the 
     planned allocation of resources, to address them.
     Joint simulation system
       The conferees view the development of the Joint Simulation 
     System (JSIMS) in PE 92740J as an important step in meeting a 
     critical joint readiness requirement. In addition, JSIMS 
     provides a framework for the migration of all training 
     simulations into a common system and the elimination of the 
     existing suite of legacy simulations across the services. 
     These legacy simulations are increasingly outdated and 
     expensive to maintain. JSIMS is also a key enabler for the 
     joint experimentation process recently directed by the 
     Secretary of Defense to be established under the Commander in 
     Chief, U.S. Atlantic Command.
       The conferees encourage the Department of Defense to 
     adequately fund this program in fiscal year 2000 and beyond 
     as a means of ensuring that full operating capability follows 
     the fielding of initial operating capability without delay.
     Man overboard indicator technology
       The budget request included no funds for the development of 
     man overboard indicator technology.
       Both the House report (H. Rept. 105-532) and the Senate 
     report (S. Rept. 105-189) encouraged the Navy to investigate 
     the utility of commercially available, water-activated man 
     overboard indicator and the feasibility of integrating such a 
     system for fleet use.
       The conferees encourage the Navy to investigate the 
     feasibility of integrating a commercial off-the-shelf man 
     overboard indicator as a means of immediately alerting ship 
     control personnel of a person accidentally falling overboard. 
     Additionally, the conferees encourage the Navy to continue 
     their initiatives to identify a commercial off-the-shelf 
     personnel tracking and physiological monitoring system, and 
     to investigate the possibility and utility of combining man 
     overboard, tracking, and physiological monitoring 
     requirements into one device.
     Materials research
       The House report (H. Rept. 105-532) expressed concern about 
     the direction of materials research within the Department of 
     Defense and the belief that such research should seek to 
     reduce long-term dependence for critical defense materials 
     upon foreign sources. The report directed the Secretary of 
     Defense to undertake a basic review of the policies and 
     programs regarding defense critical materials and critical 
     materials research and to report the results of this review 
     by February 15, 1999.
       The Senate report (S. Rept. 105-189) included no similar 
     direction.
       The conferees note the views expressed in the House report 
     and the potential vulnerabilities of the domestic and foreign 
     supplier base for critical defense materials needed in the 
     production of future defense systems. The conferees recognize 
     the decline in funding of applied materials research in the 
     Department, particularly in the support of fundamental 
     materials research by the Defense Advanced Research Projects 
     Agency.
       In addition to the issues identified in the House report, 
     the conferees direct the Secretary of Defense to assess the 
     requirements for a long-range plan for future materials 
     research that would ensure the availability of emerging high 
     performance materials for future defense needs and to include 
     the results of this assessment in the report submitted to the 
     Congress. As a part of this assessment, the Secretary should 
     consider the state of competition, both within the United 
     States and international markets, for raw materials for high 
     speed applications, such as gallium or other materials.
     Military human immunodeficiency virus research
       The budget request included $5.7 million in PE 63105A for 
     military human immunodeficiency virus research.
       The House bill would authorize the budget request.
       The Senate amendment would authorize a decrease of $2.6 
     million for the program.
       The conferees agree to authorize the budget request.
     Navy antisubmarine warfare program
       The conferees note the 1997 report by the Naval Studies 
     Board of the National Academy of Sciences, Technology for the 
     United States Navy and Marine Corps, 2000-2035. The report 
     concludes that:
       (1) antisubmarine warfare (ASW) is one of the Navy's most 
     fundamental core competencies;
       (2) ASW must remain a core competency in the face of a 
     submarine threat that will increase in the 21st century to 
     become the dominant threat to the accomplishment of naval 
     missions;
       (3) the continuing draw down in naval forces and the 
     current de-emphasis on ASW have seriously eroded the Navy's 
     ASW capabilities;
       (4) this erosion of capabilities comes at a time when 
     potential future adversaries are rapidly acquiring advanced 
     quieting techniques and other offensive submarine 
     capabilities;
       (5) the lack of consensus on a submarine threat and 
     competing naval warfare priorities, combined with mounting 
     pressure on the overall defense budget, have put the Navy's 
     ASW program at historically low levels;
       (6) advances in ASW capability come about only as a result 
     of dedicated, long-term research and development based on at-
     sea operations, testing, measurements, and experimentation; 
     and
       (7) these types of research and development projects and 
     operations are largely absent from current Navy programs and 
     plans.

[[Page H8346]]

       The conclusions of the Naval Studies Board closely parallel 
     congressional concerns about the erosion of the Navy's ASW 
     capabilities since the end of the Cold War. These concerns 
     led to direction to the Secretary of Defense in the statement 
     of managers that accompanied the conference report on S. 1124 
     (H. Rept. 104-450), and in the classified annex that 
     accompanied the statement of managers on H.R. 3230 (H. Rept. 
     104-724). These reports directed the Secretary to assess the 
     current and projected U.S. ASW capability in the light of the 
     developing threat and budget trends, and to identify the 
     short-term and long-term improvements needed to cope with the 
     evolving submarine threat.
       The conferees commend the Navy and the Office of the 
     Secretary of Defense for The 1997 Anti-Submarine Warfare 
     Assessment, dated March 1998. The assessment reaffirms that 
     ASW is a top priority mission for the Navy, as well as being 
     a core and enduring naval competency. The assessment of ASW 
     training, modernization, and organization concludes that ASW 
     training proficiency has declined and recommends that 
     responsibility for ASW proficiency be refocused in the fleet. 
     According to the report, the highest priority ASW 
     modernization efforts are funded and the President's budget 
     request for fiscal year 1999 provides adequate equipment to 
     respond to likely threats to the end of the Future Year 
     Defense Program and beyond. The Navy has also created a new 
     staff organization within the Office of the Chief of Naval 
     Operations (N-84), and charged that organization with the 
     responsibility for integration and assessment of the Navy ASW 
     program.
       The conferees believe that ASW is a critical enabler for 
     naval operations in the world's littoral regions, and that a 
     stable and focused ASW program under appropriate oversight by 
     the Department of the Navy and the Office of the Secretary of 
     Defense will be critical to achieving the goals of near- and 
     long-term improvements in ASW proficiency and capabilities. 
     To that end, the conferees direct the Navy to update, at 
     least biannually, an ASW Master Plan that reflects the Navy's 
     overall ASW investment strategy and program. The conferees 
     also believe that the Chief of Naval Operations should 
     consider providing staffing and responsibility for N-84 that 
     is on a level commensurate with that of other Navy staff 
     resource sponsors for the functional warfare areas.
     Navy land attack missile program
       The budget request included $11.3 million in PE 63795N for 
     continued evaluation of a naval version of the Army Tactical 
     Missile System (NTACMS) for naval surface ship and submarine 
     use. No funds were included in the budget request for the 
     Land Attack Standard Missile (LASM), a land attack variant of 
     the Navy Standard Missile.
       The House bill would authorize the budget request. The 
     House bill would also direct that the Navy's land attack 
     missile program not proceed to a Milestone I development 
     decision until the analysis of alternatives and other issues 
     appropriate to a major acquisition program milestone decision 
     have been resolved.
       The Senate amendment would authorize the budget request. 
     The Senate amendment would also direct the Secretary of the 
     Navy to report, among other things, an analysis of 
     alternatives for an advanced gun system that considers 
     fulfilling some portion of the Navy's fire support 
     requirement with a modified version of the Army's extended 
     range multiple launch rocket system and some portion of the 
     fire support requirement with NTACMS.
       The House Report (H. Rept. 105-132) accompanying the 
     National Defense Authorization Act for Fiscal Year 1998 
     cautioned that a thorough, objective and independent cost and 
     operational effectiveness analysis of competing system 
     alternatives for meeting the operational requirements for a 
     naval land attack missile would be required before the Navy 
     proceeds with any development milestone decision for such a 
     missile system.
       The conferees are aware that the Chief of Naval Operations 
     selected LASM as the most cost effective near-term solution 
     to its requirement for a land attack missile system. 
     According to the Navy, selection of LASM was based on an 
     extensive and broadly based land attack analysis that 
     compared LASM and NTACMS on the basis of range, 
     responsiveness, lethality, growth potential, and cost. But, 
     the conferees believe that the assumptions used in the 
     analysis may not accurately reflect the operational realities 
     of the littoral battlefield. In addition, the impact of 
     selecting LASM may result in the cancellation of the NTACMS 
     program. Cancellation of NTACMS would result in a different 
     approach regarding land attack missile support of Marines 
     ashore and submarine employment in the littorals from that 
     described in Navy testimony before Congress. The conferees 
     are reluctant to approve a request for authorizing LASM if it 
     results in cancellation of NTACMS without Navy explanations 
     of the impact of such a decision on support of Marines ashore 
     and other submarine missions in littoral warfare.
       The conferees agree to authorize $11.3 million for 
     development, risk reduction, and analytical activities 
     leading to a defense acquisition program milestone decision 
     for the missile system program to satisfy the Navy's land 
     attack missile requirement. The conferees direct the 
     Secretary of Defense to ensure that the analysis of 
     alternatives for a Navy land attack missile system, as 
     discussed in the statements of managers accompanying the 
     National Defense Authorization Act for 1998 (Public Law 105-
     85) and the National Defense Authorization Act for Fiscal 
     Year 1999 (H. Rept. 105-532 and S. Rept. 105-189), and other 
     issues appropriate to a major acquisition milestone decision 
     are completed and the results reviewed by the Defense 
     Acquisition Board before the Navy proceeds with a development 
     milestone decision for the land attack missile system.
     Oceanographic research information
       The conferees are aware of recent announcements by the Vice 
     President that the Department of the Navy is declassifying, 
     and will make available for use by the public and private 
     institutions and agencies with ocean research and education 
     programs, previously classified acoustical data from the U.S. 
     Navy's underwater Sound Surveillance System (SOSUS) and data 
     on ocean temperature and salinity levels under the Arctic ice 
     cap. These data can be used, among other things, to track the 
     migrations of large marine mammals, predict natural 
     catastrophes, and support long-term climate change research. 
     The conferees believe that such actions provide the 
     opportunity to leverage the nation's $16.0 billion investment 
     in the SOSUS system by making data from this system available 
     for continuing defense research and for civilian scientific 
     research and education.
       The conferees request that the Chairman of the National 
     Oceanographic Research Leadership Council conduct an 
     assessment of: (1) the value of SOSUS data to meet the 
     requirements of appropriate private and public institutions 
     and agencies with ocean research and education programs; (2) 
     the cost of making SOSUS data available for such purposes in 
     comparison to the cost of deploying alternative data-
     gathering systems; (3) recommended options for making such 
     data available to civilian and defense research and education 
     institutions and agencies; and (4) recommendations on 
     effective ways to foster cooperation among agencies that 
     would benefit from SOSUS data, including the potential for 
     cost-sharing among the agencies and institutions that would 
     participate in the program. In conducting the assessment, the 
     Council should take into account the cooperative research and 
     development agreement that was established between the Navy 
     and the Scientific Environmental Research Foundation in June 
     1998, to use deactivated SOSUS stations to collect data for 
     scientific and educational purposes. The conferees further 
     request that a report of the results of the assessment be 
     included in the annual report to Congress on the National 
     Oceanographic Partnership Program that is to be submitted by 
     March 1, 1999.
     Optical correlation technology for automatic target 
         recognition
       The conferees understand that progress in the development 
     of optical correlation technology for automatic target 
     recognition holds promise for the application of this 
     technology to precision munitions, target cueing for 
     surveillance systems, medical diagnosis, and other 
     applications. The conferees agree with the direction 
     contained in the House report (H. Rept. 105-532) that the 
     Under Secretary of Defense (Acquisition and Technology) 
     report to the congressional defense committees with the 
     submission of the fiscal year 2000 budget request, the 
     overall plan and program of the Department of Defense for the 
     development and demonstration of optical correlator 
     technology for automatic target recognition. The conferees 
     urge the Secretary of Defense to consider using discretionary 
     funds to continue development of this program through fiscal 
     year 1999.
     Patriot anti-cruise missile defense
       The conferees reaffirm their support for fully evaluating 
     the Patriot anti-cruise missile (PACM) concept and direct the 
     Secretary of the Army to complete a rigorous test and 
     evaluation program in fiscal year 1999, using funds 
     previously appropriated for this purpose, to determine the 
     effectiveness of the PACM seeker against the full range of 
     cruise missile threats. Results of this evaluation shall be 
     provided to the congressional defense committees in a report 
     by April 15, 1999. The report shall also include an 
     assessment of options and associated costs for utilizing the 
     PACM seeker in future upgrades to existing Patriot missiles.
     Project M
       The budget request included $4.9 million in PE 63508N to 
     continue the development and demonstration of advanced 
     vibration control and quieting technology for naval machinery 
     support structures that was developed under the Defense 
     Advanced Research Project Agency's Project M.
       The House bill would authorize the budget request. The 
     House bill would also direct the Secretary of the Navy to 
     program funds for fiscal year 2000 to develop a prototype 
     system for surface ships that uses the Project M technology.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize the budget request to 
     continue the development and demonstration of the Project M 
     technology in the Navy's submarine large scale vehicle. The 
     conferees also request the Secretary of the Navy to assess 
     the potential benefits that might result from the application 
     of the Project M technology in surface ships and to report 
     the results of that assessment to the congressional defense 
     committees by March 31, 1999.

[[Page H8347]]

     Software security
       The conferees note the potential value of continuing 
     efforts to improve computer security by developing and 
     testing prototype software security mechanisms, and the 
     conferees urge the Secretary of Defense to consider using 
     $500,000 from discretionary funds for this purpose.

                     Legislative Provisions Adopted

              Subtitle A--Authorization of Appropriations

     Authorization of appropriations (secs. 201-202)
       The House bill contained provisions (secs. 201-202) that 
     would authorize the recommended fiscal year 1999 funding 
     levels for all research, development, test, and evaluation 
     accounts.
       The Senate amendment contained similar provisions.
       The conference agreement includes these provisions.

    Subtitle B--Program Requirements, Restrictions, and Limitations

     Management responsibility for Navy mine countermeasures 
         programs (sec. 211)
       The House bill contained a provision (sec. 211) that would 
     extend until fiscal year 2003 the Office of the Secretary of 
     Defense's responsibilities for certifying that: (1) the Navy 
     has submitted an adequate plan for mine countermeasures 
     programs; (2) the budget and the Future Years Defense Program 
     support the plan; and (3) the Chairman of the Joint Chiefs of 
     Staff has determined the Navy's program is sufficient.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Future aircraft carrier transition technologies (sec. 212)
       The budget request included $149.5 million for future 
     aircraft carrier research and development in PE 63512N and 
     $40.6 million for CV(X) feasibility studies in PE 63564N. The 
     request also included $38.5 million for CVN-77 contract 
     design in PE 64567N.
       The House bill contained a provision (sec. 212) that would 
     authorize the budget request and designate $50.0 million of 
     the $149.5 million authorization for future carrier 
     development to be available for CVN-77 research and 
     development.
       The Senate amendment contained a similar provision (sec. 
     212).
       The Senate recedes.
     Manufacturing technology program (sec. 213)
       The House bill contained a provision (sec. 213) that would 
     amend section 2525 of title 10, United States Code, to 
     establish goals for cost sharing in the manufacturing 
     technology program and procedures for waiver of the cost 
     sharing requirements. The provision would also require the 
     Secretary of Defense to include information on the extent of 
     cost sharing by participants in the manufacturing technology 
     program in the five-year plan for the manufacturing 
     technology program.
       The Senate amendment contained a similar provision (sec. 
     216) which would modify cost sharing requirements to allow 
     for different levels of cost sharing where appropriate, 
     provide for establishing the level of cost sharing by 
     competitive bidding, move the authority for wavier of cost 
     sharing requirements to the service secretaries, and require 
     cost share reporting to track investments by non-industry 
     program participants.
       The conferees agree to a provision that would require the 
     use of competitive procedures for determination of cost 
     sharing, delegate the authority to waive cost sharing 
     requirements to the Under Secretary of Defense for 
     Acquisition and Technology or to service acquisition 
     executives, provide for the establishment of annual goals for 
     cost sharing, and require that the five-year plan for the 
     program include assessments of the effectiveness of the 
     manufacturing technology program and of the extent to which 
     costs of projects are being shared by the participants in the 
     program.
       The conferees note the requirement of section 2525(d)(1) of 
     Title 10, United States Code, that competitive procedures 
     shall be used for awarding all grants and entering into all 
     contracts, cooperative agreements, and other transactions 
     under the manufacturing technology program. The conferees 
     note further the policy of Congress, as reflected in section 
     2374 of Title 10, United States Code, that the Department of 
     Defense, the military departments, the Coast Guard, and the 
     National Aeronautics and Space Administration, should not be 
     required by legislation to award a new grant for research, 
     development, test, or evaluation to a non-federal entity; and 
     that any program, project, or technology identified in 
     legislation be awarded through merit-based selection 
     procedures.
     Sense of Congress on the defense science and technology 
         program (sec. 214)
       The House bill contained a provision (sec. 214) that would 
     express the sense of Congress that at least 10 percent of the 
     funds in the research, development, test and evaluation 
     accounts of the services should be spent on science and 
     technology programs. The provision would also express the 
     sense of Congress concerning certain management objectives 
     and would require an interagency study on recommendations for 
     maintaining the technology base supporting the Department of 
     Defense.
       The Senate amendment contained a provision (sec. 1076) that 
     would express the sense of Congress that the Secretary of 
     Defense have an objective of increasing science and 
     technology funding by no less than 2 percent over inflation 
     above the amount requested for the prior fiscal year for each 
     year during the period of fiscal years 2000 through 2008. The 
     provision would also express the sense of Congress regarding 
     management goals for the program.
       The Senate recedes with an amendment that would include the 
     Senate funding objectives and integrate the House and Senate 
     management goals.
     Next generation internet (sec. 215)
       The budget request included $40.0 million in PE 62110E for 
     the next generation internet program.
       The House bill contained a provision (sec. 215) that would 
     authorize $53.0 million for the program and clarify that the 
     amount specified in section 201(4) would be the amount 
     authorized for the program, notwithstanding any other 
     provision of law.
       The Senate amendment contained no similar provision and 
     would authorize the budget request.
       The Senate recedes.
     Crusader self-propelled artillery system program (sec. 216)
       The Senate amendment contained a provision (sec. 211) that 
     would require the Secretary of the Army to revisit both 
     requirements and schedule for the established Crusader 
     program and provide a report to the Congress that addresses:
      (1) assessment of the risk associated with the current 
     Crusader program technology;
      (2) total requirement for Crusader associated with Army 
     After Next force structure revisions;
      (3) potential for reducing system weight by as much as 50 
     percent;
      (4) potential for propellant and munition alternatives and 
     the impact of maturing this technology on the overall program 
     schedule; and
      (5) cost and benefit analysis of delaying procurement of 
     Crusader to avoid affordability issues associated with the 
     current schedule and allow for maturation of weight and 
     propellant technologies.
       The provision would limit the expenditure of funds for 
     Crusader development to $223.0 million until 30 days after 
     the date on which the Secretary of the Army submits the 
     results of this report to the Congress.
       The House bill contained no similar provision.
       The House recedes with an amendment.
     Airborne Laser Program (sec. 217)
       The Senate amendment contained a provision (sec. 214) that 
     would: (1) direct the Secretary of Defense to conduct an 
     assessment of the technical obstacles and operational 
     shortcomings expected for the Airborne Laser (ABL) program; 
     (2) direct the Secretary to submit a report to Congress by 
     March 15, 1999 that outlines his findings and recommendations 
     regarding the ABL program; (3) recommend a reduction of $97.0 
     million for the ABL program; and (4) direct that no more than 
     $150.0 million of the funds remaining available to the ABL 
     program be obligated until 30 days after the Secretary 
     submits the report.
       The House bill contained no similar provision.
       The House recedes with an amendment that would: (1) direct 
     the Secretary of Defense to conduct an assessment of the 
     technical and operational aspects of the ABL program; (2) 
     direct the Secretary to submit a report to Congress by March 
     15, 1999 that outlines his findings and recommendations 
     regarding the ABL program; (3) authorize $235.2 million for 
     the ABL program, a reduction of $57.0 million to the budget 
     request; and (4) direct that no more than $185.0 million of 
     the funds authorized for the ABL program be obligated until 
     30 days after the Secretary submits the report.
       The conferees understand and support the Department of 
     Defense's desire to achieve operational boost phase intercept 
     capability as soon as technically possible. In pursuit of 
     this goal, the conferees support continuation of the Airborne 
     Laser program. The conferees note that, although the ABL 
     program has undergone a significant degree of technical 
     review, questions having to do with the technical risk in the 
     program continue to be raised in the Department of Defense 
     and by independent organizations. Although the conferees have 
     not come to any final conclusions regarding these questions, 
     they are concerned that the current ABL development program 
     may not include sufficient near-term risk reduction in the 
     area of beam compensation and may be structured to proceed 
     too rapidly with finalization of an objective design. In 
     particular, the conferees are concerned that the Air Force 
     plans to enter engineering and manufacturing development 
     (EMD) without adequate time to operate, test, and evaluate 
     the program definition and risk reduction (PDRR) 
     configuration. For example, the Air Force plans to order 
     its first EMD aircraft a year before the PDRR aircraft 
     undergoes a full system demonstration against a missile 
     target.
       To meet these concerns, the conferees believe that the 
     Secretary of Defense must carefully evaluate the technical 
     risk in the ABL program and determine: (1) whether additional 
     testing and risk reduction is necessary prior to integration 
     of the ABL subsystems into a commercial 747-400F aircraft; 
     and (2) whether the fully integrated PDRR aircraft should be 
     operated for a period of time and thoroughly tested prior to 
     finalizing an objective design. In addition, the Secretary 
     must also evaluate the ABL operational concepts and their 
     relationship to

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     technical risk and uncertainties in the program.
       The conferees direct the Secretary of Defense to establish 
     an independent review team to assist him in addressing the 
     issues specified above, and transmit to Congress the review 
     team's findings with the Secretary's report. While this 
     review is underway, and while the Air Force undertakes 
     additional ground testing and data collection, the conferees 
     believe that the Air Force should temporarily slow the pace 
     of activities related to integration of the PDRR aircraft. 
     Therefore, the conferees agree to authorize a reduction of 
     $57.0 million to the budget request for ABL. If the Secretary 
     concludes that additional ground testing or other risk 
     reduction activities beyond those already planned are 
     required during fiscal year 1999, the conferees agree to 
     authorize the Secretary to utilize up to $40.0 million from 
     funds authorized for ABL to conduct those activities.
     Enhanced Global Positioning System program (sec. 218)
        The Senate amendment contained a provision (sec. 215) that 
     would: (1) require the Secretary of Defense to develop an 
     enhanced Global Positioning System (GPS) program as an urgent 
     national security priority; (2) authorize $44.0 million for 
     fiscal year 1999 to begin such development; (3) urge the 
     Secretary of Defense to fund adequately this initiative in 
     the Future Years Defense Program; (4) urge the Secretary of 
     Transportation to provide sufficient funding to support 
     additional civil frequencies and other enhancements for civil 
     users; (5) extend by five years the existing requirement to 
     outfit all major Defense Department platforms with GPS 
     receivers by the year 2000; and (6) require the Secretary to 
     submit a plan for implementing this provision by April 15, 
     1999.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
       The conferees strongly support the modernization of the 
     Global Positioning System to meet new military requirements 
     and evolving threats. Such modernization should include those 
     enhancements necessary to sustain the Global Positioning 
     System's unique advantage to friendly forces for the long 
     term. Similarly, the modernization plan should include a 
     suitable array of methods and techniques to deny these same 
     advantages to an adversary when necessary. Although U.S. 
     forces presently may be more dependent than other nation's 
     forces on the Global Positioning System's highly accurate 
     position, velocity, and timing information, these same 
     dependencies will naturally arise among the forces of 
     potential enemies as satellite navigation technologies are 
     further disseminated and integrated into force doctrine, 
     training, and techniques, and as GPS-embedded applications 
     become widely available. While near term needs may suggest 
     that assured access to GPS signals by the United States and 
     its allies will have a higher pay-off than techniques that 
     would deny access to the GPS signal by adversaries, a longer 
     term view suggests that denial of enemy exploitation may 
     offer significant, if not overwhelming, advantage. 
     Furthermore, the conferees recognize that modernization of 
     GPS satellites will take a long time given current purchasing 
     approaches and the long life of individual satellites 
     comprising the operational satellite constellation. A design 
     change that must be implemented in a full constellation to be 
     effective will take 12 or more years to field and will be in 
     place for another 12-13 years. This 25-year time period 
     necessitates balanced investment in both protection and 
     prevention enhancements. Although the conferees appreciate 
     the funding constraints facing the Department of Defense, 
     they do not believe that such constraints justify freezing 
     the GPS design for the next quarter century in a way that 
     does not adequately respond to obvious emerging threats. 
     Consequently, the conferees direct the Secretary of Defense 
     to undertake a GPS modernization program that improves access 
     by friendly forces and denies access by hostile forces. The 
     conferees direct the Secretary to include in the report 
     required by this provision specific details of the actions to 
     protect and deny the GPS signal.
       The conferees note that the effort by the Department of 
     Defense to modernize the GPS system has delayed the new GPS 
     satellite design. Given this situation, it is premature for 
     the Department to enter into a multi-year procurement or 
     other significant block satellite buy. At the same time, 
     however, the Department requires additional funds for 
     research and development to define fully the scope of the GPS 
     modernization effort and to begin development of new 
     satellite sub-systems. Therefore, the conferees agree to 
     authorize no funds in Air Force missile procurement for GPS 
     advance procurement, and to authorize an increase of $44.0 
     million in PE 64480F for GPS modernization.

                 Subtitle C--Ballistic Missile Defense

     Sense of Congress on national missile defense coverage (sec. 
         231)
       The House bill contained a provision (sec. 231) that would 
     express the sense of Congress that any deployed national 
     missile defense system should defend all fifty states and 
     that U.S. territories should be protected from ballistic 
     missile attack.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Limitation on funding for the Medium Extended Air Defense 
         System (sec. 232)
       The House bill contained a provision (sec. 232) that would 
     prohibit the Secretary of Defense from obligating or 
     expending funds authorized and appropriated for the Medium 
     Extended Air Defense System (MEADS) until the Secretary 
     certifies to Congress that funding has been designated for 
     MEADS in the Future Years Defense Program (FYDP). The 
     provision would require that if such certification is not 
     received by January 1, 1999, the funds authorized for MEADS 
     would thereafter be authorized only for the purpose of 
     research and development to adapt the Patriot Advanced 
     Capability 3-Configuration 3 (PAC-3) to meet the Army 
     requirement for a mobile theater missile defense system.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would make funds 
     authorized for MEADS available to support alternative 
     programmatic and technical approaches to meeting the 
     requirement for mobile theater missile defense if the 
     Secretary does not certify to Congress that funding has been 
     designated for MEADS in the FYDP.
     Limitation on funding for cooperative ballistic missile 
         defense programs (sec. 233)
       The House bill contained a provision (sec. 233) that would 
     prohibit obligation or expenditure of $5.0 million authorized 
     to be appropriated for the Russian-American Observation 
     Satellites (RAMOS) program until the Secretary of Defense 
     certifies to Congress that the Department of Defense has 
     received detailed information concerning the nature, extent, 
     and military implications of ballistic missile technology 
     transfer from Russian sources to Iran.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Sense of Congress with respect to ballistic missile defense 
         cooperation with Russia (sec. 234)
       The Senate amendment contained a provision (sec. 231) that 
     would state that the United States should seek to foster a 
     climate of cooperation with Russia on matters related to 
     missile defense, especially in the area of early warning.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
       The conferees believe that a cooperative approach to 
     ballistic missile defense could lead to a mutually agreeable 
     evolution of the ABM Treaty, i.e., either modification or 
     replacement by a newer understanding or agreement, that would 
     clear the way for the United States and Russia to deploy 
     national missile defenses each believes necessary for its 
     security. If implemented in a cooperative manner, the 
     conferees do not believe that such steps would undermine the 
     original intent of the ABM Treaty, which was to maintain 
     strategic stability and permit significant nuclear arms 
     reductions.
     Ballistic missile defense program elements (sec. 235)
       The House bill contained a provision (sec. 235) that would 
     realign program elements for the Ballistic Missile Defense 
     Organization and require each program element to include 
     funding for the management and support necessary for the 
     activities within that program element.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Restructuring of theater high altitude area defense system 
         acquisition strategy (sec. 236)
       The House bill contained a provision (sec. 236) that would: 
     (1) require the Secretary of Defense to select an alternative 
     contractor as a potential source for the development and 
     production of the Theater High Altitude Area Defense (THAAD) 
     interceptor missile within a ``leader-follower'' acquisition 
     strategy; (2) require the Secretary of Defense to establish a 
     cost sharing arrangement with the THAAD prime contractor for 
     flight test failures of that missile beginning with the ninth 
     test flight; (3) require the Secretary of Defense to proceed 
     as expeditiously as possible with the milestone approval 
     process for the engineering and manufacturing development 
     (EMD) phase of the THAAD system for the battle management and 
     command, control, and communications (BM/C3) and ground based 
     radar elements of the system; (4) prohibit the obligation of 
     funds for the THAAD user operational evaluation system (UOES) 
     until there have been two successful tests of the THAAD 
     interceptor missile; and (5) prohibit the Secretary of 
     Defense from approving the commencement of EMD for the THAAD 
     interceptor missile until there have been three successful 
     tests of that missile.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would: (1) 
     require the Secretary of Defense to take appropriate steps to 
     implement technical and price competition for the development 
     and production of the THAAD interceptor missile; (2) 
     authorize $29.6 million to establish this technical and price 
     competition; (3) require the Secretary of Defense to 
     establish a cost sharing arrangement with the THAAD prime 
     contractor for flight test failures of that missile beginning 
     with the ninth flight test; (4) allow the Secretary of 
     Defense to proceed with the milestone approval process for 
     the EMD phase of the

[[Page H8349]]

     THAAD system for the BM/C3 and ground based radar elements of 
     the system; (5) require the Secretary of Defense to prepare a 
     plan that would allow for contingency deployment of THAAD 
     missile interceptors before U.S. military forces are equipped 
     with the objective configuration of those missiles; and (6) 
     prohibit the Secretary of Defense from approving the 
     commencement of EMD for the THAAD interceptor missile until 
     there have been three successful tests of that missile.
       The conferees are aware that the Department of Defense is 
     considering establishment of a second source for the THAAD 
     interceptor missile seeker, the portion of the missile deemed 
     to contain the highest technical risk. Based on information 
     received to date, the conferees tentatively support this 
     proposal, but direct the Secretary of Defense to submit a 
     detailed report on this concept to the congressional 
     defense committees by February 15, 1999, including the 
     cost and programmatic implications of this approach.

                       Subtitle D--Other Matters

     Extension of authority to carry out certain prototype 
         projects (sec. 241)
       The Senate amendment contained a provision (sec. 218) that 
     would extend the authority to carry out certain prototyping 
     projects as specified under section 845 of the National 
     Defense Authorization Act for Fiscal Year 1994 (Public Law 
     103-160), through September 30, 2001.
       The House bill contained no similar provision.
       The House recedes.
       The conferees continue to believe that the section 845 
     authority should only be used in the exceptional cases where 
     it can be clearly demonstrated that a normal contract or 
     grant will not allow sufficient access to affordable 
     technologies. The conferees are especially concerned that 
     such authority not be used to circumvent the appropriate 
     management controls in the standard acquisition and budgeting 
     process. Any further consideration of extending this 
     authority beyond September 30, 2001 will be based upon a 
     careful review and a conclusion by the congressional defense 
     committees that this authority has been used in a limited and 
     responsible manner. The conferees direct the Secretary of 
     Defense to provide a report to the congressional defense 
     committees, no later than March 1, 1999, on the use of this 
     authority.
     North Atlantic Treaty Organization alliance ground 
         surveillance concept definition (sec. 242)
       The Senate amendment contained a provision (sec. 219) that 
     would make available funds from Army and Air Force research 
     and development of a North Atlantic Treaty Organization 
     Alliance Ground Surveillance (NATO AGS) capability based on 
     the Joint Surveillance/Target Attack Radar System (JSTARS).
       The House bill contained no similar provision.
       The House recedes.
     NATO common funded civil budget (sec. 243)
       The Senate amendment contained a provision (sec. 220) that 
     would authorize the contribution of the United States to the 
     common funded Civil Budget of NATO.
       The House amendment contained no similar provision, but 
     would authorize funds included in the budget request for the 
     U.S. contribution to the common funded Civil Budget of NATO.
       The House recedes.
     Executive agent for cooperative research program of the 
         Department of Defense and the Department of Veterans 
         Affairs (sec. 244)
       The Senate amendment contained a provision (sec. 222) that 
     would authorize $10.0 million for the Department of Defense/
     Department of Veterans Affairs (DOD/VA) Cooperative Research 
     Program and clarify the role of the Department of Defense as 
     executive agent of the program.
       The House bill contained no similar provision.
       The House recedes with an amendment that would delete the 
     reference to funding. The conferees agree to authorize $10.0 
     million in PE 63738D for the DOD/VA cooperative research 
     program.
     Review of pharmacological interventions for reversing brain 
         injury (sec. 245)
       The Senate amendment contained a provision (sec. 232) that 
     would require the Secretary of Defense to review and report 
     to the Congress on research on pharmacological interventions 
     for reversing brain injury resulting from injuries incurred 
     in combat or exposures to chemical weapons.
       The House bill contained no similar provision.
       The House recedes.
       The conferees direct that the Secretary of Defense include 
     in the report a discussion of the ability to detect and treat 
     status epilepticus at the scene of the injury, which could 
     have an impact on reducing mortality and morbidity resulting 
     from both head trauma and chemical weapon exposure.
     Pilot program for revitalizing the laboratories and test and 
         evaluation centers of the Department of Defense (sec. 
         246)
       The Senate amendment contained a provision (sec. 1067) that 
     would provide authority for one laboratory and one test and 
     evaluation center to carry out a pilot program to demonstrate 
     improved cooperative agreements with universities and other 
     private entities.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Chemical warfare defense (sec. 247)
       The House bill contained a provision (sec. 723) that would 
     authorize the Secretary of the Air Force to conduct research 
     on health-related environmental and ecological effects of 
     exposure to chemical, biological and radiological hazards and 
     to develop more accurate risk assessment tools. In addition, 
     the provision would authorize an increase of $1.8 million in 
     the Defense Health Program to conduct this risk assessment 
     program.
       The Senate amendment contained a provision (sec. 1045) that 
     would direct the Secretary of Defense to review, and modify 
     as appropriate, Department of Defense chemical warfare 
     defense policy and doctrine regarding the protection of U.S. 
     forces against exposure to low levels of chemical warfare 
     agents. In addition, the provision would require the 
     Secretary of Defense to report to the congressional 
     defense committees on any modification to chemical warfare 
     policy and doctrine as a result of the review, and 
     establish a plan for a five-year research program to 
     assist the Secretary in developing policy and doctrine on 
     exposure to low-level chemical agents.
       The conferees agree to a provision that would direct the 
     Secretary of Defense to review and modify Department of 
     Defense chemical warfare policy and doctrine to ensure that 
     U.S. forces are adequately protected against any exposure to 
     chemical warfare agents, to include exposure to low-levels of 
     chemical agents and other potentially toxic substances in the 
     environment that would endanger the health of exposed 
     personnel. Additional areas to be included in the review are 
     the exposure of U.S. forces to low-grade nuclear and 
     electromagnetic radiation, preventive medications, and 
     diesel, jet, and other hydro-carbon based fuels.
       The provision would also require the Secretary of Defense 
     to develop and carry out a plan to establish a research 
     program that would assist the Secretary in developing policy 
     and doctrine, as well as new risk assessment methods and 
     instruments, with respect to the effects of exposure to 
     chemical warfare agents and other toxic substances, in order 
     to ensure that U.S. forces are adequately protected against 
     exposure to chemical warfare agents and toxic substances. The 
     provision also requires that a five-year budget plan be 
     developed.
       The Secretary of Defense is required to report to the 
     congressional defense committees not later than May 1, 1999, 
     on the review of DOD policies and doctrine on exposure to 
     chemical warfare agents and toxic substances, and any 
     recommendations to modify current policy and doctrine as a 
     result of the review, any recommended legislative provisions, 
     and the plan to establish the research program.
     Landmine alternatives (sec. 248)
       The Senate amendment contained a provision (sec. 233) that 
     would make $17.2 million available from funds authorized in 
     section 201 of this Act for alternatives to anti-personnel 
     landmines and anti-personnel submunitions used in mixed anti-
     tank mine systems; would require the Secretary of Defense to 
     contract with scientific organizations to identify existing 
     and new tactics, technologies and concepts that would provide 
     comparable combat capabilities to current anti-personnel 
     landmines and anti-personnel landmines used in mixed systems, 
     and report to Congress on their recommendations; would 
     require the Secretary of Defense to submit a report to the 
     congressional defense committees by April 1, 1999 and April 
     1, 2000 on the progress achieved in identifying and deploying 
     tactics, technologies and concepts as alternatives to anti-
     personnel landmines; and would define anti-personnel 
     landmines and mixed munition systems consistent with the 
     definitions contained in the Convention on the Prohibition on 
     the Use, Stockpiling, Production and Transfer of Anti-
     Personnel Mines and their Destruction (otherwise known as the 
     Ottawa Treaty) for anti-personnel landmine and mixed mine 
     systems.
       The House bill contained no similar provision, but would 
     authorize the budget request for Army and defense-wide 
     activities related to research and development of 
     alternatives to anti-personnel landmines.
       The conferees agree to a provision that would direct that 
     not more than $19.2 million be made available from amounts 
     authorized in section 201 of this Act for research and 
     development of alternatives to anti-personnel landmines and 
     anti-personnel landmines used in mixed anti-tank mine systems 
     that would be equivalent to the combat capabilities of the 
     current systems. The conferees also direct the Secretary of 
     Defense to submit, with the fiscal year 2000 budget, an 
     explanation of any funds requested to support a research and 
     development program for existing and new technologies and 
     concepts that could provide an equivalent combat capability 
     to anti-personnel submunitions used in mixed mine systems or 
     to mixed mine systems.
       Additionally, the conferees direct the Secretary of Defense 
     to submit a report to the congressional defense committees 
     describing progress made in identifying existing and new 
     technologies and concepts as alternatives to anti-personnel 
     submunitions used in mixed mine systems or to mixed mine 
     systems. The conferees direct the Secretary to include in the 
     report the recommendations of two scientific organizations 
     regarding the identification, adaptation, modification, 
     research and development of existing and new technologies and 
     concepts.

[[Page H8350]]

                   Legislative Provisions Not Adopted

     Limitation on funding for counterproliferation support
       The House bill contained a provision (sec. 234) that would 
     prohibit the obligation or expenditure of funds requested in 
     the fiscal year 1999 budget for the counterproliferation 
     support program in PE 63160BR until receipt of an annual 
     report required by Section 234 of the National Defense 
     Authorization Act of 1998 (Public Law 105-340) on the threat 
     posed to the United States and its allies by weapons of mass 
     destruction and cruise and ballistic missiles.
       The Senate amendment contained no similar provision.
       The House recedes.
     Unmanned aerial vehicle programs
       The budget request included $178.7 million for High 
     Altitude Endurance, Unmanned Aerial Vehicles (HAE UAVs) in 
     the Defense-Wide research and development account (PE 
     35205D8Z). This included $90.1 million for the Global Hawk 
     program, $40.5 million for the DarkStar program, and $48.1 
     million for common ground segment development. Within these 
     totals, the budget request included $68.6 million to support 
     contractor participation in test and evaluation of military 
     utility in joint exercises for the Global Hawk and DarkStar 
     programs ($39.2 million and $29.4 million, respectively). The 
     budget request also included $4.3 million for Air Force 
     endurance UAVs in PE 35205F.
       The House bill would authorize an increase of $32.5 million 
     in the procurement title to buy three additional Global Hawk 
     UAVs. The House bill would also transfer HAE UAV development 
     funding from Defense-Wide research and development to PE 
     35205F.
       The Senate amendment would authorize a decrease of $8.5 
     million. The Senate amendment also contained a provision 
     (sec. 213) that would terminate the DarkStar unmanned aerial 
     vehicle program, and transfer $32.5 million to the Global 
     Hawk unmanned aerial vehicle program once phase II testing of 
     the Global Hawk unmanned aerial vehicle is complete.
       The conferees note the recent successful test flights of 
     the DarkStar UAV. The Senate recedes on the provision to 
     terminate the DarkStar program.
       The conferees are disappointed that these two UAV programs 
     have not been able to adhere to the original schedule. The 
     conferees believe that the delays in the Global Hawk and 
     DarkStar development and test programs will reduce the level 
     of participation in joint exercises in fiscal year 1999 below 
     that level assumed in the budget request. The conferees are 
     also aware that these delays have affected the common ground 
     segment development effort as well.
       In view of the above, the conferees believe that the budget 
     request for joint exercise participation and common ground 
     segment development exceeds what can realistically be 
     accomplished in fiscal year 1999. Thus, the conferees agree 
     to authorize a decrease of $25.0 million for these two 
     activities in a manner which will allow equitable testing of 
     both Global Hawk and DarkStar, the specific application of 
     which shall be at the discretion of the Secretary of the Air 
     Force.
       The conferees have also learned that, because of business 
     decisions about production facilities unrelated to the Global 
     Hawk program, the contractor is experiencing substantial 
     dislocation in its business plan and the construction 
     facility has been forced to operate in a manner that could 
     adversely impact any future Global Hawk production. 
     Accordingly, the conferees agree to authorize an increase of 
     $25.0 million to mitigate the effects of the business plan 
     dislocation on the Global Hawk construction facility.
       In summary, the conferees authorize $183.0 million for 
     endurance UAVs in PE 35205F, including a $25.0 million 
     increase to mitigate adverse impacts to the Global Hawk 
     construction facility, and a $25.0 million decrease to be 
     applied against the joint exercise and/or common ground 
     segment development activities.
       In accordance with section 216 of the National Defense 
     Authorization Act for Fiscal Year 1998 (Public Law 105-85), 
     the conferees reiterate that no additional HAE UAV aircraft 
     are to be procured until the completion of the respective 
     phase II military user assessments (NMA).
       Because the conferees believe that the transition to 
     procurement could involve significant air vehicle design 
     changes, the conferees direct the Department of Defense to 
     conduct any follow-on HAE UAV procurement program in 
     adherence with its established acquisition procedures. 
     Further, the conferees direct that no follow-on HAE UAV 
     procurement may commence until the Secretary of the Air Force 
     provides the congressional defense and intelligence 
     committees with the following:
       (1) a formal statement of requirements for the HAE UAVS;
       (2) a certification that either or both of these UAVs 
     satisfy the Air Force's military utility and suitability 
     requirements; and
       (3) completes a formal engineering and manufacturing 
     development program for the selected UAV alterative(s).
     Persian Gulf illnesses
       The Senate amendment contained a provision (sec. 221) that 
     would authorize an increase of $10.0 million in PE 61105D for 
     research in Persian Gulf illnesses.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees urge the Secretary of Defense to use 
     discretionary funds to increase research for Persian Gulf 
     illnesses in fiscal year 1999.
     Low cost launch development program
       The Senate amendment contained a provision (sec. 223) that 
     would increase funds for low cost launch technology 
     development.
       The House bill contained no similar provision.
       The Senate recedes. Funding for low cost launch technology 
     development is addressed elsewhere in this report.

                  Title III--Operation and Maintenance

     Overview
       The budget request for fiscal year 1999 contained an 
     authorization of $94,219.1 million for Operation and 
     Maintenance in the Department of Defense and $900.0 for 
     Working Capital Fund Accounts in fiscal year 1999. The House 
     bill would authorize $92,476.5 million for Operation and 
     Maintenance and $1,746.1 for Working Capital Fund Accounts. 
     The Senate amendment would authorize $93,849.8 million for 
     Operation and Maintenance and $764.1 for Working Capital Fund 
     Accounts. The conferees recommended an authorization of 
     $92,891.5 million for Operation and Maintenance and $1,746.1 
     for Working Capital Fund Accounts for fiscal year 1999. 
     Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

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[[Page H8380]]

     Arms control implementation
       The budget request included $275.3 million in the military 
     services and defense accounts to meet specific arms control 
     implementation and compliance obligations. The budget request 
     is formulated on anticipated resource requirements, to 
     include planning assumptions of anticipated dates of entry 
     into force of arms control agreements, numbers of inspections 
     or observations to be performed in the year, data reporting 
     and information exchange requirements.
       The House bill would decrease the budget request for the 
     On-Site Inspection Agency for the following: $1.5 million for 
     START II implementation activities; $1.0 million for 
     implementation of the Open Skies Treaty; and $1.0 million for 
     activities related to entry into force of the Comprehensive 
     Test Ban Treaty (CTBT). The House bill would also authorize a 
     decrease of $25.0 million for research and development 
     activities related to implementation of the CTBT. Lastly, the 
     House bill would authorize no funds for reimbursement to the 
     Organization for the Prohibition of Chemical Weapons (OPCW) 
     for the costs of inspectors salaries and transportation from 
     the Hague for inspections conducted pursuant to the Chemical 
     Weapons Convention.
       The Senate amendment would authorize no funds to reimburse 
     the Organization for the Prohibition of Chemical Weapons for 
     inspectors salaries and transportation from The Hague to the 
     U.S. Point of Entry, and for reimbursement of the cost of 
     arms control inspections in foreign countries when those 
     costs are the obligation of the inspected country.
       The conferees agree to authorize a decrease of $28.0 
     million for the following arms control implementation 
     activities: $1.5 million for START II; $1.0 million for Open 
     Skies activities; $1.0 million for CTBT; $9.0 million for 
     reimbursement of other than ``usual'' in-country inspection 
     costs; and, $0.5 million for anticipated reimbursement of 
     payments for arms control inspection costs borne by the 
     inspected party to a treaty or agreement. The conferees also 
     agree to a decrease of $15.0 million for research and 
     development activities in support of CTBT and U.S. nuclear 
     test detection requirements.
       The conferees agree that of the funds authorized for 
     research and development activities in support of CTBT 
     requirements, $20.0 million shall be available for efforts to 
     develop critical seismic technology to detect, verify, and 
     evaluate both natural and weapons-related phenomena important 
     to nuclear test detection.
     Navy Environmental Leadership Program
       The budget request included $2.4 million for the Navy 
     Environmental Leadership Program (NELP).
       The House bill would authorize an increase of $4.0 million 
     for NELP.
       The Senate amendment would authorize no funds for NELP.
       The conferees agree to authorize an increase of $2.0 
     million for NELP.
     Defense Threat Reduction Agency (DTRA)
       The budget request included $304.7 million for the Defense 
     Threat Reduction Agency (DTRA).
       In November 1997, as part of its Defense Reform Initiative 
     (DRI), the Department of Defense recommended the 
     establishment on October 1, 1998 of the Defense Threat 
     Reduction Agency (DTRA), a single agency that would carry out 
     programs to counter proliferation and reduce threats posed by 
     weapons of mass destruction and to provide nuclear weapons 
     stockpile and related support. The agency would consolidate 
     several functions from the Office of the Secretary of Defense 
     (OSD) and the Washington Headquarters Services involved in 
     the oversight and management of associated programs, 
     including the On-Site Inspection Agency (OSIA), the Defense 
     Special Weapons Agency (DSWA), the chemical-biological 
     defense program and the counterproliferation support program. 
     The budget request also recommended elimination of the 
     position of the Assistant to the Secretary of Defense for 
     Nuclear, Chemical and Biological Matters (ATSD(NCB)).
       The House bill would authorize a decrease of $500,000 for 
     DTRA.
       The Senate amendment would authorize a decrease of $20.0 
     million for DTRA and would recommend that in addition to 
     transferring the activities of the OSIA and DSWA to the DTRA, 
     the chemical-biological defense program, counterproliferation 
     support program, the unitary and nonstockpile chemical and 
     munitions destruction programs, and programs related to force 
     protection, such as the physical security program (PE 
     63228D8Z), and the counter-terror technical support program 
     (PE 63122D8Z), also be transferred to DTRA.
       The conferees agree to authorize a decrease of $12.0 
     million for DTRA. The conferees agree that the 
     counterproliferation support program and activities related 
     to force protection, such as the physical security program 
     (PE 63228D8Z) and subelements of the counter-terror technical 
     support program (PE 63122D8Z) related to weapons of mass 
     destruction and force and infrastructure protection, be 
     transferred to DTRA. As noted elsewhere in this report, 
     oversight and direction of the counter-terror technical 
     support program remains with the Assistant Secretary of 
     Defense (Special Operations/Low Intensity Conflict).
       The conferees agree that policy and programmatic oversight 
     for the chem-bio defense program and the chemical 
     demilitarization program should remain within the Office of 
     the Secretary of Defense, and that the Department of the Army 
     should remain the executive agent for these programs, 
     pursuant to Section 1701 of the National Defense 
     Authorization Act for Fiscal Year 1994 (Public Law 103-160) 
     and Section 1412 of the Department of Defense Authorization 
     Act for Fiscal Year 1986 (Public Law 99-145). However, the 
     conferees do recognize that there may be activities within 
     both of these programs that represent unique operational 
     responsibilities of DTRA, and encourage DTRA to consult 
     closely with both the Office of the Secretary of Defense and 
     the Department of the Army.
       The conferees agree to a separate provision (sec. 1521) 
     dealing with the Defense Technical Security Administration 
     (DTSA). A discussion of the conferees recommendation for the 
     DTSA can be found elsewhere in this report.
       The conferees do not agree to transfer the statutory 
     responsibility for nuclear weapons, including support of the 
     Nuclear Weapons Council, to DTRA. Elsewhere in this report 
     the conferees discuss in greater detail the decision not to 
     abolish the Assistant to the Secretary of Defense for 
     Nuclear, Chemical, and Biological Matters.
       A part of the proposal to create DTRA is the physical 
     consolidation of the various functions located in the Dulles 
     area of Virginia. The On-Site Inspection Agency (OSIA), one 
     of the DTRA components, is currently located in the Dulles 
     area. The conferees have been informed by the Department of 
     Defense (DOD) that sufficient space does not currently exist 
     at OSIA, or in the Dulles area, to co-locate all of the DTRA 
     elements in one building or in one complex. As a result, DOD 
     must either build or lease substantial additional space to 
     accommodate the new organization. The conferees believe that 
     one of the primary goals of any consolidation should be to 
     have all the elements of the DTRA either in one building or 
     complex or at least within walking distance of each other. 
     Otherwise, the conferees are concerned the consolidation 
     unnecessarily could result in substantial disruption of 
     personnel and substantial increases in time commuting to 
     meetings and other events during the day.
       Before any further commitments for office space are made or 
     additional efforts taken to consolidate the component parts 
     of DTRA in the Dulles area, the conferees direct the 
     Secretary of Defense to submit a report no later than May 14, 
     1999 on the cost and overall effect of this move on the work 
     of the agency. This report should address: the availability 
     of public transportation; plans for transporting employees 
     during the day; relocations costs; commuting impacts; 
     potential savings; an assessment of the advantages and 
     disadvantages of co-locating and co-locating to the Dulles 
     area; issues associated with force protection; an assessment 
     of the alternatives to co-locating including not moving; and 
     the impact on retention and morale of personnel that would 
     move.
     Joint Military Intelligence Program
       The budget request included $3.8 billion in the Operation 
     and Maintenance, Defense-Wide account for classified and 
     intelligence programs, including funds in the Joint Military 
     Intelligence Program for the National Imagery and Mapping 
     Agency (NIMA), the Joint Reserve Intelligence Program (JRIP), 
     and the Command, Control, Communications, Computers, 
     Intelligence, Surveillance, and Reconnaissance Integrated 
     Architecture Plan (CIAP).
       The House bill would authorize a net decrease of $9.0 
     million for NIMA, an increase of $3.0 million for JRIP, and 
     an increase of $3.0 million for CIAP. The House report (H. 
     Rept. 105-508) accompanying the Intelligence Authorization 
     Act for Fiscal Year 1999 (H.R. 3694) directed that no funds 
     authorized or appropriated for NIMA be made available for the 
     joint mapping tool kit (JMTK) module of the global command 
     and control system (GCCS) until the Assistant Secretary of 
     Defense for Command, Control, Communications, and 
     Intelligence (ASD(C3I)) either certifies that the Defense 
     Information Systems Agency (DISA) will procure the module 
     commercially, or reports to the congressional defense and 
     intelligence committees why such commercial procurement would 
     be disadvantageous.
       The Senate amendment would authorize the budget request for 
     NIMA, JRIP, and CIAP.
       The conferees agree to authorize a decrease of $7.0 million 
     for NIMA sustaining capabilities and an increase of $7.0 
     million for product outsourcing. The conferees direct that 
     the sustaining capabilities reduction be applied equitably 
     across all NIMA facilities and functions, and that no more 
     than half of the decrease be applied to personnel. The 
     conferees also agree to authorize an increase of $3.0 million 
     for JRIP and an increase of $3.0 million for CIAP.
       With regard to the House position on JMTK module 
     procurement, the conferees agree that NIMA and DISA should be 
     acquiring commercially available products unless there is 
     very strong justification to the contrary. Therefore, the 
     conferees direct the ASD (C3I) to provide the congressional 
     defense and intelligence committees by January 29, 1999 a 
     report on his plan for: (1) establishing a process for 
     certifying commercial products that meet GCCS interface 
     protocols and standards; (2) providing all documentation 
     needed for vendors to determine whether their applications 
     software products can achieve such certification; and (3) 
     ensuring

[[Page H8381]]

     that NIMA and DISA are making all reasonable efforts to 
     evaluate commercially available GCCS modules (such as JMKT) 
     that can achieve such certification before spending 
     Department of Defense funds to develop such modules.
     Domestic emergency response program
       The budget request included $246.2 million for key 
     Department of Defense programs to counter paramilitary and 
     terrorist threats involving weapons of mass destruction, 
     including $99.1 million for the domestic emergency response 
     preparedness program as follows: $49.9 million for the 
     Department of Defense to prepare and enhance Federal, state 
     and local response capabilities to terrorist incidents 
     involving weapons of mass destruction (WMD), and $49.2 
     million for the Department of the Army for the Reserve 
     Components' participation in domestic emergency preparedness 
     and response to the terrorist use of weapons of mass 
     destruction.
       The House bill would authorize a decrease of $28.5 million 
     for the Reserve Components' participation in WMD domestic 
     preparedness, including $14.6 million for military personnel, 
     $7.0 million for operation and maintenance, and $6.9 million 
     for the procurement of contamination avoidance equipment.
       The Senate amendment would authorize the budget request for 
     domestic emergency preparedness for the Department of Defense 
     and the Department of the Army. In addition, the Senate would 
     recommend the transfer of the mission, function and resources 
     for the Defense domestic emergency preparedness program to 
     the Defense Threat Reduction Agency (DTRA).
       The conferees agree to authorize the budget request for 
     countering paramilitary and terrorist WMD threats and for the 
     DOD and the Department of the Army for the WMD domestic 
     emergency response program. Authorization of Reserve 
     Components' participation in WMD domestic emergency 
     preparedness and response is discussed in Title V of this 
     report. Additionally, specific adjustments to program 
     elements for countering paramilitary and terrorist WMD 
     threats are discussed elsewhere in the report on the 
     individual projects which are included in the program.
       The conferees are aware that a National Coordinator has 
     been appointed by the President, pursuant to the direction 
     contained in the National Defense Authorization Act for 
     Fiscal Year 1997 (Public Law 104-201), whose responsibilities 
     shall include operational oversight of the Federal 
     government's security and counterterrorism efforts, to 
     include domestic emergency preparedness and response to the 
     terrorist use of WMD. The conferees have included a provision 
     in Title XIV of this report that would require the President 
     to increase the effectiveness of the domestic emergency 
     preparedness program and to submit a report to Congress by 
     January 31, 1999 outlining the actions taken to increase the 
     effectiveness of the program. In addition, the conferees 
     direct that the report submitted by the President on January 
     31, 1999 include information on the efforts to meet the 
     challenge of limiting the damage and manage the consequences 
     of the terrorist use of WMD, as outlined in Presidential 
     Decision Directive (PDD) 62. The conferees understand that 
     the intent of PDD 62 is to create a new and more systematic 
     approach to fighting the threat of the terrorist use of WMD. 
     The report should outline the role and obligations of the 
     National Coordinator in overseeing the relevant policies and 
     programs in the U.S. Government, the responsibility of the 
     National Coordinator to the Congress, implementation of 
     recommendations on budgets for counter-terrorism programs and 
     the coordination and development of guidelines necessary for 
     crisis management. The conferees request that the President's 
     report identify requirements for any additional fiscal year 
     1999 funds that may be required to implement actions taken to 
     increase the effectiveness of the domestic emergency response 
     program.
       The conferees endorse the direction contained in the Senate 
     report (S. Rept. 105-189) requiring the Secretary of Defense 
     to report to the congressional defense committees on the use 
     of the DOD stockpile of vaccines, medical supplies and 
     protective gear in a domestic WMD emergency, and the 
     availability of vaccines, antiserums and antidotes in other 
     Federal entities that could also be used. In addition, the 
     President's report to Congress should discuss the 
     advisability of establishing regional stockpiles of both 
     emergency protective gear and vaccines that could be 
     available for emergency use by Federal, state and local 
     responders in the event of a terrorist event using WMD.


                       ITEMS OF SPECIAL INTEREST

     Fire support software engineering center
       The conferees are concerned about the readiness and 
     upgrades of Army command and control and fire direction 
     systems presently maintained by the Fire Support Software 
     Engineering Center (FSSEC) at Fort Sill, Oklahoma. Delays on 
     systems such as the Battery Computer System, the Initial Fire 
     Support Automated System, and the Multiple Launch Rocket 
     System must be avoided. Therefore, the conferees urge the 
     Army to continue full operational funding for the FSSEC.
     Lead-based paint soil contamination at Department of Defense 
         facilities
       A December 20, 1996, Environmental Protection Agency (EPA) 
     memorandum indicates that the Comprehensive Environmental 
     Response, Compensation and Liability Act (CERCLA) may be 
     applied to compel the cleanup of lead-contaminated soils on 
     federal facilities. The conferees understand that, to date, 
     EPA has only applied this interpretation of CERCLA at DOD 
     sites.
       The conferees note that section 120(a)(1) and (2) of the 
     CERCLA provides that federal facilities are to comply with 
     all guidelines, rules, regulations, and criteria ``. . . in 
     the same manner, and to the extent as such guidelines, rules, 
     regulations, and criteria are applicable to other 
     facilities.'' Although the conferees recognize that there may 
     be quantifiable human health risks that support response 
     actions at certain sites with lead-based paint contamination, 
     there is concern about consistency.
       The conferees are concerned about the possibility of 
     disparate enforcement actions related to lead-based paint. 
     The conferees direct that the Secretary of Defense include in 
     the fiscal year 1998 annual report on environmental 
     restoration (10 U.S.C. 2706(a)) a description of the sites, 
     human health risks, costs, and delays, if any, related to the 
     EPA enforcement of response action requirements for lead-
     based paint at Department of Defense sites.
     State certification of underground storage tanks
       The conferees note that underground storage tanks owned and 
     operated by the Department of Defense (DOD) are subject to 
     Federal, state, and local statutory and regulatory guidance. 
     The Resource Conservation and Recovery Act (RCRA) (42 U.S.C. 
     6991-6991h) sets minimum standards for spill, overfill, and 
     corrosion protection mechanisms to be included in standards 
     for upgrading, replacing, and closing new and existing 
     underground storage tanks. Existing underground storage 
     tanks, those installed prior to December 22, 1988, must be 
     upgraded to have spill, overfill, and corrosion protection, 
     otherwise such tanks may be subject to removal, closure in 
     place, or replacement. Generally, state environmental 
     regulatory agencies have adopted the Federal minimum RCRA 
     compliance standards for underground storage tanks.
       A recent audit conducted by the DOD Office of Inspector 
     General (IG) determined that there were significant variances 
     between state- and DOD-generated underground storage tank 
     inventories. The DOD IG determined that such divergent 
     results occurred because the DOD managers and state 
     environmental regulators prepared separate underground 
     storage tank inventories that were not reconciled. Consistent 
     with that determination, the DOD IG concluded that 
     operations may be disrupted at some DOD installations 
     after December 22, 1998, if state regulatory agencies do 
     not obtain accurate data with which to assess DOD 
     underground storage tank compliance under RCRA, Subtitle 
     I.
       The conferees direct the Secretary of Defense to submit a 
     report, no later than 60 days after the enactment of this 
     Act, to the congressional defense committees on the number of 
     underground storage tanks projected to be noncompliant after 
     December 22, 1998. The report shall identify a plan that 
     would minimize operational disruptions associated with 
     noncompliant tanks.


                     LEGISLATIVE PROVISIONS ADOPTED

               Subtitle A--Authorization of Appropriations

     Authorization of appropriations (secs. 301-302)
       The House bill contained provisions (secs. 301-302) that 
     would authorize the recommended fiscal year 1999 funding 
     levels for all operations and maintenance and working capital 
     fund accounts.
       The Senate amendment contained similar provisions.
       The conference agreement includes these provisions.
     Armed Forces Retirement Home (sec. 303)
       The House bill contained a provision (sec. 303) that would 
     authorize $70.7 million from the Armed Forces Retirement 
     Trust Fund for the operation of the Armed Forces Retirement 
     Home, including the U.S. Soldiers' and Airmen's Home and the 
     Naval Home.
       The Senate amendment contained an identical provision (sec. 
     303).
       The conference agreement includes this provision.
     Transfer from the National Defense Stockpile Transaction Fund 
         (sec. 304)
       The House bill contained a provision (sec. 304) that would 
     authorize the Secretary of Defense, to the extent provided in 
     an appropriation act, to transfer $150.0 million from the 
     National Defense Stockpile Transaction Fund to the operations 
     and maintenance accounts.
       The Senate amendment contained an identical provision.
       The conference agreement includes this provision.

    Subtitle B--Program Requirements, Restrictions, and Limitations

     Refurbishment of M1-A1 Tanks (sec. 311)
       The House bill contained a provision (sec. 305) that would 
     authorize $31.0 million for the refurbishment of up to 70 M1-
     A1 tanks under the AIM-XXI program.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Operation of prepositioned fleet, National Training Center, 
         Fort Irwin, California (sec. 312)
       The House bill contained a provision (sec. 306) that would 
     authorize $60.2 million for

[[Page H8382]]

     the operation of the prepositioned fleet of equipment during 
     training operations at the National Training Center, Fort 
     Irwin, California.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Berthing space at Norfolk Naval Shipyard, Virginia (sec. 313)
       The House bill contained a provision (sec. 307) that would 
     authorize the Navy to obligate $6.0 million for the 
     relocation of the U.S.S. Wisconsin from Norfolk Naval 
     Shipyard to another suitable location to increase available 
     berthing space at the shipyard.
       The Senate amendment contained no similar provision.
       The Senate recedes.
       The conferees are aware of the facility capacity 
     constraints at Norfolk Naval Shipyard where the Navy 
     currently maintains some of its inactive reserve vessels. 
     These constraints require the relocation of the U.S.S. 
     Wisconsin to a different location in order to make space 
     available for active vessels in need of repair and 
     maintenance. Because of the requirement for the Navy to berth 
     this deep draft vessel within the Norfolk vicinity so that it 
     can be returned to the shipyard for reactivation, if 
     necessary, the Navy is exploring alternative berthing sites 
     including some within the Elizabeth River. The committee is 
     aware that the redeployment of this vessel to a suitable 
     location in the Norfolk area may require some additional 
     dredging. Therefore, the conferees recommend an increase of 
     $6.0 million for the dredging and other costs associated with 
     the redeployment of the U.S.S. Wisconsin within the Norfolk 
     region.
     NATO common-funded military budget (sec. 314)
       The budget request for Army operations and maintenance 
     included $227.4 million for support of other nations, which 
     includes support of North Atlantic Treaty Organization (NATO) 
     operations and NATO expansion.
       The Senate amendment contained a provision (sec. 314) that 
     would authorize the budget request for Army operations and 
     maintenance for support of other nations.
       The House bill contained no similar provision.
       The House recedes.

                  Subtitle C--Environmental Provisions

     Settlement of claims of foreign governments for environmental 
         cleanup of overseas sites formerly used by the Department 
         of Defense (sec. 321)
       The Senate amendment contained a provision (sec. 326) that 
     would require the President to provide notification to 
     Congress of any negotiations related to the ex-gratia 
     settlement of environmental cleanup claims by other 
     countries.
       The House bill contained no similar provision.
       The House recedes.
     Authority to pay negotiated settlement for environmental 
         cleanup of formerly used defense sites in Canada (sec. 
         322)
       The House bill contained a provision (sec. 321) that would 
     authorize the Secretary of Defense to pay the Government of 
     Canada up to $100.0 million in annual payments over a ten 
     year period.
       The Senate amendment contained a provision (sec. 325) that 
     would allow for the payment of $100.0 million reimbursement 
     to Canada, subject to annual authorizations and 
     appropriations process. The Department would be required to 
     submit to Congress evidence of proportionate Canadian 
     investment in environmental cleanup in support of each annual 
     authorization and appropriation request. The provision would 
     make certain findings regarding the basis for the 
     reimbursement, state that the authorization shall not be 
     construed as precedent setting, and that the $100.0 million 
     would be paid in full satisfaction of any and all 
     environmental contamination claims by Canada.
       The House recedes with an amendment that would authorize 
     the $10.0 million appropriated in fiscal year 1998 
     appropriation for the Canadian reimbursement.
     Removal of underground storage tanks (sec. 323)
       The House bill contained a provision (sec. 322) that would 
     enable the Department of Defense (DOD) to use not more than 
     $150,000 of the funds available for environmental restoration 
     of formerly used defense sites to conduct removal of 
     underground storage tanks at the Authorities Allied 
     Industrial Park in Macon, Georgia.
       The Senate amendment contained no similar provision.
       Senate recedes with an amendment that would give the 
     Secretary of Defense discretion to fund any tank removal at 
     formerly used defense sites. The conferees note that such 
     exercise of discretion would be dependent upon a 
     determination of DOD liability, consistent with current law. 
     The conferees direct the Secretary of Defense to determine 
     whether it would be appropriate to use authorized funds for 
     removal of former DOD underground storage tanks, and then 
     report to the congressional defense committees within 90 days 
     of the enactment of this Act.
     Report regarding polychlorinated biphenyls under Department 
         of Defense control overseas (sec. 324)
       The Senate amendment contained a provision (sec. 321) that 
     would amend Chapter 157 of title 10, United States Code, by 
     adding a new section to permit Department of Defense agencies 
     to transport to the United States for disposal, treatment, or 
     storage of foreign manufactured polychlorinated biphenyls 
     (PCBs) generated by the Department's overseas activities. The 
     provision would ensure that the PCB-containing material 
     transported to the United States is handled in an 
     environmentally responsible manner.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense to submit a report to the Congress that 
     addresses international and domestic issues related to the 
     transportation and disposition of foreign manufactured PCBs.
     Modification of deadline for submittal to Congress of annual 
         reports on environmental activities (sec. 325)
       The Senate amendment contained a provision (sec. 322) that 
     would amend section 2706 of title 10, United States Code, by 
     substituting the 45 day annual reporting deadline for the 
     current 30 day period.
       The House bill contained no similar provision.
       The House recedes.
       The conferees are aware that the Department of Defense has 
     considered modification of the annual report on environmental 
     restoration activities. While the Department has been 
     directed to restructure the annual report on environmental 
     compliance by including useful and comprehensible 
     information, the conferees note that the environmental 
     restoration report does not require such changes. The 
     conferees expect that any modifications to the annual 
     environmental reports will be fully coordinated with the 
     Committee on Armed Services of the Senate and the Committee 
     on National Security of the House of Representatives.
     Submarine solid waste control (sec. 326)
       The Senate amendment contained a provision (sec. 323) that 
     would amend the Act to Prevent Pollution from Ships (APPS) 
     (33 U.S.C. 1901, et seq.) by authorizing certain submersible 
     vessels owned or operated by the Navy to discharge non-
     plastic garbage that has been compacted and weighted to 
     ensure negative buoyancy within special use areas. The APPS 
     implements the Annex V of the International Convention for 
     the Prevention of Pollution on Ships (MARPOL). The Navy has 
     determined that compliance with the special use area 
     requirements of MARPOL Annex V would impair submarine 
     operations and operational capability, or would not be 
     technologically feasible. A comprehensive Navy environmental 
     analysis revealed that the discharge of non-plastic garbage 
     from Navy submarines would not have a significant effect on 
     the marine environment, either within or beyond the limits of 
     MARPOL Annex V special use areas.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
       The conferees direct the Navy to provide adequate support 
     and justification for future funding requests related to the 
     compliance obligations associated with this new authority.
     Arctic Military Environmental Cooperation program (sec. 327)
       The budget request included $5.5 million in the defense 
     operations and maintenance to address military environmental 
     matters in the Arctic region under the Arctic Military 
     Environmental Cooperation (AMEC) program, to include 
     environmental restoration activities.
       The Senate amendment contained a provision (sec. 327) that 
     would authorize the AMEC program, subject to the legislative 
     prohibitions and limitations of the Cooperative Threat 
     Reduction (CTR) program, to include section 1503 of the 
     National Defense Authorization Act for Fiscal Year 1997 
     (Public Law 105-85). The provision would authorize $4.0 
     million for AMEC, a decrease of $1.5 million, and would 
     preclude the obligation or expenditure of fiscal year 1999 
     funds until 45 days after the Secretary of Defense submits a 
     plan that specifies the conformance of AMEC projects to 
     existing prohibitions and limitations on the use of CTR 
     funds.
       The House bill contained no similar provision. The House 
     report (H. Rept. 105-532) urged the Secretary of Defense to 
     use up to $1.0 million to support the establishment of a 
     Joint United States-Russia Nuclear Materials Commission that 
     would include legislators, agency and ministry leaders, and 
     environmental experts representing the international 
     environmental community.
       The House recedes with an amendment that would require 
     congressional notification prior to the obligation of AMEC 
     funds, similar to the requirement that applies to the use of 
     CTR funds, and would also prohibit the use of AMEC funds for 
     environmental restoration. The conferees agree that AMEC 
     should address important military environmental issues 
     related to U.S. national security interests in the Arctic. In 
     order to ensure that AMEC has the requisite focus, the 
     conferees expect the Secretary of Defense to develop a 
     comprehensive program plan, consistent with the legislative 
     prohibitions and limitations of the CTR program. That plan 
     must be in place before funds are obligated for AMEC. The 
     conferees direct the Secretary of Defense to include in the 
     plan a specific program termination date.
       The Secretary of Defense recently notified the Congress of 
     an intent to reobligate prior year CTR funds for AMEC to ``. 
     . . focus on threats to the environment. . . .'' The 
     conferees are concerned about the vagueness of this notice, 
     the possible use of reobligated

[[Page H8383]]

     funds for environmental restoration, and the potential 
     conflict with existing law. The Congress prohibited the use 
     of CTR funds for the provision of assistance to promote 
     environmental restoration (National Defense Authorization Act 
     for Fiscal Year 1997 (Public Law 105-85)). The new AMEC 
     authority and existing CTR requirements would prohibit the 
     use of CTR or AMEC funds for environmental restoration.
     Sense of Congress regarding oil spill prevention training for 
         personnel on board Navy vessels (sec. 328)
       The Senate amendment contained a provision (sec. 328) that 
     would express a sense of the Senate that the Secretary of the 
     Navy should ensure that personnel on board Navy vessels in 
     Puget Sound, Washington, receive oil spill prevention 
     training.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.

               Subtitle D--Information Technology Issues

     Additional information technology responsibilities of chief 
         information officers (sec. 331)
       The House bill contained a provision (sec. 311) that would 
     assign certain responsibilities to the chief information 
     officers of the military services and the Department of 
     Defense to ensure that information system budget requests are 
     sufficient and that the systems themselves are interoperable.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would ensure that 
     the Chief Information Officer of the Department of Defense 
     (DOD) is responsible for examining all information systems 
     within the Department to ensure that they are interoperable 
     and are not duplicative of other DOD systems.
     Defense-wide electronic mall system for supply purchases 
         (sec. 332)
       The House bill contained a provision (sec. 312) that would 
     require the Defense Logistics Agency to develop a single, 
     defense wide electronic mall system that would be operational 
     by June 1, 1999.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Joint Electronic Commerce Program Office (JECPO) of the 
     Department of Defense to develop a single, defense-wide 
     electronic mall system, which would provide a single, 
     defense-wide electronic point of entry and a single view, 
     access, and ordering capability for all Department of Defense 
     electronic catalogs. The provision would direct that the 
     Defense Logistics Agency would be responsible for maintaining 
     the system under the direction of the JECPO.
     Year 2000 Compliance of Department of Defense Information 
         Technology and National Security Systems
       The conferees are concerned with the Department of 
     Defense's (DOD) and the intelligence community's information 
     technology and national security systems lack of progress in 
     achieving year 2000 (Y2K) compliance. While debate continues 
     over which steps are necessary to prepare the national 
     security community for 21st century threats, the conferees 
     agree that insufficient attention has been given to preparing 
     this community for the Y2K transition.
       Despite the fact that Y2K problems have been known for 
     years, the Department has not met its projected time lines 
     for renovating all necessary systems. In particular, many 
     mission critical systems are still in the renovation 
     phase, with little assurance from DOD that the required 
     testing and integration efforts will be completed in 
     sufficient time to avoid system-wide problems. The 
     Department's reliance upon other public and private 
     sector, including other nations, information technology 
     systems adds to these concerns.
       It is difficult to know how other nations will react if 
     their own information technology systems are crippled by Y2K 
     deficiencies and they are left without reliable and complete 
     information. In an age where weapons of mass destruction with 
     global reach are controlled through elaborate information 
     networks, it is of critical importance that steps be taken to 
     minimize any confusion or misunderstandings before they 
     develop into crisis situations. The conferees commend the 
     U.S. Strategic Command for its foresight and efforts in 
     strengthening communications with other nations on Y2K, 
     ensuring responsible management of Y2K problems that may 
     arise.
       For these reasons the conferees included three provisions 
     (secs. 333, 334, and 335) to address the Department's and the 
     intelligence communities Y2K issues. As discussed further in 
     this title, these provisions cover such issues as Y2K 
     contingency plans, relations with foreign nations, testing of 
     systems, and adequate funding.
     Priority funding to ensure year 2000 compliance of 
         information technology and national security systems 
         (sec. 333)
       The House bill contained a provision (sec. 314) that would 
     transfer $1.0 billion from other information technology and 
     national security programs to assist in the Department's Y2K 
     compliance efforts. The provision would also require that 75 
     percent of funds for information technology and national 
     security programs be used for these Y2K efforts.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would prohibit 
     the expenditure of funds on the development or modernization 
     of any information technology system unless that system is 
     Y2K compliant, or is required to be performed by law. The 
     amendment would further protect funds for mission critical 
     systems from any unallocated reductions. Finally, the 
     provision would require the Department to develop contingency 
     plans for these systems in the event that they are not Y2K 
     compliant, and provide the Congress with a report on the 
     Department's efforts to ensure its systems are compliant.
     Evaluation of year 2000 compliance as part of training 
         exercises programs (sec. 334)
       The House bill contained a provision (sec. 315) that would 
     require the Secretary of Defense to provide the congressional 
     defense committees with a report that would outline the 
     Department's plans for incorporating Y2K tests as part of its 
     joint exercises.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require 
     that Y2K tests be incorporated in at least 25 exercises, and 
     that each mission critical system expected to be used in any 
     major theater war be tested in at least one of these 
     exercises.
     Continuity of essential operations at risk of failure because 
         of information technology and national security systems 
         that are not year 2000 compliant (sec. 335)
       The Senate amendment contained a provision (sec. 1026) that 
     would require the Secretary of Defense and the Director of 
     Central Intelligence to provide a joint report outlining 
     their planned course of action to ensure a continuity of 
     essential operations in the year 2000.
       The House bill contained no similar provision.
       The House recedes with an amendment that would eliminate 
     the findings.
       The conferees believe the report should include the 
     adoption of a comprehensive contingency plan for the entire 
     national security community, as well as individual 
     contingency plans for the separate elements of the community, 
     including the creation of crisis action teams to respond to 
     emergencies arising from the Y2K problem. Furthermore, the 
     report should outline any cooperative agreements between the 
     United States and foreign countries to ensure that the Y2K 
     problems with the strategic systems of those countries do not 
     pose a threat to the United States.

         Subtitle E--Defense Infrastructure Support Improvement

     Clarification of definition of depot-level maintenance and 
         repair (sec. 341)
       The House bill contained a provision (sec. 335) that would 
     clarify section 2460 (a) of title 16, United States Code, to 
     include the location at which depot level maintenance is 
     performed.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Reporting and analysis requirements before change of 
         commercial and industrial type functions to private 
         sector performance (sec. 342)
       The House bill contained a provision (sec. 331) that would 
     amend and clarify certain requirements and notifications that 
     the Department of Defense must meet before it could study a 
     commercial or industrial type function under section 2461 of 
     title 10, United States Code.
       The Senate amendment contained a provision (sec. 346) that 
     would express the Sense of the Senate that the Secretary of 
     Defense should take action to initiate public-private 
     competitions pursuant to Office of Management and Budget 
     Circular A-76 for functions of the Department of Defense 
     involving not fewer than 180,000 full time employees over the 
     next six years. The provision would further waive any study 
     requirements for functions involving 50 or fewer employees, 
     and would give the Department increased flexibility to choose 
     the public or private option that provides the best overall 
     value for the taxpayer by expressly authorizing the use of 
     ``best value'' techniques for public-private competitions 
     for support services.
       The Senate recedes with an amendment that would not include 
     the requirement contained in the original House provision for 
     the Secretary of Defense to notify the Congress of his 
     determination regarding the cost effectiveness of procuring 
     services or supplies through the private sector, rather than 
     a working capital fund organization, before entering into 
     such a contract. Any analysis performed to determine if 
     supplies or services should be procured from the private 
     sector rather than through a working capital fund 
     organization, should, to the extent practicable, include the 
     impact on the rates of the working capital fund organization. 
     Furthermore, although the provision would allow any employee 
     to raise an objection on the grounds that the required report 
     and certifications were not performed, such an objection 
     would have to be raised within 90 days of the date on which 
     the employee either knew, or should have known, that the 
     function was being studied for potential conversion to the 
     private sector. In addition, the provision would waive the 
     reporting requirement of section 2461 of title 10, United 
     States Code, for functions with 51 or more employees, rather 
     than 21 or more employees as provided in current law.

[[Page H8384]]

     Notification of determinations of military items as being 
         commercial items for purposes of the exception to 
         requirements regarding core logistics capabilities (sec. 
         343)
       The House bill contained a provision (sec. 336) that would 
     define a commercial item for those situations in which the 
     Department is determining if there is a requirement to 
     establish a core depot maintenance capability. This 
     definition would require that before an item can be 
     considered a commercial item, and therefore not require a 
     core depot maintenance capability, at least 90 percent of the 
     total content by component value remains identical to the 
     commercial version. It would further require that purchases 
     and leases to the general public, rather than the government, 
     constitute the majority of transactions of the item before it 
     could be considered commercial.
       The Senate had no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense submit to the Congress a report that 
     outlines any determination regarding core depot maintenance 
     capability and a detailed justification for each item 
     determined for the first time to be a commercial item for the 
     purposes of section 2464 of title 10, United States Code.
     Oversight of development and implementation of automated 
         identification technology (sec. 344)
       The House bill contained a provision (sec. 333) that would 
     require the Smart Card Technology Office within the Defense 
     Human Resources Field Activity of the Department of Defense 
     (DOD) to be responsible for the oversight and coordination of 
     Automated Identification Technology programs within the DOD.
       The Senate amendment contained a provision (sec. 345) that 
     would require the Navy to allocate up to $25.0 million for 
     Smart Cards. The Senate amendment also required the Navy to 
     equip at least one carrier battle group, one air wing, and 
     one amphibious readiness group, in each of the Atlantic and 
     Pacific Fleets with Smart Card technology by March 31, 1999, 
     and prohibited the procurement of the Joint Uniformed 
     Services Identification card for the Department of the Navy 
     after March 31, 1999 unless these units were equipped with 
     Smart Cards. The Senate amendment also required the Secretary 
     of the Navy to submit a plan to equip all operational naval 
     units with Smart Cards.
       The Senate recedes with an amendment that would establish 
     an Automated Identification Technology Office within the 
     Department of Defense with the responsibility for the 
     development and coordination of DOD automated information 
     technology programs including but not limited to Smart Cards. 
     The conferees further agree to delay the date for equipping 
     the Atlantic and Pacific naval units with Smart Cards to June 
     30, 1999 and to require the Secretary of Defense to submit a 
     plan to the congressional defense committees for the use of 
     Smart Card technology by each military department rather than 
     requiring a plan only for the Navy.
     Contractor-operated civil engineering supply stores program 
         (sec. 345)
       The House bill contained a provision (sec. 338) that would 
     prohibit the incorporation of a civil engineering supply 
     function into a broader base operations function for the 
     purpose of competition or contracting until the Secretary of 
     Defense submits a report to the Congress identifying the 
     reasons for the incorporation, including why the combined 
     competition or contract is the best method by which to 
     achieve savings.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Conditions on expansion of functions performed under prime 
         vendor contracts for depot-level maintenance and repair 
         (sec. 346)
       The House bill contained a provision (sec. 334) that would 
     require the Secretary of Defense or the secretary of a 
     military department to provide a report to the Congress each 
     time the secretary intends to enter into a prime vendor 
     contract for a hardware system, including one involving 
     depot-level maintenance or logistics management functions. 
     The report would address the competitive procedures that are 
     proposed to be used to award the prime vendor contract, the 
     effect of the contract on the working capital funds, and the 
     costs and benefits associated with the contract which 
     demonstrate that it will result in savings to the Federal 
     Government over the life of the contract. The provision would 
     prohibit the secretary concerned from entering into such a 
     contract until 60 days after submission of the report.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would make 
     the provision applicable to any prime vendor contract that 
     the Department of Defense proposes to enter into that 
     involves the depot-level maintenance of a piece of 
     military equipment or major weapon systems. The Department 
     would have to wait 30 days after submitting to the 
     Congress a report that outlines the competitive procedures 
     to be used as well as an examination of the costs 
     (including costs derived as a result of changes to the 
     working capital fund organizations) and benefits that will 
     result from the contract, before entering into the 
     contract.
     Best commercial inventory practices for management of 
         secondary supply items (sec. 347)
       The Senate amendment contained a provision (sec. 344) that 
     would direct the secretary of each military department to 
     develop and submit to the Congress a schedule for the 
     implementation of the best inventory management practices 
     found in the commercial sector that are consistent with 
     military requirements. The provision would also require the 
     Comptroller General of the Department of Defense to review 
     the extent to which the service secretaries comply with this 
     requirement, and the extent to which best commercial 
     inventory practices are being implemented by the Defense 
     Logistics Agency.
       The House bill contained a similar provision.
       The House recedes with a technical amendment.
     Personnel reductions in Army Materiel Command (sec. 348)
       The House bill contained a provision (sec. 339) that would 
     require the Comptroller General of the United States to 
     provide to the congressional defense committees a report 
     outlining the readiness impact of proposed personnel 
     reductions within the Army Materiel Command and would delay 
     the implementation of these reductions until the report is 
     provided, or March 31, 1999.
       The Senate amendment contained a similar provision but did 
     not delay the implementation of these reductions.
       The House recedes.
     Inventory management of in-transit items (sec. 349)
       The Senate amendment contained a provision (sec. 349) that 
     would require the Secretary of Defense to submit a plan to 
     the Congress on those actions the Secretary is taking to 
     ensure effective management and oversight of in-transit 
     secondary inventory.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense to submit a plan to the Congress that 
     would address the actions the Department is taking to improve 
     the management and oversight of both secondary inventory, as 
     well as major end-items.
     Review of Defense Automated Printing Service functions (sec. 
         350)
       The Senate amendment contained a provision (sec. 1085) that 
     would require the Secretary of Defense to select an entity 
     outside of the Department of Defense to review the functions 
     of the Defense Automated Printing Service (DAPS).
       The House bill contained no similar provision.
       The House recedes with an amendment that would require an 
     experienced private sector entity be consulted during the 
     review of DAPS functions.
     Development of plan for establishment of core logistic 
         capabilities for maintenance and repair of C-17 aircraft 
         (sec. 351)
       The House bill contained a provision (sec. 337) that 
     included findings regarding the need to perform depot-level 
     maintenance of the C-17 aircraft in government depots, and 
     would require the Secretary of the Air Force to submit to the 
     Congress a plan for the establishment of the core logistics 
     capabilities for the C-17 aircraft, consistent with the 
     requirements of section 2464 of title 10, United States Code. 
     The provision would further prohibit the extension of the 
     interim contract for the C-17 Flexible Sustainment Program 
     until after the end of the 60 day period beginning on the 
     date the plan is submitted to Congress.
       The Senate amendment had no similar provision.
       The Senate recedes with an amendment that would delete the 
     findings.
       The conferees note that in January of 1999, the C-17 will 
     complete its fourth year of its operational capability. At 
     that point, the Department of the Air Force must have the 
     capability to maintain the non-commercial portions of this 
     system in a public depot, should the need arise.

  Subtitle F--Commissaries and Nonappropriated Fund Instrumentalities

     Continuation of management and funding of Defense Commissary 
         Agency through the Office of the Secretary of Defense 
         (sec. 361)
       The House bill contained a provision (sec. 341) that would 
     require that the Defense Commissary Agency (DECA) continue to 
     be managed and funded through the Office of the Secretary of 
     Defense.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to establish a Board of Directors to 
     oversee the operations of DECA.
     Expansion of current eligibility of reserves for commissary 
         benefits (sec. 362)
       The House bill contained a provision (sec. 342) that would 
     increase the number of days that certain ready reserve 
     members and reserve retirees under the age of 60 are eligible 
     to use commissary stores from 12 days each calendar year to 
     24 days each calendar year, and would extend commissary 
     eligibility to members of the national guard who are 
     activated during federally-declared disasters.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Costs payable to the Department of Defense and other federal 
         agencies for services provided to the Defense Commissary 
         Agency (sec. 363)
       The Senate amendment contained a provision (sec. 1049) that 
     would prohibit the Defense Commissary Agency from paying any

[[Page H8385]]

     costs for services provided by a Department of Defense or 
     other federal agency that exceeds the price at which the 
     service could be procured in full and open competition.
       The House bill contained no similar provision.
       The House recedes with an amendment that would clarify that 
     the prohibition only applies to overseas transportation 
     services.
     Collection of dishonored checks presented at commissary 
         stores (sec. 364)
       The Senate amendment contained a provision (sec. 1050) that 
     would permit the Secretary of Defense to impose a charge for 
     the collection of dishonored checks presented at a commissary 
     store in a manner consistent with the practices of commercial 
     grocery stores.
       The House bill contained no similar provision.
       The House recedes.
     Restrictions on patron access to, and purchases in, overseas 
         commissaries and exchange stores (sec. 365)
       The House bill contained a provision (sec. 344) that would 
     authorize the Secretary of Defense to continue to restrict 
     the sale of certain items in overseas exchanges and 
     commissaries, but would require that the Secretary ensure 
     that such restrictions are consistent with the primary 
     purpose of providing U.S. made goods to authorized patrons.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Repeal of requirement for Air Force to sell tobacco products 
         to enlisted personnel (sec. 366)
       The House bill contained a provision (sec. 343) that would 
     repeal section 9623 of title 10, United States Code. This 
     section requires the Air Force to sell not more than 16 
     ounces of tobacco a month to any enlisted member who requests 
     it.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Prohibition on consolidation or other organizational changes 
         of Department of Defense retail system (sec. 367)
       The House bill contained a provision (sec. 346) that would 
     prohibit the Department of Defense from consolidating 
     military exchange and commissary operations, and from 
     conducting further study of consolidation, unless 
     specifically authorized by law.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would eliminate 
     the prohibition against conducting further studies.
       The conferees note that the Department of Defense recently 
     contracted for a due diligence study regarding exchange 
     integration. The conferees intend for that study to continue, 
     but expect that implementation of any study recommendations 
     would await congressional approval. The conferees do not 
     intend that the prohibition against consolidation or merger 
     of retail systems be an impediment to implementing agreements 
     and operations among the exchange systems that are determined 
     to be mutually beneficial and increase efficiency of the 
     exchange systems.
     Defense Commissary Agency telecommunications (sec. 368)
       The Senate amendment contained a provision (sec. 1051) that 
     would require the Secretary of Defense to provide the Defense 
     Commissary Agency (DECA) authority to obtain 
     telecommunications and related services under the Federal 
     Telecommunications System (FTS) 2000/2001 contract, and to 
     report to the Committee on Armed Services of the Senate and 
     the Committee on National Security of the House of 
     Representatives when DECA telecommunications have been 
     initiated under the FTS 2000/2001 contract.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Survey of commissary store patrons regarding satisfaction 
         with commissary store merchandise (sec. 369)
       The House bill contained a provision (sec. 348) that would 
     require the Secretary of Defense to survey eligible 
     commissary store patrons to determine their interest in 
     commissary stores selling beer and wine. The provision would 
     also authorize the Secretary to conduct a demonstration 
     project at seven military installations in the United States, 
     after consideration of the survey results.
       The Senate amendment contained a provision (sec. 351) that 
     would prohibit the Secretary of Defense from conducting a 
     survey of eligible commissary store patrons to determine 
     their interest in commissary stores selling beer and wine and 
     from conducting a demonstration project in which beer and 
     wine would be sold in commissaries.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to conduct survey of eligible patrons of 
     the commissary system to determine patron satisfaction with 
     commissary store products.

                       Subtitle G--Other Matters

     Eligibility requirements for attendance at Department of 
         Defense domestic dependent elementary and secondary 
         schools (sec. 371)
       The House bill contained a provision (sec. 361) that would 
     permit dependents residing in a territory, commonwealth, or 
     possession of the United States to participate in an 
     educational program when the parent is a service member 
     assigned to a remote or unaccompanied location. The provision 
     would also clarify the authority of the Secretary of Defense 
     to make exceptions for enrollment in dependent schools for 
     dependents of civilian employees in Puerto Rico and Guam, 
     where such employees reside off the installation, and would 
     provide that the Department be reimbursed for the cost of 
     such education.
       The Senate amendment contained a similar provision (sec. 
     1055).
       The Senate recedes with an amendment that would preserve 
     the portion of the Senate provision with regard to permitting 
     dependents of United States Customs Service agents in Puerto 
     Rico to attend Department of Defense schools during the term 
     of the agent's assignment in Puerto Rico.
     Assistance to local educational agencies that benefit 
         dependents of members of the Armed Forces and Department 
         of Defense civilian employees (sec. 372)
       The House bill contained a provision (sec. 364) that would 
     authorize $35.0 million for educational assistance to local 
     education agencies where the standard for the minimum level 
     of education within the state could not be maintained because 
     of the large number of military-connected students or the 
     effects of base realignments and closures.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Department of Defense readiness reporting system (sec. 373)
       The House bill contained a provision (sec. 367) that would 
     require the Secretary of Defense to establish a comprehensive 
     reporting system to measure the capability of the armed 
     forces to carry out their responsibilities under the National 
     Security Strategy, defense planning guidance, and the 
     National Military Strategy. The information collected by this 
     system would be presented each month to the Chairman of the 
     Joint Chiefs of Staff, and to the congressional defense 
     committees. This would replace the quarterly readiness 
     reports that are currently provided by the Department of 
     Defense to the Congress.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would delay the 
     implementation date of this provision, clarify that the 
     Secretary of Defense is not required to submit the complete 
     documentation of each joint monthly readiness review to the 
     Congress, and make other technical changes.
       The conferees recognize that stable requirements for 
     measuring and reporting readiness are essential in order for 
     the Department of Defense to develop an effective readiness 
     reporting system that is capable of making valid comparisons 
     over time.
       The conferees urge the Secretary to retain in the new 
     reports required by this section those elements of the 
     expanded Quarterly Readiness Report to the Congress that are 
     believed to be effective in informing the Congress on the 
     readiness of our armed forces.
     Specific emphasis of program to investigate fraud, waste, and 
         abuse within Department of Defense (sec. 374)
       The House bill contained a provision (sec. 362) that would 
     expand the formal waste, fraud, and abuse program within the 
     Department of Defense to include any overpayment to a vendor.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Condition for providing financial assistance for support of 
         additional duties assigned to the Army National Guard 
         (sec. 375)
       The Senate amendment contained a provision (sec. 347) that 
     would require the Secretary of the Army to conduct a 
     competition with the private sector prior to expanding the 
     amount of support which the Army National Guard performs 
     pursuant to section 113(b) of title 32, United States Code, 
     if that support is not yet performed by the Guard, or that 
     support is not currently under official consideration by the 
     Secretary of the Army for award to the National Guard.
       The House bill contained no similar provision.
       The House recedes with an amendment that would also allow 
     qualified public sector sources, including depots, to 
     participate in any competition for activities that the 
     National Guard is seeking to perform under section 113(b).
     Demonstration program to improve quality of personal property 
         shipments of members (sec. 376)
       The House bill contained a series of provisions (secs. 381-
     387) that would require the Department of Defense to replace 
     its existing pilot program to re-engineer the movement of 
     household goods with a program known as the Commercial-Like 
     Activities for Superior Quality Demonstration (CLASS) 
     Program, that would make certain modifications to the 
     existing regulations governing the movement of these goods.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to implement and complete within one 
     year the current pilot program designed in consultation with 
     industry representatives. The Secretary would also be 
     required to submit to the Congress a report, not later than 
     August 31, 1999, outlining the extent to which the current 
     program meets its goals and to

[[Page H8386]]

     report the extent to which the industry alternative program 
     would meet these goals.
     Pilot program for acceptance and use of landing fees charged 
         for use of domestic military airfields by civil aircraft 
         (sec. 377)
       The Senate amendment contained a provision (sec. 313) that 
     would authorize the secretary of the military department to 
     accept payments for the use of domestic military and shared 
     use airfields by civil aircraft and to use those payments for 
     the operation and maintenance of the airfield.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require that 
     the Secretary of the Department of Defense establish uniform 
     procedures for the collection and obligation of any receipts 
     generated as a result of such fees.
     Strategic plan for expansion of distance learning initiatives 
         (sec. 378)
       The House bill contained a provision (sec. 365) that would 
     require the Secretary of Defense to develop a plan to 
     establish a framework for developing and applying distance 
     learning technologies to training courses where it makes 
     sense and is cost effective.
       The Senate amendment contained a provision (sec. 1029) that 
     would require the Secretary of Defense to develop and provide 
     to the Congress a five-year plan for guiding and expanding 
     distance learning initiatives in the Department of Defense.
       The House recedes.
     Public availability of operating agreements between military 
         installations and financial institutions (sec. 379)
       The House bill contained a provision (sec. 366) that would 
     subject operating agreements that provide financial services, 
     including electronic banking, on military installations in 
     the United States, to the same requirements of the Freedom of 
     Information Act (FOIA) as all other federal contracts.
       The Senate amendment contained no similar provision.
       The Senate recedes.

                   Legislative Provisions Not Adopted

     Funding for information technology and national security 
         programs
       The House bill contained a provision (sec. 313) that would 
     require the expenditure of certain funds for information 
     technology programs of the military services.
       The Senate amendment contained no similar provision.
       The House recedes.
     Requirement to maintain government owned and operated core 
         logistics capability
       The House bill contained a provision (sec. 332) that would 
     amend section 2464 of title 10, United States Code, by 
     requiring that core depot maintenance workloads be performed 
     by public depots acting as prime contractors rather than 
     subcontractors.
       The Senate amendment contained no similar provision.
       The House recedes.
     Extension of demonstration project for uniform funding of 
         morale, welfare, and recreation activities
       The House bill contained a provision (sec. 345) that would 
     extend for one year the authority of the Secretary of Defense 
     to conduct a demonstration project for the uniform funding of 
     morale, welfare, and recreation activities at certain 
     military installations.
       The Senate amendment contained no similar provision.
       The House recedes.
     Authorized use of appropriated funds for relocation of Navy 
         Exchange Service Command
       The House bill contained a provision (sec. 347) that would 
     provide that the Navy Exchange Service Command (NEXCOM) shall 
     not be required to reimburse the United States for 
     appropriated funds allotted to NEXCOM during fiscal years 
     1994, 1995, and 1996 for costs incurred in connection with 
     the relocation of NEXCOM headquarters to Virginia Beach, 
     Virginia, and for the lease of headquarters space.
       The Senate amendment contained no similar provision.
       The House recedes.
     Fees for providing historical information to the public
       The Senate amendment contained a provision (sec. 1056) that 
     would allow the historical institutes of the military 
     services to provide historical information to members of the 
     public for a fee that is equivalent to the cost of 
     researching and transmitting the information.
       The House bill contained no similar provision.
       The Senate recedes.

              Title IV--Military Personnel Authorizations

                     Legislative Provisions Adopted

                       Subtitle A--Active Forces

     End strengths for active forces (sec. 401)
       The House bill contained a provision (sec. 401) that would 
     authorize the following end strengths for active duty 
     personnel of the armed forces as of September 30, 1999:

------------------------------------------------------------------------
                                             Fiscal year--
                             -------------------------------------------
                                   1998          1999          1999
                              authorization    request    recommendation
------------------------------------------------------------------------
Army........................       495,000       480,000        484,800
Navy........................       390,802       372,696        376,423
Marine Corps................       174,000       172,200        173,922
Air Force...................       371,577       370,882        371,577
                             -------------------------------------------
      Total.................     1,431,379     1,395,778      1,406,722
------------------------------------------------------------------------

       The Senate amendment contained a provision (sec. 401) that 
     would authorize active duty end strengths for fiscal year 
     1999, as shown below:

------------------------------------------------------------------------
                                             Fiscal year--
                             -------------------------------------------
                                   1998          1999          1999
                              authorization    request    recommendation
------------------------------------------------------------------------
Army........................       495,000       480,000        480,000
Navy........................       390,802       372,696        372,696
Marine Corps................       174,000       172,200        172,200
Air Force...................       371,577       370,882        370,882
                             -------------------------------------------
      Total.................     1,431,379     1,395,778      1,395,778
------------------------------------------------------------------------

       The House recedes.
     Revision in permanent end strength levels (sec. 402)
       The House bill contained a provision (sec. 402) that would 
     amend section 691 of title 10, United States Code, by 
     establishing new end strength floors for the active forces at 
     the levels recommended in section 401. This section would 
     also permit active end strengths to vary up to one percent 
     below the established floor.
       The Senate amendment contained a provision (sec. 404) that 
     would repeal section 691 of title 10, United States Code, 
     which established end strength floors for the military 
     services.
       The Senate recedes with an amendment that would establish 
     end strength floors at the levels in the budget request and 
     would permit active end strengths to vary up to 0.5 percent 
     flexibility below the established floor.
     Date for submission of annual manpower requirements report 
         (sec. 403)
       The House bill contained a provision (sec. 403) that would 
     establish a new suspense date for the submission of an Annual 
     Manpower Requirements Report, requiring it to be transmitted 
     to the Congress not later than 30 days after the budget for 
     the next fiscal year is submitted to Congress.
       The Senate amendment contained a provision (sec. 521) that 
     would change the date the Secretary of Defense must submit 
     the Annual Manpower Requirements Report from February 15 of 
     each year to a date not later than 45 days after the 
     President submits the budget to the Congress.
       The House recedes with a clarifying amendment.
     Additional exemption from percentage limitation on number of 
         lieutenant generals and vice admirals (sec. 404)
       The Senate amendment contained a provision (sec. 402(a)) 
     that would increase from six to seven the number of 
     lieutenant generals and vice admirals serving on the Joint 
     Staff who are exempt from the limit of lieutenant generals 
     and vice admirals on active duty.
       The House bill contained no similar amendment.
       The House recedes.
     Extension of authority for Chairman of the Joint Chiefs of 
         Staff to designate up to 12 general and flag officer 
         positions to be excluded from general and flag officer 
         grade limitations (sec. 405)
       The House bill contained a provision (sec. 404) that would 
     extend to October 1, 2001, from October 1, 1998, the 
     authority for the Chairman of the Joint Chiefs of Staff to 
     exclude up to 12 general and flag officer positions from 
     existing grade limitations.
       The Senate amendment contained a provision (sec. 402(b)) 
     that would extend until October 1, 2002, the temporary 
     authority to exclude up to 12 joint duty officers from the 
     limitation on authorized general and flag officer strength.
       The House recedes.
     Exception for Chief, National Guard Bureau, from limitation 
         on number of officers above major general (sec. 406)
       The conference report includes a provision that would 
     exempt the position of Chief of the National Guard Bureau 
     from the limitation on the number of officers above major 
     general serving on active duty in that officer's armed force.
     Limitation on daily average of personnel on active duty in 
         grades E-8 and E-9 (sec. 407)
       The Senate amendment contained a provision (sec. 403) that 
     would change the method for computing the time limitation on 
     active duty enlisted personnel serving in the grades of E-8 
     and E-9 to a fiscal year basis from a calendar year basis. 
     The recommended provision would also correct a technical 
     error in the existing statute.
       The House bill contained no similar provision.
       The House recedes with an amendment that would make the 
     provision effective October 1, 1999.

                       Subtitle B--Reserve Forces

     End strengths for selected reserve (sec. 411)
       The House bill contained a provision (sec. 411) that would 
     authorize the following end strengths for the selected 
     reserve personnel, including the end strength for reserves on 
     active duty in support of the reserves, as of September 30, 
     1999:

------------------------------------------------------------------------
                                             Fiscal year--
                             -------------------------------------------
                                   1998          1998          1998
                              authorization    request    recommendation
------------------------------------------------------------------------
The Army National Guard of         361,516       357,000        357,000
 the United States..........
The Army Reserve............       208,000       208,000        209,000
The Naval Reserve...........        94,294        90,843         90,843
The Marine Corps Reserve....        42,000        40,018         40,018

[[Page H8387]]

 
The Air National Guard of          108,002       106,991        106,991
 the United States..........
The Air Force Reserve.......        73,447        74,242         74,242
The Coast Guard Reserve.....         8,000         8,000          8,000
                             -------------------------------------------
      Total.................       895,259       885,094        886,094
------------------------------------------------------------------------

       The increases in selected reserve end strength shown above 
     include the additions to the end strength for reserves on 
     active duty in support of the reserves described in section 
     412 of the House bill.
       The Senate amendment contained a provision (sec. 411) that 
     would authorize Selected Reserve end strengths for fiscal 
     year 1999 as shown below:

------------------------------------------------------------------------
                                             Fiscal year--
                             -------------------------------------------
                                   1998          1998          1998
                              authorization    request    recommendation
------------------------------------------------------------------------
The Army National Guard of         361,516       357,000        357,000
 the United States..........
The Army Reserve............       208,000       208,000        208,000
The Naval Reserve...........        94,294        90,843         90,843
The Marine Corps Reserve....        42,000        40,018         40,018
The Air National Guard of          108,002       106,991        106,991
 the United States..........
The Air Force Reserve.......        73,447        74,242         74,242
The Coast Guard Reserve.....         8,000         8,000          8,000
                             -------------------------------------------
      Total.................       895,259       885,094        885,094
------------------------------------------------------------------------

       The House recedes with an amendment that would authorize 
     the following end strengths for the selected reserve 
     personnel, including the end strength for reserves on active 
     duty in support of the reserves, as of September 30, 1999:

------------------------------------------------------------------------
                                              Fiscal year--
                               -----------------------------------------
                                     1998         1999         1999
                                authorization   request   recommendation
------------------------------------------------------------------------
The Army National Guard of the      361,516      357,000       357,223
 United States................
The Army Reserve..............      208,000      208,000       208,003
The Naval Reserve.............       94,294       90,843        90,843
The Marine Corps Reserve......       42,000       40,018        40,018
The Air National Guard of the       108,002      106,991       106,992
 United States................
The Air Force Reserve.........       73,447       74,242        74,243
The Coast Guard Reserve.......        8,000        8,000         8,000
                               -----------------------------------------
      Total...................      895,259      885,094       885,322
------------------------------------------------------------------------

       The amendment would increase the end strengths for Selected 
     Reserve personnel to include the authorization to use 
     reserves for emergencies involving weapons of mass 
     destruction.
     End strengths for reserves on active duty in support of the 
         reserves (sec. 412)
       The House bill contained a provision (sec. 412) that would 
     authorize the following end strengths for reserves on active 
     duty in support of the reserves, as of September 30, 1999:

------------------------------------------------------------------------
                                              Fiscal year--
                               -----------------------------------------
                                     1998         1999         1999
                                authorization   request   recommendation
------------------------------------------------------------------------
The Army National Guard of the       22,310       21,763        21,763
 United States................
The Army Reserve..............       11,500       11,804        12,804
The Naval Reserve.............       16,136       15,590        15,590
The Marine Corps Reserve......        2,559        2,362         2,362
The Air National Guard of the        10,616       10,930        10,930
 United States................
The Air Force Reserve.........          748          991           991
                               -----------------------------------------
      Total...................       62,869       63,440        64,440
------------------------------------------------------------------------

       The provision would increase by 1,000 the number of Active 
     Guard and Reserve authorizations for the United States Army 
     Reserve above the budget request.
       The Senate amendment contained a provision (sec. 412) that 
     would authorize full-time support end strengths for fiscal 
     year 1999, as shown below:

------------------------------------------------------------------------
                                              Fiscal year--
                               -----------------------------------------
                                     1998         1999         1999
                                authorization   request   recommendation
------------------------------------------------------------------------
The Army National Guard of the       22,310       21,763        21,763
 United States................
The Army Reserve..............       11,500       11,804        11,804
The Naval Reserve.............       16,136       15,590        15,590
The Marine Corps Reserve......        2,559        2,362         2,362
The Air National Guard of the        10,671       10,930        10,930
 United States................
The Air Force Reserve.........          867          991           991
------------------------------------------------------------------------

       The Senate recedes with an amendment that would authorize 
     the following end strengths for reserves on active duty in 
     support of the reserves, as of September 30, 1999:

------------------------------------------------------------------------
                                              Fiscal year--
                               -----------------------------------------
                                     1998         1999         1999
                                authorization   request   recommendation
------------------------------------------------------------------------
The Army National Guard of the       22,310       21,763        21,986
 United States................
The Army Reserve..............       11,500       11,804        12,807
The Naval Reserve.............       16,136       15,590        15,590
The Marine Corps Reserve......        2,559        2,362         2,362
The Air National Guard of the        10,616       10,930        10,931
 United States................
The Air Force Reserve.........          748          991           992
                               -----------------------------------------
      Total...................       62,869       63,440        64,668
------------------------------------------------------------------------

       The amendment would increase the end strengths for reserves 
     on active duty in support of the reserves to include the 
     authorization to use the reserves for emergencies involving 
     weapons of mass destruction.
     End strengths for military technicians (dual status) (sec. 
         413)
       The House bill contained a provision (sec. 413) that would 
     authorize the following end strengths for military 
     technicians (dual status) as of September 30, 1999:

------------------------------------------------------------------------
                                              Fiscal year--
                               -----------------------------------------
                                     1998         1999         1999
                                authorization   request   recommendation
------------------------------------------------------------------------
The Army National Guard of the       23,125       22,179        23,125
 United States................
The Army Reserve..............        5,503        5,205         5,395
The Air National Guard of the        22,853       22,408        22,408
 United States................
The Air Force Reserve.........        9,802        9,761         9,761
                               -----------------------------------------
      Total...................       61,007       59,553        60,689
------------------------------------------------------------------------

       The Senate amendment contained a provision (sec. 413) that 
     would authorize military technician end strengths for fiscal 
     year 1999, as shown below:

------------------------------------------------------------------------
                                              Fiscal year--
                               -----------------------------------------
                                     1998         1999         1999
                                authorization   request   recommendation
------------------------------------------------------------------------
The Army National Guard of the       23,125       22,179        22,179
 United States................
The Army Reserve..............        5,503        5,205         5,205
The Air National Guard of the        22,853       22,408        22,408
 United States................
The Air Force Reserve.........        9,802        9,761         9,761
------------------------------------------------------------------------

       The Senate recedes.
     Increase in number of members in certain grades authorized to 
         serve on active duty in support of the reserves (sec. 
         414)
       The House bill contained a provision (sec. 414) that would 
     authorize increases in the grades of reserve members 
     authorized to serve on active duty or on full-time national 
     guard duty for the administration of the reserves or the 
     national guard. The provision would authorize 133 additional 
     majors, 22 additional enlisted personnel in the grade of E-9, 
     and 89 additional enlisted personnel in the grade of E-8 in 
     the Air Force. The provision would also authorize 26 
     additional colonels and 20 additional enlisted personnel in 
     the grade of E-9 in the Army.
       The Senate amendment contained a provision (sec. 415) that 
     would increase the number of officers and senior enlisted 
     personnel on active duty in certain grades in the reserve 
     components of the Army and the Air Force in support of the 
     reserves. The recommended provision would increase the 
     authorized number of Army reserve component colonels from 412 
     to 438 and enlisted members in the grade of E-9 from 603 to 
     623. The provision would increase the authorized number of 
     Air Force reserve component majors from 643 to 791; 
     lieutenant colonels from 672 to 713; colonels from 274 to 
     297; enlisted members in the grade of E-8 from 890 to 997; 
     and enlisted members in the grade of E-9 from 366 to 395.
       The House recedes with a clarifying amendment.
     Consolidation of strength authorizations for active status 
         Naval Reserve flag officers of the Navy Medical 
         Department staff corps (sec. 415)
       The Senate amendment contained a provision (sec. 416) that 
     would consolidate flag officer authorizations for the Navy 
     Reserve Medical Department Staff Corps, identify the 
     components of the Medical Department Staff Corps, and 
     allocate one rear admiral (lower half) authorization to each 
     component of the Medical Department Staff Corps.
       The House bill contained no similar provision
       The House recedes.

              Subtitle C--Authorization of Appropriations

     Authorization of appropriations for military personnel (sec. 
         421)
       The House bill contained a provision (sec. 421) that would 
     authorize $70.7 billion to be appropriated for military 
     personnel accounts in fiscal year 1999.
       The Senate amendment contained similar provisions (sec. 
     421) that would authorize $70.4 billion to be appropriated 
     for military personnel for fiscal year 1999.
       The House recedes with an amendment that would authorize 
     $70.6 billion for military personnel for fiscal year 1999.
       The conferees provide the following itemization of the 
     increases and decreases from the President's budget request 
     related to military personnel accounts and personnel-related 
     Operation and Maintenance accounts.


            Fiscal Year 1999 Military Personnel Budget Items

                        [In millions of dollars]

Increases
  3.6 percent basic pay increase..................................186.0
  Active Army End Strength.........................................25.0
  USNR Contributory Support to CINCs (ADT)..........................5.0
  USNR Active Duty Special Work.....................................5.0
  USMCR Increased Use...............................................3.4
  Increase USAR AGRs...............................................15.0
  Army National Guard Schools & Special Training...................20.0
  Army Enlistment Bonus............................................10.0
  Navy Enlistment Bonus.............................................9.4
  Navy College Fund................................................13.9
  USMC Enlistment Bonus.............................................3.0
  USMC College Fund.................................................5.9
    Total adds....................................................301.6
Reductions:
  Obligations for Advanced Pay....................................301.0
    Army..........................................................161.0
    Navy...........................................................69.0
    Air Force......................................................53.0
    USMC...........................................................18.0
    FY 99 End Strength Underexecution.............................151.8
    Army............................................................3.0
    Navy...........................................................11.8
    USMC............................................................9.3
    USAF...........................................................83.3
    Army Guard.....................................................28.0

[[Page H8388]]

    Army Reserve....................................................5.4
    Navy Reserve....................................................5.0
    Marine Corps Reserve............................................N/A
    Air Guard.......................................................N/A
    Air Force Reserve...............................................6.0
  Foreign Currency Fluctuation.....................................29.6
    Army............................................................5.3
    Navy...........................................................12.0
    USMC............................................................4.2
    Air Force.......................................................8.1
Unemployment Compensation:
  Air Force.........................................................4.0
                                                               ________
                                                               
    Total Reductions..............................................486.4

       The conferees are concerned about the increasing challenges 
     to all services in attracting quality personnel. The 
     conferees are especially concerned about the Navy's projected 
     inability to realize their established recruiting goals 
     during fiscal year 1998. In addition, the conferees are 
     concerned that Navy recruiting may be underfunded for fiscal 
     year 1999. The conferees have increased the recruiting 
     accounts to assist services' recruiting efforts. The 
     conferees urge the Navy to commit additional resources to the 
     recruiting function so as to avoid a recurrence of the 
     projected recruiting failures. The conferees adjusted the 
     personnel related Operation and Maintenance accounts, as 
     follows:


    Fiscal Year 1999 MILPERS-related Operation & Maintance Accounts

                        [In millions of dollars]

Increases:
  Navy Recruiting Advertising.....................................$17.5
  USMC Recruiting Advertising......................................12.0
  Air National Guard Recruiting Advertising.........................3.0
  USAFR Recruiting Advertising......................................3.0
  Navy Recruiter Support............................................3.3
  National Guard Youth Challenge Program...........................21.5
  STARBASE..........................................................5.0
  USMCR Increased Use...............................................1.2
  USMCR Active Duty Special Work....................................2.1
  Army National Guard Military Technicians.........................27.0
  Total MILPERS-related O&M Increases..............................95.6
Reductions:
  Innovative Readiness Training....................................10.0
  Total MILPERS-related O&M Reductions.............................10.0

                   Legislative Provisions Not Adopted

     Exclusion of additional reserve component general and flag 
         officers from limitation on number of general and flag 
         officers who may serve on active duty
       The Senate amendment contained a provision (sec. 414) that 
     would permit a number of reserve component general and flag 
     officers ordered to active duty for more than 179 days to be 
     excluded from the limitation on the number of general and 
     flag officers on active duty. The number of reserve component 
     general and flag officers ordered to active duty under this 
     authority would not exceed three percent of the total number 
     of authorized active duty general and flag officers.
       The House bill contained no similar provision.
       The Senate recedes.

                   Title V--Military Personnel Policy

                     Legislative Provisions Adopted

                  Subtitle A--Officer Personnel Policy

     Codification of eligibility of retired officers and former 
         officers for consideration by special selection boards 
         (sec. 501)
       The House bill contained a provision (sec. 501) that would 
     clarify that a retired or former officer may be considered 
     for promotion by a special selection board without being 
     returned to active duty.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Involuntary separation pay denied for officer discharged for 
         failure of selection for promotion requested by the 
         officer (sec. 502)
       The House bill contained a provision (sec. 502) that would 
     clarify that the Congress intended that written 
     communications from officers to promotion boards authorized 
     in section 614 of title 10, United States Code, be limited to 
     matters that enhance the officer's case for promotion.
       The Senate amendment contained a provision (sec. 503) that 
     would modify the conditions under which separation pay is 
     paid. Under the provision, officers who submit a request to a 
     promotion board not to be selected for promotion and are 
     subsequently not selected for promotion would not be eligible 
     for separation pay if the reason for their separation is 
     failure to be promoted to the next higher grade. The 
     provision would require the report of a selection board that 
     received communications from an officer who requested not to 
     be selected to include that officer's name.
       The House recedes with a clarifying amendment.
     Streamlined selective retention process for regular officers 
         (sec. 503)
       The House bill contained a provision (sec. 503) that would 
     eliminate the requirement to convene boards of review for 
     regular officers who have been recommended for administrative 
     separation by boards of inquiry and would eliminate the 30-
     day board of inquiry notification process.
       The Senate amendment contained a provision (sec. 501) that 
     would eliminate the requirement to convene boards of review 
     for officers who have been recommended for administrative 
     separation by a board of inquiry.
       The House recedes.
     Permanent applicability of limitations on years of active 
         naval service of Navy limited duty officers in grades of 
         commander and captain (sec. 504)
       The Senate amendment contained a provision (sec. 502) that 
     would make permanent the temporary mandatory retirement 
     points for Navy Limited Duty Officers. The recommended change 
     would not affect Marine Corps Limited Duty Officers of the 
     same grades.
       The House bill contained no similar provision.
       The House recedes.
     Tenure of Chief of the Air Force Nurse Corps (sec. 505)
       The House bill contained a provision (sec. 505) that would 
     clarify that the Secretary of the Air Force determines the 
     length of the tour served by the Chief of the Air Force Nurse 
     Corps.
       The Senate amendment contained a provision (sec. 504) that 
     would extend the term of office for the chief of the Air 
     Force Nurse Corps from three years to four years.
       The Senate recedes.
     Grade of Air Force Assistant Surgeon General for Dental 
         Services (sec. 506)
       The conference report includes a provision that would 
     require the Assistant Surgeon General for Dental Services of 
     the Air Force to be an officer in the grade of brigadier 
     general.
     Review regarding allocation of Naval Reserve Officers' 
         Training Corps scholarships among participating colleges 
         and universities (sec. 507)
       The Senate amendment contained a provision (sec. 505) that 
     would modify the method by which the Navy allocates Naval 
     Reserve Officer Training Corps (NROTC) scholarships within a 
     state.
       The House bill contained no similar provision.
       The House recedes with an amendment that would urge the 
     Secretary of the Navy to review the method by which the Navy 
     allocates NROTC scholarships.

                 Subtitle B--Reserve Component Matters

     Use of reserves for emergencies involving weapons of mass 
         destruction (sec. 511)
       The Senate amendment contained a provision (sec. 515) that 
     would authorize the President to call-up reserve forces in 
     response to domestic emergencies involving a use, or 
     threatened use, of a weapon of mass destruction. In addition, 
     the provision would permit reserve full-time support 
     personnel to perform duties in support of emergency 
     preparedness programs to prepare for, or to respond to, an 
     emergency involving the use of a weapon of mass destruction.
       The House bill contained no similar provision.
       The House recedes with an amendment that would limit the 
     number of reserves who may serve on active duty in support of 
     the defense against the domestic use of weapons of mass 
     destruction, and would require the Secretary of Defense to 
     certify that members of a rapid assessment element team have 
     been trained and that the teams possess the requisite 
     equipment to meet all mission requirements.
     Service required for retirement of National Guard officer in 
         higher grade (sec. 512)
       The Senate amendment contained a provision (sec. 511) that 
     would extend the period for which a National Guard officer 
     could receive credit towards the time-in-grade required for 
     retirement.
       The House bill contained no similar provision.
       The House recedes.
     Reduced time-in-grade requirement for reserve general and 
         flag officers involuntarily transferred from active 
         status (sec. 513)
       The Senate amendment contained a provision (sec. 512) that 
     would authorize the secretary of a military department to 
     retire, at the grade held on active reserve status, a reserve 
     component general or flag officer who is involuntarily 
     transferred from active reserve status.
       The House bill contained no similar provision.
       The House recedes.
     Active status service requirement for promotion consideration 
         for Army and Air Force Reserve component brigadier 
         generals (sec. 514)
       The House bill contained a provision (sec. 512) that would 
     require the Secretary of the Army and the Secretary of the 
     Air Force to consider reserve brigadier generals serving in 
     an inactive status for promotion if the officers had been in 
     an inactive status for less than one year as of the date of 
     the convening of the promotion board, and continuously served 
     for at least one year on the reserve active status list or 
     the active duty list immediately before transfer to inactive 
     status.
       The Senate amendment contained a provision (sec. 513) that 
     would authorize the Secretary of the Army or the Secretary of 
     the Air Force to waive the eligibility requirements to permit 
     a reserve component brigadier general of the Army or Air 
     Force who is on the reserve inactive status list to be 
     considered for promotion to major general. To be eligible for 
     the waiver, the reserve brigadier general must have served at 
     least one year on the reserve active status list or active 
     duty list immediately preceding transfer to the inactive 
     status list, and the transfer to the inactive status list 
     occurred within the twelve-month period preceding the date 
     the promotion board convenes.

[[Page H8389]]

       The Senate recedes.
     Composition of selective early retirement boards for rear 
         admirals of the Naval Reserve and major generals of the 
         Marine Corps Reserve (sec. 515)
       The House bill contained a provision (sec. 511) that would 
     authorize the Secretary of the Navy to convene selective 
     early retirement boards for rear admirals in the Navy Reserve 
     and major generals in the Marine Corps Reserve without 
     complying with the requirement specified in section 14102 of 
     title 10, United States Code, that one half of the selection 
     board members be reserve officers and that all the board 
     members hold higher permanent grades than the officers being 
     considered by the board.
       The Senate amendment contained a provision (sec. 514) that 
     would change the minimum grade requirement for officers 
     participating as members of a board convened to consider rear 
     admirals in the Naval Reserve or major generals in the Marine 
     Corps Reserve for early retirement, and would require any 
     active duty officer participating in a selective early 
     retirement board considering Naval Reserve rear admirals or 
     Marine Corps Reserve major generals be one grade higher than 
     the officers being considered, and would require that at 
     least one member of the board be a reserve officer in the 
     same grade as the officers being considered.
       The House recedes with a clarifying amendment.
     Authority for temporary waiver for certain Army Reserve 
         officers of baccalaureate degree requirement for 
         promotion of reserve officers (sec. 516)
       The House bill contained a provision (sec. 513) that would 
     authorize an exception to the requirement for reserve 
     officers in the Army commissioned through the Army Officer 
     Candidate School to possess a baccalaureate degree before 
     promotion to the grade of captain. The exception would expire 
     on October 1, 2000.
       The Senate amendment contained no similar provisions.
       The Senate recedes with an amendment that would authorize 
     the Secretary of the Army to waive, on a case-by-case basis, 
     for two years, the requirement for reserve officers in the 
     Army commissioned through the Army Officer Candidate School 
     to possess a baccalaureate degree before being promotion to 
     the grade of captain. The authority for the Secretary of the 
     Army to grant a waiver would expire on September 30, 2000.
       The conferees expect that the Secretary of the Army will 
     only grant waivers to those individuals who demonstrate 
     progress toward achieving the goal of earning a baccalaureate 
     degree.
     Furnishing of burial flags for deceased members and former 
         members of the Selected Reserve (sec. 517)
       The Senate amendment contained a provision (sec. 1082) that 
     would direct the Secretary of Veterans Affairs to provide a 
     U.S. flag to drape the casket of deceased members or former 
     members of the Selected Reserve.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.

              Subtitle C--Military Education and Training

     Separate housing for male and female recruits during recruit 
         basic training (sec. 521)
       The House bill contained a provision (sec. 521) that would 
     amend title 10, United States Code, to require each of the 
     military departments to assign male and female recruits to 
     same-gender units at the platoon, flight, and division 
     levels, and to house male and female recruits in separate 
     barracks or troop housing facilities. It would provide each 
     of the service secretaries the authority to waive the 
     separate barracks requirement initially at specific 
     installations due to a lack of adequate facilities at the 
     installation. However, it would require that no such waiver 
     be in effect after October 1, 2001. This section also would 
     require that if a waiver is granted at a particular 
     installation, the secretary of a military department shall 
     require that male and female recruits be housed on separate 
     floors in military barracks or troop housing facilities at 
     that installation. During the interim period, housing 
     recruits on separate floors is defined to include billeting 
     male and female recruits separately and securely either on 
     separate floors, in separate bays, or on same floors with 
     a fire-safe wall separating the recruits. Further, the 
     separate billeting spaces should include independent 
     sleeping areas, latrines and separate, lockable entrances. 
     To facilitate the Army's ability to make barracks 
     modifications needed for housing by separate floors, the 
     committee recommends an increase of $8.0 million in that 
     department's operations and maintenance account.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     secretaries of the military departments to provide separate, 
     safe, and secure housing for male and female recruits with 
     the sleeping areas separated by permanent walls and access 
     limited to separate entrances by April 15, 1999. Should an 
     installation not be able to meet this requirement, males and 
     females would be required to be housed in separate 
     facilities. The amendment would require that all future 
     construction of barracks at basic training sites accommodate 
     separate, safe, and secure housing for both male female 
     recruits. The amendment would also require the General 
     Accounting Office to report on the costs associated, by 
     service, with providing separate buildings for male and 
     female recruits.
     After-hours privacy for recruits during basic training (sec. 
         522)
       The House bill contained a provision (sec. 522) that would 
     amend title 10, United States Code, to require each of the 
     secretaries of the military departments to restrict after-
     hours access to recruit housing areas to same-sex training 
     personnel. The provision would allow an exception to this 
     policy in case of an emergency or circumstance requiring 
     immediate action.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would restrict 
     after-hours access to recruit housing areas to drill 
     sergeants and other training personnel who are of the same 
     gender as the recruits housed in that area or to members of 
     the chain of command as long as they are accompanied by a 
     member, who is not a recruit, but is of the same gender, as 
     the recruits housed in that area.
       The conferees note that these restrictions are intended to 
     cover the period after ``lights out'' at night until ``lights 
     on'' in the morning.
     Sense of the House of Representatives relating to small unit 
         assignments by gender during recruit basic training (sec. 
         523)
       The conference report contains a provision that would 
     express the sense of the House of Representatives that the 
     secretaries of the military departments should require males 
     and females to be assigned to separate units at the platoon, 
     division, or flight level during recruit basic training.
       The conferees direct the Secretary of Defense to include a 
     separate section in the report on sexual harassment required 
     by section 591 of the National Defense Authorization Act for 
     Fiscal Year 1998 (Public Law 105-85) of the National Defense 
     Authorization Act for Fiscal Year 1998 to report on sexual 
     misconduct at the basic training centers of each of the 
     military departments. Specifically, the report shall include 
     a statistical summary, by type, of all incidents of sexual 
     misconduct, including sexual harassment and fraternization, 
     involving trainees, cadre members or trainees and cadre 
     members that occurred in the basic training centers of each 
     service. The data provided in the report for each service 
     should be expressed using a common standard of measurement 
     and should include a summary of the disciplinary and 
     administrative actions taken in response to the misconduct. 
     Consistent with the requirement for the sexual harassment 
     report, the report on sexual misconduct in basic training 
     shall be submitted to the Congress no later than April 1, 
     1999, and shall include data on all cases of sexual 
     misconduct that occurred during the preceding year.
       The Commission on Military Training and Gender-Related 
     Issues, established in the National Defense Authorization Act 
     for Fiscal Year 1998, is expected to report to the Congress 
     in April 1999, on its review of the basic training programs 
     of each of the military services. The House conferees intend 
     to fully review all matters pertaining to basic training once 
     the findings and recommendations of the Commission are 
     received and anticipate the likelihood of legislation next 
     year on issues addressed in the Commission's review, 
     including the issue of gender-separate basic training.
     Extension of reporting dates for Commission on Military 
         Training and Gender-Related Issues (sec. 524)
       The House bill contained a provision (sec. 523) that would 
     amend section 562 of the National Defense Authorization Act 
     for Fiscal Year 1998 (Public Law 105-85) to extend the 
     reporting dates required of the Commission on Military 
     Training and Gender-Related Issues. This provision would 
     extend the date of the initial report to October 15, 1998, 
     and the final report to March 15, 1999.
       The Senate amendment contained a similar provision (sec. 
     526).
       The Senate recedes.
     Improved oversight of innovative readiness training (sec. 
         525)
       The House bill contained a provision (sec. 524) that would 
     require the Department of Defense to implement the General 
     Accounting Office recommendations to improve program 
     compliance with section 2012 of title 10, United States Code, 
     which governs the Innovative Readiness Training program, and 
     would require the Department to establish better cost 
     accounting methods.
       The Senate amendment contained no similar provision.
       The Senate recedes.

           Subtitle D--Decorations, Awards, and Commendations

     Study of new decorations for injury or death in line of duty 
         (sec. 531)
       The House bill contained a provision (sec. 531) that would 
     require the Secretary of Defense, in cooperation with the 
     secretaries of the military departments and the Secretary of 
     Transportation with regard to the Coast Guard, to determine 
     the appropriate name, policy, award criteria, and design for 
     two new decorations, that recognize the service of members of 
     the armed forces who are killed or wounded under non-combat 
     conditions and U.S. civilians who are killed or wounded while 
     serving in an official capacity with a U.S. armed forces. 
     This provision would also require the Secretary to submit a 
     legislative proposal to establish the two decorations and a 
     recommendation concerning the need for the new decorations to 
     the

[[Page H8390]]

     Committee on Armed Services of the Senate and the National 
     Security Committee of the House of Representatives, not later 
     than July 31, 1999.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to study the need for such awards, the 
     criteria that may be used to determine eligibility for such 
     awards, and to report the results of the study to the Senate 
     Armed Services of the Senate and the National Security 
     Committee of the House of Representatives, not later than 
     July 31, 1999.
     Waiver of time limitations for award of certain decorations 
         to certain persons (sec. 532)
       The House bill contained a provision (sec. 532 ) that would 
     waive the statutory time limitations for the award of 
     military decorations to individuals who have been recommended 
     for award of the decorations by the secretaries of the 
     military departments.
       The Senate amendment contained a similar provision (sec. 
     530).
       The House recedes with an amendment that would include 
     awards approved by the secretaries of the military 
     departments since May 12, 1998.
     Commendation and commemoration of the Navy and Marine Corps 
         personnel who served in the United States Navy Asiatic 
         Fleet from 1910-1942 (sec. 533)
       The House bill contained a provision (sec. 533) that would 
     commend those personnel who served in the Asiatic Fleet of 
     the United States Navy between 1910 and 1942.
       The Senate amendment contained a similar provision (sec. 
     1060).
       The House recedes with a clarifying amendment.
       The conferees note that March 1, 1999, is the 57th 
     anniversary of the sinking of the Asiatic Fleet's flagship, 
     the U.S.S. Houston, by Japanese Imperial Forces. The 
     conferees believe that March 1, 1999, may be the most 
     appropriate day for the President to designate as the United 
     States Navy Asiatic Fleet Memorial Day.
     Appreciation for service during World War I and World War II 
         by members of the Navy assigned on board merchant ships 
         as the Naval Armed Guard Service (sec. 534)
       The House bill contained a provision (sec. 534) that would 
     express the appreciation of the Congress and the American 
     people for the service of members of the Navy assigned as gun 
     crews aboard merchant ships as part of the Naval Armed Guard 
     Service during World War I and World War II.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Sense of Congress regarding the heroism, sacrifice, and 
         service of the military forces of South Vietnam and other 
         nations, and indigenous groups in connection with the 
         United States Armed Forces during the Vietnam conflict 
         (sec. 535)
       The House bill contained a provision (sec. 535) that would 
     recognize and honor the significant heroism, sacrifices, and 
     service that the armed forces of South Vietnam and other 
     allies made while fighting together with U.S. Military Forces 
     during the Vietnam conflict.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Sense of Congress the regarding the heroism, sacrifice, and 
         service of former South Vietnamese commandos in 
         connection with the United States Armed Forces during the 
         Vietnam conflict (sec. 536)
       The House bill contained a provision (sec. 536) that would 
     recognize and honor the significant heroism, sacrifices and 
     service that the South Vietnamese commandos made during the 
     Vietnam conflict. The House report (H. Rept. 105-532) notes 
     that section 657 of the National Defense Authorization Act 
     for Fiscal Year 1997 (Public Law 104-201) authorized 
     compensation for Vietnamese commandos incarcerated for 20 
     years or more.
       The Senate amendment contained a similar provision (sec. 
     1068).
       The Senate recedes.
     Prohibition on members of armed forces entering correctional 
         facilities to present decorations to persons who have 
         committed serious violent felonies (sec. 537)
       The Senate amendment contained a provision (sec. 531) that 
     would prohibit the military services from presenting a 
     military award or decoration in a prison or confinement 
     facility.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
       The conferees note that the provision does not preclude the 
     military services from awarding a military award or 
     decoration to an eligible current or former service member 
     who may be confined. However, the award may not be presented 
     to the individual in a prison or confinement facility.

   Subtitle E--Administration of Agencies Responsible for Review and 
                     Correction of Military Records

     Personnel freeze (sec. 541)
       The House bill contained a provision (sec. 541) that would 
     preserve the current level of performance of the Army Review 
     Board Agency, the Air Force Review Boards Agency, and the 
     Board for Correction of Naval Records by requiring a report 
     to the Congress 90 days before the number of employees 
     assigned to those organizations is reduced below the number 
     assigned, as of October 1, 1997.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Professional staff (sec. 542)
       The House bill contained a provision (sec. 542) that would 
     amend chapter 79 of title 10, United States Code, to require 
     each Board for the Correction of Military Records to employ 
     an attorney and a physician to serve as advisors to the staff 
     on legal and medical matters being considered by the board.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Ex parte communications (sec. 543)
       The House bill contained a provision (sec. 543) that would 
     amend chapter 79 of title 10, United States Code, to require 
     each Board for the Correction of Military Records to provide 
     applicants with copies of communications that directly apply 
     to or have a material effect on the applicants' cases.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Timeliness standards (sec. 544)
       The House bill contained a provision (sec. 544) that would 
     require each Board for the Correction of Military Records to 
     improve the timeliness of board actions over a ten-year 
     period, beginning in fiscal year 2001 and culminating with a 
     requirement to complete action on 90 percent of the cases 
     within ten months of receipt during fiscal year 2011 and 
     beyond.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Scope of correction of military records (sec. 545)
       The conference agreement includes a provision that would 
     define military records for purposes of payment of claims 
     arising from correction of a military record and would 
     require the Secretary of Defense to report to the Congress 
     not later than March 31, 1998, on the effect of the six-year 
     bar to retroactive payments when relief is granted by a Board 
     for the Correction of Military Records.

                          Subtitle F--Reports

     Report on personnel retention (sec. 551)
       The House bill contained a provision (sec. 1033) that would 
     require the Secretary of Defense to submit, within 90 days of 
     enactment, a report to the Congress that contains information 
     on the retention of active duty service members of each 
     military service during each fiscal year from 1989 through 
     1998.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Report on process for selection of members for service on 
         courts-martial (sec. 552)
       The House bill contained a provision (sec. 561) that would 
     require the Secretary of Defense to submit to the Congress, 
     by April 15, 1999, a report on the method of selection of 
     members of the armed forces to serve on courts-martial, 
     including the development of a plan by the military services 
     for random selection of members.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment.
     Report on prisoners transferred from United States 
         Disciplinary Barracks, Fort Leavenworth, Kansas, to 
         Federal Bureau of Prisons (sec. 553)
       The House bill contained a provision (sec. 560) that would 
     require the Secretary of Defense to evaluate and report to 
     Congress on the rationale for, and effectiveness of, the 
     policy of transferring prisoners from the United States 
     Disciplinary Barracks, Fort Leavenworth, Kansas, to the 
     Federal Bureau of Prisons, and would require the Secretary of 
     the Army to monitor the parole and recidivism rates of the 
     military prisoners transferred to the Federal Bureau of 
     Prisons.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Review and report regarding the distribution of National 
         Guard full-time support among the states (sec. 554)
       The Senate amendment contained a provision (sec. 1035) that 
     would require the Chief of the National Guard Bureau to 
     review the process used to allocate and distribute resources, 
     including all categories of full-time manning, among the 
     states for the National Guard and to report not later than 
     March 15, 1999 to the congressional defense committees.
       The House bill contained no similar provision.
       The House recedes with an amendment that would focus the 
     review on the process used to allocate and distribute all 
     categories of National Guard full-time support among the 
     states, would require the Chief of the National Guard Bureau 
     to submit the report to the Secretary of Defense, and 
     would require the Secretary of Defense to forward the 
     report, along with his evaluation of the report, to the 
     Committee on Armed Services of the Senate and the National 
     Security Committee of the House of Representatives.

                       Subtitle G--Other Matters

     Two-year extension of certain force drawdown transition 
         authorities relating to personnel management and benefits 
         (sec. 561)
       The House bill contained a provision (sec. 551) that would 
     extend through fiscal year 2000 certain temporary authorities 
     which provide the tools the armed services need to manage 
     personnel reductions and shape the

[[Page H8391]]

     force following the completion of the drawdown of military 
     forces.
       The Senate amendment contained a provision (sec. 522) that 
     would extend until September 30, 2003, the force reduction 
     transition period management and benefits authorities 
     established during the drawdown of the military services.
       The House recedes with an amendment that would extend the 
     temporary authorities until September 30, 2001.
     Leave without pay for suspended academy cadets and midshipmen 
         (sec. 562)
       The House bill contained a provision (sec. 552) that would 
     authorize the appropriate secretary, upon the recommendation 
     of the Superintendent of the United States Military Academy, 
     the United States Naval Academy, the United States Air Force 
     Academy, or the United States Coast Guard Academy, to order a 
     cadet or midshipman to be placed on involuntary leave without 
     pay under certain circumstances.
       The Senate amendment contained a provision (sec. 604) that 
     would authorize the superintendents of the military academies 
     and the Coast Guard Academy to order a cadet or midshipman to 
     be placed on involuntary leave without pay if the cadet or 
     midshipman is pending separation from the academy for 
     misconduct, conduct deficiency, or honor violation while the 
     separation is pending final approval.
       The House recedes with an amendment that would authorize 
     the appropriate service secretary to order a cadet or 
     midshipman to be placed on involuntary leave without pay if 
     the cadet or midshipman is pending separation from the 
     academy for misconduct, conduct deficiency, or honor 
     violation while the separation is pending final approval.
     Continued eligibility under Voluntary Separation Incentive 
         program for members who involuntarily lose membership in 
         a reserve component (sec. 563)
       The House bill contained a provision (sec. 554) that would 
     authorize Voluntary Separation Incentive (VSI) recipients to 
     continue to receive VSI payments after separation from the 
     reserves when the separation was due to age, years of 
     service, failure to be selected for promotion, or medical 
     disqualification, provided the ineligibility does not result 
     from a deliberate action to avoid service.
       The Senate amendment contained a provision (sec. 523) that 
     would permit members who separated under the VSI program and 
     lost their membership in a reserve component, as a result of 
     certain conditions, to continue to receive the benefit 
     payments.
       The House recedes with a clarifying amendment.
     Reinstatement of definition of financial institution in 
         authorities for reimbursement of defense personnel for 
         Government errors in direct deposit of pay (sec. 564)
       The House bill contained a provision (sec. 555) that would 
     amend sections 1053 and 1594 of title 10, United States Code, 
     to specify that the term ``financial institution'' means a 
     bank, savings and loan association or similar institution, or 
     credit union chartered by the United States or a State.
       The Senate amendment contained a similar provision (sec. 
     1047).
       The Senate recedes with a clarifying amendment.
     Increase in maximum amount for College Fund program (sec. 
         565)
       The House bill contained a provision (sec. 556) that would 
     increase the maximum College Fund payment to $50,000, 
     effective October 1, 1999, for service members enlisting 
     after that date.
       The Senate amendment contained a provision (sec. 618) that 
     would increase the amount authorized for military service 
     College Fund programs, not to exceed $50,000, an increase of 
     $10,000.
       The Senate recedes with an amendment that would remove the 
     specified effective date.
     Central Identification Laboratory, Hawaii (sec. 566)
       The House bill contained a provision (sec. 557) that would 
     require the Secretary of Defense to establish joint manning 
     requirements for the Central Identification Laboratory, 
     Hawaii (CILHI), and to staff CILHI at 100 percent of its 
     manpower requirements.
       The Senate amendment contained no similar provision.
       The Senate recedes.
       The conferees do not intend that this provision be 
     interpreted to direct that billets at the Central 
     Identification Laboratory, Hawaii, be designated as joint 
     billets on the joint duty assignment list. The Secretary of 
     Defense may, however, designate billets at the Central 
     Identification Laboratory, Hawaii, as joint duty on the joint 
     duty assignment list if he determines that the billets meet 
     the existing criteria for such designation.
     Military funeral honors for veterans (sec. 567)
       The House bill contained a provision (sec. 558) that would 
     require the secretaries of the military departments to 
     provide, upon request, honor guard details for the funerals 
     of veterans. The provision would specify that the honor guard 
     details be comprised of not less than three persons with the 
     capability to play a recording of Taps, unless a bugler is 
     included in the detail. The honor guard detail would consist 
     of members of the armed forces, members of veterans 
     organizations, or other organizations approved for 
     participation by the Secretary of Defense. The provision 
     would require the Secretary of Defense to establish a system 
     for selection of units of the armed forces or other 
     organizations to provide honor guard details. Before issuing 
     regulations to establish the system, the Secretary of Defense 
     would consult with veterans service organizations to 
     determine the views of those organization regarding methods 
     for providing honor guard details at funerals for veterans, 
     suggestions for organizing the system to provide those 
     details, and estimates of the resources that those 
     organizations could provide for honor guard details. This 
     provision would apply to burials of veterans that occur on, 
     or after, October 1, 1999.
       The Senate amendment contained a provision (sec. 1079) that 
     would require, not later than October 31, 1998, the Secretary 
     of Defense, in consultation with the Secretary of Veterans 
     Affairs, to convene a conference to determine means of 
     improving and increasing the availability of military burial 
     honors for veterans.
       The Senate recedes with an amendment that would combine the 
     two provisions in such a manner as to require the Secretary 
     of Defense, in consultation with the Secretary of Veterans 
     Affairs, to convene a conference, not later than December 31, 
     1998, to determine means of improving and increasing the 
     availability of military burial honors for veterans, and to 
     report the findings and recommendations resulting from the 
     conference to the Committee on Armed Services of the Senate 
     and the National Security Committee of the House of 
     Representatives not later than March 15, 1999. The provision 
     would also require the secretaries of the military 
     departments to provide, upon request, honor guard details for 
     the funerals of veterans comprised of not less than three 
     persons with the capability to play a recording of Taps, 
     unless a bugler is included in the detail, for the funerals 
     of veterans, after December 31, 1999.
       The conferees intend that the requirement to provide a 
     three- person burial detail upon request of a veteran to be 
     effective only if the Secretary of Defense and the Secretary 
     of Veterans Affairs do not recommend an acceptable 
     alternative proposal in the required report. If a recommended 
     alternative includes permitting members of veterans service 
     organizations to perform burial honor details, the Secretary 
     of Defense may consider providing equipment and materiel, as 
     appropriate, to support burial honor detail duties.
       The conferees agree that men and women have unselfishly 
     answered the call to arms at tremendous personal sacrifice. 
     These men and women who served honorably, whether in war or 
     peace, deserve commemoration for their military service at 
     the time of their death by an appropriate tribute. Burial 
     honors are an important means of reminding Americans of the 
     sacrifices endured to keep the Nation free.
     Status in the Naval Reserve of cadets at the Merchant Marine 
         Academy (sec. 568)
       The House bill contained a provision (sec. 563) that would 
     require the Secretary of Defense, in coordination with the 
     Secretary of Transportation, to ensure that citizens of the 
     United States appointed as cadets at the United States 
     Merchant Marine Academy are members of the Naval Reserve. The 
     provision would also require the Secretary of Defense to 
     issue such cadets military identification cards.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
       The conferees direct the Secretary of the Navy to determine 
     the specific status cadets at the United States Merchant 
     Marine Academy shall have within the Naval Reserve. The 
     Secretary shall ensure that the benefits associated with the 
     military identification card issued to cadets at the United 
     States Merchant Marine Academy are consistent with their 
     status within the Naval Reserve.
     Repeal of restriction on civilian employment of enlisted 
         members (sec. 569)
       The Senate amendment contained a provision (sec. 525) that 
     would repeal section 974 of title 10, United States Code, 
     which restricts enlisted personnel from engaging in a 
     civilian pursuit or business if the pursuit or business 
     interferes with the employment of local civilians in their 
     art, trade, or profession.
       The House bill contained no similar provision.
       The House recedes.
     Transitional compensation for abused dependent children not 
         residing with the spouse or former spouse of a member 
         convicted of dependent abuse (sec. 570)
       The Senate amendment contained a provision (sec. 528) that 
     would authorize transitional compensation to eligible 
     dependent children who do not reside with a spouse or former 
     spouse who is also eligible for transitional compensation 
     payments. The recommended provision would ensure that 
     dependent children who are victims of abuse are not denied 
     compensation because of family circumstances that may cause 
     the dependent children not to reside with the spouse or 
     former spouse.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Pilot program for treating GED and home school diploma 
         recipients as high school graduates for determinations of 
         eligibility for enlistment in the armed forces (sec. 571)
       The Senate amendment contained a provision (sec. 529) that 
     would establish a five-

[[Page H8392]]

     year pilot program to permit participants in a National 
     Guard Youth Challenge Program who receive a general 
     education development (GED) certificate and those who 
     complete their high school requirements through a home 
     schooling program to enlist in the armed forces, as if 
     they had received a high school diploma. The recommended 
     provision would limit the pilot program to not more than 
     10,000 persons per year (1,250 per educational source per 
     military service). The provision would require the 
     Secretary of Defense to conduct a comprehensive evaluation 
     of the performance of the participants in the pilot 
     program and report the results to the Congress not later 
     than February 1, 2004.
       The House bill contained no similar provision.
       The House recedes with an amendment that would reduce the 
     number of participants to 5,000 per year (1,250 per military 
     service) and require a separate evaluation of the performance 
     of GED and home school participants.
     Sense of Congress concerning New Parent Support Program and 
         military families (sec. 572)
       The House bill contained a provision (sec. 1051) that would 
     express the sense of Congress that the New Parent Support 
     Program has been an effective tool in curbing family violence 
     within the military community and that the Department of 
     Defense should seek ways to ensure that, in future fiscal 
     years, sufficient funds are made available for this program. 
     The recommended provision would also require that, within 120 
     days of the date of enactment of this Act, the Secretary of 
     Defense to submit a report to the Congress describing the 
     manner in which the New Parent Support Program is being 
     implemented by each service, the number of military 
     installations receiving support for the program, and the 
     funding for the program by the date of each military service 
     for fiscal years 1994 through 1998 and the amount of funding 
     projected for fiscal year 1999.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     report to address funding during fiscal years 1994 through 
     1999, and the funding projected for fiscal year 2000.
     Advancement of Benjamin O. Davis, Junior, to grade of General 
         on the retired list of the Air Force (sec. 573)
       The Senate amendment contained a provision (sec. 532) that 
     would authorize the President to advance Benjamin O. Davis, 
     Junior, to the grade of General on the retired list of the 
     Air Force. The provision would specifically provide that no 
     additional benefits accrue to General Davis or his heirs as a 
     result of this advancement.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Sense of the House of Representatives concerning adherence by 
         civilians in military chain of command to the standard of 
         exemplary conduct required of commanding officers and 
         others in authority in the Armed Forces (sec. 574)
       The House bill contained a provision (sec. 559) that would 
     extend the requirement for exemplary conduct on commanding 
     officers and others to the President, as Commander-in-Chief, 
     and the Secretary of Defense, both of whom exercise authority 
     in the military chain of command.
       The Senate amendment contained no similar provision.
       The conference agreement includes a provision that would 
     express the sense of the House of Representatives that 
     civilian members of the military chain of command should, in 
     the same manner as commanding officers and others in 
     authority in the armed forces, show in themselves a good 
     example of virtue, honor, and patriotism, and to subordinate 
     themselves to those ideals.
       For many years, commanding officers, and others in 
     authority, in the Navy have been required by law to conduct 
     themselves in an exemplary manner. The National Defense 
     Authorization Act for Fiscal Year 1998 extended such a 
     requirement for exemplary conduct to commanding officers, and 
     others in authority, in the Army and Air Force. This 
     provision results from the House conferees' belief that a 
     similar standard for exemplary conduct should also extend to 
     the civilian leaders designated by title 10, United States 
     Code, as being in the military chain of command.

                   Legislative Provisions Not Adopted

     Posthumous commissions and warrants
       The House bill contained a provision (sec. 504) that would 
     authorize the President to promote an officer posthumously 
     when the secretary of a military department approves the 
     results of the appropriate board after the date of death of 
     the officer, so long as the officer is selected for promotion 
     by a promotion board before the date of death.
       The Senate amendment contained no similar provision.
       The House recedes.
     Study of revising the term of service of members of the 
         United States Court of Appeals for the Armed Forces
       The House bill contained a provision (sec. 562) that would 
     require the Secretary of Defense to submit to Congress a 
     report on the desirability of revising the term of 
     appointment for judges of the United States Court of Appeals 
     for the Armed Forces so that the term would be for 15 years 
     or until the judge attained age 65, whichever is later.
       The Senate amendment contained no similar provision.
       The House recedes.
     Repeal of limitations on authority to set rates and waive 
         requirement for reimbursement of expenses incurred for 
         instruction at service academies of persons from foreign 
         countries
       The Senate amendment contained a provision (sec. 524) that 
     would repeal the limitations on the authority of the 
     secretary of a military department to waive the requirement 
     for reimbursement of expenses for foreign students at the 
     military service academies.
       The House bill contained no similar provision.
       The Senate recedes.
     Moratorium on changes of gender-related policies and 
         practices pending completion of the work of the 
         Commission on Military Training and Gender-Related Issues
       The Senate amendment contained a provision (sec. 527) that 
     would prohibit the Secretary of Defense from implementing any 
     policy changes with regard to separation or integration of 
     members of the armed forces on the basis of gender, which are 
     within the responsibility of the Commission on Military 
     Training and Gender-Related Issues, until the commission has 
     completed its work and issued its report. The final report is 
     due on March 15, 1999.
       The House bill contained no similar provision.
       The Senate recedes.

          Title VI--Compensation and Other Personnel Benefits

                     Legislative Provisions Adopted

                     Subtitle A--Pay and Allowances

     Increase in basic pay for fiscal year 1999 (sec. 601)
       The House bill contained a provision (sec. 601) that would 
     waive section 1009 of title 37, United States Code, and 
     increase, effective January 1, 1999, the rates of basic pay 
     for members of the uniformed services by 3.6 percent or the 
     percent increase determined under subsection (c) of section 
     1009 of title 37, United States Code, should the President 
     approve a pay increase for federal workers, whichever is 
     higher.
       The Senate amendment contained a provision (sec. 601) that 
     would waive section 1009 of title 37, United States Code, and 
     increase the rates of basic pay for members of the uniformed 
     services by 3.6 percent, effective January 1, 1999.
       The Senate recedes.
     Rate of pay for cadets and midshipmen at the service 
         academies (sec. 602)
       The Senate amendment contained a provision (sec. 602) that 
     would increase the rate of pay for cadets and midshipmen at 
     the service academies from $558.04 per month to $600.00 per 
     month, effective January 1, 1999.
       The House bill contained no similar provision.
       The House recedes.
     Basic allowance for housing outside the United States (sec. 
         603)
       The House bill contained a provision (sec. 602) that would 
     authorize the payment of advance deposits and rent for 
     housing in overseas areas when required by local conditions. 
     The provision would also protect the member from losses due 
     to fluctuations in the value of foreign currency and would 
     allow the government to recoup the full amount of advances, 
     to include any gain resulting from currency fluctuations.
       The Senate amendment contained no similar provision
       The Senate recedes.
     Basic allowance for subsistence for reserves (sec. 604)
       The House bill contained a provision (sec. 603) that would 
     clarify the entitlement of reservists to rations in kind or 
     payment for meals purchased when rations in kind are not 
     available.
       The Senate amendment contained no similar provision.
       The Senate recedes.

             Subtitle B--Bonuses and Special Incentive Pays

     Three-month extension of certain bonuses and special pay 
         authorities for reserve forces (sec. 611)
       The House bill contained a provision (sec. 611) that would 
     extend the authority for the special pay for health care 
     professionals who serve in the Selected Reserve in critically 
     short wartime specialties, the Selected Reserve reenlistment 
     bonus, the Selected Reserve enlistment bonus, special pay for 
     enlisted members of the Selected Reserve assigned to certain 
     high priority units, the Selected Reserve affiliation bonus, 
     the Ready Reserve enlistment and reenlistment bonus, and the 
     prior service enlistment bonus until September 30, 2000. The 
     provision would also extend the authority for repayment of 
     educational loans for certain health professionals who serve 
     in the Selected Reserve until October 1, 2000.
       The Senate amendment contained a provision (sec. 611) that 
     would extend the authority to pay special pay critically 
     short wartime health specialists in the Selected Reserve, the 
     Selected Reserve reenlistment bonuses, the Selected Reserve 
     enlistment bonuses, the special pay for enlisted members 
     assigned to certain high priority units in the Selected 
     Reserve, the Selected Reserve affiliation bonus, the Ready 
     Reserve enlistment and reenlistment bonus, the repayment of 
     loans for certain health professionals who serve in the 
     Selected Reserve, and the prior

[[Page H8393]]

     service enlistment bonus until December 31, 1999.
       The House recedes.
       The conferees understand the value of bonuses and special 
     pay as a tool for recruiting and retaining skilled, qualified 
     personnel. The conferees intend that these bonuses will be 
     reauthorized on an annual basis.
     Three-month extension of certain bonuses and special pay 
         authorities for nurse officer candidates, registered 
         nurses, and nurse anesthetists (sec. 612)
       The House bill contained a provision (sec. 612) that would 
     extend the authority for the nurse officer candidate 
     accession program, the accession bonus for registered nurses, 
     and the incentive special pay for nurse anesthetists until 
     September 30, 2000.
       The Senate amendment contained a provision (sec. 612) that 
     would extend the authority to pay certain bonuses and special 
     pay for nurse officer candidates, registered nurses, and 
     nurse anesthetists until December 31, 1999.
       The House recedes.
       The conferees understand the value of bonuses and special 
     pay as a tool for recruiting and retaining skilled, qualified 
     personnel. The conferees intend that these bonuses will be 
     authorized on an annual basis.
     Three-month extension of authorities relating to payment of 
         other bonuses and special pays (sec. 613)
       The House bill contained a provision (sec. 613) that would 
     extend the authority for the aviation officer retention 
     bonus, reenlistment bonus for active members, enlistment 
     bonuses for members with critical skills, special pay for 
     nuclear qualified officers who extend the period of active 
     service, and the nuclear career accession bonus to September 
     30, 2000. The provision would also extend the authority for 
     the nuclear career annual incentive bonus until October 1, 
     2000.
       The Senate amendment contained a provision (sec. 613) that 
     would extend the authority to pay the aviation officer 
     retention bonus, the reenlistment bonus for active members, 
     the enlistment bonuses for critical skills, the special pay 
     for nuclear qualified officers who extend the period of 
     active service, the nuclear career accession bonus, and the 
     nuclear career annual incentive bonus until December 31, 
     1999.
       The House recedes.
       The conferees understand the value of bonuses and special 
     pay as a tool for recruiting and retaining skilled, qualified 
     personnel. The conferees intend that these bonuses will be 
     reauthorized on an annual basis.
     Increased hazardous duty pay for aerial flight crewmembers in 
         certain pay grades (sec. 614)
       The Senate amendment contained a provision (sec. 620a) that 
     would increase the hazardous duty pay for enlisted aerial 
     flight crewmembers.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Aviation career incentive pay and aviation officer retention 
         bonus (sec. 615)
       The House bill contained a provision (sec. 614) that would 
     make clarifying amendments to sections 301a and 301b of title 
     37, United States Code, to facilitate the payment of Aviation 
     Career Incentive Pay and Aviation Continuation Pay to warrant 
     officers.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Diving duty special pay for divers having diving duty as a 
         nonprimary duty (sec. 616)
       The House bill contained a provision (sec. 615) that would 
     clarify that the service secretaries may continue paying 
     diving pay to members not assigned to diving duties when the 
     members are required to maintain diving proficiency.
       The Senate amendment contained a similar provision (sec. 
     620b).
       The House recedes.
       The conferees believe that members should be required to 
     maintain proficiency as a diver only when they are subject to 
     no notice return to diving duty on a temporary or permanent 
     basis.
     Hardship duty pay (sec. 617)
       The House bill contained a provision (sec. 620) that would 
     change the criteria eligiblity to receive hardship duty pay 
     from a location to a specific duty without regard to 
     location.
       The Senate amendment contained a similar provision (sec. 
     620).
       The House recedes with a clarifying amendment.
     Selective reenlistment bonus eligibility for Reserve members 
         performing active Guard and Reserve duty (sec. 618)
       The House bill contained a provision (sec. 616) that would 
     authorize payment of selective reenlistment bonuses to 
     members of the reserve components who are on extended active 
     duty in the Active Guard and Reserve (AGR) program.
       The Senate amendment contained a provision (sec. 614) that 
     would authorize the secretary concerned to offer a 
     reenlistment bonus to reserve component members who are on 
     extended active duty in support of the reserves. The 
     provision would require reserve component members on active 
     duty in support of the reserves to meet the same criteria as 
     regular component enlisted personnel to be eligible for a 
     reenlistment bonus.
       The House recedes with a clarifying amendment.
     Repeal of ten percent limitation on certain selective 
         reenlistment bonuses (sec. 619)
       The House bill contained a provision (sec. 617) that would 
     remove the 10 percent limitation on the number of 
     selective reenlistment bonuses in excess of $20,000 that 
     may be paid.
       The Senate amendment contained a provision (sec. 615) that 
     would repeal the restriction limiting the number of selective 
     reenlistment bonuses which exceed $20,000 paid during any 
     fiscal year.
       The Senate recedes with a clarifying amendment.
     Increase in maximum amount authorized for Army enlistment 
         bonus (sec. 620)
       The House bill contained a provision (sec. 618) that would 
     increase the maximum bonus for enlistment in the Army from 
     $4,000 to $6,000.
       The Senate amendment contained a provision (sec. 616) that 
     would increase the maximum amount authorized to be offered to 
     a qualifying high school graduate who enlists in the Army for 
     at least three years in designated skills from $4,000 to 
     $6,000.
       The House recedes with a clarifying amendment.
     Equitable treatment of Reserves eligible for special pay for 
         duty subject to hostile fire or imminent danger (sec. 
         621)
       The House bill contained a provision (sec. 619) that would 
     authorize reserve members to receive the amount of imminent 
     danger pay authorized for a full month regardless of the 
     number of qualifying days served by the member during the 
     month. The provision would make the imminent danger pay 
     payment policy for reservists consistent with the policy for 
     active duty members. Accordingly, the House bill provided for 
     an increase of $3.0 million over the amount included in the 
     budget request for reserve imminent danger pay.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Retention incentives initiative for critically short military 
         occupational specialites (sec. 622)
       The Senate amendment contained a provision (sec. 620(c)) 
     that would require the Secretary of Defense to establish a 
     series of new incentives, in addition to the current 
     incentives, to encourage service members in critically short 
     specialities to reenlist.
       The House bill contained no similar provision.
       The House recedes.

            Subtitle C--Travel and Transportation Allowances

     Payments for movements of household goods arranged by members 
         (sec. 631)
       The Senate amendment contained a provision (sec. 603) that 
     would authorize the Departments of Defense, Health, and 
     Transportation to provide members of the uniformed services 
     with a reimbursement or monetary allowance in advance for the 
     cost of transportation for that member's baggage and 
     household effects. The monetary allowance may be paid only if 
     payment of the allowance results in an overall cost savings 
     to the government. This will enhance the ability of members 
     of the uniformed services to arrange for the movement of 
     their household goods themselves, rather than relying upon 
     the current system, whereby the employing agencies arrange 
     for the movement of these goods for the members.
       The House bill contained no similar provision.
       The House recedes with an amendment that would insert the 
     words ''new sentence'' in (a)(1)(B). The amendment would 
     further replace the word ``a'' with the word ``the'' in the 
     same paragraph. Finally, the amendment would make technical 
     changes to standing law reflecting the fact that paragraphs 
     have been redesignated because of the elimination of 
     subsection (j).
     Exception to maximum weight allowance for baggage and 
         household effects (sec. 632)
       The House bill contained a provision (sec. 631) that would 
     authorize the service secretaries to exceed the maximum 
     weight allowance for shipment of household goods to a new 
     permanent duty station to accommodate shipment of consumable 
     goods that cannot be reasonably obtained at the new location.

       The Senate amendment contained no similar provision.
       The Senate recedes.
       The conferees intend that this apply only to shipments to a 
     new permanent duty station where consumable goods are not 
     reasonably available. The conferees do not intend the 
     increased weight allowance to be used for shipments from a 
     permanent duty station in which consumable goods were not 
     reasonably available.
     Travel and transportation allowances for travel performed by 
         members in connection with rest and recuperative leave 
         from overseas stations (sec. 633)
       The House bill contained a provision (sec. 632) that would 
     clarify that the service secretaries may provide the 
     transportation authorized the rest and recuperation travel 
     using either government or commercial carriers. This 
     provision would enhance the cost efficiency of the rest and 
     recuperation program being provided to personnel assigned to 
     Operation Joint Guard in the Republic of Bosnia and 
     Herzegovina.
       The Senate amendment contained a provision (sec. 621) that 
     would authorize the secretary concerned to pay for commercial

[[Page H8394]]

     transportation, not to exceed the cost of government provided 
     transportation, for leave travel of members assigned to 
     overseas locations in contingency operations or at overseas 
     locations where unusual conditions exist. The provision would 
     permit members to receive one round trip during any period of 
     service of at least six months, but not to exceed 24 months.
       The Senate recedes.
     Storage of baggage of certain dependents (sec. 634)
       The House bill contained a provision (sec. 633) that would 
     amend section 430 of title 37, United States Code, to 
     authorize dependents of military members assigned to overseas 
     locations annual round trip visits while those dependents are 
     college students in the United States. The provision would 
     authorize the storage of unaccompanied baggage of such 
     dependents in lieu of shipment if advantageous to the 
     government.
       The Senate amendment contained a provision (sec. 622) that 
     would authorize storage of a dependent student's 
     unaccompanied baggage in lieu of shipping the baggage to the 
     overseas duty station of the sponsor. When a student 
     attending school in the United States returns to spend the 
     summer with their family in an overseas location, they must 
     ship their goods to the overseas location. The recommended 
     provision would permit the baggage to be stored locally, 
     which is less expensive than a round-trip overseas shipment.
       The Senate recedes.
     Commercial travel of Reserves at Federal supply schedule 
         rates for attendance at inactive-duty training assemblies 
         (sec. 635)
       The House bill contained a provision (sec. 368) that would 
     permit members of the reserve components to use General 
     Services Administration federal supply contracts for 
     commercial air transportation in order to perform inactive 
     duty training.
       The Senate amendment contained a similar provision (sec. 
     623).
       The House recedes.

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

     Paid-up coverage under Survivor Benefit Plan (sec. 641)
       The Senate amendment contained a provision (sec. 631) that 
     would, effective October 1, 2003, terminate Survivor Benefit 
     Plan payments following 30 years of payments and attainment 
     of the age of 70.
       The House bill contained no similar provision.
       The House recedes with an amendment that would make the 
     effective date October 1, 2008.
     Survivor Benefit Plan open enrollment period (sec. 642)
       The Senate amendment contained a provision (sec. 634) that 
     would establish a one-year open enrollment period for the 
     Survivor Benefit Plan, beginning March 1, 1999. The provision 
     would require persons electing to enroll in the Survivor 
     Benefit Plan during the open enrollment period to pay 
     premiums equal to the amount the member would have paid had 
     the member enrolled at the first opportunity afforded that 
     member, with interest, and any additional amount the 
     Secretary of Defense determines to be necessary to make the 
     election actuarially sound.
       The House bill contained no similar provision.
       The House recedes.
     Effective date of court-required former spouse survivor 
         benefit plan coverage effectuated through elections and 
         deemed elections (sec. 643)
       The House bill contained a provision (sec. 641) that would 
     standardize the effective date of Survivor Benefit Plan 
     coverage for a former spouse as the first day of the first 
     month following the date of the court order directing the 
     coverage.
       The Senate amendment contained a similar provision (sec. 
     632).
       The House recedes with a clarifying amendment.
     Presentation of a United States flag to members of the Armed 
         Forces upon retirement (sec. 644)
       The Senate amendment contained a provision (sec. 637) that 
     would require the secretary of a military department to 
     present a United States flag to a member upon retirement from 
     active or reserve service.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Recovery, care, and disposition of remains of medically 
         retired member who dies during hospitalization that 
         begins while on active duty (sec. 645)
       The House bill contained a provision (sec. 553) that would 
     authorize military retirees the same benefits for recovery, 
     care, and disposition of remains as active duty members when 
     that member is medically retired from active duty while 
     hospitalized and the hospitalization is continuous until the 
     date of death.
       The Senate amendment contained a similar provision (sec. 
     633).
       The House recedes with a clarifying amendment.
     Revision to computation of retired pay for certain members 
         (sec. 646)
       The House bill contained a provision (sec. 642) that would 
     clarify that section 1406(i) of title 10, United States Code, 
     would not apply to enlisted members who, after serving as the 
     senior enlisted advisor of an armed force, are reduced in 
     grade as the result of a court-martial sentence, nonjudicial 
     punishment, or other administrative process. The provision 
     would also provide that the computation of the high-three 
     average of a retired enlisted member who was reduced in grade 
     be based on the lower grade.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would retain the 
     clarification to section 1406(i).
       The conferees urge the Secretary of Defense to review the 
     effect of a reduction in grade on members who are reduced in 
     grade and who may retire under the high-three average 
     method of computation of retired pay and, if appropriate, 
     recommend legislation to ensure that the member's retired 
     pay be computed based on the lower grade.
     Elimination of backlog of unpaid retired pay (sec. 647)
       The Senate amendment contained a provision (sec. 638) that 
     would require the Secretary of the Army to eliminate the 
     backlog of unpaid retired pay for members and the former 
     members of the Army, the Army Reserve, and the Army National 
     Guard by December 31, 1998.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.

                       Subtitle E--Other Matters

     Definition of possessions of the United States for pay and 
         allowances purposes (sec. 651)
       The House bill contained a provision (sec. 651) that would 
     delete the Canal Zone from the list of U.S. possessions as 
     defined in title 37, United States Code.
       The Senate amendment contained a similar provision (sec. 
     641).
       The Senate recedes with a clarifying amendment.
     Accounting of advance payments (sec. 652)
       The House bill contained a provision (sec. 652) that would 
     clarify the authority of the secretary concerned to disburse 
     advance payments to service members in a permanent change of 
     station status in amounts that may exceed available 
     appropriations in the relevant military personnel accounts.
       The Senate amendment (sec. 1046) contained a similar 
     provision.
       The Senate recedes with a technical amendment.
     Reimbursement of rental vehicle costs when motor vehicle 
         transported at government expense is late (sec. 653)
       The House bill contained a provision (sec. 653) that would 
     authorize a service member being transferred to an overseas 
     station to rent a car for one week at government expense when 
     the privately owned vehicle shipped to the overseas location 
     does not arrive as scheduled. The provision would limit the 
     car rental reimbursement to $30 a day for one week, and would 
     require the Secretary of Defense to certify in a report to 
     the Congress that a system is operational to recover the cost 
     of the reimbursement for the rental car from the shipping 
     company that caused the delay prior to any reimbursement.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Education loan repayment program for health professions 
         officers serving in Selected Reserve (sec. 654)
       The House bill contained a provision (sec. 654) that would 
     increase the authorized caps on the education loan amounts 
     that may be repaid by the Secretary of Defense to recruit and 
     retain health professionals with shortage wartime critical 
     medical skills who serve in the Selected Reserve. The 
     provision would increase the repayment amounts from $3,000 
     per year and $20,000 total to $10,000 and $50,000, 
     respectively.
       The Senate amendment contained a provision (sec. 617) that 
     would modify the current education loan repayment program by 
     permitting the services to offer the program to certain 
     health professions students, and would increase the loan 
     repayment limit from $3,000 per year and a total of $20,000 
     to $20,000 per year and a total of $50,000.
       The House recedes.
     Federal employees' compensation coverage for students 
         participating in certain officer candidate programs (sec. 
         655)
       The Senate amendment contained a provision (sec. 642) that 
     would provide medical coverage to college students 
     participating in a Senior Reserve Officers' Training program 
     or the Marine Corps Platoon Leaders Course who are injured or 
     become ill while attending training on orders. The provision 
     would provide for medical coverage for injury or illness even 
     if incurred during non-duty hours, provided the injury or 
     illness is determined to be in the line of duty, as 
     prescribed by service regulations.
       The House bill contained no similar provision.
       The House recedes.
     Relationship of enlistment bonuses to eligibility to receive 
         Army college fund supplement under Montgomery GI bill 
         Educational Assistance Program (sec. 656)
       The Senate amendment contained a provision (sec. 619) that 
     would authorize the military services to offer both an 
     enlistment bonus and a college fund program to prospective 
     recruits in selected critically short specialities.
       The House bill contained no similar provision.

[[Page H8395]]

       The House recedes with a clarifying amendment.
     Authority to provide financial assistance for education of 
         certain defense dependents overseas (sec. 657)
       The Senate amendment contained a provision (sec. 643) that 
     would authorize the Secretary of Defense to provide financial 
     assistance to sponsors of dependents in overseas areas in 
     which the Department of Defense does not operate schools.
       The House bill contained no similar provision.
       The House recedes.
     Clarifications concerning payments to certain persons 
         captured or interned by North Vietnam (sec. 658)
       The Senate amendment contained a provision (sec. 635) that 
     would authorize payments to the surviving parents or siblings 
     of Vietnamese commandos who were not married at the time of 
     their death.
       The Senate amendment contained an additional provision 
     (sec. 636) that would clarify that payments to Vietnamese 
     commandos or their survivors must be paid directly to the 
     authorized recipient.
       The House bill contained no similar provisions.
       The House recedes with an amendment that would combine the 
     two provisions into a single provision.

                   Legislative Provisions Not Adopted

     Voting rights of military personnel
       The Senate amendment contained a provision (sec. 644) that 
     would amend the Soldiers' and Sailors' Civil Relief Act of 
     1940 to preclude a military member from losing a claim to 
     state residency for the purpose of voting in federal and 
     state elections because of absence due to military orders, 
     and amend the Uniformed and Overseas Citizens Absentee Voting 
     Act to require each state to permit absent military voters to 
     use absentee registration procedures and to vote by absentee 
     ballot in elections for state and local offices, in addition 
     to federal offices as provided in current law.
       The House bill contained no similar provision.
       The Senate recedes.

                   Title VII--Health Care Provisions

                     Legislative Provisions Adopted

                    Subtitle A--Health Care Services

     Dependents' dental program (sec. 701)
       The House bill contained a provision (sec. 721) that would 
     amend section 1076a(b)(2) of title 10, United States Code, to 
     allow for the cap on an enrolled member's share of the 
     monthly premium for the dependent dental program to be 
     adjusted annually for inflation.
       The Senate amendment contained a provision (sec. 701) that 
     would establish an index under which an enrolled member's 
     monthly premium for the dependent dental plan could increase 
     in a manner not to exceed the percentage of the annual pay 
     raise.
       The House recedes with an amendment that would not include 
     the Dependent Dental Program within TRICARE and would 
     prohibit the Secretary of Defense from reducing the dependent 
     dental benefit without prior consultation with the Committee 
     on Armed Services of the Senate and the National Security 
     Committee of the House of Representatives.
     Expansion of dependent eligibility under retiree dental 
         program (sec. 702)
       The House bill contained a provision (sec. 701) that would 
     amend section 1076c of title 10, United States Code, to allow 
     dependents of certain retired service members to enroll in 
     the retiree dental program even if the retired member does 
     not enroll in the program.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Plan for redesign of military pharmacy system (sec. 703)
       The House bill contained a provision (sec. 703) that would 
     require the Secretary of Defense to submit to the Congress, 
     by March 1, 1999, a plan for a system-wide redesign of the 
     military and contractor retail and mail-order pharmacy system 
     by incorporating the ``best business practices'' of the 
     private sector.
       The Senate amendment contained no similar provision.
       The Senate recedes.
       The conferees intend that the uniform formulary be 
     considered the minimum and not the maximum inventory of drugs 
     that may be available through a military treatment facility. 
     The conferees expect that, if the military treatment facility 
     commander determines that the beneficiary population served 
     by that military treatment facility requires drugs that could 
     be provided in a more cost effective manner to the government 
     through the military treatment facility, the military 
     treatment facility commander must have the flexibility to add 
     such drugs to the formulary in that facility. The conferees 
     instruct the Secretary of Defense that the required pharmacy 
     redesign plan not include any proposal in which pharmacies in 
     military treatment facilities could charge fees or co-pays 
     for active duty personnel, nor for any formulary or 
     equivalent generic drug dispensed to any eligible 
     beneficiary. The conferees do not intend that any proposed 
     pharmacy redesign would include any proposal to permit retail 
     pharmacies to purchase drugs at a government rate.
     Transitional authority to provide continued health care 
         coverage for certain persons unaware of loss of CHAMPUS 
         eligibility (sec. 704)
       The House bill contained a provision (sec. 704) that would 
     authorize the Secretary of Defense to extend temporarily 
     CHAMPUS eligibility to certain beneficiaries who may have 
     been unaware of their loss of eligibility for CHAMPUS 
     coverage.
       The Senate amendment contained a similar provision (sec. 
     704).
       The Senate recedes.

                      Subtitle B--TRICARE Program

     Payment of claims for provision of health care under the 
         TRICARE program for which a third party may be liable 
         (sec. 711)
       The House bill contained a provision (sec. 711) that would 
     amend section 1095 of title 10, United States Code, to 
     authorize the Secretary of Defense to allow TRICARE 
     contractors to pay certain provider claims for the provision 
     of health care services for accidental injury prior to 
     seeking payment from potential third-party payers.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     TRICARE prime automatic enrollments and retiree payment 
         options (sec. 712)
       The House bill contained a provision (sec. 712) that would 
     direct the Secretary of Defense to establish procedures for 
     the automatic enrollment in TRICARE Prime at a military 
     treatment facility for active-duty dependents residing within 
     the catchment area of the facility, would require advance 
     written notification of this enrollment, and would allow 
     enrolled family members to disenroll from Military Treatment 
     Facility TRICARE Prime at any time. The provision would also 
     permit retired service members to have any fees associated 
     with enrollment in TRICARE to be paid through an allotment 
     from their retired pay or via electronic funds transfer from 
     a financial institution.
       The Senate amendment contained a similar provision (sec. 
     703).
       The House recedes with an amendment that would permit 
     retired members enrolled in TRICARE Prime to pay enrollment 
     fees by allotment, electronic funds transfer or direct 
     payment on a monthly or quarterly basis, would permit 
     automatic re-enrollment for everyone who is enrolled in 
     TRICARE Prime, and would permit automatic enrollment in 
     TRICARE Prime for authorized family members of service 
     members in grades E-4 and below.
       The conferees intend that service members be notified that 
     their authorized family members have been enrolled in TRICARE 
     Prime and advise them of the procedures to change the 
     enrollment if the automatic enrollment process did not 
     properly enroll their authorized family members. The 
     conferees intend that the Secretary of Defense establish 
     procedures to notify those beneficiaries enrolled in TRICARE 
     Prime of the status of their enrollment upon arrival at a new 
     duty station to ensure that the enrollment is appropriate. 
     The conferees direct the secretaries of the military 
     departments to ensure that unit commanders include TRICARE 
     Prime enrollment as part of all predeployment and permanent 
     change of station inprocessing procedures to ensure that 
     service members are apprised of the enrollment status of 
     their authorized family members and the procedures to modify 
     the enrollment, if necessary. The Secretary of Defense may 
     establish the annual re-enrollment date for those enrolled in 
     TRICARE Prime as he determines to be most efficient. The 
     conferees do not necessarily intend that the annual re-
     enrollment date be on the specific anniversary of the initial 
     enrollment.
     System for tracking data and measuring performance in meeting 
         TRICARE access standards (sec. 713)
       The House bill contained a provision (sec. 722) that would 
     require the Secretary of Defense to establish a system for 
     measuring military treatment facilities and TRICARE 
     contractors' performance in meeting the Department of Defense 
     standards for access to primary care services.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Establishment of appeals process for claimcheck denials (sec. 
         714)
       The House bill contained a provision (sec. 728) that would 
     require the Secretary of Defense, not later than November 1, 
     1998, to submit a proposal to establish an appeals process in 
     cases of denials through the Claim Check computer software 
     system of claims by civilian health care providers in 
     TRICARE.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would direct the 
     Secretary of Defense to establish an appeals process in cases 
     of denials of claims from a civilian health care provider in 
     TRICARE by any computer based software system and to report 
     to the Committee on Armed Services of the Senate and the 
     National Security Committee of the House of Representatives 
     when the appeals system is implemented.
     Reviews relating to accessibility of health care under 
         TRICARE (sec. 715)
       The Senate amendment contained a provision (sec. 711) that 
     would require the Secretary of Defense to revise the TRICARE 
     policy manual to clarify that rehabilitative services are 
     available to a patient for a head injury when the treating 
     physician certifies

[[Page H8396]]

     that such services would be beneficial and to review the 
     adequacy of the provider network to determine whether the 
     networks include sufficient health care providers and 
     specialists.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense to review the TRICARE policy manual to 
     determine whether the policies dealing with the availability 
     of rehabilitative services for patients suffering from head 
     injuries are adequate and address the consideration of 
     certification by an attending physician and report to the 
     Committee on Armed Services of the Senate and the National 
     Security Committee of the House of Representatives, not later 
     than April 1, 1999.
       The conferees direct the Secretary of Defense to ensure 
     that the TRICARE policy manual is written in such a manner as 
     to be clear and easy to comprehend by health care providers 
     and others who may be involved in decisions concerning the 
     authorized coverage under TRICARE.

 Subtitle C--Health-Care Services for Medicare-Eligible Department of 
                 Defense Beneficiaries (secs. 721-724)

       The House bill contained a provision (sec. 729) that would 
     authorize a three-year demonstration project under which not 
     more than 70,000 Medicare-eligible beneficiaries of the 
     Military Health Care System may enroll in the Federal 
     Employees Health Benefits Program (FEHBP). The provision 
     would require the Secretary of Defense and the Director of 
     the Office of Personnel Management to report to the Congress, 
     not later than 39 months after the beginning of the test, on 
     the effectiveness of the demonstration. The Comptroller 
     General would be required to make a similar report within the 
     same time frame as the report of the Secretary of Defense.
       The Senate amendment contained a provision (sec. 707) that 
     would authorize the Secretary of Defense to conduct three 
     health care demonstration projects in order to assess the 
     feasibility and advisability of providing health care to 
     certain Medicare-eligible beneficiaries of the Military 
     Health Care System. The demonstrations would begin not later 
     than January 1, 2000 and end not later than December 31, 
     2003. The recommended provision would authorize: one 
     demonstration project in which Medicare-eligible 
     beneficiaries of the Military Health Care System would 
     participate in the Federal Employees Health Benefits Program; 
     a second demonstration project would create a TRICARE Senior 
     Supplement program in which Medicare-eligible beneficiaries 
     of the Military Health Care System could enroll; and a 
     demonstration that would extend the TRICARE mail order 
     pharmacy benefit to Medicare-eligible beneficiaries of the 
     Military Health Care System.
       The Senate recedes with an amendment that would limit the 
     FEHBP demonstration to not more than 66,000 participants, 
     require the Secretary of Defense to implement a redesigned 
     pharmacy benefit for Medicare-eligible DOD beneficiaries at 
     two sites, and include the TRICARE Senior Supplement 
     demonstration from the Senate amendment. The demonstrations 
     and the redesigned pharmacy benefit would begin not later 
     than January 1, 2000. The FEHBP demonstration would begin 
     during the FEHBP open season for 2000. Implementation of the 
     pharmacy redesign would begin not later than October 1, 1999. 
     The TRICARE Senior Supplement would begin not later than 
     January 1, 2000. The demonstrations would end not later than 
     December 31, 2002. The Secretary of Defense, and in the case 
     of the FEHBP demonstration, the Director of the Office of 
     Personnel Management, would be required to report to the 
     Congress not later than December 31, 2002 on the costs, 
     effectiveness, and the feasibility of making the programs 
     permanent. The Comptroller General would be required to make 
     similar reports within the same time frame as the reports of 
     the Secretary of Defense. In addition, the Comptroller 
     General would be required to complete a comprehensive 
     comparative analysis of the three projects and report to the 
     Congress not later than March 31, 2003.
       The conferees expect that the Secretary of Defense will 
     strongly urge Medicare-eligible beneficiaries to participate 
     in Medicare Part B. The conferees note participation in 
     Medicare Part B is not required for eligibility in the FEHBP 
     demonstration; however, those who do not elect to participate 
     in Medicare Part B and later require Medicare benefits may be 
     required to pay a significant penalty.
       The conferees expect that health benefit plans under 
     chapter 89 of title 5, United States Code, that participate 
     in the FEHBP demonstration project will establish separate 
     enrollment codes for self-only and self-and-family elections 
     as an essential element of the requirement to maintain a 
     separate risk pool for covered beneficiaries. Further, the 
     conferees expect the Secretary of Defense and the Director of 
     the Office of Management and Budget to seek the views of 
     health plans that desire to participate in the demonstration 
     about any aspect that the health plan believes would, in any 
     way, prejudice the results of the project. The report 
     required of the Secretary of Defense and the Director of the 
     Office of Personnel Management shall include verbatim, 
     written views by any participating health plan on the conduct 
     of the demonstration project.
       The conferees strongly believe that eligible beneficiaries 
     must receive accurate, objective, and timely information from 
     the Department of Defense about the opportunity to enroll in 
     a health benefits plan offered under chapter 89 of title 5, 
     United States Code, as well as the other projects. The 
     conferees direct the Secretary of Defense, after consultation 
     with the Director of the Office of Personnel Management and 
     with the participating health plans, to ensure that an 
     educational program is implemented that will provide each 
     eligible beneficiary with easily understandable information 
     concerning enrollment options, enrollment terms and 
     limitations, and any other information reasonably considered 
     essential to making an informed decision concerning 
     participation in a demonstration project.
       As part of the TRICARE Senior Supplement demonstration, the 
     Secretary of Defense shall require participants to pay an 
     enrollment fee that which may not exceed 75 percent of the 
     total subscription charges in a year for self-only or self-
     and-family fee for service coverage under FEHBP. The 
     conferees expect the Secretary of Defense to use as the basis 
     for determining the enrollment fee the FEHBP plan that is 
     comparable to the TRICARE Extra benefit. The conferees do not 
     expect that the FEHBP plan selected as the base plan will be 
     the most expensive plan, and thus prejudice the demonstration 
     project.

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

     Process for waiving informed consent requirement for 
         administration of certain drugs to members of Armed 
         Forces for purposes of a particular military operation 
         (sec. 731)
       The Senate amendment contained a provision (sec. 713) that 
     would require that an investigational new drug or a drug 
     unapproved for its applied use not be administered to a 
     member of the armed forces unless the member provides prior 
     consent. The recommended provision would permit the Secretary 
     of Defense to request the President waive the requirement for 
     prior consent if the Secretary determines that obtaining 
     consent is not feasible, is contrary to the best interests of 
     the members involved, or is not in the best interests of 
     national security.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
       The conferees note that presidential approval, 
     Congressional reports, and prior written notice to the member 
     do not apply to Federal Drup Administration informed consent 
     exceptions applicable to standard medical practice in the 
     United States, as distinguished from informed consent 
     exceptions that relate specifically to military functions and 
     activities.
     Health benefits for abused dependents of members of the armed 
         forces (sec. 732)
       The Senate amendment contained a provision (sec. 712) that 
     would require the secretary concerned to provide an abused 
     dependent of a former member of a uniformed service with 
     medical and dental care during the period that the abused 
     dependent is receiving transitional compensation under 
     section 1059 of title 10, United States Code.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Provision of health care at military entrance processing 
         stations and elsewhere outside medical treatment 
         facilities (sec. 733)
       The Senate amendment contained a provision (sec. 702) that 
     would extend the coverage of contract physicians by the same 
     malpractice litigation rules as other Department of Defense 
     health care providers. The provision would also extend the 
     authority of the Secretary of Defense to provide reasonable 
     attorney's fees in any litigation in which government 
     attorneys do not provide representation.
       The House bill contained no similar provision.
       The House recedes with an amendment that would extend the 
     current authority until December 31, 2000, and would require 
     the Secretary of Defense to conduct a test of alternative 
     methods for conducting medical screenings for enlistment 
     qualification and report the findings not later than March 1, 
     2000.
     Professional qualifications of physicians providing military 
         health care (sec. 734)
       The House bill contained a provision (sec. 726) that would 
     require the secretary of a military department to ensure that 
     each military physician holds an unrestricted medical 
     license. The House bill also contained a provision (sec. 727) 
     that would require the Secretary of Defense to establish a 
     mechanism to ensure that each military physician completes 
     the continuing medical education requirements applicable to 
     their medical speciality.
       The Senate amendment contained a single provision (sec. 
     708) similar to the two provisions in the House bill.
       The House recedes with a clarifying amendment.

                       Subtitle E--Other Matters

     Enhanced Department of Defense organ and tissue donor program 
         (sec. 741)
       The Senate amendment contained a provision (sec. 705) that 
     would require the Secretary of Defense, the secretaries of 
     the military departments, and the Surgeons General to enhance 
     the support for organ and tissue donor elections made by 
     service members.

[[Page H8397]]

       The House bill contained no similar provision.
       The House recedes with an amendment that would require that 
     service members are provided with appropriate information 
     about organ and tissue donation and are afforded the 
     opportunity to elect to be a donor subsequent to completion 
     of initial training, but prior to their first duty 
     assignment.
     Authorization to establish a Level One Trauma Training Center 
         (sec. 742)
       The House bill contained a provision (sec. 724) that would 
     authorize the Secretary of the Army to establish a Level One 
     Trauma Training Center in accordance with the American 
     College of Surgeons standards for trauma centers.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Authority to establish center for study of post-deployment 
         health concerns of members of the armed forces (sec. 743)
       The Senate amendment contained a provision (sec. 709) that 
     would require the Secretary of Defense to contract with an 
     independent organization to assess the feasibility and 
     advisability of establishing an independent entity to 
     evaluate and monitor interagency coordination of issues 
     related to the post-deployment health concerns of members of 
     the armed forces and to report to the Congress on the results 
     of the assessment not later than one year after the enactment 
     of this act.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     the Secretary of Defense to establish a center devoted to a 
     longitudinal study to evaluate information on the health 
     conditions of members of the armed forces upon their return 
     from deployment on military operations in order to rapidly 
     identify trends in illnesses or injuries among such members.
     Report on implementation of enrollment-based capitation for 
         funding for military medical treatment facilities (sec. 
         744)
       The House bill contained a provision (sec. 725) that would 
     require the Secretary of Defense to report to the Congress, 
     by March 1, 1999, on the potential impact of using an 
     enrollment-based capitation methodology to allocate funds to 
     military medical treatment facilities.
       The Senate amendment contained no similar provision. The 
     Senate recedes.
     Joint Department of Defense and Department of Veterans 
         Affairs reports relating to interdepartmental cooperation 
         in the delivery of medical care (sec. 745)
       The Senate amendment contained a provision (sec. 706) that 
     would require the Secretary of Defense and the Secretary of 
     Veterans Affairs to conduct a joint survey of their 
     respective beneficiary populations to identify, by category 
     of individual, the expectations of, requirements for, and 
     behavior patterns of those populations regarding medical 
     care. The provision would require this collaborative effort 
     be developed jointly and administered by an independent 
     entity. Additionally, this provision would require the 
     Secretaries of Defense and Veterans Affairs to review all 
     applicable statutes, regulations, policies and beneficiary 
     attitudes that may preclude or limit cooperative health care 
     programs, including the sharing of facilities and other 
     resources, between the Department of Defense and the 
     Department of Veterans Affairs.
       The House bill contained no similar provision.
       The House recedes with an amendment that would clarify that 
     the joint survey need not include information that is 
     currently available from other sources and that the 
     secretaries report all required information to the Committee 
     on Armed Services of the Senate and the National Security 
     Committee of the House of Representatives.
       The conferees intend that the required pharmaceutical 
     review be oriented toward identifying ways to improve 
     cooperative arrangements between the Department of Defense 
     and the Department of Veterans Affairs. The conferees do not 
     support expanding government pricing for drugs to non-
     government entities.
     Report on research and surveillance activities regarding Lyme 
         disease and other tick-borne diseases (sec. 746)
       The Senate amendment contained a provision (sec. 710) that 
     would authorize $3.0 million within the Defense Health 
     Program to be used for research and surveillance activities 
     related to Lyme disease and other tick-borne diseases.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense to report to the Committee on Armed 
     Services of the Senate and the National Security Committee of 
     the House of Representatives on the impact of Lyme disease 
     and other tick-borne diseases on military readiness and the 
     efforts within the Department of Defense to prevent, 
     identify, and treat such diseases.

                   Legislative Provisions Not Adopted

     Plan for provision of health care for military retirees and 
         their dependents comparable to health care provided under 
         TRICARE Prime
       The House bill contained a provision (sec. 702) that would 
     require the Secretary of Defense to submit to the Congress, 
     by March 1, 1999, a plan for ensuring that military retirees, 
     including Medicare-eligible retirees, and their dependents 
     have access to health care benefits comparable to those 
     offered through TRICARE Prime, the managed-care option of the 
     TRICARE program.
       The Senate amendment contained no similar provision.
       The House recedes.

  Title VIII--Acquisition Policy, Acquisition Management, and Related 
                                Matters

                     Legislative Provisions Adopted

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

     Limitation on use of price preference upon achievement of 
         contract goal for small and disadvantaged businesses 
         (sec. 801)
       The Senate amendment contained a provision (sec. 803) that 
     would condition the use of the 10 percent price preference 
     criteria in section 2323 of title 10, United States Code, on 
     the failure of the Department of Defense (DOD) to achieve the 
     goal in the section during the prior fiscal year.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
       The amendment would clarify that the limitation on the use 
     of the price preference applies only to the DOD and would 
     specify procedures for implementing a suspension of the use 
     of the price preference.
     Distribution of assistance under the procurement technical 
         assistance cooperative agreement program (sec. 802)
       The Senate amendment contained a provision (sec. 804) that 
     would amend section 2413 of title 10, United States Code, and 
     repeal section 2415, United States Code, to recognize the 
     change in the Department of Defense contract administration 
     structure.
       The House bill contained no similar provision.
       The House recedes with an amendment that would retain 
     section 2415 and amend sections 2413 and 2415 by striking 
     ``region'' and inserting ``district''.
     Defense commercial pricing management improvement (sec. 803)
       The Senate amendment contained a provision (sec. 805) that 
     would require the Federal Acquisition Regulation (FAR) be 
     revised to provide guidelines that would ensure price 
     reasonableness in sole-source commercial item purchases. The 
     FAR would also be revised to clarify issues such as the 
     appropriate use of different types of information for 
     establishing such price reasonableness.
       The provision would also require the Secretary of Defense 
     to establish procedures to ensure that, to the maximum extent 
     practicable, sole-source spare parts purchases are negotiated 
     through corporate contracts by single contracting officers or 
     item managers to ensure that the government receives maximum 
     leverage for the size of its purchases and to ensure that 
     catalog discount issues and price reasonableness 
     determinations are not treated in an isolated or piecemeal 
     fashion. Finally, the provision would require the Secretary 
     of Defense to establish a system for tracking price trends in 
     spare parts in order to isolate categories of items that 
     require further management attention. The provision would 
     provide the Secretary of Defense with the discretion to set 
     up such a system in a manner that would ensure minimal burden 
     on the acquisition system and proper management.
       The House bill contained no similar provision.
       The House recedes with an amendment that would clarify the 
     information to be considered in determining price 
     reasonableness, the role of support organizations in the 
     Department of Defense, and the reporting requirements 
     applicable to the price trend analyses.
       The conferees intend that these regulatory changes address 
     the types of abuses uncovered in recent audits conducted by 
     the Department of Defense (DOD) Inspector General on sole 
     source commercial spare parts purchases by the DOD. The 
     conferees do not intend this provision to impede 
     implementation of the general federal government policy 
     stated in the Federal Acquisition Streamlining Act of 1994 
     and the Federal Acquisition Reform Act of 1996 of relying on 
     the commercial sector to an increasing extent for goods and 
     services.
     Modification of senior executives covered by limitation on 
         allowability of compensation for certain contractor 
         personnel (sec. 804)
       The Senate amendment contained a provision (sec. 813) that 
     would revise the definition of the term ``senior executive'' 
     for purposes of the limitation on allowability of 
     compensation for certain contractor personnel.
       The House bill contained no similar provision.
       The House recedes with an amendment that would clarify that 
     the revised definition applies to costs incurred after 
     January 1, 1999, under covered contracts.
     Separate determinations of exceptional waivers of truth in 
         negotiation requirements for prime contracts and 
         subcontracts (sec. 805)
       The Senate amendment contained a provision (sec. 814) that 
     would allow the heads of agencies to waive the requirements 
     under the Truth in Negotiations Act that subcontractors 
     provide certified cost and pricing data in cases where such 
     requirements have been waived for prime contractors due to a 
     determination of exceptional circumstances.

[[Page H8398]]

       The House bill contained no similar provision.
       The House recedes with a clarifying amendment concerning 
     the organizational waiver level.
       The conferees agree that the term ``exceptional 
     circumstances'' requires more than the belief that it may be 
     possible to determine the contract price to be fair and 
     reasonable without the submission of certified cost and 
     pricing data. For example, a waiver may be appropriate in 
     circumstances where it is possible to determine price 
     reasonableness without cost or pricing data and the 
     contracting officer determines that it would not be possible 
     to enter into a contract with a particular contractor in the 
     absence of a waiver. The conferees direct the Department of 
     Defense to work with the appropriate executive branch 
     officials to clarify the situations in which an exceptional 
     circumstance waiver may be granted.
     Procurement of conventional ammunition (sec. 806)
       The House bill contained a provision (sec. 801) that would 
     require that ammunition or ammunition components procured by 
     the Department of Defense (DOD) be acquired from domestic 
     sources pursuant to section 2534 of title 10, United States 
     Code.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would assign to 
     the single manager for conventional ammunition in the DOD the 
     authority to restrict the procurement of conventional 
     ammunition to the national technology and industrial base. 
     The amendment would also require the single manager for 
     conventional ammunition to limit specific procurements, in 
     accordance with section 2304(c)(3) of title 10, United States 
     Code, in cases where it is determined that doing so is 
     necessary to maintain a facility, producer, manufacturer, or 
     other supplier available for furnishing an essential item of 
     ammunition or ammunition component in cases of national 
     emergency or to achieve industrial mobilization.
       This provision supersedes existing guidance issued by the 
     DOD as it relates to the procurement of ammunition from 
     domestic sources. The conferees direct the Department of the 
     Army to issue new guidance to replace the DOD guidance 
     superseded by this provision. The conferees intend that the 
     determination specified in the provision be conducted within 
     the Department of the Army using procedures prescribed by the 
     Secretary of the Army.
     Para-aramid fibers and yarns (sec. 807)
       The Senate amendment contained a provision (sec. 801) that 
     would authorize the Secretary of Defense to procure articles 
     containing para-aramid fibers and yarns manufactured in a 
     foreign country that is a party to defense memorandum of 
     understanding, if such country allows U.S. manufacturers of 
     that product to compete for sales to that foreign country.
       The House bill contained no similar provisions.
       The House recedes with an amendment that would allow the 
     Secretary of Defense to procure articles containing yarns and 
     fibers manufactured in a country with whom the United States 
     has a defense memorandum of understanding upon making a 
     determination described in the provision.
     Clarification of responsibility for submission of information 
         on prices previously charged for property or services 
         offered (sec. 808)
       The Senate amendment contained a provision (sec. 816) that 
     would amend the Truth in Negotiations Act to clarify 
     requirements for contractors to provide appropriate price 
     information required by federal contracting officers to 
     determine price reasonableness.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require that 
     the Federal Acquisition Regulation (FAR) be amended to 
     provide that compliance with the requirement to submit data 
     shall be a condition for an offer or to be eligible to enter 
     into a contract or subcontract, subject to such exceptions as 
     the Federal Acquisition Regulatory Council determines 
     appropriate. The conferees intend that any exceptions to the 
     requirement to submit price-related information be limited to 
     those situations that are clearly specified in the FAR 
     pursuant to this provision.
       Nothing in this section would require any contractor to 
     submit certified cost or pricing data, to comply with the 
     Cost Accounting Standards, or to comply with the contract 
     cost principles, if the contractor is not otherwise required 
     to do so. The conferees do not intend this provision to 
     require any revision to the FAR except to the extent 
     specifically required by subsections (c) and (d).
     Amendments and study relating to procurement from firms in 
         industrial base for production of small arms (sec. 809)
       The House bill contained a provision (sec. 803) that would 
     amend section 2473 of title 10, United States Code, to 
     require the Secretary of Defense to procure all small arms 
     end items, small arms repair parts, modifications to improve 
     small arms, and repair parts consisting of small arms 
     barrels, bolts and receivers from the small arms production 
     industrial base.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require 
     specified small arms purchases be made only from a firm in 
     the small arms industrial base unless the Secretary 
     determines, with a regard to a particular procurement, that 
     such requirement is not necessary to preserve the small arms 
     industrial base. The requirements under section 2473 would 
     apply to procurement of repair parts for or modifications to 
     improve the M16 series rifle, the MK19 grenade machine gun, 
     the M4 series carbine, the M240 series machine gun, and the 
     M249 squad automatic weapon. The amendment would also require 
     the Secretary of the Army to conduct a study under the 
     auspices of the Army Science Board to examine whether the 
     requirements of section 2473 should be expanded in specified 
     ways and authorizes the Secretary to do so based on the 
     recommendations of the Army Science Board. The conferees 
     expect the completion of the Army Science Board study, 
     including recommendations, no later than 180 days after the 
     date of enactment of this Act.

                       Subtitle B--Other Matters

     Eligibility of involuntarily downgraded employee for 
         membership in an acquisition corps (sec. 811)
       The House bill contained a provision (sec. 802) that would 
     enable civilian members of the Defense Acquisition Corps who 
     are reduced in grade due to a base closing or downsizing to 
     retain their membership in the Acquisition Corps for the 
     purposes of the Defense Acquisition Workforce Improvement 
     Act.
       The Senate amendment contained a similar provision (sec. 
     809).
       The House recedes.
     Time for submission of annual report relating to Buy American 
         Act (sec. 812)
       The House bill contained a provision (sec. 804) that would 
     reduce the time for the submission of the annual report 
     relating to the Buy American Act required in section 827 of 
     the National Defense Authorization Act for Fiscal Year 1997 
     (Public Law 104-201) from 90 to 60 days after the end of the 
     fiscal year.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Procurement of travel services for official and unofficial 
         travel under one contract (sec. 813)
       The Senate amendment contained a provision (sec. 802) that 
     would allow the procurement of travel services under one 
     contract for both official and unofficial travel.
       The House bill contained no similar provision.
       The House recedes.
     Department of Defense purchases through other agencies (sec. 
         814)
       The Senate amendment contained a provision (sec. 806) that 
     would require the Secretary of Defense to revise regulations 
     issued pursuant to section 844 of the National Defense 
     Authorization Act for Fiscal Year 1994 (Public Law 103-160), 
     which cover all purchases of goods and services by the 
     Department of Defense under so-called ``multiple award task 
     order and delivery order contracts'' entered into or 
     administered by any other agency.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Supervision of defense acquisition university structure by 
         Under Secretary of Defense for Acquisition and Technology 
         (sec. 815)
       The Senate amendment contained a provision (sec. 807) that 
     would specify that the responsibility for the establishment 
     of policy and requirements for educational programs of the 
     defense acquisition university be vested in the Under 
     Secretary of Defense for Acquisition and Technology.
       The House bill contained no similar provision.
       The House recedes.
     Pilot programs for testing program manager performance of 
         product support oversight responsibilities for life cycle 
         of acquisition programs (sec. 816)
       The Senate amendment contained a provision (sec. 810) that 
     would require the Secretary of Defense to designate 10 
     programs for which the program manager will be made 
     responsible for the life cycle cost issues through the life 
     of the program. The Secretary would be required to report, no 
     later than February 1, 1999, to the congressional defense 
     committees on the 10 programs and to include any policy, 
     regulatory, organizational, or legislative changes that would 
     be required to fully implement this new approach to life 
     cycle cost management.
       The House bill contained no similar provision.
       The House recedes.
       The conferees direct that the Secretary of Defense include 
     in the report to the Congress on the pilot program candidates 
     a discussion of the appropriate point in the acquisition 
     cycle for life cycle cost management to transition from the 
     program manager to the logistics organizations of the 
     services.
     Scope of protection of certain information from disclosure 
         (sec. 817)
       The Senate amendment contained a provision (sec. 811) that 
     would amend section 2371 of title 10, United States Code, to 
     clarify that certain information submitted by outside parties 
     in cooperative agreements for basic, applied, and advanced 
     research are protected from disclosure under section 552 of 
     title 5, United States Code.
       The House bill contained no similar provision.

[[Page H8399]]

       The House recedes.
     Plan for rapid transition from completion of small business 
         innovative research into defense acquisition programs 
         (sec. 818)
       The Senate amendment contained a provision (sec. 812) that 
     would require the Secretary of Defense to develop a plan for 
     facilitating a rapid transition for successfully completed 
     research under the Small Business Innovative Research (SBIR) 
     program into defense acquisition programs.
       The House bill contained no similar provision.
       The House recedes with an amendment that would clarify the 
     elements of the plan and the procedures for preparing and 
     transmitting the plan to the Congress.
     Five-year authority for the Secretary of the Navy to exchange 
         certain items (sec. 819)
       The Senate amendment contained a provision (sec. 815) that 
     would authorize the Secretary of the Navy to enter into a 
     barter agreement during fiscal years 1999 through 2003 to 
     exchange vehicles for repair and remanufacture of ribbon 
     bridges for the Marine Corps.
       The House bill contained no similar provision.
       The House recedes.
     Permanent authority for use of major test range and test 
         facility installations by commercial entities (sec. 820)
       The Senate amendment contained a provision (sec. 217) that 
     would amend section 2681 of title 10, United States Code, to 
     make the temporary authority to permit commercial use of test 
     and evaluation centers permanent.
       The House bill contained no similar provision.
       The House recedes.
     Inventory exchange authorized for certain fuel delivery 
         contract (sec. 821)
       The Senate amendment contained a provision (sec. 817) that 
     would require the Secretary of Defense to submit to Congress 
     no later than December 1, 1998 a report recommending 
     alternative means for a small and disadvantaged business that 
     delivers by barge to Defense Energy Supply Point-Anchorage 
     under a contract with the Defense Energy Supply Center to 
     fulfill its contractual obligations and not lose its small 
     and disadvantaged business status when ice conditions in the 
     Cook Inlet threaten the physical delivery of such fuel. The 
     provision would also provide that such small and 
     disadvantaged business could not lose its small and 
     disadvantaged business status through February 1999 if ice 
     conditions in the Cook Inlet prevent deliveries of bulk fuel 
     and the Secretary of Defense determines that effects of such 
     inability to deliver would result in an inequity to the 
     supplier.
       The House bill contained no similar provision.
       The House recedes with an amendment that would eliminate 
     the requirement for a report from the Secretary of Defense 
     and clarify that the provision would in no case authorize a 
     barrel-for-barrel exchanges totaling more than 15 percent of 
     the total amount of bulk fuel under a contract. The amendment 
     would also clarify that the authority under the section does 
     not affect the requirement that a contractor otherwise 
     fulfill its contractual obligations.

                   Legislative Provisions Not Adopted

     Study on increase in micro-purchase threshold
       The House bill contained a provision (sec. 805) that would 
     require the Comptroller General to conduct a study to assess 
     the impact of the current micro-purchase program and the 
     advisability of increasing the micro-purchase threshold to 
     $10,000 under section 32 of the Office of Federal 
     Procurement Policy Act.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees believe that a thorough analysis of any 
     proposal to raise the micropurchase threshold, including the 
     impact on small business participation in contracting, must 
     be provided to the Congress by the Department of Defense 
     before such a change can be considered.
     Repeal of requirement for Director of Acquisition Education, 
         Training, and Career Development to be within the Office 
         of the Under Secretary of Defense for Acquisition and 
         Technology
       The Senate amendment contained a provision (sec. 808) that 
     would remove the requirement that the Director of Acquisition 
     Education, Training, and Career Development be appointed 
     within the Office of the Under Secretary of Defense for 
     Acquisition and Technology.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees believe that the issue of the status of the 
     director of acquisition education, training, and career 
     development should be deferred until the Department of 
     Defense has clarified the future role of the Office of the 
     Under Secretary of Acquisition and Technology in the planning 
     and execution of higher education for acquisition 
     professionals in the Department of Defense.

      Title IX--Department of Defense Organization and Management

                     Legislative Provisions Adopted

      Subtitle A--Department of Defense Officers and Organization

     Reduction in number of Assistant Secretary of Defense 
         positions (sec. 901)
       The Senate amendment contained a provision (sec. 901) that 
     would codify the reductions in the number of assistant 
     secretaries of defense announced by the Secretary of Defense 
     as part of the Defense Reform Initiative. Specifically, the 
     recommended provision would reduce the number of assistant 
     secretaries of defense from ten to nine.
       The House bill contained no similar provision.
       The House recedes.
     Repeal of statutory requirement for position of Assistant 
         Secretary of Defense for Command, Control, Communications 
         and Intelligence (sec. 902)
       The Senate amendment contained a provision (sec. 902) that 
     would rename the Assistant Secretary of Defense for Command, 
     Control, Communications, and Intelligence (ASD-C3I) to the 
     Assistant Secretary of Defense for Space and Information 
     Superiority, and change the statutorily designated duties 
     associated with this position.
       The House bill contained no similar provision.
       The House recedes with an amendment that would repeal 
     section 138(b)(3) of title 10, United States Code.
       The Secretary of Defense recently announced a number of 
     organizational changes to the Office of the Secretary of 
     Defense pursuant to the Defense Reform Initiative. Among 
     these changes is a significant modification of the office of 
     the ASD-C3I. As a result, the current title no longer 
     describes the full range of responsibilities of this office, 
     nor adequately identifies its functional priorities. The 
     conferees endorse the new title ``Assistant Secretary of 
     Defense for Space and Information Superiority''.
       The conferees continue to support a ``single focal point 
     for space'' in the Department of Defense, and believe that 
     there are synergies to be gained by linking this function 
     with the Department's information superiority activities. The 
     conferees note that, although there is a significant degree 
     of overlap between ``information superiority'' and ``space'', 
     these two functional areas also have many unique aspects that 
     deserve significant focused attention. Therefore, the 
     conferees endorse the Secretary's decision to include the 
     term ''space'' in the revised title of this important 
     position.
       The conferees note that the Assistant Secretary for Space 
     and Information Superiority will be responsible for some of 
     the most critical issues facing the Department of Defense, 
     including space policy, information assurance, information 
     operations, intelligence policy, command, control, 
     communications, surveillance, reconnaissance, the ``year 
     2000'' problem, and electromagnetic spectrum issues. The 
     conferees believe that one of the most significant challenges 
     facing the Assistant Secretary will be the integration and 
     mutual leveraging of the various elements that he will 
     supervise.
     Independent task force on transformation and Department of 
         Defense organization (sec. 903)
       The House bill contained a provision (sec. 905) that would 
     require the Secretary of Defense to create a task force of 
     the Defense Science Board for the purpose of determining the 
     appropriate organization of the Department of Defense in 
     light of the ongoing transformation in the conduct of war. 
     The task force would be established not later than November 
     1, 1998 and the Secretary should transmit the findings of the 
     task force along with recommendations and comments to the 
     Congress by March 1, 1999.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Authority to expand the National Defense University (sec. 
         904)
       The Senate amendment contained a provision (sec. 903) that 
     would permit the Secretary of Defense to designate, as he 
     considers appropriate, educational institutions of the 
     Department of Defense as institutions of the National 
     Defense University.
       The House bill contained no similar provision.
       The House recedes.
     Center for Hemispheric Defense Studies (sec. 905)
       The Senate amendment contained a provision (sec. 909) that 
     would authorize funds available within the Latin American 
     cooperation authority be used for the operation of the Center 
     for Hemispheric Defense Studies.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Restructuring of administration of Fisher Houses (sec. 906)
       The House bill contained a provision (sec. 308) that would 
     authorize appropriations from the Fisher House Trust Funds 
     for use in the operation and maintenance of the Fisher Houses 
     of the Army, Navy, and Air Force.
       The Senate amendment contained a provision (sec. 907) that 
     would repeal section 2221 of title 10, United States Code, 
     and direct the secretaries of the military departments to 
     establish a nonappropriated fund in each department as the 
     single source of funding to operate, maintain, and improve 
     the Fisher Houses and Fisher Suites, and to close each Fisher 
     House Trust Fund and transfer the amounts in the Fund to the 
     respective nonappropriated fund.

[[Page H8400]]

       The House recedes with a clarifying amendment.
     Management reform for research, development, test and 
         evaluation activities (sec. 907)
       The Senate amendment contained a provision (sec. 906) that 
     would require the Department of Defense to conduct a cross-
     service analysis and a plan for restructuring and 
     revitalization of the Department of Defense laboratories and 
     test and evaluation (T&E) centers. The provision would also 
     require that the Department develop a plan and schedule for 
     establishing a cost-based management information system for 
     identifying and comparing costs among the services' labs and 
     T&E centers.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Department to analyze opportunities to improve efficiency and 
     reduce duplication by designating responsibilities by lead 
     agencies or executive agent, by area or function, or by other 
     streamlining initiatives. The amendment would also strike 
     sections (2)(D) and (2)(E) of the Senate provision. The 
     conferees agree that the Department should explore options 
     for an alternative management structure for T&E. The 
     conferees agree that the lessons learned in personnel 
     demonstration projects and pilot projects should be 
     considered in any plan to restructure or reengineer the 
     laboratories and test centers.

         Subtitle B--Department of Defense Financial Management

     Improved accounting for defense contract services (sec. 911)
       The House bill contained a provision (sec. 906) that would 
     require the Department of Defense to make numerous changes to 
     the way they request funds for advisory and assistance 
     services. The provision would require the Comptroller of the 
     Department of Defense to conduct an assessment of the total 
     non-Federal effort that resulted from the performance of all 
     contracts for such services during the previous, current and 
     following fiscal year. The provision would also prohibit the 
     Department from classifying more than 15 percent of its 
     contractual services in a miscellaneous budget category but 
     would allow the Department to report 30 percent in its fiscal 
     year 2000 budget as miscellaneous. In addition, the provision 
     would codify the definition of advisory and assistance 
     services to include; management and professional support 
     services; studies, analyses, and evaluations; and, 
     engineering and technical services. Finally, the provision 
     would reduce the amount of funding that was budgeted for 
     these services by $500.0 million.
       The Senate had no similar provision.
       The Senate recedes with an amendment that would strike the 
     requirement for the Comptroller of the Department of Defense 
     to conduct an assessment of the total non-Federal effort that 
     resulted from the performance of all contracts for such 
     services during the previous fiscal year, and the total non-
     Federal effort that will result from the performance of all 
     contracts for such services during the current fiscal year. 
     The amendment would codify the definition of advisory and 
     assistance services to that currently contained in the 
     Department of Defense's directive, and would reduce the cut 
     to these services to $240.0 million.
     Report on Department of Defense financial management 
         improvement plan (sec. 912)
       The Senate amendment contained a provision (sec. 1022) that 
     would require the Comptroller General to report to the 
     congressional defense committees on the Department's 
     financial management improvement plan required by section 
     2222 of title 10, United States Code.
       The House bill contained no similar provision.
       The House recedes.
     Study of feasibility of performance of Department of Defense 
         finance and accounting functions by private sector 
         sources or other Federal sources (sec. 913)
       The Senate amendment contained a provision (sec. 1023) that 
     would require the Department of Defense to study the finance 
     and accounting functions within the Department to assess the 
     potential for consolidation and possible competition of these 
     functions.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Limitation on reorganization and consolidation of operating 
         locations of the Defense Finance and Accounting Service 
         (sec. 914)
       The Senate amendment contained a provision (sec. 1024) that 
     would require the Secretary of Defense to study and define 
     future workload requirements for each of the finance and 
     accounting operating locations (OPLOCs) of the Defense 
     Finance and Accounting Service, and determine whether excess 
     capacity exists. The provision would also require that the 
     study be submitted to the congressional defense authorization 
     committees by December 15, 1998, and that no OPLOCs could be 
     closed until six months after the submission of this study.
       The House bill contained no similar provision.
       The House recedes with an amendment that would change the 
     date for the submission of the study to the Congress to 
     January 15, 1999 and delay the closing of any OPLOCs until 90 
     days after the submission of the study.
     Annual report on resources allocated to support and mission 
         activities (sec. 915)
       The House bill contained a provision (sec. 1031) that would 
     require the Secretary of Defense to provide in his annual 
     report to the Congress a description of the personnel and 
     budetary resources dedicated to support activities as 
     compared to mission-related activities. This provision would 
     also require the same information for the prior five years. 
     The provision would also require a listing of the number of 
     military and civilian personnel assigned to headquarters 
     activities as a percentage of military end-strength for the 
     past 10 years.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     headquarters numbers to be provided for the past five years, 
     and would require the Secretary to submit to the Congress the 
     definition of ``support'' and ``mission'' activities that the 
     Secretary will use in the developement of the report.

             Subtitle C--Joint Warfighting Experimentation

     Findings concerning joint warfighting experimentation (sec. 
         921)
       The Senate amendment contained a provision (sec. 1201) that 
     would make congressional findings that provide the historical 
     and policy basis for the need to conduct joint warfighting 
     experimentation.
       The House bill contained no similar provision.
       The House recedes with an amendment that would abbreviate 
     the description of the basis for the need to conduct joint 
     warfighting experimentation.
     Sense of Congress concerning joint warfighting 
         experimentation (sec. 922)
       The Senate amendment contained a provision (sec. 1202) that 
     would express a sense of the Congress on the importance of 
     designating a commander with the mission for joint 
     warfighting experimentation, a sense of the Congress that 
     such commander should be provided with adequate resources and 
     authority to effectively conduct such experimentation, and a 
     sense of the Congress that the Congress should review the 
     process of military transformation, as evidenced by the 
     results of such experimentation, and if the process is 
     determined inadequate, to consider legislation that would 
     ensure the effective conduct of joint warfighting 
     experimentation.
       The House bill contained no similar provision.
       The House recedes with an amendment that would modify the 
     sense of the Congress related to the commander's authority by 
     abbreviating the enumeration of such authorities.
     Reports on joint warfighting experimentation (sec. 923)
       The Senate amendment contained a provision (sec. 1203) that 
     would require the commander designated to conduct joint 
     warfighting experimentation to submit comprehensive initial 
     and annual reports, through the Secretary of Defense to 
     Congress on such experimentation.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     designated commander to report on changes in his authority to 
     develop or acquire equipment, supplies or services that 
     relate directly to joint warfighting experimentation.

                       Subtitle D--Other Matters

     Further reductions in defense acquisition and support 
         workforce (sec. 931)
       The House bill contained a provision (sec. 901) that would 
     reduce the defense acquisition workforce, as defined in 
     section 912(a) of the National Defense Authorization Act for 
     Fiscal Year 1998 (Public Law 105-85), by a total of 70,000 
     over three years.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment.
       The amendment would limit the reduction to 25,000 personnel 
     positions in fiscal year 1999 and would authorize the 
     Secretary of Defense to waive up to 12,500 upon a 
     certification by the Secretary that reducing a greater number 
     of such positions would be inconsistent with the cost-
     effective management of the defense acquisition system to 
     obtain best value equipment and with ensuring military 
     readiness.
       The reduction would apply to positions in the defense 
     acquisition and support workforce and limit the reduction of 
     core acquisition workforce positions to a level proportional 
     with other occupational elements in the larger defense 
     acquisition and support workforce.
     Limitation on operation and support funds for the Office of 
         the Secretary of Defense (sec. 932)
       The House bill contained a provision (sec. 902) that would 
     limit the obligation of funds for the Office of the Secretary 
     of Defense to 90 percent of the appropriated level for that 
     office until such time as the Secretary submits the reports 
     that were required by section 904(b) of the National Defense 
     Authorization Act for Fiscal Year 1997, and sections 911(b) 
     and 911(c) of the National Defense Authorization Act for 
     Fiscal Year 1998.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Clarification and simplification of responsibilities of 
         inspectors general regarding whistleblower protections 
         (sec. 933)
       The House bill contained a provision (sec. 908) that would 
     modify certain requirements

[[Page H8401]]

     relating to inspector general investigations of reprisal 
     complaints.
       The Senate amendment contained a provision (sec. 1053) that 
     would modify the same requirements in a different manner, and 
     amend certain other requirements imposed upon inspector 
     general investigations of such complaints.
       The House recedes with an amendment.
     Repeal of requirement relating to assignment of tactical 
         airlift mission to reserve components (sec. 934)
       The House bill contained a provision (sec. 907) that would 
     repeal section 1438 of the National Defense Authorization Act 
     for Fiscal Year 1991 (Public Law 101-510), which requires the 
     Department of Defense to shift the tactical airlift mission 
     to the reserves, unless the Secretary of Defense waives this 
     requirement on annual basis.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Consultation with Marine Corps on major decisions directly 
         concerning Marine Corps aviation (sec. 935)
       The House bill contained a provision (sec. 909) that would 
     direct the Secretary of the Navy to require that the views of 
     the Commandant of the Marine Corps be obtained before a 
     milestone decision or other major decision is made by an 
     element of the Department of the Navy outside the Marine 
     Corps on a matter that concerns Marine Corps aviation systems 
     acquisition or support.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would make the 
     provision more generic.

                   Legislative Provisions Not Adopted

     Revision to defense directive relating to management 
         headquarters and headquarters support activities
       The House bill contained a provision (sec. 903) that would 
     require the Department of Defense to implement a revised 
     directive, to be applied uniformly throughout the Department, 
     that accounts for management headquarters personnel by 
     function rather than organization.
       The Senate amendment contained no similar provision.
       The House recedes.
     Report on individuals employed in private sector who provide 
         services under contract for the Department of Defense
       The House bill contained a provision (sec. 910) that would 
     require the Secretary of Defense to provide an annual report 
     to the Congress that would outline the quantity, costs, and 
     value of services that are provided to the Department of 
     Defense by non-Federal workers.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees understand that significant cost would be 
     incurred by the Department in establishing a new system to 
     annually track the quantity and value of non-Federal contract 
     services. Therefore, the conferees direct the Department, to 
     the extent practicable, using only existing personnel and 
     contracting systems, to report to the Committee on Armed 
     Services of the Senate and the National Security Committee of 
     the House of Representatives by April 15, 1998, the number of 
     work year equivalents performed by individuals employed by 
     non-Federal entities providing services to the Department, 
     categorized by Federal supply class code, the appropriation 
     from which the contract was funded, and the major 
     organizational element procuring the services.
     Reduction in Department of Defense headquarters staff
        The Senate amendment contained a provision (sec. 904) that 
     would codify the reductions in the Department of Defense 
     headquarters staff announced by the Secretary of Defense as 
     part of the Defense Reform Initiative. Specifically, the 
     recommended provision would require the Office of the 
     Secretary of Defense to reduce by 33 percent; defense 
     agencies to reduce by 21 percent; Department of Defense field 
     activities to reduce by 36 percent; the Joint Staff to reduce 
     by 29 percent; the headquarters of the combatant commands and 
     associated activities to reduce by seven percent; and other 
     headquarters elements, including the headquarters of the 
     military departments and their major commands and associated 
     activities to reduce by 29 percent. The recommended provision 
     would require the Secretary of Defense to submit, not later 
     than March 1, 1999, a plan to implement the directed 
     personnel reductions.
       The House bill contained no similar provision.
       The Senate recedes.
     Permanent requirement for quadrennial defense review
       The Senate amendment contained a provision (sec. 905) that 
     would make permanent the requirement for a Quadrennial 
     Defense Review and the National Defense Panel.
       The House bill contained no similar provision.
       The Senate recedes.
     To redesignate the position of Director of Defense Research 
         and Engineering, abolish the position of Assistant to the 
         Secretary of Defense for Nuclear and Chemical and 
         Biological Defense Programs, and transfer the duties of 
         the latter position to the former position
       The Senate amendment contained a provision (sec. 908) that 
     would redesignate the position of Director of Defense 
     Research and Engineering, abolish the position of Assistant 
     to the Secretary of Defense for Nuclear and Chemical and 
     Biological Defense and transfer certain duties to the new 
     organization.
       The House bill contained no similar provision.
       The Senate recedes.
       The Nuclear Weapons Council is a statutorily mandated body 
     consisting of Department of Defense and Department of Energy 
     members. The Council has specific responsibilities to ensure 
     the safety and reliability of the Nation's nuclear weapons 
     stockpile. The Assistant to the Secretary of Defense for 
     Nuclear and Chemical and Biological Defense Programs is the 
     primary Department of Defense focal point for nuclear weapons 
     matters, and reports directly to the Secretary of Defense. 
     This position also serves as the executive director of the 
     Nuclear Weapons Council. Unfortunately, this important 
     position has been vacant for many months. The conferees are 
     concerned that, as a result of this position being vacant for 
     an extended period of time, nuclear weapons matters and 
     issues associated with maintaining the U.S. nuclear deterrent 
     are not receiving the attention they deserve. The conferees 
     urge the President to submit to the Senate, for advice and 
     consent, a nomination as soon as possible.
     Military aviation accident investigations
       The Senate amendment contained a provision (sec. 910) that 
     would require the Secretary of Defense to establish a task 
     force to review the procedures used by the Department of 
     Defense to conduct military aviation accident investigations 
     and to identify mechanisms for improving such investigations. 
     The provision would also require the Secretary of Defense to 
     prescribe uniform regulations that would provide for the 
     release of reports on the accident investigation to the 
     family members of those involved in the accident.
       The House bill contained no similar provision.
       The Senate recedes.

                      Title X--General Provisions

                     Legislative Provisions Adopted

                     Subtitle A--Financial Matters

     Transfer authority (sec. 1001)
       The House bill contained a provision (sec. 1001) that would 
     provide the authorization for reprogramming involving the 
     transfer of authorization between the amounts authorized in 
     Division A of the Act.
       The Senate amendment contained an identical provision.
       The conference agreement includes this provision.
     Incorporation of classified annex (sec. 1002)
       The House bill contained a provision (sec. 1002) that would 
     incorporate the classified annex prepared by the Committee on 
     National Security into this Act.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment that would 
     provide that the classified annex prepared by the committee 
     of conference be incorporated into this Act.
     Authorization of prior emergency supplemental appropriations 
         for fiscal year 1998 (sec. 1003)
        The Senate amendment contained a provision (sec. 1003) 
     that would authorize the emergency supplemental 
     appropriations enacted in the 1998 Supplemental 
     Appropriations and Rescissions Act (Public Law 105-174). This 
     Act provided funding for fiscal year 1998 expenses related to 
     military operations in Southwest Asia, Bosnia, and for 
     natural disasters.
        The House bill contained no similar provision.
        The House recedes.
     Authorization of appropriations for Bosnia peacekeeping 
         operations for fiscal year 1999 (sec. 1004)
       The Senate amendment contained a provision (sec. 1002) that 
     would provide emergency authorization of $1.9 billion to fund 
     U.S. participation in Bosnia peacekeeping operations for 
     fiscal year 1999.
       The House bill contained a provision (sec. 1201) that would 
     not authorize additional funding for U.S. participation in 
     Bosnia peacekeeping operations, and would limit the Secretary 
     of Defense from expending funds appropriated to the 
     Department of Defense for fiscal year 1999 in excess of $1.9 
     billion. The provision would provide for an emergency 
     exception of not more than $100.0 million for the purpose of 
     safeguarding U.S. Forces in the event of hostilities, and 
     would require the Secretary of Defense to submit a report to 
     the Congress by April 1, 1999 on the need for any additional 
     funds required for Bosnia operations in fiscal year 1999.
       The conferees agree to a provision that would provide 
     emergency authorization of $1.9 billion to fund operations in 
     Bosnia for fiscal year 1999, but would limit funding to the 
     amounts authorized in this section. The President may waive 
     this limitation after submitting to the Congress a 
     certification that the waiver is based on the national 
     interest and will not adversely affect the readiness of 
     U.S. Military Forces. In conjunction with the 
     certification, the President must submit a request for 
     supplemental appropriations to fund the increased costs 
     and a report. The report submitted with the certification 
     must contain the reasons for the waiver, the specific 
     reasons the additional funds are required, and a 
     discussion of the readiness impact of the continued 
     deployment of the U.S. Military Forces in Bosnia

[[Page H8402]]

     or supporting Bosnia peacekeeping operations.
     Partnership for Peace information system management (sec. 
         1005)
       The budget request included $2.0 million for the 
     Partnership for Peace Information Management System (PIMS) 
     (PE 1001017D8Z).
       The Senate amendment contained a provision (sec. 1004) that 
     would make $5.0 million available in defense-wide activities 
     for the Partnership for Peace Information Management System 
     (PIMS) in the following amounts: $3.0 million in section 301 
     and $2.0 million in section 201(4) of this Act.
        The House bill contained no similar provision, but would 
     recommend the budget request for operation and maintenance 
     and would recommend an increase of $4.0 million to the budget 
     request for PIMS research and development activities for the 
     development of an international medical program global 
     satellite system. Additionally, the House bill would require 
     that no funds be made available for this activity until the 
     Secretary of Defense submits a report to the congressional 
     defense committees on the impact of the international medical 
     program global satellite system on the Department of Defense 
     (DOD) radio frequency spectrum.
        The conferees agree to a provision that would make $5.0 
     million available in defense-wide activities for PIMS in 
     defense-wide operation and maintenance and research and 
     development activities. In addition, the conferees agree to 
     authorize a $4.0 million increase for PIMS research and 
     development activities for the development of an 
     international medical global satellite system. The conferees 
     agree with the recommendation of the House (H. Rept. 105-532) 
     regarding the requirement of the Secretary of Defense to 
     submit a report on the impact of this system on the DOD 
     frequency spectrum prior to obligation of funds. In addition, 
     the report of the Secretary of Defense should include a plan 
     on how the satellite-based medical telecommunications 
     distribution and delivery network would be integrated into 
     PIMS, the cost of integrating this technology into PIMS, the 
     primary focus and content of the program and the contribution 
     to the overall mission of PIMS, and information on the need 
     for bilateral agreements.
        Lastly, the conferees direct that all applicable 
     competitive procedures be used in the award of contracts, 
     grants, and other agreements under this program and that the 
     Department require significant cost-sharing from all non-
     federal participants.
     United States contribution to NATO common-funded budgets in 
         fiscal year 1999 (sec. 1006)
       The resolution of ratification to the Protocols to the 
     North Atlantic Treaty of 1949 on Accession of Poland, 
     Hungary, and the Czech Republic (Treaty Document 105-36) 
     agreed to by the Senate on April 30, 1998 included a 
     condition that requires authorization of funds for the U.S. 
     contribution to the common-funded budget of the North 
     Atlantic Treaty Organization (NATO) beginning in fiscal year 
     1999 if the amounts exceed the totals expended in fiscal year 
     1998.
       The Senate amendment contained a provision (sec. 1006) that 
     would authorize funds for the U.S. contribution to NATO 
     common-funded budgets and the use of unexpended balances from 
     prior years.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Liquidity of working-capital funds (sec. 1007)
        The Senate amendment contained a provision (sec. 341) that 
     would ensure the liquidity of the working-capital funds 
     (WCFs) during fiscal year 1999 and would provide a mechanism 
     to allow the Department of Defense to recover operating 
     losses during the year of execution. The provision would also 
     place limitations on the amounts of advance billing within 
     the Department.
       The House bill contained no similar provision.
       The House recedes with an amendment that would not specify 
     the corrective actions the Secretary of Defense may take to 
     eliminate cash balance shortfalls in the WCFs and adjusts the 
     limitations on advance billings.
     Termination of authority to manage working-capital funds and 
         certain activities through the Defense Business Operating 
         Fund (sec. 1008)
       The Senate amendment contained a provision (sec. 342) that 
     would transfer the relevant statutory authorities and 
     reporting requirements to the Department of Defense's 
     working-capital fund operations (section 2208 of title 10, 
     United States Code) and would repeal the statutory authority 
     for the Defense Business Operations Fund.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Clarification of authority to retain recovered costs of 
         disposals in working-capital funds (sec. 1009)
       The Senate amendment contained a provision (sec. 343) that 
     would clarify the authority of the Defense Reutilization and 
     Marketing Service to retain, from proceeds received from 
     sales of surplus supplies, materials, or equipment, an amount 
     equal to the costs incurred in the sale, reutilization, or 
     disposal of such items.
       The House bill contained no similar provision.
       The House recedes.
     Crediting of amounts recovered from third parties for loss or 
         damage to personal property shipped or stored at 
         government expense (sec. 1010)
        The Senate amendment contained a provision (sec. 1054) 
     that would allow funds recovered from third parties in 
     relation to household good claims to be deposited into the 
     current appropriations for payment of such claims.
        The House bill contained no similar provision.
        The House recedes with a technical amendment.

                Subtitle B--Naval Vessels and Shipyards

     Revision to requirement for continued listing of two Iowa-
         class battleships on the Naval Vessel Register (sec. 
         1011)
        The House bill contained a provision (sec. 1011) that 
     would direct the Secretary of the Navy to list U.S.S. Iowa 
     (BB-61) and U.S.S. Wisconsin (BB-64) as the two Iowa class 
     battleships maintained on the Naval Vessel Register, in 
     accordance with section 1011 of the National Defense 
     Authorization Act for Fiscal Year 1996
        The Senate amendment contained a similar provision (sec. 
     1011).
        The Senate recedes.
     Transfer of U.S.S. New Jersey (sec. 1012)
        The House bill contained a provision (sec. 1012) that 
     would direct the Navy to strike U.S.S. New Jersey from the 
     Naval Vessel Register and transfer it to a not-for-profit 
     entity that will locate the vessel in the State of New 
     Jersey.
        The Senate amendment contained no similar provision.
        The Senate recedes.
     Homeporting of the U.S.S. Iowa in San Francisco, California 
         (sec. 1013)
        The Senate amendment contained a provision (sec. 1016) 
     that would express the sense of the Congress that the U.S.S. 
     Iowa should be homeported in San Francisco, California.
        The House bill contained no similar provision.
        The House recedes.
     Sense of Congress concerning the naming of an LPD-17 vessel 
         (sec. 1014)
        The Senate amendment contained a provision (sec. 1014) 
     that would express the sense of the Congress that an LPD-17 
     class vessel should be named the U.S.S. Clifton B. Cates, in 
     honor of the 19th Commandant of the Marine Corps.
        The House bill contained no similar provision.
        The House recedes with a clarifying amendment.
     Reports on naval surface fire-support capabilities (sec. 
         1015)
        The Senate amendment contained a provision (sec. 1027) 
     that would direct the Secretary of the Navy to report by 
     March 31, 1999, to the Committee on Armed Services of the 
     Senate and the National Security Committee of the House of 
     Representatives on battleship readiness for meeting naval 
     surface fire-support requirements.
        The House bill contained no similar provision.
        The House recedes with a clarifying amendment.
     Long-term charter of three vessels in support of submarine 
         rescue, escort, and towing (sec. 1016)
        The House bill contained a provision (sec. 1013) that 
     would authorize charter of the three vessels in accordance 
     with section 2401 of title 10, United States Code.
        The Senate amendment contained a similar provision (sec. 
     1012) and directed the Department to utilize fully the R/V 
     Gosport and other assets owned and operated by the Navy for 
     secondary services including torpedo retrieval, sonar 
     calibration, and submarine sea trial escort prior to out-
     sourcing for these services.
        The Senate recedes.
        The conferees agree to authorize the Navy to enter into 
     charters through September 30, 2003 in accordance with 
     section 2401 of title 10, United States Code, for the Carolyn 
     Chouest, Kellie Chouest, and Dolores Chouest and direct the 
     Department of the Navy to utilize fully the R/V Gosport and 
     other similar vessels prior to out-sourcing for secondary 
     services described above.
     Transfer of obsolete Army tugboat (sec. 1017)
        The House bill contained a provision (sec. 1014) that 
     would permit the Secretary of the Army to substitute the 
     tugboat Attleboro (LT-1977) for the tugboat Normandy (LT-
     1971) as one of two tugboats authorized to be transferred by 
     the Secretary under section 1023 of the National Defense 
     Authorization Act for Fiscal Year 1998 (Public Law 105-86).
        The Senate amendment contained no similar provision.
        The Senate recedes.

 Subtitle C--Counter Drug Activities and Other Assistance for Civilian 
                            Law Enforcement

        The budget request for drug interdiction and other 
     counter-drug activities of the Department of Defense (DOD) 
     totals $882.8 million. This includes the $727.6 million 
     central transfer account and $155.2 million in the operating 
     budgets of the military services for counter-drug 
     operations.
        However, these numbers do not accurately represent the 
     Department's total commitment to the war on drugs. For 
     example, these numbers do not include a proportionate share 
     of the costs of procuring military systems that are used to 
     support the war on drugs. They also do not capture the

[[Page H8403]]

     personnel costs for the thousands of active duty service 
     members who are engaged in counter-narcotics activities over 
     the course of the fiscal year. Furthermore, the budget does 
     not include all maintenance costs for assets used in counter-
     drug activities, or a proportionate share of base operation 
     support costs for those units performing counter-drug 
     activities. Together, these costs exceed several hundred 
     million dollars each year.
        In addition, these numbers do not reflect the value of the 
     equipment and training that the DOD provides to other nations 
     in support of their counter-narcotics activities pursuant to 
     section 506 of the Foreign Assistance Act. This section 
     provides authorization for up to $75.0 million worth of 
     counter-narcotics support to foreign governments each year. 
     The conferees are concerned that this authority, which was 
     intended to be used to enhance U.S. counter-narcotics support 
     to nations in the source zone, is simply used to offset costs 
     which more appropriately belong in the State Department 
     budgets. The conferees are further concerned that the 
     continued provision of non-excess military equipment to 
     foreign governments may have an adverse impact on U.S. 
     military readiness. The conferees direct the Secretary of 
     Defense to provide the congressional defense committees with 
     a list of those items that are provided pursuant to Section 
     506, together with the Secretary's plans for replacing this 
     equipment.
        Finally, the conferees are concerned that in some cases 
     the Department of Defense may be pressured into dedicating 
     scarce resources within its budget recommendation to the 
     President for the counter-narcotics missions that are the 
     primary responsibility of the Department of State or other 
     Federal agencies. This practice could be detrimental to other 
     high priority military missions, including counter-terrorism 
     and counter-proliferation, in today's resource constrained 
     environment. The conferees believe that the Secretary of 
     Defense and the Chairman of the Joint Chiefs are in the best 
     position to understand all of the national security 
     responsibilities of DOD, and to make a balanced 
     recommendation to the President regarding the manner in which 
     the resources of the Armed Forces should be utilized in such 
     a way as to most effectively carry out those 
     responsibilities.
        The conferees recommend the following authorization for 
     the Department's counter-narcotics activities:


      Drug Interdiction & Counter-drug Activities, Operations and 
                              Maintenance

         (In thousands of dollars; may not add due to rounding)

Fiscal Year 1999 Drug and Counter-drug Request.................$882,831
   Goal 1 (Dependent Demand Reduction)...........................12,830
   Goal 2 (Support to DLEAs).....................................97,384
   Goal 3 (DOD Personnel Demand Reduction).......................72,936
   Goal 4 (Drug Interdiction--TZ/SWB)...........................406,554
   Goal 5 (Supply Reduction)....................................293,127
Increases:
   Caribbean/Eastern Pacific Surface Interdiction.................8,000
   Caper Focus....................................................6,000
   Gulf States Initiative/Regional Counter-drug Training..........7,000
   Multi Jurisdictional Task Force................................1,000
   South West Border Fence........................................3,000
   National Guard State Plans....................................29,000
Reductions:
   JIATF-SOUTH...................................................17,000
   Southern Air Forces Counter-Drug Support.......................4,000
   Mexico GBEGO...................................................4,000
   National Guard Cargo/Mail Inspection Project..................29,000
     Enhanced Transit Zone Interdiction--Caribbean/Eastern Pacific 
         Interdiction Initiative, Caper Focus
        Although the Department of Defense continues to serve as 
     the single lead Federal agency for the detection and 
     monitoring of suspected drug-trafficking activities within 
     the transit zones, the Department's budget in this region has 
     declined dramatically since 1993. This decline is a result of 
     presidential guidance in 1993 that directed a gradual shift 
     in emphasis from the transit zone to source zone counter-drug 
     activities. While the Administration's strategic focus moved 
     to South America, illegal drugs continue to flow through the 
     eastern Pacific Ocean and Caribbean Sea to U.S. markets.
        The conferees encourage the Department to explore new 
     initiatives to enhance current interdiction capabilities so 
     that if Panamanian facilities are no longer available, a 
     viable interdiction program remains. To assist the Department 
     in this effort, the conferees have included a provision that 
     would provide $14.5 million within the counter-narcotics 
     central transfer account for the increased deployment of the 
     Department's Cyclone Class Patrol Coastal Craft (PCs) to the 
     Caribbean and eastern Pacific, and any maintenance or 
     modifications of these craft (such as forward looking infra-
     red devices and combat craft recovery systems) necessary to 
     enhance their interdiction capabilities. Such increased 
     deployment will provide Commander-in-Chief, Southern Command 
     (CINCSOUTH) with a more substantial naval presence in his 
     theater of operations with which to increase surface 
     interdiction efforts of suspected narco-traffickers. The 
     conferees include an additional $8.0 million for the 
     Department's Caribbean efforts in order to help pay for 
     increased deployment. The conferees expect the Department to 
     identify the remaining $6.5 million from within its 
     interdiction budget.
        The conferees direct the Secretary of Defense to provide 
     the Committee on Armed Services of the Senate and the 
     Committee on National Security of the House of 
     Representatives with a report outlining the extent to 
     which the PCs, operating either with or without a 
     mothership, were effective during fiscal year 1999 in the 
     interdiction and deterrence of maritime drug trafficking. 
     This report should also outline the CINCSOUTH's and the 
     CINCSOCOM's recommendation regarding any future deployment 
     of these craft to SOUTHCOM's Area of Responsibility (AOR), 
     and the Secretary of Defense's recommendation as to the 
     appropriate funding mechanism for these future 
     deployments.
      Caper Focus
        The conferees are disturbed by the recent testimony of 
     General Charles E. Wilhelm, Commander-in-Chief, Southern 
     Command (CINCSOUTH), regarding the Department's inability 
     ``to mount effective detection, monitoring and tracking 
     operations in the eastern Pacific, a pipeline which feeds 
     Mexico and ultimately the U.S.'' As a result of competing 
     demands for maritime patrol aircraft, the Secretary of 
     Defense postponed the final phase of Operation Caper Focus, a 
     promising operation targeting multi-nation cargo vessels in 
     the eastern Pacific. During the initial phases of Operation 
     Caper Focus, Joint Interagency Task Force- East (JIATF-E) 
     assets interdicted 27 metric tons of cocaine and gained 
     valuable intelligence on regional trafficking methods. 
     Despite these preliminary results, the Secretary of Defense 
     has not made available the additional air or maritime assets 
     necessary to execute the operation, nor has the Director of 
     JIATF-E transferred assets from the Caribbean.
        The conferees are convinced of the need to take advantage 
     of this opportunity to seize large amounts of cocaine through 
     the continuation of Operation Caper Focus. Therefore, the 
     conferees include a provision that would authorize $10.5 
     million to support this operation. The conferees urge the 
     Secretary of Defense to seek the views of CINCSOUTH in 
     identifying the capabilities needed to determine how these 
     funds should be applied. Finally, the conferees directs that 
     the Secretary of Defense provide the Committee on Armed 
     Services of the Senate and the Committee on National Security 
     of the House of Representatives a report outlining the 
     recommendations of CINCSOUTH and an implementation plan 
     detailing the Department's expanded operational support to 
     Operation Caper Focus no later than January 15, 1999. The 
     conferees include an additional $6.0 million in order to help 
     pay for this deployment. The conferees expect the Department 
     to provide the remaining $4.5 million from within its 
     interdiction budget.
      Gulf States Counter-drug Initiative
        The conferees understand the Gulf States Counter-drug 
     Initiative has grown beyond its original counter-drug mission 
     and now performs important work for other high priority 
     missions of the Department of Defense, including counter-
     terrorism. Therefore, the conferees support the transfer of 
     this activity from the Department's Counter-drug account to 
     the C3I Joint Military Intelligence Program in accordance 
     with its increased mission, and recommend an additional $6.0 
     million for its counter narcotics activities. The conferees 
     expects that the Department will fund GSCI's operations 
     through the Joint Military Intelligence Program budget in the 
     future. The conferees authorize a further $1.0 million for 
     the Gulf States Counter-drug Initiative Regional Counter-drug 
     Training Academy.
      Multi-Jurisdictional Task Force
        The budget request included $2.0 million for the Multi-
     Jurisdictional Counter-drug Task Force. The conferees 
     understand that additional funds are needed to improve the 
     Multi-Jurisdictional Counter-drug Task Force's training 
     program by increasing the number of conventional courses, 
     distance learning projects and state narcotics conventions 
     for law enforcement officers. Therefore, the conferees 
     recommend $3.0 million, an increase of $1.0 million for the 
     Multi-Jurisdictional Counter-drug Task Force.
      National Guard State Plans
        The budget request included $29.0 million for National 
     Guard Cargo/Mail Inspection Support and $118.6 million for 
     National Guard General Support. The conferees note that 
     beginning in fiscal year 1998, funds for cargo/mail 
     inspection support were transferred from the general support 
     account due to its high priority at the national level. While 
     the conferees continue to endorse this program as a means to 
     deny illegal drugs from entering the United States, the 
     conferees believe that this program should compete with other 
     high priority National Guard counter-narcotics operations. 
     Therefore, the conferees recommend $147.6 million for 
     National Guard General Support, an increase of $29.0 million, 
     and a corresponding decrease of $29.0 million for National 
     Guard Cargo/Mail Inspection Support.
      JIATF-SOUTH
        The conferees continue to be concerned with the impact 
     that our military withdrawal from Panama will have upon U.S. 
     drug interdiction capabilities. The Panamanian facilities 
     provide a unique location

[[Page H8404]]

     from which to deploy U.S. counter-narcotics assets. The loss 
     of these facilities will have a significant impact upon the 
     U.S. ability to maintain the current level of drug 
     interdiction efforts. Since the United States and the 
     Government of Panama have been unable to reach an agreement 
     regarding the continued deployment of U.S. military personnel 
     to Panama after the remaining facilities are turned over at 
     the end of 1999, the conferees believe it is imprudent to 
     significantly expand and facilitize JIATF-South as 
     recommended in the budget request. Until such an agreement is 
     signed, the conferees believe that JIATF-South should operate 
     with the same resources that it received for fiscal year 
     1998. Therefore, the conferees recommend a reduction of $17.0 
     million for this program.
     Southern Air Forces Counter-Drug Support
       The budget request included $24.4 million for Southern Air 
     Forces (SOUTHAF) Counter-Drug Support, including $19.0 
     million for the operation and maintenance of ground mobile 
     radars (GMRs) within the U.S. Southern Command area of 
     operations. The conferees recommend $20.4 million for SOUTHAF 
     Counter-Drug Support, a decrease of $4.0 million.
     Ground-based end game operations-Mexico
       The budget request included $16.0 million for the counter-
     narcotics training of the Armed Forces of Mexico; a 
     significant increase from previous years. The conferees 
     recommend $12.0 for this program; a decrease of $4.0 million.
     Support for counter-drug activities of Peru and Colombia
       Section 1033 of the National Defense Authorization Act for 
     Fiscal Year 1998 (Public Law 105-85) authorized the Secretary 
     of Defense to provide support for the counter-drug activities 
     of the Governments of Peru and Colombia. The conferees wish 
     to clarify that the intent of Congress was to provide 
     nonlethal assistance, including unarmed riverine patrol 
     boats, to establish a riverine interdiction program in Peru 
     and Colombia. The conferees note that other programs exist in 
     which the Government of Peru can acquire the weaponry 
     necessary to arm these vessels.

                     Legislative Provisions Adopted

     Program authority for Department of Defense support to other 
         agencies for counter-drug activities (sec. 1021)
       The House bill contained a provision (sec. 1021) that would 
     extend section 1004 of the National Defense Authorization Act 
     for Fiscal Year 1991 through fiscal year 2000. The provision 
     would also allow the Department of Defense to use counter-
     drug funds for any major renovation or modification of a 
     Department of Defense facility being used for counter-
     narcotics purposes. Prior to using this authority for any 
     such projects that will exceed $500,000, the Department must 
     notify the congressional defense committees.
       The Senate amendment contained a similar provision.
       The Senate recedes with an amendment that would extend 
     section 1004 of the National Defense Authorization Act for 
     Fiscal Year 1991 through fiscal year 2002.
     Department of Defense support of National Guard drug 
         interdiction and counter-drug activities (sec. 1022)
       The Senate amendment contained a provision (sec. 334) that 
     would make certain changes to the National Guard's authority 
     to perform counter-narcotics activities. These changes would 
     include the authorization to make minor purchases using 
     National Guard counter-narcotics funding. This provision 
     would also allow the Guard to provide expanded support to 
     youth outreach programs. Finally, the provision would 
     authorize the use of funds appropriated for counter- 
     narcotics activities to be used for a member of the Guard's 
     annual training as long as these funds were reimbursed with 
     funds that were appropriated for training.
       The House bill contained no similar provision.
       The House recedes with an amendment that would limit the 
     size of purchases to $5,000 per purchase order unless 
     approval to exceed that amount is provided in advance by the 
     Secretary of Defense. The amendment would further require 
     that counter-narcotics activities not degrade military 
     readiness, or increase the cost of training. The amendment 
     would also require that in the case of unit participation in 
     counter-narcotic activities, the missions will support valid 
     unit training requirements. Finally, the amendment would 
     clarify that the pay and benefits of a member of the Guard 
     who is serving on full time active duty in support of the 
     counter-narcotics activities of the Guard does not receive an 
     amount of pay and benefits during his annual training more 
     than the amount he would be entitled to if he were not 
     performing these counter-narcotics activities.
     Patrol Coastal Craft for drug interdiction by Southern 
         Command (sec. 1023)
       The Senate amendment contained a provision (sec. 331) that 
     would provide $18.5 million within the counter-narcotics 
     central transfer account for the increased deployment of the 
     Department's Patrol Coastal Craft to the Caribbean and 
     eastern Pacific. The Senate amendment also contained a 
     provision (sec. 335) that would express the sense of the 
     Congress that the Secretary of Defense should revise the 
     Global Military Force Policy to treat counter-drug operations 
     as a military operation other than war. Furthermore, the 
     Senate amendment contained a provision (sec. 311) that would 
     require the U.S. Special Operations Command to use the 
     resources that are saved within its operating budget as a 
     result of funding the Patrol Coastal Craft within the 
     counter-narcotics budget for training and related operations 
     associated with its counter-proliferation and counter-
     terrorism missions.
       The House bill contained a provision (sec. 1022) that would 
     provide $24.4 million within the counter-narcotics central 
     transfer account for the continued conduct of Operation Caper 
     Focus.
       The conferees include a single provision that would (1) 
     express the sense of the Congress that the Secretary of 
     Defense should ensure that the international drug 
     interdiction and counter-drug activities of the Department of 
     Defense are accorded adequate resources within the budget 
     allocation of the Department to execute its counter-narcotics 
     mission; (2) provide $10.5 million within the counter- 
     narcotics central transfer account for the continued conduct 
     of Operation Caper Focus; and (3) provide $14.5 million 
     within the counter-narcotics central transfer account for the 
     increased deployment of the Department's Patrol Coastal Craft 
     to the Caribbean and eastern Pacific. The provision would 
     also require that the $4.5 million that the Special 
     Operations Command saved within its operating budget as a 
     result of funding the Patrol Coastal Craft within the 
     counter-narcotics budget be used for training and related 
     operations associated with its counter-proliferation and 
     counter-terrorism missions.

       Subtitle D--Miscellaneous Report Requirements and Repeals

     Repeal of unnecessary and obsolete reporting provisions (sec. 
         1031)
        The Senate amendment contained a provision (sec. 1021) 
     that would repeal certain obsolete reporting requirements 
     imposed upon the Department of Defense.
       The House bill contained no similar provision.
       The House recedes with an amendment which would retain an 
     annual report on the use of money rentals for leases of non-
     excess property, and which would completely repeal a 
     provision partially repealed in the Senate amendment.
     Report regarding use of tagging system to identify 
         hydrocarbon fuels used by Department of Defense (sec. 
         1032)
       The Senate amendment contained a provision (sec. 312) that 
     would authorize the Department of Defense to conduct a pilot 
     program to determine if hydrocarbon fuels used by the 
     Department can be tagged.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense to provide a report to the congressional 
     defense committees outlining the feasibility, costs, and 
     benefits of using fuel tags to help deter theft and 
     facilitate the determination of the source of surface and 
     underground pollution in locations having separate fuel 
     storage facilities belonging to the Department and civilian 
     companies.

                Subtitle E--Armed Forces Retirement Home

     Appointment of Director and Deputy Director of the Naval Home 
         (sec. 1041)
       The Senate amendment contained a provision (sec. 1075) that 
     would disestablish the civilian positions of director and 
     deputy director of the Naval Home and would require that the 
     Secretary of Defense appoint a director and deputy director 
     from among military officers recommended by the military 
     departments.
       The House bill contained no similar provision.
       The House recedes.
     Revision of inspection requirements relating to Armed Forces 
         Retirement Home (sec. 1042)
       The House bill contained a provision (sec. 363) that would 
     revise the current procedures for the periodic inspection of 
     the Armed Forces Retirement Homes by the Inspector General of 
     each of the military departments on an alternating basis, and 
     would require that upon completion of these inspections, the 
     report of the inspections shall be provided to the Congress.
       The Senate amendment contained a provision (sec. 1057) that 
     would eliminate the requirement for the Department of Defense 
     Inspector General to conduct inspections of the Armed Forces 
     Retirement Homes, as well as review the inspections conducted 
     by the inspectors general of the military departments. The 
     recommended provision would require inspections of the homes 
     every three years. Responsibility to conduct inspections 
     would rotate among the three services on a schedule 
     determined by the Secretary of Defense.
       The Senate recedes with a clarifying amendment.
     Clarification of land conveyance authority, Armed Forces 
         Retirement Home (sec. 1043)
       The House bill contained a provision (sec. 1041) that would 
     clarify subsection (a) of section 1053 of the National 
     Defense Authorization Act for Fiscal Year 1997 (Public law 
     104-201), to state clearly that the original purpose of this 
     disposal provision was to authorize only the sale of a 
     specific parcel of land at the Armed Forces Retirement Home, 
     Washington, D.C. through an open bid process at not less than 
     fair market value, with the receipts of the sale to be 
     deposited in the Armed Forces Retirement Homes Trust Fund.

[[Page H8405]]

       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would direct the 
     Armed Forces Retirement Home to proceed with the sale of a 
     specific parcel of land at the Armed Forces Retirement Home, 
     Washington, D.C. to a neighboring non-profit organization or 
     an entity or entities related to such organization at fair 
     market value, as determined by the Armed Forces Retirement 
     Home Board based on an independent appraisal, to a 
     neighboring non-profit organization or an entity or entities 
     related to such organization.

            Subtitle F--Matters Relating to Defense Property

     Plan for improved demilitarization of excess and surplus 
         defense property (sec. 1051)
       The Senate amendment contained a provision (sec. 1077) that 
     would require the Secretary of Defense to assign 
     demilitarization codes to military equipment and ensure that 
     this equipment is demilitarized in accordance with those 
     codes. The provision would further require that anyone who is 
     convicted of knowingly participating in the exportation of 
     merchandise in violation of Federal law, be fined or 
     imprisoned for up to five years.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense to submit to Congress a plan to address 
     the problems with the sale or other disposal of excess and 
     surplus defense materials. The plan would include how the 
     Department will (1) implement all appropriate 
     demilitarization training, (2) improve oversight of 
     demilitarization functions and the maintenance of 
     demilitarization codes, and (3) assign accurate 
     demilitarization codes. The plan will also include the 
     steps the Secretary intends to take to centralize the 
     demilitarization functions and responsibilities of the 
     Department of Defense.
     Transfer of F-4 Phantom II aircraft to foundation (sec. 1052)
       The Senate amendment contained a provision (sec. 1058) that 
     would authorize the Secretary of the Air Force to transfer 
     one surplus F-4 phantom aircraft to a foundation by means of 
     a conditional deed of gift.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.

            Subtitle G--Other Department of Defense Matters

     Pilot program on alternative notice of receipt of legal 
         process for garnishment of federal pay for child support 
         and alimony (sec. 1061)
       The House bill contained a provision (sec. 1042) that would 
     allow the Department of Defense to refrain from providing 
     court documents to a military member, concerning child 
     support and alimony payments, prior to proceeding with a 
     court ordered garnishment. The Defense Finance and Accounting 
     Service would continue to include pertinent information with 
     the notification to the service member involved.
       The Senate amendment contained a similar provision (sec. 
     1048), but limited the Department of Defense to a pilot 
     program.
       The House recedes with an amendment that would allow the 
     Department to conduct a pilot program for three years and 
     provide an annual report on the status of this program to the 
     congressional defense committees.
     Training of special operations forces with friendly foreign 
         forces (sec. 1062)
       The House bill contained a provision (sec. 1043) that would 
     amend section 2011 of title 10, United States Code, to 
     improve the level of reporting associated with the authority 
     of U.S. special operations forces to train with the forces of 
     foreign nations and require that any such training receive 
     the prior approval of the Secretary of Defense.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would limit the 
     scope of the provision to changes in the regulations for, and 
     the elements of the annual report on, the training of special 
     operations forces with friendly foreign forces.
       The conferees emphasize that, while improved 
     interoperability and relations with the friendly foreign 
     forces may be an ancillary benefit, the training of U.S. 
     special operations forces under the authority of this section 
     must clearly be the primary purpose of the training. The 
     conferees also underscore that training with ``other security 
     forces'' of a friendly foreign country, rather than with such 
     country's armed forces, should be a rare exception. Finally, 
     it is expected that the Secretary will not delegate the 
     approval authority for such training to a level below an 
     assistant secretary of defense and that both the Assistant 
     Secretaries for International Security Affairs and Special 
     Operations and Low Intensity Conflict should participate in 
     the required approval process.
     Research grants competitively awarded to service academies 
         (sec. 1063)
       The Senate amendment contained a provision (sec. 1052) that 
     would permit the service academies to compete for and receive 
     research grants offered by a corporation, fund, foundation, 
     educational institution, or other similar entity that is 
     organized and operated primarily for scientific, literary, or 
     educational purposes that are awarded competitively.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Department of Defense use of frequency spectrum (sec. 1064)
       The Senate amendment contained a provision (sec. 1062) that 
     would require the Secretary of Defense to report to the 
     defense authorizing committees the costs to the Department of 
     Defense (DOD) resulting from reallocations of the radio 
     frequency spectrum authorized by DOD. The provision would 
     also require that any entity that purchases any portion of 
     the radio frequency spectrum previously reserved for use by 
     any federal agency, including DOD, and that the Federal 
     agency has relinquished for sale or lease, shall reimburse 
     the Federal agency for the cost incurred by the Federal 
     government to make that portion of the frequency spectrum 
     available. The provision would further require a report in 
     the annual budget request for each Federal department or 
     agency that incurs costs for such frequency relocations. 
     Finally, the provision would exempt from the reimbursement 
     requirement those portions of the Federal radio frequency 
     spectrum identified for reallocation in the first 
     reallocation report submitted to the President and Congress, 
     except for reallocations of that portion of the spectrum 
     located in the 1710-1755 megahertz band.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Department of Defense aviation accident investigations (sec. 
         1065)
       The Senate amendment contained a provision (sec. 1028) that 
     would require the Secretary of Defense to provide an 
     assessment of the role of the Office of the Secretary of 
     Defense and the Joint Staff in the investigation of 
     military aircraft accidents. Additionally, the provision 
     would require the Secretary of Defense to report on the 
     advisability of requiring an independent entity of the 
     Department of Defense to supervise military aircraft 
     accident investigations.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense to prescribe uniform regulations 
     establishing procedures by which the military departments 
     shall provide periodic reports on the conduct and progress of 
     investigations to the families of those involved in an 
     aviation accident.
       The conferees note the importance of a regular flow of 
     accurate information to the families of those involved in an 
     aviation accident and encourage the Secretary of Defense to 
     include in regulations specific circumstances for providing 
     information to the families. Additionally, the conferees 
     encourage the Secretary of Defense to consider accepting 
     comments from the National Transportation Safety Board in 
     developing regulations pertaining to aviation accident 
     investigations.
     Investigation of actions relating to 174th Fighter Wing of 
         New York Air National Guard (sec. 1066)
       The House bill contained a provision (sec. 1047) that would 
     require the Inspector General of the Department of Defense to 
     investigate the grounding of the 174th Fighter Wing of the 
     New York Air National Guard and the subsequent dismissal, 
     demotion, or reassignment of 12 pilots.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Inspector General of the Department of Defense to conduct a 
     new investigation into the facts and circumstances leading to 
     the December 1, 1995, grounding of the 174th Fighter Wing of 
     the New York Air National Guard and to provide the report of 
     the investigation to the Committee on Armed Services of the 
     Senate and the Committee on National Security of the House of 
     Representatives, not later than 180 days after enactment.
     Program to commemorate 50th anniversary of the Korean War 
         (sec. 1067)
       The Senate amendment contained a provision (sec. 1061) that 
     would increase the amount authorized to be expended for the 
     Korean War Commemorative Program from $1.0 million to $10.0 
     million over a seven year period.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     $1.82 million for this program in fiscal year 1999.
       The conferees direct the Secretary of the Army to include 
     within future budget requests the amount of funds necessary 
     for the continued operation of this program.
     Designation of America's national maritime museum (sec. 1068)
       The Senate amendment contained a provision (sec. 1078) that 
     would designate two maritime museums as America's National 
     Maritime Museum. The provision also provided criteria for 
     subsequent additions of museums to the group of museums 
     designated as America's National Maritime Museum.
       The House bill contained no similar provision.
       The House recedes with an amendment that prescribes the 
     procedures for subsequent additions of museums to the group 
     designated as America's National Maritime Museum.

[[Page H8406]]

     Technical and clerical amendments (sec. 1069)
       The Senate amendment contained a provision (sec. 1063) that 
     would make various technical and clerical amendments to 
     existing law.
       The House bill contained no similar provision.
       The House recedes with an amendment that would make 
     additional technical and clerical amendments to existing law.

                       Subtitle H--Other Matters

     Act constituting presidential approval of vessel war risk 
         insurance requested by the Secretary of Defense (sec. 
         1071)
       The Senate amendment contained a provision (sec. 1059) that 
     would authorize the pre-approval of vessel war risk insurance 
     under the Merchant Marine Act, 1936 (46 U.S.C. App. 1281), so 
     that it can be immediately available in an emergency or 
     contingency.
       The House bill contained no similar provision.
       The House recedes with a technical amendment and an 
     amendment adding an effective date to the provision.
     Extension and reauthorization of Defense Production Act of 
         1950 (sec. 1072)
       The Senate amendment contained a provision (sec. 1064) that 
     would reauthorize the Defense Production Act of 1950 (50 
     U.S.C. 2161 and 2166) for a period of one year.
       The House bill contained no similar provision.
       The House recedes.
     Requirement that burial flags furnished by the Secretary of 
         Veterans Affairs be wholly produced in the United States 
         (sec. 1073)
       The House bill contained a provision (sec. 1046) that would 
     amend section 2301 of title 38, United States Code, to 
     require that any flags furnished for burial purposes be 
     wholly produced in the United States.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment allowing the Secretary 
     of Veterans Affairs to waive the requirement upon making a 
     determination that the requirement cannot reasonably be 
     met or that it would not be in the national interest of 
     the United States. The conferees direct that, in the event 
     he intends to waive the requirement, the Secretary notify 
     Congress concerning the factors upon which he has based 
     his determination.
     Sense of Congress concerning tax treatment of principal 
         residence of members of armed forces while away from home 
         on active duty (sec. 1074)
       The House bill contained a provision (sec. 1049) that would 
     express the sense of Congress that a member of the armed 
     forces should be treated as using property as a principal 
     residence during any period that the member (or the member's 
     spouse) is serving on extended active duty, but only if the 
     member used the property as a principal residence for any 
     period during or before the period of extended active duty.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Clarification of State authority to tax compensation paid to 
         certain employees (sec. 1075)
       The House bill contained a provision (sec. 1045) that would 
     limit state taxation of the pay of workers at Fort Campbell, 
     Kentucky, to the state or political subdivision thereof in 
     which the workers reside. The provision would also limit 
     state taxation of federal employees employed at federal 
     hydroelectric facilities located on the Columbia and Missouri 
     Rivers to the state or political subdivision thereof in which 
     the employees reside.
       The Senate amendment contained no similar provision.
       The Senate recedes.

                   Legislative Provisions Not Adopted

     Outlay limitations
       The House bill contained a provision (sec. 1003) that would 
     restrict the amount of fiscal year 1999 discretionary outlays 
     available to the Department of Defense for military functions 
     and the Department of Energy for national security programs 
     to an amount consistent with the national defense total 
     provided in the Balanced Budget Act of 1997.
       The Senate amendment contained no similar provision.
       The House recedes.
     Long-term charter contracts for acquisition of auxiliary 
         vessels for the Department of Defense
       The House bill contained a provision (sec. 1015) that would 
     authorize the Secretary of the Navy to enter into a contract 
     for the long-term lease or charter of newly built combat 
     logistics force, strategic sealift and auxiliary support 
     vessels.
       The Senate amendment contained no similar provision.
       The House recedes.
     Sense of the Congress regarding the establishment of a 
         counter-drug center in Panama
       The House bill contained a provision (sec. 1023) that would 
     express the sense of the Congress that the Secretary of 
     Defense, in consultation with the Secretary of State, should 
     continue to engage in negotiations with the Government of 
     Panama for the establishment of a multinational counter-drug 
     center in Panama.
       The Senate amendment had no similar provision.
       The House recedes.
       The conferees understand the important contribution that 
     the facilities in Panama, including JIATF-South, provide. The 
     conferees are aware of the unfortunate difficulty that the 
     U.S. Government has encountered in its negotiations with the 
     Government of Panama for the continued operation of these 
     facilities as part of a multinational counter-narcotics 
     center. The conferees encourage the Secretary of State to 
     continue these important negotiations.
     Assignment of members of armed forces to assist INS and 
         Customs Service
       The House bill contained a provision (sec. 1024) that would 
     authorize the assignment of members of the armed services to 
     assist the Immigration and Naturalization Service and the 
     Customs Service.
       The Senate amendment had no similar provision.
       The House recedes.
     Facilitation of operations at Edwards Air Force Base
       The House bill contained a provision (sec. 1048) that would 
     authorize the Secretary of the Air Force to provide 
     assistance to the Dryden Flight Research Center of the 
     National Aeronautics and Space Administration.
       The Senate amendment contained no similar provision.
       The House recedes.
     Operation, maintenance, and upgrade of Air Force space launch 
         facilities
       The House bill contained a provision (sec. 1050) that would 
     prohibit the obligation of funds appropriated for the 
     operation, maintenance, or upgrade of the Western and Eastern 
     Space Launch Facilities of the Air Force for any other 
     purpose.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees believe that maintaining a strong, robust 
     space launch capability, including modern and well maintained 
     space launch facilities, is essential to preserving a strong 
     military and scientific capability. The conferees believe 
     that the reprogramming of any resources appropriated to 
     ensure that space launch facilities are fully maintained 
     in their best condition, should only be conducted if 
     planned launches, or other programmed activities, are 
     canceled.
     Southwest border fence
       The Senate amendment contained a provision (sec. 333) that 
     would require the Secretary of Defense to perform an analysis 
     of the effectiveness of the Southwest border fence in 
     reducing the flow of drugs into the United States before 
     further expansion.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees are concerned with the continued 
     transportation of narcotics across the Southwest border and 
     into the United States. Over the past few years, the 
     Department of Defense has explored several initiatives to 
     reduce this flow of illegal drugs. One such initiative was 
     the construction of a border fence along portions of the 
     border. Although the conferees support such initiatives, the 
     conferees believe that a thorough analysis should be 
     performed to determine how the fence might be made more 
     effective before the Department proceeds with any planned 
     expansion. The conferees direct the Secretary of Defense to 
     undertake such an analysis.
       In the interim, the conferees recommend $3.0 million to 
     facilitate completion of the Southwest border fence project 
     from within the domestic law enforcement agencies support 
     component of the Department of Defense Counter-Drug Plan.
     Increase operations and maintenance for Army National Guard/
         reduce amounts from revised economic assumptions
       The Senate amendment contained a provision (sec. 1005) that 
     would reduce authorizations for appropriations to reflect the 
     updated inflation estimates for fiscal year 1999 by the 
     Office of Management and Budget. The amendment also increased 
     funding for the Army National Guard operations and training 
     programs, and the arms control programs of the Department of 
     Energy.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees agreed to adopt the revised economic 
     assumptions. Funding for the Army National Guard and the 
     Department of Energy arms control programs are discussed in 
     other portions of this report.
     Ship scrapping pilot program
       The Senate amendment contained a provision (sec. 1017) that 
     would direct the Secretary of the Navy to carry out a ship 
     scrapping pilot program to gather data on the costs 
     associated with scrapping and to demonstrate cost effective 
     technologies and techniques that ensure worker safety and 
     environmental protection. Under the pilot program, the 
     Secretary would be required to give a greater weight to 
     technical and performance-related factors than to cost and 
     price-related factors. The Secretary of the Navy would also 
     be required to give significant weight to technical 
     qualifications and past performance of the contractor and 
     major subcontractors or team members of the contractor in 
     complying with applicable legal requirements for 
     environmental protection and worker safety.
       The House bill contained no similar provision.
       The Senate recedes.

[[Page H8407]]

       The conferees acknowledge the recommendations of the 1998 
     Report of the Interagency Panel on Ship Scrapping. Consistent 
     with those recommendations, the conferees object to any 
     congressionally mandated restrictions or prohibitions related 
     to domestic or overseas scrapping of naval vessels.
     Report on inventory and control of military equipment
       The Senate amendment contained a provision (sec. 1025) that 
     would require the Department of Defense to perform a thorough 
     review of its inventory of military equipment and submit a 
     report to the Congress outlining the location of this 
     equipment, or the efforts of the Department in locating any 
     equipment that could not be located.
       The House bill contained no similar provision.
       The Senate recedes.
     Report on reduction of infrastructure costs at Brooks Air 
         Force Base, Texas
       The Senate amendment contained a provision (sec. 1033) that 
     would require the Secretary of the Air Force to submit a 
     report, not later than December 31, 1998, on the options for 
     the reduction of infrastructure costs at Brooks Air Force 
     Base, Texas.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees agree to include a requirement for the 
     Secretary of Defense to assess the options to reduce 
     infrastructure costs at Brooks Air Force Base, Texas, in 
     section 2814 concerning leasing and other alternative uses of 
     non-excess military property.
     Sense of the Senate regarding declassification of classified 
         information of the Department of Defense and the 
         Department of Energy
       The Senate amendment contained a provision (sec. 1069) that 
     would set forth the sense of the Senate that the Secretaries 
     of Defense and Energy should request adequate funds in fiscal 
     year 2000 for activities relating to the declassification of 
     information required by Executive Order 12958 and the Atomic 
     Energy Act of 1954 (42 U.S.C. 2011 et seq.).
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees have addressed this issue in a separate 
     section in Title XXXI of this Act.
     Sense of the Senate regarding the August 1995 assassination 
         attempt against President Shevardnadze of Georgia
       The Senate amendment contained a provision (sec. 1081) that 
     would express the sense of the Senate that the Russian 
     Federation should extradite the alleged perpetrators of the 
     August 5, 1995 assassination attempt on the life of President 
     Shevardnadze to Georgia to stand trial, that the Russian 
     Federation and the Russian Minister of Defense should 
     cooperate and ensure that Russian military bases on Georgian 
     territory are not used to facilitate the escape of 
     perpetrators acting against the Government and committing 
     acts in violation of the national sovereignty of Georgia, and 
     that the U.S. Government should use all available authorities 
     to provide assistance to ensure the safety of the President 
     of Georgia.
       The House bill contained no similar provision.
       The Senate recedes. However, the conferees do agree that 
     the Russian Federation should respect the national 
     sovereignty of Georgia and the Russian Ministry of Defense 
     should cooperate to ensure that its military bases located on 
     Georgian territory are not used to facilitate acts of 
     terrorism and violence, nor used to protect and provide 
     escape to perpetrators of terrorism or violence against the 
     Georgian Government or its people.
     Eliminating secret Senate holds
       The Senate amendment contained a provision (sec. 1083) that 
     would state that it is a standing order of the Senate that a 
     Senator who provides notice to leadership of his intention to 
     object to proceeding to a motion or matter shall disclose the 
     objection or hold in the Congressional Record not later than 
     two session days after the date of the notice. The provision 
     also stated that it was adopted as an exercise of the 
     rulemaking process of the Senate and with full recognition of 
     the constitutional right of the Senate to change its rules at 
     any time.
       The House bill contained no similar provision.
       The Senate recedes.
     Cooperation between the Department of the Army and the 
         Environmental Protection Agency in meeting the Chemical 
         Weapons Convention requirements
       The Senate amendment contained a provision (sec. 1087) that 
     would require the Department of Defense (DOD), in 
     coordination with the Environmental Protection Agency (EPA), 
     to submit a report to the congressional defense committees by 
     April 1, 1999. The report would address the mutual 
     responsibilities of DOD and EPA with respect to the Resource 
     Conservation and Recovery Act (RCRA)(42 U.S.C. 6901 et seq.) 
     permit process related to fulfilling U.S. international 
     obligations under the Chemical Weapons Convention (CWC).
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees note that compliance with international 
     obligations to destroy the U.S. chemical weapons stockpile by 
     April 28, 2007, as required under the CWC, is a national 
     priority. Given the international obligation of the United 
     States under the CWC, the President must ensure that DOD and 
     the Army receive all necessary assistance from federal 
     agencies to facilitate the safe and effective destruction of 
     the lethal chemical stockpile.
       The EPA is a federal agency with specific oversight 
     responsibility for states with authorized hazardous waste 
     programs under RCRA. The conferees expect EPA to exercise its 
     oversight responsibility in a way that supports the DOD and 
     the Army in the execution of CWC obligations. The conferees, 
     however, have been apprised of EPA assertions that it is not 
     adequately funded to meet its federal RCRA permitting 
     responsibilities associated with CWC commitments. The 
     conferees expect that EPA shall work in concert with federal, 
     state, and local government entities in the successful 
     resolution of issues related to the destruction of the U.S. 
     chemical weapons stockpile, and that the EPA shall properly 
     budget for these efforts.
       The conferees are concerned about the possibility that 
     inadequate EPA planning and budgeting could be used as a 
     justification for authorization of the Army funding of EPA 
     obligations. Such a justification would be inappropriate. In 
     addition, there remains a question about the extent to which 
     EPA must participate in the CWC RCRA permit process, 
     particularly in states with authorized hazardous waste 
     programs. The conferees agree that the level of EPA 
     participation must not exceed the requirements related to 
     federal regulatory oversight under RCRA.
       The Army received specific authorization to reimburse 
     states for their efforts in permitting chemical 
     demilitarization facilities in the National Defense 
     Authorization Act for Fiscal Year 1986, but there was no 
     provision for EPA reimbursement. There is no statutory 
     authority for the Army to reimburse EPA for federal 
     regulatory oversight activities related to the CWC RCRA 
     permit process.
       The conferees direct the Secretary of Defense and the 
     Administrator of the EPA to submit a report to the 
     congressional defense committees by April 1, 1999 that 
     includes the following: (1) a detailed description of the 
     federal, state, and local RCRA permitting responsibilities 
     related to CWC obligations to destroy the U.S. chemical 
     stockpile, with particular focus on the federal regulatory 
     role in states with authorized hazardous waste programs; (2) 
     a description of the state authorized hazardous waste 
     programs in those states with existing or projected chemical 
     weapons destruction sites; (3) the level of technical 
     assistance provided by EPA to its regional offices and to the 
     state and local governments in the overall RCRA permitting 
     process, the legal basis for such assistance, and how such 
     assistance supports the national commitment to destroy U.S. 
     chemical weapons, particularly in states with authorized 
     hazardous waste programs; (4) the legal rationale, if any, 
     for the Army to fund EPA technical assistance for EPA 
     regional offices, and for the state and local governments in 
     the RCRA permitting process associated with chemical weapons 
     destruction, particularly in relation to state authorized 
     hazardous waste programs; (5) the legal rationale, if 
     any, for the Army to fund EPA attendance of meetings with 
     the National Chemical Agent Demilitarization Workgroup, 
     meetings between the Office of Solid Waste and the 
     affected EPA Regional Offices and states, and meetings 
     between the Office of Solid Waste, the Program Manager for 
     Chemical Demilitarization, and DOD; (6) the legal 
     rationale, if any, for DOD or the Army to provide funds to 
     EPA for employment of full time equivalents (FTEs) to 
     assist in the formulation of RCRA permits, the projected 
     geographical location of the FTEs, and the projected 
     function of the FTEs in relation to CWC RCRA permit 
     requirements; (7) a complete explanation of the need, if 
     any, for the Army to fund the EPA role with respect to CWC 
     RCRA permit requirements, a complete description of the 
     overall EPA functions and activities that may require Army 
     funding, an identification of the other instances in which 
     the Army has provided funds to EPA for other RCRA permit 
     oversight activities, and the specific authority for the 
     proposed level of EPA participation in CWC RCRA permit 
     process; and (8) the Army and EPA funding levels within 
     the President's budget projected to support the RCRA 
     permit process related to CWC for fiscal year 1999 and the 
     out years.

           Title XI--Department of Defense Civilian Personnel

                     Legislative Provisions Adopted

     Defense Advanced Research Projects Agency experimental 
         personnel management program for technical personnel 
         (sec. 1101)
       The Senate amendment contained a provision (sec. 1105) that 
     would authorize the Secretary of Defense special personnel 
     management authorities to carry out a five-year experimental 
     personnel management program in which eminent experts in 
     science and engineering fields for research and development 
     projects administered by the Defense Advanced Research 
     Projects Agency could be hired and paid without regard to 
     existing civil service laws concerning appointment and 
     compensation. The provision would limit authority to a 
     maximum of five years and would require the Secretary of 
     Defense to submit an annual report to the Congress beginning 
     in fiscal year 1999.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.

[[Page H8408]]

     Maximum pay rate comparability for faculty members of the 
         United States Air Force Institute of Technology (sec. 
         1102)
       The Senate amendment contained a provision (sec. 1102) that 
     would permit civilian faculty at the United States Air Force 
     Institute of Technology to be paid at the same level as 
     civilian faculty at other senior military schools and the 
     service academies.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Authority for release to Coast Guard of drug test results of 
         civil service mariners of the Military Sealift Command 
         (sec. 1103)
       The House bill contained a provision (sec. 1101) that would 
     permit the Secretary of the Navy to release to the Coast 
     Guard the results of a drug test of a former employee of the 
     Department of the Navy who was employed as a civil service 
     mariner.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Limitations on back pay awards (sec. 1104)
       The House bill contained a provision (sec. 1102) that would 
     clarify that any award of back pay to civil service 
     employees, resulting from a finding of an unjustified 
     personnel action adjudged under section 5596 of title 5, 
     United States Code, shall not exceed six years, unless a 
     shorter limitation period applies.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Restoration of annual leave accumulated by civilian employees 
         at installations in the Republic of Panama to be closed 
         pursuant to the Panama Canal Treaty of 1977 (sec. 1105)
       The House bill contained a provision (sec. 1103) that would 
     provide federal employees, working to close installations in 
     the Republic of Panama in accordance with the Panama Canal 
     Treaty Implementation Plan, the same automatic restoration of 
     excess annual leave that is provided to employees at bases 
     closed under current base realignment and closure procedures.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Repeal of program providing preference for employment of 
         military spouses in military child care facilities (sec. 
         1106)
       The House bill contained a provision (sec. 1104) that would 
     repeal section 1792d of title 10, United States Code, which 
     provides military spouses with an additional hiring 
     preference in the civil service that has proven unnecessary 
     given the other general military spouse preferences provided 
     by section 1784 of title 10, United States Code.
       The Senate amendment contained a similar provision (sec. 
     1101).
       The Senate recedes.
     Observance of certain holidays at duty posts outside the 
         United States (sec. 1107)
       The House bill contained a provision (sec. 1106) that would 
     allow civil service employees, working in foreign areas where 
     the regular work week is other than Monday through Friday, to 
     observe federal holidays in conjunction with a weekend.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Random drug testing of Department of Defense employees (sec. 
         1108)
       The House bill contained a provision (sec. 1025) that would 
     expand the current drug testing program of the Department of 
     Defense by requiring that all civilian employees be subject 
     to random tests, rather than just those serving in sensitive 
     positions as required by executive order.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would codify the 
     executive order which requires random drug testing of those 
     serving in sensitive positions, and authorize the Secretary 
     of Defense to test any employee of the Department of Defense 
     if there is a reasonable suspicion that the employee uses 
     illegal drugs.
     Department of Defense employee voluntary early retirement 
         authority (sec. 1109)
       The Senate amendment contained a provision (sec. 1104) that 
     would modify the conditions under which voluntary early 
     retirement would be authorized for civilian employees of the 
     Department of Defense.
       The House bill contained no similar provision.
       The House recedes with an amendment that would change the 
     effective date to October 1, 2000.

                   Legislative Provisions Not Adopted

     Elimination of retained pay as basis for determining 
         locality-based adjustments
       The House bill contained a provision (sec. 1105) that would 
     eliminate windfall pay adjustments that have been made to 
     some federal employees by requiring that future pay 
     adjustments be measured against the pay rate necessary to 
     retain the employees and eliminate the windfall.
       The Senate amendment contained no similar provision.
       The House recedes.
     Four-year extension of voluntary separation incentive pay 
         authority
       The Senate amendment contained a provision (sec. 1103) that 
     would extend until September 30, 2003, the civilian voluntary 
     separation incentive pay authority established by 5597(e) of 
     Title 5, United States Code.
       The House bill contained no similar provision.
       The Senate recedes.

              Title XII--Matters Relating to Other Nations

                     Legislative Provisions Adopted

    Subtitle A--United States Armed Forces in Bosnia and Herzegovina

     United States armed forces in Bosnia and Herzegovina (secs. 
         1201-1205)
       The House bill contained a provision (sec. 1202) that would 
     express the views and concerns of Congress regarding the 
     participation of U.S. armed forces in NATO operations in 
     Bosnia and would require the President to report to Congress 
     on the continued participation of U.S. armed forces in NATO 
     operations in Bosnia and the status of progress achieved in 
     implementing the civilian tasks of the Dayton Accords on an 
     annual basis. The provision would also require the Secretary 
     of Defense to report to Congress by December 15, 1998 on the 
     effects of the military operations in Bosnia on the readiness 
     of U.S. armed forces and the ability of U.S. forces to 
     conduct two nearly simultaneous major regional conflicts.
       The Senate amendment contained three provisions regarding 
     the continued participation of U.S. ground combat forces in 
     NATO operations in Bosnia. One provision (sec. 1065) would 
     express the sense of Congress that the funds sufficient to 
     cover continued U.S. participation in the NATO operation in 
     Bosnia should be included in the defense budget and in the 
     Future Years Defense Program above the defense topline 
     contained in the Balanced Budget Agreement of 1997, rather 
     than through reprogrammings or rescissions of existing 
     defense activities. Another provision (sec. 1066) would 
     express concerns that U.S. armed forces should not act as 
     civil police in Bosnia and would require the President to 
     submit a report to Congress on the status of establishing a 
     NATO force of gendarmes, to include information on the 
     mission of the force, the composition of the force, and the 
     extent to which, if any, U.S. forces will participate in the 
     force.
       Lastly, the Senate amendment included a provision (sec. 
     1072) that would express the sense of Congress that U.S. 
     ground combat forces should not remain in Bosnia 
     indefinitely, that a NATO-led follow-on force, without 
     participation of U.S. combat forces, would be suitable to 
     continue implementation of the Dayton Agreement if the 
     European Security and Defense Identity is not sufficiently 
     established, that our European allies should take steps to 
     establish a European follow-on force, led either by the 
     Western European Union (WEU) or NATO, and that the President 
     should continue to consult closely with Congress on the 
     progress in implementing the Dayton Agreement and in reducing 
     and ultimately withdrawing U.S. ground combat forces from 
     Bosnia. It would also require the President to report to 
     Congress by September 30, 1998 on the impact on the security 
     situation in Bosnia that would result from a phased reduction 
     of U.S. military forces, and the prospects for establishing a 
     self-sustaining peace and stable government in Bosnia. 
     Finally, it would require the President to submit a report to 
     Congress on the following: the performance objectives, to 
     include the benchmarks reported in the latest semi-annual 
     report submitted under section 7(b)(2) of the 1998 
     Supplemental Appropriations and Rescissions Act, and 
     schedule for implementing the Dayton Agreement, to include 
     objectives not specifically covered in the Dayton 
     Agreement and support provided by U.S. forces to the 
     military and non-military objectives. Along with the 
     budget request for fiscal year 2000 and each time the 
     President submits a proposal for funding continued 
     operations of U.S. forces in Bosnia, the provision would 
     require the President to submit a report to Congress 
     including information on the mission of U.S. forces, the 
     support provided by U.S. armed forces to military and non-
     military missions; U.S. armed forces participation in 
     apprehending war criminals and any role in connection with 
     civilian police functions; the role of U.S. armed forces 
     in assisting in the resettlement of refugees and the 
     support of U.S. armed forces in supporting international 
     and local civilian authorities. The report would also 
     include an assessment of the cost to the United States by 
     fiscal year of carrying out the aforementioned missions, 
     and a joint assessment by the Secretary of Defense and the 
     Secretary of State on the status of planning for European 
     military and paramilitary forces to take over the 
     remaining military missions in Bosnia, and for the 
     establishment and support of a forward-based U.S. rapid 
     reaction force outside Bosnia that would be capable of 
     responding rapidly to threats posed in Bosnia, and of 
     providing support to a European follow-on force to ensure 
     that it is fully capable of accomplishing the 
     implementation of the Dayton Agreement.
        The conferees agree to three provisions (secs. 1201-1204) 
     that would combine, update, and clarify the provisions 
     contained in the House bill and Senate amendment and to an 
     additional provision (sec. 1205) that would contain 
     definitions for the subtitle containing these provisions.

[[Page H8409]]

         Subtitle B--Matters Relating to Contingency Operations

     Report on involvement of Armed Forces in contingency and 
         ongoing operations (sec. 1211)
       The Senate amendment contained a provision (sec. 1030) that 
     would require the Secretary of Defense to submit a report to 
     the congressional defense committees outlining: 1) the 
     effects of U.S. involvement in contingency operations on the 
     retention and reenlistment of personnel in the armed forces; 
     2) the extent to which involvement in these operations has 
     resulted in shortfalls in personnel and equipment; 3) the 
     cost of these operations and the accounts from which the 
     funds to pay these costs were drawn; and 4) the objectives of 
     the operation and the set of conditions that defines the end 
     of each operation.
       The House bill contained no similar provision.
       The House recedes.
     Submission of report on objectives of a contingency operation 
         with requests for funding for the operation (sec. 1212)
       The Senate amendment contained a provision (sec. 1031) that 
     would require the Secretary of Defense to include with the 
     initial funding request for any contingency operation 
     involving the deployment of over 500 U.S. military personnel, 
     a report outlining the objectives of the operation, and the 
     conditions or date that defines the end of that operation.
       The House bill contained no similar provision.
       The House recedes.

            Subtitle C--Matters Relating to NATO and Europe

     Limitation on United States share of costs of NATO expansion 
         (sec. 1221)
       The House bill contained a provision (sec. 1211) that would 
     limit the amount spent by the United States as its share of 
     the total cost of enlarging the North Atlantic Treaty 
     Organization NATO) to 10 percent of the cost of expansion, or 
     a total of $2.0 billion, whichever is less, for fiscal years 
     1999 through 2011.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would limit the 
     U.S. share of the costs of enlarging NATO to include Poland, 
     Hungary, and the Czech Republic to 25 percent of the 
     commonly-funded costs, or $2.0 billion, whichever is less, 
     for fiscal years 1999 through 2011.
     Report on military capabilities of an expanded NATO alliance 
         (sec. 1222)
       The House bill contained a provision (sec. 1203) that would 
     require the Secretary of Defense to provide a report to 
     Congress by March 15, 1999 on the planned future requirements 
     and military capabilities of an enlarged North Atlantic 
     Treaty Organization (NATO).
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment.
       The conferees agree that continued U.S. participation in 
     NATO advances U.S. national security interests in the region, 
     as well as around the world. Additionally, the conferees 
     endorse the concerns expressed by the House (H. Rept. 105-
     532) that information prepared both by the United States and 
     NATO military authorities on the costs of enlarging the 
     Alliance to include Poland, Hungary, and the Czech Republic 
     was contradictory. However, the conferees understand that the 
     differing information offered by the Department of Defense, 
     the Congressional Budget Office, RAND, and NATO, in the 
     varying reports submitted on the costs of enlarging the 
     Alliance, as well as on the capabilities of the prospective 
     new Alliance members and the future Alliance military 
     capabilities and requirements, was the result of the use of 
     different criteria and assumptions.
       In an effort to compile all the information contained in 
     the various reports of the DOD and NATO on the military 
     requirements and costs of enlarging the Alliance, the 
     conferees agree to a provision that would require the 
     Secretary of Defense to provide a report to Congress by 
     March 15, 1999 that would include information on the 
     planned future military capabilities of an Alliance that 
     includes Poland, Hungary and the Czech Republic, along 
     with an assessment of the tactical, operational and 
     strategic military requirements raised by their inclusion. 
     The report is to include information on the military 
     capabilities of the forces of Poland, Hungary and the 
     Czech Republic, and their ability to achieve the minimum 
     military requirements established by NATO prior to their 
     anticipated accession to the Alliance in 1999, as well as 
     the improvements to common Alliance military assets and to 
     the national capabilities of current NATO members as a 
     result of including these new prospective members in the 
     Alliance.
       In addition, the report is to include information on 
     required improvements to the national military capabilities 
     of prospective new members, and any additional necessary 
     improvements to the common Alliance military assets to carry 
     out both Article V of the Washington Treaty of 1949 and 
     contingency operations.
       Lastly, the report should include information on any 
     additional assistance the United States may agree to provide 
     on a bilateral basis to assist Hungary, Poland, and the Czech 
     Republic in meeting additional requirements related to 
     enlarging the Alliance.
     Reports on the development of the European security and 
         defense identity (sec. 1223)
       The Senate amendment contained a provision (sec. 1032) that 
     would require the Secretary of Defense to submit a report to 
     the congressional defense committees by December 15, 1998, 
     and thereafter submit a report on a semiannual basis, on the 
     progress achieved in establishing an European Security and 
     Defense Identity (ESDI) within the North Atlantic Treaty 
     Organization (NATO).
       The House bill contained no similar provision.
       The House recedes with an amendment.
       Several years ago, the North Atlantic Treaty Organization 
     (NATO) decided to build a European pillar within NATO that 
     would enable the Western European Union (WEU), with the 
     consent of the Alliance, to assume the political control and 
     strategic direction of NATO assets and capabilities. The 
     establishment of an ESDI within the Alliance is a welcome and 
     extremely important development. With the worldwide 
     commitments of the United States, the successful development 
     of an ESDI is very much in our national interests, since it 
     could enable the WEU to carry out operations without the 
     participation of U.S. Armed Forces.
       The conferees agree to a provision that would require the 
     Secretary of Defense to submit an initial report to the 
     congressional defense committees by December 15, 1998 on the 
     plans developed and actions taken to establish an ESDI. 
     Thereafter, the report shall be submitted on a semiannual 
     basis and shall include information on the status of progress 
     made in developing an ESDI. The submission of semiannual 
     reports on the progress in establishing an ESDI would be 
     terminated when the Secretary of Defense reports that an ESDI 
     has been successfully established.

                       Subtitle D--Other Matters

     Limitation on the assignment of United States forces for 
         certain United Nations purposes (sec. 1231)
       The House bill contained a provision (sec. 1044) that would 
     prohibit the use of Department of Defense funds to assign any 
     member of the armed forces to duty with the United Nations 
     Rapidly Deployable Mission Headquarters.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment.
       The conferees agree that not more than eight members of the 
     U.S. Armed Forces may be assigned to the United Nations 
     Rapidly Deployable Mission Headquarters during fiscal year 
     1999. Additionally, the conferees agree that no funds 
     available to the Department of Defense during fiscal year 
     1999 may be used, either as a contribution to the United 
     Nations to establish a United Nations standing international 
     force, or to assign or detail U.S. Armed Forces to a United 
     Nations Stand By Force.
     Kyoto Protocol to the United Nations Framework Convention on 
         Climate Change (sec. 1232)
       The House bill contained a provision (sec. 1210) that would 
     provide that no provision of the Kyoto Protocol to the United 
     Nations Framework Convention on Climate Change, or any 
     related regulation, could restrict the procurement, training, 
     or operation and maintenance of the U.S. Armed Forces.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
       The conferees note that the Kyoto Protocol has not yet been 
     submitted to the Senate, and as such, a full Senate debate on 
     the ratification of the Kyoto Protocol has not taken place. 
     It is not the intention of the conferees, through this 
     provision, to predetermine the outcome of the Senate debate 
     on the advice and consent to ratification of the Kyoto 
     Protocol.
       The conferees are aware that the Department of Defense has 
     undertaken a number of activities to achieve greater 
     efficiency in its operations. These include a broad-based 
     effort to improve the energy efficiency of its buildings and 
     facilities and an effort to improve the fuel efficiency of 
     trucks and combat vehicles for the purpose of reducing the 
     fuel logistics burden associated with the deployment of armed 
     forces. The conferees do not intend to prohibit or discourage 
     such efforts, provided that they are undertaken for a purpose 
     other than the implementation of the Kyoto Protocol.
     Defense burdensharing (sec. 1233)
       The Senate amendment contained a provision (sec. 1084) that 
     would amend section 1221 of the National Defense 
     Authorization Act for Fiscal Year 1998, placing more emphasis 
     on increasing allied burdensharing in the area of military 
     contributions to defense and could take one or more actions: 
     increase financial contributions to the payment of 
     nonpersonnel costs to the U.S. Government for the stationing 
     of U.S. military personnel in a foreign country, increase 
     annual budgetary outlays for national defense, increase the 
     amount of military assets that a country contributes to 
     multinational military activities worldwide, or increase 
     annual budgetary outlays for foreign assistance by September 
     30, 1999. The Secretary of Defense would be required to 
     report to Congress by March 1, 1999, on the progress achieved 
     in increasing allied defense burdensharing. The Secretary of 
     Defense would also be required to provide an assessment to 
     Congress by March 1, 1999, of forward deployed U.S. forces 
     permanently

[[Page H8410]]

     stationed outside the United States and the national security 
     interests that support the forward deployment of the forces, 
     as well as the cost associated with stationing these elements 
     outside the United States, and potential alternatives to meet 
     national security interests or alliance requirements.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Transfer of excess UH-1 Huey and AH-1 Cobra helicopters to 
         foreign countries (sec. 1234)
       The House bill contained a provision (sec. 1215) that would 
     require the Secretary of Defense to make all reasonable 
     efforts to ensure that any excess UH-1 Huey or AH-1 Cobra 
     helicopters that are to be transferred to a foreign country 
     for flight operations are in the same maintenance condition 
     that such a helicopter would require for operational use by 
     U.S. military forces.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require 
     that any funds that are used for such maintenance be provided 
     from funding sources outside of those available to the 
     Department of Defense.
     Transfers of naval vessels to certain foreign countries (sec. 
         1235)
       The Senate amendment contained a provision (sec. 1013) that 
     would transfer, on a grant, lease, or sale basis, upon 
     notification to the Congress certain ships to foreign 
     countries.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Repeal of the landmine moratorium (sec. 1236)
       The House bill contained a provision (sec. 1205) that would 
     repeal section 580 of the Foreign Operations Appropriations 
     Act of 1996 (Public Law 104-107) which requires a one-year 
     moratorium on the use of anti-personnel landmines by U.S. 
     armed forces on February 12, 1999.
       The Senate amendment contained a provision (sec. 1074) that 
     would provide the President authority to waive, if deemed to 
     be in the national security interests, the one-year 
     moratorium on the use of anti-personnel landmines by U.S. 
     armed forces as required by section 580 of the Foreign 
     Operations Appropriations Act of 1996.
       The Senate recedes.
     Application of authorities under the International Emergency 
         Economic Powers Act to communist Chinese military 
         companies (sec. 1237)
       The Senate amendment contained provisions (secs. 3601-3602) 
     that would apply certain authorities under the International 
     Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) to 
     business entities controlled by the People's Liberation Army 
     of the People's Republic of China, as well as require the 
     Secretary of Defense to compile and continually update a 
     list, to be published in the Federal Register, of the 
     communist Chinese military companies that are operating, 
     directly or indirectly, in the United States.
       The House bill contained no similar provisions.
       The House recedes with a technical amendment.

  Title XIII--Cooperative Threat Reduction With States of the Former 
                              Soviet Union

                     Legislative Provisions Adopted

     Cooperative Threat Reduction (CTR) program (secs. 1301-1309)
       The budget request included $442.4 million for the 
     Cooperative Threat Reduction (CTR) program.
       The House bill contained provisions (secs. 1301-1311) that 
     would authorize $417.4 million for the CTR program for fiscal 
     year 1999, a $25.0 million decrease to the budget request; 
     allocate fiscal year 1999 funding for various CTR programs 
     and activities; prohibit the use of funds for specific 
     activities; prohibit the use of funds for the construction of 
     a chemical weapons destruction facility in Russia and 
     reallocate a portion of these funds to additional strategic 
     offensive elimination projects in Russia and Ukraine; limit 
     the availability of CTR funds; require that future budget 
     requests for CTR include a descriptive summary and funding 
     breakout of activities; would limit the use of CTR funds 
     until various reports, notifications and certifications are 
     received by Congress; require a report on biological weapons 
     activities in Russia; limit the use of CTR funds for 
     biological proliferation prevention activities in Russia; and 
     limit the use of CTR funds for strategic offensive 
     elimination activities in Russia and Ukraine in excess of the 
     budget request pending the receipt of a report.
       The Senate amendment would authorize $440.4 million, a $2.0 
     million reduction to the budget request, and contained 
     provisions (secs. 1036 and 1041) that would require the 
     Secretary of Defense to report to the congressional defense 
     committees on the need for and the feasibility of programs to 
     further U.S. nonproliferation objectives regarding former 
     Soviet experts in ballistic missiles and weapons of mass 
     destruction; and would authorize the Secretary of Defense 
     to provide assistance necessary to destroy, remove or 
     obtain from a country, weapons of mass destruction or 
     materials, equipment or technology related to the delivery 
     or development of weapons of mass destruction.
       The conferees agree to a series of provisions that would 
     authorize $440.4 million for the CTR program, establish 
     sublimits for CTR activities and provide the Secretary of 
     Defense limited authority to exceed established sublimits for 
     fiscal year 1999, pending appropriate Congressional 
     notification.
       In addition, the conferees prohibit CTR funds from being 
     used for activities related to peacekeeping activities with 
     Russia, the provision of housing, assistance to promote 
     environmental restoration, to promote job retraining, or for 
     the provision of assistance to Russia or any other state of 
     the former Soviet Union to promote defense conversion. The 
     conferees understand that the provision of housing for 
     decommissioned officers in Russia remains an issue for Russia 
     as it reduces its strategic military forces. Although the 
     conferees reiterate their strong belief that CTR funds should 
     not be used to provide housing, they encourage the 
     appropriate agencies of the U.S. Government with 
     responsibility for this issue to explore the matter of 
     providing additional assistance as appropriate and urge the 
     President to report to the Congress on any recommendations. 
     The conferees will continue to review this issue in the 
     future.
       The conferees agree to limit the use of funds for chemical 
     weapons destruction activities in Russia, pending a 
     Presidential certification regarding Russia's chemical 
     weapons program. In addition, the Department of Defense is 
     required to submit as part of the Secretary's annual budget 
     request to Congress a descriptive summary of the funds 
     requested for the CTR program, to include the use of prior 
     years CTR funds.
       With regard to biological proliferation prevention 
     activities in Russia, the conferees direct the Secretary of 
     Defense to report to the congressional defense committees by 
     March 1, 1999 on Russia's compliance with international 
     agreements related to biological weapons and to provide an 
     evaluation of the costs and benefits of collaborative 
     research efforts between the United States and Russia. In 
     addition, the conferees agree to limit the use of funds for 
     biological weapons prevention activities in Russia until 15 
     days after the Secretary of Defense submits a report to the 
     congressional defense committees regarding the use of CTR 
     funds for cooperative research activities at biological 
     research institutes in Russia.
       The conferees also agree to require the Secretary of 
     Defense, in consultation with the Secretary of Energy, to 
     provide a report to the congressional defense committees no 
     later than January 1, 1999 on their estimate of the number of 
     individuals in the Former Soviet Union with expertise in 
     weapons of mass destruction and the risks posed by that 
     expertise if transferred to states potentially hostile to the 
     United States. The report would also include a description of 
     the activities conducted by the United States and other 
     nations to assist in the employment of these experts in 
     nonproliferation and non- military related endeavors, and an 
     assessment of such activities that should be reduced, 
     maintained or expanded.
       Lastly, the conferees agree to provide the Secretary of 
     Defense authority to use funds authorized for the CTR program 
     to provide a country of the Former Soviet Union with 
     emergency assistance to remove or obtain from that country 
     weapons of mass destruction or materials, equipment or 
     technology related to the development or delivery of weapons 
     of mass destruction. The conferees agree that no funds 
     authorized for strategic offensive elimination activities in 
     Russia or Ukraine shall be used for this activity. Except in 
     certain limited situations, the Secretary of Defense shall 
     not provide such assistance until 15 days after written 
     notification is received by the congressional defense 
     committees.

 Title XIV--Domestic Preparedness for Defense Against Weapons of Mass 
                              Destruction

                     Legislative Provisions Adopted

     Defense against weapons of mass destruction (secs. 1401-1405)
       The Department of Defense forwarded with its fiscal year 
     1999 budget request a number of legislative provisions to 
     expand the ability of the Department of Defense to respond to 
     domestic terrorist activity and the potential use by 
     terrorists of weapons of mass destruction on U.S. territory.
       The House bill contained a series of provisions (Title XIV) 
     that would express the findings of Congress regarding the 
     threat of terrorist use of weapons of mass destruction and 
     the need to enhance domestic preparedness to respond to such 
     incidents (sec. 1402), would direct the President to increase 
     the effectiveness of the domestic emergency preparedness 
     program and to report by January 31, 1999, the actions taken 
     to develop an integrated program for such response (sec. 
     1411), would provide for an annual report on the program and 
     recommendations for its improvement (sec. 1412); and would 
     require the assessment of the threat and risk of terrorist 
     employment of weapons of mass destruction against cities and 
     other local areas (sec. 1413). The House bill would also 
     establish an Advisory Commission to Assess Domestic Response 
     Capabilities for Terrorism Involving Weapons of Mass 
     Destruction to provide recommendations to the President and 
     the Congress for improvements in Federal, State, and local 
     domestic emergency preparedness (secs. 1421-1429).
       The Senate amendment contained no similar provisions.
       The conferees agree that there is a need to improve 
     domestic emergency preparedness to respond to the threat of 
     terrorist use of weapons of mass destruction in the United

[[Page H8411]]

     States. The conferees are also aware that nearly 40 Federal 
     departments and agencies are involved in combating terrorism 
     (including the Departments of Justice, Defense, Energy, 
     Health and Human Services, and the Federal Emergency 
     Management Agency), and are concerned that the efforts of the 
     Federal government to enhance domestic preparedness to 
     respond to an incident involving weapons of mass 
     destruction are hampered by incomplete interagency 
     coordination and by the overlapping jurisdictions and 
     missions of the various Federal departments and agencies. 
     As a consequence, the conferees are concerned that state 
     and local emergency response agencies are often presented 
     with different and/or competing requirements and program 
     priorities from the responsible Federal agencies.
       The conferees are also aware of the actions taken by the 
     President in Presidential Decision Directive 62, pursuant to 
     direction contained in section 1441 of the National Defense 
     Authorization Act for Fiscal Year 1997 (Public Law 104-201), 
     to establish the office of the National Coordinator for 
     Security, Infrastructure Protection and Counter-Terrorism to 
     oversee policies and programs in these areas. However, the 
     conferees are not aware of specific actions that have been 
     taken to insure an integrated, interagency program for 
     improving domestic emergency response to the potential 
     terrorist threat. The conferees are concerned that the 
     Congress is not being kept adequately informed of the 
     activities of the National Coordinator and the status of 
     efforts undertaken to implement the responsibilities of the 
     Office, pursuant to direction contained within section 1442 
     of the National Defense Authorization Act for Fiscal Year 
     1997. The conferees direct the National Coordinator to 
     provide the congressional defense committees with a report by 
     March 1, 1999 on the status of activities and efforts 
     undertaken to coordinate policy and countermeasures against 
     the proliferation of weapons of mass destruction.
       The conferees agree to provisions that would require the 
     President (sec. 1411) to increase the effectiveness of the 
     domestic emergency preparedness program at the Federal, 
     State, and local levels by establishing an integrated program 
     built upon the program established under the Defense Against 
     Weapons of Mass Destruction Act of 1996, and to submit a 
     report to Congress by January 31, 1999 that outlines the 
     actions taken in this regard. The conferees also agree to a 
     provision (sec. 1412) that would amend the National Defense 
     Authorization Act for Fiscal Year 1998 (Public Law 105-85) to 
     include an annex to the report on oversight of 
     counterterrorism and antiterrorism activities of the Federal 
     government, submitted by the Director of the Office of 
     Management and Budget, that would include information on the 
     Federal government domestic emergency response program, and 
     any recommendations for improving Federal, state and local 
     domestic emergency response.
       Further, the conferees agree to a provision (sec. 1413) 
     that would require the Attorney General, in consultation with 
     the Director of the Federal Bureau of Investigation and 
     representatives of other Federal agencies and departments, 
     and state and local agencies, to develop and test 
     methodologies for assessing the threat and risk of terrorist 
     employment of weapons of mass destruction against cities and 
     local areas. Information from such assessments could be used 
     to help determine the training and equipment requirements 
     necessary for an effective domestic emergency response 
     program.
       Finally, the conferees agree to a provision (sec. 1421) 
     that would require the Secretary of Defense, in consultation 
     with the Attorney General, the Secretary of Energy, the 
     Secretary of Health and Human Services, and the Director of 
     the Federal Emergency Management Agency to enter into a 
     contract with a federally funded research and development 
     center to establish a panel to assess the capabilities for 
     domestic response to terrorism involving weapons of mass 
     destruction and to report to the President and the Congress 
     recommendations for improvements in Federal, state, and local 
     domestic emergency preparedness for such response. The 
     conferees emphasize the guidance in the provision that the 
     membership of the panel be drawn from private citizens with 
     knowledge and expertise in emergency response matters, and 
     direct that the recommendations of the local emergency 
     response community be sought in the selection of the members 
     of the panel.
       Elsewhere in this Act, the conferees have included a 
     provision (sec. 511) that would provide expanded authority 
     for use of the Reserve Components to respond to domestic 
     emergencies involving the use of weapons of mass destruction.

   Title XV--Matters Relating to Arms Control, Export Controls, and 
                          Counterproliferation

                     Legislative Provisions Adopted

                    Subtitle A--Arms Control Matters

     One-year extension of limitation on retirement or 
         dismantlement of strategic nuclear delivery systems (sec. 
         1501)
       The Senate amendment contained a provision (sec. 1043) that 
     would extend by one year section 1302(e) of the National 
     Defense Authorization Act for Fiscal Year 1998 (Public Law 
     105-85).
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Transmission of executive branch reports providing Congress 
         with classified summaries of arms control developments 
         (sec. 1502)
       The House bill contained a provision (sec. 1032) that would 
     direct the Director of the Arms Control and Disarmament 
     Agency (ACDA), or the Secretary of State (if ACDA is merged 
     into the Department of State), to submit reports to Congress 
     on a periodic basis summarizing the status of negotiations on 
     arms control matters, and developments in the various arms 
     control forums, in which the United States is a participant. 
     These forums include the Joint Compliance and Inspection 
     Commission, the Joint Verification Commission, the Open Skies 
     Consultative Commission, the Standing Consultative 
     Commission, and the Joint Consultative Group.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Report on adequacy of emergency communications capabilities 
         between the United States and Russia (sec. 1503)
       The Senate amendment contained a provision (sec. 1044) that 
     would express the sense of the Congress that a direct line of 
     communications between U.S. and Russian commanders of 
     strategic forces would be a useful confidence building tool, 
     and would require the Secretary of Defense to submit a report 
     to the Committee on Armed Services of the Senate and the 
     House Committee on National Security on the feasibility of 
     initiating discussions between the United States and Russia 
     on such a direct line of communication.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense to submit a report within three months 
     of enactment of this Act on the status and adequacy of 
     current direct communications capabilities between the 
     governments of the United States and the Russian Federation. 
     The report is to include recommendations for improvements, if 
     necessary, to improve direct communications capabilities. In 
     addition, the report would include an assessment of the 
     feasibility and the desirability of establishing 
     communications links between United States commanders in 
     chief and their Russian counterparts.
     Russian nonstrategic nuclear weapons (sec. 1504)
       The Senate amendment contained a provision (sec. 1070) that 
     would express concerns of the Senate that the Russian 
     nonstrategic nuclear arsenal, estimated to include around 
     7,000 to 12,000 tactical nuclear weapons, may pose a great 
     threat in the world if they are sold or are stolen, and could 
     become strategically destabilizing. Since the end of the Cold 
     War, the United States has unilaterally reduced its tactical 
     nuclear stockpile by almost ninety percent, and the Senate 
     calls on the Russian Federation to live up to its pledges in 
     1991 and 1992 to implement steep reductions in its tactical 
     nuclear stockpile. The provision would require the Secretary 
     of Defense to submit a report to the Congress by March 15, 
     1999 on the current Russian Federation tactical nuclear 
     stockpile, including an assessment of the strategic 
     implications of using tactical nuclear weapons in a strategic 
     role, as well as an assessment of the Russian command and 
     control of its tactical nuclear stockpile and the threat 
     posed by the possible sale, or theft of tactical nuclear 
     weapons, and past, current and planned efforts of the United 
     States to work cooperatively with the Russian Federation to 
     reduce its tactical nuclear stockpile and related fissile 
     material.
       The House bill contained no similar provision.
       The House recedes with an amendment that would express the 
     concerns of the Congress that the vast Russian Federation 
     tactical nuclear stockpile poses a grave threat to the world, 
     and that the Russian Federation should live up to its pledges 
     in 1991 and 1992 to significantly reduce its tactical nuclear 
     stockpile.
       In addition, the conferees direct the Secretary of Defense 
     to submit a report to the Congress by March 15, 1999, 
     including the views of the Director of Central Intelligence 
     and the commander of the United States Strategic Command, on 
     the current Russian Federation tactical nuclear stockpile, 
     assessing the strategic and destabilizing implications of the 
     use of tactical nuclear weapons used in a strategic role. In 
     addition, the report should include an analysis of Russia's 
     command and control of its tactical nuclear stockpile, and 
     the threat posed by the theft, sale or unauthorized use of 
     the warheads of these weapons. Lastly, the report should 
     include a summary of past, current, and planned U.S. efforts 
     to assist Russia in reducing its stockpile, as well as a 
     summary of how the United States would cope militarily if 
     Russia threatens to employ or actually use its tactical 
     nuclear weapons in a regional conflict involving the United 
     States or its allies.

                 Subtitle B--Satellite Export Controls

     Satellite export controls (secs. 1511-1516)
       The House bill contained provisions (secs. 1206-1209 and 
     1212) regarding the export of satellites of U.S. origin and 
     their launch on space launch vehicles owned by the People's 
     Republic of China (PRC). The provisions would prohibit the 
     participation of U.S. persons in the investigations of 
     satellite launch

[[Page H8412]]

     failures; prohibit the export of missile equipment and 
     technology to the PRC; prohibit the export or reexport of 
     satellites, information, equipment and technology to the PRC; 
     and transfer the jurisdiction for licensing the export of 
     satellites and satellite components to the Department of 
     State.
       The Senate amendment contained no similar provisions.
       The conferees agree to transfer the jurisdiction for the 
     export of satellites to the U.S. Munitions List, administered 
     by the Department of State, effective March 15, 1999, and 
     direct the Secretary of State, in consultation with the 
     Secretary of Defense and the Secretary of Commerce, to report 
     to the Congress by January 1, 1999 on steps necessary to 
     implement the transfer in a manner that will permit timely 
     and orderly processing of applications for export licenses, 
     consistent with current law. The conferees understand that 
     the transfer of these advanced technologies to the 
     jurisdiction of the Department of State may result in the 
     need for additional personnel to assist in the evaluation of 
     license applications. To provide additional resources for 
     this purpose, the conferees agree to a provision that would 
     amend section 45 of the State Department Basic Authorities 
     Act of 1956 to allow the Office of Defense Trade Controls of 
     the Department of State to retain all registration fees, 
     which are to be used for the payment of expenses incurred in 
     acquiring additional personnel to evaluate and process 
     license applications, as well as to improve the monitoring of 
     compliance with the terms of the licenses.
       The conferees also agree to a provision that would require 
     the President to certify to Congress in advance of any export 
     to the PRC of missile technology or equipment, as defined in 
     section 74 of the Arms Export Control Act, that the export 
     will not be detrimental to the U.S. space launch industry and 
     that the export will not measurably improve the missile or 
     space launch capabilities of the PRC. The conferees note 
     that this certification is not, and is not intended to be, 
     a prohibition on the export of U.S. satellites to be 
     launched by the PRC, but is intended to ensure that U.S. 
     national security would not be jeopardized by any such 
     export.
       In addition to the transfer of jurisdiction to the U.S. 
     Munitions List, the conferees direct the President to 
     implement a series of actions to improve the national 
     security controls on the export licensing of satellites and 
     their related items not later than 45 days after enactment of 
     this Act. These actions include, among other requirements, 
     ensuring the full reimbursement to the Department of Defense 
     for the costs of providing launch monitoring services, to 
     ensure that no unauthorized transfer of technology occurs, by 
     the person or entity receiving such services with respect to 
     a satellite launch in a foreign country. The provision also 
     requires the Secretary of Defense to establish a program to 
     recruit, train and maintain a staff of personnel dedicated to 
     monitoring foreign launches of U.S. satellites. The conferees 
     agree to provide an exception to these increased national 
     security controls to countries that are members of NATO or 
     are major non-NATO allies of the United States.
       The President is authorized by section 902 of the Foreign 
     Relations Authorization Act for Fiscal Years 1990 and 1991 to 
     waive certain restrictions regarding the export of satellites 
     to China, but must report to the Congress on the waiver of 
     these restrictions. In addition to the report required by 
     section 902(b), the conferees agree that a detailed 
     justification shall accompany this report setting forth 
     information related to the militarily-sensitive 
     characteristics integrated within or associated with the 
     satellite, an estimate of the number of U.S. personnel 
     necessary in-country to monitor the proposed launch, a 
     description of the U.S. Government's plan to monitor the 
     proposed launch, the estimated cost to the Department of 
     Defense to provide monitors for the launch and the amount to 
     be reimbursed to the Department, and the national security 
     interests for launching the satellite in a foreign country. 
     The conferees direct the President to include information in 
     the report regarding the impact of the export of satellites 
     to the PRC on U.S. employment, including the creation of jobs 
     in the United States or, in the event of a denial of an 
     export license, the loss of jobs in the United States. 
     Additionally, the report is to include information related to 
     the balance of trade between the United States and the PRC 
     and the transition of the PRC from a nonmarket economy to a 
     market economy.
       Lastly, the conferees understand that, with transfer of 
     satellites and related items to the U.S. Munitions List, and 
     the enhanced role of the Department of Defense in export 
     control activities, there may be a requirement for additional 
     personnel in the Defense Technology Security Administration 
     (DTSA) (or any successor organization), to assist in the 
     evaluation of license applications, as well as to monitor the 
     foreign launches of U.S. satellites. The conferees expect the 
     Department to include in its report to the congressional 
     defense committees any requirements for additional personnel. 
     Additionally, the conferees believe that the Department may 
     have available through the On-Site Inspection Agency (OSIA) 
     personnel who would be suitable to perform such monitoring 
     tasks, as required by this Act, and direct the Department to 
     report on the possibility of using OSIA personnel in the 
     monitoring of foreign launches, as well as in the evaluation 
     of, and compliance with, license applications.
       The conferees emphasize that the agreement to transfer 
     commercial communication satellites and their related items 
     from the Commerce Control List to the Munitions List is not 
     done with the intention of penalizing or harming an important 
     U.S. industry or the competitive posture of the U.S. 
     satellite industry. Rather, it is the intention of the 
     conferees to affirm the importance of U.S. national security 
     interests in considering the export of advanced technology to 
     foreign countries, which might enhance or contribute to their 
     military capabilities.

                Subtitle C--Other Export Control Matters

     Authority for export control activities of the Department of 
         Defense (sec. 1521)
       The House bill contained a provision (sec. 904) that would 
     invest in the Under Secretary of Defense for Policy 
     responsibility for the overall supervision of activities of 
     the Department of Defense relating to export controls and 
     require a report on the plans of the Secretary of Defense to 
     implement this provision.
       The Senate amendment contained no similar provision.
       The conferees agree to a provision that would establish a 
     Deputy Under Secretary of Defense for Technology Security 
     Policy, whose principal responsibilities would include the 
     supervision and direction of activities of the Defense 
     Technology Security Administration, or any successor 
     organization charged with similar responsibilities, and other 
     activities of the Department of Defense related to export 
     controls. Because the position does not require Senate 
     confirmation, the conferees express their view that this 
     position be filled by a qualified individual with knowledge 
     of the military implications of technology exports. The 
     Secretary of Defense would be required to report to the 
     congressional defense committees on the plans for 
     implementing this provision, to include any organizational 
     changes to the Department, and a description of the role of 
     the Chairman of the Joint Chiefs of Staff in the export 
     control activities of the Department of Defense.
     Release of export information by the Department of Commerce 
         to other agencies for the purpose of national security 
         assessment (sec. 1522)
       The House bill contained a provision (sec. 1213) that would 
     require the Secretary of Commerce to transmit post-export 
     information to the Director of Central Intelligence, the 
     Secretary of Defense, and the Secretary of Energy for the 
     purpose of conducting national security risk assessments 
     within five days of receiving a request for such 
     information. The provision would also allow the Director 
     of Central Intelligence, the Secretary of Defense, and the 
     Secretary of Energy to delegate authority to other 
     officials within their respective departments or agencies 
     to request such information from the Department of 
     Commerce.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Department of Commerce to respond within 10 days of receiving 
     a request for such information in order to conduct national 
     security risk assessments. The amendment would expand the 
     officials authorized to request information that is necessary 
     to conduct national security risk assessments, to include the 
     Secretary of State.
     Nuclear export reporting requirement (sec. 1523)
       The House bill contained a provision (sec. 1216) that would 
     require prior congressional notification of the export or 
     retransfer of special nuclear materials or production 
     facilities, as defined by the Atomic Energy Agency Act of 
     1954, to any country that is not a member of the Organization 
     for Economic Cooperation and Development. The notification 
     would be accompanied by a report describing the details of 
     the proposed export, and would be submitted to the Congress 
     at least 30 days prior to the proposed export unless the 
     President determines that an emergency exists which requires 
     its immediate approval.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     President to notify Congress upon the granting of a license 
     for the export or re-export of nuclear material, technology 
     or equipment by the Nuclear Regulatory Commission to 
     countries determined by the President to have detonated 
     nuclear explosive devices and that are not members of the 
     North Atlantic Treaty Organization (NATO).
     Execution of objection authority within the Department of 
         Defense (sec. 1524)
       The House bill contained a provision (sec. 1214) that would 
     amend section 1211 of the National Defense Authorization Act 
     for Fiscal Year 1998 to provide authority to the Secretary of 
     Defense to delegate objection authority to a Department of 
     Defense official at the Assistant Secretary level with regard 
     to the export or re-export of digital computers with a 
     composite theoretical performance level of more than 2000 
     millions of theoretical operations per second (MTOPS), or 
     such other composite theoretical performance level that may 
     be subsequently established by the President.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.

[[Page H8413]]

                Subtitle D--Counterproliferation Matters

     One-year extension of counterproliferation authorities for 
         support of United Nations Special Commission on Iraq 
         (sec. 1531)
       The House bill contained a provision (sec. 1204) that would 
     extend the authority of the Department of Defense to provide 
     support to the United Nations Special Commission on Iraq 
     (UNSCOM) under the Weapons of Mass Destruction Control Act of 
     1992 for one year.
       The Senate amendment contained a similar provision (sec. 
     1042).
       The Senate recedes with a clarifying amendment.
       The conferees support the extension of this authority given 
     efforts by Iraq to preserve a weapons of mass destruction 
     capability and its interference with the work of the Special 
     Commission. The conferees raise concerns that the weapons 
     inspection process has been hampered by Iraq's flagrant 
     violation of its obligations under the United Nations 
     Security Council resolutions and its efforts to seek 
     modifications to the inspections regime through the expulsion 
     of U.S. inspectors and the suspension of the monitoring 
     program.
       The conferees endorse concerns expressed in the House 
     report (H. Rept. 105-532) regarding continued provision of 
     support by the Department of Defense for UNSCOM activities. 
     The conferees agree that the United States should more 
     vigorously undertake efforts to negotiate an agreement with 
     the United Nations to reimburse the Department of Defense for 
     expenses incurred in providing support to UNSCOM.
       The conferees direct the Secretary of Defense, in 
     consultation with the Secretary of State, to submit a report 
     to the congressional defense committees by December 1, 1998 
     describing the efforts undertaken by the Department of 
     Defense to seek reimbursement, the specific support 
     activities for which reimbursement would be requested, and 
     the results of discussions with United Nations officials on 
     the request of the United States Government.
     Sense of Congress on Nuclear Tests in South Asia (sec. 1532)
       The Senate amendment contained a provision (sec. 1071) that 
     would express the sense of the Senate with regard to 
     condemning India and Pakistan for testing nuclear devices and 
     calling for cessation of nuclear testing, steps to prevent 
     the transfer of technology that could further exacerbate the 
     arms race in South Asia, U.S. and international mediation to 
     promote peace and stability in South Asia and to resolve the 
     dispute over Kashmir, the reevaluation of U.S. bilateral 
     relations with both nations, and for India and Pakistan to 
     establish active dialogue on differences to minimize the 
     potential for future conflict.
       The House bill contained no similar provision.
       The House recedes with an amendment that would update and 
     clarify the provision as a sense of Congress.
     Report on requirements for response to increased missile 
         threat in Asia-Pacific region (sec. 1533)
       The Senate amendment contained a provision (sec. 1086) that 
     would require the Secretary of Defense to conduct a study of 
     architecture requirements for the establishment and 
     operation of a theater ballistic missile defense system in 
     the Asia-Pacific region that would have the capability to 
     protect key regional allies of the United States.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
       The conferees understand the phrase ``key regional allies 
     of the United States'' to include Japan, South Korea, and 
     Taiwan.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS


                                OVERVIEW

       The budget request for fiscal year 1999 included 
     $7,778,074,000 for military construction and family housing.
       The House bill would authorize $8,228,074,000 for military 
     construction and family housing.
       The Senate amendment would provide $8,463,940,000 for this 
     purpose.
       The conferees recommend authorization of appropriations of 
     $8,443,742,000 for military construction and family housing, 
     including general reductions and termination of prior year 
     projects.

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[[Page H8432]]



  Amended Budget Estimates--FY 1999 BRAC Military Construction Projects
                        [In thousands of dollars]
------------------------------------------------------------------------
      Component/State/Project Description        BRAC round     Amount
------------------------------------------------------------------------
              NAVY BRAC III CONSTRUCTION, FISCAL YEAR 1999
 
Nevada:
    Naval Air Station, Fallon:
        Bachelor Office Quarters Phase II (P-           III       11,100
         XX1T)................................
                                               -------------------------
          Subtotal Navy Nevada................  ...........       11,100
          Total for Navy Construction, FY 1999  ...........       11,100
 
               ARMY BRAC IV CONSTRUCTION, FISCAL YEAR 1999
 
Alaska:
    Fort Greely:
        Munitions Storage Facility (PN 47461).           IV        1,550
                                               -------------------------
          Subtotal Army Alaska................  ...........        1,550
Colorado:
    Fitzsimons Army Medical Center:
        Warehouse Addition (PN 47653).........           IV        1,550
        Reserve Center (PN 50296).............           IV        2,750
                                               -------------------------
          Subtotal Army Colorado..............  ...........        4,300
Indiana:
    Crane Army Ammunition Activity:
        Surveillance Test Facility (PN 50057).           IV        1,850
                                               -------------------------
          Subtotal Army Indiana...............  ...........        1,850
Maryland:
    Fort Detrick:
        Physical Fitness Center (PN 48153)....           IV        3,050
    Fort Meade:
        Administrative Facility DIS (PN 46307)           IV       12,000
        Administrative Facility ESSD                     IV        2,900
         Renovation (PN 47770)................
        SDC-W Renovation--Pershing Hall (PN              IV        6,300
         47237)...............................
                                               -------------------------
          Subtotal Army Maryland..............  ...........       24,250
New York:
    Fort Totten:
        Storage Facility (PN 46258)...........           IV        1,900
                                               -------------------------
          Subtotal Army New York..............  ...........        1,900
Pennsylvania:
    Letterkenny Army Depot:
        Enclave Fencing (PN 49714)............           IV        1,150
                                               -------------------------
          Subtotal Army Pennsylvania..........  ...........        1,150
Virginia:
    Fort Pickett:
        Reserve Center (PN-46354).............           IV        3,100
    Fort Lee:
        WAC Museum (PN 50091).................           IV        2,400
                                               -------------------------
          Subtotal Army Virginia..............  ...........        5,500
Various Locations:
    Program Management........................           IV        2,350
                                               -------------------------
          Subtotal Army Various...............  ...........        2,350
          Total for Army BRAC IV Construction,  ...........       42,850
           FY 1999............................
 
            ARMY BRAC IV FAMILY HOUSING CONSTRUCTION, FY 1999
 
Alaska:
    Fort Wainwright:
        Family Housing (PN 47530).............           IV        1,700
                                               -------------------------
          Subtotal Army Family Housing Alaska.  ...........        1,700
          Total Army Family Housing             ...........        1,700
           Construction, FY 1999..............
 
                   NAVY BRAC IV CONSTRUCTION, FY 1999
 
California:
    Naval Air Weapons Station, Point Mugu:
        Aviation Support Facilities (260U)....           IV        1,500
        Maintenance and Training Facilities              IV       12,800
         (261U)...............................
                                               -------------------------
          Subtotal Navy California............  ...........       14,300
District of Columbia:
    Naval District of Washington:
        NAVSEASYSCOM Headquarters Building               IV       71,543
         Relocation (009U)....................
          Subtotal Navy District of Columbia..  ...........       71,543
Hawaii:
    Naval Telecommunications Center, Makalapa:
        Building Addition (411U)..............           IV          920
                                               -------------------------
          Subtotal Navy Hawaii................  ...........          920
New Jersey:
    McGuire AFB:
        Defense Courier Service Building                 IV          850
         (935U)...............................
                                               -------------------------
          Subtotal Navy New Jersey............  ...........          850
Tennessee:
    Naval Support Activity, Memphis:
        Building Renovation (329U)............           IV        4,200
                                               -------------------------
          Subtotal Navy Tennessee.............  ...........        4,200
Texas:
    Naval Air Station, Corpus Christi:
        Sled Ramp Facility and Land                      IV       13,313
         Acquisition (421U)...................
                                               -------------------------
          Subtotal Navy Texas.................  ...........       13,313
Virginia:
    Naval Station, Norfolk:
        Building Renovations and Alterations             IV        3,970
         (317U)...............................
    Naval Air Station, Oceana:
        Strike Fighter Weapons School                    IV        4,073
         Additions (163U).....................
                                               -------------------------
          Subtotal Navy Virginia..............  ...........        8,430
          Total for Navy BRAC IV Construction,  ...........      131,169
           FY 1999............................
 
                 AIR FORCE BRAC IV CONSTRUCTION, FY 1999
 
New York:
    Stewart International Airport:
        Communications Training Complex (WHAY            IV        6,000
         959635)..............................
                                               -------------------------
          Subtotal Air Force New York.........  ...........        6,000
Oklahoma:
    Tinker AFB:
        Alter Product Management (WWYK990032).           IV        2,300
        Alter Engine Test Cell (WWYK993200)...           IV        3,800
        ADAL Fuel Air Facility (WWYK993201A)..           IV        1,300
                                               -------------------------
          Subtotal Air Force Oklahoma.........  ...........        7,400
Texas:
    Kelly AFB:
        Security Fence/Gates (MBPB 993205R1)..           IV          400
        Vehicle OPS/Maintenance Complex (MBPB            IV        6,200
         993213R1)............................
        Fuel Operations Facility (MBPB                   IV        1,200
         993214R1)............................
        Reconfigure Utility Systems (MBPB                IV        2,500
         993230)..............................
                                               -------------------------
          Subtotal Air Force Texas............  ...........       10,300
Utah:
    Hill AFB:
        GTE Test Cell (KRSM 993009)...........           IV        2,100
        Alter Product Management/Composites              IV        5,300
         (KRSM983102).........................
        F-117 Radar Facility (KRSM 983002)....           IV        1,100
                                               -------------------------
          Subtotal Air Force Utah.............  ...........        8,500
Various Locations:
        Planning and Design (BCL 99RD4).......           IV          700
                                               -------------------------
          Subtotal Air Force Various..........  ...........          700
          Total Air Force BRAC IV               ...........       32,900
           Construction, FY 1999..............
 
         DEFENSE LOGISTICS AGENCY BRAC IV CONSTRUCTION, FY 1999
 
Utah:
    Defense Distribution Region West Defense
     Depot Hill, UT:
        Deployable Medical Systems Warehouse..           IV       31,000
                                               -------------------------
          Subtotal Defense Logistics Agency     ...........       31,000
           Utah...............................
          Total Defense Logistics Agency        ...........       31,000
           Construction, FY 1999..............
------------------------------------------------------------------------

                            Title XXI--Army

                            Fiscal Year 1999

     Overview
       The House bill would authorize $2,010,036,000 for Army 
     military construction and family housing programs for fiscal 
     year 1999.
       The Senate amendment would authorize $2,037,965,000 for 
     this purpose.
       The conferees recommend authorization of appropriations of 
     $2,098,713,000 for Army military construction and family 
     housing for fiscal year 1999.
       The conferees agree to general reductions of $13,639,000 in 
     the authorization of appropriations for the Army military 
     construction and military family housing accounts. The 
     reductions are to be offset by savings from favorable bids, 
     reduced overhead costs, and cancellations due to force 
     structure changes. The general reductions shall not cancel 
     any military construction authorized by title XXI of this 
     Act.


                       ITEMS OF SPECIAL INTEREST

     Improvements of Military Family Housing, Army
       The conferees recommend that, within authorized amounts for 
     improvements to military family housing and facilities, the 
     Secretary of the Army execute the following projects: 
     $7,400,000 for Whole Neighborhood Revitalization (40 units) 
     at Fort Richardson, Alaska; $8,800,000 for Whole Neighborhood 
     Revitalization Phase II (104 units) at Fort Campbell, 
     Kentucky; and $3,650,000 for Whole Neighborhood 
     Revitalization (36 units) at White Sands Missile Range, New 
     Mexico.

                     Legislative Provisions Adopted

     Authorized Army construction and land acquisition projects 
         (sec. 2101)
       The House bill contained a provision (sec. 2101) that would 
     authorize Army construction projects for fiscal year 1999. 
     The authorized amounts are listed on an installation-by-
     installation basis.
       The Senate amendment contained a similar provision.
       The conference agreement includes a similar provision.
       The authorized amounts are listed on a installation-by-
     installation basis. The state list contained in this report 
     is intended to be the binding list of the specific projects 
     authorized at each location.
     Family housing (sec. 2102)
       The House bill included a provision (sec. 2102) that would 
     authorize new construction and planning and design of family 
     housing units for the Army for fiscal year 1999. The 
     authorized amounts are listed on an installation-by-
     installation basis.
       The Senate amendment contained a similar provision.
       The conference agreement includes a similar provision.
       The authorized amounts are listed on a installation-by-
     installation basis. The state list contained in this report 
     is intended to be the binding list of the specific projects 
     authorized at each location.
     Improvements to military family housing units (sec. 2103)
       The House bill contained a provision (sec. 2103) that would 
     authorize improvements to existing units of family housing 
     for fiscal year 1999.
       The Senate amendment contained a similar provision.
       The conference agreement includes a similar provision.
     Authorization of appropriations, Army (sec. 2104)
       The House bill contained a provision (sec. 2104) that would 
     authorize specific appropriations for each line item 
     contained in the Army's budget for fiscal year 1999. This 
     section would also provide an overall limit on the amount the 
     Army may spend on military construction projects.
       The Senate amendment contained a similar provision.
       The conference agreement includes a similar provision.
     Modification of authority to carry out fiscal year 1998 
         projects (sec. 2105)
       The House bill contained a provision (sec. 2105) that would 
     amend the table in section 2101 of the Military Construction 
     Authorization Act for Fiscal Year 1998 (division B of Public 
     Law 105-85) to provide for an increase in the amount 
     authorized for the construction of an aerial gunnery range at 
     Fort Drum, New York, and a whole barracks complex renewal at 
     Fort Sill, Oklahoma.
       The Senate amendment contained a provision (sec. 2105) that 
     would provide for an increase in the amount authorized for 
     the construction of the whole barracks complex renewal at 
     Fort Sill, Oklahoma, due to a change in scope.
       The Senate recedes with a technical amendment.

                            Title XXII--Navy

                            Fiscal Year 1999

     Overview
       The House bill would authorize $1,776,726,000 for Navy 
     military construction

[[Page H8433]]

     and family housing programs for fiscal year 1999.
       The Senate amendment would authorize $1,762,298,000 for 
     this purpose.
       The conferees recommend authorization of appropriations of 
     $1,812,476,000 for Navy military construction and family 
     housing for fiscal year 1999.
       The conferees agree to general reductions of $16,323,000 in 
     the authorization of appropriations for the Navy military 
     construction and military family housing accounts. The 
     reductions are to be offset by savings from favorable bids, 
     reduction in overhead costs, and cancellation of projects due 
     to force structure changes. The general reductions shall not 
     cancel any military construction authorized by title XXII of 
     this Act.


                       ITEMS OF SPECIAL INTEREST

     Improvements of military family housing, Navy
       The conferees recommend that, within authorized amounts for 
     improvements to military family housing and facilities, the 
     Secretary of the Navy execute the following projects: 
     $10,000,000 for family housing improvements (171 units) at 
     Marine Corps Base, Camp Pendleton, California; and $5,800,000 
     for family housing improvements (80 units) at Naval Air 
     Station, Whidbey Island, Washington.

                     Legislative Provisions Adopted

     Authorized Navy construction and land acquisition projects 
         (sec. 2201)
       The House bill contained a provision (sec. 2201) that would 
     authorize Navy construction projects for fiscal year 1999. 
     The authorized amounts are listed on an installation-by-
     installation basis.
       The Senate amendment contained a similar provision.
       The conference agreement includes a similar provision.
       The authorized amounts are listed on a installation-by-
     installation basis. The state list contained in this report 
     is intended to be the binding list of the specific projects 
     authorized at each location.
     Family housing (sec. 2202)
       The House bill contained a provision (sec. 2202) that would 
     authorize new construction and planning and design of family 
     housing units for the Navy for fiscal year 1999. The 
     authorized amounts are listed on an installation-by-
     installation basis.
       The Senate amendment contained a similar provision.
       The conference agreement includes a similar provision.
       The authorized amounts are listed on a installation-by-
     installation basis. The state list contained in this report 
     is intended to be the binding list of the specific projects 
     authorized at each location.
     Improvements to military family housing units (sec. 2203)
       The House bill contained a provision (sec. 2303) that would 
     authorize improvements to existing units of family housing 
     for fiscal year 1999. The authorized amounts are listed on an 
     installation-by-installation basis.
       The Senate amendment contained a similar provision.
       The conference agreement includes a similar provision.
     Authorization of appropriations, Navy (sec. 2204)
       The House bill contained a provision (sec. 2204) that would 
     authorize specific appropriations for each line item in the 
     Navy's budget for fiscal year 1999. This section would also 
     provide an overall limit on the amount the Navy may spend on 
     military construction projects.
       The Senate amendment contained a similar provision.
       The conference agreement includes a similar provision.
     Authorization to accept road construction project, Marine 
         Corps Base, Camp Lejeune, North Carolina (sec. 2205)
       The House bill contained a provision (sec. 2205) that would 
     authorize the Secretary of the Navy to accept a road 
     construction project valued at $2,000,000 from the State of 
     North Carolina at Marine Corps Base, Camp Lejeune, North 
     Carolina.
       The Senate amendment contained no similar provision.
       The Senate recedes.

                         Title XXIII--Air Force

                            Fiscal Year 1999

     Overview
        The House bill would authorize $1,577,264,000 for Air 
     Force military construction and family housing programs for 
     fiscal year 1999.
        The Senate amendment would authorize $1,729,050,000 for 
     this purpose.
        The conferees recommend authorization of appropriations of 
     $1,679,978,000 for Air Force military construction and family 
     housing for fiscal year 1999.
        The conferees agree to general reductions of $24,584,000 
     in the authorization of appropriations for the Air Force 
     military construction and military family housing accounts. 
     The reductions are to be offset by savings from favorable 
     bids, reduction in overhead costs, and cancellation of 
     projects due to force structure changes. The general 
     reductions shall not cancel any military construction 
     authorized by title XXIII of this Act.


                       ITEMS OF SPECIAL INTEREST

     Improvements of military family housing, Air Force
       The conferees recommend that, within authorized amounts for 
     improvements to military family housing and facilities, the 
     Secretary of the Air Force execute the following projects: 
     $5,220,000 for family housing improvements (68 units) at 
     Moody Air Force Base, Georgia; $8,000,000 for family housing 
     improvements (70 units) at Seymour Johnson Air Force Base, 
     North Carolina; and $9,110,000 for family housing 
     improvements (94 units) at Charleston Air Force Base, South 
     Carolina.

                     Legislative Provisions Adopted

     Authorized Air Force construction and land acquisition 
         projects (sec. 2301)
       The House bill contained a provision (sec. 2301) that would 
     authorize Air Force construction projects for fiscal year 
     1999. The authorized amounts are listed on an installation-
     by-installation basis.
       The Senate amendment contained a similar provision.
       The conference agreement includes a similar provision.
       The authorized amounts are listed on a installation-by-
     installation basis. The state list contained in this report 
     is intended to be the binding list of the specific projects 
     authorized at each location.
     Family housing (sec. 2302)
       The House bill contained a provision (sec. 2302) that would 
     authorize new construction and planning and design of family 
     housing units for the Air Force for fiscal year 1999.
       The Senate amendment contained a similar provision.
       The conference agreement includes a similar provision.
       The authorized amounts are listed on a installation-by-
     installation basis. The state list contained in this report 
     is intended to be the binding list of the specific projects 
     authorized at each location.
     Improvements to military family housing units (sec. 2303)
       The House bill contained a provision (sec. 2303) that would 
     authorize improvements to existing units of family housing 
     for fiscal year 1999.
       The Senate amendment contained a similar provision.
       The conference agreement includes a similar provision.
     Authorization of appropriations, Air Force (sec. 2304)
       The House bill contained a provision (sec. 2304) that would 
     authorize specific appropriations for each line item in the 
     Air Force's budget for fiscal year 1999. This section would 
     also provide an overall limit on the amount the Air Force may 
     spend on military construction projects.
       The Senate amendment contained a similar provision.
       The conference agreement includes a similar provision.

                      Title XXIV--Defense Agencies

                            Fiscal Year 1999

     Overview
       The House bill would authorize $648,664,000 for Defense 
     Agencies military construction and family housing programs 
     for fiscal year 1999. The bill would also authorize 
     $1,730,704,000 for base closure activities.
       The Senate amendment would authorize $607,919,000 for this 
     purpose. The amendment would also authorize $1,725,704,000 
     for base closure activities.
       The conferees recommend authorization of appropriations of 
     $585,358,000 for Defense Agencies military construction and 
     family housing for fiscal year 1999. The conferees also 
     recommend authorization of appropriations of $1,630,902,000 
     for base closure activities.
       The conferees agree to a general reduction of $13,300,000 
     in the authorization of appropriations for the Defense 
     Agencies military construction account. The general reduction 
     is to be offset by savings from favorable bids and reduction 
     in overhead costs. The conferees further agree to a general 
     reduction of $50,500,000 in the authorization of 
     appropriations for the chemical demilitarization program. The 
     reduction to the entire chemical demilitarization program is 
     based on unobligated prior year funds and delays in obtaining 
     the required environmental and construction permits. The 
     general reductions shall not cancel any military construction 
     projects authorized by title XXIV of this Act.
       The conferees agree to terminate $5,000,000 in prior year 
     authorization for the Military Unaccompanied Housing 
     Improvement Fund. The termination is due to the absence of 
     specific project activity under this account.
       The conferees agree to a general reduction of $33,102,000 
     in the authorization of appropriations for the Base Closure 
     and Realignment Accounts based on approved cost variations 
     which accelerated six construction projects from fiscal year 
     1999 to fiscal year 1998. The conferees agree to an 
     additional general reduction of $31,000,000 based on revised 
     economic assumptions. The conferees are aware that the 
     military departments have collected $35,700,000 more in 
     proceeds from land sales and leases at closing or realigning 
     bases than reported in the fiscal year 1999 budget request 
     and recommend an adjustment in the accounts to accommodate 
     these revenues.

                     Legislative Provisions Adopted

     Authorized Defense Agencies construction and land acquisition 
         projects (sec. 2401)
       The House bill contained a provision (sec. 2401) that would 
     authorize defense agencies

[[Page H8434]]

     construction projects for fiscal year 1999. The authorized 
     amounts are listed on an installation-by-installation basis.
       The Senate amendment contained a similar provision.
       The conference agreement includes a similar provision.
       The authorized amounts are listed on a installation-by-
     installation basis. The state list contained in this report 
     is intended to be the binding list of the specific projects 
     authorized at each location.
     Improvements to military family housing units (sec. 2402)
       The House bill contained a provision (sec. 2402) that would 
     authorize the Secretary of Defense to make improvements to 
     existing units of family housing for fiscal year 1999.
       The Senate amendment contained a similar provision.
       The conference agreement includes a similar provision.
     Energy conservation projects (sec. 2403)
       The House bill contained a provision (sec. 2403) that would 
     authorize the Secretary of Defense to carry out energy 
     conservation projects.
       The Senate amendment contained an identical provision.
       The conference agreement includes this provision.
     Authorization of appropriations, Defense Agencies (sec. 2404)
       The House bill contained a provision (sec. 2404) that would 
     authorize specific appropriations for each line item in the 
     Defense Agencies' budget for fiscal year 1999. This section 
     would also provide an overall limit on the amount the Defense 
     Agencies may spend on military construction projects.
       The Senate amendment contained a similar provision.
       The conference agreement includes a similar provision.
     Repeal of fiscal year 1997 authorization of appropriations 
         for certain military housing improvement program (sec. 
         2405)
       The conferees include a provision which would amend section 
     2406(a) of the Military Construction Authorization Act for 
     Fiscal Year 1997 (division B of Public Law 104-201) to reduce 
     the funding for the Department of Defense Military 
     Unaccompanied Housing Improvement Fund by $5,000,000. The 
     amendment would also make certain conforming changes to 
     section 2404 of that Act.
     Modification of authority to carry out certain fiscal year 
         1995 projects (sec. 2406)
       The House bill contained a provision (sec. 2405) that would 
     amend the table in section 2401 of the Military Construction 
     Authorization Act for Fiscal Year 1995 (division B of Public 
     Law 103-337), as amended, to provide for an increase in the 
     amount authorized for military construction projects to 
     support chemical weapons and munitions destruction at Pine 
     Bluff Arsenal, Arkansas, and Umatilla Army Depot, Oregon.
       The Senate amendment contained a similar provision.
       The House recedes.
     Modification of authority to carry out fiscal year 1990 
         project (sec. 2407)
       The House bill contained a provision (sec. 2406) that would 
     amend the table in section 2401 of the Military Construction 
     Authorization Act for Fiscal Years 1990 and 1991 (division B 
     of Public Law 100-189) to provide for an increase in the 
     amount authorized for the construction of a replacement 
     hospital at Naval Hospital, Portsmouth, Virginia.
       The Senate amendment contained a similar provision.
       The Senate recedes with a clarifying amendment.

   Title XXV--North Atlantic Treaty Organization Security Investment 
                                Program

                            Fiscal Year 1999

     Overview
       The House bill would authorize $169,000,000 for the U.S. 
     contribution to the NATO Security Investment Program for 
     fiscal year 1999.
       The Senate amendment would authorize $158,000,000 for this 
     purpose.
       The conferees agree to authorize $154,000,000 million for 
     the U.S. contribution to the NATO Security Investment 
     Program.


                     Legislative Provisions Adopted

     Authorized North Atlantic Treat Organization (NATO) 
         construction and land acquisition projects (sec. 2501)
       The House bill contained a provision (sec. 2501) that would 
     authorize the Secretary of Defense to make contributions to 
     the North Atlantic Treaty Organization Security Investment 
     program in an amount equal to the sum of the amount 
     specifically authorized in section 2502 of H.R. 3616 and the 
     amount of recoupment due to the United States for 
     construction previously financed by the United States.
       The Senate amendment contained an identical provision.
       The conference agreement includes this provision.
     Authorization of appropriations, NATO (sec. 2502)
       The House bill contained a provision (sec. 2502) that would 
     authorize appropriations of $169,000,000 as the United States 
     contribution to the North Atlantic Treaty Organization (NATO) 
     Security Investment Program.
       The Senate would authorize $158,000,000 for this purpose.
       The conferees agree to authorize $154,000,000 for the 
     United States contribution to the NATO Security Investment 
     Program.

            Title XXVI--Guard and Reserve Forces Facilities

                            Fiscal Year 1999

     Overview
       The House bill would authorize $309,025,000 for military 
     construction and land acquisition for fiscal year 1999 for 
     the Guard and Reserve components.
       The Senate amendment would authorize $443,622,000 for this 
     purpose.
       The conferees recommend authorization of appropriations of 
     $480,315,000 for military construction and land acquisition 
     for fiscal year 1999. This authorization would be distributed 
     as follows:

Army National Guard........................................$142,403,000
Army Reserve................................................102,119,000
Naval and Marine Corps Reserve...............................31,621,000
Air National Guard..........................................169,801,000
Air Force Reserve............................................34,371,000

       The conferees agree to a general reduction of $2,000,000 in 
     the authorization of appropriations for the Army National 
     Guard military construction account and $4,000,000 in the 
     authorization of appropriations for the Air National Guard 
     military construction account. The general reductions are to 
     be offset by savings from favorable bids, reduction in 
     overhead costs, and cancellation of projects due to force 
     structure changes. The general reductions shall not cancel 
     any military construction authorized by title XXVI of this 
     Act.
     Legislative Provisions Adopted
     Authorized Guard and Reserve construction and land 
         acquisition projects (sec. 2601)
       The House bill contained a provision (sec. 2601) that would 
     authorize appropriations for military construction for the 
     guard and reserve by service component for fiscal year 1999.
       The Senate amendment contained a similar provision.
       The conference agreement includes a similar provision.
       The state list contained in this report is intended to be 
     the binding list of the specific projects authorized at each 
     location.
     Modification of authority to carry out fiscal year 1998 
         project (sec. 2602)
       The House bill contained a provision (sec. 2602) that would 
     authorize the Secretary of the Army to accept financial or 
     in-kind contributions from the State of Utah in connection 
     with the construction of a reserve center and organizational 
     maintenance shop in Salt Lake City, Utah. The provision would 
     also terminate the authorization for a similar military 
     construction project at Camp Williams, Utah authorized in 
     section 2601 of the Military Construction Authorization Act 
     for Fiscal Year 1998 (division B of Public Law 105-85).
       The Senate amendment contained a similar provision.
       The House and Senate recede.
       The conferees include a provision that amends section 2603 
     of the Military Construction Authorization Act for Fiscal 
     Year 1998 (division B of Public Law 105-85) to direct the 
     Secretary of the Army to enter into an agreement under which 
     the State of Utah agrees to provide financial or in-kind 
     contributions with regard to the construction of a reserve 
     center and organizational maintenance shop at an appropriate 
     site in, or in the vicinity of, Salt Lake City, Utah.
     Legislative Provisions Not Adopted
     National Guard Military Educational Facility, Fort Bragg, 
         North Carolina
       The Senate amendment contained a provision (sec. 2603) that 
     would authorize $1,000,000 from the funds authorized for 
     appropriations by section 2601(1)(A) for the purpose of 
     planning and design of a military educational facility for 
     the Army National Guard at Fort Bragg, North Carolina.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees note that this military educational facility 
     requires no additional funding for planning and design and 
     urge the Secretary of the Army to make every effort to 
     include this construction requirement in the fiscal year 2000 
     future years defense program.

        Title XXVII--Expiration and extension of Authorizations

     Legislative Provisions Adopted
     Expiration of authorizations and amounts required to be 
         specified by law (sec. 2701)
       The House bill contained a provision (sec. 2701) that 
     would provide that authorizations for military 
     construction projects, repair of real property, land 
     acquisition, family housing projects and facilities, 
     contributions to the North Atlantic Treaty Organization 
     Security Investment Program, and guard and reserve 
     projects will expire on October 1, 2001, or the date of 
     enactment of an Act authorizing funds for military 
     construction for fiscal year 2002, whichever is later. 
     This expiration would not apply to authorizations for 
     which appropriated funds have been obligated before 
     October 1, 2001, or the date of enactment of an Act 
     authorizing funds for these projects, whichever is later.
       The Senate amendment contained an identical provision.
       The conference agreement includes this provision.
     Extension of authorizations of certain fiscal year 1996 
         projects (sec. 2702)
       The House bill contained a provision (sec. 2702) that would 
     provide for selected extension of certain fiscal year 1996 
     military construction authorizations until October 1,

[[Page H8435]]

     1999, or the date of the enactment of an Act authorizing 
     funds for military construction for fiscal year 2000, 
     whichever is later.
       The Senate amendment contained a similar provision.
       The House recedes with a technical amendment.
     Extension of authorization of fiscal year 1995 project (sec. 
         2703)
       The House bill contained a provision (sec. 2703) that would 
     provide for selected extension of certain fiscal year 1995 
     military construction authorizations until October 1, 1999, 
     or the date of the enactment of the Act authorizing funds for 
     military construction for fiscal year 2000, whichever is 
     later.
       The Senate amendment contained an identical provision.
       The conference agreement includes this provision.
     Effective date (sec. 2704)
       The House bill contained a provision (sec. 2704) that would 
     provide that Titles XXI, XXII, XXIII, XXIV, XV, and XXVI of 
     this bill shall take effect on October 1, 1998, or the date 
     of the enactment of this Act, whichever is later.
       The Senate amendment contained an identical provision.
       The conference agreement includes this provision.


                   Legislative Provisions Not Adopted

     Authorization of additional military construction and 
         military family housing projects
       The Senate amendment contained a provision (sec. 2704) that 
     would authorize for appropriation $200,000,000 in additional 
     military construction and military family housing projects 
     for fiscal year 1999.
       The House bill contained no similar provision.
       The House recedes and the Senate recedes.
       The conferees note that the disposition of the military 
     construction projects contained in the Senate amendment is 
     addressed by title XXI, title XXII, and title XXIII of this 
     Act where appropriate.

                    Title XXVIII--General Provisions


                     Legislative Provisions Adopted

 Subtitle A--Military Construction and Military Family Housing Changes

     Architectural and engineering services and construction 
         design (sec. 2801)
       The Senate amendment contained a provision (sec. 2801) that 
     would amend section 2807 (a) and (d) of title 10, United 
     States Code, to clarify the authority to use design funds 
     after a project has been authorized and to use design funds 
     for the design portion of a design-build contract. The 
     provision would also clarify that ``planning'' and ``study'' 
     efforts associated with military construction projects are 
     not authorized uses of design funds. The provision would also 
     amend 2807(b) of title 10, United States Code, to increase 
     the threshold for congressional notification for payment of 
     architectural and engineering services and construction 
     design from $300,000 to $500,000.
       The House bill contained no similar provision.
       The House recedes with an amendment that would strike 
     paragraph (a) of the Senate amendment modifying section 
     2807(a) of title 10, United States Code, regarding covered 
     projects.
     Expansion of Army overseas family housing lease authority 
         (sec. 2802)
       The Senate amendment contained a provision (sec. 2802) that 
     would amend section 2828(e) of title 10, United States Code, 
     to authorize the Secretary of the Army to increase, by no 
     more than 500 family housing units in Italy and no more than 
     800 family housing units in Korea, the number of leases for 
     which the maximum amount is $25,000 per unit per year.
       The House bill contained no similar provision.
       The House recedes.
     Definition of ancillary supporting facilities under the 
         alternative authority for acquisition and improvement of 
         military housing (sec. 2803)
       The House bill contained a provision (sec. 2801) that would 
     amend section 2871 of title 10, United States Code, to 
     clarify that the development of ancillary supporting 
     facilities in military housing projects undertaken under the 
     authority of subchapter IV, chapter 169 of title 10, 
     United States Code, may include the development of 
     educational facilities to support the needs of dependents 
     of military personnel.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Purchase of build-to-lease family housing at Eielson Air 
         Force Base, Alaska (sec. 2804)
       The Senate amendment contained a provision (sec. 2831) that 
     would authorize the Secretary of the Air Force to purchase a 
     366-unit military family housing development at Eielson Air 
     Force Base, Alaska, constructed and leased by the Secretary 
     under the authority provided by section 801 of the Military 
     Construction Authorization Act for Fiscal Year 1984 (Public 
     Law 98-115). The purchase price of the housing development 
     would be an amount equal to the amount of the outstanding 
     indebtedness of the developer for the project which would 
     remain at the time of the purchase if the developer had paid 
     down the indebtedness to the lender according to the original 
     payment schedule for the project.
       The House bill contained no similar provision.
       The House recedes.
     Report relating to improvement of housing for unaccompanied 
         members (sec. 2805)
       The Senate amendment contained a provision (sec. 2834) that 
     would require the Secretary of Defense to submit a report on 
     the costs and benefits of implementing the initiative to 
     build single occupancy barracks rooms with shared bath, 
     generally known as the ``one-plus-one'' barracks initiative. 
     The provision would prohibit the Secretary from requesting 
     additional funding for the ``one-plus-one'' barracks 
     initiative unless he certifies that it is necessary to assure 
     retention, in adequate numbers, of first-term enlisted 
     members of the Armed Forces.
       The House bill contained no similar provision.
       The House recedes with an amendment that would broaden the 
     scope of the report to include the plans of the military 
     departments to improve unaccompanied military personnel 
     housing, a cost comparison of implementing the ``one-plus-
     one'' initiative versus improving existing facilities, and an 
     assessment of the authorities provided by subchapter IV of 
     chapter 169 of title 10, United States Code. The report would 
     include the views of the chiefs and senior enlisted members 
     of each the military services regarding the impact of the 
     quality of unaccompanied military housing on readiness and 
     retention of enlisted members of the Armed Forces. The 
     amendment would also strike the requirement for the Secretary 
     to certify that the ``one-plus-one'' initiative assures the 
     retention of first-term enlisted members in sufficient 
     numbers.

        Subtitle B--Real Property and Facilities Administration

     Exceptions to real property transaction reporting 
         requirements for war and certain emergency and other 
         operations (sec. 2811)
       The Senate amendment contained a provision (sec. 2812) that 
     would amend section 2662 of title 10, United States Code, to 
     waive the reporting requirements for certain real estate 
     transactions. The provision would modify the reporting 
     requirements in the event of a declaration of war, a national 
     emergency, a natural disaster, a contingency operation, or a 
     civil disturbance. In the event the secretary of a military 
     department enters into a real property agreement under these 
     conditions, the secretary would be required to submit a 
     report on the agreement to the Committee on the Armed 
     Services of the Senate and the National Security Committee of 
     the House of Representatives, not later than 30 days after 
     entering into the agreement.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Restoration of Department of Defense lands used by another 
         federal agency (sec. 2812)
       The House bill contained a provision (sec. 2811) that would 
     amend section 2662 of title 10, United States Code, to 
     provide the authority for the secretary of a military 
     department to require, as a condition of a lease, permit, 
     license, or other grant of access to lands under the control 
     of the secretary to another federal agency, the removal of 
     any improvements or the taking of any corrective action 
     necessary to restore the land used by another federal agency 
     to the condition the land was in prior to such use.
       The Senate amendment contained a similar provision (sec. 
     2814) that would amend section 2691 of title 10, United 
     States Code, to authorize the secretary of the military 
     department concerned to require users of Department of 
     Defense lands to restore lands upon expiration of their use 
     or to reimburse the military department for performing the 
     restoration.
       The House recedes.
     Outdoor recreation development on military installations for 
         disabled veterans, military dependents with disabilities, 
         and other persons with disabilities (sec. 2813)
       The House bill contained a provision (sec. 2812) that would 
     amend section 103 of the Sikes Act (10 U.S.C. 670c) to 
     ensure, to the maximum extent practicable, that opportunities 
     for outdoor recreation on military installations would be 
     equally available without substantial modification of the 
     natural environment, to disabled veterans, military 
     dependents with disabilities, and other persons with 
     disabilities.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would limit 
     donations to items of real or personal property.
       The conferees expect the Secretary of Defense to fund the 
     requirements of this provision without increasing amounts 
     previously planned for activities under the Sikes Act.
     Report on leasing and other alternative uses of non-excess 
         military property (sec. 2814)
       The Senate amendment contained a provision (sec. 2836) that 
     would require the Secretary of Defense to submit, not later 
     than February 1999, a report on the Department of Defense's 
     use of the authority provided by section 2667 of title 10, 
     United States Code. The report would address the number and 
     purpose of leases entered into under section 2667, the type 
     and amount of payments received, the cost, if any, foregone 
     as a result

[[Page H8436]]

     of the leases, the positive and negative aspects of leasing, 
     the efforts to promote these type leases to the private 
     sector, any legislative proposal to enhance the Department's 
     capability to lease to the private sector, an estimate of 
     income that could potentially be accrued as a result of 
     enhanced leasing capability, and a discussion on retaining 
     any income from these leases at the installation.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense to submit a report regarding the 
     authority of the military departments and Defense Agencies to 
     lease to the private sector non-excess real and personal 
     property. The report would be prepared in consultation with 
     the secretaries of the military departments and the Director 
     of the Office of Management and Budget. The amendment would 
     include an assessment of the proposal by the Secretary of the 
     Air Force to reduce infrastructure costs at Brooks Air Force 
     Base, Texas, and the proposal of the Secretary of the Navy 
     regarding the potential for the development of Ford Island as 
     part of Naval Complex, Pearl Harbor, Hawaii. The Secretary of 
     Defense shall, as he considers appropriate, also include 
     proposed general legislative authority or authority to 
     conduct pilot projects based on the assessment made of the 
     proposals for Brooks Air Force Base and Ford Island. The 
     amendment would also make certain technical and conforming 
     changes.
     Report on implementation of utility system conveyance 
         authority (sec. 2815)
       The House bill contained a provision (sec. 2813) that would 
     require the secretary of each military department to submit 
     to Congress, not later than March 1, 1999, a report with a 
     description of the criteria to be used by the secretary in 
     the selection of utility systems and related real property 
     for conveyance pursuant to the authority provided by section 
     2688 of title 10, United States Code, a description of the 
     manner in which the secretary will ensure that any such 
     conveyance would not adversely affect the national security 
     of the United States and a list of utility systems which are 
     likely to be conveyed.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would delete the 
     requirement for a report containing a list of the utility 
     systems likely to be conveyed. The amendment would also 
     direct the secretary of each military department to assess 
     the advisability of including associated real property with 
     the utility system to be conveyed.

            Subtitle C--Defense Base Closure and Realignment

     Applicability of property disposal laws to leases at 
         installations to be closed or realigned under base 
         closure laws (sec. 2821)
       The Senate amendment contained a provision (sec. 2813) that 
     would amend section 2667(f)(1) of title 10, United States 
     Code, to clarify that the Federal Property and Administrative 
     Services Act of 1949, does not apply to the lease of excess 
     property at closing or realigned installations if the 
     secretary of a military department determines that such lease 
     would facilitate state or local economic adjustment efforts.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Elimination of waiver authority regarding prohibition against 
         certain conveyances of property at Naval Station, Long 
         Beach, California (sec. 2822)
       The House bill contained a provision (sec. 2822) that would 
     amend section 2826 of the Military Construction Authorization 
     Act for Fiscal Year 1998 (division B of Public Law 105-85) to 
     eliminate the authority of the President to waive the 
     prohibition against the direct or indirect conveyance, by 
     sale, lease, or other method, of real property at the former 
     Naval Station, Long Beach, California, under the authority 
     provided by the Defense Base Closure and Realignment Act of 
     1990 (part A of title XXIX of Public Law 101-510) to the 
     China Ocean Shipping Company or any successor of that 
     organization.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Payment of stipulated penalties assessed under CERCLA in 
         connection with McClellan Air Force Base, California 
         (sec. 2823)
       The House bill contained a provision (sec. 2821) that would 
     authorize the use of funds from the base realignment and 
     closure account for the payment of a $15,000 stipulated 
     penalty assessed under the Comprehensive Environmental 
     Response, Compensation and Liability Act of 1980 in 
     connection with the closure of McClellan Air Force Base, 
     California.
       The Senate amendment contained a similar provision (sec. 
     324).
       The Senate recedes.

                      Subtitle D--Land Conveyances

                        Part I--Army Conveyances

     Modification of land conveyance, Army Reserve Center, 
         Youngstown, Ohio (sec. 2831)
       The Senate amendment contained a provision (sec. 2830B) 
     that would authorize the Secretary of the Army to convey, 
     without consideration, to the City of Youngstown, Ohio, a 
     parcel of real property, including improvements thereon, that 
     is located at 399 Miller Street and contains the Kefurt Army 
     Reserve Center. The property is to be used for educational 
     purposes. The provision would also repeal section 2861 of the 
     Military Construction Authorization Act for Fiscal Year 1996 
     (division B of Public Law 104-106), which authorized a 
     similar conveyance for a different purpose.
       The House bill contained no similar provision.
       The House recedes with an amendment that would modify 
     section 2861(b) of the Military Construction Authorization 
     Act for Fiscal Year 1996 to authorize the conveyance for 
     educational purposes.
     Release of interests in real property, former Kennebec 
         Arsenal, Augusta, Maine (sec. 2832)
       The Senate amendment contained a provision (sec. 2824) that 
     would authorize the Secretary of the Army to release, without 
     consideration, all right, title, and interest of the United 
     States in and to a parcel of real property consisting of 
     approximately 40 acres located in Augusta, Maine, and 
     formerly known as the Kennebec Arsenal. The provision would 
     remove conditions on the conveyance of the property to permit 
     the State of Maine and the City of Augusta to redevelop the 
     property in support of a museum and for commercial 
     activities.
       The House bill contained no similar provision.
       The House recedes.
     Release waiver, or conveyance of interests in real property, 
         former Redstone Army Arsenal property, Alabama (sec. 
         2833)
       The House bill contained a provision (sec. 2837) that would 
     authorize the Secretary of the Army to release, without 
     consideration and to such extent necessary to protect the 
     interests of the United States, the reversionary interests of 
     the United States in a parcel of real property conveyed to 
     the Alabama Space Science Exhibit Commission pursuant to 
     Public Law 90-276, section 813 of the Military Construction 
     Authorization Act, 1980 (Public Law 96-125), and section 813 
     of the Military Construction Authorization Act, 1984 (Public 
     Law 98-115).
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Conveyance of utility systems, Lone Star Army Ammunition 
         Plant, Texas (sec. 2834)
       The Senate amendment contained a provision (sec. 2830C) 
     that would authorize the conveyance, at fair market value, of 
     all or part of the utility systems at the Lone Star Army 
     Ammunition Plant, Texas, to the Redevelopment Authority for 
     the Red River Army Depot in conjunction with the disposal of 
     property at the Depot under the Defense Base Closure and 
     Realignment Act of 1990 (part A of title XXIX of Public Law 
     101-510).
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     fair market value of the conveyed utility systems and any 
     associated real property to be determined by an independent 
     appraisal. The amendment would also make certain technical 
     corrections.
     Conveyance of water rights and related interests, Rocky 
         Mountain Arsenal, Colorado, for purposes of acquisition 
         of perpetual contracts for water (sec. 2835)
       The Senate amendment contained a provision (sec. 2828) that 
     would authorize the Secretary of the Army to convey, with 
     consideration, water rights at Rocky Mountain Arsenal, 
     Colorado to the City and County of Denver, Colorado. The 
     provision would authorize the Secretary to replace the 
     current unreliable water source at the Arsenal with a 
     constant water supply, consistent with an agreement entered 
     into by the Secretary to provide water to local communities 
     affected by environmental contamination caused by the 
     operation of the Arsenal. The provision would also provide 
     for a permanent water supply for the wildlife refuge located 
     at the Arsenal and water storage facilities.
       The House bill contained no similar provision.
       The House recedes.
     Land conveyance, Army Reserve Center, Massena, New York (sec. 
         2836)
       The House bill contained a provision (sec. 2831) that would 
     authorize the Secretary of the Army to convey, without 
     consideration, a parcel of real property with improvements in 
     Massena, New York, to the Village of Massena. The property is 
     to be used for recreational, educational, or other public 
     purposes. The cost of any surveys necessary for the 
     conveyance would be borne by the Village.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require a 
     reversionary interest of the United States for a five year 
     period, beginning on the date the Secretary makes the 
     conveyance.
     Land conveyance, Army Reserve Center, Ogdensburg, New York 
         (sec. 2837)
       The House bill contained a provision (sec. 2832) that would 
     authorize the Secretary of the Army to convey, without 
     consideration, a parcel of real property with improvements in 
     Ogdensburg, New York, to the Town of Ogdensburg. The property 
     is to be used for recreational, educational, or other public 
     purposes. The cost of any surveys necessary for the 
     conveyance would be borne by the Town.
        The Senate amendment contained no similar provision.

[[Page H8437]]

        The Senate recedes with an amendment that would require a 
     reversionary interest of the United States for a five year 
     period, beginning on the date the Secretary makes the 
     conveyance.
     Land conveyance, Army Reserve Center, Jamestown, Ohio (sec. 
         2838)
        The House bill contained a provision (sec. 2833) that 
     would authorize the Secretary of the Army to convey, without 
     consideration, a parcel of real property with improvements in 
     Jamestown, Ohio, to the Greeneview Local School District. The 
     property is to be used for educational purposes. The cost of 
     any surveys necessary for the conveyance would be borne by 
     the District.
        The Senate amendment contained no similar provision.
        The Senate recedes with an amendment that would require a 
     reversionary interest of the United States for a five year 
     period, beginning on the date the Secretary makes the 
     conveyance. The amendment would also make certain technical 
     corrections.
     Land conveyance, Army Reserve Center, Peoria, Illinois (sec. 
         2839)
        The Senate amendment contained a provision (sec. 2830) 
     that would authorize the Secretary of the Army to convey, 
     without consideration, a parcel of real property with 
     improvements to Peoria School District #150, Peoria, 
     Illinois. The purpose of the conveyance would be for 
     education, training, maintenance, and transportation 
     facilities. The provision would contain a reversionary clause 
     in the event that the Secretary of the Army determines that 
     the property is not used in accordance with the condition of 
     conveyance.
        The House bill contained no similar provision.
        The House recedes with an amendment that would limit the 
     reversionary interest of the United States to a five year 
     period, beginning on the date the Secretary makes the 
     conveyance. The amendment would also make certain technical 
     corrections.
     Land conveyance, Army Reserve Center, Bridgton, Maine (sec. 
         2840)
        The Senate amendment contained a provision (sec. 2822) 
     that would authorize the Secretary of the Army to convey, 
     without consideration, a parcel of excess real property with 
     improvements consisting of approximately 3.65 acres to the 
     Town of Bridgton, Maine. The purpose of the conveyance would 
     be for public benefit to facilitate the expansion of a 
     municipal office complex. The provision would include a 
     reversionary clause in the event that the Secretary 
     determines that the conveyed property is not in accordance 
     with the condition of conveyance.
        The House bill contained no similar provision.
        The House recedes with an amendment that would limit the 
     reversionary interest of the United States to a five year 
     period beginning on the date the Secretary makes the 
     conveyance. The amendment would also make certain technical 
     corrections.
     Land conveyance, Fort Sheridan, Illinois (sec. 2841)
        The House bill contained a provision (sec. 2838) that 
     would authorize the Secretary of the Army to convey, at fair 
     market value, to the City of Lake Forest, Illinois, 
     approximately 14 acres, including improvement, known as the 
     northern Army reserve enclave. The Secretary of the Army 
     would be authorized, subject to appropriations, to use the 
     proceeds from the conveyance to provide for the construction 
     of replacements facilities and for the relocation costs for 
     reserve units and activities affected by the conveyance.
        The Senate amendment contained no similar provision.
        The Senate recedes with an amendment that would require 
     the Secretary of the Army to submit a report to the 
     congressional defense committees certifying that the 
     relocation of reserve units and activities impacted by the 
     conveyance is consistent with an approved master plan for the 
     consolidation of reserve activities in the vicinity of 
     Chicago, Illinois. The Secretary may not convey the property 
     until 21 days after the date he submits the report.
     Land conveyance, Skaneateles, New York (sec. 2842)
        The Senate amendment contained a provision (sec. 2830A) 
     that would authorize the Secretary of the Army to convey, 
     without consideration, a parcel of real property with 
     improvements consisting of approximately 147 acres to the 
     Town of Skaneateles, New York. The purpose of the conveyance 
     would be for recreational and educational purposes. The 
     provision would contain a reversionary clause in the event 
     that the Secretary of the Army determines that the property 
     is not used in accordance with the condition of conveyance.
        The House bill contained no similar provision.
        The House recedes with an amendment that would limit the 
     reversionary interest of the United States to a five year 
     period, beginning on the date the Secretary makes the 
     conveyance. The amendment would also make certain technical 
     corrections.
     Land conveyance, Indiana Army Ammunition Plant, Charlestown, 
         Indiana (sec. 2843)
        The House bill contained a provision (sec. 2835) that 
     would authorize the Secretary of the Army to convey a parcel 
     of real property with improvements, consisting of 
     approximately 4,660 acres at the Indiana Army Ammunition 
     Plant, Charlestown, Indiana, to the Indiana Army Ammunition 
     Plant Reuse Authority. The property is to be used for 
     economic development purposes. As consideration for the 
     conveyance, the Authority would pay to the United States an 
     amount equal to the fair market value of the property at the 
     end of the ten year period, beginning on the date the 
     conveyance is completed. The cost of any surveys necessary 
     for the conveyance, and any additional administrative 
     expenses, would be borne by the Authority. This section would 
     also amend section 2858(a) of the Military Construction 
     Authorization Act for Fiscal Year 1996 (division B of 
     Public Law 104- 106), as amended, to authorize the 
     Secretary of the Army to convey, without consideration, an 
     additional parcel of real property consisting of 
     approximately 2,000 acres at the Indiana Army Ammunition 
     Plant, Charlestown, Indiana, to the State of Indiana. The 
     property is to be used for recreational purposes.
        The Senate amendment contained a similar provision (sec. 
     2821).
        The Senate recedes with a technical amendment.
     Land conveyance, Volunteer Army Ammunition Plant, 
         Chattanooga, Tennessee (sec. 2844)
        The House bill contained a provision (sec. 2836) that 
     would authorize the Secretary of the Army to convey a parcel 
     of real property with improvements, consisting of 
     approximately 1,033 acres at the Volunteer Army Ammunition 
     Plant, Chattanooga, Tennessee, to Hamilton County, Tennessee. 
     The property is to be used for economic development purposes. 
     As consideration for the conveyance, the County would pay to 
     the United States an amount equal to the fair market value of 
     the property at the end of the ten year period, beginning on 
     the date the conveyance is completed. The cost of any surveys 
     necessary for the conveyance, and any additional 
     administrative expenses, would be borne by the County.
        The Senate amendment contained a similar provision (sec. 
     2823).
        The House recedes.
     Land conveyance, Stewart Army Sub-Post, New Windsor, New York 
         (sec. 2845)
        The House bill contained a provision (sec. 2834) that 
     would authorize the Secretary of the Army to convey, without 
     consideration, a parcel of real property with improvements, 
     consisting of approximately 391 acres, to the Town of New 
     Windsor, New York. The property is to be used for economic 
     development purposes. The cost of any surveys necessary for 
     the conveyance would be borne by the Town.
        The Senate amendment contained no similar provision.
        The Senate recedes with an amendment that would specify 
     that the purpose of the conveyance would be for economic 
     development. The amendment would include as a condition of 
     conveyance that the Town agree to provide connections to 
     local waste water and sewage treatment systems for existing 
     and future improvements to property retained by the Army 
     Reserve and the Marine Corps. The Town would also provide 
     waste water and sewage services at rates established by the 
     appropriate Federal or State regulatory authority.

                       Part II--Navy Conveyances

     Conveyance of easement, Marine Corps Base, Camp Pendleton, 
         California (sec. 2851)
        The House bill contained a provision (sec. 2841) that 
     would authorize the Secretary of the Navy to grant an 
     easement in perpetuity over a parcel of real property, 
     consisting of approximately 340 acres, to the Foothill/
     Eastern Transportation Corridor Agency. The easement is to be 
     used to permit the construction, operation, and maintenance 
     of a restricted access highway. As consideration for the 
     easement, the Agency would pay to the United States an amount 
     equal to the fair market value of the easement. The cost of 
     any surveys necessary for the easement would be borne by the 
     Agency.
        The Senate amendment contained no similar provision.
        The Senate recedes with a technical amendment.
     Land exchange, Naval Reserve Readiness Center, Portland, 
         Maine (sec. 2852)
        The House bill contained a provision (sec. 2842) that 
     would authorize the Secretary of the Navy to convey a parcel 
     of real property, with improvements, consisting of 
     approximately 3.72 acres, to the Gulf of Maine Aquarium 
     Development Corporation. As consideration for the conveyance, 
     the Corporation would pay to the United States an amount 
     equal to the fair market value of the property. The Secretary 
     would use the funds paid by the Corporation for the design, 
     construction, or acquisition of facilities suitable for use 
     by the Naval Reserve.
        The Senate amendment contained a similar provision (sec. 
     2825) that would authorize the Secretary of the Navy to 
     convey a parcel of real property consisting of approximately 
     3.72 acres, including adjacent submerged lands, and the Naval 
     Reserve Readiness Center, in Portland, Maine, to the Gulf of 
     Maine Aquarium Development Corporation, Portland, Maine, for 
     the purpose of establishing an aquarium and research 
     facility. In exchange for the conveyance, the corporation 
     would provide replacement facilities for the Naval Reserve, 
     as the Secretary determines appropriate.
        The House recedes with an amendment that would require the 
     Secretary of the Navy to provide a report to the 
     congressional defense committees on the terms and conditions 
     of the agreement between the Secretary and the Corporation. 
     The Secretary

[[Page H8438]]

     may not convey the property until 21 days after the date he 
     submits the report.
     Land conveyance, Naval and Marine Corps Reserve facility, 
         Youngstown, Ohio (sec. 2853)
        The House bill contained a provision (sec. 2843) that 
     would authorize the Secretary of the Navy to convey, without 
     consideration, a parcel of real property with improvements in 
     Youngstown, Ohio, to the City of Youngstown, Ohio. The 
     purpose of the conveyance would be for educational purposes. 
     The cost of any survey necessary for the conveyance would be 
     borne by the city.
        The Senate amendment contained no similar provision.
        The Senate recedes with an amendment that would require a 
     reversionary interest of the United States for a five year 
     period, beginning on the date the Secretary makes the 
     conveyance. The amendment would also make certain technical 
     corrections.
     Land conveyance, Naval Air Reserve Center, Minneapolis, 
         Minnesota (sec. 2854)
        The Senate amendment contained a provision (sec. 2829) 
     that would authorize the Secretary of the Navy to convey or 
     lease a parcel of real property, with improvements consisting 
     of approximately 32 acres, comprising the Naval Air Reserve 
     Center, Minneapolis, Minnesota, to the Minneapolis-St. Paul 
     Metropolitan Airports Commission. The purpose of the 
     conveyance would be for expansion of the Minneapolis- St. 
     Paul International Airport. In consideration, the Commission 
     shall provide a replacement facility, acceptable to the 
     Secretary of the Navy, to be used as a Naval Air Reserve 
     Center. The provision would also require the Commission to 
     assume the relocation expenses.
        The House bill contained no similar provision.
        The House recedes with an amendment that would modify the 
     alternative lease authority. The amendment would also include 
     a notice-and-wait provision and make certain technical 
     corrections.

                    Part III--Air Force Conveyances

     Modification of land conveyance authority, Eglin Air Force 
         Base, Florida (sec. 2861)
        The Senate amendment contained a provision (sec. 2827) 
     that would amend the Military Construction Authorization Act, 
     1979 (Public Law 95-356), as amended by the Military 
     Construction Authorization Act, 1989 (division B of Public 
     Law 100-456), to authorize the conveyance, at fair market 
     value, of an additional parcel of real property consisting of 
     approximately four acres at Eglin Air Force Base, Florida, to 
     the Air Force Enlisted Men's Widows and Dependents Home 
     Foundation, Inc.
        The House bill contained no similar provision.
        The House recedes.
     Modification of land conveyance, Finley Air Force Station, 
         North Dakota (sec. 2862)
        The Senate amendment contained a provision (sec. 2830D) 
     that would amend section 2835 of the Military Construction 
     Authorization Act for Fiscal Year 1995 (division B of Public 
     Law 103-337) to authorize the Secretary of the Air Force to 
     convey, without consideration, to the City of Finley, North 
     Dakota, three parcels of real property with improvements 
     consisting of approximately 77 acres. The purpose of the 
     conveyance would be for economic development. The provision 
     would contain a reversionary clause in the event that the 
     Secretary of the Air Force determines that the property is 
     not used in accordance to the condition of conveyance. The 
     Secretary would be authorized to abate any hazardous 
     substance in the improvements to be conveyed.
        The House bill contained no similar provision.
        The House recedes with an amendment that would limit the 
     reversionary interest of the United States to a five year 
     period, beginning on the date the Secretary makes the 
     conveyance. The amendment would also strike section (c) 
     regarding authority to conduct abatement of hazardous 
     substances. The conferees note that the Secretary of the Air 
     Force, under existing statute, has the authority and 
     responsibility to abate hazardous materials.
     Land conveyance, Lake Charles Air Force Station, Louisiana 
         (sec. 2863)
        The House bill contained a provision (sec. 2851) that 
     would authorize the Secretary of the Air Force to convey, 
     without consideration, a parcel of real property with 
     improvements, consisting of approximately 4.38 acres, at Lake 
     Charles Air Force Station, Louisiana, to McNeese State 
     University. The property is to be used for educational 
     purposes and for agricultural research. The cost of any 
     surveys necessary for the conveyance would be borne by the 
     University.
        The Senate amendment contained a similar provision (sec. 
     2826). The provision would condition the conveyance upon the 
     acceptance by the University of the property subject to such 
     easements or rights of way as the Secretary considers 
     appropriate. The provision would include a reversion clause 
     in the event that the Secretary determines that the conveyed 
     property is not used in accordance with the condition of 
     conveyance.
        The Senate recedes with an amendment that would require a 
     reversionary interest of the United States for a five year 
     period, beginning on the date the Secretary makes the 
     conveyance.
     Land conveyance, Air Force Housing facility, La Junta, 
         Colorado (sec. 2864)
        The House bill contained a provision (sec. 2852) that 
     would authorize the Secretary of the Air Force to convey, 
     without consideration, a parcel of real property with 
     improvements, consisting of approximately 28 acres, to the 
     City of La Junta, Colorado. The property is to be used for 
     housing and educational purposes. The cost of any surveys 
     necessary for the conveyance would be borne by the City.
        The Senate amendment contained no similar provision.
        The Senate recedes with an amendment that would require a 
     reversionary interest of the United States for a five year 
     period, beginning on the date the Secretary makes the 
     conveyance. The amendment would also make certain technical 
     corrections.

                       Subtitle E--Other Matters

     Modification of authority relating to Department of Defense 
         laboratory revitalization demonstration program (sec. 
         2871)
       The Senate amendment contained a provision (sec. 2833) that 
     would extend the authority relating to the Department of 
     Defense Laboratory Revitalization Demonstration Program 
     authorized by section 2892 of the Military Construction 
     Authorization Act for Fiscal Year 1996 (division B of Public 
     Law 104-106) for a five year period, ending on September 30, 
     2003. The provision would require the Secretary of Defense to 
     submit a report, not later than February 1, 2003, on the 
     desirability of making the program permanent.
       The House bill contained no similar provision.
       The House recedes.
     Repeal of prohibition on joint use of Gray Army Airfield, 
         Fort Hood, Texas, with civil aviation (sec. 2872)
       The House bill contained a provision (sec. 2861) that would 
     repeal the prohibition on joint military-civilian use of Gray 
     Army Airfield.
       The Senate amendment contained a similar provision.
       The Senate recedes.
     Modification of demonstration project for purchase of fire, 
         security, police, public works, and utility services from 
         local government agencies (sec. 2873)
       The House bill contained a provision (sec. 2864) that would 
     amend section 816(b) of the National Defense Authorization 
     Act for Fiscal Year 1995 (Public Law 103-337), as amended, to 
     extend the period under which a demonstration project is 
     authorized for the purchase of fire, security, police, public 
     works, and utility services from local government at 
     specified locations in Monterey, California.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would amend 
     section 816 of the National Defense Authorization Act for 
     Fiscal Year 1995, as amended, by adding new section that 
     would terminate the demonstration project effective September 
     30, 2000.
     Designation of building containing Navy and Marine Corps 
         Reserve Center, Augusta, Georgia (sec. 2874)
       The House bill contained a provision (sec. 2862) that would 
     designate the building housing the Navy and Marine Corps 
     Reserve Center in Augusta, Georgia, as the A. James Dyess 
     Building.
       The Senate amendment contained no similar provision.
       The Senate recedes.

                   Legislative Provisions Not Adopted

     Expansion of Arlington National Cemetery
       The House bill contained a provision (sec. 2863) that would 
     authorize the transfer of real property and exchange of 
     jurisdiction between the Secretary of Defense and the 
     Secretary of the Army to provide for an expansion of 
     Arlington National Cemetery, Virginia. The property to be 
     transferred to the administrative jurisdiction of the 
     Secretary of the Army consists of three parcels, totaling 
     approximately 36.5 acres, located at the Navy Annex of the 
     Pentagon. The provision would also require the Secretary of 
     the Army to modify the boundary of Arlington National 
     Cemetery to include two parcels of real property, totaling 
     approximately eight acres, situated in Fort Myer, Virginia, 
     contiguous to the Cemetery.
       The Senate amendment contained no similar provisions.
       The House recedes.
       The conferees note that Arlington National Cemetery may be 
     able to accommodate ground burials through approximately the 
     year 2025. The conferees further note that this circumstance 
     may not permit the accommodation of veterans who served in 
     the armed forces during the Vietnam era. The conferees direct 
     the Secretary of the Army, in coordination with the Secretary 
     of Defense and in consultation with the Commonwealth of 
     Virginia, the County of Arlington, Virginia, and appropriate 
     federal agencies, to assess the land requirements, through 
     either acquisition, exchange, or transfer, that would permit 
     an expansion of Arlington National Cemetery to accommodate 
     ground burials beyond the current estimated useful life of 
     the cemetery. The conferees direct the Secretary of the Army 
     to assess the adequacy of the master planning process for the 
     cemetery. The Secretary shall submit a report on the 
     Department's findings, including any recommendations, to the 
     Congress no later than April 1, 1999. The conferees further 
     direct the Secretary to report periodically, as circumstances 
     warrant, on options to enhance Arlington National Cemetery.

[[Page H8439]]

     Increase in thresholds for reporting requirements relating to 
         real property transactions
       The Senate amendment contained a provision (sec. 2811) that 
     would amend section 2662 of title 10, United States Code, to 
     increase the threshold for congressional notification for 
     real property transactions from $200,000 to $500,000. The 
     transactions requiring notification include the purchase, 
     lease, transfer, and disposal of real property.
       The House bill contained no similar provision.
       The Senate recedes.
     Beach replenishment, San Diego, California
       The Senate amendment contained a provision (sec. 2832) that 
     would authorize the Secretary of the Navy to use funds 
     remaining from the Naval Air Station North Island, 
     California, dredging project authorized in section 2204(a)(1) 
     of the Military Construction Authorization Act for Fiscal 
     Year 1997 (division B of Public Law 105-85) to carry out 
     beach replenishment in and around San Diego, California. The 
     provision would authorize the secretary to merge any funds 
     contributed to the cost of that project by the State of 
     California and by local governments under the agreement under 
     section 2205 of the Military Construction Authorization Act 
     for Fiscal Year 1997. The provision would prohibit any 
     obligation of funds to carry out the beach replenishment 
     project until 30 days after the date on which the 
     Secretary submits to the congressional defense committees 
     a report.
       The House bill contained no similar provision.
       The Senate recedes.
       Upon completion of the dredging project at Naval Air 
     Station, North Island, California, authorized by section 
     2204(a)(1) of the Military Construction Authorization Act for 
     Fiscal Year 1997, and any associated beach replenishment 
     activity otherwise authorized by law, the conferees direct 
     the Secretary of the Navy to submit a report to the 
     congressional defense committees detailing the total cost of 
     the dredging project, the cost of any beach replenishment 
     activity conducted by the Secretary, and the contributions, 
     if any, provided by the State of California and local 
     government agencies for beach replenishment activities 
     associated with activities conducted by the Secretary.
     Development of Ford Island, Hawaii
       The Senate amendment contained a provision (sec. 2835) that 
     would require the Secretary of Defense to submit, not later 
     than December 1, 1998, a report regarding the potential for 
     development of Ford Island within the Pearl Harbor Naval 
     Complex, Oahu, Hawaii. The report would consider innovative 
     resource development measures, including but not limited to, 
     an enhanced-use leasing program similar to that of the 
     Department of Veterans Affairs, as well as the sale or other 
     disposal of land in Hawaii under the control of the Navy as 
     part of an overall program for Ford Island development. The 
     report would include proposed legislation for carrying out 
     the measures recommended.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees agree to include a requirement for the 
     Secretary of Defense to assess the proposal of the Secretary 
     of the Navy regarding the potential for the development of 
     Ford Island, and to submit any proposed legislation deemed 
     appropriate, in section 2814 concerning leasing and other 
     alternative uses of non-excess military property.
     Repairs and stabilization measures at Walter Reed Army 
         Medical Center
       The Senate amendment contained a provision (sec. 2837) that 
     would authorize $2.0 million for repairs and stabilization 
     efforts at Walter Reed Army Medical Center.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees urge the Department of the Army to allocate 
     sufficient real property maintenance funding to provide for 
     the repair and stabilization of the Forest Glen Annex.
     Modification of limitations on general authority relating to 
         base closures and realignments
       The Senate amendment contained a provision (sec. 2851) that 
     would amend section 2687 of title 10, United States Code, to 
     further restrict the general authority of the Department of 
     Defense regarding the closure and realignment of military 
     installations. The provision would reduce the current ceiling 
     for closure actions from 300 civilian personnel to 225, and 
     reduce the current ceiling for realignments from 1,000 
     civilians, or 50 percent of the total civilian employment at 
     a base to 750 or 40 percent respectively.
       The House bill contained no similar provision.
       The Senate recedes.
     Prohibition on closure of a base within four years after a 
         realignment of the base
       The Senate amendment contained a provision (sec. 2852) that 
     would amend chapter 159 of title 10, United States Code, to 
     prohibit the Department of Defense from obligating or 
     expending any funds to close a military installation that has 
     been realigned within four years after the completion of any 
     realignment that would reduce the number of civilian 
     personnel employed at that installation below 225.
       The House bill contained no similar provision.
       The Senate recedes.
     Sense of Congress on further rounds of base closures
       The Senate amendment contained a provision (sec. 2853) that 
     would express the sense of Congress that Congress should not 
     authorize further rounds of base closure and realignment 
     until all actions resulting from the 1995 round are completed 
     and that the Department of Defense should submit forthwith 
     the report required by section 2815 of the National Defense 
     Authorization Act for Fiscal Year 1995 (Public Law 103-337), 
     concerning the effects of base closures on the ability of the 
     armed forces to remobilize.
       The House bill contained no similar provision.
       The Senate recedes.

               Title XXIX--Juniper Butte Range Withdrawal

                     Legislative Provisions Adopted

     Juniper Butte Range withdrawal (secs. 2901-2919)
       The Senate amendment contained title XXIX (secs. 2901-2919) 
     that would provide for the withdrawal and reservation of 
     approximately 12,000 acres of public lands, known as the 
     Juniper Butte Range, Idaho, to support enhanced military 
     training at Mountain Home Air Force Base, Idaho.
       The House bill contained no similar provision.
       The House recedes with an amendment that would ensure that 
     environmental remediation of relinquished withdrawn lands 
     conforms to existing legal requirements, strike the sense of 
     the Senate regarding the monitoring of withdrawn lands, 
     provide for indemnification of the United States against 
     any liability related to mining activities, and make 
     certain technical corrections.
       The conferees direct the Department of the Air Force to 
     develop a cooperative effort with the Bureau of Land 
     Management, the State of Idaho, and Owyhee County, Idaho, to 
     monitor the impact of military activities on the natural, 
     cultural, and other resources of the lands withdrawn and 
     reserved by this title, as well as other federal and state 
     lands affected by military activities associated with the 
     Juniper Butte Range. The Secretary of the Air Force shall 
     ensure that budgetary planning includes sufficient funds to 
     provide for the participation of the Department of the Air 
     Force in such a federal, state, and local cooperative 
     monitoring effort. The conferees expect that the budgetary 
     planning of the Department of the Air Force will be 
     consistent with the commitment made by the Secretary of the 
     Air Force, in a letter dated June 11, 1998.

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

      Title XXXI--Department of Energy National Security Programs

     Overview
       The budget request for fiscal year 1999 contained an 
     authorization of $12,280.2 million for the Defense Nuclear 
     Activities. The House bill would authorize $11,879.5 million. 
     The Senate amendment would authorize $11,920.9 million. The 
     conferees recommended an authorization of $11,950.2 million. 
     Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice. 

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[[Page H8451]]

                     Legislative Provisions Adopted

         Subtitle A--National Security Programs Authorizations

     Weapons activities (sec. 3101)
       The House bill contained a provision (sec. 3101) that would 
     authorize $4.5 billion for weapons activities and an offset 
     of $340.9 million to account for available uncosted, 
     unobligated prior year funds.
       The Senate bill contained a similar provision (sec. 3101) 
     that would authorize $4.5 billion for weapons activities and 
     an offset of $145.0 million to account for available 
     uncosted, unobligated prior year funds.
       The House recedes in part and the Senate recedes in part.
       The conferees recommend authorization of $4.5 billion for 
     atomic energy defense weapons activities of the Department of 
     Energy, a reduction of $2.0 million from the requested amount 
     of $4.5 billion. The amount authorized is for the following 
     activities: $2.1 billion for stockpile stewardship, a 
     reduction of $40.0 million; $2.1 billion for stockpile 
     management activities, an increase of $62.1 million; and 
     $250.0 million for program direction, a reduction of $10.5 
     million. The conferees recommend an undistributed reduction 
     of $13.6 million to stockpile stewardship and stockpile 
     management construction projects. The conferees further 
     recommend an undistributed reduction of $178.9 million to 
     operating and management and program direction funds to be 
     offset by available uncosted, unobligated prior year funds.
       Stockpile stewardship programs
       The conferees recommend $487.0 million for the Accelerated 
     Strategic Computing Initiative (ASCI) and Stockpile Computing 
     program, a reduction of $30.0 million. The conferees note 
     that even at this reduced level of funding, the ASCI program 
     will experience significant growth over fiscal year 1998 
     funding levels.
       The conferees believe that the Department has not fully 
     justified the rapid growth requested for this program or the 
     pace of acquisition of added computational capacities. The 
     conferees believe that the proposed reduction will have no 
     significant impact on the Department's stockpile stewardship 
     and management programs. The conferees strongly encourage the 
     Department to slow the rate of growth in this program in 
     future fiscal years.
       The conferees support the Secretary of Energy's commitment 
     to fund cooperative efforts with the Pittsburgh 
     Supercomputing Center. The conferees note, however, that the 
     utilization rate of existing DOE-owned supercomputers is very 
     low. The conferees direct the Secretary of Energy to report 
     to the congressional defense committees on the justification 
     for such leases, and whether any such leased capabilities can 
     better meet the Department's supercomputing needs in lieu of 
     planned acquisitions proposed within the ASCI program.

                     Stockpile management programs

       Of the funds available for stockpile management, the 
     conferees recommend an increase of $58.5 million for weapons 
     production plants, to be allocated as follows: $25.0 million 
     for the Pantex Plant to support scheduled workload 
     requirements associated with weapons dismantlement activities 
     and for skills retention; $15.5 million for the Kansas City 
     Plant to support advanced manufacturing efforts such as the 
     Advanced Development Program and for skills retention; $13.0 
     million for the Y-12 Plant to support maintenance of core 
     stockpile management capabilities; and $5.0 million for the 
     Savannah River Site to support infrastructure and maintenance 
     activities.
       The Senate report (S. Rpt. 105-189) encouraged the 
     Assistant Secretary for Defense Programs to create a 
     stockpile stewardship and management council to advise the 
     Assistant Secretary on programmatic and budget issues related 
     to the Department's weapons missions. The conferees address 
     this issue in a separate provision in this title.
       Consistent with the Senate report, the conferees direct the 
     Secretary of Energy and Secretary of Defense to prepare a 
     long range plan identifying pit production requirements, 
     including quantities by warhead type, schedules, costs, and 
     siting options. The report should also identify the military 
     requirements and assumptions underlying each option and 
     include options that reflect various potential stockpile 
     levels. The report should be submitted to the Committee on 
     Armed Services of the Senate and the Committee on National 
     Security of the House of Representatives in both unclassified 
     and classified form not later than March 1, 1999.
       Technology transfer and education
       The conferees recommend $59.0 million for technology 
     transfer and education activities. Of this amount, the 
     conferees recommend $10.0 million for the American Textiles 
     Partnership project.
       Program direction
       The conferees recommend a $10.5 million reduction to the 
     budget request for program direction. The conferees believe 
     that the reduction can be achieved through continued 
     efficiency savings to be gained from realignment efforts 
     described in the Institute for Defense Analysis report on the 
     Department's management structure for weapons activities.
       Construction projects
       The conferees recommend a reduction of $30.0 million to 
     stockpile stewardship and stockpile management construction 
     projects, to be allocated as follows: a reduction of $11.0 
     million from the chemistry and metallurgy research facility 
     renovation project (95-D-102) to reflect continued delays and 
     suspended operations at that facility; a reduction of $5.4 
     million from the nuclear material storage facility renovation 
     project (97-D-122) to reflect delays in final design and 
     deferral of planned construction activities; and an 
     undistributed reduction of $13.6 million.
       The conferees compliment the Director of Los Alamos 
     National Laboratory on the establishment of an external 
     evaluation team to review laboratory construction projects, 
     including laboratory management practices, management tools, 
     organization, and training. The conferees understand that the 
     external team will make recommendations to the Director for 
     systematic improvements to current practices. The conferees 
     endorse this approach.
       Tritium production
       The conferees do not believe the Department's fiscal year 
     1999 budget request of $157.0 million for tritium production 
     to be credible. The conferees note that the requirement to 
     deliver new tritium by the year 2005 for the light water 
     reactor and the year 2007 for the accelerator, as identified 
     in the Nuclear Weapons Stockpile Memorandum, has not changed. 
     The conferees believe that the Department's unwillingness to 
     include funding for the acquisition of a new tritium source 
     in its proposed out year funding plan is unacceptable. 
     Further, the conferees note that the fiscal year 1999 budget 
     request does not appear to be sufficient to complete the 
     Department's own dual track tritium strategy. The conferees 
     are very concerned that the Department did not request 
     sufficient funds to continue evaluation of both technologies 
     being considered under the dual track approach. The conferees 
     recommend an increase of $20.0 million for design and 
     research associated with the accelerator production of 
     tritium option.
       The conferees direct the Secretary of Energy to submit to 
     the congressional defense committees a plan regarding how all 
     fiscal year 1999 tritium funds will be allocated. The plan 
     shall be submitted not later than 45 days after enactment of 
     this Act.
       Inertial confinement fusion
       The budget request included $213.8 million for the inertial 
     confinement fusion (ICF) program. The conferees believe that 
     work by the University of Rochester's Laboratory for Laser 
     Energetics with the Omega laser is an essential element of 
     the ICF program. The conferees recommend the requested amount 
     and direct that, within the amount available, the $29.0 
     million be allocated for the Laboratory for Laser Energetics.
     Defense environmental restoration and waste management (sec. 
         3102)
       The House bill contained a provision (sec. 3102) that would 
     authorize $5.8 billion for defense environmental restoration 
     and waste management activities (also known as the 
     Environmental Management program), including defense 
     environmental management privatization, and an offset of 
     $94.1 million to account for available uncosted, unobligated 
     prior year funds, for a total reduction of $76.4 million to 
     the budget request.
       The Senate amendment contained a similar provision (sec. 
     3102) that would authorize $5.3 billion for defense 
     environmental restoration and waste management activities, 
     excluding defense environmental management privatization, and 
     an offset of $21.0 million to account for available uncosted, 
     unobligated prior year funds, for a total increase of $36.0 
     million to the budget request.
       The House recedes in part and the Senate recedes in part.
       The conferees recommend authorization of $5.4 billion for 
     defense environmental management activities, excluding 
     defense environmental management privatization, an increase 
     of $85.9 million to the budget request. The amount authorized 
     is for the following activities: $1.0 billion for closure 
     projects, an increase of $32.0 million; $1.0 billion for site 
     and project completion, an increase of $20.0 million; $2.7 
     billion for post-2006 completion, an increase of $71.0 
     million; $250.0 million for technology development, an 
     increase of $57.0 million; $346.2 million for program 
     direction, the amount of the budget request. The conferees 
     recommend an undistributed reduction of $94.1 million to be 
     offset by available uncosted, unobligated prior year funds.
       Post-2006 completion
       Of the amounts authorized for post-2006 completion, the 
     conferees recommend an increase of $5.0 million to the 
     National Spent Fuel Program to address regulatory and 
     repository issues associated with Department of Energy owned 
     spent nuclear fuel, an increase of $10.0 million to 
     accelerate research and treatment of high level nuclear 
     wastes at the Idaho National Engineering and Environmental 
     Laboratory, an increase of $18.0 million to drain single 
     shell tanks at the Hanford site, an increase of $30.0 million 
     for augmentation of the Defense Waste Processing Facility 
     operations and modification of in-tank precipitation process 
     equipment at the Savannah River Site to address problems 
     associated with the release of explosive benzene, and an 
     increase of $8.0 million to assist the State of New Mexico 
     with completion of a bypass around Santa Fe to accomodate 
     shipments of materials to the Waste Isolation Pilot Plant. 
     The conferees recommend full funding for the F-canyon and H-
     canyon materials processing facilities.
       Site and project completion
       Of the amounts authorized for site and project completion, 
     the conferees recommend an increase of $20.0 million for the

[[Page H8452]]

     heavy water processing project at the Savannah River Site. 
     The conferees understand that this project will result in net 
     revenues to the government over the next five years.
       Technology development
       The conferees are concerned that the budget request for the 
     Office of Science and Technology is inadequate. Recent 
     departmental testimony to the Committee on Armed Services of 
     the Senate and findings in the ``Accelerating Cleanup--
     Pathways to Closure'' report have identified that the 
     Department cannot meet its accelerated closure goals without 
     aggressive application of new technologies. The conferees 
     agree with the Department's assessment of the need for 
     increased use of innovative technology at DOE facilities. The 
     conferees encourage the Department to revise its performance 
     measures for facility managers to include the application of 
     new technology in site cleanup activities.
       The conferees encourage DOE to continue cooperative efforts 
     with Federal and State regulators and non-profit 
     organizations to facilitate the rapid deployment of 
     innovative technologies at DOE sites. This effort should 
     include cooperative efforts to assist the implementation of 
     more uniform technology verification and regulatory 
     acceptance criteria to DOE-developed technologies.
       The conferees direct the Secretary of Energy to submit a 
     report to Congress on the proposed uses of the $57.0 million 
     increase in this account.
       No funds authorized to be appropriated pursuant to this 
     section are available to support, or enter into cooperative 
     efforts in support of, the Russian Nuclear Cities Initiative, 
     or any other foreign assistance program. The conferees 
     continue to support cooperative programs with international 
     partners that facilitate environmental cleanup or waste 
     management activities at Department of Energy sites.
       Off-site disposal of low level waste
       The conferees are concerned that the Department has only 
     one commercial low-level waste disposal option available. 
     Although this facility has a satisfactory operating record 
     and has proven to be a cost effective option for waste 
     disposal, it remains the Department's sole large-scale 
     commercial disposal option. The conferees encourage the 
     Department to move forward with a national procurement, as 
     announced by the Secretary of Energy, to initiate open 
     competition for the Department's off-site waste disposal 
     contracts.
     Other defense activities (sec. 3103)
       The budget request included $1.667 billion for Other 
     Defense Activities for the Department of Energy (DOE) for 
     fiscal year 1999, which included an offset to user 
     organizations of $20.0 million.
       The House bill contained a provision (sec. 3103) that would 
     authorize a $33.6 million increase to the budget request.
       The Senate amendment contained a provision (sec. 3103) that 
     would authorize a $5.0 million increase to the budget 
     request.
       The conferees recommend authorization of $1.716 billion for 
     other defense activities, an increase of $27.0 million to the 
     budget request, for the following activities: $679.3 million 
     for nonproliferation and national security activities, of 
     which $503.5 million is for verification and control 
     technology activities; $168.9 million for fissile materials 
     control and disposition; $89.0 million for environment, 
     safety and health activities; $35.0 million for international 
     nuclear safety activities; and $681.5 million for 
     naval reactors. The amount authorized is offset by $20.0 
     million to account for user organizations, and is further 
     offset by $2.0 million in uncosted and unobligated prior 
     year funds.
       Nonproliferation and verification and control technology
       The conferees agree to a $3.0 million increase to the 
     budget request for intelligence activities. The conferees 
     also express their continued support for the broad 
     participation of the Department of Energy national 
     laboratories, including the Pacific Northwest Laboratory, 
     Idaho National Laboratory, the Savannah River Site and 
     industry in the research and development of forensic 
     analytical technologies to detect and respond to radiological 
     and nuclear threats and international nuclear smuggling 
     events. Additionally, the conferees direct that the 
     Department ensure that all research and development 
     activities in the area of chemical and biological detection 
     and defense be coordinated with the Department of Defense.
       Russian reactor core conversion program
       The conferees endorse the recommendation contained in the 
     Senate report (S. Rept. 105-189) that the Department of 
     Energy keep the congressional defense committees informed on 
     the status of the Reactor Shutdown Agreement between the 
     United States and the Russian Federation.
       Nuclear smuggling and counterterrorism
       The conferees direct the Department of Energy to report to 
     the congressional defense committees not later than 30 days 
     after the date of enactment of this Act on the use of funds 
     made available in the National Defense Authorization Act for 
     Fiscal Year 1998 (Public Law 105-85) to plan and conduct 
     exercises to prepare Federal, state, and local entities to 
     respond to domestic terrorist use of nuclear materials and 
     devices. Additionally, the conferees direct the Department of 
     Energy to report to the congressional defense committees not 
     later than November 1, 1998 on the status of the 
     investigations of the sale of high performance computers to 
     Russia and China, and steps taken by the Department of Energy 
     and other federal agencies and department of the U.S. 
     Government to recover such high performance computers.
       Emergency management
       The conferees agree to authorize the budget request of 
     $23.7 million for emergency management activities to 
     strengthen and expand the Department's support for domestic 
     crisis and consequence management in combatting weapons of 
     mass destruction terrorism and nuclear smuggling and nuclear 
     material trafficking as well as to provide comprehensive, 
     integrated emergency planning, preparedness, response, and 
     management throughout the Department of Energy. The conferees 
     agree that no funds authorized for the Department are to be 
     used to provide support to state and local authorities for 
     activities unrelated to providing appropriate emergency 
     responses to natural and man-made disasters involving 
     radiological hazards and threats.
       Fissile materials control and disposition
       The conferees recommend the budget request of $168.9 
     million for fissile materials control and disposition. The 
     conferees are pleased with the approach being pursued by the 
     Department in the fissile materials disposition program. The 
     conferees authorize full funding for title I design for new 
     materials disposition facilities. The conferees direct the 
     Secretary to continue planning and design of such facilities.
       The conferees agree that $25.0 million, as requested in the 
     budget for the fissile materials control and disposition 
     program, for cooperative efforts with the Russian Federation 
     is adequate for this activity. With the exception of 
     achieving agreement on a joint testing program, the conferees 
     believe there has has been insufficient progress achieved in 
     negotiating the bilateral agreement with the Russian 
     Federation. The conferees encourage the Department to 
     continue its efforts to achieve an agreement with the Russian 
     Federation on this program. In the interim, the conferees 
     direct the Department to report periodically to the 
     congressional defense committees on the status of efforts to 
     achieve agreement on this program, as well as on the 
     estimated cost and how the Russian Federation proposes to 
     finance the program.
       Security investigations
       The conferees understand that the costs of conducting 
     security investigations is borne principally by individual 
     departmental program elements. The conferees further 
     understand that the amount requested by the Department in the 
     security investigations account includes funds that are also 
     included in individual Departmental program element budgets 
     and are, therefore, double counted. In order to reflect the 
     true costs of such activities, the conferees decreased the 
     amount authorized by section 3103(a)(1)(C) by $20.0 million 
     to reflect those funds that are included in program element 
     budgets.
       Worker and community transition
       The conferees recommend a reduction of $5.0 million to the 
     worker and community transition budget request.
       Environment, safety and health--defense
       The conferees recommend an increase of $15.0 million to the 
     budget request for defense environment, safety and health for 
     health studies.
       Naval reactors
       The conferees recommend an increase of $16.0 million to the 
     budget request for the Office of Naval Reactors to expedite 
     decommissioning and decontamination activities at surplus 
     prototype plant facilities.
     Defense nuclear waste disposal (sec. 3104)
       The House bill contained a provision (sec. 3104) that would 
     authorize $190.0 million for the Department of Energy fiscal 
     year 1998 defense contribution to the defense nuclear waste 
     fund.
       The Senate amendment contained an identical provision (sec. 
     3104).
       The conference agreement includes this provision.
     Defense environmental management privatization (sec. 3105)
       The Senate amendment contained a provision (sec. 3105) that 
     would provide $273.9 million for defense environmental 
     management privatization projects to be allocated as follows: 
     $113.5 million for the tank waste remediation system project, 
     phase I (Richland); $20.0 million for spent nuclear fuel dry 
     storage (Idaho); $87.3 million for advanced mixed waste 
     treatment (Idaho); $19.6 million for remote handled 
     transuranic waste transportation (Carlsbad); and $33.5 
     million for environmental management/waste management 
     disposal (Oak Ridge). The Senate amendment further authorized 
     the use of $32.0 million in unobligated, uncosted, and 
     undistributed prior year defense environmental management 
     privatization funds.
       The House bill contained a similar provision (section 3102) 
     that addressed all defense environmental management funds, 
     including $286.8 million for defense environmental management 
     privatization projects.
       The House recedes with an amendment that would provide 
     $286.9 million for defense environmental management 
     privatization projects to be allocated as follows: $100.0 
     million for the tank waste remediation system project, phase 
     I (Richland); $30.0 million for spent nuclear fuel dry 
     storage (Idaho); $87.3 million for advanced mixed waste 
     treatment (Idaho); $19.6 million for remote handled

[[Page H8453]]

     transuranic waste transportation (Carlsbad); and $50.0 
     million for environmental management/waste management 
     disposal (Oak Ridge). The conferees agree to offset this 
     amount through the use of $32.0 million in unobligated, 
     uncosted, and undistributed prior year defense environmental 
     management privatization funds. The conferees direct that the 
     offset be achieved through the use of: $15.0 million in 
     fiscal year 1997 unobligated, uncosted balances to reflect 
     the cancellation of the broad spectrum low activity mixed 
     waste treatment privatization project (Oak Ridge); $10.0 
     million in fiscal year 1997 unobligated, uncosted balances to 
     reflect cancellation of the waste water treatment plant 
     privatization project (Rocky Flats); and $7.0 million in 
     fiscal year 1998 unobligated, uncosted and undistributed 
     balances.
       The conferees note that the Senate report endorsed the 
     transfer of responsibility for the Hanford Tank Waste 
     Remediation System (TWRS) project to the Assistant Secretary 
     of Energy for Environmental Management. The conferees address 
     this issue in a separate section of this title.

                Subtitle B--Recurring General Provisions

     Reprogramming (sec. 3121)
       The House bill contained a provision (sec. 3121) that would 
     prohibit the reprogramming of funds in excess of 110 percent 
     of the amount authorized for the program, or in excess of 
     $1.0 million above the amount authorized for the program, 
     until the Secretary of Energy submits a report to the 
     congressional defense committees and a period of 30 calendar 
     days has elapsed after the date on which the report is 
     received.
       The Senate amendment contained an identical provision (sec. 
     3121).
       The conference agreement includes this provision.
     Limits on general plant projects (sec. 3122)
       The House bill contained a provision (sec. 3122) that would 
     authorize the Secretary of Energy to carry out any 
     construction project authorized under general plant projects 
     if the total estimated cost does not exceed $5.0 million. The 
     provision would require the Secretary to submit a report to 
     the congressional defense committees if the cost of the 
     project is revised to exceed $5.0 million. Such a report 
     would include the reasons for the cost variation.
       The Senate amendment contained an identical provision (sec. 
     3122).
       The conference agreement includes this provision.
     Limits on construction projects (sec. 3123)
       The House bill contained a provision (sec. 3123) that would 
     permit any construction project to be initiated and continued 
     only if the estimated cost for the project does not exceed 
     125 percent of the higher of: (1) the amount authorized for 
     the project or (2) the most recent total estimated cost 
     presented to the Congress as justification for such project. 
     The Secretary of Energy may not exceed such limits until 30 
     legislative days after the Secretary submits to the 
     congressional defense committees a detailed report setting 
     forth the reasons for the increase. This provision would also 
     specify that the 125 percent limitation would not apply to 
     projects estimated to cost under $5.0 million.
       The Senate amendment contained an identical provision (sec. 
     3123).
       The conference agreement includes this provision.
     Fund transfer authority (sec. 3124)
       The House bill contained a provision (sec. 3124) that would 
     permit funds authorized by this Act to be transferred to 
     other agencies of the government for performance of work for 
     which the funds were authorized and appropriated. The 
     provision would permit the merger of such transferred funds 
     with the authorizations of the agency to which they are 
     transferred. The provision would also limit, to not more than 
     five percent of the account, the amount of such funds that 
     may be transferred between authorization accounts in the 
     Department of Energy that were authorized pursuant to this 
     Act.
       The Senate amendment contained an identical provision (sec. 
     3124).
       The conference agreement includes this provision.
     Authority for conceptual and construction design (sec. 3125)
       The House bill contained a provision (sec. 3125) that would 
     limit the Secretary of Energy's authority to request 
     construction funding until the Secretary has completed a 
     conceptual design. This limitation would apply to 
     construction projects with a total estimated cost greater 
     than $5.0 million. If the estimated cost to prepare the 
     construction design exceeds $600,000, the provision would 
     require the Secretary to obtain a specific authorization to 
     obligate such funds. If the estimated cost to prepare the 
     conceptual design exceeds $3.0 million, the provision would 
     require the Secretary to request funds for the conceptual 
     design before requesting funds for construction. The 
     provision would further require the Secretary to submit to 
     Congress a report on each conceptual design completed under 
     this provision. The provision would also provide an exception 
     to these requirements in the case of an emergency.
       The Senate amendment contained an identical provision (sec. 
     3125).
       The conference agreement includes this provision.
     Authority for emergency planning, design, and construction 
         activities (sec. 3126)
       The House bill contained a provision (sec. 3126) that would 
     permit the Secretary of Energy to perform planning and design 
     with any funds available to the Department of Energy pursuant 
     to this title, including those funds authorized for advance 
     planning and construction design, whenever the Secretary 
     determines that the design must proceed expeditiously to 
     protect the public health and safety, to meet the needs of 
     national defense, or to protect property.
       The Senate amendment contained an identical provision (sec. 
     3126).
       The conference agreement includes this provision.
     Funds available for all national security programs of the 
         Department of Energy (sec. 3127)
       The House bill contained a provision (sec. 3127) that would 
     authorize, subject to section 3121 of this Act, amounts 
     appropriated for management and support activities and for 
     general plant projects to be made available for use in 
     connection with all national security programs of the 
     Department of Energy.
       The Senate amendment contained an identical provision (sec. 
     3127).
       The conference agreement includes this provision.
     Availability of funds (sec. 3128)
       The House bill contained a provision (sec. 3128) that would 
     authorize amounts appropriated for operating expenses or for 
     plant and capital equipment for the Department of Energy to 
     remain available until expended. Program Direction funds 
     would remain available until the end of fiscal year 2000.
       The Senate amendment contained a similar provision (sec. 
     3128) that would authorize Program Direction funds to remain 
     available until the end of fiscal year 2001.
       The House recedes.
     Transfers of defense environmental management funds (sec. 
         3129)
       The House bill contained a provision (sec. 3129) that would 
     provide the manager of each field office of the Department of 
     Energy with limited authority to transfer up to $5.0 million 
     in fiscal year 1999 defense environmental management funds 
     from one program or project under the jurisdiction of the 
     office to another such program or project, once in a fiscal 
     year. The provision would extend the authority granted by 
     section 3139 of the National Defense Authorization Act for 
     Fiscal Year 1997 by allowing transfers of funds among 
     programs and projects in the Site and Project Completion, 
     Post-2006 Completion, and Science and Technology accounts.
       The Senate amendment contained a similar provision (sec. 
     3129) that would allow transfers of funds between programs 
     and projects in the Site Closure Project, and Project 
     Completion, and Post-2006 Completion accounts.
       The Senate recedes with an amendment that would allow 
     transfers of funds between programs and projects in the Site 
     and Project Completion and Post-2006 Completion accounts.

   Subtitle C--Program Authorizations, Restrictions, and Limitations

     Permanent extension of funding prohibition relating to 
         international cooperative stockpile stewardship (sec. 
         3131)
       The House bill contained a provision (sec. 3132) that would 
     amend section 3133(a) of the National Defense Authorization 
     Act for Fiscal Year 1998 (P.L. 105-85) to establish a 
     permanent prohibition on expenditures of funds for 
     cooperative stockpile stewardship efforts with any nation 
     except for France or the United Kingdom, or, as specifically 
     authorized with nations of the former Soviet Union.
       The Senate amendment contained a similar provision (sec. 
     3131) that would prohibit use of fiscal year 1999 or prior 
     year funds to conduct such international cooperative 
     stockpile stewardship activities.
       The Senate recedes.
     Support of ballistic missile defense activities of the 
         Department of Defense (sec. 3132)
       The House bill contained a provision (sec. 3133) that would 
     require the Secretary of Energy to make available, from funds 
     authorized for Department of Energy atomic energy weapons 
     activities, no less than $60.0 million for missile defense 
     technology development in cooperation with the Ballistic 
     Missile Defense Organization (BMDO) for the purpose of 
     developing, demonstrating, and testing hit-to-kill 
     interceptor vehicles for theater missile defense systems.
       The Senate amendment contained a provision (sec. 3132) that 
     would prohibit the use of any funds authorized by title XXXI 
     to support ballistic missile defense research, development, 
     demonstration, testing, and evaluation. The prohibition would 
     include studies and assessments. The provision would also 
     prohibit use of Laboratory Directed Research and Development 
     and laboratory overhead funds for such purposes.
       The Senate recedes with an amendment that would make 
     available $30.0 million for technology development, concept 
     demonstration, and integrated testing to improve reliability 
     and reduce risk in hit-to-kill interceptors; science and 
     engineering teams to address technical problems identified by 
     the Director of BMDO which are critical to the acquisition of 
     a theater missile defense capability; and other research, 
     development and demonstration activities that support the 
     mission of BMDO. The provision would require that any such 
     activities conform to the joint memorandum of understanding 
     between the Secretaries of Energy and Defense required by 
     section 3131 of the National Defense Authorization Act for 
     Fiscal Year 1998 (Public Law 105-85). The provision would 
     allow the covered activities to be funded

[[Page H8454]]

     through direct contributions or waiver of a Federal 
     administrative charge, overhead costs, or other indirect 
     costs of the Department of Energy or its contractors.
     Nonproliferation activities (sec. 3133)
       The Senate amendment contained a provision (sec. 3139) that 
     would make $30.0 million available for the Initiatives for 
     Proliferation Prevention (IPP) program and $30.0 million 
     available to implement the initiative known as the ``Nuclear 
     Cities Initiative'' (NCI) program pursuant to the March 1998 
     agreement between the United States and the Russian 
     Federation.
       The House bill contained no similar provision.
       The House recedes with an amendment that would make up to 
     $20.0 million available for the IPP program. Additionally, 
     the provision would require the Secretary of Energy to submit 
     a report to the congressional defense committees on the 
     Nuclear Cities Initiative program and wait a period of 20 
     legislative days after the date on which the report is 
     received prior to the obligation and expenditure of any 
     funds.
       The amendment would also require the report of the 
     Secretary on the NCI program to include among other items, 
     the objectives of the NCI program and the process and method 
     by which the program will be implemented (to include the 
     status of bilateral agreements), a timeline of the program 
     and milestones to be achieved, and the funding requirements 
     through the completion of the program. In addition, the 
     report should include any information on the participation of 
     other federal agencies and departments in the NCI program, as 
     well as the participation of U.S. industry.
     Licensing of certain mixed oxide fuel fabrication and 
         irradiation facilities (sec. 3134)
       The Senate amendment contained a provision (sec. 3133) that 
     would require any person constructing or operating a new or 
     operating an existing facility to fabricate mixed oxide (MOX) 
     fuel for use in a commercial nuclear reactor to be subject to 
     licensing by the Nuclear Regulatory Commission (NRC). The 
     provision would also require the occupational safety and 
     health of employees working at such facilities to be subject 
     to regulation by the Department of Labor. The provision would 
     exempt the Department of Energy MOX-related demonstration, 
     testing, and research activities from such licensing 
     requirements.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
       The conferees do not endorse the wholesale external 
     regulation of Department of Energy defense nuclear facilities 
     and remain skeptical of the potential benefits associated 
     with implementing new regulatory regimes at other new or 
     existing DOE defense nuclear facilities.
     Continuation of processing, treatment, and disposition of 
         legacy nuclear materials (sec. 3135)
       The Senate amendment contained a provision (sec. 3134) that 
     would require the Secretary of Energy to maintain a high 
     state of readiness at the F-canyon and H-canyon facilities at 
     the Savannah River Site.
       The House bill contained no similar provision.
       The House recedes.
       The conferees note that this action was recommended by the 
     Defense Nuclear Facilities Safety Board and is consistent 
     with direction provided by previous authorization acts.
     Authority for Department of Energy federally funded research 
         and development centers to participate in merit-based 
         technology research and development programs (sec. 3136)
       The Senate amendment contained a provision (sec. 3135) that 
     would amend the National Defense Authorization Act for Fiscal 
     Year 1995 (Public Law 103-337) to grant Department of Energy 
     (DOE) sponsored federally funded research and development 
     centers (FFRDCs) the same ability to compete for contracts as 
     Department of Defense (DOD) sponsored FFRDCs.
       The House bill contained no similar provision.
       The House recedes with an amendment that would limit the 
     authority to those activities conducted under contract with, 
     or on behalf, of the Department of Defense.
       The conferees do not support the concept of DOE FFRDCs 
     competing directly or indirectly with the private sector. In 
     implementing this authority, the conferees expect DOE FFRDCs 
     to comply fully with all DOD and DOE policy guidance and 
     regulations governing FFRDCs. The conferees expect DOE FFRDCs 
     to focus on their core competencies, expertise, or unique 
     facilities.
     Activities of Department of Energy facilities (sec. 3137)
       The Senate amendment contained a provision (sec. 3140) that 
     would establish a uniform Federal administrative charge of 
     three percent on all contract research activities carried out 
     for non-Department of Energy (DOE) entities at DOE contractor 
     operated facilities. The provision would eliminate the 
     Secretary of Energy's current authority to waive the Federal 
     administrative charge, except that the Secretary would be 
     authorized to continue existing waivers, if the Secretary so 
     determines, and would be authorized to waive charges for 
     small businesses, institutions of higher education, non-
     profit entities, and state and local governments. The 
     provision would authorize the Secretary to enter into a five-
     year pilot program at selected facilities to develop reduced 
     overhead charges designed to recover all costs generated by 
     external entities who may not utilize the full range of 
     services at a DOE facility for which overhead costs may be 
     charged. The provision would encourage the Secretary to 
     establish a new small business technology partnership program 
     to make DOE expertise and capabilities more accessible to 
     small businesses, and would encourage the Secretary to pursue 
     partnerships and interactions with universities and private 
     businesses.
       The House bill contained no similar provision.
       The House recedes with an amendment that would allow the 
     Secretary to waive the Federal administrative charge at all 
     DOE facilities. The conferees did not include the small 
     business technology partnership or partnerships and 
     interactions provisions.
       The conferees encourage the Secretary to continue the 
     establishment of cooperative partnerships and interactions 
     with universities and private industry at contractor-operated 
     facilities where such interaction will help the Department 
     better carry out its national security missions. The 
     conferees further encourage the Secretary to create small 
     business technology partnership programs at contractor-
     operated facilities where such interaction will help the 
     Department better carry out its national security missions. 
     The Secretary is encouraged to designate small funding pools 
     at DOE sites to carry out such programs. The Secretary should 
     include annually with the President's budget request a report 
     on the effectiveness and applicability of any such programs 
     to the missions of the Department of Energy.
     Hanford overhead and service center costs (sec. 3138)
       The House bill contained a provision (sec. 3135) that would 
     prohibit the use of certain fiscal year 1999 funds at the 
     Hanford Site until the Secretary of Energy certifies to 
     Congress that the Department does not intend to pay overhead 
     costs of more than 33 percent of total contract overhead 
     costs at that Site. The provision would prohibit the 
     obligation of $12.0 million for reactor decontamination and 
     decommissioning and $18.0 million for drainage of single-
     shell waste tanks at the Hanford Site until the Secretary 
     completes the certification. The provision would further 
     require that any savings that result from compliance with 
     this section be retained for use at the Hanford Site to 
     ensure full compliance with the Hanford Federal Facility 
     Agreement and Consent Order and the recommendations of the 
     Defense Nuclear Facilities Safety Board. In addition, the 
     provision conveyed the sense of the Congress that overhead 
     costs for contractors performing cleanup work at DOE 
     facilities is out of control, that some increased overhead 
     costs are a result of unnecessary regulation, and that the 
     Department should take action to minimize any such 
     unnecessary regulation.
       The Senate amendment contained a related provision (sec. 
     3148) that would require the General Accounting Office (GAO) 
     to conduct a review of Department of Energy (DOE) overhead 
     costs, including the methods used to calculate direct and 
     indirect overhead costs at DOE cleanup sites and the methods 
     used to allocate and report such overhead costs. The GAO 
     would be required to submit a report to Congress not later 
     than January 31, 1999, to include the findings of the review 
     and any resulting recommendations for standardizing the 
     methods used to allocate and report overhead costs at DOE 
     cleanup sites.
       The Senate recedes with an amendment that would require the 
     Secretary to establish a target for fiscal year 1999 contract 
     overhead costs at the Hanford Site and utilize any savings 
     that result from lower overhead costs to perform additional 
     cleanup activities at the Site and to comply with the Hanford 
     Tri-party Agreement. The Senate amendment would further 
     require the Defense Contract Audit Agency (DCAA) to conduct 
     an assessment of overhead, service center, and other related 
     costs assessed by the Project Hanford Management Contractor 
     at the Hanford Site. The DCAA assessment would be submitted 
     to Congress not later than March 1, 1999.
     Hanford waste tank cleanup program reforms (sec. 3139)
       The House bill contained a provision (sec. 3136) that would 
     direct the Secretary of Energy to establish an Office of 
     River Protection at the Department of Energy's Hanford Site. 
     The office would be headed by a senior official of the 
     Department of Energy who would be responsible for managing 
     all aspects of Hanford tank farm operations, including the 
     Tank Waste Remediation System project. The provision would 
     create a five-member advisory committee to provide advice to 
     the new office. The provision would require the Secretary to 
     submit within 90 days of the date of enactment of this Act an 
     integrated management plan for all aspects of the tank farm 
     operations, including the roles and responsibilities and 
     reporting relationships of the Office of River Protection. 
     The plan would address whether the office should be 
     physically and administratively separate from the DOE 
     Richland Operations Office. The provision would further 
     require the Secretary, two years after the creation of the 
     office, to report on any progress and

[[Page H8455]]

     management improvements that result from this provision. The 
     Office of River Protection would terminate in five years, 
     unless the Secretary determines that the office should 
     continue.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     office to report directly to the Assistant Secretary for 
     Environmental Management, but be physically located at the 
     Hanford Site in Richland, Washington. The amendment also 
     would eliminate the creation of the five-member advisory 
     committee. The conferees believe the existing advisory 
     structure at the site is adequate.
     Hanford Health Information Network (sec. 3140)
       The Senate amendment contained a provision (sec. 3138) that 
     would authorize the Secretary of Energy to utilize $2.5 
     million within existing Hanford Site funding for the Hanford 
     Health Information Network.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     the use of $1.5 million within existing Hanford Site funding 
     for the Hanford Health Information Network.
     Hazardous Materials Management and Emergency Response 
         training program (sec. 3141)
       The House bill contained a provision (sec. 3155) that would 
     authorize the Hazardous Materials Management and Emergency 
     Response (HAMMER) training facility in Richland, Washington 
     to accept payments in kind in exchange for services.
       The Senate amendment contained a similar provision (sec. 
     3137).
       The Senate recedes.
     Support for public education in the vicinity of Los Alamos 
         National Laboratory, New Mexico (sec. 3142)
       The Senate amendment contained a provision (sec. 3136) that 
     would authorize the Department of Energy (DOE) to make a $5.0 
     million payment to a not-for-profit education foundation in 
     the area around the Los Alamos National Laboratory to enrich 
     educational activities of the local school system. The 
     provision would require the foundation to place DOE 
     contributions in an endowment fund, the corpus of which would 
     remain in trust and the annual revenue used to support the 
     local school system.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
       This provision would extend the authority granted to the 
     Secretary of Energy by section 3167 of the National Defense 
     Authorization Act for Fiscal Year 1998 (Public Law 105-85). 
     The conferees expect the Secretary of Energy to make no more 
     than five total annual payments to this fund for a total 
     contribution not to exceed $25.0 million. The conferees note 
     that the Secretary was authorized to make the first of such 
     payments in fiscal year 1998. The conferees expect, that upon 
     making the fifth payment or meeting the $25.0 million cap, 
     all DOE assistance to the local school system will end.
     Relocation of National Atomic Museum, Albuquerque, New Mexico 
         (sec. 3143)
       The Senate amendment contained a provision (sec. 3140A) 
     that would require the Secretary of Energy to submit a plan 
     on the design, construction and relocation of the National 
     Atomic Museum located in Albuquerque, New Mexico.
       The House bill contained no similar provision.
       The House recedes with an amendment that would direct the 
     Secretary of Energy to submit a plan to relocate the museum. 
     This provision does not authorize the Secretary to proceed 
     with a conceptual design of a new National Atomic Museum or 
     to obligate any funds to implement any plan.
     Tritium production (sec. 3144)
       The House bill contained a provision (sec. 3154) that would 
     modify the Atomic Energy Act of 1954 (42 U.S.C. 2077(e)) to 
     prohibit the use of tritium produced in commercial nuclear 
     reactors for nuclear explosive purposes.
       The Senate amendment contained a related provision (sec. 
     3150) that would require the Secretary of Energy to select a 
     tritium production technology after completion of an 
     interagency review regarding the proliferation ramifications 
     of using a commercial light water reactor to produce tritium 
     for nuclear explosive purposes, but not later than December 
     31, 1998. The provision would direct the Secretary of Energy 
     to make the decision notwithstanding any provision of the 
     Atomic Energy Act of 1954 (42 U.S.C. 2011, et. seq.), but 
     consistent with the laws, regulations and procedures of the 
     Department of Energy.
       The conferees agree to include a provision that would 
     prohibit use of any funds available during fiscal year 1999, 
     including prior year funds, to implement any tritium 
     technology decision made pursuant to section 3135 of the 
     National Defense Authorization Act for Fiscal Year 1998 
     (Public Law 105-85). This prohibition includes any 
     construction or related activities. Nothing in this provision 
     shall be interpreted to preclude the Secretary of Energy from 
     continuing planned research and design activities on both 
     technology options currently under consideration.
       The conferees strongly support the Department of Energy's 
     efforts to restore on a timely basis tritium production to 
     maintain the viability of the U.S. nuclear deterrent. The 
     conferees note that tritium is not a special nuclear material 
     as defined by the Atomic Energy Act of 1954, and thus, unlike 
     plutonium and highly enriched uranium, is not capable of 
     sustaining a nuclear chain reaction. It is, however, a 
     radioactive material that is vital to the performance of U.S. 
     nuclear warheads.
       The conferees endorse the United States' long-standing 
     policy requiring the separation of civilian and military uses 
     of nuclear energy. Concerns have been raised that the use of 
     a commercial light water reactor to produce tritium might 
     establish a precedent for other nations to use government-
     owned civilian reactors to produce materials for nuclear 
     weapons programs. The conferees note that the Interagency 
     Review of Nonproliferation Implications of Alternative 
     Tritium Technologies transmitted to Congress by the 
     Department of Energy in July 1998, as required by the 
     National Defense Authorization Act for Fiscal Year 1998 
     (Public Law 105-85), concluded that the nonproliferation 
     risks associated with the commercial light water reactor 
     option are ``manageable.'' Implicit in this conclusion, is 
     a recognition that the commercial reactor option could 
     pose nuclear proliferation risks that might harm U.S. 
     national security interests.
       The conferees expect the Secretary of Energy to consider 
     whether, or to what extent, the selection of a light water 
     reactor would violate U.S. policy and might encourage other 
     nations to divert nuclear materials from government-owned 
     civilian reactors into nuclear weapons programs. In addition, 
     the conferees expect the Secretary to assess any nuclear 
     proliferation risk that any such outcome could pose for the 
     United States.
       The conferees direct the Secretary of Energy to select a 
     tritium technology option consistent with the requirements of 
     section 3135 of the National Defense Authorization Act for 
     Fiscal Year 1998 (Public Law 105-85). The decision criteria 
     shall include the ability to meet the national defense 
     requirements of the United States, nuclear proliferation 
     implications, and cost.
       In addition, the conferees direct the Secretary to submit 
     to the Committee on Armed Services of the Senate and the 
     National Security Committee of the House of Representatives, 
     a comprehensive plan to implement the technology option 
     selected. The plan should be submitted with the President's 
     fiscal year 2000 budget and include a proposed implementation 
     schedule, annual funding requirements for the life of the 
     project, any legislation needed to implement the technology 
     selected, and an assessment of the viability of purchasing 
     tritium, if necessary for national security purposes, on an 
     interim basis.

                       Subtitle D--Other Matters

     Study and plan relating to worker and community transition 
         assistance (sec. 3151)
       The House bill contained a provision (sec. 3151) that would 
     repeal the requirements of section 3161 of the National 
     Defense Authorization Act for Fiscal Year 1993 (Public Law 
     102-484). Section 3161 required the implementation of a 
     worker and community transition program to restructure the 
     Department of Energy (DOE) private contractor workforce at 
     the end of the Cold War. This section would also prohibit the 
     expenditure of funds for the DOE Worker and Community 
     Transition program after September 30, 1999.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary to develop a plan describing how the Office of 
     Worker and Community Transition would be terminated and how 
     the authority of that office would transferred to Department 
     of Energy program offices. The Secretary shall submit the 
     plan to the Congressional defense committees not later than 
     July 1, 1999. The amendment would also require the General 
     Accounting Office to conduct a study on the effects of DOE 
     workforce restructuring plans from fiscal years 1995 through 
     1998.
     Extension of authority for appointment of certain scientific, 
         engineering, and technical personnel (sec. 3152)
       The Senate amendment contained a provision (sec. 3144) that 
     would extend for one year the authority granted to the 
     Secretary of Energy by the National Defense Authorization Act 
     for Fiscal Year 1995 (Public Law 103-337) to appoint certain 
     scientific, engineering, and technical personnel in areas of 
     nuclear safety and environmental clean up.
       The House bill contained no similar provision.
       The House recedes.
     Requirement for plan to modify employment system used by 
         Department of Energy in defense environmental management 
         programs (sec. 3153)
       The House bill contained a provision (sec. 3152) that would 
     prohibit the use of more than 75 percent of Defense 
     Environmental Restoration and Waste Management program 
     direction funds for fiscal year 1999 until the Secretary of 
     Energy submits a plan for improvement of the Department of 
     Energy federal employment system. The plan would address 
     strategies to recruit and hire individuals for the 
     Environmental Management program who are highly skilled and 
     who have experience as project and construction managers. The 
     plan would further identify any provisions of Federal law 
     that must be altered to allow its implementation.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary to submit

[[Page H8456]]

     the plan to Congress not later than February 1, 1999, and 
     would remove the prohibition on use of program direction 
     funds.
     Department of Energy nuclear materials couriers (sec. 3154)
       The Senate amendment contained several provisions (secs. 
     3161-3172) that would allow nuclear materials couriers at the 
     Department of Energy (DOE) to retire with full federal 
     benefits after 20 years of service.
       The House bill contained no similar provision.
       The House recedes with an amendment that would apply 
     eligibility for early retirement benefits only to those 
     couriers who retire after fiscal year 1998.
     Increase in maximum rate of pay for scientific, engineering, 
         and technical personnel responsible for safety at defense 
         nuclear facilities (sec. 3155)
       The Senate amendment contained a provision (sec. 3142) that 
     would raise the pay level for the excepted service authority 
     provided in the National Defense Authorization Act for Fiscal 
     Year 1995 (Public Law 103-337) from Level IV to III of the 
     Executive Schedule.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
       The conferees expect this enhanced authority to assist the 
     Department of Energy in attracting and retaining senior 
     scientific, engineering, and technical personnel who possess 
     the skills to perform critical nuclear health and safety 
     activities at the Department's defense nuclear facilities. 
     The conferees note that, in recent years, the Level IV pay 
     cap has limited the Department's ability to attract and 
     retain the highest qualified scientific and technical talent.
     Extension of authority of Department of Energy to pay 
         voluntary separation incentive payments (sec. 3156)
       The Senate amendment contained a provision (sec. 3145) that 
     would extend for one year authority granted to the Secretary 
     of Energy by the Treasury, Postal Service, and General 
     Government Appropriations Act, 1997 (Public Law 104-208) to 
     pay voluntary separation incentive payments to certain 
     Federal employees.
       The House bill contained no similar provision.
       The House recedes.
       The conferees expect this authority to be used to continue 
     reductions in federal staffing levels in an effort to 
     decrease costs and increase program efficiencies. The 
     conferees do not intend this authority to be used for broad, 
     untargeted staff reductions. The conferees expect the 
     Secretary of Energy to utilize this authority, in conjunction 
     with other authorities, to eliminate selectively those job 
     classifications and positions that are no longer needed to 
     carry out the missions of the Department of Energy. The 
     conferees expect the authority to allow the Department to 
     save money over the long term and reorient the DOE federal 
     workforce to focus on the Department's most pressing 
     problems.
     Repeal of fiscal year 1998 statement of policy on stockpile 
         stewardship program (sec. 3157)
       The Senate amendment contained a provision (sec. 3141) that 
     would repeal section 3156 of the National Defense 
     Authorization Act for Fiscal Year 1998 (Public Law 105-85).
       The House bill contained no similar provision.
       The House recedes.
       Section 3156 of the National Defense Authorization Act for 
     Fiscal Year 1998 addressed findings and current policies 
     regarding the stockpile stewardship program of the Department 
     of Energy. This repeal action does not represent a change in 
     policy and is taken without prejudice. The conferees note 
     that the findings and policy statements expressed in section 
     3156 are consistent with the activities of the stockpile 
     stewardship program focused on ensuring that the United 
     States possesses a safe, secure, effective, and reliable 
     nuclear stockpile consistent with our national security 
     requirements and treaty commitments. The conferees do not 
     believe that such policy statements need to be set forth in 
     law.
     Report on stockpile stewardship criteria (sec. 3158)
       The House bill contained a provision (sec. 3153) that would 
     require the Secretary of Energy to submit a report to the 
     Committee on Armed Services of Senate and the National 
     Security Committee of the House of Representatives by March 
     1, 1999, on DOE efforts to develop a clear set of criteria 
     pertaining to the technical performance of science based 
     stockpile stewardship program tools and their relationship to 
     key nuclear weapons technologies. The provision would require 
     the Secretary to identify the performance criteria that, if 
     met, would offer sufficient certainty that the U.S. stockpile 
     is safe and reliable.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     report to be submitted not later than March 1, 2000, and be 
     coordinated with the Secretary of Defense.
     Panel to assess the reliability, safety, and security of the 
         United States nuclear stockpile (sec. 3159)
       The Senate amendment contained a provision (sec. 1073) that 
     would establish a six member commission to assess the 
     reliability, safety, and security of the U.S. nuclear 
     deterrent. The commission would review the safety, security, 
     and reliability of the U.S. nuclear deterrent and the annual 
     nuclear warhead certification process carried out by the 
     Department of Energy weapons laboratory directors, the 
     Commander in Chief of the United States Strategic Command, 
     and the Secretary of Defense. Commission members would be 
     appointed as follows: two members each by the Majority Leader 
     of the Senate and Speaker of the House of Representatives and 
     one member each by the Minority Leaders of the Senate and 
     House of Representatives. The chairman of the commission 
     would be designated by the Majority Leader of the Senate. The 
     cost of the commission would be borne equally by the 
     Departments of Energy and Defense. The commission would 
     terminate three years after the date of the appointment of 
     the chairman.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense, in consultation with the Secretary of 
     Energy, to contract with a Federally Funded Research and 
     Development Center (FFRDC) to establish a panel to assess the 
     reliability, safety, and security of the U.S. nuclear 
     stockpile. The panel would examine the annual nuclear warhead 
     certification documents, the processes and assumptions upon 
     which the certification is based, and the stockpile 
     stewardship and management criteria to be established by the 
     Secretary of Energy pursuant to section 3158 of this Act.
       The conferees believe that in order to ensure an 
     independent assessment, no employees of the FFRDC should be 
     appointed as panel members.
     International cooperative information exchange (sec. 3160)
       The House bill contained a provision (sec. 3156) that would 
     express the sense of Congress that the President should 
     instruct the Secretary of Energy to consult with the 
     Secretary of Defense, the Administrator of the Environmental 
     Protection Agency, and other appropriate officials, and 
     submit to the Committee on Armed Services of the Senate 
     and the Committee on National Security of the House of 
     Representatives an assessment of whether the United States 
     should consider favorably the ``Advanced Technology 
     Research Project'' proposal which recommends establishment 
     of an international project to facilitate the exchange of 
     information on advanced nuclear waste technologies. The 
     assessment should include a discussion of whether the 
     proposal could be funded privately and administered by an 
     international nongovernmental organization. The Secretary 
     would also be required to identify any legislation 
     required to carry out any such a project.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would express the 
     sense of the Congress that the Secretary of Energy, in 
     consultation with the Secretary of Defense, the Administrator 
     of the Environmental Protection Agency, and the Director of 
     the Agency for International Development, should prepare a 
     report on those programs that currently facilitate sharing of 
     information on international nuclear waste problems, and any 
     recommendations to expand or consolidate such activities 
     under a single international cooperative program.
     Protection against inadvertent release of restricted data and 
         formerly restricted data (sec. 3161)
       The Senate amendment contained a provision (sec. 3146) that 
     would amend section 3155 of the National Defense 
     Authorization Act for Fiscal Year 1996 (Public Law 104-106) 
     by requiring all federal agencies, including the National 
     Archives and Records Administration, to conduct a visual 
     inspection of all records over 25 years old to ascertain that 
     such records contain no information classified as restricted 
     data or formerly restricted data. The provision would require 
     that any records found to contain such classified information 
     be set aside pending completion of a review by the Department 
     of Energy.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Energy and the Archivist of the United States, 
     after consultation with members of the National Security 
     Council, and, in consultation with the Secretary of Defense 
     and the heads of appropriate federal agencies, to develop a 
     plan to prevent records containing restricted data or 
     formerly restricted data from being inadvertently released 
     under Executive Order 12958. The plan would include the 
     following elements: (1) actions that will be taken to ensure 
     that only records series that are highly unlikely to contain 
     restricted data or formerly restricted data are released 
     without a page-by-page review; (2) the criteria by which 
     documents will be determined to be highly unlikely to contain 
     restricted data or formerly restricted data; (3) steps to be 
     taken to ensure proper training, evaluation, and supervision 
     of declassification personnel to recognize restricted data 
     and formerly restricted data; (4) the extent to which 
     automated declassification technologies will be used to 
     protect restricted data and formerly restricted data; (5) 
     procedures for periodic Department of Energy review and 
     evaluation of agency compliance with the plan; (6) procedures 
     for resolving disagreements among agencies regarding 
     declassification procedures and decisions; (7) identification 
     of funding, personnel, and other resources required to carry 
     out the plan; and (8) a timetable to implement the plan. 
     Summaries of

[[Page H8457]]

     the periodic review of agency compliance would be provided to 
     the President's National Security Advisor and to the 
     Committee on Armed Services of the Senate and the National 
     Security Committee of the House or Representatives. The 
     amendment would halt the use of bulk declassification of any 
     document covered by this provision until 60 days after the 
     plan is submitted to the Committee on Armed Services of the 
     Senate and the National Security Committee of the House of 
     Representatives, and the Assistant to the President for 
     National Security Affairs.
       The conferees support current efforts to reduce the volume 
     of information retained as classified. The conferees are, 
     however, concerned that Executive Order 12958 does not ensure 
     adequate protection of information classified as restricted 
     data or formerly restricted data. This provision is intended 
     to ensure greater review and scrutiny of those federal 
     records that may contain information classified as restricted 
     data or formerly restricted data prior to the bulk 
     declassification and subsequent release of such records. The 
     conferees do not intend this provision to slow down much 
     needed efforts to reduce the amount of classified material 
     maintained in federal archives.
       The conferees believe that the President must ensure that 
     each Executive Branch agency with custodial responsibility 
     for the records described in the provision has available 
     sufficient funds to carry out the requirements of this 
     provision.
     Sense of Congress regarding treatment of Formerly Utilized 
         Sites Remedial Action Program under a non-defense 
         discretionary budget function (sec. 3162)
       The Senate amendment contained a provision (sec. 3143) that 
     would express the sense of the Senate that the Office of 
     Management and Budget should transfer funding for the 
     Formerly Utilized Sites Remedial Action Program into a non-
     defense discretionary portion of the Federal budget in future 
     years.
       The House bill contained no similar provision.
       The House recedes with an amendment that would modify the 
     provision to be a sense of Congress.
     Reports relating to tritium production (sec. 3163)
       The House bill contained a provision (sec. 3134) that would 
     delay the date by which the Secretary of Energy must select a 
     primary technology for the production of tritium from 
     December 31, 1998 to December 31, 1999. The Secretary would 
     be prohibited from selecting a primary technology until the 
     date that is the later of 30 days following completion of the 
     test at the Watts Bar nuclear plant and the date that the 
     Secretary submits to the congressional defense committees a 
     report on the results of that test. The report would 
     provide information regarding the amount of tritium 
     produced, data on the leakage of tritium from the test, 
     and any other technical findings resulting from the test.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Energy to submit a report on the results of the 
     test currently being carried out at the Watts Bar nuclear 
     plant. The report would include data on the performance of 
     the tritium test rods, the performance of the reactor, any 
     leakage of tritium from the test rods, the amount of tritium 
     produced, and any other technical findings resulting from the 
     test. The Secretary would be required to submit to the 
     congressional defense committees a preliminary report on the 
     test program not later than 60 days after the test rods are 
     removed from the Watts Bar reactor.
       The amendment would also direct the Secretary of Defense, 
     in consultation with the Secretary of Energy, to establish a 
     task force of the Defense Science Board to examine the risks 
     associated with each tritium production technology, the 
     nuclear weapons proliferation implications of each 
     technology, the ability of each technology to meet the 
     national security requirements of the United States, and any 
     other factors that the Secretaries of Defense and Energy 
     consider appropriate. The Secretaries of Energy and Defense 
     would be required to provide the task force report to the 
     congressional defense committees not later than June 30, 
     1999.

                   Legislative Provisions Not Adopted

     Prohibition on Federal loan guarantees for defense 
         environmental management privatization projects
       The House bill contained a provision (sec. 3131) that would 
     prohibit the use of Federal government loan guarantees for 
     Department of Energy defense environmental management 
     privatization projects.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees remain deeply concerned that the use of 
     Federal loan guarantees are inconsistent with the concept of 
     privatization in Department of Energy (DOE) environmental 
     remediation projects. The conferees note that the Federal 
     Credit Reform Act of 1990 requires that a large portion of 
     the costs of Federal loan guarantees be appropriated in the 
     fiscal year in which the project is initiated. This 
     requirement would draw into question the cost effectiveness 
     and desirability of any DOE privatization project that would 
     rely upon such instruments.
       The conferees note, however, that a recent General 
     Accounting Office report on the DOE privatization program 
     recommended a wide variety of contracting and project 
     financing tools be made available to DOE to carry out 
     privatized cleanup projects. Nevertheless, the conferees 
     cannot envision many instances where Federal loan guarantees 
     would prove beneficial to the Federal government.
       The conferees intend to scrutinize any proposed use of 
     Federal loan guarantees in DOE privatization projects to 
     ensure that the concept of privatization is not violated. The 
     conferees do not intend to authorize funding in future years 
     for those projects that include a Federal loan guarantee, if 
     utilizing a loan guarantee either removes the consequences of 
     failure for the contractor or increases the cost of the 
     privatization project.
       The conferees direct that any use of Federal loan 
     guarantees for privatization projects be made only in those 
     circumstances where the Secretary of Energy certifies that 
     (1) the loan guarantee is necessary for the contractor to 
     obtain a private sector loan, and (2) the percentage of the 
     loan amount covered by the loan guarantee does not harm the 
     incentive for success.
     Sense of the Senate regarding memoranda of understanding with 
         the State of Oregon relating to Hanford
       The Senate amendment contained a provision (sec. 3147) that 
     would set forth the sense of the Senate that the Department 
     of Energy (DOE) and the State of Washington should seek to 
     implement existing memoranda of understanding regarding 
     cleanup activities at the Hanford Site in ways that permit 
     continued information sharing and participation by the State 
     of Oregon in those decisions at the Site that affect the 
     public health or safety of the citizens of Oregon.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees encourage the State of Washington and the 
     Department of Energy to continue those cooperative efforts 
     with the State of Oregon that speed the pace of cleanup at 
     the site and ensure appropriate participation by all external 
     stakeholders, including the State of Oregon. The conferees 
     note that the State of Oregon has executed memoranda of 
     understanding with the State of Washington and with the 
     Department of Energy. The conferees further note that the 
     State of Oregon holds two seats on the Hanford Site Specific 
     Advisory Board (SSAB), a group of regulators, stakeholders, 
     and tribes that reviews clean up progress at the site and 
     makes recommendations to DOE. The conferees believe that 
     Oregon's participation in the Hanford SSAB and the increased 
     access to information provided via memoranda of understanding 
     with DOE and the State of Washington, provide Oregon with 
     appropriate participation in Hanford cleanup programs.
     Sense of Congress on funding requirements for the 
         nonproliferation science and technology activities of the 
         Department of Energy
       The Senate amendment contained a provision (sec. 3149) that 
     would express the sense of Congress that the budget for 
     nonproliferation science and technology activities for fiscal 
     years 2000 through fiscal year 2008 should be increased each 
     year over the preceding year by at least one percent above 
     the rate of inflation.
       The House bill contained no similar provision.
       The Senate recedes.

          Title XXXII--Defense Nuclear Facilities Safety Board

                     Legislative Provisions Adopted

     Defense Nuclear Facilities Safety Board (sec. 3201)
       The House bill contained a provision (sec. 3201) that would 
     authorize $17.5 million for the Defense Nuclear Facilities 
     Safety Board (DNFSB) for fiscal year 1999.
       The Senate amendment contained an identical provision (sec. 
     3201).
       The conference agreement includes this provision.
       The conferees anticipate that the report required by 
     section 3202 of the National Defense Authorization Act for 
     Fiscal Year 1998 (Public Law 105-85) regarding which 
     Department of Energy (DOE) facilities should remain under the 
     jurisdiction of the DNFSB will be submitted on time.
       The conferees are concerned that the implementation of an 
     additional external regulation approach could draw scarce 
     resources away from high priority, compliance driven cleanup 
     actions and critical national security activities. The 
     conferees believe no decisions should be made or actions 
     taken until the findings of the DNFSB and the comments of the 
     Secretary of Energy and the Chairman of the Nuclear 
     Regulatory Commission have been provided to the Congress as 
     required by section 3202 of the National Defense 
     Authorization Act for Fiscal Year 1998 (Public Law 105-85) 
     and the on-going external regulation pilot programs are 
     completed and evaluated.

                Title XXXIII--National Defense Stockpile

                     Legislative Provisions Adopted

     Definitions (sec. 3301)
       The House bill contained a provision (sec. 3301) that would 
     define the National Defense Stockpile and the National 
     Defense Stockpile Transaction Fund.
       The Senate amendment contained an identical provision.
       The conference agreement includes this provision.
     Authorized uses of stockpile funds (sec. 3302)
       The House bill contained a provision (sec. 3302) that would 
     authorize the obligation of

[[Page H8458]]

     $82.6 million for the operation of the National Defense 
     Stockpile.
       The Senate amendment contained a similar provision.
       The Senate recedes.
     Authority to dispose of certain materials in the national 
         defense stockpile (sec. 3303)
       The Senate amendment contained a provision (sec. 3303) that 
     would authorize the disposal of certain materials from the 
     National Defense Stockpile and require that sufficient 
     materials are sold to generate receipts to the United States 
     in the amount of $103.0 million by the end of fiscal year 
     1999 and $377.0 million by the end of fiscal year 2003.
       The House bill had no similar provision.
       The House recedes with an amendment that would modify the 
     quantity of materials authorized for disposal in order to 
     generate receipts of $105.0 million by the end of fiscal year 
     1999 and $590.0 million by the end of fiscal year 2005.
       The conferees expect that any sales of tungsten ores and 
     concentrates contained in the National Defense Stockpile 
     shall be made at a price that is not less than the market 
     value at the time of the proposed sale (taking into account 
     any specific location and as-is sale adjustments), and that 
     the Department of Defense will fully consider the views of 
     the Market Impact Committee concerning any projected domestic 
     economic effect by the sale of these materials. The conferees 
     also expect that the Market Impact Committee, in developing 
     recommendations for the sale of tungsten ores and 
     concentrates, will consult with representatives of producers, 
     processors, and consumers of these materials.
     Use of stockpile funds for certain environmental remediation, 
         restoration, waste management, and compliance activities 
         (sec. 3304)
       The Senate amendment contained a provision (sec. 3304) that 
     would authorize the use of funds from the National Defense 
     Stockpile Transaction Fund to be used for environmental 
     remediation, restoration, waste management, or compliance 
     activities that are required under a federal law or are 
     undertaken by the Federal Government under an administrative 
     decision or negotiated agreement.
       The House bill contained no similar provision.
       The House recedes.

                 Title XXXIV--Naval Petroleum Reserves

                     Legislative Provisions Adopted

     Definitions (sec. 3401)
       The House bill contained a provision (sec. 3401) that would 
     provide definitions for naval petroleum reserves, Naval 
     Petroleum Reserve Number 2, Naval Petroleum Reserve Number 3, 
     Oil Shale Reserve Number 2, antitrust laws, general land 
     laws, and petroleum.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would include 
     definitions for each of these terms, except general land 
     laws.
     Authorization of appropriations (sec. 3402)
       The House bill contained a provision (sec. 3402) that would 
     authorize $22.5 million for the operations of the naval 
     petroleum and oil shale reserves.
       The Senate amendment contained a similar provision.
       The Senate recedes.
     Disposal of Naval Petroleum Reserve Numbered 2 (sec. 3403)
       The House bill contained a provision (sec. 3404) that would 
     require the Secretary of Energy to dispose of that portion of 
     the Naval Petroleum Reserve Numbered 2 located within the 
     town lots in Ford City, California, by competitive sale or 
     lease consistent with commercial practices, by transfer to 
     another Federal agency or a public or private entity, or by 
     any other means. The provision would further require the 
     Secretary of Energy to transfer to the Secretary of Interior, 
     administrative jurisdiction and control over the remaining 
     lands within Naval Petroleum Reserve Numbered 2 after the 
     Secretary of Energy makes a determination to abandon oil and 
     gas operations.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would permit, 
     rather than require, the disposal of this property.
     Disposal of Naval Petroleum Reserve Numbered 3 (sec. 3404)
       The House bill contained a provision (sec. 3405) that would 
     authorize the disposal of Naval Petroleum Reserve Numbered 3 
     by sale, lease, transfer, or other means.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would authorize 
     the disposal of this property by sale, lease, or transfer to 
     another federal agency.
     Disposal of Oil Shale Reserve Numbered 2 (sec. 3405)
       The House bill contained a provision (sec. 3406) that would 
     require the Secretary of Energy to transfer to the Secretary 
     of Interior administrative jurisdiction and control over all 
     public lands included in Oil Shale Reserve Numbered 2 by 
     September 30, 1999.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would authorize, 
     rather than require, the transfer of this property.
     Administration (sec. 3406)
       The House bill contained a provision (sec. 3407) that would 
     establish administrative requirements for the disposal of 
     property within the Naval Petroleum and Oil Shale Reserves, 
     as would otherwise be authorized in H.R. 3616.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.

                   Legislative Provisions Not Adopted

     Price requirement on price of certain petroleum during fiscal 
         year 1999
       The House bill contained a provision (sec. 3403) that would 
     require that the sale of any of the U.S. share of petroleum 
     produced from Naval Petroleum Reserve Numbered 2, or Naval 
     Petroleum Reserve Numbered 3, shall be made at a price not 
     less than 90 percent of the current sales price of comparable 
     petroleum.
       The Senate amendment contained no similar provision.
       The House recedes.
     Treatment of State of California claim regarding Naval 
         Petroleum Reserve numbered 1
       The House bill contained a provision (sec. 3408) that would 
     eliminate the requirement for an appropriation before funds 
     resulting from the sale of the Naval Petroleum Reserve 
     Numbered 1 at Elk Hills can be distributed to the State of 
     California in accordance with the Settlement Agreement 
     entered into between the State of California and the 
     Department of Energy.
       The Senate amendment had no similar provision.
       The House recedes.

                  Title XXXV--Panama Canal Commission

                     Legislative Provisions Adopted

     Short title; references to Panama Canal Act of 1979 (sec. 
         3501)
       The House bill contained a provision (sec. 3501) that would 
     provide a short title to the amendments to the Panama Canal 
     Act of 1979 (22 U.S.C. 3601 et seq.) contained in this Act, 
     and state that, unless otherwise noted, such amendments 
     relate to the Panama Canal Act.
       The Senate amendment contained an identical provision (sec. 
     3501).
       The conference agreement includes this provision.
     Authorization of expenditures (sec. 3502)
       The House bill contained a provision (sec. 3502) that would 
     authorize the Panama Canal Commission to make expenditures 
     from its revolving fund, subject to certain ceilings, for 
     fiscal year 1999.
       The Senate amendment contained an identical provision (sec. 
     3502).
       The conference agreement includes this provision, and an 
     increase of $10,000 in the ceiling for the representation and 
     reception expenses of the Administrator of the Panama Canal 
     Commission.
     Purchase of vehicles (sec. 3503)
       The House bill contained a provision (sec. 3503) that 
     would authorize the Panama Canal Commission to purchase 
     vehicles built in the United States.
       The Senate amendment contained a similar provision (sec. 
     3503) that excluded the requirement for the vehicles to be 
     built in the United States.
       The House recedes.
       The conferees note that the Commission has previously 
     purchased only vehicles built in the United States and 
     encourage the continuation of that practice.
     Expenditures only in accordance with treaties (sec. 3504)
       The House bill contained a provision (sec. 3504) that would 
     ensure amounts authorized for expenditure by the Panama Canal 
     Commission for fiscal year 1999 be spent only in accordance 
     with the terms of the Panama Canal Treaties of 1977 and U.S. 
     laws implementing those treaties.
       The Senate amendment contained an identical provision (sec. 
     3504).
       The conference agreement includes this provision.
     Donations to the Commission (sec. 3505)
       The House bill contained a provision (sec. 3505) that would 
     authorize the Panama Canal Commission to seek and to accept 
     donations from private and public entities for the purpose of 
     funding its promotional activities subject to guidelines to 
     be established by the Commission.
       The Senate amendment contained an identical provision (sec. 
     3505).
       The conference agreement includes this provision.
     Agreements for United States to provide post-transfer 
         administrative services for certain employee benefits 
         (sec. 3506)
       The Senate amendment contained a provision (sec. 3506) that 
     would allow the Secretary of State to enter into agreements 
     to provide administrative services for certain Panama Canal-
     related employee benefits after December 31, 1999.
       The House bill contained no similar provision.
       The House recedes.
     Sunset of United States overseas benefits just before 
         transfer (sec. 3507)
       The House bill contained a provision (sec. 3506) that would 
     sunset certain benefits to certain U.S. citizens employed by 
     the Panama Canal Commission to clarify the conditions of 
     employment intended to be continued by the Government of 
     Panama after the transfer of the Canal on December 31, 1999.
       The Senate amendment contained an identical provision (sec. 
     3507).
       The conference agreement includes this provision.

[[Page H8459]]

     Central Examining Office (sec. 3508)
       The House bill contained a provision (sec. 3507) that would 
     repeal an obsolete provision of law relating to the Central 
     Examining Office.
       The Senate amendment contained an identical provision (sec. 
     3508).
       The conference agreement includes this provision with a 
     technical amendment.
     Liability for vessel accidents (sec. 3509)
       The House bill contained a provision (sec. 3508) that would 
     provide the Panama Canal Commission with a degree of immunity 
     against claims for damages occurring while vessels transiting 
     the Canal are under the direction of pilots employed by the 
     Commission. The provision is intended to lower the costs of 
     Canal operations by instituting a liability regime that would 
     prevent claims against the Commission for $1.0 million or 
     less in damages.
       The Senate amendment contained an identical provision (sec. 
     3509).
       The conference agreement includes a provision that would 
     allow the Panama Canal Commission to prescribe regulations 
     that limit its exposure to liability to those damages that 
     exceed a specified threshold amount, provided that such 
     threshold amount does not exceed $1.0 million, by requiring 
     claimants to look to their insurers for compensation for 
     damages below the threshold amount.
       The conferees believe that a regulatory approach will allow 
     greater flexibility for the Commission to implement any 
     changes through procedures and on a timetable that will allow 
     for consideration of maritime industry concerns. The adopted 
     provision would also allow the Commission to set the 
     insurance requirement, and thereby its immunity against 
     claims, at a lower threshold if a level less than $1.0 
     million is determined, through consultation with interested 
     parties, to be in the best interests of the Panama Canal and 
     world shipping.
       In light of expectations that the Panama Canal Authority, 
     the successor agency to the Commission, will implement such a 
     liability- limiting regime after it assumes stewardship of 
     Canal operations, this provision is pursuant to the U.S. 
     treaty commitment to facilitate transition to Panamanian 
     control. The conferees expect that if damages during Canal 
     transits increase significantly under any new liability 
     regime, that the Commission, or its successor Panamanian 
     entity, will consider a revised liability regime that 
     minimizes costs for world commerce as well as for Canal 
     operations.
     Panama Canal Board of Contract Appeals (sec. 3510)
       The House bill contained a provision (sec. 3509) that would 
     authorize the Panama Canal Commission to establish the 
     salaries of members of the Panama Canal Board of Contract 
     Appeals.
       The Senate amendment contained a similar provision (sec. 
     3511).
       The House recedes.
     Restatement of requirement that Secretary of Defense designee 
         on Panama Canal Commission supervisory board be a current 
         officer of the Department of Defense (sec. 3511)
       The Senate amendment contained a provision (sec. 3513) that 
     would ensure the Secretary of Defense's designee on the 
     Panama Canal Commission Supervisory Board be an officer of 
     the Department of Defense (DOD), rather than an individual 
     who was a DOD officer at the time of his designation and 
     subsequently left his position in the Department.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Technical amendments (sec. 3512)
       The House bill contained a provision (sec. 3510) that would 
     make certain technical and conforming amendments to the 
     Panama Canal Act of 1979 (22 U.S.C. 3601 et seq.).
       The Senate amendment contained a similar provision (sec. 
     3512).
       The House recedes.

                   Legislative Provisions Not Adopted

     Placement of United States citizens in positions with the 
         United States Government
       The Senate amendment contained a provision (sec. 3510) that 
     would provide placement priority for involuntarily separated 
     employees of the Panama Canal Commission who are U.S. 
     citizens and were hired after the Panama Canal Treaty of 1977 
     that is on par with priority for other federal employees who 
     are involuntarily separated.
       The House bill contained no similar provision.
       The Senate recedes.

                  TITLE XXXVI--MARITIME ADMINISTRATION

                     Legislative Provisions Adopted

     Authorization of appropriations for fiscal year 1999 (sec. 
         3601)
       The House bill contained a provision (sec. 3601) that would 
     authorize $90.6 million for fiscal year 1999, as included in 
     the budget request, for the United States Maritime 
     Administration.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Authority to convey National Defense Reserve Fleet vessel 
         (sec. 3602)
       The House bill contained a provision (sec. 3602) that would 
     authorize the Secretary of Transportation to convey a 
     National Defense Reserve Fleet surplus vessel, M/V Bayamon, 
     to the Trade Fair Ship Company.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require 
     that the Secretary dispose of the vessel using competitive 
     procedures.
     Authority to convey certain National Defense Reserve Fleet 
         vessels (sec. 3603)
       The House bill contained a provision (sec. 3603) that would 
     authorize the Secretary of Transportation to sell, at fair 
     market value, two surplus TAO class vessels that were 
     partially built and then transferred to the National Defense 
     Reserve Fleet.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require 
     that the Secretary dispose of the vessels using competitive 
     procedures.
     Clearinghouse for maritime information (sec. 3604)
       The House bill contained a provision (sec. 3604) that would 
     authorize the establishment of a clearinghouse for maritime 
     information by providing an online trade information database 
     at a state maritime academy. The provision would require the 
     $75,000 funding needed for this effort be derived from funds 
     authorized for operations of the Maritime Administration.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would make the 
     provision of funds for a clearinghouse for maritime 
     information discretionary.
     Conveyance of NDRF vessel ex-USS Lorain County (sec. 3605)
       The House bill contained a provision (sec. 3605) that would 
     authorize the Secretary of Transportation to convey, at no 
     cost to the government, a surplus National Defense Reserve 
     Fleet ship, ex-USS Lorain County, to a not-for-profit 
     organization for use as a memorial to Ohio veterans.
       The Senate amendment contained a similar provision (sec. 
     1015).
       The Senate recedes.

 Title XXXVII--Increased Monitoring of Products Made With Forced Labor

                     Legislative Provisions Adopted

     Increased monitoring of products made with forced labor 
         (secs. 3701-3703)
       The Senate amendment contained provisions (secs. 3701-3704) 
     related to the monitoring of products derived from forced 
     labor.
       The House bill contained no similar provisions.
       The House recedes with an amendment that would eliminate a 
     provision containing findings, which emphasized products 
     derived from forced labor from the People's Republic of 
     China, strike direct references to indentured labor, 
     including child labor (secs. 3701-3703), and eliminate a 
     specific reference to mining products (sec. 3702).
       The conferees note that forced labor includes convict 
     labor, forced labor, and indentured labor, as such terms are 
     used in section 307 of the Tariff Act of 1930 (19 U.S.C. 1301 
     et seq.). Accordingly, the conferees understand that 
     indentured labor, to include child labor, is a category of 
     labor included in the definition of forced labor as 
     established in the Tariff Act of 1930, which thereby 
     prohibits the importation of products made through the use of 
     indentured or child labor. The conferees further recognize 
     the importance of strong and enforceable laws relating to 
     products derived from child labor, and emphasize that such 
     laws should be enforced to the maximum extent practicable by 
     the U.S. Customs Service.

             Title XXXVIII--Fair Trade in Automotive Parts

                     Legislative Provisions Adopted

     Fair trade in automotive parts (secs. 3801-3805)
       The Senate amendment contained provisions (sec. 3801-3805) 
     that would deal with trade in automotive parts. Section 3801 
     would provide that the title could be cited as the ``Fair 
     Trade in Automotive Parts Act of 1998.'' Section 3802 would 
     define certain terms. Section 3803 would direct the Secretary 
     of Commerce to re-establish an initiative to increase the 
     sale of U.S.-made auto parts to Japanese markets, and 
     prescribe the functions of the Secretary in this regard. 
     Section 3804 would direct the Secretary to establish a 
     special advisory committee from the automotive parts 
     industry. Section 3805 would provide that the authority under 
     the Act shall expire on December 31, 2003.
       The House bill contained no similar provision.
       The House recedes with technical amendments.

                      Title XXXIX--Radio Free Asia

                     Legislative Provisions Adopted

     Short title (sec. 3901)
       The Senate amendment contained a provision (sec. 3901) that 
     would provide that the provisions in this title related to 
     international broadcasting activities to China may be cited 
     as the Radio Free Asia Act of 1998.
       The House bill contained no similar provision.
       The House recedes.
     Authorization of appropriations for increased funding for 
         Radio Free Asia and Voice of America broadcasting to 
         China (sec. 3902)
       The Senate amendment contained a provision (sec. 3903) that 
     would authorize $30.0 million for fiscal year 1998 and $22.0 
     million

[[Page H8460]]

     for fiscal year 1999 for the purpose of funding Radio Free 
     Asia broadcasting to the People's Republic of China and 
     Tibet, $5.0 million for fiscal year 1998 and $3.0 million for 
     fiscal year 1999 for Voice of America broadcasting to China 
     and Tibet, and an additional $10.0 million for fiscal year 
     1998 and $2.0 million for fiscal year 1999 for radio 
     construction in support of such broadcasting. The provision 
     would reserve $100,000 of the funds authorized for Voice of 
     America broadcasting for broadcasts in the Hmong language.
       The House bill contained no similar provision.
       The House recedes with an amendment that would delete the 
     authorizations for fiscal year 1998, eliminate the 
     requirement that certain broadcasts be in the Hmong language, 
     and specify that the additional authorizations for fiscal 
     year 1999 are with respect to appropriations for the U.S. 
     Information Agency.
     Reporting requirement (sec. 3903)
       The Senate amendment contained a provision (sec. 3904) that 
     would require the Broadcasting Board of Governors to submit a 
     report on their efforts to increase Radio Free Asia and Voice 
     of America broadcasts to China and Tibet, as well as an 
     analysis of the control by the Government of the People's 
     Republic of China of the media in China, to the Committees on 
     Foreign Relations and Appropriations of the Senate and the 
     Committees on International Relations and Appropriations of 
     the House of Representatives.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.

                   Legislative Provisions Not Adopted

     Findings
       The Senate amendment contained a provision (sec. 3902) that 
     would make certain findings with respect to freedom of 
     information in the People's Republic of China.
       The House bill contained no similar provision.
       The Senate recedes.
     From the Committee on National Security, for consideration of 
     the House bill and the Senate amendment, and modifications 
     committed to conference:

     Floyd Spence,
     Bob Stump,
     Duncan Hunter,
     John R. Kasich,
     Herbert H. Bateman,
     James V. Hansen,
     Curt Weldon,
     Joel Hefley,
     Jim Saxton,
     Steve Buyer,
     Tillie K. Fowler,
     John M. McHugh,
     J.C. Watts, Jr.,
     William M. Thornberry,
     Saxby Chambliss,
     Walter B. Jones,
     Michael Pappas,
     Bob Riley,
     Ike Skelton,
     Norman Sisisky,
     John M. Spratt, Jr.,
     Solomon P. Ortiz,
     Owen Pickett,
     Lane Evans,
     Gene Taylor,
     Neil Abercrombie,
     Martin T. Meehan,
     Jane Harman,
     Paul McHale,
     Patrick J. Kennedy,
     Thomas H. Allen,
     Vic Snyder,
     James H. Maloney,
     As additional conferees from the Permanent Select Committee 
     on Intelligence, for consideration of matters within the 
     jurisdiction of that committee under clause 2 of rule XLVIII:
     Porter J. Goss,
     Jerry Lewis,
     Norm Dicks,
     As additional conferees from the Committee on Banking and 
     Financial Services, for consideration of section 1064 of the 
     Senate amendment:
     Jim Leach,
     Michael N. Castle,
     John J. LaFalce,
     As additional conferees from the Committee on Commerce for 
     consideration of sections 601, 3136, 3151, 3154, 3201, 3401, 
     3403, 3404, 3405, 3406, and 3407 of the House bill, and 
     sections 321, 601, 1062, 3133, 3140, 3142, 3144, 3201, and 
     title XXXVIII of the Senate amendment, and modifications 
     committed to conference:
     Thomas J. Bliley, Jr.,
     Dan Schaefer,
     John D. Dingell,
     Provided that Mr. Oxley is appointed in lieu of Mr. Dan 
     Schaefer for consideration of section 321 of the Senate 
     amendment.
     Michael G. Oxley,
     Provided that Mr. Bilirakis is appointed in lieu of Mr. Dan 
     Schaefer for consideration of section 601 of the House bill, 
     and section 601 of the Senate amendment.
     Mike Bilirakis,
     Provided that Mr. Tauzin is appointed in lieu of Mr. Dan 
     Schaefer for consideration of section 1062 and Title XXXVIII 
     of the Senate amendment.
     Billy Tauzin
     As additional conferees from the Committee on Education and 
     the Workforce, for consideration of sections 361, 364, 551, 
     and 3151 of the House bill, and sections 522, 643, and 1055 
     of the Senate amendment, and modifications committed to 
     conference:
     Tom Petri,
     Frank Riggs,
     Tim Roemer,
     As additional conferees from the Committee on Government 
     Reform and Oversight, for consideration of sections 368, 729, 
     1025, 1042, and 1101-1106 of the House bill, and sections 
     346, 623, 707, 805, 806, 813, 814, 815, 816, 1101-1105, 3142, 
     3144, 3145, 3162-3172 and 3510 of the Senate amendment, and 
     modifications committed to conference:
     Dan Burton,
     John L. Mica,
     Provided that Mr. Horn is appointed in lieu of Mr. Mica for 
     consideration of section 368 of the House bill and sections 
     346, 623, 707, 805, 806, 813, 814, 815, and 816 of the Senate 
     amendment.
     Stephen Horn,
     As additional conferees from the Committee on International 
     Relations, for consideration of sections 233, 1021, 1043, 
     1044, 1201, 1204, 1205, 1210, 1211, 1213, 1216, and Title 
     XIII of the House bill, and sections 326, 332, 1013, 1041, 
     1042, 1074, 1084, 3506, 3601, 3602, and 3901-3904 of the 
     Senate amendment, and modifications committed to conference:
     Benjamin A. Gilman,
     Doug Bereuter,
     Lee H. Hamilton,
     As additional conferees from the Committee on International 
     Relations, for consideration of sections 1207, 1208, 1209, 
     and 1212 of the House bill, and modifications committed to 
     conference:
     Benjamin A. Gilman,
     Doug Bereuter,
     Christopher H. Smith,
     Dan Burton,
     Dana Rohrabacher,
     Lee H. Hamilton,
     Tom Lantos,
     As additional conferees from the Committee on the Judiciary 
     for consideration of sections 1045 and 2812 of the House bill 
     and section 1077 of the Senate amendment, and modifications 
     committed to conference:

     Henry J. Hyde,
     Ed Bryant,
     As additional conferees from the Committee on Resources, for 
     consideration of sections 601, 2812, and 3404-3407 of the 
     House bill, and sections 601, 2828, and Title XXIX of the 
     Senate amendment and modifications committed to conference:
     Don Young,
     Billy Tauzin,
     As additional conferees from the Committee on Science, for 
     consideration of sections 3135 and 3140 of the Senate 
     amendment, and modifications committed to conference:
     F. James Sensenbrenner, Jr.,
     Ken Calvert,
     George E. Brown, Jr.,
     As additional conferees from the Committee on Transportation 
     and Infrastructure, for consideration of sections 552, 601, 
     1411, and 1413 of the House bill, and sections 323, 601, 604, 
     and 1080 of the Senate amendment, and modifications committed 
     to conference:
     Bud Shuster,
     Sherwood Boehlert,
     Bob Clement,
     As additional conferees from the Committee on Veterans' 
     Affairs for consideration of sections 556 and 1046 of the 
     House bill, and sections 618, 619, 644, and 1082 of the 
     Senate amendment, and modifications committed to conference:
     Christopher H. Smith,
     Mike Bilirakis,
     Ciro D. Rodriguez,
     As additional conferees from the Committee on Ways and Means, 
     for consideration of Titles XXXVII and XXXVIII of the Senate 
     amendment, and modifications committed to conference:
     Philip M. Crane,
     Bill Thomas,
     Robert T. Matsui,
                                Managers on the Part of the House.

     Strom Thurmond,
     John Warner,
     John McCain,
     Dan Coats,
     Bob Smith,
     Dirk Kempthorne,
     Jim Inhofe,
     Rick Santorum,
     Olympia J. Snowe,
     Pat Roberts,
     Carl Levin,
     Edward M. Kennedy,
     Jeff Bingaman,
     John Glenn,
     Robert C. Byrd,
     Chuck Robb,
     Joseph I. Lieberman,
     Max Cleland,
     Managers on the Part of the Senate.

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